Long Beach 2006: The Surreal Life.

[jcollins28]

If you had been living under a rock since 1995 and surfaced for the first time in the paddock for the CHAMP CAR Long Beach Grand Prix all would seem right in the world. There to the left is Chip Ganassi down a bit further is Bobby Rahal and Adrian Fernandez. Jumping between hospitality booths is HPD head man Robert Clark with Michael Andretti not far behind.

However fans of Open Wheel racing know the harsh reality that has faced the sport over the past 10 plus years. Unlike other forms of racing Open Wheel fans can not only rattle off the names of every driver who make up the grid. They can also tell you in chorological order the time line of “The Spilt” and every shot that has been fired across the bow. The events that unfolded over this April weekend were anything but normal. The naysayers can dismiss most of the appearances for these individuals because most of them own Grand Am teams that raced on Saturday. However the appearance of Michael Andretti on Saturday had rumors blowing through the paddock with the force of Santa Ana winds.

After all this is the same Michael Andretti who basically came out of left field in an ESPN article on April 6th when talking about the IRL and Indy 500 and said. “I don't know if I'm going to be here next year for sure. We'll have to see what happens this year." Rather then question why Michael Andretti was talking to CHAMP CAR’s Kevin Kalkhoven at Long Beach. I think the better question would be why the sudden IRL out burst and appearance at Long Beach.

When teams defected from CART in the late 90’s to early 2000’s to the IRL. No one saw these deals being negotiated at the race track. CART teams or drivers did not show up at random unannounced IRL races. Yet here sat Michael Andretti with every Open Wheel motorsports journalist in attendance to take pictures and write the big story. It was not that long ago that Michael voiced his disappointment that CART would live on in the form of CHAMP CAR and he continued to sing the praises of Tony George and the IRL.

Fast forward to a week in April and in less then 3 days he has cast doubt that he will remain in the IRL and shows up at a CHAMP CAR race. I can’t help but feel this is some sort of a cheap stunt that Michael is trying to pull on Tony George. Like a spurned lover who runs back to an old flame to build some jealousy in her current love interest. Why would Michael, who owns the most dominate team in the IRL do something so brazen as to talk out of school on his own without Tony George?

However if you look at how Michael Andretti left CART this pretty much matches his M.O. The Michael Andretti’s of the world are not loyal to any series. They are simply out for themselves. As evidence of the CART teams that left for the IRL and a quick pay day from the likes of TRD and Honda. Now that the TRD and Honda money are gone the groans from AGR, Bobby Rahal and others are becoming louder and louder.

One thing is for sure the merger story took a very wild and unexpected turn this weekend. Ganassi and Rahal have also chimed in to say if a merger does not happen 2006 will be their last in any Open Wheel series. What would be left of the IRL to merge with minus nine cars from AGR, Ganassi and Rahal? As it stands now how can one negotiate while being undermined by his own people? If Tony is not careful he may be done in by his own teams and this whole merger may not even be a merger but a take over.

Fans of Open Wheel racing have been used to paying attention to the racing and the dirty politics of the sport. This year though the business side with its daily twist and turns may rival the on track action for the fans attention.


Jason Collins

[NismoZ]

Well, sure. You don't think TG suddenly had an epiphany, do you? The pressure has been building from his own people for quite some time. He HAS to act. I see no conspiracy other than drivers and owners wanting to come together and race...profitably! Happy to see them all there and they seem to be saying the right things as far as I'm concerned.

[nrc]

In the past the turn coats had someone was paying the bills for everything they were doing. They didn't have to do anything public because they were dealing with people they already had connections with behind the scenes. Nobody was going to make note of Rahal or Andretti talking with Honda because it happened all the time.

Now the yen is drying up and they have to figure how they're going to pay the bills on sponsor value just like everyone else. The trouble is that they, Honda, Toyota, and most of all, Tony have destroyed sponsor value. So now they're scrambling trying to figure where the money is going to come from next year.

[cart7]

A couple things have happened that were for the good.

TG formed his own race team at the beginning of last year and hasn't been able to find sponsorship for it. He's having to fund the thing out of his own pocket. He's actually in the shoes of the owners and finally figuring out how much it takes to field a car for a year and just how little interest their is from corporate America towards OW racing.

Knowing the gravy train is ending for most IRL teams at the end of the year is what's driving this thing from that side. I'm sure KK is becoming weary of putting money into team owners hands who haven't been able to secure funding on this side of the fence.

This has to happen for OW to survive.

[Hard Driver]

Interesting, maybe they are testing the waters to see if they get shot by the fans.

[Napoleon]

Guaranteed my recent experience with having where I work acquired by another company gives me a unique point of view. In my case once the owner of the company reached a deal to be acquired the people in charge of the acquiring company wanted to sit down with key employees of the acquired company, of which I was the most senior and most key (and not under contract). The whole idea was to get me, and other key employees as they meet with them, comfortable with the deal that had been struck, and to reach an employment deal with me (BTW 15 minutes after the meeting the owner of my old company called to ask how it went and if I would be making the move I told him I had secretly negotiated a deal with another company – the next morning I quit my old job).

If TG and KK are taking a similar tact the fact that KK is meeting with owners from the IRL means that a deal has been struck between KK and TG and they are now selling the idea to the owners, and seeing what type of participation they will get from the owners (and I think their only options are to participate or retire). IMO, all that is left is the official announcement of the merger.

[FTG]

I agree with nappy. I think all our guys will be hanging out at the Brickyard in May. Then, the press conference. Maybe.

[Napoleon]

I agree with nappy.


Thank you

The more I think of it the more I am convinced that this is a solid sign that the deal is done. Not only would it not make sense to meet with them if they did not have all or nearly all of the details worked out (after all, what would you say to the owners if you didn’t know what the merger would look like) but it may be counter productive by letting them potentially muck up negotiations.


Having said that though I am about to contradict myself. In my personal situation the reason I (and 3 other arguably key employees) jumped ship was because, in part at least, we were not involved in the ongoing negotiations. But my case isn’t really similar to a car owner in either series since I have ready options available to me and potentially can take business away from the acquiring company, something that the team owners are not able to do in any practical sense, so it was stupid not to bring me to the table at an earlier time. But I guess it is possible that they are letting the team owners talk about the form they would like things to take as part of the negotiations to “invest” them with a feeling of ownership in the outcome.

[Skater_36]

So Rahal, Ganassi, Andretti and Fernandez were there but no Penske? I wonder if this was simply a scheduling conflict or are his ties to ISC/NASCAR a little too tight?

Time will tell.

[Cam]

So Rahal, Ganassi, Andretti and Fernandez were there but no Penske? I wonder if this was simply a scheduling conflict or are his ties to ISC/NASCAR a little too tight?

Time will tell.

Penske was at TMS......

[extramundane]

Rahal, Andretti & Clarke were also meeting with Scott Atherton...

[Napoleon]

Rahal, Andretti & Clarke were also meeting with Scott Atherton...

who is he?

[Winston Wolfe]

somewhat related.
Whilst have a few beverages Sat night, saw Scott Dixon at the old "Mum's" on Pine Ave. Nice guy, very approachable, spoke for a few minutes. Interesting part was when I said "Scott when are you gonna come back to the real racing series, and run on the good tracks?" to which he replied "yeah, we keep telling the owners the same thing". He said there was nothing like the crowds at Long Beach, and he said he was "just waiting".
Dixon seems to be one of those guys who was beholden to Toyota money, but didnt really drink too much of the Kool-Aid, or am I just having selective memory since I think he's a good shoe ?

[rabbit]

who is he?
Big Cheese at Panoz
http://www.motorsport.com/magazine/feature.asp?C=WhosWho&D=2006-03-01

[rabbit]

Dixon seems to be one of those guys who was beholden to Toyota money, but didnt really drink too much of the Kool-Aid, or am I just having selective memory since I think he's a good shoe ?I've always held that impression.

[FTG]

Google.

In 2000, Don Panoz chose Scott Atherton to steer the American Le Mans Series he founded in 1999. Now Atherton oversees the entire Panoz Motor Sports Group as the president and chief executive officer.

[racer2c]

Hmm, talking about purchasing CCWS DP01 chassis? Or maybe fielding ALMS cars if the merger won't go through or maybe a three way merge? Or maybe he was just invited to lunch cuz he was there.

Probably the first.

[extramundane]

Hmm, talking about purchasing CCWS DP01 chassis? Or maybe fielding ALMS cars if the merger won't go through or maybe a three way merge? Or maybe he was just invited to lunch cuz he was there.

Probably the first.

Or the second. (http://www.autoweek.com/apps/pbcs.dll/article?AID=/20060410/FREE/60409001/1001)

[FTG]

Now things are getting really interesting.

[oddlycalm]

If Honda is going to provide financial inducements for the ALMS LMP2 program (likely) that would easily explain why the teams addicted to handouts were all at Long Beach salivating.

It may also mean that TG may has come back to the bargaining table too late (big surprise). If a merged series doesn't generate sponsor interest PDQ it could quite possibly mean game over.

oc

[Anteater]

Nice bit of writing, jcollins! :thumbup: I had no idea Mikey was at Long Beach; glad I missed him.

[pferrf1]

Rahal, Andretti & Clarke were also meeting with Scott Atherton...

Quite frankly, this is the likely cause of Mikey's presence. Honda entry into ALMS, with AGR & Rahal fielding LMP teams.

I doubt Andretti goes very far from where Robert Clarke tells him to be. After all, he goes where his sponsors want him to be.

[Racing Truth]

If Honda is going to provide financial inducements for the ALMS LMP2 program (likely) that would easily explain why the teams addicted to handouts were all at Long Beach salivating.

It may also mean that TG may has come back to the bargaining table too late (big surprise). If a merged series doesn't generate sponsor interest PDQ it could quite possibly mean game over.

oc

Which means the sport, fans, etc. are all SOL. :(

[Andrew Longman]

Great piece of writing JC

And OC is correct. Sponsor dollars have to start flowing. Honda, TG an KK money has to stop flowing at some point to make teams and the series "honest" again.

Penske and Andretti are playing with ALMS, probably to try to gain a little leverage and ensure a seat should the music stop, but sponsor dollars are not readily flowing there either unless Porsche and Honda are footing the bills.

But from a fan, viewership, sponsor perspective, is a merged series really merged if it does not contain Andretti, Rahal and Penske? How about Gannasi and Fernandez? How about Panther, D&R and Hemelgarn? If popularity is driven by the stars and drivers, how many are needed to "get this right" as KK says it.

[racer2c]

But from a fan, viewership, sponsor perspective, is a merged series really merged if it does not contain Andretti, Rahal and Penske? How about Gannasi and Fernandez? How about Panther, D&R and Hemelgarn? If popularity is driven by the stars and drivers, how many are needed to "get this right" as KK says it.

Sure it is. One mission statement. One marketing philosophy. One name. If the sport hinged on where Andretti, Rahal, Ganassi and Penske race, there wouldn't be a Champ Car.

[Andrew Longman]

Sure it is. One mission statement. One marketing philosophy. One name. If the sport hinged on where Andretti, Rahal, Ganassi and Penske race, there wouldn't be a Champ Car.

Well, there barely is a Champcar.

But I hope you are right.

Nevertheless, wherever they are itthey could continue to be a distraction because "they are not in Champcar and when are they coming back"

And I hope sponsors don't think the series is too diminsished without them.

But in truth, as little as I ever rooted for them or ever will, I do hope everyone gets under one big healthy tent and we worry about the on track stuff again.

[racer2c]

Which brings me back to a nagging question; with all of the "merger" talk of late, there is an overtone of impending doom and gloom if the merger doesn't go through and go through now. Why? Simply based on the assumption that Tony and KK can not subsidize teams forever? Has either of them said they can't/won't? Of course subsidizing your participants is rather counter productive in the name of good business. I guess my point is that both series can probably flounder along for another five years or so and a lot can happen in five years. It would simply be back to the waiting game of who dies first.

KK didn't buy Champ Car with the paramount goal of merging with Tony. At least he never said so publicly.

[Andrew Longman]

KK didn't buy Champ Car with the paramount goal of merging with Tony. At least he never said so publicly.

Gentilozzi did and was quickly smacked down and shut up. FWIW