Indy-Style Racing to Remain on Two Fronts

The contentious relationship between Indy-style racing’s sanctioning bodies will continue with apparently little chance for a unified series anytime soon.

A United States bankruptcy judge in Indianapolis on Wednesday awarded assets of Championship Auto Racing Teams to an upstart group of owners trying to keep the series alive.

Open Wheel Racing Series, LLC, comprised of current CART team owners Paul Gentilozzi, Kevin Kalkhoven and Gerald Forsythe, presented a winning bid of $3.265 million that would pay off creditors and included acceptance of existing contracts and liabilities of the publicly held company that filed for Chapter 11 bankruptcy. They will immediately take over operations of the Champ Car World Series.

The decision was a setback to Tony George, president of the Indy Racing League Indycar Series, whose bid on some of CART’s assets might have finally killed off the series and given the U.S. only one major Indy-style form of racing.

But George’s $13.5-million bid at the high-stakes auction in U.S. Bankruptcy Court -- more than $10 million more than the OWRS bid -- was rejected by Judge Frank J. Otte. Otte indicated that canceling most or all of the races on the 2004 CART schedule, which would be the case had the IRL bid won, would have resulted in costly litigation ranging from $10 million to $30 million from sponsors.

Among the assets George sought was CART’s race contract with the Grand Prix of Long Beach, which he would have put on his schedule in 2005; the engine contract with Ford-Cosworth, the series’ sole engine supplier, and miscellaneous equipment, including CART’s mobile medical center. The IRL has contracts with Toyota, Honda, Chevrolet and Cosworth, a subsidiary of Ford.

The Toyota Grand Prix of Long Beach, the signature event in CART, will go on as the series opener April 18 featuring CART’s Champ Cars and Toyota Atlantics.

“I’m delighted that we finally have arrived at a definitive conclusion of who’s going to be the headliner at our 30th anniversary,” said Jim Michaelian, president and Chief Executive of the Grand Prix Assn. of Long Beach. “The two things we were looking for were clarity, and for it to be done as expeditiously as possible, and I believe that was accomplished today in the courtroom.”

CART, a publicly traded company, lost about $100 million last year, depleting nearly all of its nest egg in trying to supplement teams and promote events. The ruling clears the way for the series to again be privately held, and for OWRS to continue the Champ Car World Series.

“We understand we have a philosophical difference [with the IRL],” Gentilozzi said. “All we want is to go racing.”

Otte’s ruling was in accordance with the recommendation of a six-member creditors committee, which noted OWRS’ acceptance of CART’s existing contracts and liabilities, including 2003 prize money, and the support series, which were not included in the IRL bid.

OWRS made an initial bid of $1.6 million, half of the IRL’s opening bid of $3.2 million. That’s the offer that OWRS matched Wednesday, and the IRL countered with its $13.5-million offer.

Had Otte sided with the IRL, the CART series would have been dead and the IRL would have won the open wheel war that began in 1996 when George formed his all-oval series.

Instead, CART has new life under the leadership of Gentilozzi, who told The Times on Wednesday that he expects to announce a television package within about seven days, announce a new team with an American driver -- probably Carl Russo’s team with driver A.J. Allmendinger -- within two weeks, and also announce at least two new international races. A likely candidate for one of those races is Korea.

“That really is our angle of attack as we move forward,” Gentilozzi said. “We’re going to be a good multinational series.” He added that there definitely would be 18 cars on the grid, a 16-race schedule, and that there will be championships within the championship, such as crowning series champions for the respective Mexican, Canadian and American races.

Gentilozzi added, “I have zero interest in going to Fontana,” which has been the site of CART’s season finale.

George’s insistence in 1996 on reserving 25 spots for IRL drivers in the 33-car field of the Indianapolis 500 created a wide rift with CART. Most established teams remained in CART, where the champion is crowned after competing in road, street and oval courses. Two years ago, team owner Roger Penske left CART for the IRL, and last year Chip Ganassi and Michael Andretti followed. In the race for corporate sponsorship, the IRL had taken a hefty lead.

But CART, created in 1979, remained more popular at the turnstiles -- except for the Indy 500 -- and enjoyed successful followings in Canada, Mexico and Australia. It became a publicly traded firm in 1998.

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CART Schedule

There are 13 established dates for the 16-race Champ Car World Series. At least two of the three sites to be determined will be international in nature:

* Long Beach ...April 18

* Las Vegas... May 16

* Monterrey ...May 23

* Milwaukee ...June 5

* Portland ...June 20

* Cleveland ...July 3

* Toronto ...July 11

* Vancouver ...July 25

* Elkhart Lake, Wis....Aug. 8

* Denver ...Aug. 15

* Montreal ...Aug. 29

* Laguna Seca ...Sept. 12

* Australia...Oct. 24