George gets unification for cheap

Tony George will pay less to acquire the Champ Car World Series than he offered in U.S. Bankruptcy Court in 2004, but his commitment to the unification of open-wheel racing still likely will cost him about $30 million.

The actual amount of last week’s offer was not revealed at today's news conference at Homestead-Miami Speedway, which featured George, founder of the Indy Racing League, and Champ Car co-owner Kevin Kalkhoven. But IRL spokesman Fred Nation said it was less than the $13.5 million George offered in a failed bid four years ago. It was awarded to a group led by Kalkhoven and Gerald Forsythe for $3.2 million, because they were committed to keeping the series intact.

For his money, George will get all of Champ Car’s assets, tangible and otherwise, including its traveling medical center, trademarks and all historical documents. But none of that amounts to much in direct money.

George, meanwhile, agreed to supply all Champ Car teams that join the IRL with two cars — one new, one used, with an average value of $400,000 each — and an engine lease that costs just under $1 million. League officials are expecting between nine and to 12 cars, which would mean adding $20 million to George’s commitment.

It also bears noting that George and the Champ Car owners currently only have an agreement in principle to unify; they don’t yet have an actual contract. Nation said that is one of the many things still to be finalized since the two sides announced their landmark agreement last week.

“There just has not been time to do the final contract," Nation said.

That document would become public if Champ Car filed bankruptcy, which isn’t a given, a series spokesman said today.

“Champ Car Inc. is still a work in progress," said David Higdon, the executive vice president of the Indianapolis-based series. “(Bankruptcy) might not be necessary. (The decision) still has to get through all the lawyers." Indy Star