Mo Nunn racing to the IRL

[SevenGrain]

Press Release from Mo Nunn racing:

Mo Nunn Racing To Run Hollywood-Sponsored IRL Entry In 2002
And Field Two Entries at the 2002 Indy 500

INDIANAPOLIS (Oct. 19, 2001) - Mo Nunn Racing announced today that it will
own and operate one full-time entry in the Indy Racing League starting in
2002. The driver of that car will be 2001 IRL Rookie of the Year Felipe
Giaffone. The car will be sponsored by Hollywood - a Brazilian tobacco
company - which has worked with both Nunn in the CART series and Giaffone in
the IRL.

In addition to the Hollywood team competing for the IRL championship, Mo
Nunn Racing also confirmed that it will field two entries in the 2002
Indianapolis 500. The driver and sponsor of the second car at the Indy 500
will be announced at a later date. Engine and chassis decisions will also
be announced at a later date.

"This is certainly great news for our organization and having the ability to
take two cars back to the Indy 500 is very exciting for the whole team,"
said Morris Nunn. "We will continue to field the Pioneer-WorldCom car in
CART in 2002, but with the CART situation as it is right now, we felt a real
need to spread our wings. I am delighted that Hollywood has chosen to make
this move to the IRL with us and we look forward to providing Felipe with
all of the tools necessary to win a championship."

"This is a great opportunity for Hollywood," said Mark Hulit, consumer
marketing director for Souza Cruz, the parent company for the Brazilian
Hollywood brand of British American Tobacco. "We are delighted to continue
our strong partnership with Mo Nunn Racing and about continuing in the Indy
Racing League. We feel the IRL has a great future. The series is very
professional, cost-effective for sponsors, and it is carefully planning for
the future. And, the series continues to develop and strengthen with each
season under the leadership of Tony George. Mo Nunn Racing and Felipe
Giaffone will be a solid combination in our efforts to achieve results in
2002 and into the future."

Hollywood has a long history of motorsports sponsorship over the past 30
years in a variety of series and countries. It has been involved in the
CART series since 1994.

"We value our eight years in CART, but we feel the timing is right to focus
on the IRL for the future," Hulit said.

Mo Nunn Racing was formed in December of 1999 by a group led by championship
engineer Morris Nunn. The team, based in Indianapolis, also includes
Brazilian driver Tony Kanaan. Nunn is one of the best-known and most
successful engineers in Indy car racing history. While serving as chief
engineer for Alex Zanardi in 1996, 1997 and 1998, he helped guide Zanardi to
Rookie of the Year honors (1996) and back-to-back CART FedEx Series
Championships (1997-98). In 1999, Nunn teamed with current Formula One star
Juan Pablo Montoya to win that year's CART FedEx Series Championship. Nunn
also guided Emerson Fittipaldi to an Indy car championship and an Indy 500
victory in 1989.

The 15-event Indy Racing League schedule for 2002 begins March 2 at
Homestead, Fla. The 2002 CART FedEx Championship Series schedule has yet to
be announced.

[BootsOntheSide]

This holds some interesting points.
1 If I understand it correctly, Mo will only run 1 car next season. Is this a hint that Tony and Bruno Junquiera will be swapping places, with Junquiera in the Pioneer car?
2 Alarm bells will be ringing for CART when both Hollywood and Mo Nunn refer to the current CART engine situation, feeling that the series lacks stability. I think they'll have to now either revert to the previous engine rules for one last eyar, accept Ford's offer of a medium-spec one-make enigne for the year, or adopt IRL engines in the interim.

[SevenGrain]

I think that there are a few different forces at work here.

First, sponsor pressure. Hollywood, who has sponsored efforts in both CART and the IRL the past two years wants to consolidate it's money. They want to stay with Mo Nunn, but they feel that the IRL is the way to go. Giaffone has a relationship with Hollywood and he is an established star in the IRL.

Secondly, Mo Nunn has clearly lost confidence in CART. Mo actually abstained from voting on the engine rules. As a Honda team, he also has a legitimate concern for his team's future because as of now, there are no engine manufacturers solidly behind CART beyond 2002. By positioning himself in the IRL now, he will have an established IRL entry with an established IRL driver in the event that CART collapses. If Tony George tries to keep CART teams out to protect his exixting teams, Mo's already in. However I believe that Tony George wants the CART teams in his IRL and wouldn't block then out.

This may not be the last announcement like this. Since May it has been rumored that Roger Penske will field a full time IRL entry in 2002 and bring Marlboro in with it. Ganassi is also said to be considering this.

As far as Kanaan is concerned, he will most likely be in a Target Car alongside Kenny Brack, but Casey Mears may retain the #66 ride. MCI WorldCom has worked with Casey in Indy Lights and, although Pioneer is a Japanese Company, it is Pioneer USA that sponsors the Mo Nunn ride, and they like the fact that Casey is an American. Bruno Junquiera may be the one S.O.L.

[Crash Test]

Hrmmm, I've always wanted to ask this, but how can Hollywood sponsor the two different series? Is it becasue their products aren't sold in America? Remember when Penske wasn't allowed to wear Marlboro colours at the IMS??

[SevenGrain]

That's right Crash, it's because Hollywood cigarettes are not sold in the U.S.A. that they are not involved in the tobacco settlement of 1997.

[racer69]

Then why do Hollywood bother sponsering a car in a series that only races in the USA

[BootsOntheSide]

Because their parent company BAT do sell cigarettes in the US, and they can use every promotional opportunity to subtly ram this fact home. Plus the international interestin the Indy 500 has always been high, and sponsoring a talented and up-and-coming Brazillian driver gives them further promotion.

[KC]

I think Mo Nunn and Hollywood are hedging their bets. Giafone will have a good chance of contending next year, CART may or may not be around much longer, and Nunn has the budget from BAT to do both.