[rsheidler]

Re: KPaul the prophet

It seems that the problems at Octagon are largely unrelated to WSB -- that general mismanagement is largely to blame (misreported financial results are usually a sign of either incompetent or crooked management -- al la Enron).

For an earlier report (last October) on the financial and management problems at Octagon, CLICK HERE.

I have been unable to determine quickly just how large a stake Octagon holds in SBK International, but if they were to go under at the same time that the fan base for WSB erodes, WSB may be forced to regroup.

This could be just what it takes to shake up the WSB organizers. The changes made to date are, in the minds of many fans, too little and too late.

I would hate to see it fold, at least without someone else to step into the breach with a better alternative.

My most realistic hope is that someone with financial and management resources will buy up Octagon (probably can get it cheap) and use the opportunity to make the necessary changes. (Somebody in the France family, perhaps). There have been persistant recent rumors that F1 impressario Bernie Ecclestone is interested in buying Octagon, and possible the other shares of SBK International.

 

[rsheidler]

The Thought Plickens!

See this recent article in AMASuperbike which speculates that Ecclestone will be the buyer, and points out that the head of Octagon is the brother of the head of SBK International.

My money says Bernie snatches up the whole thing.

 

[rsheidler]

From Interpublic Group Earnings Release

The following excerpts are taken from the 4th quarter 2002 earnings release for Interpublic Group, issued this week:

**********

Restatement

In the fourth quarter, the company identified $135.8 million of pre-tax charges, primarily non-cash, relating to asset impairments and other operating expenses at Octagon Motor Sports. Because the events that triggered the impairment occurred in the third quarter, charges of $132.1 million were appropriately recorded by restating the third quarter of 2002. The remaining $3.7 million of charges relate to prior periods from 2001 and 2002.

As part of the company's broad-based review of its balance sheet, $29.9 million of pre-tax charges not related to Octagon Motor Sports were identified and recorded in prior periods in the years 1997-2002, principally reflecting adjustments to intangible asset amortization, purchase accounting and other items. While not material to any individual prior period, these charges would have been material in the aggregate if recognized in the fourth quarter of 2002 due to abnormally low earnings in the quarter.

***********

Octagon Motor Sports

In the fourth quarter, Octagon management completed an in-depth cash flow analysis of its motor sports assets and concluded that the book value of Octagon Motor Sports significantly exceeded its estimated fair market value. Accordingly, the company identified $135.8 million of primarily non-cash charges to reflect the impaired value of the assets and other adjustments. Because the events that triggered the impairment occurred in the third quarter, charges of $132.1 million were appropriately recorded by restating the third quarter of 2002. As a result, the company expects to file restated reports with the Securities and Exchange Commission for the appropriate periods.

Interpublic's new management has retained independent advisors to evaluate exit strategies relative to its motor sports assets. The remaining book value of long-lived assets relating to Octagon Motor Sports is approximately $70 million at December 31, 2002. This amount, as well as other substantial contractual obligations, may not be fully recoverable depending on the exit strategy the company ultimately chooses to pursue.

 

[rsheidler]

You Gotta Be $hitn Me!

AMA for guys who couldn't make it in the Worlds? WTF? Name another series that has produced as many GP and WSB contenders and champions over the years.

 

[rsheidler]

Re: World Super Sport cold save the Ducati Cup (WSB) ??

The SuperStock is also great racing -- in WSB, the superstocks run up to 1000cc, unlike AMA where it is the GSXR 750 Cup.

Nearly stock (shocks, pipes etc) Ducati, R1, RC51, 954RR, GSXR1000 etc head to head, with no restrictor plates!