Update on NJMP Chapter 11 Filing
03-15-2011, 01:14 PM
#1
Race Director
Thread Starter
Update on NJMP Chapter 11 Filing
I recieved the following email from NJMP last night. It all sounds positive, let's hope it is.
New Jersey Motorsports Park Announces Restructuring, Changes in Ownership.
Issues Updated Details on Chapter 11 Filing
March 14, 2011
New Jersey Motorsports Park last week announced it had filed for Chapter 11 Bankruptcy, a move that caused some in the local and racing communities to question the facility's future viability. Today, NJMP released further details on its financial restructuring, and sought to clarify the circumstances and expected results of its recent actions.
Management and Ownership Changes
One of the ramifications of the recent filing is a future change to the ownership structure planned to coincide with the effective date of plan confirmation and reorganization. Lee Brahin, the Philadelphia-area real estate developer who led and oversaw the development of the entire facility, will increase his ownership stake, and will become co-managing partner of NJMP. Harvey Siegel, who has employed his expertise in running multi-use motorsports facilities such as his Virginia International Raceway to great effect at NJMP, will retain his ownership stake and will continue to work on future development concepts and activities while fostering relationships within the racing community for the Park's benefit. Former minority owner RJ Valentine will up his stake to a more significant holding, becoming co-managing partner with Brahin and assuming managerial responsibility for marketing activities at the Park.
NJMP has worked with its lender to restructure the terms of its financing agreement, providing a reduced principal balance and lower debt service - the net effect of which is that the facility will have more cash on hand for operations.
Lee Brahin, who to date has been instrumental in creating the vision for the park, master-planning and execution of permitting processes and construction, will continue to work on development activities, entitlements and high level financial and business activities of the enterprise.
He said, "We have worked in cooperation with our lender and have come up with a structure that we feel will maximize long-term value to all of the various stakeholders in the business while providing continued and expanded world-class service to our customers, Within that structure and plan, we appreciate their strong confidence in existing management. I look forward to my continued involvement in existing management during our reorganization process as well as being involved in the future management team which will feature an array of new and successful entrepreneurs with an history of success and involvement in both the automotive and racing worlds. Truly, this will be the "A" team."
Brahin continued, "We've made what I think very many of our fellow Millville and Cumberland County businesses would call a significantly positive economic impact in the region, and will continue to build partnerships around South Jersey. The more events we hold, the more of our spectators' and participants' dollars are spent in Cumberland County, and we will strive to be ideal 'anchor tenants' for the region, as we'd say in the retail development business."
Motorsports and Entrepreneurial Expertise
RJ Valentine has a long history of entrepreneurship and vast experience in the motorsports facilities business, including running two racing businesses that have weathered the financial storm of 2009-10, F1 Boston and F1 Outdoor. In a career that has spanned more than 30 years, Valentine's marketing focused-ventures have included a network of highly profitable Jiffy Lube franchises, a Massachusetts-wide insurance operation, and extensive management roles in aviation, transportation and oil and gas companies.
"While bankruptcy is always an unpleasant experience," Valentine commented, "it is a tool for businesses to use in restructuring its debt. Our mortgage lender has been fantastic in working with us to restructure the debt that NJMP assumed to get our facility built and operating. Like our lender, I have full confidence in my partners' - Lee Brahin and Harvey Siegel - abilities, leadership and vision. We are now strongly positioned to grow and increase our economic impact within the South Jersey community, and are excited to get into executing our marketing plans."
He said, "We've built an incredible management and operational team here, including our General Manager Brad Scott, who came to us with years of experience with Aramark, having overseen operations at the Wachovia Center in Philadelphia, Fenway Park in Boston and Camden Yards in Baltimore. Brad and his team have continued to build NJMP's event schedule and membership through two of the toughest years, economically, of the past couple of decades, and they deserve a great deal of credit for that."
New Jersey Motorsports Park features several high-impact racing events on its 2011 Calendar, including the return of the Grand-Am Rolex Sports Car Series, AMA Pro Superbike Championship, ARCA Racing Series and the New Jersey Vintage Grand Prix, which will include a performance by the legendary US Navy Blue Angels.
New Jersey Motorsports Park Announces Restructuring, Changes in Ownership.
Issues Updated Details on Chapter 11 Filing
March 14, 2011
New Jersey Motorsports Park last week announced it had filed for Chapter 11 Bankruptcy, a move that caused some in the local and racing communities to question the facility's future viability. Today, NJMP released further details on its financial restructuring, and sought to clarify the circumstances and expected results of its recent actions.
Management and Ownership Changes
One of the ramifications of the recent filing is a future change to the ownership structure planned to coincide with the effective date of plan confirmation and reorganization. Lee Brahin, the Philadelphia-area real estate developer who led and oversaw the development of the entire facility, will increase his ownership stake, and will become co-managing partner of NJMP. Harvey Siegel, who has employed his expertise in running multi-use motorsports facilities such as his Virginia International Raceway to great effect at NJMP, will retain his ownership stake and will continue to work on future development concepts and activities while fostering relationships within the racing community for the Park's benefit. Former minority owner RJ Valentine will up his stake to a more significant holding, becoming co-managing partner with Brahin and assuming managerial responsibility for marketing activities at the Park.
NJMP has worked with its lender to restructure the terms of its financing agreement, providing a reduced principal balance and lower debt service - the net effect of which is that the facility will have more cash on hand for operations.
Lee Brahin, who to date has been instrumental in creating the vision for the park, master-planning and execution of permitting processes and construction, will continue to work on development activities, entitlements and high level financial and business activities of the enterprise.
He said, "We have worked in cooperation with our lender and have come up with a structure that we feel will maximize long-term value to all of the various stakeholders in the business while providing continued and expanded world-class service to our customers, Within that structure and plan, we appreciate their strong confidence in existing management. I look forward to my continued involvement in existing management during our reorganization process as well as being involved in the future management team which will feature an array of new and successful entrepreneurs with an history of success and involvement in both the automotive and racing worlds. Truly, this will be the "A" team."
Brahin continued, "We've made what I think very many of our fellow Millville and Cumberland County businesses would call a significantly positive economic impact in the region, and will continue to build partnerships around South Jersey. The more events we hold, the more of our spectators' and participants' dollars are spent in Cumberland County, and we will strive to be ideal 'anchor tenants' for the region, as we'd say in the retail development business."
Motorsports and Entrepreneurial Expertise
RJ Valentine has a long history of entrepreneurship and vast experience in the motorsports facilities business, including running two racing businesses that have weathered the financial storm of 2009-10, F1 Boston and F1 Outdoor. In a career that has spanned more than 30 years, Valentine's marketing focused-ventures have included a network of highly profitable Jiffy Lube franchises, a Massachusetts-wide insurance operation, and extensive management roles in aviation, transportation and oil and gas companies.
"While bankruptcy is always an unpleasant experience," Valentine commented, "it is a tool for businesses to use in restructuring its debt. Our mortgage lender has been fantastic in working with us to restructure the debt that NJMP assumed to get our facility built and operating. Like our lender, I have full confidence in my partners' - Lee Brahin and Harvey Siegel - abilities, leadership and vision. We are now strongly positioned to grow and increase our economic impact within the South Jersey community, and are excited to get into executing our marketing plans."
He said, "We've built an incredible management and operational team here, including our General Manager Brad Scott, who came to us with years of experience with Aramark, having overseen operations at the Wachovia Center in Philadelphia, Fenway Park in Boston and Camden Yards in Baltimore. Brad and his team have continued to build NJMP's event schedule and membership through two of the toughest years, economically, of the past couple of decades, and they deserve a great deal of credit for that."
New Jersey Motorsports Park features several high-impact racing events on its 2011 Calendar, including the return of the Grand-Am Rolex Sports Car Series, AMA Pro Superbike Championship, ARCA Racing Series and the New Jersey Vintage Grand Prix, which will include a performance by the legendary US Navy Blue Angels.
03-15-2011, 03:57 PM
#2
Le Mans Master
They need more marketing, and it seems they are aware of this issue based on their press releases...I live within 35 minutes of the place and don't see billboards, tv comercials, radio broadcasts, NOTHING. This needs to change and they should leverage Atlantic City in some way.
Hope the place continue's on...nice to be able to wake up drive 35 minutes to the track and be home for dinner!!
Hope the place continue's on...nice to be able to wake up drive 35 minutes to the track and be home for dinner!!
03-15-2011, 05:14 PM
#3
Race Director
Thread Starter
They need more marketing, and it seems they are aware of this issue based on their press releases...I live within 35 minutes of the place and don't see billboards, tv comercials, radio broadcasts, NOTHING. This needs to change and they should leverage Atlantic City in some way.
Hope the place continue's on...nice to be able to wake up drive 35 minutes to the track and be home for dinner!!
Hope the place continue's on...nice to be able to wake up drive 35 minutes to the track and be home for dinner!!
I'm about 50 minutes away and your absolutely right about their lack of promotion in the area. I've talked to a lot of local car people, that have no idea the place exists!
It sounds like Heller is familiar with motorsports and the Delaware Valley area, which might be just what they need.
03-29-2011, 02:33 PM
#4
Burning Brakes
Just got this from TRG... more bad news for NJMP.
TRG to Exit from New Jersey Motorsports Park
Petaluma, CA (March 29, 2011)- Following several years of planning both from a developmental and financial means, TRG has decided to postpone its current plans to develop an East Coast hub at the recently built New Jersey Motorsports Park.
With plans including everything from a lavish new country club environment for racers, to personal car condominiums, all the way to a driving school and place to have an exotic, collector, or sportscar maintained, TRG had always had very ambitious plans for the new project. With Millville, New Jersey’s geocentric location to such cities as New York, Philadelphia, Boston and Washington D.C., the compound had always been seen as a perfect locale for the busy East Coast executive to handle his racing fix.
Unfortunately, on-going ownership, management and directional issues of the park and a recent bankruptcy filing of the facility has forced TRG to distance itself from the current racetrack until a clearer direction for the park is seen.
For Team Owner Kevin Buckler, the prospect and opportunity was strong in the beginning but the recent challenges of the facility have made it difficult to continue.
“When TRG first came to New Jersey Motorsports Park we had very high hopes on our future plans together, as did the park and its management,” stated Buckler. “It was a major East Coast expansion for us adding to our current successful operations in Petaluma, California and Mooresville, North Carolina. We loved the local town and its people and their enthusiasm for our involvement in the community. The park has obviously had some challenges and things did not develop as we had hoped for. We no longer support the ownership and management of the facility or it’s vision for the future. Our brand is very strong right now and our NASCAR and Sportscar racing programs are in full swing. It is regrettable, but in the best interest of TRG to distance ourselves from this current situation. Our lease is not up for several months but we are removing all of our equipment, temporary personnel and signs as of today. We wish the park the best of luck in the future and hope we can be back again someday if the conditions are right.”
The New Jersey Motorsports Park was founded in 2007 with the idea of being an East Coast hub for modern road racing. Featuring professional and club events that included participation from AMA Pro Racing, GRAND-AM, and the ARCA Re/Max series, the campus had always featured a fast and diverse calendar of events.
TRG is a full-service motorsports company offering a total driver ladder approach, as well as comprehensive sponsorship opportunities. For drivers, this approach starts with track days, goes to club events, up into street stock series and culminates in the ultimate goal of professional motorsports. For sponsors and business partners, this approach starts with everything from Executive events, to traditional sponsorship models, all the way to business-to-business networking and experiential marketing. With facilities in Petaluma, California and Mooresville, North Carolina the team can offer turn-key marketing programs as well as arrive-and-drive support.
The company’s NASCAR operations are headquartered in Mooresville, North Carolina. The team fields a NASCAR Sprint Cup Series entry and has the capacity to run ARCA, Nationwide and the Camping World Truck Series.
The Racer’s Group was founded in 1993 and has been competing at the top level of motor racing. The team boasts Rolex Series GT championships in 2005 and 2006 and holds the record for the most wins in Grand-Am with 32. The team’s resume is highlighted by five championships, four Rolex 24 Hour at Daytona victories, and a Le Mans 24 Hour win.
TRG to Exit from New Jersey Motorsports Park
Petaluma, CA (March 29, 2011)- Following several years of planning both from a developmental and financial means, TRG has decided to postpone its current plans to develop an East Coast hub at the recently built New Jersey Motorsports Park.
With plans including everything from a lavish new country club environment for racers, to personal car condominiums, all the way to a driving school and place to have an exotic, collector, or sportscar maintained, TRG had always had very ambitious plans for the new project. With Millville, New Jersey’s geocentric location to such cities as New York, Philadelphia, Boston and Washington D.C., the compound had always been seen as a perfect locale for the busy East Coast executive to handle his racing fix.
Unfortunately, on-going ownership, management and directional issues of the park and a recent bankruptcy filing of the facility has forced TRG to distance itself from the current racetrack until a clearer direction for the park is seen.
For Team Owner Kevin Buckler, the prospect and opportunity was strong in the beginning but the recent challenges of the facility have made it difficult to continue.
“When TRG first came to New Jersey Motorsports Park we had very high hopes on our future plans together, as did the park and its management,” stated Buckler. “It was a major East Coast expansion for us adding to our current successful operations in Petaluma, California and Mooresville, North Carolina. We loved the local town and its people and their enthusiasm for our involvement in the community. The park has obviously had some challenges and things did not develop as we had hoped for. We no longer support the ownership and management of the facility or it’s vision for the future. Our brand is very strong right now and our NASCAR and Sportscar racing programs are in full swing. It is regrettable, but in the best interest of TRG to distance ourselves from this current situation. Our lease is not up for several months but we are removing all of our equipment, temporary personnel and signs as of today. We wish the park the best of luck in the future and hope we can be back again someday if the conditions are right.”
The New Jersey Motorsports Park was founded in 2007 with the idea of being an East Coast hub for modern road racing. Featuring professional and club events that included participation from AMA Pro Racing, GRAND-AM, and the ARCA Re/Max series, the campus had always featured a fast and diverse calendar of events.
TRG is a full-service motorsports company offering a total driver ladder approach, as well as comprehensive sponsorship opportunities. For drivers, this approach starts with track days, goes to club events, up into street stock series and culminates in the ultimate goal of professional motorsports. For sponsors and business partners, this approach starts with everything from Executive events, to traditional sponsorship models, all the way to business-to-business networking and experiential marketing. With facilities in Petaluma, California and Mooresville, North Carolina the team can offer turn-key marketing programs as well as arrive-and-drive support.
The company’s NASCAR operations are headquartered in Mooresville, North Carolina. The team fields a NASCAR Sprint Cup Series entry and has the capacity to run ARCA, Nationwide and the Camping World Truck Series.
The Racer’s Group was founded in 1993 and has been competing at the top level of motor racing. The team boasts Rolex Series GT championships in 2005 and 2006 and holds the record for the most wins in Grand-Am with 32. The team’s resume is highlighted by five championships, four Rolex 24 Hour at Daytona victories, and a Le Mans 24 Hour win.
Last edited by clubracer6; 03-29-2011 at 02:36 PM.
