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FONTANA, Calif., Tuesday, Feb.
5, 2002 - The following is a transcript of the press conference Feb. 5
featuring Indy Racing League Vice President of Operations Brian Barnhart and
Vice President of Business Affairs Ken Ungar:
MR. KING: It is a pleasure to be here with you here today for the Test In
the West State of the Series Address. We're here addressing you today.
Following the conclusion of their presentation we'll take questions from
you. One of the true strengths of the Indy Racing League in this seventh
season has been the stability and consistency and professionalism of the
individuals who led to the growth of this series, and I am proud to
introduce two of them to you today. First, it is Brian Barnhart. Brian is
vice president of operations of the Indy Racing League and chief
administrator for the series and basically oversees all of the day-to-day
operations of this league. He will be addressing you second today. Brian has
been invaluable in the growth of this series and I believe you will hear
nothing but glowing comments from the drivers and team owners as they talk
about the respect they have for Brian Barnhart. And I know certainly that is
their comments of his professionalism in leading the series of Ken Unger as
the newly appointed vice president of business affairs for the Indy Racing
League. That appointment came in December of 2001, but Ken is by no means a
newcomer to the series or to the Indianapolis Motor Speedway. In fact, he
has been here pretty much from the beginning. He was named chief of staff of
the Indianapolis Motor Speedway in 1997 been involved in several key issues,
including negotiating promoter agreements and other business aspects of this
series, including the marketing of the league that he is overseeing. He was
also involved in heading up the Indianapolis Motor Speedway portion of the
Chicagoland Speedway projects. So it is a great pleasure to introduce to you
today both Ken Unger and Brian Barnhart as they address the state of the
series, Indy Racing League, as we get set to start 2002.
KEN UNGAR: Great. Thank you, Mike. It is a pleasure to be here today. As we
enter the 2002 season, the seventh, the Indy Racing League, several points
are clear. Everything points to this being the greatest season in our
history. Our momentum is growing every day. The plan for the Indy Racing
League is working and Tony George's vision of open-wheel racing in America
is quickly becoming a reality. This will be our greatest season yet. Looking
back, in 1996 we saw the Indy Racing League debut against the odds, behind
the claims of some that the league would never turn a wheel. In 1997 you saw
the first simultaneous introduction of new chassis and engines in American
racing history. 1998 through '99 saw us overcome one challenge after
another. 2002 saw the Indy Racing League break through with consistent
competition, one of the best races ever in Texas and, new aggressive
marketing and public relations plans that helped bring our league to new
markets and new customers. 2001 saw the largest number of races yet; four
sell outs, consistent growth in attendance and realization that the Indy
Racing League is open-wheel racing's future in the United States. 2002 will
be the beginning of many years to come with more growth, more stability and
strategic placement of the Indy Racing brand. Momentum is our mantra. The
number of races is growing again with 15 is year and in key open-wheel
markets here in Fontana for the Los Angeles market, Michigan as our mid-west
strategy continues to grow and Nazareth in the eastern United States. Our
television presence is getting even stronger with most of our races on ABC
this year and the balance on ESPN networks in a contract that has been
extended through the 2007 season. Our international television presence
through ESPN International will be our strongest ever and by far the best
for any American based racing series. We're pleased to have with us here
today Mr. Mark Riley, vice president of ESPN International, and Mr. Vincent
Shopan of Euro Sport. I would like to thank them for being with us here
today. All of our Promoters are pleased with the growth and value of the
Indy Racing League. We're proud of an expanded relationship with ISC,
including new races this year at Fontana, Michigan and Nazareth. We're very
proud of our relationship with the Texas Motor Speedway, SMI's Crown Jewel
of motorsports. Proud of our new races at Nashville and Gateway, tracks
within the Dover Downs family of racetracks. And we're proud of our events
at the leading independent racetracks across the country. Nowhere is growth
more important than in sponsorship, and at a time when all sports are
finding it difficult going we're proud to be adding blue chip names to the
Indy Racing League, including Chevrolet, Toyota, Worldcom, Firestone,
Marlboro, Reebok and Red Bull, to name a few, joining Nissan and Coors and
others who are increasing their commitment to the Indy Racing League.
Penske, Nunn and Blair, all well-known names in open-wheel racing are being
joined by several newcomers adding to a stable core of Indy Racing League
teams who have proven that they can compete with anyone. Our plan is
working. We're keeping it simple. American oval tracks, controlled costs,
level playing field, and opportunity for men and women who want to compete
in open-wheel cars and oval tracks and whose ultimate goal is to compete in
and within the Indianapolis 500 mile race, the greatest race in the world.
We're staying focused. Stay oval, keep costs down, provide opportunity and
have a team of individuals who know and love what they are doing. We're
working hard. We're proud that our league does more for its team and
partners than any other in motor sports. We provide services, we provide
support, we help find sponsors. We aggressively promote our races in each
market with each of our track owner partners and provide tools and manpower
to grow our sport. Tony George's vision is becoming reality. There are those
who doubt that there was a place for an oval open-wheel series in America.
There were those that doubted that costs and speed could be controlled and
that safety could be improved at the same time. There were those who doubted
that opportunity could be provided to give young men and women who prefer
open-wheel oval racing a chance for a career and those who doubted that the
Indy Racing League could stand as a result of protestors, sponsors and media
who did not believe in a similar vision. As we begin a 2002 season, we look
forward to 2003 season as well. The doubters are fewer, the believers are
growing in numbers and the Indy Racing League is close to claiming its
rightful number in sport. Tony George's vision is becoming reality, but he
would be the first to acknowledge that it is a shared vision of men and
women. People like Herb Fischel, A.J. Foyt, Leo Mehl and those who believe
in the history and tradition of open-wheel racing. So I am proud to say the
state of Indy Racing League as we enter 2002 is very good and getting
better. And you will hear and see more of why that is true as the Test in
the West moves forward. Thank you for being with us here in Fontana and
thank you for supporting the Indy Racing League.
MR. KING: Once again, vice president of business affairs, Indy Racing
League, and he will be available for questions immediately following Brian
Barnhart's address. Brian is, as we mentioned a few minutes ago, vice
president of operations for the Indy Racing League. He comes from a family
that has been involved in racing for three generations. Brian has a unique
aspect and vision when it comes to his job because he has seen racing from
all levels, including as a mechanic, chief mechanic, a crew member that has
been in victory lane with winning teams at the Indianapolis Motor Speedway,
at the 500 and won championships. Brian Barnhart understands what it is to
be a racer and understands what racers have to have to do their job. It is
with great pride that I introduce to you the vice president of operations of
the Indy Racing League, Brian Barnhart.
BRIAN BARNHART: Appreciate that, Mike, very kind words and, Ken, great job.
It is a pleasure to work alongside you heading into the 2002 season. As we
enter the new season, the Indy Racing League has never been stronger. Our
future has never been brighter and never more confident than we are right
now. Some of the highlights you can anticipate in 2002 include the
announcement of our Leader's Circle program which we made in the middle of
January, upon the creation of the new Infiniti Pro Series which will
participate beginning in July starting with the Kansas race. We have new
teams, new drivers, new suppliers and manufacturers joining us, and we have
implemented some new testing regulations and tire allotment policies which
will obviously greatly impact the budgets and amount of moneys guys can
spend and impact the competition on the racetrack. In taking those in order,
the middle of January we created a program that we called the Leader's
Circle, and the purpose of this program is to share the benefits of our
sponsor's relationships with our teams and participate on a full-time basis.
It is centered on an exclusive agreement with Firestone which we announced
at the Texas race in October. The announcement by Firestone as our exclusive
tire supplier in 2002 was a major announcement for the series. It is an
unbelievably significant commitment on Firestone's behalf to the Indy Racing
League and participants. It is on the level of title sponsor proportions and
they are making a commitment to the Indy Racing League. Because of that
commitment we've created a program to share benefits with our teams that
participate on a full-time basis. We're in agreement with Lincoln Electric
Welders. They will provide the Leader Circle participants with $15,000 worth
of welding equipment for the season. The Leader Circle participants will get
the preference and preferred economic terms from Firestone for tire supply
in 2002. Leader Circle participants will also receive discounted entry fees,
discounted fuel costs and IRL mandated electronics and equipment packages at
no charge for the season. The electronics and equipment package includes the
rev limiter, wire harness, on-light camera mount and cover, and timing and
scoring device and cover. All that equipment is necessary to participants on
the track and as a Leader Circle participant you will get the use of that
equipment at no charge. You will also receive the marketing benefits of Indy
Racing marketing groups. It is a tremendous program, very excited about it.
We set the deadline for notification on Monday, January 28th. And to be
perfectly honest, we thought we would be announcing the 24 participants
today and we have been pleasantly surprised and overwhelmed by the positive
response to the program. We have 35 applicants for the 24 positions. Based
on that the timing of the open test here at the California Speedway and next
week at Phoenix we're going to give a few of the applicants a little more
time to determine and finalize their programs. And I would expect obviously
in the next week or two we'll be making announcements as to the 24
participants in the Leader Circle. But needless to say, we've been a little
bit overwhelmed by the response. It is another sign of the growth of the
Indy Racing League. It is a tremendous opportunity for people. I think the
entrants are realizing that participation in this program is an outstanding
benefit and it is just another way that we're working very hard with our
teams and owners. The Leader Circle will benefit promoters by being able to
establish in the beginning of the year a core group of participants that are
going to show up at every race and support them. They will be able to do
marketing posters and promotional materials and obviously that is a very big
step for promoters and passing the benefits of our partners and
manufacturers on to our teams and helping to control and reduce their costs.
So that is an outstanding program. We will be naming the 24 participants
within the next couple of weeks. The program will carry over. It is
basically a phase one impacting in 2002. The program will continue to grow
in 2003, and as we continue to grow as a league the benefits available to
the Leader Circle participants is virtually limitless. We can include any
number of things down the road with our promoters from tickets to
hospitality, to marketing to credentials, and continue to make it a
tremendous program to be a part of. We're also in the position where we
could be able to increase the number of participants. It is at 24 for the
year 2002 and there is a chance that number will grow in the future as well
as the league continues to grow. 2003 participation in the Leader Circle
program will be determined by the point standings from 2002. The top 20
point from 2002 will be eligible to participate in a program in 2003. And at
least four other teams will be added in 2003 based on the criteria of the
selection of the present year in 2002, the team's ability to demonstrate
financial support and commitment for the entire season. The top 20 are
automatically eligible for a minimum and four will be added at the league
discretion for 2003. Like I say, this is just phase one of a great program
that we expect to grow and expand in the future years. The next great thing
obviously to come on board for the Indy Racing League in 2002, we're very
pleased that we're introducing the Indy Racing Infiniti Pro series. It will
debut in Kansas, as I said, in July. I would like to take a moment and
introduce Roger Bailey, executive director of Infiniti Pro Series. The
Infiniti Pro Series is in very capable hands and a great addition to our
league. Roger has an incredible amount of experience in motor sport and he
will lead and direct the Indy Racing League's Infiniti Pro Series. It is a
much needed step to train drivers mechanics, owners and bridge the gap
between whether it is midget, sprints, silver crowns, go carts, anything.
There is a tremendous ability of a driver who participates in those series
at a younger age to learn how to race. He will do a great job to
participate. In continuing to learn to race with guys, learn to race on
ovals, learn to race on pavement. But there seems to be a step missing or
step we need to fill for a guy first coming out, whether the midget race or
even go-carts that has the ability to get in a car that has aerodynamics to
race. We have developed a 450 horsepower car which will be introduced by
Infiniti, Dallara chassis. The same safety aspects will carry into the
Infiniti Pro Series cars and we'll provide a plan for drivers to learn a
mid-range horsepower car and aerodynamic chassis to get used to the effects
of running in a draft and with wings, a car with underwings and the
transition from a front engine sprint car with 700 horsepower to midlevel
rear engine with aerodynamics' experience. It is a tremendous asset to the
Indy Racing League. All of the races for 2004 will be televised by ESPN
networks, a television package that will be a tremendous asset to the series
as well. Ken touched upon it a little bit, the teams, new drivers, new
manufacturers, coming on board. I think, as he mentioned, in a time when the
economy is what it is for us to be able to add a list of manufacturers and
suppliers joining this league, the likes of Chevrolet, Toyota, I mentioned
Firestone's commitment, Red Bull, Marlboro, we have a tremendous growth in a
league at a time that is difficult and everybody is fighting for sponsors.
We have Coors and Nissan increasing their commitment. Nissan through the
Infiniti Pro Series and Coors becoming the title sponsor for Buddy Lazier.
We have great addition and growth at a time that people are fighting for
sponsorship dollars. We have growth in new teams. Marlboro's addition to the
Indy league is a tremendous asset. We're bringing on board obviously drivers
like the defending Indy 500 winner Helio Castroneves, two time defending
CART champion, Gil de Ferran and a team by which all others are measured.
Marlboro Team Penske is the yardstick of success in any form of motorsports.
They have a tremendous team to bring on board. We have now running Larry
Blair Racing, coming on board with Alex Barron. We have great growth and new
teams coming on board, combining that with the stability of the Indy Racing
League and teams that are going to continue to participate on a high level.
We have Panther Racing, Cheever, Foyt, Kelly, Menard. There is a very strong
core group of participants and stability from that aspect with the drivers
that are associated with those teams. Greg Ray, Sharp, Buddy. We have an
outstanding group of people here and it is a tremendous mix of people
returning to the Indy Racing League and new drivers coming on board. It is a
great atmosphere for opportunity of drivers, the likes of Bill Boat, Sarah
Fisher, Donnie Beechler, Davy Hamilton are great success stories in creating
an atmosphere for drivers to succeed at this level. We've come to a general
recognition from the media and fans that our on track product is second to
none. We put on races that are incredibly entertaining. Rules are announced
and enforced fairly and we're all about value and entertainment. Our track
product is outstanding. I can't underestimate the importance of Chevrolet
joining the series and marketing power they bring on. As I mentioned,
Firestone, we're really excited about the future. We'll have more to
announce in the future obviously with the Leader Circle and other programs.
We introduced several new rules for 2002 to help keep the competition
playing field level. Testing is limited through the number of tires that are
available with our exclusive agreement with Firestone. All entrants are
allowed a set number of tires for race weekend depending on the length of
the race. 200 mile gets seven, 300 mile gets eight, 400 nine, total of 38
sets available throughout the year for racing. We have open tests here at
the California Speedway tomorrow, two days at Phoenix, Friday and Saturday
of this week and two days at Nazareth the first week of April. Those five
days of open tests entrants will have three sets available per day to be
used on those. They will use them or lose them sets. If they don't
participate in the open test they will not have access to those tires. An
entrant would be allowed 30 sets of tires to test with for the year and
those sets are guaranteed only if you are a Leader Circle participant. We
have a great way of controlling costs, there is only X number of miles in a
set of tires, so as an owner you know maximum number of miles you will be
able to run through the course of the year. There is a cost per mile of
operating the cars. You know very closely before the season begins what your
budget is going to consist of and number of miles you can run and number of
sets of tires you can run. As I mentioned, the open tests at Phoenix will
continue Friday and Saturday of this week and Nazareth is, I believe, April
4th and 5th. Our future is bright and getting brighter each day. We have
finalized about 90 percent of our specs for the 2003 chassis. We're
increasing the size load, the nose push-off test. We're making changes to
our cars based on safety. We have a tremendous on-track product and people
would ask why are we making a change and implementing new chassis in 2002.
Well, 2002 is the third year of these chassis. We have update kits available
and it is the second and third year of these kits. Most of the things
contained in the update kits are safety related. 2003 is why we're changing
chassis and going forward again. The primary reason for the change is
safety. Like I said, we'll be making changes to the motors, nose push off,
safety and anti-intrusion materials in the tub. The body, which will be a
minimum width of 60 inches, for instance. Gear box design, all of this to
improve the crushability of the car, the ability of the car to absorb energy
and make the car safer for car drivers in competition. We're going to in
2003 design purpose-built three and a half liter, improving handling
characteristics of the car and less mass on the racetrack as we go forward
as well. We contacted and have been contacted by several new manufacturers
in the chassis area. We look for a potential of new manufacturers joining us
in 2003. Both engine and chassis manufacturers have until April 1 of 2002 to
notify us of their intent to participate in 2003. That is an outstanding
asset for us to be able to look at in beginning of 2002. We got teams
looking for full-time participation in '03 and beyond, and it is simply
because of our equipment package, our rules, our enforcement, our growth and
our stability. I am very proud to be associated with a very great team. Tony
George's vision is becoming a reality. Ken Unger is a great addition. Glad
to have Roger Bailey bring us racing in the new Infiniti Pro Series. I
appreciate what Phil Casey and Les Mactaggart have been able to do with the
technical ability on our staff. Great staff in my view. Tiffany Hemmer,
director of administration, Ron Green, our director of media relations. That
is a testament to Leo Mehl. He put together groups of people who understand
their rolls, their accountability for what they do and I think it is a real
tribute to what he has been able to put together that we move forward with
what we have. I appreciate everybody's support here today and look forward
to everybody sticking around. We have about 24 cars that are going to
participate in the open test tomorrow and looking forward to the 2002
season. Thank you.
MR. KING: Brian Barnhart is vice president of operations. Ken Ungar is vice
president of business affairs and both of them are here to answer questions.
We want to know before we take questions, we're transcribing this press
conference, so it is very important to not simply yell out a question or
start talking until we get a microphone in front of you so the
transcriptionist can get the entire question. Let's start right here. If you
have a question, hold your hand up.
THE MEDIA: Ken, this is for you. The folks that you have had as series'
sponsors have all gone away. What is your progress on the next potential
series' sponsors for full-time naming rights?
UNGAR: Sponsorship is a reality in sport no matter which sport. Auto racing,
as each one in this room knows, is particularly dependent on corporate
America recognizing the value of our sport and joining with us in our
endeavor. We're extremely happy about Chevrolet, Reebok, Purex, Worldcom,
Firestone, a number of companies, blue chip companies, that recognize the
value of auto racing in the Indy Racing League in particular. Reaching a
title sponsor for the series, that is something that is an ongoing search.
We have spoken to several companies rather seriously. Our goal is to find
the right fit, to find a company that believes in our sport, a company that
we can help promote their brand so that it is a mutually beneficial
arrangement. We're not in a particular rush because we want to find the
right fit. So while serious discussions are ongoing, we really don't expect
something to come to fruition before 2003.
THE MEDIA: What is your take, Brian, on the average number of cars we'll see
at each race?
BARNHART: I think we'll -- I would assume we're probably going to be in the
26 or 27 range in the car count most everywhere we run, which is a good
number to run. Obviously we're restricted more than anything else on
available pit space like at Richmond and other shorter tracks. We'll not
fudge in the interest of safety. And that dictates the number of cars that
we can start and, believe me, as I think Gil will find out when he gets
there, and Buzz can probably attest, 26 cars at Richmond will be probably
very busy.
THE MEDIA: With new engine specs and deadlines have you approached other
manufacturers? Can we expect more than three?
BARNHART: At this point in time we have had some discussion, but nothing to
in-depth. Obviously, it is getting late in the year for that. Obviously, in
the first of February I think any manufacturer who wants to join and compete
on this particular level will have had to previously been working on a
program, and at this point in time we don't have any indications that can
happen. But, like I say, if they are doing something on their own and notify
us by April we could have more.
THE MEDIA: These new chassis regulations, are these cars dedicated to oval
race cars or can they be adaptable to road or street circuits?
BARNHART: All we do is oval track race. We make rules based on oval track
racing so they are designed to be as safe as possible for oval track race
and that is what the specs are for.
THE MEDIA: No room to maneuver?
BARNHART: We don't have any desire to make them -- our rules are we are an
American-based oval track series. All we do is oval track race. Our rules
are built for our cars to oval track race.
THE MEDIA: Have you had any discussions with engine manufacturers, with
chassis manufacturers for next year?
BARNHART: We have had more serious discussions with chassis people than
engine makers. At this point in time they are getting ready to make an
announcement, but we can look at probably one or two chassis manufacturers
joining in 2003.
THE MEDIA: Can they join in 2003 season?
BARNHART: Yes, they have to notify by April 1 as well.
THE MEDIA: Brian, you have got chassis specs finalized for looks like '03 to
'05. Do you feel pretty good about your ability to kind of close some of the
loopholes that maybe were there initially? Do you feel like you have done
enough to prevent costs from getting out of hand?
BARNHART: I think we have, Curt. I mean, you are balancing cost controls,
your ability to enforce rules. And if you look at our competition on the
racetrack, both Dallara and G Force have great competition on the track. We
have both cars competitive from a speed aspect of it. We are controlling the
costs to the competitors in each aspect of it we can. We have got to weigh
the ability to have some technological advancement to keep manufacturers
interested in what you are doing, but also by controlling the cost to the
competitors involved. And I think we have been proactive in that approach,
and as we move to the '03 through the '05 formula I think we're going to
continue our philosophy of equal playing field on-track and controlling cost
to the competitors.
THE MEDIA: Brian, what about scheduling? Is there any thought about
extending the schedule maybe to other tracks across country?
BARNHART: I think at this point in time I think we're probably very happy
with the number that we have. Obviously expanding to 15 races this year as
Ken mentioned, the California Speedway here in Southern California market,
second largest market in the country, going to the Michigan racetrack and
expanding our Midwest routes and going to Nazareth as well. We had six
successful debuts in 2001, if people remember that. We went to Homestead,
Richmond, Kansas, Chicago, St Louis and Nashville for the first time in 2001
and had very successful debuts there adding the three tracks that I
previously mentioned there. I think we're getting a number we're very
comfortable with. I would think if there is any growth in the future it will
be very moderate growth. 15 to 17 is a good number for us to stay at and
focus on. We need to work very hard with our Promoters and if we can fill
the grandstands 15 or 16 or 17 times a year we're going to be very
successful.
MR. KING: Any other questions?
THE MEDIA: I am the manufacturer of gearboxes, American, local. And I would
like to know if there will be an opportunity for us to compete with -- was
it a monopoly? I think XTRAC is here right now and that we cannot be because
of cost, so where we have an opportunity to be able to offer our products?
BARNHART: We have chosen a contract with XTRAC who has been our gearbox
supplier for 2001 and 2002, and we have renewed an agreement with them for
2003, 2004 and 2005 as supplier for gear boxes for the new generation of
cars.
THE MEDIA: Thank you.
MR. KING: Other questions? Anyone else?
BARNHART: I will add on the gear box front, XTRAC is a very good partner for
us and will introduce a gearbox for 2003, 2004 and 2005 and improve the
drivetrain.
KING: Further questions? Ken, Brian, do you have a closing statement or
anything you would like to say before we say good by?
UNGAR: Sure. It is 72 degrees outside, it is a gorgeous sunny day. Hoping
for another great Indy Racing League season, but I want to thank everyone in
this room for everything they do for Indy Racing as a sport. We're going to
have fun this year. It is going to be our most successful year yet, and I
want to thank you for all of your support.
BARNHART: I can echo Ken's sentiment as well. Appreciate your support here
this weekend and looking forward to seeing you out there in the 2002 season.
Thank you.
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