Back when we where making the X-System I recall several discussions on the topic of oval racing and several possibilities where discussed.
The concessus of the CTRA stewards was that they didn't want to admin the oval servers, so we talked about the possibility of joining forces with FM (not that it got as far as talking to FM) to have an X-System driven oval racing tier, probably of 2 servers.
The problems we then looked at where the nature of admin decisions on the FM oval servers, they used a live admin and sure that's not the CTRA way but as we looked at it we felt that oval racings big appeal in LFS - mostly due to the rather easy Kyoto track - is predominantly for new drivers. We felt that a CTRA licence, whilst open to newcomers to sim racing, is something that newcomers should aspire to not just be granted.
Oval racing does require skill, it requires a very different set of skills to circuit racing but good oval drivers are non-the-less very skilled. That's why when you look at something like the 360 league (now LFS Car) run by Fischfix the top drivers always finish at the top.
What changes in Kyoto Oval is that a bad driver can have a far greater impact on the race than at a regular circuit, and this tends to mean that a good pickup racing oval server has a live admin. The CTRA was founded on the principle that live adminning does not lead to the best stewarding decisions, I still believe that the stewarding system on the CTRA is second to none in any sim in the world right now (i've not tried iRacing and its automated system), and compromising that for the sake of oval racing did not seem like a positive move for the CTRA.
FM already run a suite of very sucessful and popular oval servers, there's no reason for the CTRA to impede on their turf. They do a good job of running racing on Kyoto oval, a track which lends itself to some appalling crashes. They manage this despite being the first port of call for many new drivers to LFS.
With regards the LFS community the only way that CTRA could effect oval racing is to offer somewhere else for those banned from FM servers to repeat their mistakes. I do not think this would be a positive thing.
I'll re-iterate that i'm no longer with the CTRA myself, so I think the strongest supporter of ovals in the organisation isnt there any more. I have to say though, even I felt that there was nothing to be gained from the CTRA supporting ovals at the time.
Yes I did just say that, though I am mostly a circuit racer.