Kalkhoven wants to buy Long Beach

[Tailwind]

"Champ Car co-owner Kevin Kalkhoven may have found a simple - and expensive - way to secure his series’ marquee event, as the Long Beach Press-Telegram reports the Australian businessman has made a proposal to buy the Grand Prix Association of Long Beach from Dover Motorsports."

For the rest of the article:
http://www.speedtv.com/articles/auto/champcar/16828/

[rustyfan]

The good thing about it: It would put an end all the crap that has been going on lately.

The bad thing about it: It would keep cars racing at Long Beach. I say build a mall on top of it and put it out of its misery.

[D.R.T.]

A very profitable misery

[rustyfan]

Originally Posted by D.R.T.

A very profitable misery

It could be the single biggest sporting event in the world with 900000 spectators and a TV-rating double that of the World Cup soccer final and I would still dislike the current layout.

[Snrub]

This could be a very nice move. I'm starting to get the feeling that KK/GF's control of so much is going to start paying big dividends. They're becoming powerful enough that I think it will help the series find new opportunities.

Originally Posted by rustyfan

It could be the single biggest sporting event in the world with 900000 spectators and a TV-rating double that of the World Cup soccer final and I would still dislike the current layout.

What really ruined it for me was all the competitive passing that happened this year. I wanted to see a parade or passes occuring on much slower cars.

[2112]

Now all KK needs is to buy a track with a home race and his good to go!

[rustyfan]

Originally Posted by Snrub

What really ruined it for me was all the competitive passing that happened this year.

Two proper passes for the lead and a handful of others further down the field, all of them coming in turn one (as far as I can recall, from the confused tv-coverage)... Yup, it was like Dijon 1979 all over again in terms of excitement...

Originally Posted by Snrub

...or passes occuring on much slower cars.

You mean like when you activate the boost button to make your car faster than the one you're trying to pass...?

[BootsOntheSide]

Two proper passes for the lead is quite a lot for any form of non-oval racing these days. Certainly Long Beach is one of the great spectacles in racing, although I agree that it's no longer as good as it was, and arguably loses some of its individuality through ahvign recieved widescale changes in recen years.

[Flatspot]

Good for Kalkhoven. He is the guy (at least money wise) Champ Car needs to keep everything rolling. I'd love to see him buy Long Beach, not for the venue but rather for the income it produces (and I assume this race does) to bouy up the series.

I'm not sure where I read it but in the last couple of days I read a quote where he made the comment "I have the money to run Champ Car forever". It's good to have pockets that deep. I wish I did.

[sgw2]

The asking price is rumored to be $30 M.

Kevin Kalkhoven has surprised me in how much he has spent on CCWS so far. Not all of it is obvious. Things like Canary Fund underwriting San Jose, and funding the "money" men of Team Australia, for example, don't show up on any OWRS or CCWS team books. I must say it does raise my eyebrows, both the amount of cash and the money laundering techniques employed to make it look like its coming from other sources.

Whatever, he has spent a small fortune and may spent a few more. It would not surprise m if he doesn't end up buying it. KK has quite a little empire now.

[mac]

Originally Posted by sgw2

.... and funding the "money" men of Team Australia, for example....

He didn't fund the "money men" of Team Australia. Mr Gore and Mr Fish are independently wealthy businesspeople that wanted to get involved in Champ Car for various reasons.

KK merely facilitated the deal with Walker.

[Snrub]

PT messed up and got passed - a pass due to error is still a pass, PT takes Junquiera, PT takes Vasser (albeit I wouldn't call that competitive), Bourdais takes PT. Of course there were others further back where similar speed cars swapped position. The bottom line is that things are improving. It's not necessarly the layout that's the problem. Go back to 1999-2001 where virtually every track had an insain number of passes. It was so volitile that the 2000 and 2001 championships had lots of people in the hunt to the end. It wasn't a matter of 1999 or 2003 or 2004 where one driver dominated and reliability was the reason it was close, multple drivers had fought like heck and were there to the end.

[D.R.T.]

Originally Posted by sgw2

The asking price is rumored to be $30 M.

I read in the speed article the runoured figure was closer to 20 M.

Originally Posted by sgw2

Funding the "money" men of Team Australia, for example, don't show up on any OWRS or CCWS team books. I must say it does raise my eyebrows, both the amount of cash and the money laundering techniques employed to make it look like its coming from other sources.

Where of where did you get this story from.

[dubby99]

Originally Posted by rustyfan

It could be the single biggest sporting event in the world with 900000 spectators and a TV-rating double that of the World Cup soccer final and I would still dislike the current layout.

Whats wrong with the current layout??

I know it's not one of the best street layouts in racing but a track is a track and LB is LB which has it's own features which gives a unique challenge to drivers that race on it.

I think from a drivers veiw it's a great track but from a fans point of veiw it might not be a layout that tickles your fantasy.

Anyway..... i like it

[mueber]

It's good to be rich.

Makes me think I may have to work out a way to be at Long Beach next year if this goes through. A trip to LB involves more money than I care to spend, but no one in all of auto racing deserves my support more than Kalkhoven.

[racerkeke]

mueber, mortgage the dog if you have to but come to Long Beach. It is a heck of a lot of fun, and I should have gone for the first time much sooner than I did. Flights from Chicago to LAX are cheap cheap, or try Alaska and see if you can get a Chicago-Long Beach (yes, it has an airport) flight. Hotels are inexpensive outside of Long Beach itself but book early, like January for the April race weekend. Post a query on the Trackside forum or this one in January and you'll get lots of help doing it on a shoestring -- just like most of the rest of us.

Besides, in April it can still be snowing in Indiana. I get a nice start to my "flagger's tan" at LB every year.

keke

[Amar7605]

For someone who is a regular patron to LB, I can tell you that it is one heck of an experience! Mueber, if you are blessed with a chance to come I guarantee that you will not be disapointed!

I was thinking about this, and two things are curious to me:

1) Why would Dover sell LB if it makes money for them?
2) Can KK get sponsorship for the race in case the Toyota dealers don't want to sponsor the race anymore?

[StickShift]

Originally Posted by Amar7605

1) Why would Dover sell LB if it makes money for them?

Probably because Kalkoven's cheque might be more than several successful years worth of profit.

[racinthestreets]

I like it. Toyota Dealers will benefit as they do now - I do not think they will cancel just because KK owns the race until 2010. I think a better move would be to buy Dover Motorsports and bring back the ovals. Of course, it ain't my money.

[Amar7605]

Originally Posted by racinthestreets

I think a better move would be to buy Dover Motorsports and bring back the ovals. Of course, it ain't my money.

In this case we're talking billions!

[Fogelhund]

Originally Posted by Amar7605

In this case we're talking billions!

Billions?

The number of shares in both classes outstanding is 40,301,611, according to their 10K filed December 31, 2004.

Last trade was $5.91. Let's suppose a generous premium was offered... say $7... so just North of $280,000,000 which is just a little less then billions, but more then the 20-30 mill people are suggesting is being offered for Long Beach.

This suggestion that KK is trying to buy the event certainly is interesting.

[mountainstar]

Originally Posted by sgw2

funding the "money" men of Team Australia, for example, don't show up on any OWRS or CCWS team books.

What is your source for this? Enquiring minds want to know.

[Amar7605]

Originally Posted by Fogelhund

Billions?

The number of shares in both classes outstanding is 40,301,611, according to their 10K filed December 31, 2004.

Last trade was $5.91. Let's suppose a generous premium was offered... say $7... so just North of $280,000,000 which is just a little less then billions, but more then the 20-30 mill people are suggesting is being offered for Long Beach.

This suggestion that KK is trying to buy the event certainly is interesting.

I was simply trying to make a symbolic point

[N I Tram]

$300 million is a lot of money, and presumably KK does have it spare. It would surely easily take 7-10 years to recoup that in itself. The main advantage to KK would be to ensure that ChampCar retains its marquee event, and the IRL doesn't steal it. Considering how much some ChampCar fans have complained about ISC tracks moving to the IRL, it would be slightly ironic for them to celebrate this deal, but it would be a smart business move.

[Snrub]

Originally Posted by Amar76051

Why would Dover sell LB if it makes money for them?

Companies sell assets or themselves all the time. Where I live there was a GM Defense plant that produces the LAVs we hear/see so much about. GM landed a very lucrative contract with the US gov't, the best in many years and then sold the division/plant off to General Dynamics. GM has been in a downhill slide for a long time, but the GM defense division was a cash cow. They decided they wanted to focus on their core business and that selling the division at its most profitable period was the time to do it.

Perhaps Dover feels there is risk involved being involved with CC races and wants to get out of it for a reasonable price. Perhaps they want to focus on their core business, which isn't CC races.

I'm not a business expert, but I tend to agree with your core reasoning. I don't get why companies today are so "core business" focused. In my mind if they're able to do something well and profitably (see above GM example) they should continue to do it. Everyone seems convinced that you have to be a huge force in a business or there's no point in being involved, which I'm not sure is always valid.