It looks like the fat lady is coming to the podium

[Brian W Keske]

Looks like CART as we know/knew it will not exist again...The sale looks to be off.

http://biz.yahoo.com/prnews/031202/nytu207_1.html

[Jay]

*yawn* Is this really anything new? CART is/was dead a long time ago...whether the transaction goes through or not, the people in OWRS want to continue on regardless of what the shareholders, SEC, or whoever decides... OWRS is just going to pick up the pieces of the now bankrupt CART series..the only question is whether it will buy the company as shares or as assets in a sell-off. That article even notes it:

"In addition, OWRS has made a preliminary proposal contemplating an alternative transaction under which Championship and its subsidiary CART, Inc., would commence reorganization cases under Chapter 11 of the Bankruptcy Code and OWRS would purchase certain assets of the Company and/or CART, Inc., and assume certain liabilities."

[Tailwind]

This part i think has been discussed by Flatspot and several others with Business/Financial backgrounds...

CART, Inc., would commence reorganization cases under Chapter 11 of the Bankruptcy Code and OWRS would purchase certain assets of the Company and/or CART, Inc., and assume certain liabilities. OWRS advised the Company that under the OWRS proposal, OWRS would continue the Champ Car Racing Series in 2004. Although Championship is reviewing this proposal there can be no assurance that any agreement will be entered into or that any transaction, if completed, will result in any payments to stockholders.

I've seen a lot of companies go into Chapter 11 specifically airlines, who emerge out the other side free of the heavy debt load. I don't see this as bad, in fact I see a lot of good from it. The bad part in my mind is that it will take that much longer to get things in place to get to racing.

[Brian W Keske]

Originally posted by Jay
*yawn* Is this really anything new? CART is/was dead a long time ago...

Look at the time stamp. Yes, I would say this is new as in it is now being reported that OWRS is pulling out of the deal which is being voted upon.

That makes the vote rather useless, no?

There will be lawsuites filed by a variety of folks, and I don't see the 'bits and pieces' sold off anytime soon.

2004 is going to be very tough to make happen. I think this is only the tip of the iceberg to what we will see happen in the next month.

[Jay]

What I meant was, I don't think this changes anything as far as 2004 and the future of open-wheel road racing in North America is concerned.

Even if the vote goes perfectly 2004, is still a huge question mark... and lawsuits would still be likely... is the vote rather useless? perhaps, but that press release doesn't sound terribly official...so I assume the offer hasn't been taken off the table yet.

For 2004, OWRS will have to fund several cars out of pocket to make a grid of 18 cars..or consider running fewer cars and paying penalties at certain races. Another idea would be to trim the schedule down to the key, established events, such as Toronto, Vancouver, Long Beach, etc... or possibly run only Saturday and Sunday... I imagine the night races will have to become day races (Cleveland especially).

It'll be a tough year no doubt... I think it will happen, more because the penalties for open-wheel road racing will be greater if it does not happen - thus I think OWRS will put down the money to run it, albeit on a shoestring budget compared to what we've become accustom to. It'll be a rebuilding year more than ever, where the focus is more to fullfil events, while preparing for a more complete series in 2005.

And if part or all of 2004 doesn't happen...it'll be time spent preparing for a come-back later this year or in 2005.

[Brian W Keske]

Originally posted by Jay
What I meant was, I don't think this changes anything as far as 2004 and the future of open-wheel road racing in North America is concerned.

Even if the vote goes perfectly 2004, is still a huge question mark...

Agreed Jay. There are many venues and teams and sponors that will have to make some decisions real soon. They will not wait for lawsuits to be settled.

IMO, this could look uglier as the next fews days play out.

[macdaddy]

This ain't good. It could take months for OWRS to come away with any assets, and I'm afraid that there won't be a season in 2004. By 2005 it will be too late, as the sponsors, promoters and broadcasters will all have left the building.

Now I'm having a bad day. At least I had the vote to look forward to, but now it looks as if there won't even be one. OWRS simply doesn't want to buy. Not at 56c, at least. The Fontana lawsuit no doubt made their decison easier, coupled with the (at least one) major debt that was not met.

Ford and Bridgestone should each run two-car teams, keeping the car count up, thus eliminating the "material adverse effect". Already they have quite alot invested in the series and its future. But that's pipe-dreaming.

[sgw2]

Jay,

its dead now. The teams that can switch to the other league will. Herdez, a second Rahal, Newman-Haas, maybe one or two others. Even Toyota Atlantics teams like Michael Shank (to GARRA) and RuSport (I guess IRL now) will bail. There simply wont be anyone to go racing with.

Street races take the biggest blow. Denver, Miami, St. Petersburg, Vancouver, and Cleveland are dead and soon to be buried. Surfers is in big trouble if the Super V8s aren't considered enough to carry on the event. Even the Molson Toronto is in serious jeapordy of extinction.

Only Long Beach is likely to survive, but what they do in 2004 is an open question. I figure it is either a Questor GP type invitational OW race or a Sportscar event like ALMS or the Toyota supported Grand-Am. IRL looks certain now for 2005.

I'll bet spending money on lighting up Cleveland and Milwaukee look real important to him now.

[Snrub]

Darn this is bad. The ones who (seem stupid to me) are the OWRS people. They obviously want to run the series, why else would they waste their time with all this stuff?

EDIT: C'mon folks! How many times must I respectfully ask everybody to quit with posting profanity? This note isn't for Snrub specifically. And we can't go around labelling people with unflattering adjectives, either.

[Fogelhund]

Look guys, I think some of you are being a little over reactionary here. I've been saying that this is a possibility for some time. I still believe that this may be the best bet left for Open Wheel Road Racing in North America. IF OWRS has decided that not doing the CART deal is their best method of getting this done, then it definately is the best method. IF OWRS just decided to walk away from this, then it would be dead.

Instead they are finding a better way to keep Open Wheel alive. Back to the schedule. It needed to be hacked, travel needed to be reduced. So, you end up with a 8 to 10 race season, much lower costs and make it feasible for more teams to run.

This may have been the best piece of news to hit the streets for Open Wheel Road Racing in some time. Finally, someone has it figured out in the dollars and sense category.

[Brian W Keske]

So why didn't they do this at the start?

Because I doubt they could until CART was broke. How many of us believed OWRS would simply pull out their checkbook and move on a couple months ago. This is obviously not been the master plan, and if it was, I can't see how it could be ethical.

[Fogelhund]

Well, you can bet that Pook & co. are going to have more litigation then they can handle. I'm not sure how this is going to affect the OWRS crew.

It is near impossible to accurately understand why and how the steps in this dance have unfolded as we now know. I suspect that the OWRS team was formed with a more idealogical basis, to save CART type racing. The deeper they got, and the closer to the deal, they probably came to a realization that this just wasn't financially doable, without some major fixes. I just don't think those fixes could be done with all of the existing CART contractual agreements, the economic structure was such that it wasn't feasible.

This gives them the opportunity for a fresh start.

Not saying it will work, but I will state, as I have numerous times the past couple of years, that Pook et al's strategy of spending money was horrible mismanagement. I've been talking reduction of costs all along, and finally I think the OWRS guys realize that this must be so.

[Zinger]

When is the CART AGM and is therelikely to be a spill of the board if it is befor the file for a chapter 11.

[Omega99]

I'm sad. OWRS might as well create an entirely new series and just steal the old cars/teams/events. Or, maybe this is all for the best. If we're back to one series, the IRL will eventually pick up more road and street courses, the series will evolve, and then someone will say, "I'm starting my own sereis" and the cycle will repeat. Whatever, I've had it with rumors. I'm not even going to comment on such topics anymore until something is finalised.

[rustyfan]

In 2005, when the IRL most likely will add some road courses, it will essentially become what CART was when it got started in 1979 and the circle will be complete. We will again have a championship primarily based on ovals with the Indy 500 as its centerpiece, with some road courses thrown into the mix.

With that said, I still hope CART will be around in 2004 as one championship alone wouldn't be able to race at all the tracks I enjoy seeing indycar-type cars race on.

Unlike they go for a NASCAR-style 36-race schedule of course

[PaulSands]

It's maybe a little more serious when the news makes it onto the BBC news website...not renowned for it's interest in American Racing

[BootsOntheSide]

The best option might be for OWRS to target starting their first season around July, and run about 10 races, perhaps non-clashing with IRL to give tema sthe chance to run both.

Concentrate on the classic core venues initially, maybe 5 US, 2 Canadam 2 Mexico and Surfers, maybe just road courses (not ideal, but most cost-effective) and look to do more in 2005.

14-16 cars should be possible, especially if the launch can be grand - emphasise it as a rebirth and a genuine challenge to the IRL monopoly, maybe highlight some of Tony's hypocrisies. Forsythe, Rocketsports, PK, Herdez, Newman-Haas, FDR, Rahal and Coyne look near-certain to support such a series, and the others bar Conquest and ASTJ are possible. A cost-effective schedule could tempt Mo Nunn to run a car as well.

[carsten66]

from motorsport.com:

Open Wheel Racing announces alternative proposal
LANSING, Mich. (Dec. 2, 2003)

Open Wheel Racing Series LLC ("OWRS") today announced that it proposed to Championship Auto Racing Teams, Inc. (OTCBB: CPNT.OB) ("Championship") that it acquire certain assets of Championship or CART, Inc. OWRS made the proposal during a meeting with representatives of Championship where it became clear that Championship is unlikely to fulfill one or more of the conditions required to close the previously announced merger agreement. The purpose of the proposal is to permit OWRS to continue the CART racing series next year.

The plan proposes that OWRS would acquire certain assets of Championship and its wholly owned subsidiary, CART, Inc. In order to permit Championship to operate until a transaction closes, OWRS would provide secured financing to Championship in an amount to be determined. Championship is currently considering the proposal.

According to OWRS partner Paul Gentilozzi: "This proposal will allow OWRS to acquire the assets necessary to continue the CART racing tradition into 2004. OWRS expects to retain a sufficient number of cars to meet CART's contractual obligations with our race promoters.

"OWRS plans to maintain, and ultimately expand the CART racing series in the Americas and throughout the world. While OWRS is disappointed that the previously announced transaction appears no longer feasible, it remains committed to the CART racing series."

The buyout is off – but OWRS will run the series in 2004...?!
I agree with fogelhund: ”This gives them the opportunity for a fresh start. “ I really hope so... it's all open now

[indycool]

The two news releases are contradictory. CART says it can't guarantee a car count and that's the reason for the move. OWRS says it CAN get a car count and that's the reason for its move. Car count doesn't become an issue for four months, until Long Beach. The real issues are lawsuits and finances and neither release addressed those. These releases are chess moves that are conning the public in very stupid fashion. Yeah, car counts are the critical factor in the deal on Dec. 3. My aching caboose.They're trying to put a bikini on the fat lady and say, "ain't she purty?"

[Dov]

Origianlly posted by rustyfan
In 2005, when the IRL most likely will add some road courses, it will essentially become what CART was when it got started in 1979 and the circle will be complete. We will again have a championship primarily based on ovals with the Indy 500 as its centerpiece, with some road courses thrown into the mix.

Rustyfan, the IRL will never be what CART (previously IndyCar) was or is today! Not as long as Tony George is running the show. Let's say that CART goes under (folds) for a moment.....do you know how many loyal CART fans there are that will NEVER watch an IRL race on TV or attend in person? Too many to count!!! While CART fans love there Open Wheel racing, they, like myself, will just follow other racing series. F1, ALMS, LeMans, Trans-Am, WRC, Aussie Super V8's, DTM, F3000 and maybe even NASCAR...that's a big maybe! So to sum it up....CART fans would rather watch two turtles race then see Tony George and his IRL takeover as the lone open wheel racing series in North America!

[indycool]

Dov, I disagree. If you withhold your ticket money and TV remote because you hate TG more than you enjoy racing, that's your privilege. It's also the privilege of the 850 or so members of c'wagon.com. And there's a bunch of people in China and Africa who don't care, either.

But I think there are a lot of people out there who would rather watch a race than buy a ticket to watch Tony George or Chris Pook or Andrew Craig manage, shuffle papers, write checks or make phone calls in their offices.

If I watch a NASCAR race on TV, I don't think about whether or not I like Bill France. He seldom comes to mind.

[rustyfan]

Originally posted by Dov
Rustyfan, the IRL will never be what CART (previously IndyCar) was or is today! Not as long as Tony George is running the show. Let's say that CART goes under (folds) for a moment.....do you know how many loyal CART fans there are that will NEVER watch an IRL race on TV or attend in person? Too many to count!!! While CART fans love there Open Wheel racing, they, like myself will just follow other racing series. F1, ALMS, LeMans, Trans-Am, WRC, Aussie Super V8's, DTM, F3000 and maybe even NASCAR...that's a big maybe! So to sum it up....CART fans would rather watch two turtles race then see Tony George and his IRL takeover as the lone open wheel racing series in North America!

Kinda bold to generalize CART fans like that - let me assure you that while many (and probably most of them) diehard fans obviously share your thoughts, I know several who will start to watch the IRL if CART indeed folds.

And then you have fans like myself, who have no problem watching both CART and the IRL, enjoying the separate qualities of each championship without crying about the past (even though I've found it increasingly frustrating to be interested in CART due to some of the strange decisions made this year).

As for the split, yes, Tony George played a big part in it, but don't fool yourself into believing he was the lone reason it happened - because he wasn't.

[climb]

Originally posted by rustyfan
...

As for the split, yes, Tony George played a big part in it, but don't fool yourself into believing he was the lone reason it happened - because he wasn't.

Spot on, Rusty!
I can understand that some cart fans hate TG, but the prime cause of CART death is CART management, who made fatal strategic errors, first of all underrating the importance of INDY500.

Should the billionaire from Indianapolis take over the road racing, at least we'd have a more unitary and continuous management of the business; and I agree with somebody here that it'woud take open wheel racing to what many want: one series, both on ovals and roads.

[car_jacker]

I believe much of the apathy for the IRL along with critisism from various quarters stems from the contrived racing (ala Nascar) that takes place. If there were no mandatory wing angles, more power and no bias towards certain drivers you would have a much better series. As it is- many of the potential viewers especially outside of the US are apathetic because they are not catered for and don't always want to see constant side by side racing with photo finishes where the good ole boy wins. I'd be a massive IRL fan if this problem was solved- I hope that next year the manufacturers and team owners put pressure on TG to sort out this problem- Then you will probably win over the casual fan. Till that happens there will be very little growth regardless of whatever happens over the next few weeks.
If Sam won 14 races a year on merit without the help of yellows and a very dubious engine then I'd respect him. Till it happens I'll never support the IRL properly.

[indycool]

Well, NASCAR racing sure sells on the ovals in the U.S., so I guess those people wh show up to watch don't consider it "contrived racing."