Gillett Evernham Motorsports has filed suit against Robby Gordon, claiming the owner/driver of Robby Gordon Motorsports violated terms of a tentative agreement that would have sold his team to GEM for $23.5 million earlier this year.
The agreement, arrived at Jan. 29, was pending an audit and other due diligence from GEM, which could have adjusted the price.
If the deal had gone through, Gordon would have had a four-year driving contract with GEM that would have paid him at least $3 million annually plus 45 percent of race winnings. Gordon also could have had a spot on the team’s board of directors. GEM would have acquired Gordon’s shop and property in Charlotte.
As part of the agreement, GEM pledged to provide Gordon with all “racing infrastructure” and to support Gordon’s car “in substantially the same manner in which GEM supports its most supported car in the NASCAR Sprint Cup” for the 2008 season.
Three days after the agreement was signed, GEM and Gordon announced a technical, manufacturing and marketing partnership. At that time, GEM owner George Gillett, in an interview with “NASCAR Scene”, stated that he did not buy Gordon’s operation and was more likely to add a fourth car to his stable and hoped Gordon would add a second or third car to his.
According to the lawsuit, GEM was pursuing efforts to close the deal. The contract includes an exclusivity clause, which GEM claims would not allow Gordon to entertain talks with other teams about possible mergers. In May, Gordon asked out of the deal, according to the lawsuit, in exchange for an engine deal for the remainder of the season.
The exclusivity clause is the primary basis for the lawsuit, filed Aug. 25 in North Carolina Superior Court in Charlotte. GEM claims in court documents that Gordon has talked to other teams about merging. It also claims that Gordon made disparaging remarks that he wasn’t getting comparable engines to the other GEM drivers during a DirecTV telecast last month at Watkins Glen.
The lawsuit also claims that Gordon ignored the advice of GEM and terminated his previous deal with Ford prematurely, before GEM could get a sponsorship deal from Dodge for Gordon’s car. Dodge and GEM could not agree on a manufacturer’s deal for Gordon’s car.
GEM, which has supplied engines and other services for Gordon throughout the season, is asking for unspecified damages for Gordon’s breach of the agreement and for the agreement to be declared null and void, according to the complaint.
“We categorically reject the allegations that are contained in the complaint, and the truth will come out if the case proceeds,” Gordon said in a statement released through his team.
- Report: Robby Gordon sells Sprint Cup team-UPDATE
- Proposed GEM-Gordon merger may be in jeopardy
- Gordon teams with Gillett Evernham in 2008, will switch to Dodge
- GEM wants to merge with Petty
- GEM names Mark McArdle
I’m not surprised Robby got blamed for something again! Actually, I hope he isn’t the bad guy this time around. Who can forget his maiden voyage with GEM and the mislabeled nose piece? GEM told him NOT to leave Ford as early as he did? Was he supposed to switch brands AFTER the season started? He has never needed help getting stupid, but I hope things work out for him.
I think this case lies on a few key pieces of evidence, and they are. Can GEM prove via documentation that Robby was in talks with other teams about merging? I’m not talking documentation as in an article on this site or Jayski or ESPN, I’m talking documentation as in letter of intent or video/Audio proof of Robby talking with other team owners/reps about merging with them.
I can see them getting something out of the disparaging remarks thing, but the team merger thing and the thing about ignoring their advice (since when is ignoring Advice a sueable thing?) will be thrown out.
This almost sounds like an attempt to squash the last of the successful single car teams.
They are trying to kill off one of the last owner/driver deals and that’s a shame.
The funny thing about this is Ray does not want to sue him, it Rays new partner George.Thats what happens when you get people into the sport that know nothing about the sport. Just like Ginn Racing. There has never been a lawsuit in this sport until Ginn and now Gillett. We dont need these people coming into the sport and causing trouble.
Robby won’t go away quietly. When MMM tried getting him out of the #4 car, he showed up at the track with his lawyer and contract. MMM had to cough up $10,000,000 to buy Robby out. And Robby said the #4 car was in jeopardy long before he got there. That they had too many things they couldn’t fix. Robby is still around and MMM is shuttered.
Ok so for next year Robby will either be back in a Chevy or be in a Toyota.
Richard Childress still thinks really highly of Robby, so if he goes back to Chevy he should have full backing of the Earnhardt-Childress (whatever else the full name is) engine shop, but if he goes to Toyota he’ll be starting his 4th year in a row with a 4th different manufacture.
Howie Motorsports Photography wrote:
Ummm 1978, 6 years after the modern era started, Harry Hyde brought a lawsuit against JD Stacy.
FISHA, that was 30 years ago between a crew chief and car owner, get real were talking corporate lawsuits between teams suing other teams
The question is why GEM is fighting so hard here. In court they are going to have to prove any claims for damages, and it’s hard to see how they have suffered either financially or professionally. That’s going to be very hard to do, since there’s no likelihhod that Grdon’s team was going to contend for a championship, and Robby’s backing out on a deal has had no effect on the other GEM teams. GEM is acting like a jilted fiancee and in this context this seems pretty stupid.
The question is will GEM continue to supply Robby with engines and the other support they have have given. If they now stop doing so, it could be determined at trial that GEM is also in breach of their agreement with Gordon.
My guess? Cooler heads will prevail and they’ll work out a settlement long before this silly dispute hits a courtroom.
I agree Ron, Ray dont want another black eye after his little scandal with Erin and they are all friends and I dont think they have alot to go on.
Howie Motorsports Photography wrote:
No you were talking Lawsuits.
Also what team did Bobby Ginn sue? Last time I checked it was former employees suing that team, not that team suing another team.
Howie Motorsports Photography wrote:
Bobby Ginn did not need to be in racing either, he just used it for a write off for his failing real estate ventures. Im glad that ugly blimp is gone every week. George Gillett wont be involved with Ray long when they see they are not getting a great return on there investment.
According to an update, Robby still wants to sell his team to GEM and insists he hasn’t breached his contract at all.
Didn’t Evernham and the #7 team have a previous agreement like this a few years ago? Casey Atwood drove the #7 car, then something happened and all that
Casey originally drove the #19 at the then-Evernham Motorsports. Then he moved to the #7 at Ultra Motorsports in 2002, which was owned by Ray and Jim Smith. They switched from Ford to Dodge, and changed their name to Ultra-Evernham Motorsports, getting engines & equipment from EM. Then Casey was fired by Jim, which ended the partnership with Ray (because Ray didn’t want him fired, I guess)…and that was it. So yeah, I guess it’s like the agreement between GEM & Robby.
Fisha just destroyed howie.
Chelsea wrote:
Thank you for clearing that up Chelsea
TheTru7h wrote:
Duh, Howie was right in everything he said.
teresa88fan wrote:
I’m still waiting to hear what team Bobby Ginn sued.
maybe ginn sued howie