Robin Miller on the IRL bid

[Tailwind]

It appears Indy Racing League founder Tony George will be going for the jugular here next week in bankruptcy court but the principals of Open Wheel Racing Series (OWRS) say they aren't concerned about what promises to be Bloody Wednesday.

George indicated late Thursday afternoon he had filed a bid to purchase certain assets of Championship Auto Racing Teams in U.S. Bankruptcy Court on Jan. 28. OWRS, comprised of CART owners Gerald Forsythe, Kevin Kalkhoven and Paul Gentilozzi, has already submitted a bid to run a series in 2004 using most of the venues on CART's 2003 schedule.

Fred Nation, vice president of corporate communications for IMS/IRL and George's spokesman, claimed the bid was "substantial" but refused to give any details in an email message sent to several IRL constituents.

But SPEEDTV.COM has learned that George is only bidding on the Long Beach Grand Prix, CART's engine lease program and possibly some equipment.

It had been assumed that George's all-oval circuit wanted to take over one of CART's Canadian dates (Toronto, Montreal or Vancouver) and Mexico City, which drew nearly 200,000 on race day last year, in additon to Long Beach.

Since taking over for Formula One in 1984, CART's cornerstone event has been the spring street show at Long Beach. It's the second biggest open-wheel race in this country behind the Indianapolis 500 -- usually drawing more than 150,000 spectators in three days.

Sponsored by Toyota, one of the IRL's engine suppliers, Long Beach is scheduled to celebrate its 30th anniversary April 18 when OWRS opens its season.

The IRL, which competes at Motegi, Japan that weekend, has publicly stated it will not be possible to race on road courses or street circuits in 2004. But there has been speculation that the Rolex Grand American Road Racing Series, owned by International Speedway Corporation and partners with George at several IRL tracks, could also make a run at Long Beach and other CART venues by Friday's filing deadline.

It's also possible that George could offer to pay the LBGP Association several million dollars in lieu of a race in '04 and add it to the 2005 IRL schedule.

But the most critical battle could be over power, literally.

CART owns all the turbocharged Cosworth engines that OWRS plans to use and last year they were leased to the teams by CART. If George, whose series uses normally-aspirated engines manufactured by Honda, General Motors and Toyota, would out-bid OWRS for the engines that would effectively end this eight-year war.

Judge Frank Otte will rule on the bids Wednesday and Forsythe feels confident OWRS will win the right to continue CART's 25-year tradition.

"My read is that the judge will throw their (IRL) bid out because there is no way anybody can come up with as competitive a bid as we have," said the longtime car owner from Chicago who captured the 2003 CART championship with Paul Tracy. "He's got to look at the whole picture and we've got a comprehensive business plan that we've been working on for seven months.

"There are obligations to race promoters, sponsors and investors and the IRL could be looking at huge claims against them. I feel we have all our bases covered. I'm extremely confident."

OWRS has the opportunity to increase its earlier bid of $1.6 million prior to Wednesday's hearing and Forsythe said his group has Plans "A through D" ready.

But one CART owner, who requested anonymity, cautioned that "We may not be prepared for the amount of money Tony will spend to try and kill us."

During an OWRS meeting in Indianapolis last week Kalkhoven said George's intent should be obvious. "He wants to shut us down and we want to build CART back up."

The Civil War that has been IRL vs. CART since 1996, mostly verbal along with some high-profile defections, will bring out the heavy artillery Wednesday. And it's a battle that will likely hold the future of open wheel racing.

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Most of this is nothing new, but id does clairify TGs intent.

[Mags]

Thanks for sharing.

[Ac.]

TG must be crazy. It's obvious that he is going after LBGP because Toyota wants him to, and to bid on some trailers and equipment...well he does run a racing series, but to bid on CART's engines....the only reason he would do so is to run CART/OWRS out of business.

Whether he wins or not TG has just slapped the face of every CART supporter around the world. How can he possibly think that a move like that would help his plans?!?! All he is doing is driving away more fans and teams from ever participating in the IRL.

[Fogelhund]

Do keep in mind, this may or may not be true... we shall see though.

[Hegarza]

Hope TG not get nothing.

If he get Mexico City. There will be no support for the IRL.

According to a newspaper in Mexico City. The sponsors will get out if CART-OWRS not come! They not want IRL in Mexico

[Testure]

Originally posted by Tailwind
But SPEEDTV.COM has learned that George is only bidding on the Long Beach Grand Prix, CART's engine lease program and possibly some equipment.

Yikes! Bidding for the engine contract would be a seriously nasty tactic. There's nothing - nothing - he could want with that other than as a means of killing off the series. I mean, at least the IRL would have a legitimate interest in the race contracts, especially Long Beach. The bad feeling this would generate among the remaining teams, drivers, fans, etc. would be absolutely enormous and considerably prolong US open-wheel's problems. Talk about digging your own hole! I'd hate to think Tony George is that stupid.

[GP Racer]

Originally posted by Testure
Yikes! Bidding for the engine contract would be a seriously nasty tactic. There's nothing - nothing - he could want with that other than as a means of killing off the series. I mean, at least the IRL would have a legitimate interest in the race contracts, especially Long Beach. The bad feeling this would generate among the remaining teams, drivers, fans, etc. would be absolutely enormous and considerably prolong US open-wheel's problems. Talk about digging your own hole! I'd hate to think Tony George is that stupid.

Well, after reading some of the posts here lately, especially from some of these new guys, is there really anything that TG could do or say to make things right?

He will be the villian no matter which move he makes, so I guess he's just going to go after it.

[SurfaceUnits]

Originally posted by GP Racer
is there really anything that TG could do or say to make things right?

There is, but TIG, AKA clabber boy, doesn't have it in him, and neither do those around him.

[Mags]

Originally posted by SurfaceUnits
There is, but TIG, AKA clabber boy, doesn't have it in him, and neither do those around him.

You have THAT right!

[gttouring]

well if he bids the engine contract, and ges it OWRS can still hang on to Formula atlantic and turn it into a new F5000- by stuff crate V8's in the chassis with superchargers to get them up to the needed powere, and in the small Atlantic chassis- it would be one heck of a show, so all is not lost and building these little engines for under 10 grand each is easy for these teams.
an option perhaps- all is not dead.

[Testure]

Originally posted by GP Racer
Well, after reading some of the posts here lately, especially from some of these new guys, is there really anything that TG could do or say to make things right?

Good grief, of course there is! There's a million ways this could end up good for everybody involved. For example, if he bought the entire thing as a going concern and consulted with the CART teams on a plan to integrate the two series over a couple of seasons, I think he'd win friends. But this - this is guaranteed to make a lot of people very, very bitter for years. Worst possible decision the IRL could make.

[jjspierx]

Originally posted by GP Racer
Well, after reading some of the posts here lately, especially from some of these new guys, is there really anything that TG could do or say to make things right?

He will be the villian no matter which move he makes, so I guess he's just going to go after it.

I don't understand that statement. Just cause he's already disliked by a lot of people, does not make it a smart move to do something to **** off even more people, and to further **** off the already ****ed. We really don't need people to come over the Champcar forum and try to justify actions that are anti-Champcar. :confused:

[Mags]

Originally posted by jjspierx
I don't understand that statement. Just cause he's already disliked by a lot of people, does not make it a smart move to do something to **** off even more people, and to further **** off the already ****ed. We really don't need people to come over the Champcar forum and try to justify actions that are anti-Champcar. :confused:

I don't undersand why anyone could possibly not understand why an open-wheeled racing fan ISN'T upset with TEO. He split our series, and caused all this trouble. If he had not done that, we wouldn't be in this mess. I don't have a TEO voodoo doll. I don't wish him any harm. But I sure don't want anything do to with the IRL, and I can't for the life of me understand why anyone would waste thier time coming over here and taunting CART fans. I don't do over there. Let's just hope the judge does the smart thing and all of this is over soon.

[rush1]

The NFL here in the States worked to kill off the USFL in the 80's. The XFL failed and none of this hurt the popularity of the NFL.

In basketball, the ABA and NBA went after each other in the 1970's. That civil war makes this look like a garden party. The NBA finally killed the ABA and went on to bigger and better things.

The series formerly know as CART faces the same fate as the ABA and USFL. It has lost this sporting civil war. But the victors always write the history. The IRL Indy Car World Series will be around long after CART ceases to exist. Fans just want to see cool cars, loud sounds and speed. No one but a handfull of people care what its called and who controls it.

[SurfaceUnits]

You were partially right: No one cares. Who's your Daddy?

[sgjb]

I dislike TG as a person, as I have met him several times. But I can say that in the business world he is only doing what he feels is right. Not everybody always agrees with each persons tactics or goals but that is life. Just ask the shareholders of CART what they think of the OWRS peoples tactics to pay less money. I wonder what they think of Forsythe helping kill the series. He had so much power and Pook was his puppet.

If you should be mad at someone, truly it should be at the OWRS people that left this door open for TG. He certainly would have not bid if they tried to merge the series as had been originally planned. Their was way too many liabilities for TG to want to play. They would not have been able to piece off the company under the original plan. Now they can, and it is open season for whatever anybody wants.

The villian here is not TG. It is the people that have been in control of the series for the last 7 years. They had a superior product to TG but managed it miserably.

[Ac.]

Originally posted by rush1
The NFL here in the States worked to kill off the USFL in the 80's. The XFL failed and none of this hurt the popularity of the NFL.

In basketball, the ABA and NBA went after each other in the 1970's. That civil war makes this look like a garden party. The NBA finally killed the ABA and went on to bigger and better things.

What you say about football and basketball is not incorrect, but both of these sports were growing when these conflicts began. Open Wheel has been in decline ever since the split(just look at the indy 500 tv ratings, down 40% since 96 and down again this year even with honda and toyota).

One series "defeating" the other will not result in gains, only losses.

[Mags]

Originally posted by sgjb


The villian here is not TG. It is the people that have been in control of the series for the last 7 years. They had a superior product to TG but managed it miserably.

Yes he IS, and yes is WAS. If Tony had not taken his ball and played elsewhere, we would not be IN this mess. And you sure are right, it WAS mis-managed. But it will be put right when it is under the hands of 1 strong leader. That it survived this long is a miracle. Pook did a fantastic job in 2003.

[Dov]

Mags ,
You know that I hate the IRL and TG just as much as you do and I don't like it when people from the 'other' forum come over here everyday just to dance on our (CCWS) grave, but we can't do anything about the past. Let's calmly discuss OWRS/CCWS, present and future.

[Mags]

Originally posted by Dov
Mags ,
You know that I hate the IRL and TG just as much as you do and I don't like it when people from the 'other' forum come over here everyday just to dance on our (CCWS) grave, but we can't do anything about the past. Let's calmly discuss OWRS/CCWS, present and future.

Well, lets pray there WILL be a future. I can't imagine what on earth possessed TEO to bid on any part of CART, when all he wanted was an ALL American, ALL Oval series in the first place. Long Beach does not look round to ME. Does anyone know how long the judgement will be delayed now?

[macdaddy]

I'm of the understanding that the judgement will still be on the 28th, but as usual I stand to be corrected. Bids in by the 23rd, judgement five days later?

[Fogelhund]

TG may share a majority of the blame for the original split, but to say he is solely responsible is an absolute over simplification.

Pook did a terrible job in 2003. To think otherwise, is ignoring every fact. He killed CART, there is no way around it.

Pook et al. has brought us to where we are now. CART is bankrupt, and a new buyer is needed.

The OWRS is the latest in people who have made a mess. Instead of trying for the stock buyout, they decided to save a few bucks, and it might cost us fans the series. Bad gamble. (though maybe they knew the vote wouldn't go their way, and this was the only choice)

[Mags]

Originally posted by Fogelhund
TG may share a majority of the blame for the original split, but to say he is solely responsible is an absolute over simplification.

Pook did a terrible job in 2003. To think otherwise, is ignoring every fact. He killed CART, there is no way around it.

Pook et al. has brought us to where we are now. CART is bankrupt, and a new buyer is needed.

The OWRS is the latest in people who have made a mess. Instead of trying for the stock buyout, they decided to save a few bucks, and it might cost us fans the series. Bad gamble. (though maybe they knew the vote wouldn't go their way, and this was the only choice)

The reason CART went bankrupt is so that is could be bought on the cheap. Pook did a brilliant job in keeping it together the last year and making sure it didn't implode.

[Tim Northcutt]

Question:

In some publications, I have read that the Judge will rule on it...

In others, I have read that the 28th will be an "auction"....

Concerning the "LBGP and the engines, etc.":

The bid is a sealed bid....sorry, but that has to be speculation...

But those bids were due at Judge Otte's chambers this morning at 9:30 a.m.

Grand Am said they are not alligned with the IRL, but do have an interest in certain assets...

The big questions are:

How "substantial" was the IRL bid???

How much is the IRL willing to spend to get the assets they want???

How aggressive will Grand Am be in this process???

Between IRL and Grand Am, can they get enough assets in this process to make the OWRS season just a handful of events?

How high is Too High of a price for the OWRS to go in this process???

Same question for the IRL & Grand Am????

Does the IRL's Offer include any kind of Payment to the Shareholders??? (that might just sway a bankruptcy judge...and the stock is cheap right now...they would get something out of it instead of nothing under the OWRS deal)???

The only things we do know for sure:

OWRS is very unlikely to get this done for the $3 million that they hope dto do it for....

This thing has turned into a real three-ring circus....

Boy would I love to be a fly on the wall in that courtroom!!!!

[Fogelhund]

$100 million dollars of shareholder money wasted so that the racing bits could be bought cheap? Not quite brilliant stuff. Any rational person could think of a better alternative.

IF indeed that was the known goal, then Pook will be a very poor man after this is done, and the equivalent of Enron leaders. Your suggestion is that Pook knowingly defrauded people of $100 million. That is brilliant stuff?