"An event of this magnitude requires considerable corporate support and, though we did establish some outstanding partnerships, there were simply not enough of these to create economic viability," said Dale Jensen, owner and managing member of the Sports Property.

The race would have been run on a newly constructed downtown street circuit.

The group, which also promoted the season-opening race in Las Vegas in April, said that event will continue, with the second edition on April 6, 2008.

"We obviously are disappointed that the organizers of Grand Prix Arizona canceled their event," Steve Johnson, president and CEO of Champ Car, said in a statement. "While we were looking forward to closing our season with a new Champ Car race in Arizona, we're prepared to now finish instead in Mexico City (Nov. 11) as we have done the past three years."

The cancellation means the Champ Car series will have no more races in the U.S. this season. The rest of the schedule includes Sunday's inaugural race in Assen, Holland, followed by Surfers Paradise, Australia, in October and the race in Mexico.

Another new event tentatively scheduled in China this season has been postponed until 2008.