Petty re-signs Labonte, announces merger deal

CONCORD, NORTH CAROLINA (TICKER)—Petty Enterprises will be moving forward with Bobby Labonte and a new partner.

The NASCAR organization on Wednesday announced the re-signing of Labonte to a four-year contract, keeping the former Cup series champion and potential free agent in the No. 43 Dodge made famous by Richard Petty.

Labonte, 44, has been the driver of the team’s flagship car since 2006. The Petty team still needs a sponsor for Labonte’s vehicle, given that current backer General Mills is leaving to sponsor a fourth Sprint Cup entry at Richard Childress Racing for next season.

“I have known all along this is where I want to finish my racing career,” Labonte said. “The future is very bright for Petty Enterprises. As we continue to develop and learn from this new car, we will increase our testing and engineering support.”

Labonte, who won the championship with Joe Gibbs Racing, has been a cornerstone of the Petty team’s attempt at improving its level of competition. His 18th-place finish in final points last year marked the first time in eight years that a Petty driver placed in the top 20.

But Labonte has been unable to get Petty back to Victory Lane. No Petty driver has won a Cup race since John Andretti won at Martinsville Speedway in April 1999

Still, Labonte has recorded 11 top-10 finishes since joining Petty - and Sunday at Pocono Raceway, he finished 11th, matching his best result of this season.

Also during Wednesday’s news conference at Lowe’s Motor Speedway, it was announced that Boston Ventures, a Massachusetts-based private equity firm, purchased controlling interest in Petty Enterprises, including the Richard Petty Driving Experience.

In 2003, NASCAR team owner Richard Childress used a similar agreement with another equity firm, New York-based Chartwell Investments, to raise capital that helped him turn his team into one of the sport’s best. All three of his drivers currently rank in the circuit’s top 11 in points.

“The investment from Boston Ventures will allow us to compete on the same level as the bigger Sprint Cup teams,” Labonte said.

Boston Ventures’ other investments include a Minnesota rural telephone company, Six Flags Entertainment, Motown Records and the parent company of the National Enquirer.

Barry Baker, managing director of Boston Ventures, becomes Petty’s new chairman while David Zucker takes over as CEO.

Richard Petty said he will still have a large day-to-day role with the team his family has run since 1949, but Boston Ventures now maintains control of the 60-year-old operation.

“Everything has changed so much from where we first started, and as time progressed, it really got away from us,” Petty said. “We just got behind and we tried to do it from the automotive deal, from the inside out.

“We finally set down and said, ‘OK, guys, if we’re going to play this game, we’ve got to get in the game.’ The only way we could get in the game was to get new moneys coming in.”

NASCAR chairman Brian France, who was present for the announcement, insisted small teams still do not need investors to remain competitive in racing.

“They don’t have to,” France said. “They can and they have, and it’s attractive for different investment groups. But the jury is still out from the actual benefits. It’s not an either-or, but it’s an attractive sport to do business in.”

Still, it will take time for Petty to possibly become a force in NASCAR once again.

“We are not that arrogant to think this can happen overnight,” said Andy Davis, managing director of Boston Ventures. “But it is our goal to bring back Petty Enterprises to its former glory.”