CART announces Open Wheel buy-out offer
CART, the Champ Car World Series promoter in Indianapolis, IN, has now received a formal buy-out offer. Open Wheel Racing Series, a new holding company owned indirectly by a group of investors including Gerald Forsythe, Kevin Kalhhoven, Paul Gentilozzi, Carl Russo and Motorock (the motorsport concert promoter), has submitted a letter of intent to acquire all outstanding shares in CART at a price of $0.50 per share
CART says it has declined to sign the letter, but is engaged in negotiations regarding a possible transaction with the group. A copy of the filing is available from the US Security Exchange Commission.
Open Wheel currently holds beneficial ownership of 3,377400 shares in CART (22.9 percent of the outstanding share stock), all owned by Forsythe or entities controlled by him.
The members of Open Wheel, which has offices in Menlo Park, CA, have committed initial additional startup funding of $15m to their company after the proposed acquisition, which would enable it to continue to operate the business of CART, including the Champ Car World Series. They say that, if a third party intending to continue to operate the business makes a superior offer, they would support that offer.
They say that the offer price reflects CART's requirement for significant additional capital to maintain its ongoing operations and the fact that, if this capital were raised through an equity financing, CART shareholders would likely suffer sufficient dilution to reduce the market price of the Common Stock to less than the offer price.
They stress that they believe that CART's format, which features races on superspeedways, ovals, temporary street courses in urban settings and permanent road courses, can be successful with the proper organisational and capital structure.
Open Wheel would focus on CART's three constituencies: fans, sponsors and teams. Open Wheel would seek to broaden the fan base by maintaining the current series format as well as entering into strategic agreements with other parties (including Motorock) to organise music festivals, concerts, events and contests in conjunction with CART racing events. This would provide enhanced value to sponsors by increasing the fan base both at race venues and via other broadcast mediums. The financial interests of the teams are best promoted by creating a stable business environment.
Magazine: F1 Hungarian GP review, FE London and BTCC Knockhill
Last weekend's Formula 1 Hungarian Grand Prix, featuring another Ferrari clanger and Max Verstappen victory, is our focus on the cover of this week’s Autosport magazine, out today (4 August).
MotorsportDays LIVE reveals date of 2022 show at Silverstone
Motorsport Network is excited to announce that MotorsportDays LIVE will be held at Silverstone on 4-5 November 2022.
Red Bull F1 driver Perez to enter team in Agag's E1 powerboat series
Red Bull Formula 1 driver Sergio Perez is to enter a squad in the electric powerboat series being established by Formula E co-founder Alejandro Agag.
McLaughlin laments "inevitable" demise of Pukekohe Supercars track
Three-time Supercars champion Scott McLaughlin says the impending closure of the famous Pukekohe Park circuit in his native New Zealand is sad but inevitable.
Why romanticism isn't the key factor in Lola’s racing return
The iconic Lola name is being relaunched after it was taken over by new ownership. Part of that reboot is a planned return to racing, though the exact details of this are still to be finalised - though its new owner does have a desire to bring the brand back to the Le Mans 24 Hours. But romanticism doesn't appear to be the driving force behind this renewed project...
Rating the best drivers of the century so far
Autosport's Top 50 feature has been a staple of the magazine for the past two decades since its first appearance in 2002. Here are the drivers that have featured most prevalently during that time
The best motorsport moments of 2021
Motorsport produced one of its greatest years of all-time in 2021 despite a backdrop of ongoing COVID-19 challenges and an ever-changing racing landscape. Through the non-stop action Autosport has collected the finest moments from the past 12 months to highlight the incredible drama and joy motorsport generates
The racing comeback artists who resurrected long-dormant careers
Making it in motorsport can be tough, and sometimes drivers move elsewhere before their best chance arrives. Here are some of those who made it back
The hidden racing gem attracting ex-F1 heroes
It’s rarely mentioned when it comes to assessing the best national contests, but the Brazilian Stock Car series that reaches its climax this weekend has an ever-growing appeal. Its expanding roster of ex-Formula 1 names has helped to draw in new fans, but it's the closeness of competition that keeps them watching
The one-time Schumacher rival rebooting his career Down Under
Joey Mawson made waves in the middle of the last decade, beating future Haas Formula 1 driver Mick Schumacher - among other highly-rated talents - to the 2016 German F4 title. A run in F1's feeder GP3 category only caused his career to stall, but now back in Australia Mawson's S5000 title success has set that to rights
The lesson football’s would-be wreckers could learn from racing
OPINION: The greed-driven push for a European Super League that threatened to tear football apart is collapsing at the seams. Motor racing's equivalent, the football-themed Superleague Formula series of 2008-11, was everything that the proposed ESL never could be
The F1 and Indy 'nearly man' that found contentment in Japan
Having had the door to F1 slammed in his face and come within three laps of winning the Indianapolis 500, the collapse of a Peugeot LMP1 shot meant Japan was Bertrand Baguette's last chance of a career. But it's one which he has grasped with both hands