IRL vs. CART

[Argyle]

This feud needs to end, and not with one series just folding. They have to come together and solve their problems

Penske sees an end to CART-IRL feud


TSN.ca Staff

5/7/2003

Roger Penske says the CART-IRL split should be resolved within the next year or two.
Penske, one of the more influential owners in motorsports, believes when the smoke clears, the Indy Racing League will be the one left standing.
"Within the next 12 to 24 months, we'll see this thing shake out," said Penske, who is preparing his team for the upcoming Indianapolis 500. "Economics will play a part in that. CART has made a decision to support a lot of their teams and track promoters. People eventually will say, ‘Hey, do we have enough money to continue doing that?’ If that isn't there, what happens?"
Adding fuel to Penske's comments, CART released first quarter results which indicate the rival series still faces a number of challenges.
While revenues are up to $6.2-million from $5.6-million a year ago, expenses shot up from $7.6-million last year to $20.6-million this year. This is primarily due to the fact that CART is financial supporting its the teams, to the tune of $42,500 per car per event. That accounted for $11-million in the first quarter. CART estimates it will spend $33-million over the course of the year. CART officials say they have more than $70-million in the bank
There have been attempts over the last few years to try and bridge the gap between CART and the IRL, but each time those talks have ended in failure.
Penske, one of the original founders of the CART series, decided to join the IRL after the 2001 season, following a decision by primary sponsor Marlboro. Since then, Chip Ganassi, Mo Nunn, Michael Andretti and Bobby Rahal have fielded full or partial teams in the oval-based series. Engine makers Toyota and Honda also jumped into the fray this year.
"CART has done some positive things," said Penske. "But at the end of the day, we've got (the Indianapolis 500)."
Since the split, however, attendance at the Speedway has waned. Once considered the hardest ticket to obtain for a sporting event, race officials have been advertising the availability of tickets the past few years. It is now quite easy to find a ticket on race day.
"You've got 400,000 seats. If you've got 390,000 show up, you can't really call the event a disaster," said Penske.
Outside of the 500, television ratings and attendance at many other IRL races have been dismal. The cost of fielding a team in the IRL has jumped considerably the last few years, coinciding with the arrival of the former CART teams and the new engine manufacturers. Even the Indianapolis 500 is struggling to field the traditional 33-car field for the race.
There has been increased debate that the IRL will abandon its oval-only format in favour of road and street courses, putting it in direct competition with CART. Earlier this year, the series - which billed itself as American-based - staged its first international race in Japan.
Even Penske concedes that the IRL may have to move away from its founding goals if it intends to add new circuits in the future.
"The IRL is going to have to make the decision as to whether they'll reduce the number of races to accommodate road racing."
Penske, whose team has won the Indianapolis 500 a record 12 times, will be looking for an unprecedented third straight victory on May 25

As much as I hate the IRL, if both sides could come together, and have road, street and oval races only in North America...they might be able to save open wheel racing.

[TheRob]

Too many egos involved Argyle. The two series' will never merge. One of them will have to die.

[Argyle]

I am glad that I don't have to balance the check book...

While revenues are up to $6.2-million from $5.6-million a year ago, expenses shot up from $7.6-million last year to $20.6-million this year.

They are going to need some creative accounting to stay afloat!

[Dapotayto]

As much as I hate the IRL, if both sides could come together, and have road, street and oval races only in North America...they might be able to save open wheel racing.

Was this not the format before the emergence of IRL? Also, is there a difference between road and street racing?

[TheRob]

That would be the Earls finances? The jump in costs would be because of Toyota and Honda and the fact that absolutly no one has goe to their races this year. They aren't even going to till the field for Indy. I doubt it will sell out either. And to top it all off, F1 is thinking about leaving Indy after this year, and going back to Long Beach. Now wouldn't that be a kick in the ass.

[TheRob]

Also, is there a difference between road and street racing?

Road=Permanent road courses. Like Road America, Mid Ohio, Brands Hatch, Portland, etc.

Street=Vancouver, Toronto, Long Beach, Australia, etc.

[Argyle]

While revenues are up to $6.2-million from $5.6-million a year ago, expenses shot up from $7.6-million last year to $20.6-million this year. This is primarily due to the fact that CART is financial supporting its the teams, to the tune of $42,500 per car per event. That accounted for $11-million in the first quarter. CART estimates it will spend $33-million over the course of the year. CART officials say they have more than $70-million in the bank.

I know that CART struggled to put a feild of cars and teams together for the start of the season, but to pay each team $42,000 for each car per race is crazy. This is why, the IRL will not even contemplate a merge. Within the next couple of years CART will not have a dime to their name. I hope that they have some sort of plan to overcome this...but $42,000 a race?

[Dapotayto]

Thanks. I am not a knowledgeable race fan but it seems really watered down by having two separate circuits with the more well-known names split up amongst the two. Money and egos rule sports nowadays I guess.

[Argyle]

NOOOOOOOO!!!!!!!!!

IRL throws wrench into CART sale

Indy racing League is exploring the possibility of bidding on the bankrupt CART's assets.

INDIANAPOLIS (AP) -- The Indy Racing League might bid on the assets of CART, throwing a proposed sale of the bankrupt, open-wheel-racing series into question.
IRL spokesman Fred Nation confirmed Monday night that representatives of the series began examining CART's equipment and contracts last Friday, but the IRL will not decide for several days yet whether to bid on any of the assets. A bankruptcy judge has set Jan. 23 as the deadline for bids.
CART has an agreement to sell all of its assets, including equipment and sponsorship contracts, to Open Wheel Racing Series LLC for $1.6 million US in cash. Because the proposed sale also calls for Open Wheel to assume some liabilities, including 2003 prize money owed to teams, the total purchase price would be about $3 million.
If bids other than Open Wheel's emerge, it could force an auction of CART assets on Jan. 28.
Some of CART's physical assets, such as scoring and safety equipment and trailers, are similar if not identical to those used by the IRL, so it was "only natural" the IRL would be interested in possibly bidding on those assets, Nation said.
CART and IRL signed a confidentiality agreement Thursday allowing the latter to inspect the bankrupt series' assets, Nation said.
Asked if the IRL might make a bid that would bring the CART series into the IRL organization, Nation said it was too early to tell.
"Until we know what the situation is with the assets, and what exactly is contained in the assets, and what strings are attached to the assets, we cannot say what we will bid on, if anything at all," Nation said.
U.S. District Judge Frank J. Otte approved a CART bankruptcy plan that set the Jan. 23 deadline for bids on the series' assets. CART had filed for Chapter 11 bankruptcy protection last month as part of the sales agreement with Open Wheel, which like CART and the IRL is based in Indianapolis.
If any alternative bids for CART's assets emerge, they could be considered during an auction Jan. 28. Without any qualifying bids, Otte could approve the sale to Open Wheel that day.
CART and Open Wheel Racing agreed to sale terms before the bankruptcy filing in hopes of making a quick Chapter 11 exit in advance of the 2004 racing season. Open Wheel's principal owners -- Gerald Forsythe, Kevin Kalkhoven and Paul Gentilozzi -- said Dec. 17 that they could quickly bring the series out of bankruptcy and run a 2004 season with at least 15 races and at least 18 cars.