Ginn to sell the #13?

[RaikkonenRules]

There were up to 30 layoff's Monday at Ginn Racing, also been told the #4 Ginn Racing Busch Series team has suspended operations. Also hearing that Ginn Racing may sell off one of its teams, likely the #13, which is vaulable with it being in the top-35 in owners pts.

[blakebeatty]

What happened here? Ginn has gone from throwing money away like it was going out of style to this.

[Sparky1329]

What happened here? Ginn has gone from throwing money away like it was going out of style to this.

Maybe he got a little too exuberant on that throwing money around thing.

[MD24]

What happened here? Ginn has gone from throwing money away like it was going out of style to this.

Maybe he didn't have that much money after all

[Hoss Ghoul]

Someone posted here a couple of months back, I can't recall who, but they suggested/explained a lot of Ginn's money was smoke and mirrors land deals, etc. Do a search for Ginn and you can probably find the thread. Perhaps that was true after all.

Found It. Below quote is from beachbum:

"The Ginn company is an interesting situation. His father created a small but solid development company that he took over in 1998. By 2000, they had only 31 million is sales. Not small, but not huge by resort standards. By 2005, they claim to have expanded to $2.5 billion in sales - a huge increase. (sales figures from their web site) They have done this by buying up essentially worthless land (a number are old superfund sites) and then creating large development and marketing plans for the properties. Note the word plans and marketing. To quote from their web site "our company is driven by sales and marketing". This emphasis has generated huge amounts of cash.

The problem is how this cash is generated and spent. Much of the cash is being plowed back into marketing using such expensive high profile tactics as golf tournaments, sponsoring athletes, and Ginn Racing. But the buyers of the properties expect to see some actual construction for their money, and with the exception of a couple older properties, not much is actually happening. In fact, a number of the sites are getting serious opposition from local residents and state and local authorities. Some of the projects may never actually be built, at least not as proposed.

Not only are there issues with opposition to the plans, much of the land needs a large influx of cash to built the infrastructure and clear up legacy environmental issues. For the most part, that isn't happening.

So the question becomes, how long can this "ride" continue? At some point, all that cash may have to be used for its intended purpose - building promised resorts. That might leave the marketing side (or even the whole company) in trouble. There are many people who question the business model and wonder if it is sustainable. Right now, it looks great. But there are many who think it is a high stakes poker game to expect that income will keep rising fast enough to keep paying for the marketing and actually build what they have sold. If the properties collapse, this whole shell game could come crashing down."http://www.nascar.com/2007/news/headlines/cup/07/10/kennedy.plane.crash/index.html

[Mark in Oshawa]

Best way to make a small fortune in racing? Start with a large one.... I guess Ginn didn't hear that one. IT does explain why he didn't make a run at getting Dale Jr.....