Barnhart, Honda confirm lower engine prices to help fill 500 field

[Turn13]

Lower engine prices could help fill 500 field

http://www.indystar.com/apps/pbcs.dll/article?AID=/20060121/SPORTS01/601210462/1004/SPORTS

Indy Racing League president Brian Barnhart said Honda Performance Development has agreed to provide V8 powerplants at a rate that increases the likelihood of a full field.

One-month leases will cost $250,000, half of what teams paid last year. If a team wants to start practicing after the first weekend of qualifying, the rate will be $115,000, down from above $200,000 last year.

The engine lease for the IRL's 2006 season is $1.3 million. Robert Clarke of HPD already has announced the '07 program will cost less than $1 million. It was $1.8 million in 2005.

[HardPoint]

One-month leases will cost $250,000, half of what teams paid last year.

A savings of $250K for the entire month of May is going to fill the field? So instead of $24,000 a day for 21 days, its now $12,000 per day for 21 days?
Theres a LONG way to go before shaving off a mere $12,000 per day for 21 days then this announcement. Its a step in the right direction but lets be honest, teams are in the clearance auction house and there is nobody to answer the bell.

If a team wants to start practicing after the first weekend of qualifying, the rate will be $115,000, down from above $200,000 last year.

So now their expecting late entrants? So if you start late, you pay more, check.

Quote:
The engine lease for the IRL's 2006 season is $1.3 million. Robert Clarke of HPD already has announced the '07 program will cost less than $1 million. It was $1.8 million in 2005.

How phoney. Robert said a while ago "We HOPE" to be under a million by 2007, now he says "it will" by 2007. Hmmmm sounds strange. Funny how there is no mention as to how this is achieved.

But its no surprise, KK is offering Free motors, incenetives and he could get the price under $750K a year if he felt the need to.

Whats "under a million"? $900,000? Its still off, and lets not forget, Robert said the same thing a while ago about 2007, now its went from "we hope" to "it will",hmmmm ok. Well, people are already planning for 2007 as we speak, some in the shops call it, to little to late.

Big difference: The IRL doesn't own or control the pricing. Champ Car does and can go from anywhere to free, as stated to $100,000 if he had to, if he'll do the freebies he'll go under the "hoped" million mark by 10 yard sticks.

Hey Robert, guess what! A little late man. Just ask Chip.
But I guess in 2007 when the one-offs happen, it will be cheaper when TG needs the car count, so thats a good thing.

[indycool]

Oh, HP, baloney. Tell a small CC team that $250,000 means nothing.

And you can't have late entrants yet. The entry invitations haven't even gone out.

The chassis cost for '07 in CC only equalizes the chassis cost with the IRL right now. True, if Kalkhoven wants to give away engines, he can. But then, he doesn't have the Indianapolis 500 to supply, either.

[Defender]

I don't care what champcar does. They supposedly don't care about Indy, either...unlike a small number of its most rabid supporters. I DO care about the Indy 500, and it appears the brainstrust in charge and the partners of the league have forged a workable means to get the small teams back in the game. For that, they should be applauded. I think it's getting closer to 'what the doctor ordered.'

Thanks Brian. Thanks Honda.

[jonovision_man]

HardPoint, give it a rest... they're dropping prices, that's good, and makes it more likely to see 33 entries for the Indy 500.

And at under $1M for the season, that should help fill the 2007 grid.

Whether you like it or not, the Indy 500 is STILL the most attended race in US OW and the most viewed on TV by 400%. People want to run it, and if they make it a little cheaper it's that much more accessible to do that.

jono

[tbyars]

The entry invitations haven't even gone out.

IC, some folks, in their grand scheme of how things are sure to shake out and how the Indy 500 can be "used" for their greater good, tend to forget that one little fact.

Participation in the Indy 500 is, in fact, by invitation only.

[jonovision_man]

Participation in the Indy 500 is, in fact, by invitation only.

Are you suggesting they are turning potential runners away...?

jono

[indycool]

It's mystifying to me, tb, about HP and a few other posters. I happened to run into a high-ranking CC team member last night here in Indy. I asked him how things were going. He said, "nothing that money wouldn't cure." I asked if he had some and he said "a little."

They talk about the car count for Indy, yet don't discuss the car count for CC. How many car/driver/sponsors are confirmed in CC right now, announced, wrapped up and ready to go racing? Haven't heard officially who Coyne's running. Haven't heard officially who HVM is running. Haven't heard officially who Rocketsports is running. N-H hasn't announced the two assumed cars, let alone the rumored third. KK can't get it together with da Matta's agent. No one seems to know how many Forsythe's going to run.

And no one has explained to me how zero expense for CC chassis in '06 is cutting costs to $300,000 per copy for new chassis for '07.

Yet, to them, an active measure to cut costs to encourage teams to run Indy is regarded as a bad thing. Cutting engine costs further in '07 for the IRL is a bad thing.

jono, I believe CART and now CC teams are routinely invited to enter and receive entry invitations....at least, last I heard.

[Ken]

Participation in the Indy 500 is, in fact, by invitation only.

if there are only 28 starters this year should we assume a few 'invites' got lost in the mail?

[indycool]

Ken, since this is the fourth year of the chassis cycle, there are a LOT of cars out there........who gets 'em and who runs 'em remains to be seen.

[Ken]

It's mystifying to me, tb, about HP and a few other posters. I happened to run into a high-ranking CC team member last night here in Indy. I asked him how things were going. He said, "nothing that money wouldn't cure." I asked if he had some and he said "a little."

They talk about the car count for Indy, yet don't discuss the car count for CC. How many car/driver/sponsors are confirmed in CC right now, announced, wrapped up and ready to go racing? Haven't heard officially who Coyne's running. Haven't heard officially who HVM is running. Haven't heard officially who Rocketsports is running. N-H hasn't announced the two assumed cars, let alone the rumored third. KK can't get it together with da Matta's agent. No one seems to know how many Forsythe's going to run.

And no one has explained to me how zero expense for CC chassis in '06 is cutting costs to $300,000 per copy for new chassis for '07.

jono, I believe CART and now CC teams are routinely invited to enter and receive entry invitations....at least, last I heard.

Yet, to them, an active measure to cut costs to encourage teams to run Indy is regarded as a bad thing. Cutting engine costs further in '07 for the IRL is a bad thing.

it's not a bad thing at all.....the question is will it be enough......add in some extra marketing and a new 'Anthem' and the answer is still maybe, maybe not....time will tell

and I answered your question the other day......

side question.....IYO what is currently more likely...CC falling short of the 18 it needs and has run the past two seasons or the IRL/I500 falling short of having the traditional 33?

[jonovision_man]

They talk about the car count for Indy, yet don't discuss the car count for CC. How many car/driver/sponsors are confirmed in CC right now, announced, wrapped up and ready to go racing? Haven't heard officially who Coyne's running. Haven't heard officially who HVM is running. Haven't heard officially who Rocketsports is running. N-H hasn't announced the two assumed cars, let alone the rumored third. KK can't get it together with da Matta's agent. No one seems to know how many Forsythe's going to run.

There will be 18. KK will write the cheques he needs to. That's probably why nobody's talking about it, it's a given.

And no one has explained to me how zero expense for CC chassis in '06 is cutting costs to $300,000 per copy for new chassis for '07.

Actually it's been explained to you several times. The current Lola is more expensive to run than the new car will be.

Look at an example from the airline industry, where older 747s are being mothballed in favour of new 777s. Why? Cheaper to operate, so the initial cost of the new jets is overcome by the benefit of lower costs.

I think you understand this... ?

Yet, to them, an active measure to cut costs to encourage teams to run Indy is regarded as a bad thing. Cutting engine costs further in '07 for the IRL is a bad thing.

I know you're not talking about me... but just want to reaffirm that I'm all for the IRL cutting costs.

jono, I believe CART and now CC teams are routinely invited to enter and receive entry invitations....at least, last I heard.

I'm sure they are. Pretty much anyone who could concievably get a team together must be welcome in today's environment.

jono

[indycool]

True, Ken, you, jono and I discussed amortization and the like over a chassis cycle and that leasing chassis might be possible, but the fact is that's a new expense on that side of the ledger -- and a significant one -- for '07.

CC has gotten its 18 the past two seasons. The "500" has gotten its 33 the past two -- plus decades -- seasons. When it all shakes out, IMO, they'll both do the same.

[speedster3000]

First post:

Have lurked here awhile and one of the things I'm struck by is how fans of one series or the other consistently feel the need to point out the negatives of any deal the series they do not prefer has put together. It's a given that any thread about a particular series will not reach the second page before the other series is mentioned. Both fans are guilty of this.

This annoucement has little to do with champ car and more to do with someone at the Speedway recognizing they are going to have to do more than unlock the gates every May. The thing I find interesting that no one is talking about is how does this help the series? This may fill the grid for May, but what is the IRL? It's a series. The last 10 years have shown us that one race a series does not make. If it did, would the IRL and the I500 be in this situation?

[Ken]

True, Ken, you, jono and I discussed amortization and the like over a chassis cycle and that leasing chassis might be possible, but the fact is that's a new expense on that side of the ledger -- and a significant one -- for '07.

CC has gotten its 18 the past two seasons. The "500" has gotten its 33 the past two -- plus decades -- seasons. When it all shakes out, IMO, they'll both do the same.

I'm not just talking initial cost and amortization.....I'll dig up my response from a couple of days ago...

and I think your correct.....it's just that CC is further along to it's 18 than you represented a few posts ago.....and the IRL will be stretching and TG will be sweating the last week in May