CART/OWRS Update....

[Dov]

Nabbed from another forum....

Open Wheel group vows to keep Grand Prix of Denver running

By Mike Chambers
Denver Post Sports Writer

CART employees had their Christmas party in Indianapolis on Wednesday, celebrating the holidays despite myriad concerns about their future with the beleaguered company that races in the Grand Prix of Denver.

For them, a third race on the Pepsi Center grounds is as questionable as CART's future. Unless a new ownership group takes control of many of CART's races by purchasing assets through Chapter 11 liquidation, CART is likely to close its doors, leaving the Denver race without a sanctioning body and future.

"It's probably 50-50 right now," CART spokesman Eric Mauk said. "The guys are looking at the numbers, trying to do everything to not close the doors."

Paul Gentilozzi states things more optimistically. He said Mauk and approximately 50 other CART employees will keep their jobs through the 2004 racing season. Gentilozzi, one of three known partners in a group trying to obtain CART's assets, emerged from a New York boardroom Wednesday afternoon with good news for those wishing to see the racing circuit continue.

"We're working well together and too hard for this not to go," Gentilozzi said after his Open Wheel Racing Series group (OWRS) met with CART's board of directors. "I think we're OK."

He said a vote on the complex deal is scheduled for Friday, and that Denver race fans should start their engines.

"Nothing is going to change as far as scheduling," Gentilozzi said, refuting rumors than OWRS will create a 2004 schedule by cherry-picking the most developed events. "Champ Car will show up in Denver and race. We are buying the assets in a company, the contracts. There is no renegotiation."

Gentilozzi said CART will be renamed, but the series name likely will remain the Champ Car World Series.

OWRS originally offered 50 cents a share to buy publicly owned CART. A deal later was struck for 56 cents a share, and a stockholder's vote was scheduled for Dec. 19.

OWRS, however, bowed out of its original offer last week, saying a number of conditions in the contract could not be met by CART, including commitments from teams to produce at least 18 cars.

OWRS saw an opportunity to acquire the series without inheriting all of CART's liabilities. CART announced a liquidation proposal by OWRS on Dec. 2.

"It's a different way than where we were going, but this is quicker and cleaner," Gentilozzi said.

Gentilozzi said he expects to present affidavits from team owners to a bankruptcy judge, showing OWRS has commitments to field at least 18 cars.

Gentilozzi said one of the team owners will be Carl Russo, who is moving his race shop from Loveland to the metro area.

"He'll have one car, for sure, for a full season, and a second car part or most of the time," Gentilozzi said.

Mauk said only two drivers from last year's group have said they will not compete in the series in 2004. England's Darren Manning has switched to the Indy Racing League and Brazil's Roberto Moreno retired.

The 2004 Grand Prix of Denver is scheduled for Aug. 13-15. The event, owned by Dover Motorsports, began two years ago with a 12-year contract with the city of Denver, Kroenke Sports Enterprises and CART. Dover also owns CART street races in St. Petersburg, Fla., and Long Beach, Calif.

The St. Petersburg race, originally scheduled to be the series season opener, was postponed last week because of concern that promoters would not have sufficient time to prepare after sales negotiations are completed.

Grand Prix of Denver general manager John Frew said the postponement should not be taken as a sign of weakness.

"I've received no hint of that happening to us," Frew said. "I think St. Pete was a unique situation. It was all about the calendar. Fortunately for us, we're eight months away. If the original plan had gone through, they'd still be 55 days out (from St. Pete), less than two months away.

"I'd like to say we're alive for 2004, but we're going to be alive for a long time. We've done the hard part, we've run the race for a few years, got the kinks out of the system."

Jerry Miraglia, Dover's executive vice president, said Gentilozzi and company need to move fast.

"How do you promote something when you don't know what it's going to be?" Miraglia said. "Uncertainly is a bad thing as a promoter."

If the acquisition by OWRS fails, the Grand Prix of Denver likely would die, despite plans by the IRL to expand to road and street courses.

With an annual race at Pikes Peak International Raceway in Fountain, the IRL said Denver would not be among the venues considered for its expansion.

"We don't feel like we have a particular need to take a risk that we don't feel is appropriate, especially (in a market) where we're already at," IRL vice president Fred Nation said. "The Denver race would not be among the half-dozen venues we'd look at. But that may change."

[macdaddy]

Thanks again for the sunny news, Dov!

Gentilozzi said he expects to present affidavits from team owners to a bankruptcy judge, showing OWRS has commitments to field at least 18 cars.

Gentilozzi said one of the team owners will be Carl Russo...

[The Snout]

Thanks for the update Dov, some meat on the bones to keep us going a little longer yet.

[BootsOntheSide]

Nice one guys, thanks for the article, and a good spot that RuSport appear committed.

Where will the 18 cars come form though? This year's 19, minus ASTJ, minus Conquest, minus 1 Walker, plus 1 RuSport? Beyond that probably second cars from existing teams?

[The Treester]

Thanks for the update DOV.

[Dov]

"Nothing is going to change as far as scheduling," Gentilozzi said, refuting rumors than OWRS will create a 2004 schedule by cherry-picking the most developed events. "Champ Car will show up in Denver and race. We are buying the assets in a company, the contracts. There is no renegotiation."

I've never said this to another man before in my lifetime, but I love you, PG! The same goes for KK and GF!!

[Tailwind]

These guys are trying hard to keep the series alive and intact. I've got my fingers crossed.

[paul-collins]

Originally posted by Dov
Open Wheel group vows to keep Grand Prix of Denver running

By Mike Chambers
Denver Post Sports Writer
...
OWRS originally offered 50 cents a share to buy publicly owned CART. A deal later was struck for 56 cents a share, and a stockholder's vote was scheduled for Dec. 19.

OWRS, however, bowed out of its original offer last week, saying a number of conditions in the contract could not be met by CART, including commitments from teams to produce at least 18 cars.

...

Gentilozzi said he expects to present affidavits from team owners to a bankruptcy judge, showing OWRS has commitments to field at least 18 cars.

Does noone else see something inconsistent here? :confused:

[gttouring]

its seems PG is playing a game, saying CART can not field the entries, but OWRS can, so They will not buy out CART as it is crippled, and hopefully buy out the assets and contracts and Go racing ChampCars oooh wah- now if this Cueball can go fix Trans Am that'll be a miracle

[Snrub]

From a dollar and cents standpoint, how can they possibly keep Dever let alone all those other giant $$$ losers on the schedule? I don't believe that Dever is safe, it'll be off just like St. Petes. (BTW: Come one people there is no way it was just posponed!) It's possible Denver is one of the lone exceptions, but then the writing is on the wall for some other race(s).

[corkholio]

Originally posted by paul-collins
Does noone else see something inconsistent here? :confused:

[paul-collins]

http://www.indystar.com/articles/3/101760-2403-036.html

Championship Auto Racing Teams officials, minus president and CEO Chris Pook, met again Friday at the company's local headquarters without a resolution to the proposed sale of the company's assets.

Chief operating officer David Clare, chief financial officer Tom Carter and company attorneys still were studying the proposal Friday. Clare said he could not comment on when a recommendation might be made to the board of directors, who will vote to either accept the OWRS offer or liquidate the company.