The BK Racing charter deal lawsuit is a significant legal dispute involving former NASCAR team owner Ron Devine, BK Racing, and Front Row Motorsports (FRM). The litigation centers on financial and contractual disagreements tied to the sale and liens of a NASCAR Cup Series charter originally owned by BK Racing. The case exposes issues of lender claims, bankruptcy proceedings, and fraud allegations tied to the operations and assets of BK Racing between 2016 and 2025.
Background: BK Racing and the NASCAR Charter
BK Racing was a NASCAR Cup Series team that competed from 2012 until its closure in 2018. Founded by Ron Devine alongside partners, the team acquired a NASCAR charter—essential for guaranteed entry into races—from TRG Motorsports. BK Racing struggled financially despite several sponsorships and driver lineups before ultimately filing for Chapter 11 bankruptcy in 2018. The team’s assets, including the NASCAR charter, became subject to bankruptcy liquidation and sales.
In 2016, BK Racing agreed to sell its NASCAR charter to Front Row Motorsports for $2 million. The deal was supposed to transfer the charter free and clear of any liens or encumbrances. However, the charter had an outstanding loan secured by Union Bank & Trust, unknown to Front Row Motorsports at the time of the purchase. This debt issue sparked the ensuing dispute and lawsuit.
Core Legal Issues in the BK Racing Charter Deal Lawsuit
- Loan and Lien Dispute: Union Bank & Trust claimed ownership rights over the charter due to a lien associated with an unpaid loan exceeding $9 million on BK Racing’s assets, including the charter.
- Contractual Obligations: Front Row Motorsports paid $1 million on signing and promised a second $1 million payment but withheld the remainder upon learning of the lien. BK Racing owners Ronald Devine and Michael DiSeveria signed agreements to defend against the bank’s claims and cover potential losses associated with the debt.
- Breach of Agreement Lawsuit: When Devine and DiSeveria failed to honor the defense and payment obligations, Front Row Motorsports filed a federal lawsuit seeking to recover $2.1 million in settlement and associated legal fees.
- Bankruptcy Misconduct and Fraud Allegations: Ron Devine faced additional scrutiny and a $31 million judgment related to bankruptcy misconduct, tax evasion, and fraudulent financial practices during BK Racing’s dissolution.
Recent Court Rulings and Financial Judgments
Federal courts ruled in favor of Front Row Motorsports, holding the former BK Racing owners accountable for the $2.1 million payment plus nearly $400,000 in attorney fees and other expenses. The Fourth Circuit Court of Appeals affirmed that the settlement amount was reasonable and that Devine and DiSeveria breached their contractual obligations despite attempts to challenge the agreement’s validity.
Additionally, Ron Devine was ordered by a separate U.S. Court of Appeals ruling in 2025 to pay $31 million related to BK Racing’s bankruptcy fraud scheme, including unpaid payroll taxes and misuse of corporate funds. Devine attempted to shield assets through family trusts and multiple corporations but was unsuccessful in appeals.
Implications for NASCAR and Team Ownership
- The lawsuit underscores the complexity and importance of clear title and lien-free transfers in charter sales, vital for teams competing in NASCAR’s charter system.
- Financial mismanagement and legal disputes can jeopardize team operations, sponsorship relations, and ownership credibility in high-stakes motorsports.
- The case highlights how bankruptcy and creditor claims can impact the ownership and control of valuable racing assets, affecting competitive participation.
Frequently Asked Questions About the BK Racing Charter Deal Lawsuit
Who was involved in the lawsuit?
The primary parties include Ron Devine and Michael DiSeveria, former owners of BK Racing, and Front Row Motorsports, the buyer of the NASCAR charter. Union Bank & Trust is the lienholder asserting claim over the charter.
What was the main issue in the lawsuit?
The dispute arose over BK Racing’s failure to deliver the Racing charter free of liens as promised, specifically unpaid loans secured by Union Bank, leading to breach of contract and related financial claims.
How much was Ron Devine ordered to pay?
Devine faces a $31 million judgment stemming from bankruptcy fraud and tax evasion cases, alongside the financial obligations to Front Row Motorsports totaling several million dollars.
What did the courts decide?
Courts upheld Front Row Motorsports’ claims, reaffirmed the validity of agreements, and enforced penalties against Devine for misconduct during BK Racing’s bankruptcy proceedings.
What impact did this lawsuit have on BK Racing?
The lawsuit and bankruptcy proceedings hastened BK Racing’s liquidation, asset sales, and closure as a competitive NASCAR team.
Conclusion
The BK Racing charter deal lawsuit reveals the legal and financial complexities surrounding NASCAR charter transactions and team ownership. The dispute highlights the risks of liens, loans, and incomplete disclosures in high-value motorsports business dealings. Ron Devine’s substantial financial penalties and the breach of contract rulings emphasize the judiciary’s role in enforcing accountability in this competitive industry. For NASCAR teams, investors, and fans, the case serves as a cautionary tale about managing debts, transparency, and contractual obligations in professional racing.
