Vannini lands second CART bombshell

Vannini, who owns almost 10 percent of CART's common stock, has filed a second briefing with the Securities and Exchange Commission in which he calls for the ousting of the six team owners who serve on the CART Board of Directors due to multiple conflicts of interest. They are Chip Ganassi, Barry Green, Carl Haas, U.E. 'Pat' Patrick, Gerald Forsythe and Derrick Walker.

He also wants CART to install Long Beach Grand Prix founder Chris Pook in an executive role with responsibility for the company's day-to-day racing operations.

Vannini's SEC letter read in part: "These actual and potential conflicts include, but are not limited to:

1) Several team owners are also promoters of race events, either directly or in partnership with others.

2) The team owners may have economic relationships with industry suppliers that have interests and objectives that are contrary to those of the Company.

3) Certain team owners are or might become full-time participants in the series sponsored by our direct competitors.

4) Certain team owners have positions on various committees of the Board, which gives them an influence with management that may be contrary to the Company's interests.

5) One team owner sold an enterprise to the Company for over US$10 million that was shortly thereafter closed, resulting in a nearly US$10 million charge to earnings.

6) Several team owners sold significant stock just prior to the Company's adoption of a new engine package that was universally scorned and immediately precipitated the withdrawal of the remaining two engine suppliers. CART's stock price predictably dropped sharply after the public announcement.

This list is far from exhaustive but illustrates the existence of serious actual and potential conflicts of interest between these directors and CART. This situation is untenable. For that reason, I urge these directors to resign their positions immediately."