American Racer Press Release 2009
 

Indiana, Pennsylvania
September 24, 2009
NEWS RELEASE

For Immediate release

On September 15, 2009, Judge Terrence McVerry of the Federal District Court for
the Western District of Pennsylvania issued an opinion dismissing Specialty Tires of
America’s and Race Tires America’s (STA) Complaint against Hoosier Racing Tire Corp.
and World Racing Group, Inc. (formerly Dirt Motorsports) for violations of the U.S. antitrust
laws. STA manufactures American Racer® racing tires and markets them through its
Race Tires America division. The complaint alleged, among other things, that Hoosier
used its monopoly power to foreclose competition for the sale of tires in dirt oval track
racing; that Hoosier conspired with sanctioning groups to restrain trade in the sale of such
tires; and that the intent of this conspiracy was to monopolize the market for dirt oval track
race tires.
The court dismissed STA’s Complaint without the benefit of a jury trial and without
considering the abundant evidence provided by STA of the exercise of monopoly power
by Hoosier, the foreclosure of competitors from the market, the barriers to competition
created by the defendants, and the collusive behavior of Hoosier and race sanctioning
groups. Instead, the court relied heavily on the appearance of “competitive” bidding,
instituted only after the lawsuit was filed, to assert that competition was present in the
market. The court, also, did not consider that the sanctioning companies were not tire
purchasers, that the racers and car owners were impacted by the higher prices resulting
from the defendants’ exclusionary conduct, and importantly, the court omitted
consideration of strong legal precedents condemning the use of exclusionary contracts to
monopolize, which describes defendants' conduct here.
STA and its racing division, Race Tires America, disagree with and are disappointed
by the action of the court in dismissing the company’s complaint, and intend to fully
consider and pursue all their legal options, including an appeal. The number of
market participants for tires for short track racing in the United States has declined
dramatically over the past ten years to the point where there exists only the dominant
supplier, Hoosier, and Race Tires America and Goodyear, the latter two companies each
with small shares of the market. With this decision, the court handed a company already
possessing monopoly power a critical tool for maintaining and expanding its stranglehold
on the sport of short track racing. In the future, with this decision, and without the benefit
of an actively competitive race tire market, race car drivers and owners, the true consumers
of race tires, can expect to pay higher prices, receive fewer choices, and be subject to
increasingly reduced quality and durability of tires.
The lawsuit brought by STA was not considered lightly nor was it inexpensive.
However, none of the costs incurred by STA in the litigation will be passed on to any of
our customers. The company continues to believe that market competition, not only for
race tires but also for other racing components, is the only way to assure that the sport
remains within the economical reach of both participants and spectators.
For further information, contact:

Thomas M. Schultz
General Counsel
Specialty Tires of America, Inc. and
Race Tires America, Inc.
4731 State Route 30
Greensburg, PA 15601
Email: tschultz@polymerenterprises.net

Re: American Racer Press Release
 

I have no issue with tire rules. However, I don't think there should be a Hoosier tire rule. Pick a compound and let teams decide whom they want to buy that compound from. If other manufactures make the same compound (or could make it if they know teams can buy from them), then teams should be able to decide who they want to buy from. The performance will dictate what teams buy. Some of the smaller teams would be allowed to save a few bucks as well if they choose. Just my .02.

Re: American Racer Press Release
 

Calling Don Moore - oh, Don...

Re: American Racer Press Release
 

Get ready, the big blue and yellow Goodyear train is smokin' down the tracks!

Re: American Racer Press Release
 

I have said all along that this Hoosier tire rule is a bunch of &hit. Its not fair to any racer to be told what tire he has to run on his car.

Everybody is "prepping" (chemical treating) their tires anyway to make em bite so the big teams are still up on the little guys. And you guys know what I'm talking about.

Re: American Racer Press Release
 

Heard Knoxville and the Azzlaws will announce goodyears on all corner this week yet:18:

Re: American Racer Press Release
 

Motormasher is absolutely correct on all counts..... Can someone out there (preferably a Hoosier tire fan) please explain why the price of a DT-3 tire has escalated in cost by more $45-$60 dollars over the last 3 or four years, while a standard RD-12 has only gone up $5? I thaught this tire "DEAL" from Hoosier was suppose to save money, I guess thats why a Right Rear cost me $213 dollars for the TNT series..... What a Deal !!!

Re: American Racer Press Release
 

I'm hearing that the judge is on an all expenses paid vacation right now in the Bahamas............... :3:

Re: American Racer Press Release
 

Yes exactly, when this tire deal was introduced they were suposed to be cheaper, $145.00 through the series.

Re: American Racer Press Release
 

I personally feel that Hoosier is taking advantage of every team that has to run the DT3 tire. The way I see it, I think the chunck of rubber used to make the tire should be ground up and used on play grounds.:34:

Re: American Racer Press Release
 

Mr tireman,

Anyone who knows me, also knows that my better half works for Hoosier. But I do have some questions for you, I am not trying to start a war or even get Don Moore fired up but. Dont you guy's (American race tire) have tire rule tracks? I know the answer is yes. But what boggles me is how you can try to sue and claim monopoly for something you engage in?
And dont think Iam being totaly bias torwards the purple people, I have started a battle a time or too here right under my own roof. And yes have pissed the better half way off.
So for what is fair and what is not Iam not sure of the answer. I personaly think yes the cost is a bit high. And it would be neat to see some compitition on that end to maybe help cost. But on the devils side I can also see if a "compound rule" was put in effect for all company's interested too go by. Hoosier would tweek theres a bit then American there's just a little and maybe even the the shoe with the wing could play too. So I guess Iam asking what is your "fix" to the problem? Too claim injustice? To have an American tire rule? what would you do?

You can contact me directly at my number below.

I go by Chuy and my real name is James Sandberg

P.S. The yellow and blue company tested yesterday close to your own back yard with Saldana. And they will have the outlaw's and Kville for next year. So........

Thanks for letting me rant.

Re: American Racer Press Release
 

"there`s no such thing as a free lunch"..................:)

Re: American Racer Press Release
 

The WoO needs to open up to "any" tire a team wants to run like it was when they started the series.

Re: American Racer Press Release
 

My beef with the tire deal, other than being overpriced, is the fact that the quality sucks on DT-3 tires as well as th SC-25. I always durometer my tires for my own self being, and every year the "track tires" especially the DT-3 are more inconsistant across the tread. That tire use to consistantly durometer at 48 across the tread. A few years back they started to fluxuate at 47-53 depending on which block was tested. Two weeks ago, the best tire I could choose from was between 49 and 61. Really consistant ehh. every racer that knows anything about tires knows that the harder the tire the more synthetic rubber is used. Therfore, synthetic (meaning man made material and not natural) tires should be more consistant than a natural rubber tire due to the fact that the company "controlls" the process. In my thoughts i know that hoosier is creating these tires as cheap as possible and selling them for a premium price simply due to the fact that everyone has to use them! I think another word for this is Price Gouging. Maybee Hoosier is in bed with the oil companies.... Sounds suspicious to me! Hahaa....

Re: American Racer Press Release
 

Make it a compound rule. There is to much money tied up in exclusive contracts with each tire company, and that's where the problem is. Tire companies are here to sell tires, that's all. If they make 10 compounds, that's fine, and we should run what we want. The tire rule isn't saving anybody any money cause the big dollar teams are still bolting a new one on all the time anyway. I don't blame Hoosier for doing what they are doing, but think about this for a minute. Hoosier tires on a winged car were pretty much non-existent until they got with Lasoski for part of the year, and then Kinser signed on for a few years. If Goodyear had it all tied up, everybody would be riding the wings of Goodyear.

Tire wars help everybody, promotes better racing, better prices, and a better tire for everybody to use.

Re: American Racer Press Release
 

"Tire wars help everybody, promotes better racing, better prices, and a better tire for everybody to use."

Except the the sanctioning body which gets a percentage from each tire sold under its exclusive deal with a manufactuer. Some put this money in the points fund.

Knoxville had Goodyears, Hoosiers and American racers on sale at the track this summer.

Re: American Racer Press Release
 

its more of a tire rule than a "deal"........................:34: Unless your Hoosier.

Re: American Racer Press Release
 

Everyone is entitled to their opinion, but I would like to correct some points in your post with facts. The DT3 tire rule with USAC and certain local tracks began in 2007. In 2007 the DT-3 tire retailed at $172.13, in 2008 it was $177.29 and this year it $183.32. Over the 3 year period of this tire rule, that tire has increased $11.19. Not the $45 or $60 as you believed. Additonally, the Right Rear RD12 has also increased more than the $5 you stated. In 2007, we retailed the RD12 at $212.50, in 2008 it was $219.00 and this year, 2009, it is $226.50. That is an increase of $14.00 over the three year period.

I can only speak of the tire sales from Hoosier Tire Midwest, but we do sell the majority of the DT-3 tires.

Also, regarding the Right Rear for the TNT Series, that tire was the 105.0/16.0-15 MED as designated by ASCS, so you cannot accurately compare the two tires or prices.

Susannah Stapp
Hoosier Tire Midwest - Indy
317-858-1234

Re: American Racer Press Release
 

Hello Susannah,
Just out of curiosity ... what is the cost to manufacture a DT-3 Hoosier RR tire? (per tire)
Also, how much (per tire) goes in to a track point fund?

Thank you for any info!

Chris Simon

Re: American Racer Press Release
 

Not to disreguard anything you have said, but do you know what the prices were before the USAC rule in 07? I do ! I still have the reciepts to prove it. Per Lincoln Park Speedway sales and MSCS sales of 2006 the DT-3 was $142.50 In 2007 the tires went up to $165 dollars at both places and have increased every year since then. I have purchased the same tire at Danville in April for $185 dollars, June it was $188 dollars, and July it was $193 dollars. September I purchased one at MSCS and it was $190. Going back to 2006 that is $47.50 increase. These are my facts! And the tires still suck>>>>

Re: American Racer Press Release
 

As I stated, I can only speak for Hoosier Tire Midwest but if you walked in our door and purchased a tire in 2006 the Retail price was $163.93. That becomes a difference between now and then of $19.39. In 2005 it was $154.74 which is a total difference of $28.58 over 5 years. I too have invoices that tell me the prices we charged. In the first post, I was speaking of the years of USAC and local tracks going to the DT-3 rule because that seemed to be where you felt like it wasn't a "Deal" and it did not save you money. It does save money compared to the RD-12 that you also spoke of. I am not here to to tell you your opinion of the tire is wrong. I just wanted to state what the prices where so everyone would know the true facts. Sorry to have upset you!

Susannah Stapp
Hoosier Tire Midwest - Indy
317-858-1234

---------- Post added at 01:17 PM ---------- Previous post was at 01:10 PM ----------

Chris, I am sorry but we are the Midwest Distributor for the tires and we are not the manufacturer, so I cannot(because we don't know) tell you the cost to manufacture the tire. I have to state that even if I did I would never release that information just the same as Whirlpool would not tell you what it costs to manufacture a washing machine. In a business sense that would not be smart.

Additionally, I cannot disclose what a track or sanction gets because that is a contract between Hoosier Tire and the Track or Sanction. I do not think if you called Goodyear and asked about their contract with Nascar that they would answer you either.

I am sorry to not be more helpful.

Re: American Racer Press Release
 

I just wish we could go back to an open tire rule,I can't see in the bottom line where it saves much money in the big picture.

Re: American Racer Press Release
 

Thank you for the reply, Susannah. See you at Eldora!

Re: American Racer Press Release
 

I normally keep my opinion to myself. Being a fan and part time crew member I figured this would be a good one to jump in on. I think that the practice of telling someone what tire they have to use is wrong in any situation. Open competition is good for everyone involved. With the judges ruling it seems that for now it will stay the way things are.

While I'm on my soapbox. There has been alot of talk on here about Purses being to low or way to top heavy.

There IMHO is an answer to both of these issues. All Drivers and Owners would have to unite and stand up to the sanctioning bodies and the tracks and say were not going to do this anymore. Now I know this would not be easy because racers love to race. How many weeks for the local track with no or a few cars showing up before things would change ? You guys are getting scr#wed every time you show up. There seems to be alot of money being made in local sprint car racing but the wrong people are making it. Just my thoughts

Mike


insanity: doing the same thing over and over and expecting different results

Re: American Racer Press Release
 

Also, regarding the Right Rear for the TNT Series, that tire was the 105.0/16.0-15 MED as designated by ASCS, so you cannot accurately compare the two tires or prices.

Susannah Stapp
Hoosier Tire Midwest - Indy
317-858-1234[/QUOTE]

Susannah,

I just want to make sure I understand. TNT went with the 16" tire this year rather than the 18" (105/18.0-15 MED)? If so, that was a departure from previous years.

Thanks in advance for confirming this for me.

Tim Simmons

Susannah,

I just want to make sure I understand. TNT went with the 16" tire this year rather than the 18" (105/18.0-15 MED)? If so, that was a departure from previous years.

Thanks in advance for confirming this for me.

Tim Simmons[/QUOTE]

Tim, it was the 16 wide this yaer not the 18 wide of years past. ASCS made that change and I believe, but not 100 percent, it was because that is what most of their other series run so they wanted their other guys to not have to buy a different tire to run the TNT series.
Posted via Mobile Device

Re: American Racer Press Release
 

Thanks, Susannah

Tim Simmons

Re: American Racer Press Release
 

This is true, but by the same token, if lets say Hoosier gives a grand into a points fund at a track, wouldn't it make sense for AR to do the same thing? So how does that not help even more? I know people in micros that don't go run other places because Hoosier is getting nuts and saying now you have to run a Hoosier on all four corners in some races. Why don't they tell everybody what shocks, cars, and engines to run as well why we're at it.

Get rid of the damn tire rule, and sell sponsorship like it used to be done, and quit making people run tires that don't help the racing at all.