April 20th, 2010 
Journo For all intents and purposes Kasey Kahne is (or was) Richard Petty Motorsports. He’s, young, he’s attractive, and he’s attached, in one way or another, to just about every sponsorship deal the organization has. Kahne’s marketability and talent on the track made him an outstanding asset for an organization struggling to survive. Now that Kahne is soon to leave the organization, we’ll have a chance to see just how able RPM is to continue in a post-Kahne world.
Kahne’s exit from the team hardly came as a surprise to anyone. While I don’t think too many people thought Hendrick would be the place he’d go in 2011, it was widely believed Kahne wouldn’t return to RPM for another season. Though things appeared to be improving as of late, his discontent with the team became apparent last September when he very publicly questioned the team’s leadership.
Unfortunately for Richard Petty Motorsports, their relationship with Kasey Kahne couldn’t be repaired.
What’s left of RPM is AJ Allmendinger, Elliott Sadler, and Paul Menard. Each of these drivers have contracts that will end at the conclusion of 2010. While prospects may not be too great for Allmendinger and Sadler (as there aren’t many open, funded spots), with improved performance and a billion dollar fortune behind him, Paul Menard could likely go any number of places. The team also faces the prospect of losing major sponsor Budweiser. So the question is, where do they go from here?
Every move the team makes from this point until the end of the season will determine their viability in 2011 and beyond. On top of losing Kahne, Sports Business Journal reported last Monday that the team was in default on a $90 million loan. George Gillett later said the debt was actually closer to $70 million and was in the process of being restructured. Unfortunately for RPM, George Gillett has a bad track record with sports teams and debt. See Liverpool FC; See Montreal Canadiens.
Foster Gillett told the media this weekend though his family was working to improve their liquidity position.
In a sport where your team is only as valuable as the sponsorships and drivers you bring to the table, RPM has lost it’s biggest asset. Without Kahne it’s likely sponsorships will be harder to come by and maintaining their profile as a competitive four car team will be harder to do. It will be interesting to see how the team advances down the rough road ahead.
Posted in 
Tags: 
Great analysis of situation. Unless the Gilletts manage to pull a rabbit out of their hats by somehow attracting both a name driver and big-time sponsor to replace Kahne, I don’t see how RPM survives as a four or three-car team, and maybe not even as a one or two. It’s obvious that these folks don’t know what they’re doing. And while it will be sad if the Petty name disappears from the ownership ranks of NASCAR, this current entity has nothing to do with the Petty Enterprises we’ve known all these years. The Gilletts, through merger and acquisition, bought the rights to the name, so the impending disappearance of Richard Petty Motorsports shouldn’t be the cause of either sadness or alarm. I feel more for the good people at RPM that may lose their jobs in coming months.
It’s unfortunate that it took Kasey to point out the poor leadership at RPM. Was’nt anyone else paying attention? I guess it’s quite difficult to feel very sorry for a poorly run business, be it in motorsports or elsewhere. Good luck RPM, you’re going to need it.
As a Petty fan since since the late 60′s, I had hoped I would never think this way, but it is time.
It is time for Richard to get out of the sport that he helped bring to the forefront.
I think very few people actually know what, if anything, he is doing with the team today.
He continued to drive because he was having fun, and those years severely skewed his overall records. Him staying in the sport today will do nothing but hurt the legacy of a great man, and a great team.
Long live The King.
I am impressed that you have done more digging than most of the articles I have read about RPM and the Gilletts. As the article indicates, my recollection was that the Gilletts had a substantial gain on selling the NHL team. It does seem to be a very convenient coincidence that RPM’s alleged loan problem was leaked just days before the announcement of Kahne’s signing by HMS. Given the record of the NASCAR press for accuracy and effort this century, I bet what the Gilletts told David Newton is much closer to the truth than most all of the commentary there has been in the press. Unfortunately, in today’s world what passes for the press would rather pass commentary off as reporting than actually make the effort to learn the facts.
I believe your story may answer the question. Need some cash? They have a guy in the stable with a $5 Billion checking account and historic racing ties. This rumor was always going around when Menard drove for DEI. With big John having an opportunity to join forces with a name like Richard Petty, it may be tough to pass up now. $90 mil for this guy shouldn’t be a problem.
I’m telling you have Menard buy out Andretti, Earnhardt, Go-Daddy and Danica ‘s contracts and have Mr.The King teach her to win the Daytona 500 in a dayglo orange,petty blue 43. Then Mr. The King tells everyone I am riding in the sunset because I just pulled off the greatest feat in all of racing. I have all the records, I have all the trophies and now I did what the said would never happen. A woman not only won a Cup race but she won in driving the legend of all legends.
ITS TO BAD MONEY MAKES THE DIFFERENCE WHO WINS OR LOSES BUT MONEY TALKS AND ######WALKR