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TG should buy CART. Here's why...

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  • TG should buy CART. Here's why...

    1. He can end the split in a way that would get the IRL lots of positive press. Wouldn't all those in the media who have been screaming for a merger have to praise TG as the saviour of open wheel racing?

    2. If any of the current CART fans can be brought along this would do it. I'm not sure they matter, but any who care more about racing than hating TG would have no reason not to come along. Even if CART survives the turbos will be gone.

    3. He ends the fued with CART, (there would be no more CART) and prevents another rival OW road racing series from starting and thereby creating a new split. The fact that CART does have some succesful races means that even if CART dies someone else will try to run OW road and street races. Buying CART would make that unlikely.

    4. It doesn't have to cost much. If TG were to buy CART, he doesn't have to come up with teams. He probably could break even on the transaction if CART has much cash left. He could then pay each existing team $1M to cover the additional costs and go road racing.

    5. If he keeps the Indy Car Series all oval with 16 races, and the Champ Car Series all road/street with about 8 races, then neither group of fans should be so upset that they abandon the series.

    6. Now that the split would be over, he can start working on the Dirt Track Series.

    OK, now tell me why this is all a bunch of hooeey!

  • #2
    The downside for any potential buyer of CART is a set of financial obligations which will place CART at an operationg loss of $34 million this year (that's without Pookfare (ESP I + II and Team Assistance)).

    Why buy into a financial quagmire when with a little patience you can pick and choose what you want at your price after CART has folded?
    I wish I knew - Dennis "Cutty" Wise

    When its game time, it's pain time! - Terrible Terry Tate

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    • #3
      It wouldn't be a quagmire for TG

      TG has engine manufacturer support as well as other league sponsors that CART doesn't have. TG could sell of some of the race contracts to ALMS or Trans-AM. He would also probably be able to get significant event sponsorship that CART couldn't.

      Remember a big part of CART's problem attracting sponsors has been the obvious lack of stability. The IRL doesn't have this problem. TG can say that the IRL will be around for a long time and have credibility.

      CART is worth nothing in the hands of the current owners. I believe that the meer fact that TG is the owner would add value to the series.

      CART as a public company and CART owned by TG are two totally different animals.

      Letting CART die would cause another round of media scribes telling everyone how OW has killed itself. Saving CART by buying it would have all of the same describing how TG finally came to his senses and saved OW racing. I think that is worth something.

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      • #4
        c^rt has no value of any kind. It's time for them to die and go away. Period. Tony would be nuts to even consider such a thing.

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        • #5
          Re: It wouldn't be a quagmire for TG

          Originally posted by dizzybill
          Saving CART by buying it would have all of the same describing how TG finally came to his senses and saved OW racing. I think that is worth something.
          Except 95 percent of current CART fans would be deserting the series in droves, leaving it utterly devoid of purpose.

          A CART controlled by Tony George would be worse than no CART at all in the eyes of the fanbase.

          The vast, VAST majority of current CART fans will never, I repeat, never support any racing series controlled by Tony George. That's a simple fact.

          If CART dies, watch for the return of F5000...

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          • #6
            I agree. Most of the CART fans would go away and follow something else. Fine with me.
            Proud to be a complainer.

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            • #7
              Re: Re: It wouldn't be a quagmire for TG

              Originally posted by FCYTravis
              Except 95 percent of current CART fans would be deserting the series in droves, leaving it utterly devoid of purpose.

              A CART controlled by Tony George would be worse than no CART at all in the eyes of the fanbase.

              The vast, VAST majority of current CART fans will never, I repeat, never support any racing series controlled by Tony George. That's a simple fact.

              If CART dies, watch for the return of F5000...
              Maybe.

              Maybe Not.

              The hard core fan base does things like show up at the "Town Meetings". I was at the Portland Town meeting and there were maybe 800 people. That's it.

              There were 45,000 or so at Portland (60,000 if you believe the attendance) If all 800 "hard-cores"bail , there are still plenty of fans that would watch Indycars on RC's. But then again, I doubt they would race at Portland anyway.

              Besides. I am a pretty hard core CART fan (the racing, the cars and the personalities more than the management, obviously). I was at the Town Meeting and I still watch TG's sanctioned roadies. (Granted, I'd hope the cars eventually got spec'd a bit lighter somehow.)
              Last edited by dreamracer; 07-29-2003, 06:48 PM.
              Rest in Peace, Miles Nelson

              Never forget, 'Mackie' was here.

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              • #8
                TG buying CART would be the smoothest transition for the fans and the promoters of the events that TG would want to cherrypick. Of course, some extremist need CART to die so they can come here and pound their chest. Yea, like they did anything to make a difference. TG is no dummy he'll do the smartest thing for the growth of the series. If CART falls apart and some of these events have to be postponed for a year, will they be worth much later? TG has spent so much on revising the track, keeping the IRL going during the early days, giving a couple sprint racers a chance, what is another $10mil to build the series into a mass- appeal product?

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                • #9
                  Why would TG open himself up to be sued by John Vaninni? Unfortunately for CART, JV is just waiting to slap somebody with a lawsuit and the deeper the pockets the better. CART's actions in the last 12 months in regard to information they have put out to the public (via Pook at various townhalls and conflicting financial updates have made any real deal almost impossible. As soon as someone makes a play for CART you can bet the lawyers will pounce and they have plenty of ammunition.

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                  • #10
                    You judge the "hard core" by how many show up to a town meeting?



                    I'm sure there are more than 800 people in Portland who would stop showing up to the race should the IRL take over that event.

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                    • #11
                      Originally posted by AdamM
                      Why would TG open himself up to be sued by John Vaninni?
                      I believe the stockholder suit would be directed at the BoD and with whomever they have supposedly colluded to drive down the stock price. I somehow doubt that TG would be a party to these shenanigans. Mind you, I don't believe CART is deliberating manipulating the stock price. Pook might be a liar, but I do not believe he is a criminal.

                      I think it also would be possible to sell the "assets" of the corporation and leave the liabilities with the shell. The only assets that amount to anything are the Miami race and the race contracts. Possibly the name brand, but that's been drug through the mud. Sell the race contracts, the trademarks, do a shareholder cash disbursement and let Vannini sue what's left.

                      Pook appears remarkably inept at running a public company. Surprising since Dover Downs is public. Promoters are good at promoting and that leads them to overstate and exaggerate - something a CEO in the post-Enron/WorldCom world really can't do.

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                      • #12
                        Re: It wouldn't be a quagmire for TG

                        Originally posted by dizzybill, snipped for brevity:
                        Letting CART die would cause another round of media scribes telling everyone how OW has killed itself. Saving CART by buying it would have all of the same describing how TG finally came to his senses and saved OW racing. ...
                        No, they wouldn't. In fact, FCYTravis's post is a good indicator of
                        exactly how they'd write about it.
                        "I didn't hear a single comment about airboxes, "carbashians", or how terrible the car looked. I did see dozens and dozens of little kids in awe of the speed and how cool the cars looked. We should learn from our children."
                        --Danny Noonan

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                        • #13
                          I agree, jjj....but I wonder what those contracts are worth if everyone knows they can't deliver on them.

                          Although there are many of us that are passionate about the sport on these forums, these forums don't represent the HUGE general public that watches races. There are a great many more who go to and enjoy their local CART or IRL races who don't even know -- or care -- that there WAS a split. The folks at [email protected] are loud, but they're a drop in the bucket.

                          This is why TG isn't going to have anything to do with buying CART. He doesn't need to. With the IRL, he merely just needs to tend to business within the landscape before him....whatever that is.
                          "The lunatic fringes on both sides need to be written off." -- stnky pete

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                          • #14
                            In the real business world...you don't save your competitors from themselves.

                            You either wait until they die, and grab the business at a profit, or their current business partners are coming to you looking for help before they are left in the lurch by the company going out of business.

                            Either way, you are in a position of power, and you can pretty much dictate the terms.

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                            • #15
                              Originally posted by indycool
                              I agree, jjj....but I wonder what those contracts are worth if everyone knows they can't deliver on them.
                              I would imagine that there are 4 potential customers - ALMS, ProSCCA, Grand-Am, IRL. That makes a market. Even if CART cannot deliver the goods, racing at the venues is worth something to each of these sanctioning bodies and so there is a price to the asset.

                              Although there are many of us that are passionate about the sport on these forums, these forums don't represent the HUGE general public that watches races. There are a great many more who go to and enjoy their local CART or IRL races who don't even know -- or care -- that there WAS a split. The folks at [email protected] are loud, but they're a drop in the bucket.
                              The folks at that site are load, they are a drop in the bucket but I think there is a large segment of the population that does care. Why else are both the IRL and CART irrelevant? The IRL's attendance performance at going into CART venues is poor - all of the folks who've avoided these races cannot be on that site and still maintain that the folks who are active there are a drop in the bucket. Got to mean that the unwashed masses are paying attention to the political shenanigans.

                              This is why TG isn't going to have anything to do with buying CART. He doesn't need to. With the IRL, he merely just needs to tend to business within the landscape before him....whatever that is.
                              If he tries to venture into the road/street market without some type of a reconciliation, it's going to look real ugly attendance wise. I could be wrong, but I', basing it on what already has happened.

                              Comment

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