(by Matt Beer autosport.com 3-6-09)
KV Racing team boss Jimmy Vasser is optimistic that his squad can add a second car for the second half of the IndyCar Series.
Mario Moraes is currently KV's only confirmed driver for the 2009 season, and the team recently had to release a group of employees due to their lack of sponsorship. They ran Will Power and Oriol Servia in a two-car line-up last year.
But Vasser is optimistic that KV can get a second car in the field for the Indianapolis 500 and hopefully beyond. Servia and Paul Tracy are among the candidates for the seat.
"At the very least we're going to have at least one more car at Indy," he told Indianapolis radio station 1070 The Fan.
"Most probably a car from Indy on forward. I don't think it's probable that we'll have two cars for the full season. But I really believe we can put the second car together from Indy."
He dismissed any suggestion that he would contest the Indy 500 himself.
"I always thought that if I was going to do that I need my financing in place by last November, and quite honestly getting me in the car is at the bottom of the line," Vasser said. "I'm working on deals for Oriol Servia, Paul Tracy and so on. I think there's a very small chance for Jimmy Vasser."
Although Dale Coyne Racing convert Moraes will be KV's sole representative in the early rounds, Vasser is confident that the young Brazilian - who was sixth quickest in the Homestead test - can fight for victories.
"If anybody is surprised, they were underestimating his abilities," said Vasser. "He impressed me a lot on the road courses late last year. He was quicker than (teammate) Bruno (Junqueira), and if you saw him at Chicago, he was not afraid to stick his nose up in there.
"I think he impressed a lot of people at Homestead. I don't want to jump the gun and say that Mario's going to do all sorts of things, but I know what Mario wants to do - he wants to run up front. He's 20 years old and I think there's no discounting his natural ability.
"I think we can give him the car that he can take his break-out win in this year."
Friday, March 6, 2009
Wednesday, March 4, 2009
Castroneves' tax trial offers lesson to his fellow drivers
(by Brant James sportsillustrated.com 3-4-09)
When Danica Patrick talks about Helio Castroneves, you can imagine her sitting on the floor of her Phoenix home amid hundreds of files, contracts and tax documents. It would be the middle of the night, Patrick with a flashlight in one hand, magnifying glass in the other, mumbling gibberish as she speed-reads the forms.
Patrick's pit-in-stomach moment was not so anecdotally perfect, but it was profound and jarring for someone who earned $5 million in 2007 (according to a Forbes.com list which ranked her as the 95th highest-paid celebrity in America) and, at 26, is one of the most recognizable, marketable and bankable figures in sports. The feisty Indy Racing League driver with the Swimsuit-edition portfolio was a virtual license to print money even before she won her first race last spring. Earning it is one thing. Keeping it is another. So is making sure bills get paid, like taxes. That point becomes poignant this week with two-time Indianapolis 500-winner Castroneves going on trial in Miami on seven counts of federal tax evasion, crimes punishable by more than six years in prison.
Castroneves -- whose business manager is his sister, Kati -- claimed in January that complex contract language so confused him that he did not understand at times what he was signing. Defense attorney Roy Black said in opening arguments on Tuesday that Castroneves is ignorant of United States tax laws, and his defense seems to partly hinge on how a jury factors ignorance of personal affairs when considering the guilt of the charismatic Brazilian who gained multi-national fame as a Dancing with the Stars champion.
"I feel strongly and positively about it, especially when I started educating myself in this matter," Castroneves said in January. "I'm reading stuff with the type of language, I have no idea what it is. Even if it was in Portuguese, it would still be confusing to me"
Castroneves, 33, is hardly alone in being bedeviled by the details. Weeks before the start of the NASCAR season, Sprint Cup driver Elliott Sadler admitted he was unsure of the contents of his contract with Richard Petty Motorsports even as the team attempted to depose him from the No. 19 Dodge and replace him with A.J. Allmendinger. Sadler eventually retained his job by threatening possible legal action.
Patrick is determined not to be snared. It was a revelation late in coming.
"Number one, it's sad when you have to revert to the contract all the time because it should just be... you all just should be upstanding with each other," Patrick said, "but anyway, I was reading my contract this winter -- I'll be super honest -- I didn't know much about my finances. I didn't know about how much was coming in, where it was going, when it was coming and going. I would ask 'Could I afford this?' 'Can I get this money here?' '[Do] I want to do this?' Remember those commercials where knowledge is power? I really believe that now. The more I know, the less that I can be taken advantage of. So I learned about all my finances and stuff."
Entertainers in general and athletes in particular have long been the prey of the unscrupulous. Insurance schemes, bogus investments, and high margins siphon the riches earned by those unwilling or unable to defend themselves by becoming savvy with regard to their finances. Retired Sprint Cup champion Bobby Allison, 71, reportedly went bankrupt, and former drivers such as Sam Ard reached old age bereft of their health and earnings. But Castroneves' alleged financial missteps threaten to end his career in its prime or send him to prison.
Black said on Tuesday that Castroneves never attempted to skirt U.S. income tax, but intended to pay the tax on about $5 million in income in question after a decade-old deal was completed.
"All his taxes were properly done. They were properly paid," Black said.
Prosecutor Matt Axelrod claimed Castroneves, with the help of his sister and sports attorney Alan Miller -- who listed Sprint Cup driver Kyle Busch as a client until 2007 -- used a Panamanian corporation to evade taxes since 1999.
"When it came time to pay taxes on the millions of dollars that he made, he turned his back. He didn't pay," Axelrod said.
Prosecutors claim Miller helped Castroneves avoid paying taxes on $5 million from his initial contract with Penske Racing in 1999 by having it diverted under a deferred royalty deal to a Dutch company. Axelrod claims Miller asked for the revision to the contract when he learned Penske would withhold 30 percent of the $5 million in taxes.
Castroneves was to receive the money this May. The defense attorney said Castroneves would pay taxes upon receipt, while prosecutors say taxes were already owed, even though he'd not received the money.
"It was the only way they could achieve their goal of having Helio Castroneves illegally get his money tax-free," Axelrod said.
Castroneves' bind is a lesson to young drivers like Patrick, but it's one many veterans had to learn as they grew up in the sport.
Sprint Cup driver Tony Stewart, who oversees a portfolio that includes 16 business entities including, for the first time this year, a two-car Sprint Cup team, employs a squadron of managers to run his enterprises and utilizes Motorsports Management Inc. to coordinate his finances.
"When it comes to major decisions involving Tony's career, whether racing or business-related, autonomous decisions are seldom made," said Brett Frood, his former chief operating officer who now an executive vice president at Stewart-Haas Racing. "Diligence is performed and ideas are always bouncing around between Tony and his executive management team, with valuable feedback from (MMI) and his company."
Sprint Cup driver Jeff Gordon tasked his stepfather, John Bickford, with setting up and maintaining his business interests when he became instantly wealthy in his early 20s.
Patrick called Castroneves' situation unfortunate and described him as a "really nice guy" who "would do anything for you if you really needed it." If Castroneves is exonerated after what is expected to be a six-week trial, he should do something for an IRL that needs star power of his degree: get wiser about his finances and protect himself. He should do what Patrick is doing.
"Trust me, I am still a little lost, because it is not my forte, but I just started learning about different spreadsheets and things, the breakdown of where all my money goes and how much we spend here and there and so on," Patrick said. "Now I look at it and I'm like, "We spent how much on what? What's this? What's this category?" I think it's a really good healthy step into a mature direction for me, as a person. I should know."
When Danica Patrick talks about Helio Castroneves, you can imagine her sitting on the floor of her Phoenix home amid hundreds of files, contracts and tax documents. It would be the middle of the night, Patrick with a flashlight in one hand, magnifying glass in the other, mumbling gibberish as she speed-reads the forms.
Patrick's pit-in-stomach moment was not so anecdotally perfect, but it was profound and jarring for someone who earned $5 million in 2007 (according to a Forbes.com list which ranked her as the 95th highest-paid celebrity in America) and, at 26, is one of the most recognizable, marketable and bankable figures in sports. The feisty Indy Racing League driver with the Swimsuit-edition portfolio was a virtual license to print money even before she won her first race last spring. Earning it is one thing. Keeping it is another. So is making sure bills get paid, like taxes. That point becomes poignant this week with two-time Indianapolis 500-winner Castroneves going on trial in Miami on seven counts of federal tax evasion, crimes punishable by more than six years in prison.
Castroneves -- whose business manager is his sister, Kati -- claimed in January that complex contract language so confused him that he did not understand at times what he was signing. Defense attorney Roy Black said in opening arguments on Tuesday that Castroneves is ignorant of United States tax laws, and his defense seems to partly hinge on how a jury factors ignorance of personal affairs when considering the guilt of the charismatic Brazilian who gained multi-national fame as a Dancing with the Stars champion.
"I feel strongly and positively about it, especially when I started educating myself in this matter," Castroneves said in January. "I'm reading stuff with the type of language, I have no idea what it is. Even if it was in Portuguese, it would still be confusing to me"
Castroneves, 33, is hardly alone in being bedeviled by the details. Weeks before the start of the NASCAR season, Sprint Cup driver Elliott Sadler admitted he was unsure of the contents of his contract with Richard Petty Motorsports even as the team attempted to depose him from the No. 19 Dodge and replace him with A.J. Allmendinger. Sadler eventually retained his job by threatening possible legal action.
Patrick is determined not to be snared. It was a revelation late in coming.
"Number one, it's sad when you have to revert to the contract all the time because it should just be... you all just should be upstanding with each other," Patrick said, "but anyway, I was reading my contract this winter -- I'll be super honest -- I didn't know much about my finances. I didn't know about how much was coming in, where it was going, when it was coming and going. I would ask 'Could I afford this?' 'Can I get this money here?' '[Do] I want to do this?' Remember those commercials where knowledge is power? I really believe that now. The more I know, the less that I can be taken advantage of. So I learned about all my finances and stuff."
Entertainers in general and athletes in particular have long been the prey of the unscrupulous. Insurance schemes, bogus investments, and high margins siphon the riches earned by those unwilling or unable to defend themselves by becoming savvy with regard to their finances. Retired Sprint Cup champion Bobby Allison, 71, reportedly went bankrupt, and former drivers such as Sam Ard reached old age bereft of their health and earnings. But Castroneves' alleged financial missteps threaten to end his career in its prime or send him to prison.
Black said on Tuesday that Castroneves never attempted to skirt U.S. income tax, but intended to pay the tax on about $5 million in income in question after a decade-old deal was completed.
"All his taxes were properly done. They were properly paid," Black said.
Prosecutor Matt Axelrod claimed Castroneves, with the help of his sister and sports attorney Alan Miller -- who listed Sprint Cup driver Kyle Busch as a client until 2007 -- used a Panamanian corporation to evade taxes since 1999.
"When it came time to pay taxes on the millions of dollars that he made, he turned his back. He didn't pay," Axelrod said.
Prosecutors claim Miller helped Castroneves avoid paying taxes on $5 million from his initial contract with Penske Racing in 1999 by having it diverted under a deferred royalty deal to a Dutch company. Axelrod claims Miller asked for the revision to the contract when he learned Penske would withhold 30 percent of the $5 million in taxes.
Castroneves was to receive the money this May. The defense attorney said Castroneves would pay taxes upon receipt, while prosecutors say taxes were already owed, even though he'd not received the money.
"It was the only way they could achieve their goal of having Helio Castroneves illegally get his money tax-free," Axelrod said.
Castroneves' bind is a lesson to young drivers like Patrick, but it's one many veterans had to learn as they grew up in the sport.
Sprint Cup driver Tony Stewart, who oversees a portfolio that includes 16 business entities including, for the first time this year, a two-car Sprint Cup team, employs a squadron of managers to run his enterprises and utilizes Motorsports Management Inc. to coordinate his finances.
"When it comes to major decisions involving Tony's career, whether racing or business-related, autonomous decisions are seldom made," said Brett Frood, his former chief operating officer who now an executive vice president at Stewart-Haas Racing. "Diligence is performed and ideas are always bouncing around between Tony and his executive management team, with valuable feedback from (MMI) and his company."
Sprint Cup driver Jeff Gordon tasked his stepfather, John Bickford, with setting up and maintaining his business interests when he became instantly wealthy in his early 20s.
Patrick called Castroneves' situation unfortunate and described him as a "really nice guy" who "would do anything for you if you really needed it." If Castroneves is exonerated after what is expected to be a six-week trial, he should do something for an IRL that needs star power of his degree: get wiser about his finances and protect himself. He should do what Patrick is doing.
"Trust me, I am still a little lost, because it is not my forte, but I just started learning about different spreadsheets and things, the breakdown of where all my money goes and how much we spend here and there and so on," Patrick said. "Now I look at it and I'm like, "We spent how much on what? What's this? What's this category?" I think it's a really good healthy step into a mature direction for me, as a person. I should know."
Tuesday, March 3, 2009
Lawyer: Castroneves would pay in May
(by the Associated Press 3-3-09)
MIAMI -- Race car driver and "Dancing with the Stars" winner Helio Castroneves never sought to evade U.S. income taxes and planned to pay the Internal Revenue Service when he received $5 million from a deal made a decade ago, his attorney told a federal jury Tuesday.
Defense attorney Roy Black said in an opening statement that the Brazilian driver, a two-time winner of the Indianapolis 500, knows nothing about U.S. tax laws and relied on experts to handle his finances. Black said there was no scheme to hide money from the IRS.
"All his taxes were properly done. They were properly paid," Black told the 12-person jury.
Prosecutor Matt Axelrod disagreed, describing a series of allegedly fraudulent deals dating to 1999 involving a Panamanian corporation created to dodge taxes. Axelrod accused Castroneves' business manager-sister, Katiucia, and Michigan sports attorney Alan Miller of playing a role in the fraud.
"When it came time to pay taxes on the millions of dollars that he made, he turned his back. He didn't pay," Axelrod said.
The three are charged in a seven-count indictment with tax evasion and conspiracy, which could land each of them behind bars for more than six years. The trial is expected to last up to six weeks.
Central to the case is the ownership of the Panamanian entity, Seven Promotions. Black said it was formed by Castroneves' father to promote his son's early racing career and that the younger Castroneves had no ownership. Axelrod said it was set up to appear that way, and that all three defendants repeatedly lied about the race car driver's control of the business.
When Castroneves was hired in late 1999 to drive for Team Penske, the contract drawn up by Miller called for about $5 million to go to Seven Promotions. But Miller then asked Penske not to pay the money, saying he wanted it shifted under a deferred royalty deal to a Dutch company called Fintage Licensing B.V.
Black and Miller's lawyer, Robert Bennett, said that was legal, and that Castroneves will pay taxes on the money when he gets the money in May.
Axelrod said the deal was a diversion because Miller discovered Penske would withhold 30 percent of $5 million for taxes before transferring the money to Seven Promotions.
Axelrod claims even though Castroneves has not been directly paid the Penske money, he should have paid taxes long ago. The ultimate goal, the prosecutor said, was for Castroneves to leave the U.S. and escape the IRS.
"It was the only way they could achieve their goal of having Helio Castroneves illegally get his money tax-free," Axelrod said.
Black disputed the theory and said Castroneves lives in Coral Gables, a Miami suburb.
Prosecutors also claim Castroneves neglected to pay U.S. taxes on income from a sponsorship deal with the Brazilian company Coimex and that he didn't declare as income thousands of dollars worth of clothes and airline tickets he got from other deals.
Castroneves, 33, won the Indy 500 in 2001 and 2002 and the TV dance competition in 2007. He has been temporarily replaced on Team Penske by Australian Will Power pending the outcome of the trial. The Indy Racing League season begins April 5.
MIAMI -- Race car driver and "Dancing with the Stars" winner Helio Castroneves never sought to evade U.S. income taxes and planned to pay the Internal Revenue Service when he received $5 million from a deal made a decade ago, his attorney told a federal jury Tuesday.
Defense attorney Roy Black said in an opening statement that the Brazilian driver, a two-time winner of the Indianapolis 500, knows nothing about U.S. tax laws and relied on experts to handle his finances. Black said there was no scheme to hide money from the IRS.
"All his taxes were properly done. They were properly paid," Black told the 12-person jury.
Prosecutor Matt Axelrod disagreed, describing a series of allegedly fraudulent deals dating to 1999 involving a Panamanian corporation created to dodge taxes. Axelrod accused Castroneves' business manager-sister, Katiucia, and Michigan sports attorney Alan Miller of playing a role in the fraud.
"When it came time to pay taxes on the millions of dollars that he made, he turned his back. He didn't pay," Axelrod said.
The three are charged in a seven-count indictment with tax evasion and conspiracy, which could land each of them behind bars for more than six years. The trial is expected to last up to six weeks.
Central to the case is the ownership of the Panamanian entity, Seven Promotions. Black said it was formed by Castroneves' father to promote his son's early racing career and that the younger Castroneves had no ownership. Axelrod said it was set up to appear that way, and that all three defendants repeatedly lied about the race car driver's control of the business.
When Castroneves was hired in late 1999 to drive for Team Penske, the contract drawn up by Miller called for about $5 million to go to Seven Promotions. But Miller then asked Penske not to pay the money, saying he wanted it shifted under a deferred royalty deal to a Dutch company called Fintage Licensing B.V.
Black and Miller's lawyer, Robert Bennett, said that was legal, and that Castroneves will pay taxes on the money when he gets the money in May.
Axelrod said the deal was a diversion because Miller discovered Penske would withhold 30 percent of $5 million for taxes before transferring the money to Seven Promotions.
Axelrod claims even though Castroneves has not been directly paid the Penske money, he should have paid taxes long ago. The ultimate goal, the prosecutor said, was for Castroneves to leave the U.S. and escape the IRS.
"It was the only way they could achieve their goal of having Helio Castroneves illegally get his money tax-free," Axelrod said.
Black disputed the theory and said Castroneves lives in Coral Gables, a Miami suburb.
Prosecutors also claim Castroneves neglected to pay U.S. taxes on income from a sponsorship deal with the Brazilian company Coimex and that he didn't declare as income thousands of dollars worth of clothes and airline tickets he got from other deals.
Castroneves, 33, won the Indy 500 in 2001 and 2002 and the TV dance competition in 2007. He has been temporarily replaced on Team Penske by Australian Will Power pending the outcome of the trial. The Indy Racing League season begins April 5.
Monday, March 2, 2009
Tax trial begins for Castroneves
(by the Associated Press 3-2-09)
MIAMI -- On top of the world a few months ago, Brazilian race car driver and "Dancing with the Stars" champ Helio Castroneves faces possible prison time if convicted at a tax evasion trial that began Monday with jury selection.
Castroneves, a two-time winner of the Indianapolis 500, smiled broadly as he entered Miami's downtown federal courthouse. Prosecutors say Castroneves, his business-manager sister Katiucia and Michigan attorney Alan R. Miller conspired to hide about $5.5 million in income from the Internal Revenue Service using offshore accounts.
Castroneves claims he relied on experts to advise him on handling finances. He also says his father controlled a Panamanian entity called Seven Promotions at the heart of the prosecution's case.
Castroneves claims the money Seven Promotions received wasn't his tax liability because the income was for his father, who had financed and promoted his son's career for over 10 years.
Castroneves, his sister and Miller also deny acting "willfully" to evade taxes and that they took improper deductions.
Under federal sentencing guidelines, Castroneves, 33, could get more than six years in prison if convicted of conspiracy and tax evasion from 1999 to 2004. That would short-circuit a brilliant racing career that began in Sao Paulo, Brazil, where a youthful Castroneves broke into the sport by driving go-carts.
Before the trial, U.S. District Judge Donald Graham rejected defense efforts to introduce a large amount of racing memorabilia and numerous photos of Castroneves' rise from obscurity to the pinnacle of his sport.
"It seems to me that many of these exhibits are far afield of the issues in this case," Graham said.
Graham said he hoped to seat a jury of 12 people plus alternates by late Monday or Tuesday. Many prospective jurors said they had watched Castroneves either in a race or on the TV dance competition, which he won in 2007.
"I watched him every week on 'Dancing With The Stars' and you feel like you know the person," one female juror said. Asked by prosecutor Matt Axelrod if that would impact her ability to be impartial, the woman answered, "Probably."
Another male juror said he had called in to vote for Castroneves 12 times on the TV show. "I was a huge fan of his," the man said.
Defense questions focused mainly on whether jurors relied on professional expertise to file their taxes and whether they expected to pay the least amount possible under the law.
The trial is expected to take up to six weeks, and Castroneves has already been temporarily replaced on Team Penske by Australian driver Will Power for the Indy Racing League season that starts April 5 in St. Petersburg.
Two other prominent Latin American drivers -- Brazilian Tony Kanaan and Colombian Juan Pablo Montoya -- may testify on Castroneves' behalf, along with Miami philanthropist Adrienne Arsht.
Miller, a former professional football player turned attorney, has former Buffalo Bills quarterback and ex-U.S. House member Jack Kemp and racing mogul Roger Penske on his witness list.
The defense legal team also sports some big names: Miller is represented by Robert Bennett, who was President Bill Clinton's lawyer in the Paula Jones sexual harassment case; Roy Black, who represented radio host Rush Limbaugh in his prescription drug misuse case is there on behalf of Castroneves.
Castroneves, who lives in Coral Gables, won the Indy 500 in 2001 and 2002, then rocketed to even greater fame in 2007 by winning the television show dancing competition with partner Julianne Hough. Castroneves and his co-defendants were indicted Oct. 2.
MIAMI -- On top of the world a few months ago, Brazilian race car driver and "Dancing with the Stars" champ Helio Castroneves faces possible prison time if convicted at a tax evasion trial that began Monday with jury selection.
Castroneves, a two-time winner of the Indianapolis 500, smiled broadly as he entered Miami's downtown federal courthouse. Prosecutors say Castroneves, his business-manager sister Katiucia and Michigan attorney Alan R. Miller conspired to hide about $5.5 million in income from the Internal Revenue Service using offshore accounts.
Castroneves claims he relied on experts to advise him on handling finances. He also says his father controlled a Panamanian entity called Seven Promotions at the heart of the prosecution's case.
Castroneves claims the money Seven Promotions received wasn't his tax liability because the income was for his father, who had financed and promoted his son's career for over 10 years.
Castroneves, his sister and Miller also deny acting "willfully" to evade taxes and that they took improper deductions.
Under federal sentencing guidelines, Castroneves, 33, could get more than six years in prison if convicted of conspiracy and tax evasion from 1999 to 2004. That would short-circuit a brilliant racing career that began in Sao Paulo, Brazil, where a youthful Castroneves broke into the sport by driving go-carts.
Before the trial, U.S. District Judge Donald Graham rejected defense efforts to introduce a large amount of racing memorabilia and numerous photos of Castroneves' rise from obscurity to the pinnacle of his sport.
"It seems to me that many of these exhibits are far afield of the issues in this case," Graham said.
Graham said he hoped to seat a jury of 12 people plus alternates by late Monday or Tuesday. Many prospective jurors said they had watched Castroneves either in a race or on the TV dance competition, which he won in 2007.
"I watched him every week on 'Dancing With The Stars' and you feel like you know the person," one female juror said. Asked by prosecutor Matt Axelrod if that would impact her ability to be impartial, the woman answered, "Probably."
Another male juror said he had called in to vote for Castroneves 12 times on the TV show. "I was a huge fan of his," the man said.
Defense questions focused mainly on whether jurors relied on professional expertise to file their taxes and whether they expected to pay the least amount possible under the law.
The trial is expected to take up to six weeks, and Castroneves has already been temporarily replaced on Team Penske by Australian driver Will Power for the Indy Racing League season that starts April 5 in St. Petersburg.
Two other prominent Latin American drivers -- Brazilian Tony Kanaan and Colombian Juan Pablo Montoya -- may testify on Castroneves' behalf, along with Miami philanthropist Adrienne Arsht.
Miller, a former professional football player turned attorney, has former Buffalo Bills quarterback and ex-U.S. House member Jack Kemp and racing mogul Roger Penske on his witness list.
The defense legal team also sports some big names: Miller is represented by Robert Bennett, who was President Bill Clinton's lawyer in the Paula Jones sexual harassment case; Roy Black, who represented radio host Rush Limbaugh in his prescription drug misuse case is there on behalf of Castroneves.
Castroneves, who lives in Coral Gables, won the Indy 500 in 2001 and 2002, then rocketed to even greater fame in 2007 by winning the television show dancing competition with partner Julianne Hough. Castroneves and his co-defendants were indicted Oct. 2.
Friday, February 27, 2009
Oh, what a difference a year makes
(by Tony DiZinno Motorsport.com 2-27-09)
Much has transpired since February of 2008 in the increasingly smaller world of American open-wheel racing. Akin to Pluto, it once formed a part of racing's solar system but has since been banished to levels of obscurity leaving its fans jilted and depressed and much of what made it great gone forever, hopes of sprouting again as likely as Donald Trump and Rosie O'Donnell collaborating on business ventures.
The current global economic crisis has left so many people out of work and the racing world in shambles that it makes it very difficult to see the positives for the future without enduring what will come the next few years. No one is immune to the downturn.
In simplest terms, IndyCar racing will be lucky to survive until or much past 2011, the centennial of its hallmark race, the Indianapolis 500. This is even assuming its much-ballyhooed new car comes to fruition and at least one more manufacturer arrives to challenge Honda.
Some of the recent trends in the series are eerily reminiscent of what happened this time the last two off-seasons in Champ Car. Failure to recognize history ensures a quicker path to pitfalls if the issues facing the current series aren't addressed. It's particularly ironic that the warning signs there led to Champ Car's demise, yet the same ones plaguing IndyCar are being attributed mainly to the economic crisis.
It could be argued Honda runs the show more than any of the series officials or CEO. They are in an interesting position at the moment given their departure from Formula One after funding and fielding their own works program without much success, and a lack of a title sponsor the last two seasons following the end of tobacco advertising in Europe. They also have their Acura ALMS programs to worry about.
Granted, at this time last year there were still two series with each struggling to surpass the mid-teens in terms of participation. The outlook was bleak on both ends until last February's unification that, in hindsight, appears a band-aid to greater problems. The ball was placed in Tony George and his staff's court and most observers agreed this was their chance to begin the recovery process caused by a devastating twelve-year schism after the Indy Racing League was first created.
There is the issue of canceled races. Surfers Paradise never really had much of a chance as a one-year adopted race with sticking points in dates it desired and IndyCar wanted, and justifying the travel expense for going overseas unless paired with the event in Motegi, Japan.
Detroit's cancellation in December could be the tip of the iceberg in terms of street races, which prove costly due to construction and money put forth by city infrastructures. It's hard enough for a street race to break even let alone make a profit, and a race like Long Beach that has withstood the test of time for over 30 years is more the exception than the norm for street venues.
On-track, the net "boom" in car count was obvious for the races the series ran united, save for the split Japan-Long Beach weekend in April. Anywhere from 24 to 28 cars took the green flag, and Indianapolis saw its usual 33 with serious bumping for the first time in roughly a half dozen years.
But for 2009, teams are being forced to scale back as a result of the economic climate, and having to raise more money for engine leases that transitioning teams didn't worry about in 2008.
As drivers and fans have related, and depending on how many cars IndyCar will lose for 2009, in two years there is a potential for a net loss of 16 cars. Average the 18 apiece for Champ Car and IndyCar in 2007 for a total of 36, and the worst case scenario for 2009 is 20 or less.
Rahal Letterman Racing is likely to focus their interests to ALMS and managing the Formula BMW Championship given their loss of backing from the American Ethanol Promotion and Information Council. While no official announcements have been made as yet, rumors swirl that KV Racing and Conquest Racing will act similar to their final year in Champ Car with one car apiece and a paying driver.
This not only means fewer opportunities to drive in the de facto premier American open-wheel series but the ones that do arise will again go to those who carry the fattest checkbooks, not the most talent. Something's wrong given that proven race winners and champions Paul Tracy, Justin Wilson, Oriol Servia, Ryan Hunter-Reay, Buddy Rice and Bruno Junqueira are all free agents, not to mention the pipeline of young talent in the feeder series.
It will be hard for the series to attract more sponsors given the economy and their new television contract on Versus. No matter what is spun, at a net loss of 20 million homes at the best case scenario, fewer viewers will tune in to the series' broadcasts. It doesn't matter if the finished, televised product is better if no-one knows about it or watches it.
DirecTV was a presenting sponsor of the series but given the Versus contract, a Comcast subsidiary (a DirecTV competitor), it had no choice but to withdraw given it would not want to support one of its rivals.
Promotion of the series remains non-existent or microscopic in this arena. Other than the Danica Patrick godaddy.com ads, the only commercials featuring IndyCar drivers were produced in-house, saying which driver was in which car and their interests. Versus is at least trying with a couple teaser ads that have populated the web in recent weeks but again, if it isn't being discovered, it isn't being watched.
Why Marco Andretti isn't dropping off a movie at a Blockbuster in his IndyCar or Graham Rahal ordering a Big Mac and saying RI'm lovin' itS is beyond me, but again, hard to justify for a company if there isn't light at the end of the tunnel.
Longing for the days of Vasser/Zanardi Target ads or Mario Andretti talking about putting Havoline in your car is a losing proposition when you realize those days aren't coming back.
The adoption of Champ Car's best assets seems to be non-existent, or at least seriously declining. Races picked up include only Long Beach, Toronto and Edmonton, with Surfers Paradise getting the ax after a one year non-points trial run.
For the most part, option tires, push-to-pass, and standing starts have not been discussed or implemented. Sponsorship pending, some of the teams that made the switch this year might be hard pressed to stay in for the long run.
There is also the prospect of a pseudo-Champ Car series rising from the ashes, though quite how given the current economic climate is somewhat baffling.
Ben Johnston, the Atlanta businessman who also recently purchased the assets of the Atlantic Championship, has proposed the GreenPrix USA Series, which will be older Champ Car chassis racing at Savannah, Ga. this March. Supposedly the program is a show up and drive type concept, but still in the development stages, without many official press releases.
To be fair to IndyCar though, it is the dog days of a long off-season that started in September (the non-points October race in Australia notwithstanding) and won't end until the first race in early April at St. Petersburg. News is slow to come in but until the change of the calendar and some minor sponsorship acquisitions, the end of 2008 closed with a bulk of bad news.
All told, the cautious optimism from the a year ago has descended into a stupefying realism that times will be worse for IndyCar racing in the immediate future before they get better. As Kevin Kalkhoven said at the start of the year, "Unification was the first step, but not a magic bullet to fixing all that ails the sport." Some witnessed the warning signs before Champ Car's demise and the timing of the economic crisis despite the unification cannot have helped IndyCar's long-term prospects.
Much has transpired since February of 2008 in the increasingly smaller world of American open-wheel racing. Akin to Pluto, it once formed a part of racing's solar system but has since been banished to levels of obscurity leaving its fans jilted and depressed and much of what made it great gone forever, hopes of sprouting again as likely as Donald Trump and Rosie O'Donnell collaborating on business ventures.
The current global economic crisis has left so many people out of work and the racing world in shambles that it makes it very difficult to see the positives for the future without enduring what will come the next few years. No one is immune to the downturn.
In simplest terms, IndyCar racing will be lucky to survive until or much past 2011, the centennial of its hallmark race, the Indianapolis 500. This is even assuming its much-ballyhooed new car comes to fruition and at least one more manufacturer arrives to challenge Honda.
Some of the recent trends in the series are eerily reminiscent of what happened this time the last two off-seasons in Champ Car. Failure to recognize history ensures a quicker path to pitfalls if the issues facing the current series aren't addressed. It's particularly ironic that the warning signs there led to Champ Car's demise, yet the same ones plaguing IndyCar are being attributed mainly to the economic crisis.
It could be argued Honda runs the show more than any of the series officials or CEO. They are in an interesting position at the moment given their departure from Formula One after funding and fielding their own works program without much success, and a lack of a title sponsor the last two seasons following the end of tobacco advertising in Europe. They also have their Acura ALMS programs to worry about.
Granted, at this time last year there were still two series with each struggling to surpass the mid-teens in terms of participation. The outlook was bleak on both ends until last February's unification that, in hindsight, appears a band-aid to greater problems. The ball was placed in Tony George and his staff's court and most observers agreed this was their chance to begin the recovery process caused by a devastating twelve-year schism after the Indy Racing League was first created.
There is the issue of canceled races. Surfers Paradise never really had much of a chance as a one-year adopted race with sticking points in dates it desired and IndyCar wanted, and justifying the travel expense for going overseas unless paired with the event in Motegi, Japan.
Detroit's cancellation in December could be the tip of the iceberg in terms of street races, which prove costly due to construction and money put forth by city infrastructures. It's hard enough for a street race to break even let alone make a profit, and a race like Long Beach that has withstood the test of time for over 30 years is more the exception than the norm for street venues.
On-track, the net "boom" in car count was obvious for the races the series ran united, save for the split Japan-Long Beach weekend in April. Anywhere from 24 to 28 cars took the green flag, and Indianapolis saw its usual 33 with serious bumping for the first time in roughly a half dozen years.
But for 2009, teams are being forced to scale back as a result of the economic climate, and having to raise more money for engine leases that transitioning teams didn't worry about in 2008.
As drivers and fans have related, and depending on how many cars IndyCar will lose for 2009, in two years there is a potential for a net loss of 16 cars. Average the 18 apiece for Champ Car and IndyCar in 2007 for a total of 36, and the worst case scenario for 2009 is 20 or less.
Rahal Letterman Racing is likely to focus their interests to ALMS and managing the Formula BMW Championship given their loss of backing from the American Ethanol Promotion and Information Council. While no official announcements have been made as yet, rumors swirl that KV Racing and Conquest Racing will act similar to their final year in Champ Car with one car apiece and a paying driver.
This not only means fewer opportunities to drive in the de facto premier American open-wheel series but the ones that do arise will again go to those who carry the fattest checkbooks, not the most talent. Something's wrong given that proven race winners and champions Paul Tracy, Justin Wilson, Oriol Servia, Ryan Hunter-Reay, Buddy Rice and Bruno Junqueira are all free agents, not to mention the pipeline of young talent in the feeder series.
It will be hard for the series to attract more sponsors given the economy and their new television contract on Versus. No matter what is spun, at a net loss of 20 million homes at the best case scenario, fewer viewers will tune in to the series' broadcasts. It doesn't matter if the finished, televised product is better if no-one knows about it or watches it.
DirecTV was a presenting sponsor of the series but given the Versus contract, a Comcast subsidiary (a DirecTV competitor), it had no choice but to withdraw given it would not want to support one of its rivals.
Promotion of the series remains non-existent or microscopic in this arena. Other than the Danica Patrick godaddy.com ads, the only commercials featuring IndyCar drivers were produced in-house, saying which driver was in which car and their interests. Versus is at least trying with a couple teaser ads that have populated the web in recent weeks but again, if it isn't being discovered, it isn't being watched.
Why Marco Andretti isn't dropping off a movie at a Blockbuster in his IndyCar or Graham Rahal ordering a Big Mac and saying RI'm lovin' itS is beyond me, but again, hard to justify for a company if there isn't light at the end of the tunnel.
Longing for the days of Vasser/Zanardi Target ads or Mario Andretti talking about putting Havoline in your car is a losing proposition when you realize those days aren't coming back.
The adoption of Champ Car's best assets seems to be non-existent, or at least seriously declining. Races picked up include only Long Beach, Toronto and Edmonton, with Surfers Paradise getting the ax after a one year non-points trial run.
For the most part, option tires, push-to-pass, and standing starts have not been discussed or implemented. Sponsorship pending, some of the teams that made the switch this year might be hard pressed to stay in for the long run.
There is also the prospect of a pseudo-Champ Car series rising from the ashes, though quite how given the current economic climate is somewhat baffling.
Ben Johnston, the Atlanta businessman who also recently purchased the assets of the Atlantic Championship, has proposed the GreenPrix USA Series, which will be older Champ Car chassis racing at Savannah, Ga. this March. Supposedly the program is a show up and drive type concept, but still in the development stages, without many official press releases.
To be fair to IndyCar though, it is the dog days of a long off-season that started in September (the non-points October race in Australia notwithstanding) and won't end until the first race in early April at St. Petersburg. News is slow to come in but until the change of the calendar and some minor sponsorship acquisitions, the end of 2008 closed with a bulk of bad news.
All told, the cautious optimism from the a year ago has descended into a stupefying realism that times will be worse for IndyCar racing in the immediate future before they get better. As Kevin Kalkhoven said at the start of the year, "Unification was the first step, but not a magic bullet to fixing all that ails the sport." Some witnessed the warning signs before Champ Car's demise and the timing of the economic crisis despite the unification cannot have helped IndyCar's long-term prospects.
Wednesday, February 25, 2009
Doornbos surprised by oval driving
(by Matt Beer autosport.com 2-24-09)
Robert Doornbos admitted that he had been surprised by his first taste of oval driving after completing his maiden IndyCar Series test at Homestead last night.
The former Formula One driver joined fellow 2009 rookies Raphael Matos (Luczo Dragon), Mike Conway (Dreyer & Reinbold) and Stanton Barrett (3G) for an additional session on the Miami oval prior to the opening test of the season at Homestead tonight.
Doornbos, who completed his deal with Newman/Haas/Lanigan Racing last week, said the test had felt like his 'first day at school'.
"Driving on an oval is definitely different than I expected," he said after completing 111 laps during the evening.
"It felt like going to a new school on the first day. I didn't really know what to expect but I got a lot of information from the team but you have to do it for yourself.
"The first five laps I thought 'Oh my god, where did I end up?' But that's because you have to run at a certain pace and once you reach that pace its actually quite fun so we ended the day on a good note and I can go to bed with a smile.
"I already got the bug and want to go faster and faster so that's a good thing. Today was definitely the fastest I have gone in a race car and I am quite proud."
The Dutchman expects an even greater challenge tonight when 22 drivers are expected to take to the track for the six-hour floodlit session.
"I have no idea what to expect with traffic," said Doornbos. "It must be something like driving in the middle of the night in China, the traffic is quite bad there.
"I will just take it as it comes. It's a steep learning curve but I enjoy it like this."
Robert Doornbos admitted that he had been surprised by his first taste of oval driving after completing his maiden IndyCar Series test at Homestead last night.
The former Formula One driver joined fellow 2009 rookies Raphael Matos (Luczo Dragon), Mike Conway (Dreyer & Reinbold) and Stanton Barrett (3G) for an additional session on the Miami oval prior to the opening test of the season at Homestead tonight.
Doornbos, who completed his deal with Newman/Haas/Lanigan Racing last week, said the test had felt like his 'first day at school'.
"Driving on an oval is definitely different than I expected," he said after completing 111 laps during the evening.
"It felt like going to a new school on the first day. I didn't really know what to expect but I got a lot of information from the team but you have to do it for yourself.
"The first five laps I thought 'Oh my god, where did I end up?' But that's because you have to run at a certain pace and once you reach that pace its actually quite fun so we ended the day on a good note and I can go to bed with a smile.
"I already got the bug and want to go faster and faster so that's a good thing. Today was definitely the fastest I have gone in a race car and I am quite proud."
The Dutchman expects an even greater challenge tonight when 22 drivers are expected to take to the track for the six-hour floodlit session.
"I have no idea what to expect with traffic," said Doornbos. "It must be something like driving in the middle of the night in China, the traffic is quite bad there.
"I will just take it as it comes. It's a steep learning curve but I enjoy it like this."
Doornbos joins Newman/Haas/Lanigan
(by Matt Beer autosport.com 2-20-09)
Newman/Haas/Lanigan Racing have confirmed the signing of former Champ Car race winner and Formula One driver Robert Doornbos for the 2009 IndyCar Series.
The Dutchman raced in F1 for Minardi and Red Bull in 2005 and 2006, before moving to the Champ Car World Series with Minardi USA the following year.
He was immediately a front-runner in America, winning twice and taking third in the championship at the first attempt, but he was unable to find a drive when Champ Car and IndyCar merged last year, so instead raced in A1GP and the Superleague Formula.
"I'm very happy and proud to get this chance to race with Newman/Haas/Lanigan Racing," Doornbos said.
"Racing in the IndyCar Series has been my biggest dream and especially to do it with Newman/Haas/Lanigan Racing. The history of the team and the big success they have had in the past really attracted me, and it makes me proud to become part of this winning team."
By the time Doornbos reached Champ Car, the series has dispensed with all its oval dates, so his first taste of oval driving will come in next week's Homestead test.
"Racing on the ovals should be very exciting," said the 27-year-old. "It will be tough, but I'm training as much as possible and am in good condition and ready to achieve results. I'm also excited to race in the legendary Indy 500.
"I really want to thank Mr Haas and Mr Lanigan for giving me this chance. I'm looking forward to the first race."
Doornbos had been linked with Newman/Haas/Lanigan for much of the winter, but it took until now to finalise his deal with the team, who had been struggling for sponsorship and had to release their 2008 driver Justin Wilson. The sponsor package for Doornbos's car has yet to be announced.
Team co-owner Carl Haas said he rated Doornbos highly after he pushed then-Newman/Haas/Lanigan driver Sebastien Bourdais hard in 2007.
"He was a fierce competitor in Champ Car, and we are hoping for the same in the IndyCar Series," said Haas.
"He was able to quickly adapt to the new challenges in Champ Car, which should bode well for the learning curve we will face in getting him acclimatised to oval racing."
Graham Rahal has already been signed for Newman/Haas/Lanigan's second car, and reports in America have also linked Milka Duno to a third entry from the team.
Newman/Haas/Lanigan Racing have confirmed the signing of former Champ Car race winner and Formula One driver Robert Doornbos for the 2009 IndyCar Series.
The Dutchman raced in F1 for Minardi and Red Bull in 2005 and 2006, before moving to the Champ Car World Series with Minardi USA the following year.
He was immediately a front-runner in America, winning twice and taking third in the championship at the first attempt, but he was unable to find a drive when Champ Car and IndyCar merged last year, so instead raced in A1GP and the Superleague Formula.
"I'm very happy and proud to get this chance to race with Newman/Haas/Lanigan Racing," Doornbos said.
"Racing in the IndyCar Series has been my biggest dream and especially to do it with Newman/Haas/Lanigan Racing. The history of the team and the big success they have had in the past really attracted me, and it makes me proud to become part of this winning team."
By the time Doornbos reached Champ Car, the series has dispensed with all its oval dates, so his first taste of oval driving will come in next week's Homestead test.
"Racing on the ovals should be very exciting," said the 27-year-old. "It will be tough, but I'm training as much as possible and am in good condition and ready to achieve results. I'm also excited to race in the legendary Indy 500.
"I really want to thank Mr Haas and Mr Lanigan for giving me this chance. I'm looking forward to the first race."
Doornbos had been linked with Newman/Haas/Lanigan for much of the winter, but it took until now to finalise his deal with the team, who had been struggling for sponsorship and had to release their 2008 driver Justin Wilson. The sponsor package for Doornbos's car has yet to be announced.
Team co-owner Carl Haas said he rated Doornbos highly after he pushed then-Newman/Haas/Lanigan driver Sebastien Bourdais hard in 2007.
"He was a fierce competitor in Champ Car, and we are hoping for the same in the IndyCar Series," said Haas.
"He was able to quickly adapt to the new challenges in Champ Car, which should bode well for the learning curve we will face in getting him acclimatised to oval racing."
Graham Rahal has already been signed for Newman/Haas/Lanigan's second car, and reports in America have also linked Milka Duno to a third entry from the team.
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