Thursday, October 28, 2010

BREAKING NEWS: Gillett Made Little On Ski Resort Sale

The sale of a Lake Tahoe Ski Resort by Richard Petty Motorsports majority owner George Gillett this week apparently brought far less to the team’s financial coffers than initially believed.

Gillett’s Booth Creek Ski Holdings, Inc., sold its stock in the companies that operate the Northstar-at-Tahoe Ski Resort to Vail Resorts Tuesday for a reported $63 million. However, a search of public records shows that Northstar-at-Tahoe actually sold for $80 million in November of 2007 to CNL Lifestyle Properties, a real estate investment trust.

CNL’s company prospectus outlines terms of the sale, and makes it clear that since late 2007, Gillett’s company has only managed the resort on their behalf, and not owned it. Industry sources say those management rights likely sold for far less than the claimed $64 million. Further, they say that Gillett personally owns only 2% of Booth Creek Ski Holdings, with his wife accounting for an additional 2%. Thus, Gillett would have received very little cash from Tuesday’s sale.

Richard Petty Motorsports confirmed late yesterday that it will field all four cars this weekend at Talladega Superspeedway for drivers AJ Allmendinger, Elliott Sadler, Paul Menard and Aric Almirola. Today's news raises new concerns, however, over the team's long-term viability.

No comments:

Post a Comment