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Luczo Dragon, de Ferran merger could create IndyCar powerhouse

Luczo Dragon/De Ferran Merger Teleconference

Seven years ago, the names de Ferran and Penske combined to deliver victory in the Indianapolis 500.

Today, the two names are linked again - only this time, Gil de Ferran will be working with Jay Penske, the son of his 2003 Indy-winning team owner Roger.

Penske, Steve Luczo, and de Ferran will all be co-owners at Luczo Dragon Racing, the team announced today, with de Ferran stepping up to assume the additional role of team president. But although for the moment the team remains a one-car operation centered around driver Raphael Matos, the new Luczo Dragon partners are looking to expand in the future.

Star-divide

Luczo Dragon Racing came into being in 2006 as a partnership between Jay Penske and Seagate CEO Steve Luczo. The two shared a passion both for sports and for creative arts - in fact, the "Dragon" in Luczo Dragon comes from Penske's antiquarian bookshop in Los Angeles.

Luczo Dragon entered the Indianapolis 500 in 2007 with Ryan Briscoe as their driver, and the team turned heads by earning a surprising fifth-place finish. The next season, the team ran a limited schedule with Tomas Scheckter, but without the equipment and technology assist from Penske Racing the team's results were significantly worse - the team failed to finish all but one race.

The adversity only seemed to strengthen the resolve of Penske and Luczo, and Luczo Dragon Racing campaigned the full 2009 season with new driver Raphael Matos. Matos was a multiple champion in various categories including Star Mazda, the Atlantic series, and Firestone Indy Lights, and he showed his prowess by registering a whopping eight top-ten finishes on his way to the Apex IndyCar Rookie of the Year award.

In the meantime, de Ferran had left a job with Honda's Formula 1 team and, with Honda's backing, had started his own operation in the American Le Mans series. For two years, while Luczo Dragon gradually was ingratiating itself into the IndyCar community, de Ferran and his works Honda team took ALMS by storm, developing Acura's factory LMP program into a dominant, if not championship-winning effort. De Ferran himself came out of his four-year self-imposed retirement as a driver to help his team to success.

Midway through 2009, however, de Ferran announced that he would retire again from the cockpit to focus on developing his own IZOD IndyCar Series team. Those plans fell through, unfortunately, with de Ferran unable to find sufficient financial backing to support his enterprise.

With de Ferran needing financial backing and Luczo Dragon needing a hand with the technical side of building an IndyCar team, the pairing of "The Professor" with his old friend Jay Penske seemed to be the most natural fit in the world.

"Gil and I have been discussing working together for many years," says Penske. "I’d say more active discussions about working together really started in the last year and have been ramping up ever since. Over the last four months Steve, Gil and I came to the realization that in order to put together an effort that could really face the challenges of the current establishment and have a better chance to deliver the successful results we all want we would be best served combining our resources. The more we talked about it the more it made sense."

De Ferran brings a wealth of technical expertise and a driver's perspective to the operation, while Penske and Luczo are natural marketers and have plenty of financial stability. Also, de Ferran makes a natural driver coach for his countryman Matos; the combination of de Ferran's analytical style should mesh well with Matos' formidable raw skills.

The gap between Luczo Dragon and their opponents still seems to be a daunting obstacle, but de Ferran, Penske and Luczo all come from tech backgrounds and they plan to use their appreciation for innovation and engineering to their advantage. According to Steve Luczo, "We have a clear view that technology and science will give us the competitive edge we need to be successful on track."

"[Our competitors] have been dominating the series the last several years and have amassed a huge amount of data with the current IndyCar equipment," admits de Ferran. "In addition, the current testing rules make it difficult for a young team and young driver to make up ground. Despite those challenges, we will do everything possible to make up that deficit. We have plans to invest heavily in simulation technology and will try to build out our engineering capabilities beyond our main rivals."

The three partners realize that part of this heavy investment will require them to expand the team to two cars. "We hope to have those details ironed out very soon," de Ferran says. Some of those details might include a return to Le Mans prototype racing and other series that are in keeping with Luczo Dragon's "strong focus in the science and technology of motorsports."

Certainly, the future for Luczo Dragon Racing is much brighter with the addition of Gil de Ferran; the strengthening and growth of one of their most promising franchises means that the future of the IZOD IndyCar Series just got a little brighter as well.

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So I guess now you think team mergers is a good idea.

by JagtechOhio on Feb 16, 2010 6:02 PM EST reply actions  

This merger was a terrific idea.

It’s a terrific idea because Steve Luczo and Jay Penske are racing enthusiasts, but not experts. Having Gil de Ferran around bolsters the technical side of their team significantly; Gil also brings a wealth of practical team management experience to boot.

He’ll also be a great steadying influence on Rafa Matos, who is very skilled but still very inexperienced.

You are validating my inherent mistrust of strangers.
Pop Off Valve - A greasy hot tenderloin of IndyCar goodness!

by Tony Johns on Feb 16, 2010 6:20 PM EST up reply actions  

The merger scenario increases the participation of underfunded prospective owners, as was the case today. It also is a mechanism to solidify existing teams on tenuous ground.

That’s why I proposed an owners’ meeting the day Vision Racing closed, so that such cooperative efforts could be encougraged as a way to stop the bleeding. Apparently the value of the concept just dawned on you.

by JagtechOhio on Feb 16, 2010 6:28 PM EST reply actions  

There's a difference.

Luczo Dragon and de Ferran Motorsports are two companies that voluntarily decided to merge their operations.

Your proposal appeared – to me at least – to be a situation where the league would sit down and mandate mergers between teams, as well as “pooling” sponsorship money between teams to fund other teams.

If that is indeed what you were proposing, I am against it because I do not believe it is the series’ responsibility to dictate to teams who they should work with or to manipulate their teams’ sponsorship monies. Moreover, I sincerely doubt that the contracts teams make with their sponsors would include any verbiage that would allow said monies to be “pooled” as a league resource.

Now, if you did not mean to convey that concept as your proposal – if you meant something else – then I apologize for misinterpreting you. It could be that you were simply talking about voluntary technology sharing between teams, which has very legitimate benefits for smaller teams and has proven to be effective in many other racing series.

But if that was not the nub of your gist, so to speak, then I continue to disagree with you that this would be a good idea for the sport. Like it or not, racing teams are independent businesses and have to sink or swim on their own merits. Much as I despise seeing teams like Vision Racing searching for sponsorship and unable to take to the track, that is their battle to fight – the league might offer a financial assistance package of a sort, but it simply can’t force mergers or sponsorship pooling from other teams.

You are validating my inherent mistrust of strangers.
Pop Off Valve - A greasy hot tenderloin of IndyCar goodness!

by Tony Johns on Feb 16, 2010 6:36 PM EST up reply actions  

Every once in a while, when I have to write something to beat a deadline, I retain a phrase which might not pass the test of my own thorough editorial revue.

You read my previous statement on Jan. 28, recognized the word “collectivise”, and immediately branded my initiative as foolish. Even after I wrote a subsequent clarification that mine was nothing more than a proposed conduit for partnerships like the one that was announced today, your inherent mistrust remains.

So when I postulate about bringing Eric Bachelart and Dale Coyne and Tony George to a table together, and asking them to see if they can strike a deal to get two cars on the grid by combining their resources, I fail to see how that is a dictatorial move. It is a smart move to create partnerships which avoids the prospect of having ZERO of those six possible entries on the grid.

As for dictatorial moves, that seems to be more the genre of the Delta Wing.

by JagtechOhio on Feb 16, 2010 7:24 PM EST reply actions  

Okay, let's address this once and for all.

This is your original post at TrackForum:

In light of today’s developments, here is my recommendation to the Izod IndyCar Series for an immediate response.

The meeting of every team principle and potential team owner, from the group assembled last week in Indianapolis, should be reconvened.

Every owner who has signed an associate sponsor, but lacks full funding for participation in the Series, must instead form a partnership to pool their resources.

Investments guaranteed toward the efforts of principles such as De Ferran, Bachelart, Rahal, and others must be devoted to the resumption of operations at Vision Racing.

Vision racing will be operated as a two car team for Ed Carpenter and Graham Rahal.

If Dale Coyne Racing is unable to fully fund the participation of the Boy Scouts of America car, that endorsement should be immediately transferred to Vision Racing.

Fielding the Boy Scouts car for full 2010 participation is essential. Fielding Graham Rahal, one of Izod’s new “Stars”, is essential. Ed Carpenter must share his rightful position as the core of Vision Racing, and contribute his presence to the face of IndyCar racing that we show the world.

There is blindness in allowing the scattered resources of potential owners to be left unrealized. There must be a concerted effort to restore Vision Racing, in the manner I have described…and present it for all the world to see.

This is my response:

I think this is absolutely unnecessary.

I’m gutted for the folks at Vision, but the idea of turning the team into a welfare situation has me scratching my head.

Where, indeed, was the outcry for welfare when Kelley Racing was struggling to find sponsorship? Eventually, they sold out to Tony George and TG used the assets to establish Vision.

This is simply business – the more we accept that fact and the less we treat it like the apocalypse, the better off we’ll all be.

I’d much rather the effort be expended to make IndyCar racing more innovative and less rules-restrictive than to go all-out to save one race team – much as I like the people employed by it.

NOWHERE did I call your initiative “foolish.” As for my “inherent mistrust,” I don’t even know what that means. Trust has nothing to do with this – you posted, I responded, and there simply was no intention on my part to make you look foolish.

If Conquest, Coyne and Vision get together and pool resources, terrific – but it’s not, as you said in your original post, something they “must” do. It falls to the principals themselves to take the initiative to do it on their own. A voluntary merger would indeed make all of the teams stronger, but I have not seen or heard of any indication that any of these principals want to merge their assets with other teams.

I hope that clarifies things, but this is absolutely the wrong forum for this discussion. Please e-mail me if you have any further issues with this topic; I would rather keep these comments focused on the article’s topic.

By the way, I agree with you about the DeltaWing consortium’s position – they do seem to give off the vibe that they want to mandate change – and control the mechanism thereof on their own instead of leaving it to the league – instead of simply being another option. That makes me hesitant to support the concept, which in theory is otherwise very innovative.

You are validating my inherent mistrust of strangers.
Pop Off Valve - A greasy hot tenderloin of IndyCar goodness!

by Tony Johns on Feb 16, 2010 7:34 PM EST up reply actions  

"inherent mistrust,"

   
 That’s you’re signature line. Sorry if I misquoted you.

“…Wellfare situation….”

Sorry if I misquoted you again. That has nothing to do with what I proposed.

Mr. George already proved that team welfare doesn’t work very well. If that’s not accurate, I apologize: my eyes are on the present, and the immediate future.

To misquote your signature line again, I suppose that focus makes me “stranger” than most..

On a side note: I see that you have pixels dedicated to feeder series readers, so I posted a belated remembrance to Joe Stimola. A bit of a biographical piece would make a nice story, and perhaps some of your readers could share a tale or two. I had a photo to post with it, but there did not appear to be an option to do so on this site.

I haven’t had too many bosses in my life, but he is the only one I would shed a tear over. Many of those, but only one Joe. Godspeed.

   
    
    
    
    
      
   
   
    
    
    
    
   
   
   
   
   
   

   
   
   
   
   

by JagtechOhio on Feb 16, 2010 9:27 PM EST reply actions  

Joe Stimola

Actually, if you have a personal remembrance of Joe Stimola I’d appreciate it if you’d share it with our readers. You can click “New FanPost” in the right hand column of the site and create a story complete with pictures and whatever else. When you’re done I’ll proof it and publish it on the front page.

You are validating my inherent mistrust of strangers.
Pop Off Valve - A greasy hot tenderloin of IndyCar goodness!

by Tony Johns on Feb 16, 2010 11:44 PM EST up reply actions  

Thanks

Thanks for this news. I sure hope this team does not employ a driver like Milka Duno in a 650 hp indycar for any IZOD IndyCar Series race.

Does North America need a racing tv channel?

by Rick Kappler on Mar 5, 2010 1:49 PM EST reply actions  

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