V8 BOSS DISMISSES NEW SALE RUMOUR

V8 boss dismisses new sale rumour – Photo: InSyde Media

NEW SPECULATION that Archer Capital is in talks to sell Supercars has been downplayed by V8 supremo Sean Seamer.

By MARK FOGARTY

A highly placed overseas source has told AUTO ACTION that Archer is in negotiations with a family owned company in India.

The Sydney based private equity company, which bought a controlling stake in Supercars from Tony Cochrane’s SEL and the teams in 2012, is on the record as planning to sell the business.

But according to Seamer, appointed last year as chief executive officer of Supercars, there are no active sales talks of which he is aware.

His view is that Archer is unlikely to look at selling until the next broadcast rights deal from 2021 is locked in.

“I’m not in any talks, I’m not aware of any talks, and I’d be surprised at this stage of where we’re at in the broadcast renewal cycle if anything were to happen prior to that,” Seamer told AUTO ACTION. “But Archer or I will let you know if anything changes.”

Unless it is in a hurry to cash-out its investment, it makes sense that Archer Capital would wait until the new broadcast rights deal is done.

The existing TV rights deal with Fox Sports and Network 10, which runs until the end of next year, was worth $240 million over six years.

The length and value of the broadcast agreements from 2021 would have a major impact on the worth of Archer’s 60-odd per cent ownership of Supercars.

When Archer took over in mid-2012, it was claimed that the venture capitalist’s purchase valued Supercars “in excess of $300 million”.

On that basis, it was reported that the deal cost $180 million, but AA understands the real price was closer to $130 million.

Archer bought SEL’s 25 per cent stake and halved the team’s share to 35 per cent.

Around five per cent is owned by minor shareholders like Cochrane, former CEO James Warburton and Supercars’ most senior executives.

The value of Supercars has plummeted since 2012, with a bid to sell the business in 2017 failing to draw offers even close to the $80 million Archer was willing to accept.

The best offer was around $50 million from a consortium of wealthy V8 team owners.

AA has been told that the talks with the unidentified Indian group have been serious enough that non-disclosure agreements have been signed, preventing acknowledgment of any discussions.

Although unlikely he wouldn’t know, Seamer conceded that it was possible he would be left out of any initial sales negotiations.

“Oh, sure,” he said. “Archer can have any discussions that they like at their discretion, but we have a pretty close relationship with the team there and, obviously, they sit on the board as well.”

Archer Peter Wiggs is on the four-man board, along with Seamer and team owners Brad Jones and Rod Nash.

Archer Capital is progressively divesting itself of a basket of corporate investments that included Supercars by early next decade.

According to a disgruntled minor shareholder, Archer would be lucky to realise much more than $30 million from selling its controlling stake in Supercars.

“They have almost run it into the ground, so I can’t imagine they can even recover 25 cents in the dollar,” the disaffected part-owner told AA.

There have also been rumblings that Seamer is under pressure to increase earnings and bring on board major new sponsors and race deals.

However, Seamer claims Supercars is riding the crest of a commercial wave.

“We’re really happy with the renewals from sponsors – key partners like Coopers and Coates Hire are staying with us moving forward, which is great,” he said. “We’ll continue to build on new partnerships that we have with the likes of Volkswagen, so plenty of good momentum in that space.

“(Marketing and communications chief) John Casey and the team have done a really great job there.”

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