Former NASCAR Team Owner Ordered To Pay $31 Million By US Court

The U.S. Court of Appeals has confirmed a staggering $31 million fine against Ron Devine, the former owner of BK Racing, following his indictment in 2023 for deliberately avoiding payroll taxes.

BK Racing, a NASCAR Cup Series team, was operational from 2012 until its dissolution in 2018. Founded by Ron Devine, who also ran several Burger King franchises, BK Racing’s origin lies in the acquisition of a charter originally belonging to TRG Motorsports.

This acquisition, happening around 2011, cost Devine and his partners, Thomas Uberall and Wayne Press, approximately $10 million.

Yet, the team’s journey was fraught with financial instability, leading to a Chapter 11 bankruptcy filing right before the 2018 Daytona 500.

William Byron, driver of the #24 Axalta Chevrolet, and Christopher Bell, driver of the #20 Interstate Batteries/DEWALT Toyota, race during the NASCAR Cup Series Championship Race at Phoenix Raceway on November 10, 2024 in Avondale,…

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The legal complexities surrounding BK Racing became more pronounced when Union Bank & Trust Company laid claim to the team’s assets during the bankruptcy proceedings in 2018.

This bankruptcy culminated in the appointment of a trustee, taking over BK Racing’s assets, including its valuable NASCAR charter and facilities.

Despite the option for BK Racing to continue racing as a non-chartered team, financial realities made this an impractical avenue.

The U.S. Court of Appeals resolutely supported the original bankruptcy court’s decision, condemning Devine’s conduct. In the words of the presiding judge:

“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.”

Devine’s legal battles, however, extend beyond this singular judgment. From 2012 to 2017, he failed to pay more than $390,000 in payroll taxes to the IRS, actions that led to multiple charges and the risk of substantial fines and even imprisonment.

Eventually, a plea deal was arranged, with Devine acknowledging his willful failure to pay these essential taxes.

Even as BK Racing disbanded, the effects of its operational issues lingered. Though once home to notable drivers like Alex Bowman, Corey LaJoie, and Matt DiBenedetto, the team struggled significantly on the track.

Despite the individual talents of its drivers, BK Racing could not secure meaningful success in the competitive NASCAR environment.

Eventually, the team’s assets were liquidated and sold to Front Row Motorsports for a fraction of their initial value, although this did not immediately curtail operations.