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Should CHAMP Car and IRL Merge?
Updated: June 25, 2006, 4:12 PM ET
Report: IRL, Champ Car agree to ownership deal
The owners of the Indy Racing League and Champ Car World Series have reached a preliminary ownership-sharing agreement, The Indianapolis Star reported Sunday, the strongest signal yet that the decade-long fued between the rival open-wheel auto racing circuits will end with a merger.
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Champ Car World Series boss Kevin Kalkhoven told The Associated Press on Sunday there is no written agreement, although the two sides have reached an understanding. He said there are many issues to resolve, but he is "very optimistic" the deal can be completed. He characterized Sunday's report as "more a progress report than anything else."
The Star reported IRL founder and CEO Tony George and Kalkhoven say many details remain to be worked out, but that a first step toward a united open-wheel circuit could be drivers from both series competing at the 2007 Indianapolis 500.
"We've agreed conceptually [to share ownership], yes," George told the Star from Richmond International Raceway, where IRL ran the SunTrust Indy Challenge on Saturday night. "Now we have to agree on how we would go about resolving differences that might come up."
A merger of the two series most likely would happen a piece at a time rather than all at once, Kalkhoven told the newspaper.
George and Kalkhoven last met in person the week after the Indianapolis 500, the Star reported, continuing talks that began after the two owners happened to meet at an all-star race in Paris.
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"The good news is that Tony and I are talking," Kalkhoven told the AP. "And, as I've said from the start, doing it right is more important than just getting it done."
Previous attempts at a merger have fallen short, and when Champ Car's predecessor CART went bankrupt two years ago, IRL attempted to buy the assets of its rival.
The open-wheel split dates back to 1996 when George, the CEO of Indianapolis Motor Speedway, founded IRL to compete with CART. Years of hard feelings and finger-pointing followed -- and both circuits declined in popularity as NASCAR's popularity soared.
"We have to think about our own product and not be concerned with NASCAR, which has more years and more leadership," open-wheel team owner Roger Penske, who supports a merger, told the newspaper. "We have to put together a deal where we're more than dating, we're making a real partnership. That's how we'll get this back to where it belongs."
While many want to see a merger, George and Kalkhoven warned that it isn't as easy as it looks.
"You go into either paddock, and everybody wants to see it done," Kalkhoven told the Star. "The fact it hasn't been done in 10 years is indicative of how difficult it is."
<!-- next 6 grafs are new from IndyStar and own fact gathering -->Considerations for an IRL-Champ Car merger include agreeing on racing technology -- the two circuits use different car chassis and engines -- and schedules. The IRL is running 14 races this season; Champ Car is running 15.
The IRL has been using the same cars for four years and expects to run them a fifth year next season, the Star reported. All of IRL's teams run on Honda engines.
Kalkhoven told the newspaper that Champ Car will unveil its new Panoz chassis for 2007 next month at the San Jose Grand Prix and expects it will be used in a unified open-wheel series.
"You don't throw away that kind of development," Kalkhoven told the Star. "It will be extremely economic to operate."
Both circuits are expected to announce their 2007 race schedules shortly, and the Star reported that IRL's schedule is being crafted to take advantage of a possible merger. League President Brian Barnhart told the newspaper there will be a handful of weekends next year at which the IRL and Champ Car could be at the same event. The leagues could run races on consecutive days at the same track, or, Kalkhoven suggested, run on the same weekend in different cities.
George and Kalkhoven also still need to work out how the two leagues would work out disagreements going forward, according to the report.
"There are still a lot of things yet to be fully developed, and it's not going to get any better by talking about it in the media,' George told the newspaper." But I think we'll be able to agree on how we'll develop this business as one entity as we go forward."
http://sports.espn.go.com/rpm/news/story?seriesId=1&id=2500033
Updated: June 25, 2006, 4:12 PM ET
Report: IRL, Champ Car agree to ownership deal
The owners of the Indy Racing League and Champ Car World Series have reached a preliminary ownership-sharing agreement, The Indianapolis Star reported Sunday, the strongest signal yet that the decade-long fued between the rival open-wheel auto racing circuits will end with a merger.
<!-- AP graf -->
Champ Car World Series boss Kevin Kalkhoven told The Associated Press on Sunday there is no written agreement, although the two sides have reached an understanding. He said there are many issues to resolve, but he is "very optimistic" the deal can be completed. He characterized Sunday's report as "more a progress report than anything else."
The Star reported IRL founder and CEO Tony George and Kalkhoven say many details remain to be worked out, but that a first step toward a united open-wheel circuit could be drivers from both series competing at the 2007 Indianapolis 500.
"We've agreed conceptually [to share ownership], yes," George told the Star from Richmond International Raceway, where IRL ran the SunTrust Indy Challenge on Saturday night. "Now we have to agree on how we would go about resolving differences that might come up."
A merger of the two series most likely would happen a piece at a time rather than all at once, Kalkhoven told the newspaper.
George and Kalkhoven last met in person the week after the Indianapolis 500, the Star reported, continuing talks that began after the two owners happened to meet at an all-star race in Paris.
<!-- AP graf -->
"The good news is that Tony and I are talking," Kalkhoven told the AP. "And, as I've said from the start, doing it right is more important than just getting it done."
Previous attempts at a merger have fallen short, and when Champ Car's predecessor CART went bankrupt two years ago, IRL attempted to buy the assets of its rival.
The open-wheel split dates back to 1996 when George, the CEO of Indianapolis Motor Speedway, founded IRL to compete with CART. Years of hard feelings and finger-pointing followed -- and both circuits declined in popularity as NASCAR's popularity soared.
"We have to think about our own product and not be concerned with NASCAR, which has more years and more leadership," open-wheel team owner Roger Penske, who supports a merger, told the newspaper. "We have to put together a deal where we're more than dating, we're making a real partnership. That's how we'll get this back to where it belongs."
While many want to see a merger, George and Kalkhoven warned that it isn't as easy as it looks.
"You go into either paddock, and everybody wants to see it done," Kalkhoven told the Star. "The fact it hasn't been done in 10 years is indicative of how difficult it is."
<!-- next 6 grafs are new from IndyStar and own fact gathering -->Considerations for an IRL-Champ Car merger include agreeing on racing technology -- the two circuits use different car chassis and engines -- and schedules. The IRL is running 14 races this season; Champ Car is running 15.
The IRL has been using the same cars for four years and expects to run them a fifth year next season, the Star reported. All of IRL's teams run on Honda engines.
Kalkhoven told the newspaper that Champ Car will unveil its new Panoz chassis for 2007 next month at the San Jose Grand Prix and expects it will be used in a unified open-wheel series.
"You don't throw away that kind of development," Kalkhoven told the Star. "It will be extremely economic to operate."
Both circuits are expected to announce their 2007 race schedules shortly, and the Star reported that IRL's schedule is being crafted to take advantage of a possible merger. League President Brian Barnhart told the newspaper there will be a handful of weekends next year at which the IRL and Champ Car could be at the same event. The leagues could run races on consecutive days at the same track, or, Kalkhoven suggested, run on the same weekend in different cities.
George and Kalkhoven also still need to work out how the two leagues would work out disagreements going forward, according to the report.
"There are still a lot of things yet to be fully developed, and it's not going to get any better by talking about it in the media,' George told the newspaper." But I think we'll be able to agree on how we'll develop this business as one entity as we go forward."
http://sports.espn.go.com/rpm/news/story?seriesId=1&id=2500033
