Gillett Adds Stake in Nascar Team to Sports Portfolio
07/08/2007 |
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George Gillett, owner of the National Hockey League's Montreal Canadiens and co-owner of the Liverpool soccer club in the English Premier League, bought a stake in Nascar's Evernham Motorsports.
Financial terms of the purchase weren't disclosed in a press release from the two parties. The Charlotte Observer said Gillett will have a majority stake in the new team, which will be renamed Gillett Evernham Motorsports, with Evernham remaining as its chief executive officer.
``With the business acumen of the Gillett family and its sports brands, we've greatly expanded our reach,'' Evernham said. ``This will allow me to focus on our racing operations and team performance, while the Gillett family will focus on our business operations.''
The merger is Nascar's fourth of the season as teams attempt to cut costs and attract new sponsors. Actor Paul Newman formed a venture with Robert Yates Racing on July 27. Dale Earnhardt Inc. merged with Ginn Racing two days earlier, and in February, Roush Racing merged with Boston Red Sox owners Fenway Sports Group.
Evernham Motorsports fields the No. 9 Dodge of Kasey Kahne, the No. 10 Dodge of Scott Riggs and the No. 19 of Elliott Sadler in the top-tier Nextel Cup Series. The team ranked fourth in Forbes Magazine's annual survey this year of the most valuable Nascar teams at $128 million.
Marketing Opportunity
The two sides said the team will benefit from Gillett's interests in the Canadiens and Liverpool, as well as the luxury ski and golf resorts and auto dealerships that he owns throughout the U.S. and Canada. They said they will ``offer unique access to sponsors and partners and a powerful global connection that no other team can offer.''
Fenway Sports Group bought a 50 percent stake in Roush Racing earlier this year to diversify its baseball business.
Evernham gained notoriety as Jeff Gordon's crew chief in the 1990s, helping the four-time Nascar champion to three of his titles. Statesville, North Carolina-based Evernham Motorsports was formed in 2000 and led Dodge's re-entry into Nascar in 2001.
All three Evernham drivers are outside the top 12 in this year's standings and likely won't be eligible for the 10-race Chase for the Nextel Cup, which determines the season champion. It would mark the first time one of Evernham's drivers doesn't make the Chase.
Sadler is 23rd in points and Kahne is 27th. Five races remain before the Chase begins. Evernham has 13 Nextel Cup wins as a car owner and seven of those have come from Kahne in the No. 9 Dodge.
(Source: Bloomberg.com)
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