NASCAR Cup Series

Evernham sues Gillett for millions owed

Published Feb. 24, 2011 2:30 p.m. ET

foxsports

Ray Evernham wants his money from George Gillett Jr., and he’s using the court system to get it.

Evernham has brought suit against Booth Creek Management and Gillett GEMS, LLC — companies controlled by Gillett — seeking over $19 million.

In the charges, which were filed in North Carolina Superior Court in Mecklenburg County, Evernham alleges he has not received the remaining 20 percent owed to him after Gillett purchased his race team.

“We have diligently worked to resolve this matter in good faith without resorting to legal action,” Evernham said in a statement. “This matter has been pending for a period of time and we did not want to disrupt any excitement of the beginning of the race season with this unfortunate situation.

“We were unable to come to a fair resolution for the amounts due to me related to my sale of the previous RPM race team.”

In August 2007, Gillett assumed majority ownership of what was then Evernham Motorsports for a reported $100 million, and the organization was rebranded Gillett Evernham Motorsports.

In 2009, Gillett found a new partner in seven-time Cup champion and long-time team owner Richard Petty. The groups merged and the company changed names once again, this time to Richard Petty Motorsports. With the Richard Petty name, Gillett believed he could successfully market the brand. However, the expansion occurred too quickly. With his other sports entities, the NHL's Montreal Canadiens and Liverpool Football Club, facing financial crises, the race teams became increasingly unstable.

Gillett sold his share of the NHL franchise in June 2009 and then ceased to be as active with the race program, which further solidified his reputation as an absentee owner. Despite winning two races and qualifying for the Chase, RPM’s marquee driver Kasey Kahne became increasingly vocal about his displeasure with management.

RPM switched manufacturers to Ford in 2010, merged with Yates Racing and inherited a technical alliance with Roush Fenway Racing. RPM picked up Yates Racing driver Paul Menard, and AJ Allmendinger moved into the No. 43.

Seven races into the 2010 season, Kahne announced he was leaving RPM for Hendrick for the 2012 season. The contracts of Elliott Sadler, Allmendinger and Menard, as well as their teams’ sponsors, were all up for renewal. While Sadler parted ways with the team for the 2011 Sprint Cup season, Allmendinger re-upped the first week in August. The next week, Richard Childress Racing tabbed Menard as its fourth driver and RPM announced that Marcos Ambrose would be added for 2011 as the organization trimmed to two teams.

But the uncertainty continued in October. After owning Liverpool F.C. for four years, Gillett watched a takeover bid for the organization transfer ownership to the John Henry-led New England Sports Ventures. The following week, he lost Kahne, who was pushed over the brink after his brakes failed at Charlotte Motor Speedway. Consequently, Kahne started with Red Bull Racing with five races remaining on the schedule.

By Oct. 30 at Martinsville Speedway, Richard Petty already was shopping the team. With four races to go, it was questionable whether all four cars would finish the season. RPM managed to take all of its teams to all the remaining races and future co-owner Andrew Murstein first appeared at the season finale “to kick the tires.”

After six months of contact exclusively through legal channels, Evernham finally received his noncompete release from Gillett, claiming, “Every contract I've had has been breached in every shape or form.'' Evernham also acknowledged that legal action to recover his remaining $20 million was not out of the question.

“We have everything ready to go,” Evernham said on Nov. 20. “The hardest thing is, a) before you file a lawsuit you have to make sure there’s something there to get and, b) until something happens — and again I’ve heard three or four different stories — we don’t know which way to go because I really don’t have an answer on what has happened (pertaining to RPM‘s status). Right now, we’re just being prepared for scenarios.”