following the money.........

[numrounofan]

Ever since the IPO we've heard of the "$100 MILLION WAR CHEST" that CART was going to use to crush the hapless IRL. During Pook's tenure $100 MIL turned out to not be all that much. During the CART bankruptcy proceedings a big deal was made over a $60 million loan to the potenial buyers and that it would be "excused" if they won the bid. In order to keep Dover/Long Beach from opposing the buy KK had to produce a $15 million dollar escrow account to insure the 2004 race would happen. So that gives Tres Hombres $75 million out the gate. I've got to believe that they have hit the wall and have no intention of spending beyond that number.

Wouldn't it be cheaper for KK & Co. to pay INDY Car a sanctioning fee to run the races they own (LB, Toronto & Mexico) than buy 9 cars to fill the field?

[WheelerDealer]

Ever since the IPO we've heard of the "$100 MILLION WAR CHEST" that CART was going to use to crush the hapless IRL. During Pook's tenure $100 MIL turned out to not be all that much. During the CART bankruptcy proceedings a big deal was made over a $60 million loan to the potenial buyers and that it would be "excused" if they won the bid. In order to keep Dover/Long Beach from opposing the buy KK had to produce a $15 million dollar escrow account to insure the 2004 race would happen. So that gives Tres Hombres $75 million out the gate. I've got to believe that they have hit the wall and have no intention of spending beyond that number.

Wouldn't it be cheaper for KK & Co. to pay INDY Car a sanctioning fee to run the races they own (LB, Toronto & Mexico) than buy 9 cars to fill the field?

Yes, but they are gambling for a higher level of extortion. They saw how RIMS got taken by the patent trolls. Same mentality.

[Jim Wilke]

nfan, I think you have some numbers crossed up. For starters, the $60 million loan was never a factor at the bankruptcy and since CART was effectively liquidated and OWRS/CC bought only the assets, it is a moot point now.

I'm also not clear on the $15 million escrow issue - I don't recall that and even if it were the case, it wouldn't matter now since KK and GF formed a partnership and purchased Long Beach for $15 million.

On the other hand, there is little doubt that GF and KK have spent millions on CC: They bought the assets of CART for $3.2 million, they bought Cosworth and Pi from Ford for an undisclosed price, they spent $15 million on Long Beach and the bought Toronto. CC as an organization continues to pay for TV time, they self-promote several races and even Robin says they are spending millions to prop up teams and the series. How much? No real way of knowing but the combined spending on the series and the other assets has to approach $80 million and there is more to come.

[numrounofan]

nfan, I think you have some numbers crossed up. For starters, the $60 million loan was never a factor at the bankruptcy and since CART was effectively liquidated and OWRS/CC bought only the assets, it is a moot point now.

I'm also not clear on the $15 million escrow issue - I don't recall that and even if it were the case, it wouldn't matter now since KK and GF formed a partnership and purchased Long Beach for $15 million.

On the other hand, there is little doubt that GF and KK have spent millions on CC: They bought the assets of CART for $3.2 million, they bought Cosworth and Pi from Ford for an undisclosed price, they spent $15 million on Long Beach and the bought Toronto. CC as an organization continues to pay for TV time, they self-promote several races and even Robin says they are spending millions to prop up teams and the series. How much? No real way of knowing but the combined spending on the series and the other assets has to approach $80 million and there is more to come.

I was following the proceedings day to day and the $60 dollar loan prompted the Judge Otte quote "that's how we're going to do business now." And LB/Dover had first submitted a letter to the court opposing the sale but withdrew their objection after KK committed the $15 million...........if you have documents that say otherwise, I'll defer to your wisdom.........

[Andrew Longman]

Be careful not to assume they've gotten zero return on their "investments"

Cosworth and Pi make money. TV time is bought yes, but ad time is sold on that time too.

Long Beach and Toronto are intended to make money.

Teams may receive financial assurances, but they have sold sponsorships too.

And keep in mind that these are largely strategic investmemts designed bring enough control to the sport that it can be effectively managed and competitively aligned.

[Jim Wilke]

I was following the proceedings day to day and the $60 dollar loan prompted the Judge Otte quote "that's how we're going to do business now."

Actually, when the OWRS lawyers mentioned this 'loan,' Judge Otte refused to consider the issue, saying, "That's not how we do business here."

As for Long Beach, you may be right about the $15 million escrow but, again, that doesn't matter now since the Aquarium Brothers bought the event and presumably are no longer requiring themselves to post a performance bond.

[Jim Wilke]

Be careful not to assume they've gotten zero return on their "investments"

Cosworth and Pi make money. TV time is bought yes, but ad time is sold on that time too.

Long Beach and Toronto are intended to make money.

Teams may receive financial assurances, but they have sold sponsorships too.

And keep in mind that these are largely strategic investmemts designed bring enough control to the sport that it can be effectively managed and competitively aligned.

Robin works for Kevin and he disagrees:

But while Kalkhoven may not be familiar with the lump in your throat or goose bumps you can get when the balloons follow Back Home Again in Indiana, he's quite well versed in business and bottom lines.

That's why he's the latest to make a push for unification with George. My guess is that he's spent a helluva lot more money on teams, television, tracks and payroll than he ever imagined and he's not seeing much hope for return unless there's a drastic change in the game plan.

[Cosworth]

Actually, when the OWRS lawyers mentioned this 'loan,' Judge Otte refused to consider the issue, saying, "That's not how we do business here."

As for Long Beach, you may be right about the $15 million escrow but, again, that doesn't matter now since the Aquarium Brothers bought the event and presumably are no longer requiring themselves to post a performance bond.

Where you read that Indian Express?

[ICantDrive55]

nfan, I think you have some numbers crossed up. For starters, the $60 million loan was never a factor at the bankruptcy and since CART was effectively liquidated and OWRS/CC bought only the assets, it is a moot point now.

I'm also not clear on the $15 million escrow issue - I don't recall that and even if it were the case, it wouldn't matter now since KK and GF formed a partnership and purchased Long Beach for $15 million.

On the other hand, there is little doubt that GF and KK have spent millions on CC: They bought the assets of CART for $3.2 million, they bought Cosworth and Pi from Ford for an undisclosed price, they spent $15 million on Long Beach and the bought Toronto. CC as an organization continues to pay for TV time, they self-promote several races and even Robin says they are spending millions to prop up teams and the series. How much? No real way of knowing but the combined spending on the series and the other assets has to approach $80 million and there is more to come.

(a) I'm also not clear
(b) there is little doubt
(c) No real way of knowing

That sums that up in a nutshell