ASTJ set to close shop?

[Dov]

From TSN.ca:http://www.tsn.ca/auto_racing/news_s...me=auto_racing

American Spirit set to close shop


TSN.ca Staff

11/12/2003

The fallout from the cancellation of CART's season ending race in California is starting to be seen among some of its financially struggling teams.

While the cancellation saved the open-wheel organization about $750,000 in money which would have been paid to teams as part of an assistance program, the lack of payments is expected to force American Spirit Team Johansson to close its doors, possibly for good.

Following the cancellation, ASTJ issued a statement saying the team was in talks with potential sponsors for next year. However, the current economic climate forced the team to scale back operations and reduce staff to a minimum.

It's believed that team owner Stefan Johansson was set to entertain at least two potential sponsors for the 2004 season at Fontana, money which would have helped solidify a one-car effort next year.

Now, there is strong speculation that the team will close its doors as early as Friday.

ASTJ ran two cars this season for veteran Jimmy Vasser and rookie Ryan Hunter-Reay. However, the team had no significant sponsorship as evident by the names "Jimmy" and "Ryan" appearing on the sidepods - an area usually reserved for prime sponsors.

Even if Johansson manages to return next season, Vasser is not expected back while Hunter-Reay - who scored his first CART victory in Australia - is said to be investigating opportunities with other teams.

CART's plan to pay teams to participate this season in order not to default on several event contracts is not expected to be maintained if the series is sold to a group of current team owners and taken private.

[BSchneiderFan]

A shame, in some ways, but ASTJ always had a rather half-assed feel about it. This may be completely unfair, but I got a sense that some of the teams existing on Pook-fare didn't really try all that hard to secure extra sponsorship. Nick Hunter-Reay's cash was a prop, too. Was CART a step too far for Stefan Johansson, or was the timing just wrong?

[GP Racer]

Well its certainly unfortunate, but not really unexpected. How long could they survive without a sponsor? It seems a golden opportunity was missed here.

A great effort by Stefan and the boys.

[macdaddy]

I never really thought about such Fontana ramifications.

[Muzza]

Very regrettable, and I hope ASTJ can turn it around, but several of us had alerted to this possibility at least six months ago. Not surprisingly, the reaction from a few in this forum was to proceed to call me "Mr. Doom and Gloom". It did not come as a surprise. This news do not come as a surprise, either.

One of the problems with the CART community - from fans to team managers, from journalists to the organizing body itself - is that most of the minds have been polarized, segregating themselves to two extreme camps. Reasons for this are many: the "Open Wheel War" with the IRL, overpowering shadow that NASCAR casts over American motorsports, uncertain economic and financial outlook, questions about what role does CART play.

These two extreme fields within the CART World are:

- The Daydreamers, that live in a world with calendars with 20 races and full grandstands, 28 cars in the grid, live TV coverage in major networks, Jacques Villeneuve, the beatification of Chris Pook, the re-conversion of Roger Penske and exorcism of Tony George (well, if there is a petition circulating around for the latter, let me know and I will undersign it);

- The Armageddonists, who are sure CART is dead. Most of these creatures do not spoke out, but let their true feelings be heard in half words and double-entendres. They do not post – they write private messages. These are the folks that warp and twist between feelings of death wish and a nostalgic glorification of everything 1980s (from Rick Mears to Rick James).

Unfortunately, in times of crisis - a situation that CART (and the happy-going, wishful-thinking environment that surrounds it, including this forum) did not recognize until June 2003 - is that reason should be used to elaborate a strategy that can ensure self-sustainable, long-term growth. Some of you may recall my criticisms of the manner with which the dreadful (yes, dreadful) situation of the series was being handled - even if I never ever stopped supporting Chris Pook, a person that I much esteem -, and my complains about lack of professionalism that permeates it. Well, it does not matter what is your job, you can only fumble the ball a limited number of times.

The CART establishment has been completely unable to find a conclusion to the question "What the hell CART wants to be?". CART has been unable to see a future for itself - and marched on to erode its own image, its own self. It seems me that CART believed that some sort of "spiritual force"/"higher being" would not only maintain its existence, but also to make it grow.

Folks, wake up. Stop the insanity. Believing that CART would continue to exist just because of what it is (or was...) CART is childish. Racing series only exist if there is a need for them. Ok, who the hell needs CART? This is the question that the CART management has failed to strategize upon. This is the question that the CART management has failed to answer. And this is the question that most of us either preferred to ignore or were simply unable to consider. CART has failed to find a new identity. Is it going to be a feeder series to Formula 1? Is it going to be the prime open wheel series in North America, and second only to Formula 1? Is it going to be a single-spec formula for teams that could not find a niche in other categories? Is it going to be a Formula 1–reject series? (nothing wrong with that! But if it is going to be, let’s make a plan on it, otherwise it won’t happen) Is it going to share forces with ALMS? Is it going to run ovals? (Is there a need – or reason for an everything-goes, oval, street races and road courses series. Yes, it is very attractive from a technical point of view, but so what? Universal causes don’t attract many followers. It is just like being “for peace”- everybody is for it, so what?).

Don’t get me wrong. I continue to list myself amongst the staunchest of the CART supporters. I do believe there is a need for a CART. I can see a strategy that would carve a significant, critical space for CART in the spectrum that composes motorsport (never forget that what set racing apart from other sports is that there are several series competing with each other for sponsors, media coverage, fans and market in general. In a rather suicidal approach, CART mostly failed to recognize that). I am very hopeful that the OWRS takeover will be successful, and that a healthy field will be seen at the tracks next year, and beyond. My only hope is that is not too late.

Ten Tenths member EERO has added an interesting signature to his messages. It reads “Growing old is mandatory; growing up is optional”. CART has lived the last ten years as a carefree person that breezes through life, singing the joys of youth, partying with friends every night, sucking on easy credit – until, all of a sudden, she is your typical 38-year old, three kids, two marriages, pile-of-debts friend. That kind of friend that turns to you and moans “I only dream I could be eighteen again”. Well, Peggy Sue, that is not going to happen.

CART community, welcome to the adult world.

[Snrub]

I don't agree 100% with everything you say all the time, but you've got a good point about crisis and not having a overly idealist look at things.

CART has lots of potential. There are things that CART does really well. 8 or so races are fantastic attendance successes. It doesn't seem to matter what happends to CART, talented drivers and good racing seem to be the natural state of things. If they can utilize this stuff in an effective manner then they will be far better off.

National US support is a big problem. Without TV coverage they it's difficult to get it and it is difficult to gain sponsorts. There really is no opportunity to do this in the short to mid term. As a result it's more difficult to grow US races, gain sponsors and have teams and drivers. Through the crisis period, CART and it's fans have refused to give up ceratin aspects that they consider key to the series. Stuff that would be needed if the series was to become big again really soon. I think CART needs to take slash and burn tactics. If a race doesn't make money it's on the chopping block cut them all. Then decide on perhaps 2 races that will be growth races. Be willing to grow them for local fan or national fan reasons.

Starting from a base 10 races would save tons of money, allow for some temporary subsidization. CBS could air all of the races, hopefully live. When the series gets money, add more races and hopefully CBS would be willing to add them onto their schedule. Grow slower and hopefully the successes will not be overshadowed by overambition. Schedule for promoters, but also time the races so that they don't conflict with Nascar or IRL. Some of those people WILL watch a CART race if it comes on afterwards. They would be in for a big surprise too!

Realistically OWRS people are a year later than they should have been. CART as a company would have been better off to liquidate its assets and sell the relavent racing rights/etc to the OWRS. That would have brought more stability to the series and as such more sponsors. OWRS guys need to complete this stuff ASAP so that teams stand a chance at paying their own bills next year.

[corkholio]

The most interesting (and surprising) part to me is how much some teams depended on the charity fund. Now just where are the people who said ASTJ was actually turning away sponsors? Word has it that RHR (or NHR) has already taken his wad of $$$ to another team.

OWRS might be better off sitting down and look at what's wrong and think of long-term answers to fix them, instead of making quick fixes like Pook did only when problems arose.

[GTRMagic]

So how many cars are left in the series if these 2 pull out?? Will CART/OWRS have to prop up more teams in 2004 to get the required number of cars??

DCR seems to be able to run chassis on the smell of an oily rag, hows about CART/OWRS gets them to run 10 cars at their cost (would could about US$7.50 for the year), and get the 10 or so cars sponsored by commercial entities to run in competition

Its sad that this team is to fold, but I guess we never really understood where the money was coming from in the first place.

Where does Nick Hunter-Reay get his $$ in the first place?

[Dov]

Originally posted by GTRMagic
Where does Nick Hunter-Reay get his $$ in the first place?

From his Father/Family!!

[Jordi]

Ryan! Ryan! not Nick...

I agree with most of your post Muzza, even if it's hard and even if I don't think I am in one of the two poles in CART...

[gttouring]

a real tragedy, losing any team at this point. What can really be done to save CART, OWRS is on the mover, but there are those mystery buyers, and I haven't heard anything in a couple of weeks so...
But what reason would ASTJ give to shut down, they were podium finishers and winner, in some races in the under par Reynard in a Lola Field- looks good, how is it that Jimmy has no sponsor options? He is the biggest name in CART as a driver, along with PT right now, and a class act to boot-
you'd think someone would get on the ball here.

[jetsetter]

Hopefully CART can get something together to try & keep as many teams in the series as possible, they can't afford to travel around with relatively empty grids.

[GTRMagic]

Originally posted by Jordi
Ryan! Ryan! not Nick...

I know Ryan is the son, Nick the father, I was interested to know what industry he was in, to see if there were complementary business partners at other CART teams.

[Snrub]

The interesting thing is that DCR seems to have high equiptment costs due to lots of accidents. They did get a lot of Pookfare too.

[Hazza]

My 2 c.

the first things first the biggest irony was that Andretti was fortelling about how CART wasn't going to be around next year, when if the 2 3 car teams that where moaning that hadd've stayed then there wouldn't be this problem!

I thought ASTJ was up the creak financially the moment i saw them break ranks with the pit sequence just to get some TV air time at Clevland.

In my humble opionin, if i was chris pook, 2 things would happen, first the series would be bank-rupt and out of buisness, but thats not the point - but i would stick it up teh IRL and keep cart as the Oval/Roadcourse machine that it was with a very early 90s callender, i mean Millwauke, Phoniex, Fontana, Chicagoland (if possible) and Las Vegas with all the asskicking MONEY RASING racetracks, like Long Beach, Surfers etc etc etc. I don't think anyone likes too see CART race round tracks like Miami - the motor cross track from hell! (2002)

[Liz]

Something about the future of ASTJ will be announced in the near term that is not as hopeless as many of you would like to believe it is.

Hold the grave dancing for now.

[Tailwind]

That’s an intriguing statement Liz. I’m hoping your media credentials give you an inside line to information and so I hold out some hope. We could use a little more good news around here.

[GP Racer]

Originally posted by Liz
Something about the future of ASTJ will be announced in the near term that is not as hopeless as many of you would like to believe it is.

Hold the grave dancing for now.

Where in this whole thread did you get the idea that anyone wanted to dance on the grave or that many would like to believe it's hopeless for ASTJ? :confused:

[corkholio]

It's not so much so that people (myself included) want to see ASTJ close shop - but some people who like to pull rank went Lulu over some of us for suggesting that it was a possibility a basically unsponsored team.

[Liz]

Muzza for nearly a page, actually. But I do happen to have inside information on this one. Not the news I would have liked, but not the end of the line either ...

[GTRMagic]

Therein lies the issue, until the future is confirmed, any discussions about the team remain purely speculative. Not helped by the press reports of J.Vasser moving to Patrick next season, and Hunter-Reay assessing his options.

Unsure what else you are supposed to think when this is the kind of information in front of you.....

[Snrub]

Good to know. Why would you want ASTJ to go under corkholio? They had two talented drivers and had some decent success despite having no money and rookie engineers.

[BootsOntheSide]

I'm not sure the team is dead. It certainyl has some financial problems, but many of the teams who used a lot of Pookfare do. ASTJ had some of the barest looking cars all season, despite their apparent easy marketability, and the 2004 funding has to come from somewhere. I agree that it'd be a shame if we lost them, but the possibility has to be considered.

[Jay]

there's been a lot of rumours going around...the big one is that aparently the partners involved in financing the team including Nick-Hunter-Reay as one of the major backers are set to bail on the project. Stefan Johanssen was more of a paid figure head than anything else, and I'm not sure he had much of any financial involvement. They were trying to secure sponsorship for one car next year, but that hasn't happened yet... With the team heavily supported by CART, and that money source drying up, they have no source but to reduce to a shoe-string staff. The more time that passes without the team's equipment going up for sale, the better... I've heard conflicting rumours from boths sides.

RHR did a great job this year, and showed that he has what it takes for CART. So, hopefully whatever happens to ASTJ, he'll be around for anohter year!