Ron Devine, once a hopeful figure in NASCAR’s competitive landscape, now finds his name etched in one of the sport’s most cautionary tales. The former owner of BK Racing—a team that entered the NASCAR Cup Series with ambition in 2012—faces a legacy overshadowed by financial turmoil, legal entanglements, and allegations of misconduct.
As of January 2025, Devine’s legal troubles escalated when the U.S. Court of Appeals upheld a $31 million judgment against him, stemming from BK Racing’s bankruptcy. This ruling reaffirms allegations of financial mismanagement during his tenure as team owner and compounds the criminal charges he already faces for federal tax violations.
BK Racing: A Promising Start, a Bitter End
BK Racing’s inception in 2012 brought fresh energy to NASCAR’s Cup Series. Devine’s vision was to establish a competitive team, but behind the scenes, the foundation was crumbling. Financial mismanagement, mounting debts, and internal instability plagued the team. By February 2018, BK Racing filed for Chapter 11 bankruptcy, revealing debts of over $8 million, including loans, IRS obligations, and employee wages.
The bankruptcy court supervised a sale of the team’s charter and assets, which were eventually acquired by Front Row Motorsports for $2.08 million. While the sale marked the end of BK Racing’s journey in NASCAR, it was only the beginning of Devine’s legal battles.
The $31 Million Judgment
The recent court ruling, delivered in January 2025, includes $6 million in payments made to Devine-affiliated trusts and companies and $11 million in debts owed by BK Racing. The bankruptcy trustee argued these funds were improperly used and required reimbursement. The appellate court’s decision upheld the lower court’s ruling, describing Devine’s conduct as a “blatant disregard for the judicial process.”
This judgment ensures any recovered funds will be directed toward repaying creditors, including banks, the IRS, and former BK Racing employees. However, the availability of these funds remains uncertain.
Tax Fraud Charges and Criminal Liability
Devine’s troubles don’t stop with the civil judgment. In 2023, the U.S. Attorney for the Western District of North Carolina filed an indictment accusing Devine of failing to pay payroll taxes from 2012 to 2017. Prosecutors alleged that Devine diverted over $2 million in payroll taxes intended for the IRS to cover BK Racing’s operational expenses, such as rent and utilities.
The most egregious charge highlighted Devine’s failure to remit $176,000 in trust fund taxes during the second quarter of 2017. He was indicted on four counts of failure to pay payroll taxes, each carrying a potential five-year prison sentence and a $250,000 fine. In October 2024, Devine entered a plea deal, acknowledging his tax evasion and agreeing to a $1 million fine.
The Fallout and Devine’s Defense
Devine has maintained that his actions were driven by an attempt to keep the team operational, not personal gain. Speaking about his financial disclosures, he lamented:
“I’m trying as hard as I can… to keep up with this thing. It is amazingly overwhelming. … I am an honest person.”
Despite these claims, the courts and federal prosecutors have shown little leniency, painting a picture of reckless financial decisions that left creditors, employees, and fans in the lurch.
What’s Next for Ron Devine?
With civil and criminal penalties piling up, Devine faces a steep uphill battle. The $31 million judgment alone would be a monumental burden, even without the additional $1 million fine for tax fraud. While the plea deal mitigates his exposure to maximum prison sentences, the combination of fines, legal fees, and reputational damage leaves Devine’s future uncertain.
For NASCAR fans, the fall of BK Racing is a cautionary tale about the risks of overreach and mismanagement in the high-stakes world of motorsports. For Ron Devine, it’s a saga of unfulfilled potential, a tarnished legacy, and a fight for redemption in the face of mounting legal challenges.