Press Conference Transcript of Meeting with CART Ceo and President Chris Pook. Part 2 of 2 Q: Mr. Pook, about this year, you have been working tremendously to bring into the series lots of drivers, new drivers, drivers coming from other ...
Press Conference Transcript of Meeting with CART Ceo and President Chris Pook.
Part 2 of 2
Q: Mr. Pook, about this year, you have been working tremendously to bring into the series lots of drivers, new drivers, drivers coming from other series. In your perspective, do you think we will be needing more drivers to come into the series in order to have successful races, or will you have less races to have what we already have with drivers? This year, as it started, you really worked very hard to bring in a lot of drivers. I think we have 19 drivers. The interest of some other drivers to arrive into the series, just comment about that. Do you think you could bring in more drivers to the series?
Pook: Well, there's lots of drivers that want to come into the series. It's a question of where the seats are for them. I think the important thing, though, what we have to recognize is that we are being increasingly accepted as a good place for young drivers to come and drive and really show their stuff. That's what we really want to be. I have no difficulty with having new drivers every single year if we raise the level of the driving talent and the intensity of the competition. I mean, that's what it's all about. And I think what we've got this year is a very good situation.
I mean, I think that Sebastien was very, very good in St. Petersburg. He's a very good racing car driver. But he pushed Paul and Michel and Patrick, as well, to the limit. Today you see now that Servia is running pretty good. I don't know how good he was this morning. I think what's happening is some of our existing drivers have been told, "You better pick up the pace because these youngsters are coming and your job is in jeopardy." If Newman/Haas can take Bourdais of Formula 3000, I don't know where he was in the session this morning, but the fact that these youngsters can come in and go quick right away clearly sends a message to some of the guys that have been in the series a couple of years that they better step up and push on the pedal a bit harder to go quicker. At the end of the day, that's really good for us as a series. It starts to gather huge energy with these young fellows coming in and doing what they're doing. So it's good.
It's not just us. Look at NASCAR, the fact of the youngsters in NASCAR. The Kurt Buschs of this world, Jimmie Johnsons of this world, I mean, Ryan Newman, these are youngsters that just arrived, and they're putting the hammer on the old guys, letting them know, in know uncertain terms, they have no respect for folks that have been in the series for a long time. They're there to drive a race car and they're there to win.
That's what's happening in our series. They have respect for them obviously on the racetrack. But because they've been winning races for the last eight or nine years, that doesn't mean anything. It's a new ballgame out there. When the green flag drops, you get on with it and you race hard. That's what these youngsters are doing. From our perspective, it's very, very healthy indeed. It's starting to send that message around the world about the health and the intensity of our competition. That's what we want.
Q: There have been some reports that you might be stepping down at the end of the year. As I understand it, your term runs through next year. Can you say unequivocally that you'll be staying through next year? How will CART do without you?
Pook: Well, first of all, no one's irreplaceable, is the first thing I need to say to you. The second thing is that my contract does go through December the 18th of 2004, and I have absolutely every single intention of staying until December 18th, 2004, unless you know something I don't know. I want to complete the mission. Those of you who have known me over the years know that I'm not a guy that gives up. I take on a project, I finish the project. That's just the way I'm built. I give it 110 percent.
We're putting in place an excellent management team. David Claire, our chief operating officer, is doing very, very well. He's a very smart guy, and he's obviously there. He's running the day-to-day of the company now. He hit the road running January the 1st. I think any of the management team will tell you, you know, he didn't need anybody to bring him up to speed. He was there when he came through the front door. He and I think alike. He worked for Mr. Ecclestone for nine years. That's probably about as good a training as you can get. I feel very, very comfortable indeed. If the board of directors or I decide that after December the 18th, 2004, I don't want to keep up this same level of intensity, there's a man there that can run the company extremely efficiently.
Q: Concerning Forsythe, what happens when the period of truce or whatever you call it expires at the end of the three years? He's supposed to vote now like the board orders or whatever. What happens then? 10 years ago CART was like challenging Formula 1 for the top spot in racing all over the world. You had Nigel Mansell, the fastest cars. Now it seems to me that the message I'm hearing, "We're like a feeder series for Formula 1." Do you think in the future, CART will go to challenge Formula 1 for the top spot to be like the best series in the world like what the message was 10 years ago? They were saying that.
Pook: Well, I think you said it rightly. The message that you were hearing that was being put out that they were going to challenge Formula 1 or thought they could challenge Formula 1, the thinking in somebody's mind, I don't know quite where the mind was when that thinking was taking place, because Formula 1 is Formula 1. It's here, it's at the top. With all due respect for CART then and CART now, we are not Formula 1. We're completely different. I mean, the only thing that's common is that we're an open-wheel series. That's the only common thing. Our cars are different, our engines are different, our philosophy is different, our approach is different, the way we run our business is different.
Yes, we do go to Europe for a couple of races. Yes, we go to the Pacific Basin for a couple races. It is a whole different strategy, a whole different marketing philosophy. Personally I think it would be absolutely silly to try to think we could compete with Formula 1. We have our form of racing. It is our niche that we are in. This is a very good example, this weekend, of what we are about. This is a classic CART event. What we did at St. Petersburg was a classic CART event. What we do at Long Beach will be a classic CART event. When we go to Laguna Seca, it will be a classic CART event.
If you go in a Formula 1 paddock in June in Montreal, it will be completely different. You'll think you're in two different worlds, and you will be in two different worlds. I disagree when they put out that they're going to challenge Formula 1 and all this stuff. That must have been in someone's mind. We absolutely don't want to challenge Formula 1. We want to work with Formula 1. We want to develop our own drivers. Having said that, however, if we have the talent in our driver pool that we believe can go on up to win a world championship, then we should help that driver go win a world championship. That is the correct thing to do in the sport.
It's not a question of being a feeder series. We're not a feeder series. But we're a series that develops skills in drivers that clearly happen to help them in their career when they go into Formula 1. Montoya has been very articulate about that. He said, "Absolutely my experience in CART was very, very important to me in where I am today." I think if you go to da Matta and ask him the same, he will tell you that coming here was very, very important. Remember, da Matta was in Formula 3000, then got passed over. He came to CART and he rehoned his skills, learned the disciplines of our type of racing, which I think has now made him a better drier and allowed him to go back to Formula 1. The first part of the question was about Gerry Forsythe.
Q: He has to vote for three years according to what the board says. What happens at the end of that truce period?
Pook: He doesn't have to vote what the board says. He doesn't. He can vote a certain percentage of his shares. He's allowed to do that. There's no restriction on how he votes, none whatsoever.
Saal: I can get those press releases, redistribute them to you. It explains the amendments. There were two separate amendments.
Q: It's fairly obviously at this point the on-track part of CART is going in the right direction, good competition, good teams. How about the business part of the company? What's the business health of the company?
Pook: It's the chicken or the egg, which comes first? At the end of the day, the product is what goes out on the racetrack. Having gotten the product out on the racetrack, we're able to go out and sell the product. The business side is the next side we're fixing. We're well on our way to do that. As you watch us go through the season, you'll find there will be a whole bunch of very interesting announcements that will emerge. You'll start to see all those bits and pieces that we all spent a lot of time talking about last year that were going away, doom and gloom, they'll start to be replaced and you'll start to see substantial building blocks in place in that area. As you know, I've been saying all along, you have to put building blocks in place, one step at a time, build on foundations. That's what we've been doing. Now we're on the second leg. The timing of your question is very good. I appreciate it.
Q: Is it a positive, negative or just a neutral thing the fact that CART is now going to places where you will be your own promoter?
Pook: Well, you have to understand that this world is changing completely. The economy of the late '90s was completely different to the economy of today. You have to really create value now. You have to give a return on investment. Most people are involved in sport, companies, because they do want to be able to sell, promote, market their products, and they do want a return on their investment. Where you see us going to areas where we're promoting races or taking over races, it's because we think that market is a very valuable market. We're hearing that from the corporate world, about the importance of that market to them.
Our job is really to take our racing to those markets, then those sponsors can come into those markets and they can work that market and get a major return on their investment. This is a good example here. I don't know what the population of the greater Monterrey area is, but it's probably three or four million people. I'm hearing six million people. We're only going to do 200,000 to 250,000 people here this weekend. That's what we'll do. The important thing about this event, because it's such a huge event in the heart of this market, the whole market knows what's going on here in Monterrey, the whole market knows about it.
That's very positive for Tecate, it's very positive for Telmex, for Coca-Cola, all the sponsors involved, even the car sponsors, because the whole market, it may not be here physically in attendance, but it's looking at the newspaper, watching the television set, and it's aware of all the products. That's what this is about. It's going to these key markets and being the facilitator of companies to do business. That's how this whole thing has changed. There wasn't that emphasis before in CART. CART was a sanctioning body, a sanctioning body, a sanctioning body. CART is now a marketing company, a public relations company, a promoting company, a business facilitating company, and it happens to be a sanctions body as well.
Q: That means basically CART's financial stream, the money coming in, used to be totally, since it became a public company, from sanctioning fees. That is not the case anymore?
Pook: Oh, it's very clearly an important piece of the puzzle, absolutely. It's a combination. But in today's economy, you don't put all your eggs in one basket. You spread your risks in many areas, if you're a sensible business person. I'm trying to be a sensible business person and trying to run this company in a responsible manner.
Saal: As Chris mentioned, it's a key part of the financial model. What's gone now is the exploitation that went along with those sanctioning fees in the past. There's more partnerships that have been developed under Chris' leadership. He comes from that background, promoting. He understands the balance sheets of promoting. It's been met with great returns. From the moment you get off the plane in Monterrey, you see signs for the Tecate Telmex Grand Prix. Thank you for your time. We appreciate your attendance.