Former NASCAR Team Owner Ordered to Pay $31 Million After…read more
Ron Devine, the former owner of NASCAR’s BK Racing, has been ordered to pay $31 million following a decisive U.S. court ruling. The judgment marks the conclusion of a legal battle stemming from the team’s financial troubles, which culminated in bankruptcy proceedings in 2018.
BK Racing, a Cup Series team, filed for bankruptcy just before the 2018 Daytona 500, citing severe financial difficulties. Later that year, U.S. Bankruptcy Court Judge J. Craig Whitley approved the sale of the team’s charter and most of its assets to Front Row Motorsports (FRM) for $2.08 million. This acquisition expanded FRM into a three-car team. However, a legal dispute soon arose regarding the ownership of the charter.
The bankruptcy trustee managing BK Racing’s case argued that the charter belonged to the bankruptcy estate, not Devine, and that proceeds from the sale should be distributed to creditors. In 2022, a court agreed with the trustee and ordered Devine to pay $31 million. This amount was designated to settle outstanding debts owed to banks that had issued loans to the team, the IRS, former employees, and other creditors.
Devine appealed the decision, seeking to overturn the judgment. However, the U.S. Court of Appeals recently upheld the 2022 ruling, affirming the original decision. NASCAR insider Bob Pockrass shared details from the court’s statement, which criticized Devine’s actions during the proceedings. The ruling noted, “The bankruptcy court exhibited extraordinary patience in the face of Appellants’ egregious conduct. This Court will not condone such blatant disregard for the judicial process.”
The $31 million judgment represents a significant financial penalty for Devine, whose management of BK Racing faced scrutiny throughout the bankruptcy process. Allegations of mismanagement and financial impropriety were central to the trustee’s case against him.
This legal setback is not the only issue Devine has faced in recent years. In October 2023, he was indicted on federal charges related to payroll tax violations. The indictment included four counts of failing to pay payroll taxes, further complicating his legal and financial troubles.
BK Racing’s bankruptcy and subsequent legal battles highlight the challenges faced by smaller NASCAR teams in a highly competitive industry. Operating costs for teams can be substantial, and financial mismanagement can quickly lead to insolvency. For Devine, the court’s ruling serves as a cautionary tale about the consequences of failing to meet financial and legal obligations.
With the appeals process now complete, Devine must comply with the judgment and pay the $31 million. The funds will be used to address the debts owed to various parties, including creditors, employees, and the IRS. This outcome underscores the importance of accountability in business operations and adherence to the judicial process.
