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Brickman
07-08-04, 11:27 AM
Penske the peacemaker
Business motives drive racing owner to center of reunification controversy
By Anthony Schoettle aschoettle@ibj.com

Arguably the most powerful team owner in open-wheel racing, Roger Penske is in the odd role of peacemaker between the warring Indy Racing League and Champ Car.
After all, it was Penske who led team owners to form Champ Car forerunner CART in a dispute with the open-wheel sanctioning body U.S. Auto Club in 1978. That division led to a feud between CART principals and Indianapolis Motor Speedway President Tony George, which led to the IRL’s formation in 1994. Penske abandoned his beloved CART for the IRL in 2002.
History’s rounded the track, though, and Penske thinks open-wheel racing needs a czar. And the decision is grounded in business. “We have sponsors telling us all the time, ‘We’re not about controversies and confusion,’” Penske Racing Presi- dent Tim Cindric said. “They say, ‘When the clouds part, call us.’ We’re knocking on a lot of the same doors as the leagues, so I’d be surprised if they haven’t heard the same message.”
Current open-wheel sponsors are getting restless.
“We’ve never wavered in being involved in both series,” said Al Speyer, executive director of Bridgestone/Firestone Motorsports. “We do believe if there was one series we and a lot of other sponsors would benefit from greater exposure. There’s just too much focus on the division and reunification, and not enough on the excellent on-track racing.”
Penske has emerged as flux between the hardened positions of Champ Car and IRL, thanks to a New York Times column he wrote in May. NASCAR’s got the France family, he noted, and Formula One has Bernie Ecclestone. Open-wheel racing needs Tony George.
A single hand can guide the series toward the necessary ingredients of major sponsors, which begets cash to operate as well as the attention of fans and media, sources said.
“Everyone in Champ Car and the IRL thinks their brand is golden,” said Randy Schwoerer, president of a local sports and entertainment marketing firm that has represented numerous open-wheel properties. “Their brand isn’t golden.
“The simple way of building a brand is by aligning with partners with a bigger brand than your own, who can take your brand to a higher level by marketing to new audiences,” Schwoerer added. “Somebody has to get realistic, and say, ‘We can’t build this alone.’ If they could, they would have by now.”
A common sentiment among many open-wheel insiders is that Champ Car will fail later this year or early next. The company’s three principals—Gerald Forsythe, Kevin Kalkhoven and Paul Gentilozzi—will either run out of money or the will to prop up the series and fold it, the notion goes.
Conservative projections have the trio shelling out more than $30 million to keep Champ Car turning laps this season.
Many of those same sources point out the IRL has a better TV deal, stronger suppliers, more sponsors, more teams and more cars than Champ Car. Once Champ Car folds, the prevailing thought goes, George can scoop up its rival’s best roadracing venues to strengthen his series.
But if Penske’s decisions are businessdriven, said Dennis McAlpine, a financial analyst in New York who has covered Champ Car and CART since its formation, the IRL must also have some serious problems.
John Barnes, co-owner of the IRL’s Panther Racing team, fueled that notion when he told the Kansas City Star in June, “I think the [IRL] series is on the verge of collapse from [the affordability] standpoint.”
And if IRL officials think Champ Car is merely going to roll over and die, they may have another thing coming. Champ Car President Dick Eidswick said his series has a business plan that could keep it running despite losing money for up to three years.
“You have to wonder what [Champ Car’s] motives are,” Schwoerer said. “At some point, you’d think they’d get tired of writing checks and want to focus on racing.”
IRL and Champ Car officials did not return phone calls seeking comment.
While the IRL has the marketing muscle of Honda and Toyota behind it and a rights-fee TV deal with ABC and ESPN, the series is in its second straight season of TV ratings decline. Most races earn a Nielsen Media Research rating about one-fifth of NASCAR races. Even ratings for the Indianapolis 500 were down 11 percent to 4.1 this year.
“If you have this marketing muscle, and you know these two Japanese engine makers alone are spending millions and millions, and it’s not doing any good in terms of fan attendance and TV ratings, what’s that tell you?” analyst McAlpine said. “I think it’s simple, but do those that matter want to hear?”
If the two series resolve their Hatfield/McCoy feud, Schwoerer said, more cars could chase a single title through a variety of circuits, just like old times.
“But would it put more fans in the seats and increase TV ratings?” he asked. “That’s all that matters. Anyone who thinks a unified series is going to bring sponsors out of the woodwork doesn’t understand sports marketing.”
Egos and politics aside, motorsports sources agree open-wheel teams and series sponsors can’t afford to let the gap between them and other forms of racing grow any wider.
“It’s funny how things have come full circle,” said Zak Brown, head of local motorsports marketing firm Just Marketing. “[It’s] 10 years later, and about the only substantial thing that’s been accomplished is a racing series has been destroyed. Open-wheel racing had this big fight, the sport got stuck in neutral, and 75 million people became NASCAR fans. It makes you wonder what’s next.”

www.ibj.com

:thumbup: Spot on.

Turn7
07-08-04, 11:33 AM
Who turned the rock over that you've been hiding under? They need an *** whoopin'.

Mr. Vengeance
07-08-04, 11:40 AM
Open-wheel racing needs Tony George.


I beg to differ...



“You have to wonder what [Champ Car’s] motives are,” Schwoerer said. “At some point, you’d think they’d get tired of writing checks and want to focus on racing.”

That goes both ways, no?

G.
07-08-04, 11:43 AM
Good article, but tough to get past
Open-wheel racing needs Tony George.

Yeah. He'll fix it. Fix it good. :rolleyes:

Brickman
07-08-04, 11:47 AM
Good article, but tough to get past

Yeah. He'll fix it. Fix it good. :rolleyes:

I strongly disagree with that line. I think he needs to step down in a unified series.

Spicoli
07-08-04, 11:47 AM
I wish Speyer would STFU. Just how much $$$ does he pay to be involved in CCWS or EARL? Can anyone tell me what their level of sponsorship is? A dollar amount please?

This is just more drivel from Tony Schoettle, a southside Indy kid who thinks he has some insight as to what's going on, when in truth he is just being fed the same old spin crap from Fred/FTG/GomerLeague.

"Once ChampCar folds...."? WTF is that? No - Schoettle isn't biased. :shakehead

Gimme a break Brickman, this is "SPOT OFF". Its SO easy to see.....

Like I said before, ChampCar fans - sit back with a frosty mug of your favorite and watch Rome burn.

Brickman
07-08-04, 11:52 AM
I wish Speyer would STFU. Just how much $$$ does he pay to be involved in CCWS or EARL? Can anyone tell me what their level of sponsorship is? A dollar amount please?

This is just more drivel from Tony Schoettle, a southside Indy kid who thinks he has some insight as to what's going on, when in truth he is just being fed the same old spin crap from Fred/FTG/GomerLeague.

"Once ChampCar folds...."? WTF is that? No - Schoettle isn't biased. :shakehead

Gimme a break Brickman, this is "SPOT OFF". Its SO easy to see.....

Like I said before, ChampCar fans - sit back with a frosty mug of your favorite and watch Rome burn.

It was the prevailing thought that "once Champ Car folds" George would step in and scoop up tracks. CCWS isn't going to fold. Therefore a new though of unification steps in. Besides... you can't buy loyalty with a check and the only way to even keep 1/2 the fans is for a melding of the two series and TG to step down.

KLang
07-08-04, 11:58 AM
Funny thing, the new owners think they are doing OK:

From the Las Vegas press conference yesterday:


PAUL GENTILOZZI: I wanted to say, there is no uncertainty about our series. We're very certain where we're going with the series, and I think have made huge gains this year.

Go ahead, Kevin.

KEVIN KALKHOVEN: I want to reemphasize that. The owners are absolutely committed to the future of the series. No one is in any doubt about that whatsoever. We knew what we were going into when we started. We're actually ahead of our business plan. Things are motoring along very nicely. We're very, very comfortable with the future. The second part of the question was for Paul Tracy.

Spicoli
07-08-04, 11:59 AM
It was the prevailing thought that "once Champ Car folds" George would step in and scoop up tracks. CCWS isn't going to fold. Therefore a new though of unification steps in. Besides... you can't buy loyalty with a check and the only way to even keep 1/2 the fans is for a melding of the two series and TG to step down.

doodle - living in Indy I hear that **** every day. Everyone, includoing Schoettle, just assumes that TG is the right choice.

He must go NOW, before anyone even decides where the table is, much less sits down at it.

Can't buy loyalty with a check? Check out the payroll at GomerLeague. LMFAO.

You sure can.

BNica
07-08-04, 12:03 PM
That article is drivel for the most part. "Sources Said": the sport needs Tony :gomer: "Sources Said" OWRS is going to fade away. If its going to fade away, WHY reunify then? Its obvious that OWRS has something that Penske craves LIKE RACES, TEAMS, AND FANS!!

Dumb, dumb, dumb

mexican
07-08-04, 12:14 PM
the only way to even keep 1/2 the fans is for a melding of the two series and TG to step down.

and the odds of that happening is about the same as the odds of you not posting anymore on this forum, right? :gomer:

RaceGrrl
07-08-04, 12:23 PM
Don't we have two or three threads about unification already? :rolleyes:

Madmaxfan2
07-08-04, 12:48 PM
Beware of saviors who mention the word "brand". IF businessmen think the the IRL and OWRS brands are weak, these are not the businessmen I want involved with open wheel racing. Branding is a marketing weasel term for pretending to be in the know while not having to reveal your ignorance. :p

nrc
07-08-04, 01:17 PM
Can't buy loyalty with a check? Check out the payroll at GomerLeague. LMFAO.

You sure can.

You can't buy loyalty with a check. You can only rent it.

FRANKY
07-08-04, 01:22 PM
Brickman you previously wrote that the manufacturers could have forced a unification by boycotting both series. I suggest they try it. Firestone pulling out from either series won't work. It is good to read an article that points out faults from both series. No to Tony George and time to move on. Champ Car is a shadow of itself and the Earl is still a shadow.

pchall
07-08-04, 01:27 PM
Indianapolis Business Journal

Rooting for the home team everytime the check clears. :rolleyes:

Chief
07-08-04, 01:28 PM
If the two series resolve their Hatfield/McCoy feud, Schwoerer said, more cars could chase a single title through a variety of circuits, just like old times.

WHAT WAS WRONG WITH OLD TIMES? Is this not the most OBVIOUS point missed by everyone everywhere? IBJ needs to get Lord Sagamore to answer these questions and quit skimming the top of the subject. Sickening ad nauseum.... :middlefingertowardFTG

Methanolandbrats
07-08-04, 02:22 PM
FTG needs to step in front of a moving bus. That is all open wheel racing "needs" him to do.

cart7
07-08-04, 02:49 PM
“We have sponsors telling us all the time, ‘We’re not about controversies and confusion,’” Penske Racing Presi- dent Tim Cindric said. “They say, ‘When the clouds part, call us.’ We’re knocking on a lot of the same doors as the leagues, so I’d be surprised if they haven’t heard the same message.”

Thanks for validating a so-called internet only rumour Tim. ;)

I figured it had to do with Penske's ability to sustain life after Marlboro. I'd also say this whole unification/merger/capitulation or whatever you want to call it will be sponsor driven. Simple, next year T & H announce they'll still supply engines to the earl but not the financial support all the little sucklings on they're teets have gotten used to. Earl teams will be forced to maintain themselves on Dept. store, Big Gulp and whiskey money and that's when the whining will start and the earl car counts drop. Even then I don't know if dumb *** TG will be smart enough to figure any of it out. :shakehead

4wheeldrifter
07-08-04, 03:49 PM
Open-wheel racing needs Tony George.

That's all you really needed to read in this article to get the gist. Open wheel racing needs Tony George about as bad as it needed him in 1995. Somewhat ironically, it also needs a case of the clap about as badly as it needs FTG :thumdown: :shakehead

And of course, Brickman you are right. Any form of "merger" would have to include the lack of FTG. Without this, you don't get the fans, which makes it all for naught.

RacinM3
07-08-04, 05:53 PM
tick, tick, tick.....the more time goes by, the less anybody cares.

Spicoli
07-08-04, 06:00 PM
You guys know your schit.

Mr. Schoettle should get an email to read this.

Ankf00
07-08-04, 07:20 PM
No OC'ers showed up at my cube on friday for the party, so I emptied the pony keg myself. Saturday was a tough morning :(. But the beer was worth it.

RTKar
07-08-04, 08:06 PM
"Penske has emerged as flux between the hardened positions of Champ Car and IRL, thanks to a New York Times column he wrote in May. NASCAR’s got the France family, he noted, and Formula One has Bernie Ecclestone. Open-wheel racing needs Tony George."


Ummmmm......NO! :shakehead

Classic Apex
07-08-04, 10:26 PM
It was the prevailing thought that "once Champ Car folds" George would step in and scoop up tracks. CCWS isn't going to fold. Therefore a new though of unification steps in. Besides... you can't buy loyalty with a check and the only way to even keep 1/2 the fans is for a melding of the two series and TG to step down.

http://www.slightlywarped.com/forumpictures/threadsucks/suidog.jpg

Are ya happy now, Brickman?

Madmaxfan2
07-09-04, 12:12 PM
Chances of RP and company forcing Tony to his knees. TG and the IRL has survived the following events in it's history

1.Upon announcement of its formation, people in CART laughed and stated it will never work. Who will be the drivers? What tracks will host the events other than IMS? Louden and Phoenix left CART and Walt Disney World built a speedway to create the first IRL schedule.
2.When CART scheduled Road America on the same day as Loudon, Tony fires back with 28/5 debacle, CART announces the US 500 to run the same day as the 96 Indy 500, everybody asked will Tony find participants and fans to show up. They did, and while the field was questionable, the stands were largely filled.
3.Death of Scott Brayton.
4.Completed first season with a newly added event at Las Vega Motor Speeday.
5.Announced new chassis and engine regulations for 97 season. Cart chassis and engine manufacturers stated no interest. Yet, Dallera and G –Force announce their intention to build IRL chassis and GM and Nissan will build the engines.
6.Texas Motor speedway scoring debacle in which Billy Boat was declared the winner. Later Arie Luyendyke was named the winner. George Gossage is outraged at this turn off events and publically states this is unacceptable. TG fires USAC as the IRL sanctioning body, and reconfigures the IRL as a sanctioning body. Second season is completed, I believe that TG publically kills the CART overtures for unification at this point in time.
7.Spectator deaths at Lowes Motor Speedway, Humpy Wheeler had enough and tells the public no more future IRL events at Lowes.
8.Loses two series sponsors in Pep Boys and Northern Lights.
9.Three IRL presidents have left the IRL, Jerry Hueyer (left before IRL turns its first wheels), Jack Long, and Leo Mehl
10.Two fired marketing directors , Bill Donaldson and Bob Reif.
Given the above events I personally thought that would kill the IRL, it still exists.Therefore, RP's implied threats of unified actions of tire manufacturers, engine manufacturers and ex –Cart teams leaving the IRL do not intimidate Tony George into caving in. It is evidence that TG is battle hardened and will not agree to unification. As for how Tony will counteract, I have some thoughts there too.

Brickman
07-09-04, 01:12 PM
I think through out the IRL's history the "vision" has changed depending on the winds.

I'm not going to argue the stupid 25/8 rule and if it was retaliatory or not.

I believe TG thought he could build a series regardless of CART. But just as CART became focused primarily on the IRL the same can be said for the IRL. Always looking for the next domino to put the series over the top and knock the wheels off of CART.

Unification talks were in full swing (though NO details every leaked out) until Little Al became available, it was just like TG to think a marquee driver could be the answer to make his series successful. Even Penske (http://www.kcstar.com/item/pages/autoracing.pat,sports/30db0572.528,.html) was at a loss.

Then being handed Gateway and Homestead by CART was the answer.

Then going to bed with ISC with Kansas, Chicagoland, Nazareth, Michigan, California, Richmond was the answer.

Then getting Toyota was the answer.

Then Honda.

Then the next magic domino was buying CART assets for 13 million.

Later Lola.

But right now it's road courses.

What needs to happen is for the manufacturers to boycott both series unless a viable solution is found. Same for tire manufacturers. A cooperative effort by those with horsepower. It's so easy to come up with a profit sharing plan for TV revenues and an administrative fee charged to each venue regardless of if the venue came from Champ Car or Indy Car. Money would go into and advertising and points fund. ISC and SMI opperate under the same umbrella of NASCAR.

But it isn't going to happen.

If it is true that Firestone/Bridgestone will leave both series, it isn't enough. If it is true that TG's family said stop the red ink, it isn't enough. Until all involved realize that the only way to get open wheel back on track is to cooperate.

But since I very much doubt that that will happen, I thing the IRL will go right turning at Watkins Glen, Sears Point, Mid-Ohio, Road America, and Long Beach IF they can get their hands on it. The same old same old hunt for the magic domino.

Spicoli
07-09-04, 06:04 PM
I think through out the IRL's history the "vision" has changed depending on the winds.

I'm not going to argue the stupid 25/8 rule and if it was retaliatory or not.

I believe TG thought he could build a series regardless of CART. But just as CART became focused primarily on the IRL the same can be said for the IRL. Always looking for the next domino to put the series over the top and knock the wheels off of CART.

Unification talks were in full swing (though NO details every leaked out) until Little Al became available, it was just like TG to think a marquee driver could be the answer to make his series successful. Even Penske (http://www.kcstar.com/item/pages/autoracing.pat,sports/30db0572.528,.html) was at a loss.

Then being handed Gateway and Homestead by CART was the answer.

Then going to bed with ISC with Kansas, Chicagoland, Nazareth, Michigan, California, Richmond was the answer.

Then getting Toyota was the answer.

Then Honda.

Then the next magic domino was buying CART assets for 13 million.

Later Lola.

But right now it's road courses.

What needs to happen is for the manufacturers to boycott both series unless a viable solution is found. Same for tire manufacturers. A cooperative effort by those with horsepower. It's so easy to come up with a profit sharing plan for TV revenues and an administrative fee charged to each venue regardless of if the venue came from Champ Car or Indy Car. Money would go into and advertising and points fund. ISC and SMI opperate under the same umbrella of NASCAR.

But it isn't going to happen.

If it is true that Firestone/Bridgestone will leave both series, it isn't enough. If it is true that TG's family said stop the red ink, it isn't enough. Until all involved realize that the only way to get open wheel back on track is to cooperate.

But since I very much doubt that that will happen, I thing the IRL will go right turning at Watkins Glen, Sears Point, Mid-Ohio, Road America, and Long Beach IF they can get their hands on it. The same old same old hunt for the magic domino.

Blah blah blah..

http://www.slightlywarped.com/forumpictures/whoares/care-o-meter.jpg

Just having fun buddy ;)


Now lets all grab a drink and let off a little steam. I'm gonna party like a Treadway tonight! :gomer:

devilmaster
07-09-04, 06:57 PM
PIC

I didn't know anyone could care to the amount of Pi......
:D

"Honey, I love you more than Pi to the 30th digit itself....."

Steve