16 Dec 2003, 01:35
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#1
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Racer
Join Date: Jun 2002
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Location:
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Alberta, Canada |
Posts: 248
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Deal Approved?
AR1 is reporting this....
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OWRS proposal approved by CART board
Just hours ago, the CART Board of Directors approved the most recent buyout offer of Open Wheel Racing Series LLC (OWRS). After days of negotiation the CART board signed the agreement that will see OWRS buy the pieces of CART necessary to continue the business, while the rest, namely the operating company, will be submitted to the courts for bankruptcy. An official announcement will be out shortly.
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16 Dec 2003, 01:47
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#2
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Veteran
Join Date: Feb 2003
Posts: 3,183
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16 Dec 2003, 02:08
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#3
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 Race Official 1% Club
Join Date: Dec 2002
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In the infamous "Powder Room" |
Posts: 32,744
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C^RT is dead... long live C^RT...
Welcome OWRS... and all those who sail in her...
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__________________
"Once you get in the right frame of mind, I think anything’s possible. I think we get, we so often get caught in this state of negativity and it’s a, it’s a poison like nothing else" - Pat Solatano Jr, Silver Linings Playbook
Excelsior...
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16 Dec 2003, 02:45
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#4
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Racer
Join Date: Jun 2002
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Location:
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Alberta, Canada |
Posts: 248
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the press release.....
OWRS Completes Assets Purchase posted on 12-15 21:32
LANSING, Mich. (Dec. 15, 2003) – Open Wheel Racing Series, LLC (“Open Wheel”) has completed its negotiations with CART, Inc. and Championship Auto Racing Teams, Inc. to purchase specific assets, including contracts with promoters, sponsors, and teams, through the planned Chapter 11 bankruptcy process of CART, Inc. This agreement allows for the continuation of the 2004 Champ Car World Series season.
Open Wheel will begin the immediate planning and implementation of the operational details required to conduct the Champ Car World Series in 2004 as the closing of the transaction continues. The closing of the transaction is subject to certain closing conditions including the approval of the bankruptcy court.
“Our goal throughout this process was for an expedient resolution so our teams and sponsors could proceed with full confidence,” said Paul Gentilozzi, an Open Wheel partner. “We’re extremely grateful to all of the sponsors, teams, promoters, and fans that have expressed their ongoing encouragement. Their loyalty has been phenomenal; they’ve stayed with us throughout this initiative and have supported us at every turn.
“Effective immediately, we’re ready to begin work to implement our vision for Champ Car in 2004 and for many seasons beyond,” explained Gentilozzi. “Our purchase was with the express intent of supporting our teams and sponsors competing now and in the future.
“Therefore, as a show of strength and good faith, Open Wheel has accepted the liability of almost $2.7 million in 2003 prize monies which we will pay to our teams that elect to participate in the 2004 Champ Car season,” revealed Gentilozzi.
“There’s been a great deal of speculation about car count for next year,” continued Gentilozzi. “We talk to our teams on a daily basis and we’re more than confident that we’ll have a full field of cars in 2004. In addition, we anticipate new team and driver announcements in the very near future.”
Kevin Kalkhoven, an Open Wheel partner and co-owner of PK Racing, was instrumental in the acquisition process. “This was an extremely complex deal,” noted Kalkhoven, former CEO of JDS Uniphase, a leading global supplier of components and modules for advanced fiber optic telecommunications networks. “I pride myself in my knowledge and expertise in acquisitions and mergers, but I was surprised by the complexity of the transaction.
“But I’m positive the agreed upon format is definitely the correct one and one which will allow our Series to grow and flourish in 2004 and beyond,” added Kalkhoven.
OWRS partner Gerald Forsythe has had a long emotional and financial commitment to the Champ Car World Series and is convinced that the asset purchase agreement was key to ensure the Series’ future. “This was absolutely the right move for the future and longevity of Champ Car,” commented Forsythe, who co-owns Team Player’s and is a limited partner of the BAR Formula One team. “I have every confidence that this decision will prove successful.”
In a related move, Open Wheel nominee Richard P. Eidswick has been appointed as CEO of CART, Inc. to see the organization through the Chapter 11 proceedings. During the transition, Eidswick will report to the CART Board of Directors.
Eidswick is co-founder and Managing Director of Arbor Partners, an Ann Arbor, Mich.-based venture capital firm which primarily invests in companies focused on the creation of next-generation application software and communication technologies. In addition to capital, Arbor Partners offers clients a comprehensive set of business-building resources including assistance with strategic planning, development of product and marketing strategies, and the establishment of corporate partnerships.
“I’m confident that the Champ Car World Series will emerge from the bankruptcy process stronger than ever,” said Eidswick. “I look forward to working with all parties involved to build on our strengths and explore new opportunities as we position Champ Car for 2004 and beyond.”
The Champ Car World Series 2004 racing season begins on April 18 with its 22nd running of the Toyota Grand Prix of Long Beach. Reigning Champ Car Drivers’ Champion Paul Tracy will return to defend his 2003 Long Beach win.
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16 Dec 2003, 02:50
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#5
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Veteran
Join Date: Jun 2003
Posts: 670
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This is AWESOME another year of the best pure hardest racing, I just hope they work out the schedule bugs.
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__________________
Not even death can stop me, and if death takes me by surprise, it's more than welcome.
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16 Dec 2003, 02:58
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#6
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Veteran
Join Date: Oct 2002
Posts: 6,179
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One more step in the process, just when it was looking touch and go. Let's just hope that this continues to move forward, and that this group can truly build something going forward.
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16 Dec 2003, 03:15
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#7
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Veteran
Join Date: Mar 2003
Posts: 1,000
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*MASSIVE Sigh of relief!!*
Ahhhh...first bit of good news I've heard for a while...
Long may it continue! 
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__________________
We need to win like you need to breathe....
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16 Dec 2003, 03:33
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#8
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Veteran
Join Date: Jul 1999
Posts: 6,033
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Well, it's a start, let's hope it continues!
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__________________
"I used to hate writing, but now I enjoy it. I realized that the purpose of writing is to inflate weak ideas, obscure poor reasoning, and inhibit clarity. With a little practice, writing can be an intimidating and impenetrable fog!" - Calvin and Hobbes
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16 Dec 2003, 03:36
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#9
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Veteran
Join Date: Sep 2002
Posts: 625
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This is great news! I'm sure all those involved in the series are latting out at least a big sigh of relief. Now we should start hearing team announcements for next year. Thanks for the early Christmas present! 
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__________________
"The pedal doesn't care what your nationality is" Paul Gentilozzi
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16 Dec 2003, 03:39
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#10
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Veteran
Join Date: Aug 2003
Posts: 995
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Woohoo. Can't wait to here all the details unfold in the next few days. Very soon we should be hearing confirmation of teams and drivers now that they know the series has what it needs to continue next year.
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__________________
"You will never know the feeling of a driver when winning a race. The helmet hides feelings that cannot be understood." - Ayrton Senna
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16 Dec 2003, 03:40
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#11
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Veteran
Join Date: Feb 1999
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Location:
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Toronto, Ontario, Canada |
Posts: 12,451
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HURRAH! HURRAH! HURRAH!
Cue Indycool with bucket of cold water to pour all over us.
But I don't even care. Hurrah! Cart lives! Hurrah!
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__________________
"If we won all the time, we'd be as unpopular as Ferrari, and we want to avoid that. We enjoy being a team that everybody likes." Flavio Briatore
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16 Dec 2003, 04:04
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#12
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Veteran
Join Date: Nov 2002
Posts: 4,744
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I wish I'd read this thread first today. Excellent news. There wasn't much time left to sort it out.
It's kind of funny that OWRS will pay out $2.7M of prize money to teams for next year. With $1M going to PT/Forsyth from winning the championship, plus a bunch of wins from PT and one from PC, plus lots of podiums, there's not that much left. Also a couple of good finishes for ASTJ that won't have to be paid out.
I was thinking too, I wonder if Pollock was simply involved in PK racing so that Kalkhoven would seem legit. Pollock seems to have moved away from the team. With no experience in CART it's sort of hard for Kalkhoven to run a team AND buy the series. Pollock gave him immediate credibility.
I was also very nervous about Gentilozzi around this time last year. After what happened with Tag and his he has some credibility that he will probably be good with control of CART.
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__________________
No Rotor, No Motor.
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16 Dec 2003, 04:14
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#13
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Veteran
Join Date: Oct 2002
Posts: 6,179
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The closing of the transaction is subject to certain closing conditions including the approval of the bankruptcy court.
There Liz, a bucket of at least cool water for you. But great news, and good to be back on track.
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16 Dec 2003, 04:15
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#14
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Veteran
Join Date: Mar 2000
Posts: 2,738
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__________________
A torrential afternoon practice session in Watkins Glen saw Villeneuve out-qualify everyone. By 11 seconds.Scheckter stated: "I scared myself rigid that day, I thought I had to be quickest. Then I saw Gilles's time and - I still don't really understand how it was possible. Eleven seconds !"
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16 Dec 2003, 04:25
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#15
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Veteran
Join Date: Feb 1999
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Location:
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Toronto, Ontario, Canada |
Posts: 12,451
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I refuse to be depressed and cynical about this. Let the fireworks begin!
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__________________
"If we won all the time, we'd be as unpopular as Ferrari, and we want to avoid that. We enjoy being a team that everybody likes." Flavio Briatore
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