DETROIT — When Championship Auto Racing Teams, the major Indy car racing sanctioning organization, announced a reorganization to accelerate its motorsports business, a significant component of the plan was product licensing.

What evolved was a unique concept that resulted in the development of CART Licensed Products, LP, the licensing and merchandising arm for the Michigan-based PPG CART World Series which features such drivers as Michael Andretti, Al Unser Jr., Bobby Rahal and defending series champion Jimmy Vasser.

"We are implementing a comprehensive licensing program that involves our drivers, race teams and a number of race facilities," said Bob Hollander, president of CART Licensed Products, LP, and formerly head of the highly successful 1996 Atlanta Olympic Games licensing program. "This is really the first time in motorsports that a major series has brought all its assets together, under one roof, for a 'one-stop shopping' licensing concept."

The concept allows licensees and retailers to work with a single entity — CART Licensed Products which is headquartered in Atlanta — to create products and merchandise programs that include all the key elements of the series — athletes, teams and tracks.

"We began planning and developing the company about one year ago," said Hollander. "The glamorous and high-technology environment that is found at CART races is very appealing to a wide and growing segment of the population which is attracted to extreme sports like CART racing. We saw tremendous merchandising potential, not just in the United States, but worldwide."

Hollander and his team say the worldwide appeal of CART-style racing led them to pursue the opportunity to partner with CART. He says the expanding high-technology lifestyles and products of today are an excellent tie-in to the high-tech, high-speed competition found in each of the 17 CART races held in the United States, Canada, Brazil and Australia. A race in Japan will be added to the 1998 schedule.

Hollander has assembled an experienced group of sports licensing and marketing professionals. One of the key staff members is Jonathan Frank, vice president of sales and marketing for CART Licensed Products and formerly a director at Major League Baseball Properties.

"The reality is that an opportunity like this has never really been actively created in motorsports," said Frank. "Being able to market everything collectively gives us a true advantage over, not only other motorsports series, but also over other sports leagues. From a marketing and licensing standpoint, we're starting with basically a clean slate, fantastic driver-athletes and an impressive audience of motor racing fans from which to build."

In only a short period of time, CART Licensed Products has attracted a significant number of interested licensees.

"We've begun to make deals with the best in the business and will announce them as agreements are finalized," Frank said.

One license that has been announced is a multi-year Video Games license with Sony to develop an exclusive CART racing game for the company's very successful PlayStation system.

"It's a great tribute to CART when a company the stature of a Sony — the No.1-selling game hardware manufacturer in the world — chooses to work directly with CART than through the usual third-party developers to create a game," said Hollander. "It indicates to us they really understand the tremendous potential CART offers as one of the only U.S.-based sports entities that has true worldwide consumer appeal."

One of the challenges for any new program is to garner shelf space in the competitive retail market.

"CART is totally committed in every respect to supporting both our licensees and retailers with compelling marketing, advertising and promotional programs," said Frank. "Having licensees who can offer merchandise with graphics of all our drivers and teams simplifies the buying process for retailers."

CART's 17-race schedule begins March 2 in Florida and ends in late September in California when the series points leader is crowned as the PPG Cup champion, earning the traditional right to display the "No.1" on his car during the next season. CART Licensed Products plans to create consumer buying events throughout the season with substantial effort put into the 1997 Holiday season when auto and motorsports gifts, toys and apparel are in greatest demand.

Source: CART News Service