Published on September 4th, 2008 | by Michael J Smith1
GEM Sues Gordon Over Tentative Purchase Of RGM
ESPN is reporting that Gillett Evernham Motorsports has filed a suit in North Carolina Superior Court Robby Gordon, claiming that Robby Gordon Motorsports violated the terms of a tentative agreement that would have sold his one-car Sprint Cup team to GEM for $23.5 million.
The deal was pending due dilligence and an audit, and would have given Gordon a four-year contract to driver for GEM worth $3 million per year, plus 45 percent of race winnings.
GEM would have supported RGM’s car, as if it were a fourth GEM car, providing RGM with “racing infrastructure.”
A contract between the two teams barred Gordon from pursuing merger deals with other teams. Earlier this year, Gordon asked to be let out of the deal, instead choosing to pursue an engine agreement with GEM.
According to court documents, GEM argues that Gordon talked to other teams about mergers, and made “disparaging comments” about the engines he was receiving from GEM. GEM also contents that Gordon ignored their advice, terminating his contract with Ford prematurely, before a sponsorship deal could be reached. The company is seeking unspecified damages.
For its part, Gordon rejected the claims made by the suit.
SceneDaily also covers the lawsuit.