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Last Chance to read CART financials... Get it while you can.

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  • Last Chance to read CART financials... Get it while you can.


    If it doesn't have wings... It isn't worth talking about!

  • #2
    Dog gone it!! Now we'll have to speculate about Cart's financial losses the same way we speculate about the irl's.


    • #3
      You're quite incorrect, but humor is always appreciated.


      • #4
        We will have access, however, to the transcripts of all the courtroom trials with which they will inevitably become embroiled.

        Supporting Indy Car racing since 1959


        • #5
          No Russo.
          No Pollock.
          No Newman.
          No Bernie.

          No choice for the stockholders.

          Oh, a couple of other things jumped out at me:

          The amount of money needed to close the deal was left blank. Later, it appears that they have budgeted $4 million. Won't be enough when the lawyers get started. And they will.

          Ernst and Young say this is a good deal. They also say that sanction fees will go up and that team support payments will go down from $60 million to $2 million despite there being no schedule yet, no new promoters, no new team sponsor deals. Note to self: Check IRA's and mutual funds, make sure no money is invested through Ernst and Young.

          Looks like Pook is being kicked aside. Hello, Joe, where ya been?

          CART's money will be exhausted during the 4th quarter of 2003. Gosh, when Forrest Bond said that last fall, the CART fans screamed like eagles.

          They note that they sat on Haas' resignation but don't say why.

          I'm no attorney or stock expert but I did see that non-votes are considered as 'no' votes. OWRS needs a majority of the votes cast excluding Forsythe's. That may not be a slam dunk.

          The document lays out in gruesome detail the losses and the track record of the stock. The blame is shifted elsewhere and no time is spent on "what if.." What if somebody at CART had used some intelligence and not burned through $100+ million.

          To quote a gal that works with me, "This deal stinks like yesterday's diapers."


          • #6
            Interesting on page 42: MPH cites "reduced race attendance" since 2001 as one of its problems. Weren't we hearing all that loud talk last year that every race set an attendance record?

            The projection at the end of August was that MPH would have $134.8 million in expenses for 2003 and a loss of $83.7 million. As of Sept. 4, it had $21,668,667 in cash assets. Both are almost to the million of what Forrest Bond predicted at the start of the year.
            "The lunatic fringes on both sides need to be written off." -- stnky pete


            • #7
              But ....but....but...C^RT is gaining momentum
              Tara was the name of our cat.


              • #8
                Incidentally, speedvis, it won't be the last. MPH.BC still will be filing a 10Q for the third quarter since the third quarter's over and this merger can't take effect before next month's filing deadline for it.
                "The lunatic fringes on both sides need to be written off." -- stnky pete


                • #9
                  There won't be many surprises in that 3rd Q release since the proxy statement outlines the mounting losses and the terrible financial condition CART is in.

                  They're broke. If the OWRS deal doesn't fly, they're done.

                  Now, of course, comes the speculation. If the stockholders do vote in favor, if OWRS takes over, how are they going to make it? How can they field 18-20 cars with only $2 million in help?
                  How are sanction fees going up?
                  What happened to MotoRock! No mention.
                  Who is going to promote races since OWRS is getting out of promoting?
                  The proxy statement forecasts losses for at least the next 2 years under very optomistic scenarios. Who's going to stand those losses, how much is Kalkhoven going to commit?

                  'Don't worry,' says speedy. 'This is all part of the plan. Besides, when CART is private, nobody will know.'

                  It looks to me like OWRS will follow in CART's footsteps and simply run out of money. They'll privately go broke.


                  • #10
                    Look at the Golden Parachutes: Pook gets $648,540 as a consultant over the next three years. Clare, Carter and Lopes have redone employment contracts with severance of over $600,000 each if terminated. There's another couple mill for the big kids.

                    Merger also provides a carryover of liability insurance for past and present officers and directors from completion of merger until May 15, 2004, after which OWRS will continue it with a total extended cap on premiums of $500,000. Vannini'll love that one.
                    "The lunatic fringes on both sides need to be written off." -- stnky pete


                    • #11
                      As note before, OWRS can walk away if any suits get filed. CART has to fight any suits against the merger:

                      - in [CART's] case, defending any lawsuits or other legal proceedings, whether judicial or administrative, challenging the merger agreement or the completion of any of the transactions contemplated by the merger agreement, including seeking to have any stay, order or injunction entered by any court or other governmental entity vacated or reversed;


                      • #12
                        If the OWRS deal doesn't fly,
                        "Living well is the best revenge"

                        George Herbert


                        • #13
                          I like this gem:

                          - The principal purpose of the merger is to enable you to receive cash for your shares.

                          What a bunch of swell guys.


                          • #14
                            Originally posted by indyracer56
                            I like this gem:

                            - The principal purpose of the merger is to enable you to receive cash for your shares.

                            What a bunch of swell guys.

                            Speedvis must have had his pen in this
                            ...the spice must flow.....


                            • #15
                              Here's another good one:

                              "The entry support program and the team participation payments provide a total of $42,500 in cash payments to teams, per race, for each car entered in the 2003 CART racing series. Management estimates that these payments will amount to a total of $15,342,500 for the 2003 CART racing series. These payments are in addition to prize money and other nonmonetary benefits that accrue to participating teams. In October 2002, recognizing the difficulties the teams were having in securing sponsorship, CART, Inc. announced its commitment to spend an aggregate amount of $30 million in team assistance payments, which would be in addition to the entry support program and team participation payments. In exchange for the entry support, team participation and team assistance payments, the teams agreed to participate in the CART racing series for the entire 2003 season and granted CART, Inc. the right to sell certain advertising space on the teams' racecars. CART, Inc. planned to package this advertising opportunity with its advertising inventory from television and self-promoted races. CART, Inc. believed this would provide an integrated marketing opportunity to sponsors whereby they could participate at the team, race event and series levels."

                              "However, CART, Inc. was unsuccessful in selling the integrated advertising packages."

                              How could that be?

                              I thought that Pook and company were business geniuses.

                              At least, that what I have been told over and over by many on these very forums.


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