Sometimes, a deal just makes sense.
In Kyle Busch Motorsports, team owner Kyle Busch had an enviable building with experienced employees and a state-of-the-art CNC machining operation in Rowdy Manufacturing. Coming off a reported $40 million investment to purchase the ownership charter of Live Fast Motorsports, Spire Motorsports co-owner Jeff Dickerson needed space and people for additional NASCAR expansion.
Dickerson had a built-in relationship with Busch as he was his agent and spotter at Hendrick Motorsports. So, it was Dickerson who first approached Busch, at first, about simply forming an alliance but the conversations evolved into Spire ultimately purchasing Kyle Busch Motorsports’ physical assets this week for a reported $25 million.
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It was also a deal Busch says he didn’t have to make during a press conference on Saturday at Talladega Superspeedway.
“We were set with Chase Purdy and (Nick) Sanchez,” Busch said. “We were ready to go into next year. This all just came about, I don’t know a month or ago or so, and was about continuing to service them with Rowdy Manufacturing, things like that and what it could look like.
“Then, it was his bright idea, ‘why are you even doing this, why not let us do it.’ So, I’m like, ‘okay, make it worth my while’ and that’s how it happened and it happened very, very quick.”
For his part, Dickerson was asked about the influence and involvement of Dan Towriss of Group 1001 and Gainbridge, who is believed to be behind the recent expansion and investment of Spire Motorsports. Dickerson said the team remains him and TJ Puchyr.
“I don’t want to minimize Gainbridge’s involvement, because it’s a big deal for us and in the moment, that deal was big for us by itself,” Dickerson said. ” To make it more than that, I get it because they’re making moves and waves over there (in IndyCar with Andretti Autosport) but this is TJ and I and it will continue to be.”
Dickerson said it was about the facility, it’s in-house machine shop and the people who work for Busch.
“We can’t run three (cars) out of our place, now,” Dickerson said of his shop behind Charlotte Motor Speedway in Concord. “We’ve looked at buildings all over the place. We’ve looked at three million dollar buildings and 50 million dollar buildings. The urgency with Kyle is that we need space and Daytona is in February.”
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Busch says that everyone who works for Kyle Busch Motorsports will have a job with the expanded Spire if they want to remain. It was an important component because Busch fought hard for his employees when he moved from Joe Gibbs Racing and Toyota to Richard Childress Racing and Chevrolet.
“Not only does he need a building but he needs people,” Busch said.
Dickerson interjected with ‘we really needed people and the building’ to echo that sentiment.
“We have a really great group of girls and guys, who know how to build fast race trucks,” Busch said. “So do some of them get absorbed into the Truck program? Possibly. Do some of them get absorbed in the Cup program? Possibly.”
“But they’re all safe if they want to be and they’ll have a job if they want to.”
Busch will also remain with the team to race his five Truck Series races a year. The Kyle Busch Motorsports name will also continue with Brexton Busch, the son of the two-time Cup Series champion.
“KBM doesn’t cease to exist,” Busch said. “We just now race an eight-year-old at the grassroots level. The logo can still carry on his shirts. It just won’t carry on at the NASCAR level. “
The biggest takeaway that Dickerson and Spire wants to impart is the conviction that they are serious about building a top tier motorsports organization. They are believed to have spent $65 million over the past month and Dickerson is adamant that the number doesn’t even matter.
“This is what I hear: It’s not about the transaction or the structure,” Dickerson said. “What I hear is ‘are you guys for real (because) something must be going on behind the scenes there.’
“I’d say TJ and I’s name are on the check. From the first time we announced the deal, I appreciate the skepticism because it’s healthy’ but how many of these deals do we need to do before people know that we’re for real?
“We’re a major league sport. We’ve been around for 75 years. We portray ourselves to corporate America like we’re major league and we are major league. That number that’s been reported. I don’t know what it’s such a shock.”
Kyle interjects: “It’s great for the sport. It’s value,” and Dickerson agrees.
“It is great for the sport,” Dickerson said. “We have value. This is a real deal. I hope it’s 400 million.”
Dickerson says he feels like he is constantly trying to prove something to the industry.
“For real for us is we want to be a playoff car and we want to be winners,” Dickerson said. “It just feels like we’re trying to break out of the mold, ‘are these guys even trying.’
“We’ve made significant strides even before this summer. We’re doing it. I think we have stepped up our game but so is everyone else. Maybe it’s not even something you can see, but it’s about perception. We’re making strides.”
As for Busch, did he ever make a profit running Kyle Busch Motorsports over the past 13 years?
“Yes, today,” he said with a chuckle. “But not year to year. No.”
Was it worth it?
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“A lot of the personal relationships have been like Eric Phillips, Rick Ren, Rudy Fugle, all of that stuff,” Busch said. “Chris Gabehart was another one from that stable. I feel like we had a great ride and a great run. It was worth in a lot of ways, racing Late Models, racing trucks, winning in Late Models and winning in Trucks.
“I’ve got a storage facility full of show cars and memories of big wins so I would say yes.”