Championship Auto Racing Teams Acquires Miami Street Race

The Snout · 11 Mar 2003, 00:13 (Ref:532231)

Some good news.

INDIANAPOLIS (March 10, 2003) – Having made a successful return to the Miami market with the Champ Car World Series in 2002, Championship Auto Racing Teams, Inc. (NYSE: MPH) ensured the long-term future of the Grand Prix Americas event today when it acquired Raceworks LLC, the Miami-based company that was the promoter for last season's successful race. The acquisition gives CART the license to conduct a street race in South Florida for the next 15 years, and also gives the company 100 percent of the equity in the Raceworks entity.

“We are pleased to have taken these steps to secure the Miami race for the foreseeable future,” said CART President and CEO Christopher R. Pook. “As I have often said, I believe Miami to be the gateway to what is a very important Latin American market for us, and the fact that we can showcase our teams, drivers and sponsors in this market is a key point for us and for our future.”

In addition to the Latin American market, the race gives the Champ Car World Series a solid foothold in one of the key U.S. urban markets, keeping the series in step with the successful business model that has brought races to major cities such as Los Angeles, Denver, Tampa/St. Petersburg, Cleveland, Portland and Milwaukee.

“I am extremely pleased that with the staging of the inaugural Grand Prix Americas last October my dream has been fulfilled,” said Peter Yanowich, co-founder of Raceworks, who helped bring the street race to Miami. “With the acquisition of Raceworks, LLC by CART, I am turning the reins of this important project over to one of the greatest race promoters this country has ever seen, Chris Pook, and the staff he has assembled at CART, including (Grand Prix Americas General Manager) Chuck Martinez. I am confident that they will bring great leadership, experience and financial support to enable the Grand Prix Americas to continue to be enjoyed by South Floridians for many years to come.”

“The racing fans of South Florida have always been supportive of world-class racing,” said Martinez. “We look forward to producing an incredible event worthy of them and the City of Miami.”

CART will own and run the event beginning in 2003, taking over the promotion of the race as it has with five other races this season. Coming on the heels of a successful event last year, the series is already taking steps to improve the 2003 race, including the construction of a new section of the track that will result in the temporary circuit extending further to the North along Biscayne Boulevard.

“Aside from bringing together two premier races with the Champ Car World Series and the American Le Mans Series, the Grand Prix Americas adds to the list of world-class sporting events taking place in Miami,” said Mayor Manny Diaz. “With ownership by CART, the Grand Prix Americas can only get better.”

The Grand Prix Americas – the 15th round of the 2003 Bridgestone Presents The Champ Car World Series Powered by Ford – will be held September 26-28 with the Champ Cars taking center stage along with the cars from the American Le Mans Series on the streets of Miami.

Flatspot · 11 Mar 2003, 01:04 (Ref:532258)

This is great news. A smart move on behalf of CART. I really like the coupling with ALMS. Sure beats the hell out of the news of race cancellations.

The Snout · 11 Mar 2003, 01:06 (Ref:532259)

15 years worth of tan's and tits in Miami.

Good one Cart.

Snrub · 11 Mar 2003, 01:29 (Ref:532281)

Who gives a f|_|ck, they're not racing at Elkhart...

Lee Janotta · 11 Mar 2003, 01:34 (Ref:532285)

See, this is what I'm talking about... They're willing to promote the Miami street race themselves, but they want to charge a sanction fee for Elkhart? I think Pook's smart, I just don't think his priorities are really in order.

And that Miami course is CARP, and they've done almost nothing to improve it since last year!!!!!!!

Tailwind · 11 Mar 2003, 01:50 (Ref:532294)

CART must not have spent too much money bringing in teams if they can afford to buy Raceworks. I sure wish they would get the Road America thing worked out. I can't stand to see that race off the schedule.

Tailwind · 11 Mar 2003, 01:51 (Ref:532296)

Sorry. The last line should have been in a different thread.

macdaddy · 11 Mar 2003, 19:34 (Ref:533108)

Instead of buying the Miami GP, they should've bought Michigan Speedway!

Signed, Wishful Thinker

corkholio · 12 Mar 2003, 05:33 (Ref:533510)

Wonderful. Drop the best road course on the schedule so you can take over a track that makes the Hungaroring look like the Nordschliefe.

Flatspot · 12 Mar 2003, 12:14 (Ref:533712)

One has nothing to do with the other.

impact500 · 12 Mar 2003, 15:55 (Ref:533927)

<<CART must not have spent too much money bringing in teams if they can afford to buy Raceworks.>>

CART reports that the acquisition was a small cash transaction. I suspect the key was Raceworks' $2 million loan that CART guaranteed. CART was perhaps in a box and had to buy RW to insure continuing the race. I suspect we can draw no inference re ESP 1 and 2 costs.

indycool · 12 Mar 2003, 17:08 (Ref:534013)

Agreed, impact500. CART had to guarantee the $2 million loan, payable over five years so that Raceworks could hold the race at all last year. In its 3rd quarter 10Q, CART reported it had an ADDITIONAL $5 million in expenses for the race, meaning they essentially took it over anyway. When it was said it was a "small cash transaction," I took it to be over and above the $7 million it had already spent to get the race off the ground. All they were buying is a 15-year deal to hold races there. Raceworks had no assets.

indycool · 12 Mar 2003, 17:10 (Ref:534014)

And Lee, I agree with you. Elkhart's a treasure that they're arguing about $375,000 over. And CART's not $7 million in the dumper with it.

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