“We are not business fools,”

SurfaceUnits · 15 Feb 2004, 18:36 (Ref:874989)

New owners working hard to save struggling series
By JIM PEDLEY
The Kansas City Star
Posted on Sun, Feb. 15, 2004

Kevin Kalkhoven had a ready answer when he was asked if he thought it was possible to turn around the fortunes of a racing series that lost almost $80 million and went bankrupt last year.

Kalkhoven, who was one of the three men who bought the assets of the CART series earlier this month, gave an adamant yes.

http://www.kansascity.com/mld/kansas...ts/7934354.htm

SurfaceUnits · 15 Feb 2004, 19:11 (Ref:874998)

In case you can't get to it.

New owners working hard to save struggling series
By JIM PEDLEY
The Kansas City Star
Posted on Sun, Feb. 15, 2004

Kevin Kalkhoven had a ready answer when he was asked if he thought it was possible to turn around the fortunes of a racing series that lost almost $80 million and went bankrupt last year.

Kalkhoven, who was one of the three men who bought the assets of the CART series earlier this month, gave an adamant yes.

"We are not exactly business fools,” Kalkhoven said. “We intend to make sure the series can operate and grow with the budget we have given it.”

The exact nature of that budget and exact details of the new owners' five-year plan for the series — known as the Champ Car World Series — had yet to be divulged. Kalkhoven and partners Gerald Forsythe and Paul Gentilozzi were waiting until paperwork for their purchase had been completed.

But what is known is that Champ cars will take to the track this season.

“Everybody is convinced now,” Gentilozzi said during a news conference two weeks ago, “there will be a season and racing within 90 days.”

The series is scheduled to get under way on April 18 in Long Beach, Calif.

The new owners have said they expect to field 18 cars for the season. But Gentilozzi said that no one can guarantee the number of cars that will show up for races.

He added, “We talked to teams on a daily basis. We know where they are.”

One of those teams is that of Paul Tracy, winner of last year's series championship.

Upon hearing the news, Tracy said, “I'm glad to say I'll be defending my Champ Car championship and trying for another for Forsythe Racing in 2004.”

Also expected back are Bruno Junqueira, who was runner-up to Tracy last season, talented youngsters Sebastien Bourdais and Ryan Hunter-Reay and veterans Jimmy Vasser and Adrian Fernandez.

Equipment used this season will be almost exactly the same as last year. Chassis will be made by Lola and Reynard, engines will be turbo-charged Fords and tires will be supplied by Bridgestone.

With the challenge of immediate survival met, Champ Car officials must now concentrate on long-term survival. And that means plugging financial leaks that spilled $80 million all over the tracks of the world.

The new owners say they can plug those leaks.

Gentilozzi said he, his group and experts they have brought in have “analyzed that in great detail.”

“We know how that happened,” he said. “We know how to not let it happen again.”

Much of the money lost in 2003 was the result of payments that propped up underfunded teams.

No such payments will be made this year, the new owners say. They said that the new series will offer guaranteed prize money to competitors.

The series also has announced that rules have been implemented that limit the number of people who can travel with teams to 15.

“The roster limitation rule mirrors what we see in the NFL and the NBA,” said John Lopes, series senior vice president of operations.

Gentilozzi said, “We have a five-year plan. We are moving forward with that. We know where we are going. We have a vision and a business plan.”

f1manoz · 15 Feb 2004, 21:28 (Ref:875092)

Quote:

Originally posted by SurfaceUnits
The exact nature of that budget and exact details of the new owners' five-year plan for the series — known as the Champ Car World Series — had yet to be divulged. Kalkhoven and partners Gerald Forsythe and Paul Gentilozzi were waiting until paperwork for their purchase had been completed.

Gentilozzi said, “We have a five-year plan. We are moving forward with that. We know where we are going. We have a vision and a business plan.”

And the details of budget do not have to be divulged. The company is private now. So certain members will no longer be able to get stock market quotes and constantly doom the series.

The lads have a workable plan and will stick to it.

racinthestreets · 16 Feb 2004, 17:57 (Ref:876024)

The exact nature of that budget and exact details of the new owners' five-year plan for the series — known as the Champ Car World Series — had yet to be divulged. Kalkhoven and partners Gerald Forsythe and Paul Gentilozzi were waiting until paperwork for their purchase had been completed.

I assume the paperwork has been signed - via fax was the information from last week. I ask again, where is the information on the schedule, TV schedule, etc??:confused:

Liz · 16 Feb 2004, 19:06 (Ref:876091)

Coming on march the 8th.

b.luther · 16 Feb 2004, 19:39 (Ref:876113)

This sounds really great, I do hope it all comes together and works.

indycool · 16 Feb 2004, 19:46 (Ref:876119)

Does anyone know, or have a link, to confirmation that the closing, in fact, has taken place? Last newspaper story I read from Friday morning quoted a lawyer as saying there was still some minor work to do.

Muzza · 17 Feb 2004, 01:40 (Ref:876460)

Quote:

Originally posted by indycool
Does anyone know, or have a link, to confirmation that the closing, in fact, has taken place? Last newspaper story I read from Friday morning quoted a lawyer as saying there was still some minor work to do.

Quite curious - but not surprising - that you posted that, indycool. I am also looking for such info and I cannot find it anywhere.

If some of you has a link with news on this regard, please post it here.

Thanks,

Muzza

indycool · 17 Feb 2004, 02:06 (Ref:876472)

Muzza,
Finally found this AP story late this afternoon......

<http://www.sanluisobispo.com/mld/san...ts/7967727.htm>

Muzza · 17 Feb 2004, 02:14 (Ref:876476)

Thanks, indycool.

macdaddy · 17 Feb 2004, 19:15 (Ref:877387)

You guys presented the question one day too soon!
The deal was finalized today, including all contracts with promoters, manufacturers and staff. No more paperwork to be signed, and now...
Let's go racing!!!

indycool · 17 Feb 2004, 19:21 (Ref:877399)

Just read it.....schedule and TV next......

Dov · 17 Feb 2004, 20:31 (Ref:877508)

Quote:

Originally posted by indycool
Just read it.....schedule and TV next......

When are we going to hear about the schedule and TV deal....before the March 8-9 2004 ChampCar preview in Long Beach???

indycool · 17 Feb 2004, 20:39 (Ref:877521)

Dov, Mark C. says we COULD. As nearly as I can tell, there are several serious holes in those dikes. St. Pete and Vegas are certainly in question. Portland and Cleveland are in question. Road America is only a verbal deal, I understand, at this point. There's that impossible geographic glut at the end of the season that's floating around.

On TV, a poster who's a TV exec at another forum posted that several small production companies are running around trying to put together a preview video for a network for TV, so that doesn't sound close to done yet, whatever they're going to do.

So it doesn't SOUND close to me on either. It may be closer. Time will tell.

The Snout · 17 Feb 2004, 21:11 (Ref:877567)

INDIANAPOLIS (February 17, 2004) – Open Wheel Racing Series, LLC, d/b/a Champ Car today announced that it has finalized the acquisition of the assets formerly held by Championship Auto Racing Teams and will now commence with the operation of the Champ Car World Series.

“We are pleased that the deal has finally been completed and that we can shift our focus to the racing,” said OWRS partner and Forsythe Racing team owner Gerald Forsythe. “This process has given us a better appreciation of the passion within the Champ Car community and we intend to reward everyone by conducting the finest racing series possible.”

The formal agreement has now reached completion, with all parties signing required documents and transferring appropriate contracts to the OWRS. The contracts include those signed with race promoters and selected manufacturers as well as with employees of the series.

“I have been through a number of business dealings in my time,” said OWRS partner and PK Racing team owner Kevin Kalkhoven. “But this has been one of the toughest. It took a great amount of work and commitment from a lot of people and we are very pleased with the result.”

“We could never have done this deal and kept Champ Car alive without the dedication, cooperation and spirit of everyone involved with the series,” said OWRS partner and Rocketsports Racing team owner Paul Gentilozzi. “We are at the threshold of taking the series to a whole new level and we look forward to many great years with the Champ Cars.”

The Champ Car World Series will now look ahead to its season-opening Toyota Grand Prix of Long Beach April 18, which will kick off a 2004 campaign that culminates with the awarding of the Vanderbilt Cup to the series champion. Defending series champion Paul Tracy will headline a driver roster that will include drivers from around the world including Adrian Fernandez, Michel Jourdain Jr., Bruno Junqueira and Sebastien Bourdais.

The Snout · 17 Feb 2004, 22:01 (Ref:877646)

Dov I don't think anyone has an exact fix on the Schedule / TV info. It was always going to be after the transfer of assets, so now that that has happened the window really opens.

Last I heard it was going to come shortly after the transfer, I haven't seen anything of substance presented to make me believe otherwise.

indycool · 17 Feb 2004, 22:10 (Ref:877654)

Dov, that would NOT be the worst case scenario regarding schedule or TV. I merely outlined the situations that I know of that will be required to be faced before a schedule and TV can be presented. This is what remains to be resolved from CART's "confirmed venues" list from last November, which has obviously changed. If you feel what I posted was in error or you have different information in some way, please feel free to attack the post.

SurfaceUnits · 17 Feb 2004, 22:54 (Ref:877698)

I'm just glad it's a done deal. With Conan having offended the Quebecois last week, racing in Canada could have become a nasty fight.