The Pettys near deal to sell out
Barry Baker, managing director of Boston Ventures, will become chairman of Petty Enterprises, while Richard Petty will be chairman emeritus and remain highly involved in the operation of the company.
David Zucker has been named as the company’s chief executive officer, replacing Kyle Petty. Zucker has been president and chief operating officer of Playboy Enterprises, worked as an ESPN executive and most recently was president and CEO of Midway Games Inc., a publisher and developer of video games.
“David is the perfect choice to be the new Petty Enterprises CEO," Richard Petty said. “He’s done great things, and he’s been very innovative at some prominent companies in this country. But, more importantly, he knows racing. He worked at ESPN for eight years and helped them get back into the sport. That part was important to us.
“Petty Enterprises builds race cars. That’s what we do. So we felt like we needed to bring someone in that can relate to the core of our business and expand what we currently do for our sponsors."
Zucker said, “As a devoted NASCAR fan, an opportunity to help build a name brand organization like Petty Enterprises comes along only once in a great while. I am pleased to be entrusted with this outstanding company with such a rich history and I look forward to working with everyone to lead us to greater prosperity."
Labonte, the 2000 Cup champion, will remain as the team’s signature driver. Executive Vice President Robbie Loomis will continue to run the racing operations.
06/11/08 Wednesday’s announcement will continue a trend that began last year when four Sprint Cup organizations sold off at least 50 percent ownership to investment groups:
• Fenway Sports Group reportedly paid $60 million for a 50-percent stake in Roush Racing.
• Billionaire investor Robert Kauffman reportedly paid close to $30 million to purchase half of Michael Waltrip Racing.
• Arizona Diamondback executives Jeff Moorad and Tom Garfinkel reportedly paid $20 to $30 million for controlling interest in Hall of Fame Racing.
• And George Gillett Jr. purchased controlling interest in Ray Evernham Motorsports for an estimated $30 to $40 million.
Using those purchases/investments as a gauge, it’s likely Boston Venture will pay upwards of $40 to $50 million to gain control of Petty Enterprises.
How will the acquisition affect Petty Enterprises’ future?
In effect, it will allow the Petty’s to forget about where their next dollar is coming from and focus exclusively on improving the overall racing operation – something that’s been long overdue.
And with Boston Venture’s financial wherewithal, greater resources will likely be invested into the company that should result in the ability to hire better personnel, purchase more state of the art equipment and eventually lead to the expansion of the organization to a three-car team – perhaps as early as 2010.
06/10/08 SPEED will interrupt regularly scheduled programming Wednesday at 11 a.m. ET to bring viewers live coverage of the Petty Enterprises press conference from the Lowe’s Motor Speedway media center. Hosted by Kyle Petty, the press conference will address the future of the organization, introducing a new CEO and offering a driver lineup and sponsor packages for 2009 and beyond.
06/09/08 This rumor is about to go to 'fact.' On Wednesday, Petty Enterprises will announce that Boston Ventures, a private equity firm, has acquired controlling interest in the 60-year-old racing operation which has produced 10 NASCAR champions but struggled to remain competitive the last two decades. Richard Petty will remain involved at a high level, but David Zucker, 45, will assume the role of CEO according to David Hovis, a spokesman for Petty Enterprises.
Hovis also said it will also be announced that veteran driver Bobby Labonte has agreed to a four-year extension. Labonte will continue to drive for what is expected to remain a two-car Cup team for 2009.
Until March, Zucker had been CEO of Midway Games, a Chicago-based producer of video games. In 2002, Zucker was named president and CEO of Playboy Enterprises. From 1988-1999 he was with the Walt Disney Corp., becoming executive vice president at ESPN. He also served as director of ESPN International, overseeing international operations.
Petty said the initial deal is to run two cars but indicated he’d like to have a third Cup team running full time by 2010. Sponsorship, however, remains an issue. The team is losing its primary sponsor of the Labonte’s #43 car. General Mills, to Richard Childress Racing next year. Hovis said a fourth component of the deal will be announced at a Wednesday press conference. USA Today
06/08/08 Petty Enterprises is finalizing a deal to sell majority ownership of its Sprint Cup Series organization to one of the leading private equity firms in the country, Boston Ventures, The Charlotte Observer and ThatsRacin.com have learned. A formal announcement of the deal, which is also likely to include a contract extension for one of the team's drivers, Bobby Labonte, could come as early as Wednesday, multiple sources confirmed.
Boston Ventures has invested six funds totaling $2.6 billion in capital commitments in its 22-year history. According to its Web site, some of Boston Ventures previous portfolio companies include American Media Inc., Motown Records, Six Flags Entertainment and Continental Cablevision.
Petty Enterprises has 268 wins and 10 championships in 60 years of racing but the last win was in 1999 at Martinsville, Va., with driver John Andretti. The last time one of its drivers finished in the top 0 in points was 1995, with driver Bobby Hamilton, who is now deceased.
Earlier this season longtime sponsor of the Pettys' No. 43, General Mills, announced it was leaving at the end of the season and that the organization's No. 45 car still lacks a full-time primary sponsor.
"I think Petty Enterprises is not in an impossible situation, but a hard situation," Kyle Petty said in April. "You're trying to stay a part of the sport and catch up to the sport.
"We're talking to investors. We're losing sponsors. We're trying to find sponsors. We're trying to get drivers.
"We're trying to keep drivers. We've got so many balls in the air. … I don't think it's impossible, but we've got to have the right direction and we've got to stay in the right direction." ThatsRacin.com