View Full Version : Takeover again hits snag
Seems like ISC and Elkhart Lake had their lawyers at the proceedings.... The judge is going to review the case until Jan. 28
Judge Frank Ottery held a preliminary hearing on December 19 for the CART bankruptcy filing and set today to hear from all involved parties. Today,
CART's lawyers and OWRS lawyers asked the judge to settle the bankruptcy filing as soon as possible.
Lawyers representing two race tracks: Road America in Elkhart Lake, WI and ISC for California Speedway in Fontana, CA. along with several concerned stockholders voiced their
objections. Road America because they felt their contract with CART was not transferable
and ISC because they felt CART should return the 2003 sanction fee after the race was
cancelled due to the wildfires.
The teams, owners, drivers, promoters, tracks all need time to prepare for 2004 but the judge did not make a decision today, probably because of the objections raised. This
was not a clear cut case. January 28, 2004 has been set as the date that Judge Ottery
will give his decision. OWRS attorneys stated that the final date to allow the Champ Car
Series and the Atlantic Series to continue is February 13, 2004. This delay puts the 2004 season in jeopardy especially the first race at Long
Beach. It's possible that the judge will not rule in CART's favor and things will drag on
past January 28th
indyracer56
12-30-03, 07:23 PM
I wonder what Road America is really worried about here?
Are they trying to get their money up front, regardless of the outcome of the buyout?
Isn't the Cart race their biggest race weekend?
It all makes no sense to me.
jonovision_man
12-30-03, 07:33 PM
Originally posted by indyracer56
I wonder what Road America is really worried about here?
Are they trying to get their money up front, regardless of the outcome of the buyout?
Isn't the Cart race their biggest race weekend?
It all makes no sense to me.
Remember the 2003 deal with RA was done pretty hastily and not without some bad blood, there may be some terms they'd like to re-negotiate.
Not to mention they thought they'd be getting CART, and instead they're going to get who knows what under OWRS.
And of course CART could still have other monies owing to RA which aren't being transfered to OWRS...
Lots going on behind the scenes, all very political, and probably most having to do with protecting interests and $$$.
jono
Methanolandbrats
12-30-03, 09:51 PM
TG is behind the scenes offering to rent the track because the dumb A-hole thinks if he plucks the premier CART/OWRS road course he will have scored a victory. As usual, he is wrong. If those *****boxes race there count on a crowd of about 3,000 for the whole weekend. Of course RA is a tad too stupid to see the future growth of OWRS, so they are straddling the fence. Hopefully they will come to their senses.
Railbird
12-30-03, 10:11 PM
I doubt that TG is doing anything as pro-active as that and I also doubt if RA cares whether the money comes through the front gate or the back as long as they realize a decent bottom line. Relieving them of a large sanctioning fee would help along those lines.
RA has many profitable dates that involve few spectators outside of the family members of whatever club has rented the track.
IMO it's up to OWR to sell the product.
Warlock!
12-30-03, 10:24 PM
Originally posted by Ziggy
...and ISC because they felt CART should return the 2003 sanction fee after the race was cancelled due to the wildfires.
I can't believe this hasn't happened. I know if I got pre-paid for a job, then didn't perform the job, I'd have a hard time feeling I should keep the money for that job. Ri-goddamn-diculous. :rolleyes:
Winter Warlock!
Lizzerd
12-30-03, 11:11 PM
Road America because they felt their contract with CART was not transferable
So, does this mean that RA does not want a ChampCar race if it is OWRS running the show? WTF?
Originally posted by Lizzerd
So, does this mean that RA does not want a ChampCar race if it is OWRS running the show? WTF?
...and I bought a season pass, I believe there's already a conflict with the USGP and the June Sprints and now this, from now on it'll probably be pay as I go, or more likely NOT PAY when I don't. No matter what, I won't watch crapwagon's at RA, season pass or not.
Peter Olivola
12-31-03, 12:19 AM
CART, whether bankrupt or not, owns the Road America date. The CART/RA contract is not assignable according to the terms of the contract. If RA wants to have OWRS on that date they have to get CART to void the contract. CART can't do that without court permission. RA can't negotiate with OWRS about the date until the issue is resolved by the bankruptcy court. Road America is protecting its interests by being represented in the bankruptcy proceedings.
I expect the court will void the contract as part of the settlement freeing RA to negotiate with OWRS. It will be a new deal, or no deal, but it will be between RA and OWRS with no baggage from the prior CART/RA contract.
This has nothing to do with Tony George and the IRL.
As I was informed by my own bancruptcy lawyer 11 years ago, most court dates go rather swimmingly without a hitch unless a creditor feels they've been screwed by the bancruptee. In this case, I believe ISC has a legitimate gripe and it sounds like there is still some unsettled business from last year with RA. I'm sure it'll all get sorted out, but OWRS should have made a couple of assurances to the mentioned parties if they wanted this to go quicker than it's now about to.
chop456
12-31-03, 10:58 AM
Originally posted by RTKar
...and I bought a season pass, I believe there's already a conflict with the USGP and the June Sprints and now this, from now on it'll probably be pay as I go, or more likely NOT PAY when I don't. No matter what, I won't watch crapwagon's at RA, season pass or not.
Ditto.
If they offer a refund to season ticket holders as they did last year, I'm taking it.
Remember that Toyota is the official vehicle of Road America.
Dirty Sanchez
12-31-03, 11:29 AM
The AMA weekend is also the same as Milwaukee :rolleyes:
Crapwagon has a different take on things.
Basically they interpret the judge as saying, FU to ISC and Road America, and its a done deal unless someone comes up with a higher offer before Jan 28.
And even if that happens OWRS can match the higher offer. Looks :thumbup: :thumbup: :thumbup: :thumbup: :thumbup: to me.
RA has gone so far as to put in a written objection to CART's motion to pay salary and benefit payments to their employees. It's telling that RA finds itself on the same side as ISC. While they send their PR reps out to do spin and damage control they seem intent on sinking CART.
ISC doesn't deserve a sausage. They "postponed" the event with no intention of rescheduling. Regardless of whether they managed to stay within the letter of their contract, they used the wildfires as an excuse to screw CART and their fans.
This story puts a different spin on things. According to this the objections have been over-ruled and the path is clear to complete things in January.
Otte overruled objections to the sales procedures and scheduled Jan. 23 as the deadline for alternative bids for Indianapolis-based CART's assets. If any such bids emerge, they could be considered during an auction Jan. 28. Without any qualifying bids, Otte could approve the sale to Open Wheel that day.
http://sports.myway.com/news/12302003/v3647.html
It is interesting how the "real media" account of what happens differs quite a bit from MarkC's take (posted by Zig above).
Here's the Indy Star's take, which also seems in line with the AP story: http://www.indystar.com/articles/6/107112-1326-037.html
There's also an interesting from-the-seats posting at Trackforum: http://www.trackforum.com/forums/showthread.php?s=&threadid=36512
As a long-time lurker/first time poster, I thought I might provide some observations having attended the day’s hearing (apologies in advance for the length).
1. The AP article (discussed in another thread) is accurate with respect to the court’s ruling. CART got what it had requested. However, the purpose of the hearing was to determine whether circumstances existed justifying an emergency sale and to establish bid, overbid and sale procedures. The merit of and objections to the proposed sale itself will not be considered by the court until Jan. 28. That’s the real show.
2. California Speedway’s chief complaint today was that a rushed “insider” sale to OWRS favors some creditors (teams and certain promoters) at the expense of others and prevents third party bidders from making informed offers which may exceed the OWRS offer. Not surprisingly, CART noted the ISC-NASCAR link and insinuated something may be going on that is less than above board. CART also stated it does not view California Speedway as a creditor and plans to sue it for liquidated damages in the amount of $5 million for failing to stage the ’03 race.
3. Notwithstanding the equivocal nature of its initial press release, Road America stated it has no intention or desire to hold a Champ Car event in ’04. It pointed out that it would not have an adequate opportunity to promote the race to the public or to prospective sponsors, given the lack of clarity regarding such things as TV coverage, quality of team/driver line-ups and OWRS’s ability to actually stage a professional race. Road America also noted it has lost money each of the last 2 years on the CART events.
4. During the hearing. California Speedway’s attorney revealed that California Speedway knows of at least one other party that intends to bid on the assets. The attorney refused to name the party citing attorney-client privilege.
5. CART’s lawyer indicated, and Road America’s counsel concurred, that it is expected certain other promoters will oppose the assumption of their promoter agreements by OWRS in a manner similar to Road America. These are expected to be promoters that are generally track-based without insider ties to CART. As an aside, contrary to what many seem to think, CART can force the assignment and assumption of promoter agreements without promoter consent under Section 365 of the Bankruptcy Code, even if the agreement includes non-assignment language or a bankruptcy out. To do this CART and OWRS must, among other things, provide “adequate assurance” of performance (i.e. demonstrate that OWRS has the financial means and ability to stage the races according to the terms of the promoter agreement). Road America has already argued that OWRS has done little to prove it will be able to fund an ’04 season, especially in light of a cost structure that lead to catastrophic cash incineration in ’03. OWRS and its principals will have to prove that adequate capital is available and at risk (i.e. can’t be pulled off the table if things get dicy) and that sufficient teams are committed with adequate funding of their own. 1/18 is the date by which OWRS must furnish these assurances. Promoters will have until 1/23 to object. Road America has already taken steps to schedule depositions of the OWRS principals to investigate this key issue.
6. St. Petes apparently is no longer a postponment for ‘04. In his argument that circumstances did not justify an emergency sale of assets, California Speedway’s attorney noted that all promoter agreements provide for scheduling of races on dates that are mutually agreeable and that the early races such as Long Beach could simply be pushed later into the season. As an example of this, he cited the St. Petes postponement. After conferring briefly with CART’s General Counsel, CART’s bankruptcy attorney responded that the St. Petes race is cancelled, not postponed.
7. Expect the asset purchase agreement to be amended to reflect the true cash purchase price of $1.6 million. Instead of assuming obligations to pay team prize money, OWRS will agree to purchase the prize money claims from the teams and then release the claims at the closing of the CART-OWRS sale. CART agreed that the purchase of prize money claims will not be considered when evaluating a competing bid. The big question for purposes of competing bids is going to be what value should be assigned to the assumption by OWRS of the promoters agreements. CART asserts that if this is not part of the bid, the estate will face claims of approximately $55 million. Therefore, any bid which does not include the assumption of promoters contracts must exceed the ridiculous sum of $56.6 million. California Speedway intends to demonstrate that the promoter agreements can terminated without damage and that the $55 million figure is a red herring and should be ignored. This will all happen on the 28th as well.
8. Final note - Judge Otte is clearly not a race fan. He admitted to understanding very little about auto racing of any type and had to ask where Road America was located.
Anyway, back to lurking…
indyracer56
12-31-03, 12:47 PM
Originally posted by JoeBob
There's also an interesting from-the-seats posting at Trackforum: http://www.trackforum.com/forums/showthread.php?s=&threadid=36512
3. Notwithstanding the equivocal nature of its initial press release, Road America stated it has no intention or desire to hold a Champ Car event in ’04. It pointed out that it would not have an adequate opportunity to promote the race to the public or to prospective sponsors, given the lack of clarity regarding such things as TV coverage, quality of team/driver line-ups and OWRS’s ability to actually stage a professional race. Road America also noted it has lost money each of the last 2 years on the CART events.
So, it looks like Road America does not want a Cart/OWS race in 2004?
No Mid-Ohio and no Road America?
That stinks. :(
jonovision_man
12-31-03, 01:13 PM
Originally posted by indyracer56
So, it looks like Road America does not want a Cart/OWS race in 2004?
No Mid-Ohio and no Road America?
That stinks. :(
I'm amazed that any of the track contracts are transferable... hopefully enough promoters stick around so that CART/OWRS has somewhere to race in 2004!
Canadax3 + Mexicox2 + Austraila + Korea + LBGP = 8
Anything else solid? Denver, Cleveland? It's really not looking very good for even a dozen races for the schedule, which means probably renting Las Vegas or something just to plump it up a bit.
jono
RaceGrrl
12-31-03, 02:10 PM
Originally posted by nrc
RA has gone so far as to put in a written objection to CART's motion to pay salary and benefit payments to their employees. It's telling that RA finds itself on the same side as ISC. While they send their PR reps out to do spin and damage control they seem intent on sinking CART.
What I find interesting is that RA's PR person didn't manage to find her way to OffCamber to spin their story. I suppose it's because OC is too small to be considered important, but I'd like to think it's because we have zero tolerance for shenanigans of that kind here.
Originally posted by RaceGrrl
What I find interesting is that RA's PR person didn't manage to find her way to OffCamber to spin their story. I suppose it's because OC is too small to be considered important, but I'd like to think it's because we have zero tolerance for shenanigans of that kind here.
CW didn't have much tolerance for her either. :D But she waded on in, anyway.
I think RA's true colors are about to be displayed, if they haven't been already.
There are snakes in the kettle moraine.
RaceGrrl
12-31-03, 04:21 PM
SteveH- I know CW didn't have tolerance for her, I didn't buy it from the start, and posted that right off. She hasn't been back there either.
What? tell us more! Some PR lady went onto Crapwagon and tried to sell RA's side of the picture? I didnt see that. When did this happen?
Thanks in advance
Ziggy
Dirty Sanchez
12-31-03, 05:00 PM
Hope you're ready to read...
THIS THREAD (http://cartfanatics.com/forums/showthread.php?s=&threadid=12700) is 12 pages long. :D
Hey thanks. Im into page seven by this time. WOW, alot of passion over there! I think it's a really good barometer on how the fans feel. Elmer George has hit a couple of home runs already. Greenie kills me! I like it!
Ziggy
indyracer56
12-31-03, 05:52 PM
Originally posted by jonovision_man
I'm amazed that any of the track contracts are transferable... hopefully enough promoters stick around so that CART/OWRS has somewhere to race in 2004!
Canadax3 + Mexicox2 + Austraila + Korea + LBGP = 8
Anything else solid? Denver, Cleveland? It's really not looking very good for even a dozen races for the schedule, which means probably renting Las Vegas or something just to plump it up a bit.
jono
Sounds like the 2004 race season could be like the IRL's 2000 race season, when they only ran 9 races between January and October.
I just hope that if they do end up with 10 or less races, that they can schedule them close together and get as many on network TV as possible.
Maybe even some 2 hour highlight shows from several of the races, like they did before the Brands Hatch race this year, they could have 2 or 3 of those on CBS.
Just a thought.
The IRL raced in 2000? I thought it was just Indy........
Top Five baby!
Ziggy
Seems like Cheryl only jumps on the 'net when Road America is arguing with CART. She protests too much, which makes RA look guilty.
Like Zevon sang, "Send lawyers guns and money......."
jonovision_man
01-01-04, 10:29 AM
Originally posted by indyracer56
Sounds like the 2004 race season could be like the IRL's 2000 race season, when they only ran 9 races between January and October.
I just hope that if they do end up with 10 or less races, that they can schedule them close together and get as many on network TV as possible.
Maybe even some 2 hour highlight shows from several of the races, like they did before the Brands Hatch race this year, they could have 2 or 3 of those on CBS.
Just a thought.
More likely we'll see the races on Spike... who knows, they might spend some money to put them on network, but it'll cost them.
I hope it gets done right, whatever they decide, because for this thing to stop losing money will take a big up-tick in viewers and in turn sponsorship.
jono
jonovision_man
01-01-04, 10:43 AM
Originally posted by Crapus
Hope you're ready to read...
THIS THREAD (http://cartfanatics.com/forums/showthread.php?s=&threadid=12700) is 12 pages long. :D
Whew... exhausting!
I'm a bit sympathetic to Cheryl's cause... RA is being asked to let the transfer of the contract go on faith. It's got to be in their best interests to bring OWRS to the table and negotiate a contract, and sounds like they are well in the right to do so.
My bet: this won't be a stumbling block, RA and OWRS will hammer out a contract independent of the bankrupcy proceedings. It's not in either's best interest not to talk.
jono
Powered by vBulletin® Version 4.2.5 Copyright © 2024 vBulletin Solutions Inc. All rights reserved.