Connect with friends faster than ever with the new Facebook app. Before joining Forbes, I reported for the Hartford Courant and the New Haven Register, covering breaking and local news. Forbes: Car dealership group part-owned by Nick Saban received millions in PPP loans originally appeared on College Football Talk, Like us on Facebook to see similar stories, A Muslim millennial was elected the country’s first out nonbinary lawmaker — in Oklahoma, British grocer Sainsbury's is cutting 3,500 jobs and closing more than 80% of Argos stores. This site is not endorsed by, sponsored by, or affiliated with the University of Alabama. The Alabama head coach is part-owner of a string of car dealerships located in four states throughout the Southern U.S. called the Dream Motor Group. Nah. Disclosure: Forbes Media LLC was a recipient of a Paycheck Protection Program loan of $5 million to $10 million. A Connecticut native, I studied journalism at Penn State University. Head coach Nick Saban of the Alabama Crimson Tide on the field watching his team warm up before a ... [+] game against the Mississippi State Bulldogs at Davis Wade Stadium in Starkville, Mississippi. Before joining Forbes, I reported for the Hartford Courant and the New Haven Register, covering breaking and local news. Saban owns stakes in four out of the six dealerships — the Mercedes dealers in Nashville, Tennessee; Irondale, Alabama and Hoover, Alabama, as well as in the Hoover Infiniti dealership, Agresti says. There are multiple partners in this thing,” Agresti says of his company’s decision to take the loan. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. Dream Motor Group currently owns five Mercedes-Benz dealerships in Texas, Tennessee, Alabama and Louisiana and one Infiniti dealership in Hoover, Alabama, all of which are run by Agresti. From SportsBusinessDaily.com: In the college realm, Conference USA received a loan worth between $350,000 and $1M, which preserved 21 jobs. He says the company has also donated 200,000 masks to local firefighters and police officers in the towns in which they operate. I cover all things related to careers, jobs and the workplace. You may opt-out by. I'm the Careers reporter at Forbes. But it would have been bad. A Connecticut. A car dealership group part-owned by Alabama Crimson Tide head coach Nick Saban received between $5 million and $11 million in Paycheck Protection Program (PPP) loans in the past few months. In December 2019, he ranked eighth on Forbes’ list of the Highest-Paid Coaches in American Sports. Several public companies, such as Shake Shack and Ruth’s Hospitality group, operator of Ruth’s Chris Steak House, returned their PPP loans in April. “While Coach makes a pretty penny doing what he does, the rest of us don’t.”, Saban grew up pumping gas and fixing flat tires at his father’s gas station in the mining town of Monongah, West Virginia. Alabama Basketball non-conference schedule released, WATCH: Tua Tagovailoa talks about Kyler Murray ahead of Week 9 matchup vs. Cardinals, Latest CBS 2021 NFL mock draft predicts 7 Alabama players in first round, Mac Jones now favorite to win Heisman on BetMGM, Marlon Humphrey confirms positive COVID test, WATCH: Damien Harris scores first career NFL TD, WATCH: Tua Tagovailoa throws first career NFL touchdown, Alabama continues to remain at No. The PPP loan program is intended to provide economic relief to small businesses adversely affected by the coronavirus. GoDaddy billionaire Bob Parsons followed suit, receiving an $8 million loan in April, but returning it to the government one month later. Records released by the U.S. Small Business Administration on Monday show that Dream Motor Group, which has dealerships in four states in the southern U.S., got loans of at least $5 million in April. In May, Parsons told Forbes, “There’s many other businesses that needed it more than we do, so we felt like it was only right to give it back.”. The National Football Foundation and College Football HOF, Ole Miss Athletics Foundation and National Association of Intercollegiate Athletics (NAIA) also received loans in the same range. Not surprisingly, Saban is far from the only one connected to the sport to benefit from the PPP program. For the past few months, he has sold masks to sports teams, state governments, retailers and hospitals. Saban is a partner in Dream Motor Group, which is run by CEO Joe Agresti. Of course it won’t. https://www.si.com/.../how-don-james-made-nick-saban-become-a-coach © 2020 Forbes Media LLC. A car dealership group part-owned by Alabama Crimson Tide head coach Nick Saban received between $5 million and $11 million in Paycheck Protection Program (PPP) loans in … 2 in Awmay Coaches Poll, Alabama vs. Mississippi State: Postgame Report, Your California Privacy Rights/Privacy Policy. But before we get into that, he was his exact response: “There was one of those two-seat Mercedes that came in one day. Which brings us to Nick Saban. They’ve also continued to pay the roughly 9% of high-risk employees who they instructed to stay home since the pandemic began, he says. The expert estimated that the group sells about 10,000 cars a year at an average price of $70,000. Saban was originally hired in 2007 under an eight-year, $32 million deal. All Rights Reserved, This is a BETA experience. Agresti declined to comment on these figures, saying, “Whatever we used to do doesn’t happen anymore, and we have no idea if it will ever come back.”. And, according to Forbes.com, Dream Motor Group received between $5 million and $11 in PPP loans the past few months. Before getting all bent out of shape, there’s more nuance to the story. Agresti says Dream Motor Group hasn’t applied for loan forgiveness yet, and isn’t sure if the dealerships will. In the past few months, companies owned by high-net-worth individuals and publicly traded companies faced a backlash for taking PPP loans, as many smaller mom-and-pop shops were shut out of accessing the loans. At least 515 jobs were retained as a result of the loans, according to SBA data. Dream Motor Group likely earns profits of between $20 million and $30 million annually, with annual revenues upward of $700 million, according to an industry expert, who does not want to be named. “We will let the good Lord tell us what to do in the end,” he says. Agresti adds he hasn’t taken a salary since March. His response? Saban did not reply to a request for comment. The pair then purchased Crown Mercedes-Benz and Crown Infiniti in a 50-50 partnership, Automotive News reported. “It’s not really about Coach [Saban]. Agresti would not confirm Saban’s exact stake in the dealerships but says Saban is a part owner. And I said, man, this beats them all. Photos: Look At How Nick Saban Parks His Car At Alabama. And then you have Tom Brady and his TB12 company as well. Live: What The Presidential Election Results Mean For Your Money, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, YouTube page of Mercedes-Benz of Music City. In July of 2018, Alabama announced a revamped contract that would pay Saban in the neighborhood of $75 million over eight years. Saban doesn’t take a salary but instead receives a percentage of profits, Agresti explains. In 2013, Saban approached Agresti, who already owned a Louisiana dealership, about owning a dealership together, according to Automotive News. Agresti says that the loan money was used only for payroll purposes, and that it kept his and Saban’s 480 workers employed. After months of secrecy, the SBA and the U.S. Treasury Department announced on June 19 that they would disclose the names of businesses that received PPP loans between $150,000 and $10 million—accounting for nearly 75% of the loan dollars approved. Both Saban and Agresti were subpoenaed, but the suit was ultimately settled out of court a year later. On its website, the Small Business Administration asks potential borrowers to certify in good faith that their PPP loan request is necessary. That year, the existing Birmingham, Alabama Mercedes dealership, Crown Mercedes-Benz, sued Mercedes-Benz USA to stop Saban’s new dealership from opening, claiming that it violated its franchise agreement. So there’s that. Welcome to Mercedes-Benz of Birmingham - Nick Saban By Mike Rodak | mrodak@al.com Dream Motor Group, a car dealership chain in which Alabama coach Nick Saban … He told Forbes in 2008 that growing up, “I figured I would run a car dealership, that it was better to sell cars than to fix them up.”. A Mercedes, but it was not like one that you would expect. This facet of the stimulus package helps companies with 500 or fewer employees retain those workers by covering eight weeks worth of payroll expenses. Saban, who’s 68, is far from hurting for money. Alabama head coach Nick Saban was asked about his favorite car. The Alabama head coach is part-owner of a string of car dealerships located in four states throughout the Southern U.S. called the Dream Motor Group. In 2019, Saban’s $8.7 million salary was second in the country behind only the $9.3 million pulled in by Clemson’s Dabo Swinney. There were a few lulls throughout the game (…). Welcome to Roll Tide Wire's European Union Experience. “I’m proud of the way we handled it,” Agresti says. Follow me on Twitter @KristinStoller. The websites for each of Saban’s three Mercedes dealerships feature a dedication to his late father, Nick Saban, Sr. An advertisement on the YouTube page of Mercedes-Benz of Music City features Saban telling the story of his dad’s dream to one day own a car dealership. Show full articles without "Continue Reading" button for {0} hours. “I’m proud of the way we handled it,” Agresti says. Three of Dream Motor Group’s dealerships—in Louisiana, Tennessee and Texas—received $1 million to $2 million in loans. Under Saban’s current contract with the University of Alabama, which expires in 2025, he is being paid $75 million over eight years. From the report: Saban is a partner in Dream Motor Group, which is run by CEO Joe Agresti. These are typically businesses that urgently need the money for payroll, rent and utilities, among other things. But it would have been bad.”. This week, the United State Small Business Administration, which oversees the PPP, released data on the companies that applied for and received loans through the program. ATLANTA, GA - DECEMBER 01: Head coach Nick Saban of the Alabama Crimson Tide reacts after … The Irondale, Alabama, dealership received between $2 million to $5 million, according to SBA data. Saban did not reply to a request for comment. “I don’t know that we would be bankrupt today [if we didn’t take the money]. Agresti adds he hasn’t taken a salary since March. His average contract value is $9.4 million annually. They’ve also continued to pay the roughly 9% of high-risk employees who they instructed to stay home since the pandemic began, he says. Before receiving the PPP loans, Agresti says he decided to transition his dealerships into selling masks to counter the dip in car sales.