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Competition This Week.(car racing)(Brief Article)

AutoWeek

| October 15, 2001 | COPYRIGHT 2001 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Starting trouble

* As fallout from CART's new engine formula settled (page 43), another problem was brewing that is potentially as divisive: This one involves race teams-CART's heart, soul and core product-even more directly.

The issue is ``start money,'' or some compensation for simply putting a car on the grid. Back in the days of PPG sponsorship, anyone who made

the CART field got a cash payment to help defray costs. But when CART went public in 1998, IPO money directed to team owners in the form of stock, about $4.5 million a car, was supposed to take care of the teams for an undetermined period of time. Start money was abolished, and the only payment for teams was the $500,000 per-race purse.

``That's pathetic,'' said team owner Morris Nunn. ``Of that purse the teams give away as bonuses to drivers and crews probably 55 percent. Now imagine that rest spread among 26 entrants. It's a pittance.''

Throughout a season, that leaves $4 million to $5 million for the teams (not enough to run a single car for half a season) and it's spread among all 26 entrants, but only to cars that finish in the points. Naturally, teams like Mo Nunn, Sigma and Fernandez Racing, which were formed after the IPO and gained nothing from it, are the primary source of discontent.

``The money from promoters' fees is going into the public company, and the teams have no income other than sponsorship,'' said Nunn. ``That puts a huge burden on sponsorships. If costs go up during the year, what do we do? My deal with sponsors is set through next season, and so is my budget. What if prices go up or we have to replace more cars than we reasonably anticipated? I feel the owners should separate from the company. CART should run the public company and the owners should negotiate for appearance fees.''

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