ARCHER WANTS $ 60M FOR SUPERCARS
Owner Archer Capital has put a $ 60 million price tag on the Supercars.
The figure has emerged following the revelation that the high-powered consortium of telecommunications mogul Peter Adderton is out of the game.
Archer’s price was too high, even for his group of multimillionaires, who also wanted to buy out the teams.
As revealed by AUTO ACTION, three groups are still in the race to buy Supercars.
These are the TLA-backed offer of Mark Skaife, as well as offers from rival promoter Australian Racing Group and Peregrine Group, owner of The Bend Motorsport Park.
AA learned that one of them had made “a solid offer” that the others had to match or exceed.
Boost Mobile boss Adderton declined to increase his union’s offer, deeming Archer’s expectations unsustainable.
According to an informed source, the private equity group wants “at least $ 60 million” for its 65% control of Supercars. The remaining 35% is held by the teams.
The Adderton-led consortium also included five-time motorcycle world champion Mick Doohan, Bathurst 1000 co-winner Paul Morris, BTCC boss Alan Gow and transport mogul Peter Smith, who owns the REC that underpins the entry of his son Jack to the BJR.
They wanted to buy out the teams as well as Archer, but their offer did not match the main offer for the majority stake.
AA understands that the Adderton Group was offering teams financial incentives to stay after selling their shares.
The offers have reportedly caused a rift between Archer and the teams, who have a virtual veto over the sale.
They have companion rights that allow them to demand that their combined stake be purchased at the same rate as offered for Archer’s property.
It is understood that Adderton will officially withdraw the offer from its group today (Monday, July 19), unless the seller gives in and weighs the offers on merit rather than price.
“At this point they are out,” a source said. “They refused to increase their bid because the financial data didn’t make sense.”
Talks about selling supercars were rife in Townsville over the weekend.
Although bidders are supposedly muzzled by nondisclosure agreements, there has been extensive internal debate over the bids.
Knowledge of the main offers was widespread.
Among the teams, it was noted that Adderton’s proposal was bolstered by offering them “a significant increase” in the annual financial returns of their RECs, as well as an agreement to cover the costs of their switch to Gen3.
The surviving deals are apparently all based on an ongoing 65/35 partnership with the teams.
TLA is Australia’s leading sports marketing agency with international links. His offering is led by Mark Skaife, who is led by TLA boss and former AFL star player Craig Kelly.
ARG is the main promoter group outside of Supercars, performing TCR, S5000, Trans Am and Touring Car Masters, as well as the Bathurst Six Hour and the new Bathurst International. Backed by former Supercars team owners Garry and Barry Rogers, ARG, under its former ownership, made an unsuccessful bid for Supercars in 2019.
South Australia’s Peregrine Group is the state’s largest private company. It operates the statewide OTR convenience store / gas station network and owns The Bend and Mallala trails.
One of the founders of the family business Peregrine is Sam Shahin, motorsport enthusiast and accomplished amateur racer.
The Supercar portfolio also includes the 12 Hours of Bathurst, which last took place in 2020 just weeks before the start of the COVID-19 pandemic.
Considered one of the great GT enduros in the world, the 12 Hours did not take place this year due to the closure of the Australian border and are also questionable for next February.
For more information on the latest Supercar news, check out the current issue of Auto Action. Also make sure to follow us on Facebook social media, Twitter, Instagram or our weekly newsletter for all the latest updates between issues.