Open Wheel Racing Series To Acquire Championship Auto Racing Teams

[dirtfan]

Vaanni controls 2.2 m, the brilliant minds at Fidelity purchased about 3 mil just this year for about $3. These people are stock broker types, about all they know about CART is what they saw in that godawful movie w/Stallone. They got lots of lawyers, lawyers love to sue (looks good on their resume's), I don't think we've seen the last of this soap opera. Hate to see CART die like this due to their unbelievable mis-management, going back to Andrew-don't-call-me-Andy Craig, gives all racing (except maybe NASCAR) a black eye!

[MLM]

ROFLMAO, Liz (inre: "supine" and "the Horse's Head")!
I hope things work out with this deal. Personally, I just want things over and done with (in a positive manner, of course ) and that we can get on with the IMPORTANT matters.

*sigh* We still have another 2 weeks to go until the next race.

[Flatspot]

Originally posted by dirtfan

the brilliant minds at Fidelity purchased about 3 mil just this year for about $3. These people are stock broker types, about all they know about CART is what they saw in that godawful movie w/Stallone. They got lots of lawyers, lawyers love to sue (looks good on their resume's), I don't think we've seen the last of this soap opera.

Sorry dirtfan but you don't know what your saying about FMR Corp. (Fidelity Investments). I can catagorically say that not knowing any more about what they are investing in than what they saw in a movie is false. I worked for them for 7 years and I have firsthand knowlege working directly with the senior portfolio managers and securities analysts of how they do their research and select their investments for specific porfolio's and also how they place hedge positions when they take high risk moves. That is not to say that they always make the right move, they don't, but they do understand what risks they are taking before thay take them and place their securities in portfolios that are designed to handle the risk. They aren't in the business of suing people if they make a high risk investment for a high risk portfolio and lose.

The subject of Fidelity is however an interesting topic in that they have the ability to scrutinize the transaction and decide if accepting $.56 is the right thing to do and Pook is accurate that it makes more sense to accept the deal than liquidate. Also keep in mind that Bear, Stearns is advising C^RT and you'd be mistaken to think Bear and Fidelity are not talking. It actually gives me some comfort to know that there is a single shareholder out there large enough to, in effect, nullify Vannini's vote all by themselves.

[Snrub]

Good quote from Vasser saying he'd like to stay involved. He's the sort of guy who I'd like to see running a team when he retires, say in a few years or something. It's somewhat specualtive to say he'd do a good job, but he seems to be a team player and the patient sort who who do things right.

[Muzza]

Originally posted by Snrub
Good quote from Vasser saying he'd like to stay involved. He's the sort of guy who I'd like to see running a team when he retires, say in a few years or something. It's somewhat specualtive to say he'd do a good job, but he seems to be a team player and the patient sort who who do things right.

I for one would love to see that happening too, Snrub.

Vasser is one of the nicest persons I have ever met in a racet rack.

Cheers,

Muzza

[The Snout]

Originally posted by indycool
That $25 million apiece figure, I believe, is in error. The paperwork so far limits their investment, after the sale goes through, to $15 million total with an option to liquidate on Feb. 28, 2005.

It says here that the 15 million is only initial after the Acquisition. Initial by definition would suggest that there is more available beyond the 15 million.

"The Reporting Persons’ first priority for CART is to stabilize its financial outlook. Members of Open Wheel Racing have committed initial additional funding of $15,000,000 by Open Wheel Racing after the Acquisition; this commitment would enable Open Wheel Racing to provide additional funding to CART. "

http://www.shareholder.com/cart/Edga...1972&SID=03-00

[Roxygen]

What is the history on this person whose name keeps coming up in threads?

It seeems to me that one cannot understand CART without understanding this conflict between Vanini & Pook.

Does this have something to do with the IRL and why CART cannot use the title "Indy"??

Please enlighten me.

[Flatspot]

Jonathan P. Vannini is a private investor and the third largest shareholder in C^RT. Forsythe is #1 at 22.9%, FMR Corp. #2 at 9%+ and Vannini at 8%+ He has a history with C^RT and other companies he has invested in where he aquires large holdings in a company and then uses this power to, let's say, stir the pot.

It is Vannini who put pressure on to fire the then existing CEO, Joe Heitzlier, and replace him with Pook. Now we get to a point where Vannini has lost a ton of money and is obviously not happy. If he follows the same pattern he has with other companies in which he has invested and lost money, it is likely that he will file or threaten to file legal action to help his own cause. This situation has nothing to do with the IRL.

That's the short answer and I hope it helps you understand a little better.

[f1manoz]

Finally the wheels are turning in this sorry saga of ownership. But now that CART has been bought, perhaps the naysayers can now SHUT THE **** UP!

Let's get back tot he racing.

[GP Racer]

[QUOTE]Originally posted by The Snout
[B]Open Wheel Racing Series intends to fulfill its commitment to these fans by keeping Championship in its current format of ovals, road races and street courses. It is our intention that Championship will be the premier open wheel racing series of the Americas. We will also take the opportunity of continuing successful overseas programs such as Surfers Paradise in Australia.”


I know this is going to sound like a naive question, but I have to ask it. Why would Gentilozzi and company want to buy this series that lost about what, $60 million this year, and then invest about 15 - 25 million of his own money into it, and not change the formula of how the series is run? Don't get me wrong, I'm glad to hear that, but how do they plan to make money when Pook couldn't without some big changes? To me, it sounds like quite a gamble.

I'm soooo confused! :confused: :confused: :confused:

[indycool]

Good perspectives Snout and Flatspot. Good question, GP Racer.

[Jay]

I don't know, why would he start a racing team either? Why would he acquire Trans-Am? Why would Paul Newmann buy a racing team? Why would David Letterman and Bobby Rahal?

Seriously, not being sarcastic, just saying that people don't usually go into racing looking to make money. It doesn't happen that often, and someone who's expecting to hasn't payed attention to their history. Some poeple make money in racing, but most just lose a lot... that's racing, you don't come here if you want to get rich. He may be one of the richest men in racing, but I'm not sure there is an individual that has lost more than the many himself, Cart's sworn enemy, Tony George.

[Liz]

Agrey with Jay -- what you seem to be asking is "Why wouldn't he spend his money on what I would buy and do it the way I would do it?"

Isn't it a good idea not to leap in and make wholesale changes until you've got the ship upright and under way?Why not wait and see what their ideas are when they come out with ideas?

[Tailwind]

I'm not so sure that they want to change the format or formula of racing that Pook has been promoting. Yes, CART has lost lots of money this year, but changing the product may not be what they have in mind. I expect a shorter schedule next year as much as I hate that. I know a racing league isn't exactlly like a corporation, but a lot of times the company tries to maintain their product and change the way they go about producing the product. They cut staff and any waist that they can. They cut the underperforming sectors, that's why I think we will loose a few races next year. They concentrait on the core strengths and try to rebuild. I work for a company that has been operating at a loss for two years. There have been a lot of internal changes and we are on track to turn a modest profit next year. We still have the same product line. Aside from one guy loking out for himself and not the common good, I think there are a group of very careful,inteligent, and wealthy people who like racing and are working to keep CART alive and make it thrive.

[Flatspot]

I think Tailwind hit it, particularly with getting back to the core stengths. It's not the product. The product is a proven winner. It's how the product is managed.

[macdaddy]

Over 15% of outstanding shares traded hands on Thursday.
2,311,900... to be exact.
Major moves made shortly after 1PM, again at 2PM.

[climb]

Making money may be not the most exact vision, but setting up a team and purchasing a series are operations that cannot be mistaken for one and the same.
If you run a squad, well, you collect your budget and move by consequence; at the end of the season you''l find out you have spent all the funds, and. maybe, something more from your personal pocket, but not much more.
In the second case the global economic involvement is uncomparably higher, and you risk to lose 10 times more than you invested, which could drive your personal life on his knees, unless you are as rich as TG.
Such a big commitment must be undertaken aiming at making money, because you set up an estabilishment that has to maintain itself, to be able to honour big contracts with big counterparts (engine manufacturers, tv channels, etc), etc.
Thus IMHO, the reasoning of GP Racer is much more realistic that the one of Jay and Liz (with max respect, though)

[GP Racer]

Originally posted by Jay
I don't know, why would he start a racing team either? Why would he acquire Trans-Am? Why would Paul Newmann buy a racing team? Why would David Letterman and Bobby Rahal?

Seriously, not being sarcastic, just saying that people don't usually go into racing looking to make money. It doesn't happen that often, and someone who's expecting to hasn't payed attention to their history. Some poeple make money in racing, but most just lose a lot... that's racing, you don't come here if you want to get rich. He may be one of the richest men in racing, but I'm not sure there is an individual that has lost more than the many himself, Cart's sworn enemy, Tony George.

I know where your coming from Jay, love of racing and CART and all that, and while these guys may not want to get rich from racing, they certainly don't want to lose there shirt either. There is a certain reality that has to be faced, you do need to make some money or at least break even to keep the series alive, and all I'm asking is how do they plan to do that using the same format that almost broke the series in the first place?

I guess myself(and Climb I think) were expecting some new and innovative thinking from these new owners, that's all.
But who know's it's really to early to judge them. I 'm just glad they showed up, and hopefully they can turn this thing around so we can stop talking about the business side of CART.

[gaines]

The thing everyone is forgetting in questioning not changing the format is that this format ruled the racing world in the 90s, Robin Miller said so himself in the article earlier in this string. Read that article again. It wasn't the freaking format that ruined CART it was the idiots in charge.

Fans just didn't say "I hate this, let's watch NASCAR!" They said, "Split?! What the Hell! Where's the best competition, why aren't the best drivers in the INDY 500, what the Hell is the IRL?" After a few years they got sick of infighting, backbiting, bullcrap that saw owners fighting amongst themselves over their own selfish agendas instead of what was best for the sport. In the meantime they saw an upcoming Stock Car series that was unified, raced at Indy now, had the young hotrod open wheel drivers jumping over and saw such big Indy names as Penske, Ganassi and Foyt becoming key team owners. Also NASCAR runs Big Ovals, Small Ovals, short tracks, road courses. They have colorful drivers, a great television package and they are very fan friendly. It's not that much different than what CART was when it was at it's peak. Sure the racing and the cars are very different but the excitement is there, the young hot drivers are there, the Indy Legend names are there(Andretti, Fittipaldi, Foyt, Mears.) Stock Car racing did well on it's own but there is much more Indy influence there than most will stop and recognize.

Why aren't Mears, Fittipaldi, Andretti, Foyt, etc racing in an open wheel car? In fact why are big stock car names like Gordon, Stewart, Newman and Gordon driving around in open wheel cars? Because driving for a bunch of political asses who drove the fans, media and cash away isn't an option. NASCAR had better take a close look and make sure they don't get the big head like CART's BOD did. You **** off the fans, you lose big time and somebody will, guaranteed come along with fast cars and the fans, manufacturers, drivers, owners, sponsors and media will follow. It happened to CART and it's starting to happen to Formula One(That's why they changed the racing rules, and are talking fan friendly for the first time ever.) Racing fans are loyal to no end as long as you give them quality. CART forgot that and it killed them...almost. Pook did a hell of a job running a series with no sponsors. If he had sucked as bad as his predeccesor we'd have folded a year ago. Now let's hope the new owners will do what's right and get back to quality.

It wasn't the format that sucked my friends, it was the people. Now let's make some good decisions, get some more manufacturers in here, get a new engine, some new sponsors and a business gameplan that's thought out and long term. Let's act like we've got some sense, by God, and get back to hard racing.

Long live CART!

[Snrub]

The reason I don't think there will be huge changes is because they're not doing much that is actually wrong. Few stratagies can turn a massive loss into a profit overnight. Denver is a perfect example. Last year it was a big loss. This year it was a reduced loss, a much better race and I think more fans and new local sponsors. The point is that it cost money to start the event and it takes a while to turn a race into a success. Montreal was a success right away because there was a fan base and two drivers from Quebec. Most places are not simply going to be huge overnight.

Certain races may get cut that we as fans enjoy that might make more money (or lose less) than some of the races that will be kept. Those races may not have much potential to grow in the future. That's probably why CART didn't seem to care about RA.

In terms of losses supporting the teams costs money. They are getting themselves sponsors and need less and less Pookfare. Next year there will probably be more drivers, teams, sponsors. There will not be a need for as much subsidization.

[Jay]

I think the only recognizable changes will be a lot less races - Europe will be gone, Fontana will be too, likely Laguna Seca, Mid-Ohio maybe, Road America hopefully not, and maybe more... that said, most of teh season should be on network TV and the rest will hopefully be somewhere other than Speed - not sure about you guys, but it's the last channel on my dial before I get snow.

Other than that, I think everything will stay the same. same cars, same teams, same drivers at the front,

[Snrub]

Laguna and RA are critical to the series to maintain the status of running world class road courses and work towards building TV audiences.

I'm not too upset about Mid-Ohio seeing as I think the course needs SOMETHING to make passing possible.

[Jay]

I'd love to see Cart and ALMS teamup at Laguna Seca - why wouldn't anyone with a car go to that?

[The Snout]

Thing to consider too is if CART goes from 19 races to say 14 then that may translate to costing 20-25% less budget to run the series.
Next year it may be possible to run a car for $4 million or under.
Less exposure because of less races, sure. However with 10 of maybe 14 races on CBS and CART costing 66% less to run than it did in 2002, might find that will be attractive to sponsors. Just some food for thought.

[Flatspot]

I think you right Snout, and the savings could possibly be more than 20-25% as it will be the Euro run that will get axed first and that was a major expense. Hopefully they'll be smart enough to consolidate the races dates so there isn't a month between the first couple of races.