Grand Prix of Toronto negotiations extended

After being left off of the 2008 IndyCar schedule due to scheduling conflicts post unification, the organizers of the Grand Prix of Toronto have been working diligently behind the scenes to secure funding and sponsorship in a bid to return the street circuit, a popular stop for many open wheel drivers, to the schedule in 09.

In early March of this year, Andretti Green Promotions LLC announced it's intent to purchase the assets of the popular race and began a process of due diligence to determine if it would proceed with the actual purchase, the end date of which was set for April 3oth.

This morning a joint statement was released announcing an extension of this due date to further attempt to work out the details

INDIANAPOLIS, Ind. ( May 1, 2008 ) - Andretti Green Promotions, LLC and Grand Prix Association of Toronto Corp (GPAT) have agreed to extend the closing date on the potential purchase of GPAT’s assets until May 15, 2008.

The additional period is needed to allow both parties time to meet certain obligations related to the completion of purchase agreements.

The terms of the agreement will not be disclosed and neither party will be offering further comment.

A number of Toronto based newspapers have been speculating in recent days on just what the hold up could be, agreeing that funding and deflecting the losses (which depending on which article you read range between 2 & 4 million annually) are high on the list. While all cite quotes from unnamed sources and as well as a few from Bob Singleton, who isn't involved in the negotiations but offers speculation based on his past involvement with Molson Sports and Entertainment, only Rick Matsumoto of the Toronto Star got a definitive statement regarding the cities offer of support to bring this event back.

Toronto Councillor Joe Pantalone, who chairs the board of governors of Exhibition Place, confirmed that the city has contacted the Andretti group with an offer.

"A letter from Exhibition Place has gone out to them indicating what we can do reasonably,'' said Pantalone.

Though he wouldn't provide any actual figures, it has been widely speculated that AGP has requested that the city contribute $500,000.

GPT president Charlie Johnstone is said to be "cautiously optimistic." as to the final outcome of these negotiations.

"While it's true that the race has not been a money-maker for some time, our partners see it as a viable business entity, especially with open-wheel racing now being united," said Johnstone. "There are certainly challenges to be faced in promoting an event like Toronto, but AGR is the kind of company that appears ready to take on those challenges.

OpenWheelWorld.net will stay on top of this story and bring you updates as they become available.