Kyle Busch Motorsports has sued Rev Racing over unpaid NASCAR Craftsman Truck Series partnership payments.
Owned by two-time NASCAR Cup Series champion Kyle Busch, KBM filed a complaint against Rev Racing on February 12 for breach of contract and unjust enrichment, according to Mecklenburg County, North Carolina records obtained by the Sports Business Journal.
KBM alleges that Rev was late on, or missed payments, tied to its partnership during the 2023 Truck Series season. It was an agreement that called for KBM to field driver Nick Sanchez under the Rev Racing banner for $2.9 million.
The filing states that Rev has only paid $2.575 million and still owes $325k. KBM is seeking the remaining balance plus interest and attorney fees.
Specifically, the lawsuit states that Rev Racing agreed to pay 10 monthly installments of $290,000 beginning on January 15 of last year. It states that Rev Racing made those payments through August before an untimely and incomplete payment of $145,000 in September and no payment in October.
The filing also states that Rev Racing recently made a $110,000 payment and that KBM made efforts to communicate its intent to receive the remaining amount. Rev Racing, which is owned by Max and Jennifer Segal, operates under an official partnership with NASCAR’s Drive for Diversity program.
Both Rev and the Drive for Diversity program competes in the Truck Series, ARCA and in the Late Model ranks and provides a pathway for minority racers and motorsports specialists to further their careers at the highest levels in the discipline.
“On January 31, 2024, KBM, through counsel, sent a final letter to Rev Racing demanding payment of the full principal amount owed, $325,000.00, within one (1) week,” KBM’s complaint alleges. “Rev Racing has not paid and has not responded.”
Terrance Kinnard, an attorney representing Rev Racing, provided a statement to CBJ: “At this time, we are working through some accounting as it relates to how funds are allocated between our partners. We fully anticipate the matter being amicably resolved and maintaining a fruitful and productive relationship.”
Adam Ross, an attorney representing KBM in the case, said Busch hopes the situation is resolved soon.
NASCAR did not respond before deadline to a request for comment on the situation.
Sports Business Journal
Busch sold both KBM and his machine company, Rowdy Manufacturing, to Spire Motorsports for a reported $25 million in October and that included the assets of the Craftsman Truck Series team. That also includes its shop where Spire now operates its NASCAR program out of.
Kyle Busch Motorsports still exists but purely as an open wheel dirt team for 8-year-old Brexton Busch’s development.
Rev now has a similar partnership with Spire, fielding a truck for Sanchez, who won the Truck Series opener at Daytona last weekend. Busch will also make five starts for Spire in the Truck Series as part of his consultation role with Spire.
Matt Weaver is a Motorsports Insider for Sportsnaut. Follow him on Twitter.