CART series loses sponsors, revenue in promotion effort

The struggling CART series would consider selling the company and has hired an investment banker to consider its options.

Indianapolis-based Championship Auto Racing Teams, Inc, a publicly traded racing league, hired Wall Street investment firm Bear Stearns on Monday to explore alternatives as the league adjusts to the loss of sponsors and other revenue.

"We nevertheless want to help our shareholders and the larger investment community in measuring CART's progress as the year unfolds and in understanding management's own expectations for the year," said Chris Pook, CART's president and chief executive officer.

One potential buyer is Formula One boss Bernie Ecclestone. BAR-Honda shareholder Craig Pollock, who also fields teams in CART, acknowledged Sunday he also is interested in buying an interest in the struggling Champ Car Series.

Pollock and Ecclestone met Friday with Pook, and there's been speculation that Ecclestone could purchase the series and put Pollock in charge.

"I don't think it's inevitable," said Tom Carter, CART's chief financial officer.

CART has been unable to generate much revenue from television. CART bought its own airtime, paying for its races to appear on CBS and Speed Channel. It bears all production costs, and TV revenue comes from advertising it sells for domestic television productions and international rights fees.

Sanctioning fees also have taken a hit, dropping from US$36.6 million for 17 races in 2002 to about US$26 million for 13 races this year.

The open-wheel series lost nearly US$3.1 million in its two self-promoted races. Carter blamed a depressed economy.

"We just need the economy and corporations to get back to spending at levels they were previously," he said.