It looks like the fat lady is coming to the podium

[Jay]

I think Formula 1 will be only race on Ile Notre-Dame in Montreal if anything happened to the CART race.. though I hate to say it, the only rumblings I've heard about any other series possibly going there is...not IRL, not ALMS..but....NASCAR. Again though, just speculation...

[indycool]

Don't know the answer to that on Monterrey, paul....someone else might.

[Tim Northcutt]

To Everyone on this Forum who Hates TG or will not watch IRL:

If you don't follow it already, please come to watch the ALMS...and introduce your friends to it...

I love all forms of racing except NAZ-CAW-WUHR...

and I grew up watching all forms of open-wheeled racing....but your best alternative for good road racing action will be the ALMS....

I don't know what will happen with what we know as CART...but after the news hitting the fan yesterday on the OWRS-CART deal and the serious hit taken on the market this morning, it does not look good...

and it really sucks...

I've enjoyed champ car racing for many years...yes..I follow both the IRL and CART racing...I happen to like what both offer as diferent racing products...but one half of my greatest passion is about to die...

it has ruined my day and it has ruined my winter....so much for my plans to go to St. Pete...

Ohters on this thread and other threads are right....it will be extremely messy with the litigation that will follow in the coming months...

by the time the dust settles, all of the teams and sponsors will be racing elsewhere....

2004 isn't going to happen...it kills me to say it, but it isn't goping to happen...which will mean that 2005 won't happen, either...

[mark_l]

Will they be doing the "Hat Dance" with all the drivers wearing about 6 different sponsors hats, before the slightly oversized female starts to warble?

[Snrub]

I don't like TG but that wasn't what has stoped me from watching much. There's going to be some serious reductions in the way CART operates in the next few years. The IRL has a real chance to get me to watch it more. It is going to take some BIG changes in the way they hold their races.

[corkholio]

IMHO I would say Atlantics is basically a way overpriced version of F3.

[The Treester]

Hey guys listen to Tim about watching ALMS! We need more fans! As a crew member for the series and Grand Am for the past three years, this is 'THE' alternate to road racing in the states! Prototype racing was suppose to be my entry level to CART.

Unfortunately I grew more found of Prototypes than Champ Cars but I have a passion for open wheel racing since club racing. I don't want Champ Cars to die just as much as the next person but if it happens please think about ALMS. Remember there is always passing in ALMS along with 30+ car counts. High tech-Prototypes, fighting-GTS's, and reliable-GT's what more can you ask for!?!?!?!

[Tailwind]

Well, now, I think the "Fat Lady" has headed back to take her seat as three wealthy racing guys are still on the stage...

[The Snout]

Originally posted by Tailwind
Well, now, I think the "Fat Lady" has headed back to take her seat as three wealthy racing guys are still on the stage...

The little lady can go sit down and finish off that plate of humble pie with the rest of them.

[macdaddy]

That was a great post, Tailwind.

[f1manoz]

The fat lady can sit her fat ass back down for all I care. CART ain't going nowhere.

People are reading way too much into the latest news simply because they WANT to see the series die. Or they love nothing better to watch a good thing go to waste.

CART/OWRS will survive, but in a new format, under new ownership with a new set of ideals. And it will continue to produce clean, hard racing and more excitement than any other open-wheel racing series in the world.

And I'll be sitting back with humble pie waiting to cram it down the throats of all the naysayers out there.

[Dov]

Cheers go out to Tailwind, Snout, Macdaddy and f1manoz for great posts!

[indycool]

From the Canadian National Post.....there are errors in it which are obvious to us all, But McAlpine is particularly harsh....

http://www.nationalpost.com/financia...4-2391162D2217

[rush1]

This is a bald faced attempt by three rich men (Forsythe already losing millions on CART) to screw the remaing CART shareholders. It looks like they won get away with it.

"CART spokesman Eric Mauk said company attorneys have advised the board that a bankruptcy court is unlikely to approve any plan that ignores the stockholders"
http://www.indystar.com/articles/2/099231-4242-037.html

This will not end next week. More confusion as the days tick off means less time to find sponsors if this mess is ever settled. Pat Patrick is an example of what CART faces.
"Like many CART teams, Patrick Racing has neither a driver nor sponsor for 2004 and can't do much about either until CART's future is resolved".

Who is replacing Players at Forsythe? Still holding out for that big announcement.

[Dov]

Good morning to you too, Indycool! It's a fine day, isn't it! Welcome to the party, rush1...

[Jay]

I got to this paragraph and realised he wasn't worth reading: "Mr. McAlpine said the size of the cars has impacted revenue. Indy cars, which are lightweight with a specially designed chassis, have less surface area on them for advertisers than do NASCAR stock cars, which use conventional car chassis."

This guy obviously knows very little about the business of racing, or the situation with CART, the openwheel war, etc if he's making a statement like that. It's that kind of mis-guided press that has hurt CART a ton, and is part of the reason there are so many blank spaces on cars. It's a good thing almost no Canadians read the National Post anymore...

[paul-collins]

It took you that far in to discount the writer?

"Ever since the split, CART races have been exclusively of the winding-road-race variety."

"... by 2001, no major U.S. television network was interested in broadcasting any of CART's races." A proper qualifier would be "at the same price." CART had a lowish offer from ABC, and screwed up.

...well, it is the Asper's paper.

[indycool]

As I said earlier, the errors are obvious......

[paul-collins]

Originally posted by rush1
"CART spokesman Eric Mauk said company attorneys have advised the board that a bankruptcy court is unlikely to approve any plan that ignores the stockholders"
http://www.indystar.com/articles/2/099231-4242-037.html

Not sure what that means, since the sale (strictly an asset sale now) is separate from the bankruptcy proceedings. In fact, as an asset sale, it's the only way that money can be generated for the shareholders anyway. And aside from physical assets, the things that are being paid for (sponsorship contracts, sanction agreements, and IP) are probably worth nothing on the open market, sold piecemeal.

However, I don't know how much personal exposure the CART management has, and whether they'll have any protection from litigation in this case or any other, and don't know if the timing of the CEO's resignation (ie before Ch.11 filing) has any effect on this, for him specifically.

[indycool]

paul, this new deal basically takes $5.5 million out of the play -- OWRS' original $7.5 million offer minus its current $2 million offer.

So, the $7.5 million to the shareholders minus whatever CART owes creditors has turned into $2 million to strip the goodies with a finger in the air to the shareholders and leave them holding the bag to wind CART down with whatever it can salvage.

IMO, there are no white knights in the OWRS group for anybody.

[paul-collins]

Oh, I understand that, but if $2 million is what the assets are worth, what was the original 5.5 for? Goodwill?

[indycool]

That probably isn't what they're worth, it's what OWRS is offering because it's positioned CART into a barrel. On one of the SEC documents, CART listed it had $11 million in property and equipment alone. In a bankruptcy, you get things cheap because the target company is helpless.

[Fogelhund]

Paul - This purchase of assets also specifically states that the bankruptcy must be filed by Friday of next week. It would seem that the bankruptcy, and sale are somehow tied.

Obviously, we don't know what the cash balance, or the short-term investment balance is. We can assume it is low though, but perhaps it is enough to take the balance from $2 million to the $6 million.

It makes some sense to follow this line of thinking. Then OWRS are getting the "assets" at the same cost they would have previously, but they are avoiding some of the liabilities that come with CART, and in particular the risk of litigation as a new organization.

[paul-collins]

Originally posted by indycool
On one of the SEC documents, CART listed it had $11 million in property and equipment alone.

If that's currently true, then I don't see this deal going through. Better to take a chance at an auction.

[Ac.]

Indycool - You seem to think that OWRS positioned CART into the poor financial position that they are in. This is a very shortsighted view as CART's slide toward bankruptcy has been well documented over the last few years.

Are the principals behind OWRS shrewd businessmen? Absolutely. Is their plan to destroy shareholder value? No. Private business owners direct their attention towards success in their ventures, which is exactly what OWRS is doing. Shareholders need to remember that if CART goes bankrupt the assets, particularly the intellectual property(Name, Sponsorship agreements, sanctioning agreements, etc.), will be worthless.

Two million may be less than the original bid, but it is still more than $0.