INTERNATIONAL MOTOR SPORTS GROUP SELLS SPORTS CAR GOVERNING BODY 5 December, 1997 TAMPA, Fla., Dec. 5 -- International Motor Sports Group, Inc. (IMSG), a privately held full-service motorsports and entertainment company, announced today that...
INTERNATIONAL MOTOR SPORTS GROUP SELLS SPORTS CAR GOVERNING BODY
5 December, 1997
TAMPA, Fla., Dec. 5 -- International Motor Sports Group, Inc. (IMSG), a privately held full-service motorsports and entertainment company, announced today that it had divested itself of all shares it previously held of Professional Sports Car Racing, Inc. (SPORTS CAR), the premier governing body for professional road racing in the United States.
IMSG sold all of its equity position in SPORTS CAR to a newly formed holding company, PST Holdings, Inc., owned in part by executive management of SPORTS CAR. Sale price was not disclosed. Raymond Smith, formerly chief financial officer of SPORTS CAR, in interim president of PSR Holdings.
It was also announced that Andrew Evans, chairman of IMSG, had resigned as chairman of SPORTS CAR and that he would not participate in the ownership or management of the new company. Additionally, IMSG has provided substantial capital assistance to PSR Holdings to smooth the transition of ownership and management o SPORTS CAR.
"While I am personally disappointed to no longer be involved with the ownership or operation of SPORTS CAR," Evans said, "this sale was necessary to allow for continued growth of both SPORTS CAR and IMSG. SPORTS CAR now has the opportunity to build on the successes of 1997 and pursue the vision of future growth for international sports car racing in North America. The ownership and management of PSR Holding shares with me a belief that SPORTS CAR has tremendous potential to capture the largest increase in TV viewers, spectators and corporate participation in motorsports over the next decade. The funding IMSG is providing should help move SPORTS CAR closer to achieving that goal.
"The sale also allows IMSG to focus its attention and efforts on its primary assets: race tracks, race teams, brands -- Jimmy Kite, Cristen Powell and Brett Bodine -- and related businesses. IMSG will now have the opportunity to operate in a positive cash flow situation in 1998."
SPORTS CAR management indicated that plans for the 198 season would now be forthcoming.
"SPORTS CAR made some significant advances in 1997," Smith said, "and we look to build on those accomplishments. We will focus on creating a stable environment. By maintaining a core of dedicated expert executives, we believe SPORTS CAR has all the ingredients to succeed."
Headquartered in Tampa, SPORTS CAR sanctions five major professional racing championships: The Exxon World Sports Car Championship, The Exxon Supreme GT Series presented by Virgin Interactive, The SPEEDVISION Cup for Stock Sports Cars, the Black Magic Pro Series and the Ferrari Challenge.
IMSG companies currently include Team Scandia, which fields teams in the Indy Racing League, NHRA top fuel drag racing ad NASCAR Winston Cup stock car racing; two race tracks - Sebring International Raceway in Florida and Mosport Entertainment Park in Ontario, Canada; Royal Purple Motor Oil; and Klein Engines and Competition Components, Inc. (OTCBB: RACG), a leading manufacturer of high performance engines.