CART's Dim Future

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Happy29

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From RacingOne.com

CART reported third-quarter losses of $34.4 million and said if its proposed sale to the new Open Wheel Racing group falls through it probably would liquidate its remaining assets and go out of business.

Open Wheel Racing, formed by three CART team owners, offered $7.4 million -- about 56 cents a share -- in August for all the outstanding stock of the financially troubled Championship Auto Racing Teams.

The deal is expected to be finalized by December, when shareholders vote on the purchase that would lead to the company's de-listing from the New York Stock Exchange.

"If the proposed merger with Open Wheel is not completed for any reason, and if no strategic transaction that is an alternative to the merger is available to us at that time, it is expected that we will be required immediately to cease our operations, wind up our affairs and seek to liquidate our remaining assets," CART said in its third-quarter report.

No other proposal besides the one from Open Wheel is being considered, CART said.

In the third-quarter report, CART listed $18.2 million in revenues -- mostly from sanction and race promotion fees -- for the three months ending Sept. 30. The revenues totaled $18.5 million in the same period last year.

Expenses, however, rose from $32.2 million last year to $53.1 million, with the biggest jump coming in race distributions.

For the first nine months of 2003, CART had net losses of $77.9 million, compared with $13.5 million for the same period a year ago.
 
The sale in all probability will go through with Paul Gentilozzi heading up the group. Combining CART with Trans Am will help both series. The Motorock experiment will be interesting to see if it draws new fans to both series. Of even as much importance is will Motorock bring sponsors to Trans Am. Paul is a smart businessman and he is putting his money on the line in both CART and Trans Am. Like he says, if it fails they will go down swinging.

There is still a little schedule problem with Las Vegas and PIR. Whether they can be ironed out is unknown at this time.
 
Cart will never be the series it was until they the team owners and leaders of the sport go back to their roots. Fans like myself have no desire to root for someone we have no clue who the are. I never heard any of their names until they came to America. In the 80's and early 90's I was a huge fan, but now I could'nt care less. The days of Unser, Foyt, Rayhal, etc... are gone.

Until they support drivers that Americans can identify with CART will die, and the IRL won't be far behind.
 
CART has evolved if u ask me, and is getting stronger and stronger, at least in terms of driver talent and on site attendances. What was it at Mexico? 200,000+ I forget the exact number, now that is big by anyones standards. The series has now moved on Vern as u have pointed out, its now a "World Series" rather than just kept to 1 continent, this can only be a good thing. As for the drivers that are coming over from Europe, I can assure u these guys are top drivers and many of which will be in F1 one day. People linked with the series most recently Bjorn Wirdheim, Tomas Enge, Gorgio Pantano, Guy Smith etc, u havent heard of these people? Well more fool u, Guy Smith won this years Le Mans 24hrs, in most of the worlds eyes one of the biggest races in the world, Tomas Enge also won his class at Le Mans, and has been racing in the ALMS this year with Prodrive. As for Wirdheim hes the International F3000 champion and is every bit as good - if not better than Bourdais. Im sorry but the series is no longer just based in America, and the rest of the world is welcoming CART with open arms. Next year the series will be strong once again I can assure u, America can keep the IRL - like it or not the world is bigger than America. From what I know America is far too closed minded to things like F1, F3000, Le Mans, even soccer, some of u need to realise that America and NASCAR arent the be all and end all of motorsport. Sure NASCAR is important and its a great series - but heh it aint the only series in the world, and there are series which are bigger. Formula 1. The people at CART have finally realised this, and are now expanding as we know, whether or not u or i agree with what they are doing dosent matter, they are doing it. And its working - its more popular now worldwide than it has been for ages. Not in America no, but the world it is. And now the series is beginning to become secure financially too.
 
First of all: Soccer will never take off here in the states because we have so many different sports that have much more excitement in them. NFL being one of them!

I would be willing to bet that Nascar Draws more attendance yearly than F1 does. Heck Nascar Sells out Indy and F1 doesn't and Indy is F1's largest attended race!

Cart does need to have more American drivers in the series. The majority of the races are here in the states and they have virtually no American Drivers right now! Its ridiculous. The American drivers are the best in the world and they all end up going to Nascar because the idiots in Cart won't give them a shot!
 
Originally posted by rajflyboy@Nov 21 2003, 08:41 AM
I would be willing to bet that Nascar Draws more attendance yearly than F1 does.  Heck  Nascar Sells out Indy and F1 doesn't and Indy is F1's largest attended race!
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In America you mean? Yes NASCAR does win that battle because not many people attend the F1 United States Grand Prix which is in Indianapolis anymore, mainly because of NASCAR's booming popularity which has kicked the popularity of IRL, CART and F1 in the pants but only in the United States and F1 besides soccer is the largest sporting venue in the world. Look at how many fans of F1 there are around the world, there are fans in Germany, England, France, Brazil, China, Bahrain, Monte Carlo, Italy, Japan and they sell more tickets yearly than NASCAR can ever imagine

Anyway back on topic. I think if CART can get good TV exposure here in the states like maybe ABC, FOX or NBC then yes I think as time goes on it will be as accepted as NASCAR is, it might even shoot past it in popularity with the right promotion and other whatnot.
 
Anyway back on topic. I think if CART can get good TV exposure here in the states like maybe ABC, FOX or NBC then yes I think as time goes on it will be as accepted as NASCAR is, it might even shoot past it in popularity with the right promotion and other whatnot.
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What channel has CART been on, I do believe it has had premium exposure in the past. The fact is, CART doesn't appeal to the general American anymore. That series gives me very little to identify with.

F1 may be more popular around the world, but the reason is the demographics of drivers a viewers. Just the same as I would'nt expect the rest of the world to be very intrested in NASCAR.

Racing is the same as any other TV show, you have to target the demograghic you want. Look for the IRL to loose popularity just the same as CART if it continues on it's course.
 
If you have noticed CART has been falling the past 3 years while at the same time the IRL has been growing,althought slowly. The IRL will just keep growing the next few years, but will not get near NASCAR stastus.


For Cart its just........... tick...... tock........tick........tock......until its gone for good
 
And I suppose the IRL is just booming eh? :p Keep on dreaming, the IRL is going down, especially in worldwide popularity. CART ratings may be falling in the USA, but worldwide they are getting bigger, CART isnt going anywhere, other than forwards. Sure at the moment its in a bad finincial state but thats going to start to improve when the new ownership comes in, on the driver talent side though things are getting stronger and stronger with ex F1 driver and F3000 ace not to mention sportscar Ace Tomas Enge joining the series hopefully as well as F3000 champion Bjorn Wirdheim, Ive got a list of what we can expect driver wise in CART , at least at the top.

Tomas Enge, Mika Salo, Bruno Junqeria, Sebastian Bourdais, Darren Manning, Paul Tracy, Adrian Fernandez, Oriol Servia, Guy Smith, Bjorn Wirdheim, Gorgio Pantano, Micheal Jourdain JNR, this potential entry is far stronger than what u will find in the IRL. CART is a International series, so yes Vern CART may not appeal as much as it has done in the past to the average American, but it does to the rest of the world and thats why the series is growing in populairty worldwide and is recognised as a stepping stone, or alternative to F1 rather than just another feeder series...
 
I am not saying the IRL is in the best state either but it is growing slowly just as cart is falling. IF they buyout group does not get the deal done soon, like within the next month CART will be gone. If they have not been able to get the deal done in the last few months I doubt a good deal will be made to keep the series running in a few years.

Plus Darren Manning is now with TCGR in the IRL car that Tony Renna was to race next year
 
Strong rumor that WILL happen. CART is going to be the sanctioning body for the Trans Am series and TA will be leaving SCCA as the sanctionong body. Looks like Gentilozzi is gonna hang it all out for both CART and TA. I will be very surprised if the buyout does not go through. I talked with Paul G. about 3 months ago and he was very positive about TA's future at that time. Look for big changes to the TA series in the next 2 years.
 
I read today that the CART opener has been delayed until April, doesn't sound very good.
 
And the hits keep coming.



CART sale off, leaving future less certain


By Steve Ballard
[email protected]
December 4, 2003


The latest turn in the proposed sale of Championship Auto Racing Teams has set the beleaguered series on an even more uncertain course that apparently will leave behind its shareholders.

After an all-day meeting at its local headquarters with the prospective buyers group, CART issued a statement late Tuesday night saying the sale was off under the terms previously announced.

A shareholders meeting had been scheduled for Dec. 19 to vote on the bid of 56 cents a share, or about $7.4 million, that the CART board had accepted in August.

That meeting has been canceled.

The Open Wheel Racing Series group, headed by Gerald Forsythe and including fellow team owners Paul Gentilozzi and Kevin Kalkhoven, chose to exercise an out in its agreement with CART and replaced it with a proposal to "purchase certain assets of the company and assume certain liabilities."

But that would be done only after CART filed for Chapter 11 bankruptcy reorganization. The buyers are counting on then being able to get what they need to keep the series afloat for less than $7.4 million.

CART president and CEO Chris Pook said Wednesday that the new offer is under review.

"The Open Wheel Racing Series proposal will be presented to our board of directors, who will then decide on a course of action," said Pook, who declined further comment.

In its statement, CART said it no longer can offer assurance that "any transaction will result in any payments to stockholders."

None of the buyers group returned phone calls Wednesday. In a statement, Gentilozzi said he and his partners remain optimistic about racing in 2004 and beyond.

"While OWRS is disappointed that the previously announced transaction appears no longer feasible," he said, "it remains committed to the CART racing series."

OWRS was able to withdraw its earlier bid because one of the conditions of the sale was that CART maintain its car count at the level required by many of its sanctioning agreements with racetracks and promoters.

CART consistently fielded 18 cars this season, but many got through the year only because they were being subsidized by the company.

CART went through more than $80 million in 2003, much of it in direct payouts to the teams.

With a relative few of its current teams having sufficient sponsorships, CART's statement conceded the "material adverse effect" clause in its agreement with OWRS could not be satisfied because it expects a "net decrease in the number of teams planning on participating in 2004."

With no other prospective buyers, CART's only apparent alternative beyond continuing to negotiate with OWRS is to cease operations and sell its assets.

Indy Racing League spokesman John Griffin said he could not speculate on whether the IRL would be interested in taking over any of CART's venues in the event the series folds.

"All I can do is remind you that in August we advised our manufacturers and teams to have update kits ready for the possibility of going road-course racing in 2004," he said.

CART has become predominantly a road-racing series while the IRL has run nothing but ovals since its inception in 1996.

The announcement was the latest in a series of jolts for CART since Paul Tracy clinched the 2003 championship Oct. 26 in Australia.

The scheduled season finale the next week at Fontana, Calif., had to be canceled because of the wildfires that ravaged the area.

California Speedway officials then sued CART for repayment of the sanctioning fee. The matter remains in litigation.

Earlier this week, CART announced postponement of its scheduled 2004 opener Feb. 22 at St. Petersburg, Fla. And on Tuesday, Stefan Johansson announced his resignation as director of the American Spirit team that fielded cars for Jimmy Vasser and Ryan Hunter-Reay, the only U.S. drivers in the series.
 
Originally posted by PettyBenson@Nov 24 2003, 04:54 PM
I am not saying the IRL is in the best state either but it is growing slowly just as cart is falling. IF they buyout group does not get the deal done soon, like within the next month CART will be gone. If they have not been able to get the deal done in the last few months I doubt a good deal will be made to keep the series running in a few years.

Plus Darren Manning is now with TCGR in the IRL car that Tony Renna was to race next year
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Flame!
 
IRL,CART.One is unsafe at any speed(IRL) the other drives , not races, on streets. Hmm no wonder no one watches.
 
I'd really like to see Cart go away and some or most of the teams be absorbed by the IRL. I think it would be good for open wheel to have only 1 sanctioning body. Also increased car counts in the IRL would be cool too, instead of the 22 or so they have now 30-36 would be nice.
 


The Champ Car World Series is alive, if not yet entirely kicking, following a successful conclusion to the protracted negotiations between Championship Auto Racing teams [CART] and Open Wheel Racing Series [OWRS] which ensures that racing continues into 2004.

When it was first announced that CART was in financial trouble, OWRS - a consortium headed by team owners Kevin Kalkhoven, Gerald Forsythe and Paul Gentilozzi - offered to buy up its publicly-held stock for 56 cents a share -realising a total outlay approaching $5million. However, as doubts set in that the series would be able to muster sufficient cars to meet 2004 promoters agreements, the offer was withdrawn, with OWRS proposing that CART file for Chapter 11 bankruptcy instead.

The new deal, agreed at an emergency meeting last night [15 December], will see OWRS purchase all contracts with promoters, sponsors and teams, while CART applies for bankruptcy. As a result, OWRS now needs only the consent of the bankruptcy court to purchase CART assets, instead of full - and possibly unobtainable - shareholder approval.

"Open Wheel Racing Series has completed its negotiations with CART Inc and Championship Auto Racing Teams Inc to purchase specific assets, including contracts with promoters, sponsors, and teams, through the planned Chapter 11 bankruptcy process of CART Inc," confirmed an official statement issued by the new 'owner', "This agreement allows for the continuation of the 2004 Champ Car World Series season."

Although the scheduled season opener in St Petersburg, Florida, has been postponed indefinitely to allow both OWRS and the competing teams more time to prepare for what, at one time, seemed an unlikely season, all parties will now work towards getting the show on the road in time for the annual trip to Long Beach.

"Open Wheel will begin the immediate planning and implementation of the operational details required to conduct the Champ Car World Series in 2004 as the closing of the transaction continues," the statement continued, "The closing of the transaction is subject to certain closing conditions including the approval of the bankruptcy court."

Gentilozzi, who only joined the CART-run championship last season with his Rocketsports team, said that he and his partners wanted to repay the fortitude of those who stood by the series in its darkest days.

“Our goal throughout this process was for an expedient resolution so our teams and sponsors could proceed with full confidence,” the former Trans-Am racer explained, “We're extremely grateful to all of the sponsors, teams, promoters, and fans that have expressed their ongoing encouragement. Their loyalty has been phenomenal - they've stayed with us throughout this initiative and have supported us at every turn.

“Effective immediately, we're ready to begin work to implement our vision for Champ Car in 2004 - and for many seasons beyond. Our purchase was with the express intent of supporting our teams and sponsors competing now and in the future.

“Therefore, as a show of strength and good faith, Open Wheel has accepted the liability of almost $2.7million in 2003 prize monies, which we will pay to our teams that elect to participate in the 2004 Champ Car season."

Asked about the reported dearth of entries for next season, Gentilozzi expressed confidence that the overnight announcement would prompt more teams and drivers to commit to the series for 2004.

“There's been a great deal of speculation about car count for next year,” he admitted, “but we talk to our teams on a daily basis and we're more than confident that we'll have a full field of cars in 2004. In addition, we anticipate new team and driver announcements in the very near future.”

Kalkhoven, co-owner of PK Racing with former BAR F1 boss Craig Pollock, was instrumental in the acquisition process, and shared Gentilozzi's confidence.

“This was an extremely complex deal,” he noted, “I pride myself in my knowledge and expertise in acquisitions and mergers, but I was surprised by the complexity of the transaction. However, I'm positive the agreed upon format is definitely the correct one - and one which will allow our Series to grow and flourish in 2004 and beyond.”

Forsythe has had a long emotional and financial commitment to Champ Cars, and is convinced that the asset purchase agreement was key to ensure the series' future.

“This was absolutely the right move for the future and longevity of Champ Car,” he commented, “I have every confidence that this decision will prove successful.”

In a related move, Open Wheel nominee Richard Eidswick has been appointed as temporary CEO of CART - in place of former overseer Chris Pook - and will see the organisation through the bankruptcy proceedings.

“I'm confident that the Champ Car World Series will emerge from the bankruptcy process stronger than ever,” Eidswick said, “I look forward to working with all parties involved to build on our strengths and explore new opportunities as we position Champ Car for 2004 and beyond.”

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Good to hear that CART will go ahead next year! :) - Well good for Champ car fans anyway. :p Would appear that the World's 2nd favourite single seater formula after F1 will continue well on into the future, a few Americans dont like the series but heres a newsflash for ya - the rest of the world does, and the world is bigger. ;) CART aint going anywhere - and neither is Paul Tracy or Junqeria or Bourdais or any other of the top International level drivers that race in the series. Manning moved - big deal, hes nothing special. Didnt do much in CART this year and his F3000 record isnt great either - hes a also ran him leaving the CWS is no great loss.
 
IRL, CART counting cars
Team owners in competing open-wheel series still courting sponsors for the upcoming season.


By Curt Cavin and Steve Ballard
[email protected]ard
December 17, 2003


Paul Gentilozzi and his partners don't yet own the Championship Auto Racing Teams series, but they are confident in their business plan.

Gentilozzi predicts his series will have more cars in 2004 than the Indy Racing League.

Gentilozzi said there will be at least 18 cars at his races when the season opens April 18 in Long Beach, Calif.

"I guarantee it. Absolutely. No hesitation," Gentilozzi said. "We're confident right now we've got more cars committed to a full season than our competition."

A survey by The Star shows the IRL with more confirmed cars at this point, 18 to 13. But many deals for both series won't come together -- or be abandoned -- until next month at the earliest.

Several CART teams are waiting to see how the bankruptcy reorganization unfolds. It is possible some will choose to switch to the IRL, which begins its season Feb. 29 in Homestead, Fla.

"Right now we've still got one (car in CART) and one (in the IRL)," said Tom Anderson, co-owner of Fernandez Racing. "But our main concern is what happens to CART. We'll have to see how it shakes out."

Gentilozzi's group, the Open Wheel Racing Series, is co-owned by Gerald Forsythe and Kevin Kalkhoven. They need 18 cars to fulfill current race contracts.

If CART/OWRS survives in 2004, roughly one-third of the cars are expected to come from the new owners, with each fielding a minimum of two cars. That would represent a gain of two cars from 2003 since Gentilozzi's Rocketsports Racing and Kalkhoven's PK Racing were one-car operations. Forsythe was a two-car team last season.

Also solid for 2004 are Newman-Haas Racing and Herdez Competition with two cars each. Team Rahal is set with Michel Jourdain Jr., and Fernandez Racing is likely to be back with owner/driver Adrian Fernandez. Series newcomer Carl Russo is set to enter a car for Toyota Atlantics champion A.J. Allmendinger. That gives CART 13 cars.

Derrick Walker is also likely to be back with at least one car.

Pat Patrick, a CART mainstay since he co-founded the series in 1979, might not return, but he is negotiating to sell the operation to Emerson Fittipaldi, who will stay in CART. Dale Coyne and Eric Bachelart are possible returnees if they find funding. Gentilozzi said he has had inquiries from a couple of teams waiting until the ownership is finalized.

Everything might hinge on money. Walker, who has received more than $6 million from CART in 2003, said several teams will be borderline if OWRS doesn't help support them. Gentilozzi has been firm in saying teams won't get the subsidies CART gave in 2003.

The IRL has 18 confirmed programs at this point, with several strong possibilities for more.

Andretti Green Racing announced Tuesday it will field a car for Bryan Herta, bringing its total to four entries. There also will be two each from the Penske, Ganassi and Panther teams. Eddie Cheever's team has announced one car but is a strong bet to field a second (for Ed Carpenter).

The teams with deals for one car are Kelley Racing, Team Rahal, Mo Nunn Racing, Super Aguri Fernandez Racing, Dreyer & Reinbold Racing, Access Motorsports and A.J. Foyt Racing.

With Patrick positioned to possibly move to the IRL, additional cars could come from Hemelgarn Racing, PDM Racing and second entries from Nunn, Kelley and Access. Chevrolet is hoping to find a seat for Sarah Fisher, and Felipe Giaffone should have enough sponsorship to land a ride. Honda is interested in additional cars.

"I think we're looking at 18 solid and 23 based on things I know that are going on," Chevrolet program director Joe Negri said. "But a lot of sponsorship programs are up in the air and of course everyone is waiting to see what happens with CART."
 
Originally posted by SALEEN S7R@Dec 16 2003, 10:13 AM


The Champ Car World Series is alive, if not yet entirely kicking, following a successful conclusion to the protracted negotiations between Championship Auto Racing teams [CART] and Open Wheel Racing Series [OWRS] which ensures that racing continues into 2004.

When it was first announced that CART was in financial trouble, OWRS - a consortium headed by team owners Kevin Kalkhoven, Gerald Forsythe and Paul Gentilozzi - offered to buy up its publicly-held stock for 56 cents a share -realising a total outlay approaching $5million. However, as doubts set in that the series would be able to muster sufficient cars to meet 2004 promoters agreements, the offer was withdrawn, with OWRS proposing that CART file for Chapter 11 bankruptcy instead.

The new deal, agreed at an emergency meeting last night [15 December], will see OWRS purchase all contracts with promoters, sponsors and teams, while CART applies for bankruptcy. As a result, OWRS now needs only the consent of the bankruptcy court to purchase CART assets, instead of full - and possibly unobtainable - shareholder approval.

"Open Wheel Racing Series has completed its negotiations with CART Inc and Championship Auto Racing Teams Inc to purchase specific assets, including contracts with promoters, sponsors, and teams, through the planned Chapter 11 bankruptcy process of CART Inc," confirmed an official statement issued by the new 'owner', "This agreement allows for the continuation of the 2004 Champ Car World Series season."

Although the scheduled season opener in St Petersburg, Florida, has been postponed indefinitely to allow both OWRS and the competing teams more time to prepare for what, at one time, seemed an unlikely season, all parties will now work towards getting the show on the road in time for the annual trip to Long Beach.

"Open Wheel will begin the immediate planning and implementation of the operational details required to conduct the Champ Car World Series in 2004 as the closing of the transaction continues," the statement continued, "The closing of the transaction is subject to certain closing conditions including the approval of the bankruptcy court."

Gentilozzi, who only joined the CART-run championship last season with his Rocketsports team, said that he and his partners wanted to repay the fortitude of those who stood by the series in its darkest days.

“Our goal throughout this process was for an expedient resolution so our teams and sponsors could proceed with full confidence,” the former Trans-Am racer explained, “We're extremely grateful to all of the sponsors, teams, promoters, and fans that have expressed their ongoing encouragement. Their loyalty has been phenomenal - they've stayed with us throughout this initiative and have supported us at every turn.

“Effective immediately, we're ready to begin work to implement our vision for Champ Car in 2004 - and for many seasons beyond. Our purchase was with the express intent of supporting our teams and sponsors competing now and in the future.

“Therefore, as a show of strength and good faith, Open Wheel has accepted the liability of almost $2.7million in 2003 prize monies, which we will pay to our teams that elect to participate in the 2004 Champ Car season."

Asked about the reported dearth of entries for next season, Gentilozzi expressed confidence that the overnight announcement would prompt more teams and drivers to commit to the series for 2004.

“There's been a great deal of speculation about car count for next year,” he admitted, “but we talk to our teams on a daily basis and we're more than confident that we'll have a full field of cars in 2004. In addition, we anticipate new team and driver announcements in the very near future.”

Kalkhoven, co-owner of PK Racing with former BAR F1 boss Craig Pollock, was instrumental in the acquisition process, and shared Gentilozzi's confidence.

“This was an extremely complex deal,” he noted, “I pride myself in my knowledge and expertise in acquisitions and mergers, but I was surprised by the complexity of the transaction. However, I'm positive the agreed upon format is definitely the correct one - and one which will allow our Series to grow and flourish in 2004 and beyond.”

Forsythe has had a long emotional and financial commitment to Champ Cars, and is convinced that the asset purchase agreement was key to ensure the series' future.

“This was absolutely the right move for the future and longevity of Champ Car,” he commented, “I have every confidence that this decision will prove successful.”

In a related move, Open Wheel nominee Richard Eidswick has been appointed as temporary CEO of CART - in place of former overseer Chris Pook - and will see the organisation through the bankruptcy proceedings.

“I'm confident that the Champ Car World Series will emerge from the bankruptcy process stronger than ever,” Eidswick said, “I look forward to working with all parties involved to build on our strengths and explore new opportunities as we position Champ Car for 2004 and beyond.”

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Good to hear that CART will go ahead next year! :) - Well good for Champ car fans anyway. :p Would appear that the World's 2nd favourite single seater formula after F1 will continue well on into the future, a few Americans dont like the series but heres a newsflash for ya - the rest of the world does, and the world is bigger. ;) CART aint going anywhere - and neither is Paul Tracy or Junqeria or Bourdais or any other of the top International level drivers that race in the series. Manning moved - big deal, hes nothing special. Didnt do much in CART this year and his F3000 record isnt great either - hes a also ran him leaving the CWS is no great loss.
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Yes indeed - great news! :D
 
Getting curious in the demise of CART.

First, while two of the Open Wheel Series principals have been long time participants, Gentilozzi is a johnny come lately, and has emerged as the spokesman after only a tentative and unproductive year in the series. Not a lot of relevance, but just an observation.

Second, OWS drove CART into bankruptcy and is scheduled to try to buy the assets Jan. 28, which would enable them to start a series at Long Beach. The assets mainly are the contracts with race tracks and promoters (many are now in dispute based on past CART ill deeds, the bankruptcy (or both). There is NO TV contract, which makes the assets pretty modest pickings. There are no substantial teams, especially what with the winning Team Green having lost their sponsor, Players, in the Canadian anti-tobacco activity. While the OWS trio probably hoped to pick up the assets for bargain basement prices, there are constant rumors that IRL would use their deep pockets to buy them out, thus killing any competition in the sluggardly open wheel racing. They have configured their '04 cars for road racing this year, and a few venues like Laguna, Road America, Cleveland and Mid-Ohio would give IRL credibility and more fans.

Finally, ISC has been inquiring about bidding, and their interest seems to be more than the mere rumor of IRL involvement. The Frances and Penske have had long good relations with Tony George, and may want to become a force and broker in the open wheel racing. Remember that NASCAR once had an open wheel series, and now they are the force behind the most viable road racing series and has promoted spec cars like the Daytona Prototypes.

All bids have to be registered on Jan 23. Looks like more than Daytona testing will be in the news.
 
Autoweek
IRL could buy CART assets


Indy Racing League officials confirmed the rumor the league is looking at entering a competing bid to buy CART's assets. "We're a racing company, and they have racing equipment for sale," an official said. He added that a decision will be made on or before the Jan. 23 deadline for alternative bids (AW, Jan. 12).
What kind of "equipment" might the league be interested in? In addition to things such as pace cars and technical equipment, the league might specifically be interested in road-racing sanctioning agreements. Many IRL team owners are in agreement that the league needs to go road racing sooner rather than later. CART holds races in Long Beach, Canada and Mexico, all places the IRL feels it needs to be.

The IRL has not budged publicly on its statement that it hasn't found the right road-course opportunity yet. But with Elkhart Lake officials balking in court at the CART moves, it is fair to say the Road America course is, like Mid-Ohio, one of the leading candidates for a fall race this season. The IRL's new chassis update kit includes road-course pieces
 
ESPN
IRL examining rival's assets
Associated Press


INDIANAPOLIS -- The Indy Racing League might bid on the assets of CART, throwing a proposed sale of the bankrupt, open-wheel-racing series into question.


IRL spokesman Fred Nation confirmed Monday night that representatives of the series began examining CART's equipment and contracts Friday, but the IRL will not decide for several days yet whether to bid on any of the assets. A bankruptcy judge has set Jan. 23 as the deadline for bids.


CART has an agreement to sell all of its assets, including equipment and sponsorship contracts, to Open Wheel Racing Series LLC for $1.6 million in cash. Because the proposed sale also calls for Open Wheel to assume some liabilities, including 2003 prize money owed to teams, the total purchase price would be about $3 million.


If bids other than Open Wheel's emerge, it could force an auction of CART assets on Jan. 28.


Some of CART's physical assets, such as scoring and safety equipment and trailers, are similar if not identical to those used by the IRL, so it was "only natural" the IRL would be interested in possibly bidding on those assets, Nation said.


CART and IRL signed a confidentiality agreement Thursday allowing the latter to inspect the bankrupt series' assets, Nation said.


Asked if the IRL might make a bid that would bring the CART series into the IRL organization, Nation said it was too early to tell.


"Until we know what the situation is with the assets, and what exactly is contained in the assets, and what strings are attached to the assets, we cannot say what we will bid on, if anything at all," Nation said.


U.S. District Judge Frank J. Otte approved a CART bankruptcy plan that set the Jan. 23 deadline for bids. CART had filed for Chapter 11 bankruptcy protection last month as part of the sales agreement with Open Wheel, which like CART and the IRL is based in Indianapolis.


If any alternate bids for CART's assets emerge, they could be considered during an auction Jan. 28. Without any qualifying bids, Otte could approve the sale to Open Wheel that day.


CART and Open Wheel Racing agreed to sale terms before the bankruptcy filing in hopes of making a quick Chapter 11 exit in advance of the 2004 racing season. Open Wheel's principal owners -- Gerald Forsythe, Kevin Kalkhoven and Paul Gentilozzi -- said Dec. 17 that they could quickly bring the series out of bankruptcy and run a 2004 season with at least 15 races and at least 18 cars


Looks like Open Wheel Racing got too ****y with a low bid and could end up resulting in Tony owning everything.
 
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