Momentum building for sale of Supercars
Wednesday 23rd June, 2021 - 1:30pm
Several high-profile names have been linked to a possible buyout of private equity firm Archer Capital’s majority stake in Supercars.
Rumours were rife in the Supercars paddock at last weekend’s Darwin Triple Crown that several consortiums had registered their interest in buying the business.
Two names that continue to pop up are those of Norwell Motorplex owner Paul Morris and Boost Mobile owner Peter Adderton as part of a consortium effort.
Adderton said at the time he wouldn’t be buying the business unless the fundamental structure of Supercars was changed, taking control out of the hands of the teams.
Speedcafe.com understands that one bid for the business, not necessarily that of Morris and Adderton, hinges on a radical transformation to the make-up of Supercars.
That could see the teams, which own a 35 percent stake in Supercars, also bought out of the business.
Several more groups have been linked to the sale, including a possible consortium led by Mark Skaife.
It’s not the first time a bid fronted by former Holden Racing Team owner and Supercars presenter has emerged as an option.
Another name floating around has been that of former Australian GT regular and property developer Rod Salmon, who recently confirmed his interest in the business to Speedcafe.com.
It’s understood interested parties have signed non-disclosure agreements.
As many as five groups are said to be vying for the business after Archer Capital began working in earnest to sell earlier this year.
In any case, it looks as if Archer Capital is likely to lose out if a sale goes ahead.
The private equity firm bought its 65 percent stake for $137 million in 2011.
The value of Supercars is said to have dropped significantly since.
One source has indicated bidding could now be in the ballpark of $30 million to $60 million.
Miles Advisory, which is owned and operated by Porsche Payce Carrera Cup Australia driver Tim Miles, has been tasked with selling the business.
Ironically, it was Miles who brokered the initial deal for Archer Capital to buy its share in Supercars.
Archer Capital has long sought to offload Supercars from its portfolio of businesses.
Prior to the latest flurry of interest, it is understood the Australian Racing Group – which owns series like Supercheap Auto TCR Australia and S5000 – sought to buy Supercars.
Next year is set to be a crucial year for Supercars in terms of the launch of its highly anticipated Gen3 project, with new Mustangs and Camaros due to hit the track in August 2022 at Sydney Motorsport Park.
Many other keynote items have been secured for the coming years, namely a broadcast deal with Fox Sports and the Seven Network through to 2025, and naming rights partnership with Repco, also in a five-year contract ending 2025.
The next round of the 2021 Repco Supercars Championship will take place in Townsville across July 9-11.