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NASCAR Cup: BK Racing’s financial issues mount

Gray Gaulding (photo courtesy of Getty Images for NASCAR)

Gray Gaulding (photo courtesy of Getty Images for NASCAR)

By AMANDA VINCENT

Monster Energy NASCAR Cup Series team BK Racing has been on the receiving end of three IRS tax liens in less than a year, the most recent coming last week. The team also faces other financial issues.

The tax lien issued against the race team on Aug. 2 was for $180,794.97 for the tax period ending March 31. All three tax liens, including two issued in April for tax periods ending in 2016, total $667,631.62, according to a report from ESPN.

Recently, TheFinalLap.com reported that BK Racing has defaulted on a $2 million promissory note and posted a copy of the Notice of Default issued to BK Racing relating to BK Racing owner Ron Devine’s purchase of assets of the now-defunct Red Bull Racing Team several years ago. According to the notice, Devine agreed to pay former BK Racing minority owner Michael Wheeler nearly $2 million but has yet to make a a payment.

According to The Final Lap’s source, while the promissory note is for $2 million, Devine actually owes nearly $4.5 million, and if Devine doesn’t pay the $2 million bill soon, seizure of BK Racing assets may be forthcoming. But Devine told the website that its source of information was an enemy of his race team.

“It may be factually true, but it’s not accurate,” Devine said. “It comes from a bogus place, which is our enemies.”

Devine also responded to The Final Lap regarding the IRS liens.

“We’ve got our arms around it,” he said. “We are working with (the IRS) very well. They are working with us. Life will be just fine.”

Racing site, Kickin’ The Tires reported earlier this year that BK Racing was embroiled in a legal dispute with Race Engines Plus.

Also, several of the team’s former drivers have publicly expressed displeasure in being paid less by BK Racing than they are told by the race team they would be paid. Those drivers include Landon Cassill, Cole Whitt, Matt DiBenedetto, and most recently, Gray Gaulding.

Gaulding signed on to drive BK Racing’s 23 car full-time in 2017, following the season-opening Daytona 500. He raced for the team until June, driving the car for 13 races until the relationship between driver and team went sour.

“What happened at BK Racing just boils down to money,” Gaulding told Frontstretch.com. “When you kind of deal with an owner — and Ron is a nice guy — but when you’re a race car driver like myself, and you have to race without getting paid for week and week after week, I have bills to pay, myself. It’s my livelihood, too. That wasn’t the only reason. There was a lot of uncertainty. The team was just week-to-week, and it wasn’t the atmosphere I wanted to be in with my career.”

But, according to Devine, he had an agreement with Gray Gaulding Racing Enterprises for GGR to pay him approximately $2 million, set up on a payment plan, to put Gaulding in the car for the 2017 season, but GGR defaulted on its payments. As a result, Devine terminated BK Racing’s contract with Gaulding on June 5.

Devine says Gaulding owes him $1.36 million, including $560,000 in sponsorship money.

Also worth noting, according to The Final Lap report, the building at the BK Racing address is up for sale with an asking price of $2,600.

Follow Auto RacingDaily on Twitter @AutoRacingDaily or like Auto Racing Daily on Facebook (Facebook.com/autorcngdaily). Amanda’s also on Twitter @NASCARexaminer and has a fan/like page on Facebook (Facebook.com/nascarexaminer).

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Posted by on August 9, 2017. Filed under Breaking News,Featured,NASCAR. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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