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Old 06-28-2006, 10:36 AM   #1
TheStang00
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IRL, Champ Car agree to 'ownership sharing' deal

http://sports.espn.go.com/rpm/news/s...d=1&id=2500033

Quote:
Originally Posted by espn.com
The Indy Racing League and Champ Car have taken important steps toward unifying the two open-wheel series of American racing.

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.

Fred Nation, a spokesman for Indianapolis Motor Speedway, said Kalkhoven and IRL founder Tony George must still work out potential pitfalls, such as who assumes the duties of principal owner.

"One of the challenges going forward with a new series is what form it would take and who would own it," Nation said. "It's still not resolved who would own what."

The Indianapolis Star on Sunday said the parties have an "ownership sharing agreement," although Kalkhoven characterized developments to the AP as "more a progress report than anything else."

IRL founder and chief executive Tony George told the Star: "We've agreed conceptually [to share ownership]. Now we have to agree on how we would go about resolving differences that might come up."

Kalkhoven agreed that finding a way to settle disagreements is critical.

He said one option under discussion is choosing a person who would arbitrate differences or be the deciding vote. Among the names reportedly brought up are Roger Penske, an IRL team owner and one of the founders of Champ Car's predecessor, CART; and longtime CART star Mario Andretti.

"Obviously, we need some kind of tiebreaker," Kalkhoven said. "We've had suggestions on both sides, but nothing has been resolved at this point."

Timing is another issue. With both series near the midway point of their seasons and trying to finalize next year's schedule, Nation called this the worst time of the year to be negotiating.

Nation also sounded pessimistic about a unification deal being reached in time for the 2007 season.

"We're making progress slowly, but whether it's in time for '07 is hard to predict," he said. "Both sides are ready to keep at this, but it's unlikely to be done in time for '07."

Kalkhoven said he supports an idea put forward by IRL president Brian Barnhardt suggesting the IRL and Champ Car run separate races at the same venue once or twice next season.

Kalkhoven, a Champ Car team owner and co-owner of the series that was racing in Cleveland on Sunday, remains "very optimistic that we can get this done."

"What it means, though, is we have a lot of agreements on a lot of issues and there are still a lot of issues to resolve," Kalkhoven added.

Among other issues still to be decided are which races survive a merger and what chassis and engine combination a unified series would run.

"The good news is that Tony and I are talking," Kalkhoven said. "And, as I've said from the start, doing it right is more important than just getting it done."

Also, Kalkhoven and Champ Car president Steve Johnson have said the 2007 schedule will leave free time in May for any Champ Car teams or drivers to compete in the IRL's Indianapolis 500.

The IRL began competition in 1996, starting a damaging split in the open-wheel world that cut into an already diminished fan base and sinking TV ratings and scared away big-money sponsors. Both sides have struggled since, with CART eventually sinking into bankruptcy and being resurrected in 2004 as Champ Car.

There have been several previous attempts by representatives of both sides to negotiate some kind of peace or merger, but none has succeeded. The latest talks began in December when Kalkhoven and George had a chance meeting and began developing a friendship and dialogue.

"We have had some face-to-face meetings but, mostly, we stay in contact by telephone and e-mail and we continue to have a very good relationship," Kalkhoven said.
great news, something is finally getting done here.
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