Soon to be made official: Penske ditches Cart

[Jay]

(Nov 4) ROCKINGHAM, North Carolina (Ticker) -- What has long been expected likely will become official very soon when Roger Penske, the winningest team owner in Indy car history, will leave CART to join the rival Indy Racing League next season.

Penske Racing driver Gil de Ferran won his second straight CART championship last weekend at Surfer's Paradise in Queensland, Australia, and will join reigning Indianapolis 500 champion Helio Castroneves in the IRL next year.

Penske and de Ferran will be in Las Vegas on Tuesday night to collect $1 million for successfully defending their CART championship. Penske is expected to hold a news conference next week in Indianapolis to announce he's joining the IRL and leaving CART, a series he helped launch in 1979.

"Roger told me he was out of CART, period," CART team owner Morris Nunn told ESPN.com's Robin Miller on Sunday at California Speedway in Fontana. Nunn had a two-car CART entry in 2001 and will be running one car in CART and one in the IRL next year.

For de Ferran, the switch to an all-oval series means the talented Brazilian will not be driving Penske's entries on street and road courses next season.

"I don't know what is going to happen, but, naturally, I would miss road racing because that's what I grew up with," de Ferran told Miller. "But my allegiance is to Team Penske. My greatest ally is this team, and I don't take that lightly."

De Ferran and Castroneves both have one year remaining on their current contracts.

It's the latest -- and perhaps biggest -- blow to CART this season as Penske Racing set the standard for the series since its inception. However, with leadership problems leading to some of CART's troubles this year, Penske has become upset with the direction the series is heading.

Penske vocally objected to CART's decision to leave Michigan Speedway -- a track he owned for more than two decades -- at the end of the season.

Penske believes the IRL schedule competes in markets that will benefit his team's sponsor, Marlboro. The sponsor was unable to reap full sponsorship benefits at this year's Indianapolis 500 because of the tobacco settlement that limits cigarette sponsorship to one series.

In 2002, that series will be the IRL, so the Marlboro livery will return to the Indianapolis 500, where Penske is the winningest team owner with 11 victories. That includes Castroneves' triumph last May.

Well, I've always liked Helio and Gil...I've had my doubts about Roger... but I won't be going for any of them now!

[Jimmyz360]

I just hope that they come up with a conscious in a couple days, because I fear this is very true by the way Roger answered that question in Australia and the way DeFerran talked about going with Roger, I think he already knew. It will surely be the death of CART and also my anger for Roger and his organization. But the most important anger is in Helio and Gil, ditching to stick with Roger, how nice of them. I thought they WERE my favorite drivers, now I will reconsider.

[MaxSport]

The sooner fans understand that choices in the sport are made for business reasons, the sooner they can let go of their anger.

The Captain is not leaving CART because he prefers the IRL. He has seen the handwriting on the wall and knows where the future is.

His sponsor,Marlboro US, doesn't care about running in Japan,UK or Germany. Since P-M USA pays the bills, they call the shots. Can you blame them for spending their money the way they chose?

The people who actually buy Marlboro are the retailers. Most US retailers would rather be treated to a trip to Indy as they are not fans and all they know is the 500. Trade promotions are at least half the reason that P-M does motorsport.

Besides, the "exposure" recieved at Indianapolis alone is likely worth a whole year of CART to Marlboro. Since IRL will cost them about half the money they would have spent in CART, P-M is going there as it is better value.

How can anyone blame the drivers?

Some fans act like this is some club that the teams and drivers all belong to. Remember that it is just a business, not a religion.

Kurt Maxwell
MaxSport
Indianapolis,IN

[Ray Bell]

A well-reasoned response there, MaxSport... even if it effectively defends the evil of the cigarette makers.

The money has to flow for the cars to go, one would have to say. The money only comes from exposure for the sponsor, end of story.

It's ironic that Penske is one of the original defectors that set up CART... probably the prime mover in it all...

[Crash Test]

You've got to remember Penske is no longer on the board of CART etc, and essentially, he goes motor racing in his spare time. If someone is prepared to pay your way in one class over another, why not go for it?

CART isn't really in trouble- unless many of the other teams jump. CART still has good competitor numbers, it won't stop while it still has people willing to compete in their series.

[paulzinho]

I really hope this isn't true, but i'm afraid the IRL organistaion appears to be superior, despite the clearly inferior drivers.

[Liz]

"It's just a business" is the same attitude that wrecked ice hockey. I also think it's a bit cold-blooded that you support Gil's "loyalty" to Penske['s wallet] but think our loyalty to Champ Cars [as a series]is wrong.

Well that was a wonderful championship year for Gil and I'm sorry that I won't see him racing any more, and it's too bad Helio will never win a championship ... unless he gets a good offer from Ganassi next year and comes back.

But Gil's finished as a racer and that's too bad.

[paulzinho]

Actually I'd love to see the IRL fall flat on its face! Tony George seems to know how to ruin single seater competition, maybe F1 should give him a call?

[f1manoz]

Roger won't be going anywhere. This, at the moment anyway, is all just rumour and innuendo. Let's just wait a few days.

Roger is a smart man and won't be showing his hand yet.

[domaza]

Nothing official yet guys & Liz. Why does people here think if Penske leaves CART, CART is dead? CART is having hard times and IRL actually even harder times... IRL has INDY 500 and that's it, but CART has international success. Marlboro may be leaving, but that is their's choice and new (international) sponsors will come to CART. Which all the best to CART in 2002!

[Hans.ca]

MaxSport is quite correct. Marlboro is forcing the switch to IRL simply because of the tobaco advertising laws.
In all the time that I have known Roger Penske (since he was driving the Zerex special)he always based any decision he made on good business. He is the only car owner that I have ever known that almost every year had to turn away sponsors rather then hunt for them. I would not be surprised to see a full fledged Penske team entry ( one car) in CART next year. He has the people and he will have a sponsor.
As for IRL, I understand that Tony George has cut back financung some of the marginal teams. Once you get a couple of high money teams like Penske the privat entry marginal finanzed teams will die a natural death.

[Liz]

I don't think Champ Cars will be dead without Penske. But since I don't watch Brand X Racing, I won't be seeing Gil any more.

Our paper says that, [if] the announcement is made, [only] Gil will be driving for Penske in Brand X Racing next year. Anybody want to put money on Helio turning up in a Target car? What better deal for Champ Cars, Helio and Ganassi than that?

Then Penske can run some All American has-been [Come Home Little Al--All Is Forgiven?] off the back of the grid in the second car, turf him out to put an [American] NASCAR driver in for the 500, and not have to pay the backmarker real money meanwhile. Gil wins the 500 and then retires, and Penske can hire another American has-been for the first car and become a hobby racer, writing off his losses on his taxes and fading back into the woodwork again.

How's THAT for a cynical, cold-blooded, financially sensible business plan?

[Neil C]

CART corporate offices, as well as Penske's and many other teams and suppliers are in the Detroit area. It may only be symbolic, but the irony that CART lost both "home" races next year (MIS and Belle Isle) tells me that they let their own series get away from them. Similar to how USAC let it's series get away from it, leading to the formation of CART.

Whatever the fate of CART or any other sanctioning body, it is not the end of anything, but it is a significant milestone in the evolution of motorsport in North America.

Speaking of which, has anyone heard about the rebirth of IMSA as a way to re-establish the Trans Am series? Anyone who recalls the heyday of IMSA racing will know what sports car and sedan racing could (and should) be.

[domaza]

CART is going to move their's hearquarters to Las Vegas as far as I know and they are trying to get Las Vegas night race next year.

[ghinzani]

Originally posted by Neil C

Speaking of which, has anyone heard about the rebirth of IMSA as a way to re-establish the Trans Am series? Anyone who recalls the heyday of IMSA racing will know what sports car and sedan racing could (and should) be.

I thought the ALMS series was gonna take that IMSA name!

[Liz]

That's correct - Don Panoz has purchased the rights to IMSA. It was announced at Road Atlanta.

[macdaddy]

Where did I hear this within the last few days? I thought it was here on TenTenths, but I can't find it now...

Helio will be campaigning the IRL for Penske and Marlboro. Gil will remain in CART for Penske and Mobil-1. Meanwhile, Penske South Racing will close its NASCAR operation to free up the Mobil-1 sponsorship.

Anyway, I don't believe it. I just have this gut feeling that Penske is going Brand-X with both drivers. But this does not mean that I will no longer be a Penske fan. Or a deFerran fan. Or Castroneves. What this means is that now I'm going to start watching IRL events. Needless to say, I wish that none of this were happening. But it is.

As I quote MaxSport, "The Captain is not leaving CART because he prefers the IRL. He has seen the handwriting on the wall and knows where the future is." Penske is not a stupid man. Surely he's better educated than I when it comes to predicting what's going to happen after next season when the engine manufacturers are gone. In fact, I wouldn't be surprised if the Penske team is but the first to jump ship. I can see Ganassi or Rahal doing similar. Even TKGreen. But don't misunderstand me, this is not my wish. I want to wake up tomorrow and find that this was all just a bad dream. That CART is doing fine, that they've got four engine manufacturers now, the Detroit Grand Prix is all set for a warm Sunday in June, and everybody's happy.

[Liz]

Then why not dwell on the positives, and the fact that all this doom and gloom is simply rumours, instead of putting on sackcloth and ashes before the (still greatly exaggerated)reported death of open wheel racing actually occurs? If we keep telling people the series is dead, we will be instrumental in its death. Because who wants to try to follow a sport in which weeping, wailing and gnashing of teeth is all you ever hear? Most people come to a sporting event to be entertained. Not to hear people snivel. Cheer up you guys!

As for the Penske Story, until I hear directly from the Captain himself what his plans are, it's all rumours and not worth getting panic stricken about. Remember a couple of months ago when everyone started wailing that Speedvision was going to become a 24 Hour NASCAR Station? How much time did we waste on that one?

I say calm down and we'll deal with the emergency if and when it actually arises.

[Emfa]

Originally posted by Liz
...
I say calm down and we'll deal with the emergency if and when it actually arises.

Also, may I suggest... put aside a few pesos for next year and plan to get along to a race (or races). And take some friends. If we all stay home and cuss about what might happen, it just might.

[Speedworx]

Ok. Penske will be responsible for my death.

Once again money does the talking. Penske goes where Marlboro want s to go. Marlboror wants to do the Indy 5000, so Penske is dropping CART!

Sounds stupid to me, but the fans are never thought about. We might as well just stay at home.

[MaxSport]

macdaddy-I too prefer CART as I prefer roadracing. I am not here as an IRL cheerleader. The facts are that things are headed the way they are for a reason.

I was at Houston, an event that many feel is held on a Mickey Mouse circuit, and that race had a much bigger time feel than any IRL show, barring the 500. So I do understand what people are saying when they are depressed about the prospect of CART going away.

The fact is that IRL is more cost effective. Part of that is that the IRL don't go globe trotting like CART does. Again, AMERICAN sponsors, even if they are multinationals, don't care about going to the UK or Germany. Europe is the province of their Euro counterparts.

Autoracing1 ideas for CART never come about because they are ill conceived. They are nice dreams, but just mental masturbation.
I do hope he enjoys his 15 minutes of hanging out.

Mr. Vannini and the others may own many shares of CART stock. So what? Even if they get control, there won't be any teams there as they all will be racing in the IRL if the formula is not changed. (I guess GF will be there, but how can 3 or 4 cars be a race?)

The only way for CART to survive is to adopt the IRL formula and cooperate with TG. Maybe then Tony won't have road course events and make CART totally redunant.

As far as Mobil 1 is concerned, The Captain has a little more control over that as his Penske Auto concern is the key to that deal. I can see him saying that he wants to have them be his CART sponsor in 2002 and Mobil telling him "just keep featuring our oil and we are fine with that".

The fans don't have much say. It is like politics, if not life in general. You go much of you life thinking that things are a certain way. Reality is much different than what we are taught, like it or not.

Kurt Maxwell
MaxSport
Indianapolis,IN

[KC]

Its almost a guarantee that Roger Penske is not liking this deal at all. I know that there has been a lot of bad blood between Tony George and him. Some of it got very personal based on the articles I remember from the time when the IRL was formed. But, Marlboro pays the bills and they are forcing the direction of the team now. I for one am going to let them (Penske and Marlboro) know my displeasure. It won't make a damn to them but still I will be heard.

Should Penske's leaving bring about a cascade of teams deserting CART I will be contacting every sponsor I can get a name on and let them know my thoughts on this matter. I urge anyone else to do the same no matter how you feel. If you like the move then tell them, if you dislike the move, tell them. If you are like me and frustrated by the whole group's inability to see themselves through this, be polite and be concise and let them know that you are no longer interested in purchasing or using their products and exactly why you feel the way you do.

As far as the IRL being somehow a much better PR deal than CART I feel I must disagree. I don't think it is somehow better than CART is right now. For a company like Philip-Morris, who has their brand on Ferrari's F1 cars, the money they spend in CART is probably smaller than their budget to entertain guests at every Grands Prix. And then when you see that they cannot run their branding on the F1 car at certain events, especially the one in their biggest sales market and their home country, where is the logic in it to be at Indy? What do they truly gain? One race instead of 19? The only other IRL event that regularly draws half a crowd is Texas. Over 2.1 million people saw the Marlboro brand trackside this year during the CART season every lap the cars managed. While ABC Sports did their damnedest to destroy any TV ratings that CART could have made they still drew more viewers in America than the IRL. Their international coverage compared to the IRL, which is not exactly chump change, was massive compared to the much cheaper to sell IRL.

The idea that racing in the IRL is cheaper is one of the gigantic myths of motor racing. If you want to go out and beat Kelley Racing or Panther Racing, you need to spend the money to do it. Eighty percent of the teams in the IRL are subsidized by Tony George out of his pocket so they can just make the races. When Penske, Ganassi, and Nunn show up next year they will raise the bar higher due to their logistics alone. Much less being able to hire better drivers, better engineers, and rent more track time. All Tony George has sought and hoped to gain is control. He wants to wield the power his grandfather had with USAC before the days of CART. What he is doing is alienating a huge part of the 2.1 million person group of viewers in some vain hope that NASCAR fans will begin to watch.

If I want to watch stock cars turning left I will watch the best in the world do it in NASCAR. If I only want to watch open wheel cars turning left I will watch the most exciting World of Outlaws sprinters. What I want to see is some of the best racers in the world, racing in a diverse series, with technologically advanced equipment that does not have to cost the GNP of a medium sized country (ala F1), where a driver with great skill can drive his car to a win and a championship. Neither the IRL or F1 offers this to me, CART does.

The downfall of CART came when ABC Sports signed to air the Indy 500 for the next 10 years back in 1995. Since they also carried the CART races, we suddenly began to see races being cut short, coverage turning into a joke, and the entire series being deliberately undermined by the leaders at ABC just to bring about this problem. Its not about it being expensive, since ABC Sports has made sure that ratings will suck and continue to fall they have made it too expensive for some of the sponsors and manufacturers to maintain their level of investment. The IRL damn sure is not the answer, 80% of the cars on the track carry little or no sponsorship. The title sponsors of the series only lasted a year or less. Only Kelley Racing actually made a profit last year and they didn't even win the title or the Indy 500. So how long until it all just folds up due to lack of interest? Will all of their egos be salved when it all comes to a screeching halt? Is that what they all want?

[MaxSport]

KC-with all due respect, the deals that are done have so little to do with consumer marketing that it doesn't matter what we think.

I will give you three examples-

Target- why would they care continuing in CART and running in Europe? Even if it is on TV, it is tape delayed.

The vendors pay for the program. All they care about is shelf space.
I know this as I once asked a battery company who I was pitching another shelf space deal to how they liked their Target program. "Did you find that people came into Target looking for your batteries?" I asked. " We don't care about that", all we know is that we had an X %increase in sales due to the upgrade in placement of our product in their stores."

Marlboro- while the branding on the cars is important to a tobacco company, the trade promos are likely more so. Again, in store features of product that get agreed to at racing events are a big reason that P-M is involved. I use this example again as they are the first "traitor" and one who you would think "exposure" and brand loyalty is important to.

Well known CART sponsor who shall remain nameless as I am still working on something with them- "I really question the value of our name on a race car going 200mph" "We are involved in CART as we are currently the exclusive vendor to a certain car company." This as I am telling the person there about another B2B opportunity.

Lastly,there are not enough hardcore fans to make a difference. Most folks who go to CART or IRL races are casual fans. Maybe not fans at all, just people who are doing something unique on a Sunday afternoon.

Again-it is not like we think it is.

Want to write someone? Try the tracks. They are the ones who make money off you and may respond to your desires.

KM

[KC]

What you said about Target certainly makes sense. I know they do not have stores outside North America and maybe not even in Mexico or Canada. So races in Australia, England, Germany and Japan hardly do anything for them.

But then, why does CART work for companies like Player's or Hollywood. They do not sell their product in America as far as I know. I do not see it on the shelf. In fact their markets are extremely limited. The reason they do is because their advertising dollar goes further because they do not get the ABC Sports neutered version of the program aired in their country. They get to see the entire race, they have their own pre-race show and post race interview program. We, the single biggest market for CART, get the show that gets shuttled off to another channel or flips to tape delayed women's professional bowling from 2000 as soon as the checkered flag falls. We get the Paul Page remarks just after a commercial break that "While you were gone [for 7 minutes] nothing has changed." This whole deal stems from the fact that TV viewership is down. That makes the number of people who saw the adverts a lot less and increases the dollar amnount per viewer. Don't tell me that any sponsor does not look at Nielsen ratings and say it does not matter that no one is watching. They all do it. They live by it. Their advertising execs count the seconds their banners and signs are on TV to justify the expense and then balance this against how many people watched. Do you see billboards for products on the farm to market road? No. But you see them on the highway. ABC Sports is getting what they wanted all along. They got into bed with Tony George and now they have to kill off the competition to support their own flawed decision. How convenient for them that the competition is under their heel.

[philneast]

Actually we do have a large Target brand of chain stores in Australia as well as lots of K marts.

They are a franchise from the US parents so the racing programs add value to the local operators. It may not be enough to justify the teams but it is there.