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Indy Racing League president Tony George made "a substantial bid" Thursday to purchase some of the assets of the bankrupt Championship Auto Racing Teams series although details were not disclosed.
Paul Gentilozzi, a partner in another group, Open Wheel Racing Series, which is trying to buy the champ-car series, said George's offer will have to be substantial or he will lose at next week's auction in U.S. Bankruptcy Court.
"I promise you: we're not going to lose this deal," Gentilozzi said Thursday, one day prior to the filing deadline.
George, also the president of the Indianapolis Motor Speedway, declined to comment through his spokesman, Fred Nation.
Nation would not elaborate on his description of the bid as "substantial." But he said the offer was for only "some of the assets." Among the assets are CART's race contracts and equipment, such as a portable hospital.
Some of CART's race promoters and sponsors have balked at the idea of being bought by someone other than OWRS.
"We're confident, based on our research, that there are no legal entanglements on the assets we're bidding on," Nation said.
Gentilozzi and partners Gerald Forsythe and Kevin Kalkhoven, all team owners in CART last season, last month offered $1.6 million in cash. Their group has the opportunity to revise its bid before Judge Frank J. Otte rules Wednesday. Gentilozzi said OWRS will increase its offer, although he wouldn't say by how much.
Gentilozzi predicted the winning bid for all of CART's assets and liabilities will be in excess of $14 million. He based that on the $2.6 million in prize money CART owes teams from 2003, and another $10 million that could go to creditors who might see their contracts dissolved in bankruptcy court if OWRS is not the owner.
The latter figure hasn't been confirmed by Otte, however.
"But what looked like a decent deal (to George) isn't a deal anymore," Gentilozzi said. "What he's looking for is a CART funeral, and all of a sudden it's a real expensive funeral."
All outside bids are due by 9:30 a.m. today. There might also be additional bids arrive before the deadline.
Roger Edmondson, the president of the Grand American Road Racing Series, told The Star on Thursday that his group is considering a last-minute bid. Grand Am could be a serious contender, too, because it is owned by International Speedway Corp., which also owns NASCAR.
Edmondson said Grand Am officials have signed the necessary confidentiality paperwork with CART. He declined to say if a deal would come before the deadline.
Gentilozzi fears ISC and the IRL are working together to thwart the efforts of OWRS, whose officials have vowed to continue the champ-car series this season with a full schedule, a television package and at least 18 competitors.
"That's the 300-pound gorilla," Gentilozzi said of the IRL's established relationship with ISC.
Edmondson said Grand Am would bid by itself, and would not try to help George's IRL, which expects to be road racing by 2005.
"I don't have a dog in that fight, and I don't want to be perceived as having one, either," Edmondson said. "We don't run in those circles, so to speak."
ISC also owns 88 Corp., a little-known group which created a stir at last month's CART bankruptcy hearing when its legal counsel referred to a possible bid. Its officials could not be reached for comment Thursday, and it is unclear whether the group is serious about a bid.
Nation said George has had several opportunities to buy CART since the IRL was created in 1996. But the price was always too high, Nation said, reaching $400 million at one point.
"It's been all over the board," Nation said.
The timing is right now, Nation said, because CART's assets are available in an auction format.
Gentilozzi criticized George's motives. He said OWRS wants to build CART back up, not bury it.
"His vision is clear: He wants to oval race on NASCAR's tracks with a couple of road course races thrown in to satisfy a few sponsors," Gentilozzi said of George. "That's not our vision at all. We want to make CART great again."
Paul Gentilozzi, a partner in another group, Open Wheel Racing Series, which is trying to buy the champ-car series, said George's offer will have to be substantial or he will lose at next week's auction in U.S. Bankruptcy Court.
"I promise you: we're not going to lose this deal," Gentilozzi said Thursday, one day prior to the filing deadline.
George, also the president of the Indianapolis Motor Speedway, declined to comment through his spokesman, Fred Nation.
Nation would not elaborate on his description of the bid as "substantial." But he said the offer was for only "some of the assets." Among the assets are CART's race contracts and equipment, such as a portable hospital.
Some of CART's race promoters and sponsors have balked at the idea of being bought by someone other than OWRS.
"We're confident, based on our research, that there are no legal entanglements on the assets we're bidding on," Nation said.
Gentilozzi and partners Gerald Forsythe and Kevin Kalkhoven, all team owners in CART last season, last month offered $1.6 million in cash. Their group has the opportunity to revise its bid before Judge Frank J. Otte rules Wednesday. Gentilozzi said OWRS will increase its offer, although he wouldn't say by how much.
Gentilozzi predicted the winning bid for all of CART's assets and liabilities will be in excess of $14 million. He based that on the $2.6 million in prize money CART owes teams from 2003, and another $10 million that could go to creditors who might see their contracts dissolved in bankruptcy court if OWRS is not the owner.
The latter figure hasn't been confirmed by Otte, however.
"But what looked like a decent deal (to George) isn't a deal anymore," Gentilozzi said. "What he's looking for is a CART funeral, and all of a sudden it's a real expensive funeral."
All outside bids are due by 9:30 a.m. today. There might also be additional bids arrive before the deadline.
Roger Edmondson, the president of the Grand American Road Racing Series, told The Star on Thursday that his group is considering a last-minute bid. Grand Am could be a serious contender, too, because it is owned by International Speedway Corp., which also owns NASCAR.
Edmondson said Grand Am officials have signed the necessary confidentiality paperwork with CART. He declined to say if a deal would come before the deadline.
Gentilozzi fears ISC and the IRL are working together to thwart the efforts of OWRS, whose officials have vowed to continue the champ-car series this season with a full schedule, a television package and at least 18 competitors.
"That's the 300-pound gorilla," Gentilozzi said of the IRL's established relationship with ISC.
Edmondson said Grand Am would bid by itself, and would not try to help George's IRL, which expects to be road racing by 2005.
"I don't have a dog in that fight, and I don't want to be perceived as having one, either," Edmondson said. "We don't run in those circles, so to speak."
ISC also owns 88 Corp., a little-known group which created a stir at last month's CART bankruptcy hearing when its legal counsel referred to a possible bid. Its officials could not be reached for comment Thursday, and it is unclear whether the group is serious about a bid.
Nation said George has had several opportunities to buy CART since the IRL was created in 1996. But the price was always too high, Nation said, reaching $400 million at one point.
"It's been all over the board," Nation said.
The timing is right now, Nation said, because CART's assets are available in an auction format.
Gentilozzi criticized George's motives. He said OWRS wants to build CART back up, not bury it.
"His vision is clear: He wants to oval race on NASCAR's tracks with a couple of road course races thrown in to satisfy a few sponsors," Gentilozzi said of George. "That's not our vision at all. We want to make CART great again."
