When Sadam Hussein was being pulled out of his hole, he said "I am Sadam Hussein, President of Iraq and I want to negotiate..." With every day that passes, Kevin Kalkhoven sounds more and more like Sadam Hussein and Steve Johnson like Baghdad Bob: they are either absolutely clueless about their circumstances or they both have enormous amounts of chutzpah. I think it is the latter.

This RM item below on SpeedTV belongs in this very long thread. The question now really is: what happens next?

Champ Car Heading for Bankruptcy?
Written by: Robin Miller
02/12/2008 - 07:18 AM
Indianapolis, Ind.

George remains "optimistic" a deal can be struck for 2008.

Tony George was still optimistic about a plan to unify open wheel racing for 2008 following his trip to Japan to try and reschedule the race at Motegi to accommodate Long Beach.

But, by the time George returns to Indianapolis, there might only be one series standing anyway.

The word on the street late Monday was that Champ Car plans to file bankruptcy within the next 24-48 hours which, effectively, will end the 12-year war in open wheel.

Steve Johnson, president of Champ Car, was asked about the bankruptcy rumor on Monday evening and responded in an email: “I have not been informed and we have been hearing the bankruptcy rumor for 18 months.”

However, at least one definitive sign pointed to the end of a series that began as CART in 1979 and was re-titled Champ Car after Kevin Kalkhoven and Gerry Forsythe took it over in bankruptcy court in 2004.

Pat Caporali, hired a few weeks ago as CC’s new director of public relations, reported for her first day of work on Monday. But she was informed it might be a good idea to try and get her old position back with Chip Ganassi because there would be no work for her.

Other employees were reportedly told to cease working on 2008 projects and some began cleaning out their desks.

It’s not known whether a bankruptcy proceeding was part of the plan to have the Indy Racing League assume control of open wheel. George has proposed free cars, engines and $1.2 million to any and all CC teams able to fund themselves for a full season.

He also agreed to add Long Beach, Edmonton and Australia to the ‘08 schedule and possibly one more venue so it might be necessary for Champ Car to bankrupt in order for those tracks to strike new deals with George.

Kalkhoven and Forsythe promote the race at Long Beach, in addition to Toronto and Portland while Mike Lanigan, who co-owns cars with Paul Newman and Carl Haas, is the promoter at Houston and Cleveland. Forsythe also co-owns Mexico City.

But the repercussions could come from Laguna Seca, Elkhart Lake, St. Jovite, Canada, Belgium, Spain and The Netherlands. None of those tracks would have races in ‘08 in a unified series.

Besides those tracks and people employed at Champ Car, others figured to lose out in a bankruptcy would be outside contractors. Carl Haas has some $2 million worth of parts for the Panoz chassis, which will be made obsolete because the IRL uses Dallaras.

One contractor, Dan D. Jones & Associates, has already filed a law suit against Champ Car for non payment. After the new Panoz cars developed massive fuel leaks and re-fueling problems during the first three races of 2007, Jones was hired to overhaul and save the fuel systems—which he did.

But, according to the suit filed in Indianapolis superior court last week, Jones has never been paid one penny of the $300,000 he’s owed. He’s hired Jim Voyles to try and recoup the money.

As for George’s trip to the Far East, he and Honda’s Robert Clarke met with Motegi management to try and figure out an alternative date or some kind of plan to allow Long Beach to run April 18-20 (also Motegi’s date).

Kalkhoven has been adamant there will be no deal without Long Beach on its original date.

“I am optimistic but there are plenty of complications that could knock it off-line,” said George via email from Japan. “There are plenty of things to consider, Motegi and Long Beach are just part of it.

“Everyone expresses a desire to push to make it happen and that’s where the effort is being applied at the moment.”