More for Wilke & the lawyers
I got this from the article I post on this forum on 7/31 and would once again enjoy reading your analysis. Perhaps some of the lawyers here could join in:
One of the world’s greatest open-wheel series could have had a far different future
"In point of fact, there’s an even more difficult document for CART to explain. In a “Motion to Quash in the matter of Joseph F. Heitzler vs. U.E. `Pat' Patrick / Carl A. Haas,” Southern California motorsports journalist Steve N. Mayer is fighting motions filed from both sides in the lawsuit. Attorneys for both Heitzler and Patrick/Haas want him to turn over notes he used in writing two pieces for National Speed Sport News shortly after Heitzler was hired by CART as Chris Pook’s predecessor. There’s a hearing scheduled August 11th in Federal Court.
In the motion, Mayer spends more than two dozen pages fighting the demand for his notes citing, among other things, the California Shield Law designed to protect journalists who want to protect their sources. Mayer’s main argument is this: the information exists elsewhere and I can’t tell you anything beyond what’s been published anyway.
In making the arguments, though, Mayer documents many problems within CART that contributed more to its problems than the bumbling of the last two management regimes."
Anyway to find out what happened in that ruling, perhaps it is holding up the "announcement"?
Does anyone know what happened in the Aug. 11 hearing? I'd like to see Mayer's pleadings in defense of his move to quash the subpoenas. You're right, Diron....it's of interest now because it brings other things into play.
The Heitzler lawsuits must be gumming up the works of a buyout, particularly since he and ex-CART CFO Randy Dzierzawski have been Forsythe employees since they were broomed at CART. No doubt in my mind that the buyout and Heitzler suits are tied together in some way. Thanx for posting.
Clearly, the issue of buying CART and taking it private is secondary. Any number of interested people could do that easily and do it today. The tricky part is the huge investment it will take before the company turns a profit. That date has slipped and every projection that indicates CART can make money is predicated on the idea that sponsors and engine companies return to the series and soon. At this point, I've seen no indication that either will happen. The key, of course, is the engine companies. Robin Miller used to write that they were CART's biggest sponsors, spending upwards of $150 million a year. Again, nobody has demonstrated yet that any of them, let alone all of them, are coming back and if they do, that they will spend anything like the money that they were spending before.
Without this influx of cash, CART continues to lose big for years and anybody with a brain and a calculator can see this. Here's but one example: CART is funding all the cars, paid for the lights at Cleveland, co-promoted the race, had reasonably good attendance.....and lost money. Throw in the associated TV package and they lost BIG money. How are they going to turn that around? How are they going to find promoters at Cleveland or Portland or Mid-Ohio who will say, "I'll take over. Here's my check for $X million.' It ain't there.
Jim, I find it difficult to believe how many people interested in CART on the boards do not understand the dynamics of what's taking place.
First of all, taking it private is viewed as some kind of magic wand by CART loyalists. It ain't. But those listening to Mark C. do his thing believe it is.
Few in the forest understand if/when, okay, now it's private, NOW what needs to be done. Potential new owners are certainly looking at that and that's why a deal of some kind has yet to surface.
By taking the company private, the owners will again be able to control, their own destiny and the speed with which they eat their own young.
Too funny Austin, I thought casino cocktail waitresses did that.
In taking it back private, they could do some of the ugly, tasteless, possibly illegal or necessary things that need to be done to survive, and do it behind closed doors.
Without the engine companies and big sponsors, it doesn't matter. The money just isn't there. And taking it private does nothing to attract the dollars.
"Hey, Mr. Clarke. You're Honda's Racing guy. We're private now so we can slip a few extra bucks to Carl Haas if we need to."
"Big deal. Hope it works out."