Craig Says Probably No Solution to IRL War

05/14/96

Andrew Craig, President and CEO of of Championship Auto Racing Teams/Indy Car addressed the Motor Press Guilds monthly luncheon meeting to: 1. discuss the future and philosophy of CART and, 2. rebut IRL Competion Director, Carey Agajanians comments on the two sanctioning bodies embrolio made by Carey at the last MPG meeting.

FUTURE OF CART

CART is going global with its "product" and will be racing in Japan next year and Europe in 2000. TV and sponsors is what CART is all about. A race purse pays for about 5% of a racing teams overhead. Sponsors pay the rest. CART races are seen in 187 countries with one billion viewers annually...55 million per race. The overseas races will all be on ovals. CARTs marketing direction is to give sponsor value for their expenditures. CART will expand its race schedule to 20 races and though they do not want to go head to head with football on TV they can now consider races in May a month that for years was reserved entirely for the Indy 500 preparation.

LAW SUITS

A.J.Foyt is suing CART, Emmerson Fittipaldi is suing IRL. IRL is suing CART over the INDY CAR name tradmark. CART is counter suing. A new complaint was filed yesterday but Craig hasn't seen it. The CART race...U.S. 500 at Michigan Speedway the same day as the Indy 500 has 6000 tickets left but Craig is not worried. He said that when the TV networks get around to hyping the event they will sell out. All hospitality suites/tents are sold.

IRL vs CART

Craig said that though his board consists of track owners and car builders they do not sway votes. The association is not manipulated by anyone. Their competition is open to everyone. CART does not believe in "managed competition" and that his group promotes competiveness whereas IRL will legislate against a pop-off valve if anyone starts going too fast. Craig says that the Indy 500 will reach a few million TV homes whereas the U.S. 500 will be seen by 60 million people world wide.

Bill Maloney -- The Auto Channel