ARCHER WANTS $60M FOR SUPERCARS

Owner Archer Capital has put a $60 million price tag on Supercars.

The figure has emerged following the revelation that telco tycoon Peter Adderton’s high-powered consortium is out of the running.

Archer’s price was too high even for his cadre of multi-millionaires, who wanted to buy out the teams as well.

As revealed by AUTO ACTION, three groups are left in the race to buy Supercars.

They are Mark Skaife’s TLA-backed bid, plus offers from rival promoter Australian Racing Group and Peregrine Group, owner of The Bend Motorsport Park.

AA has learned that one of those made “a strong bid” that the others were asked to match or exceed.

Boost Mobile boss Adderton declined to up his syndicate’s offer, ruling Archer’s expectation as unviable.

According to an informed source, the private equity group wants “at least $60 million” for its 65 percent control of Supercars. The other 35 percent is held by the teams.

The Adderton-led consortium also included five-time world motorcycle champion Mick Doohan, Bathurst 1000 co-winner Paul Morris, BTCC boss Alan Gow and transport mogul Peter Smith, who owns the REC that underpins his son Jack’s BJR entry.

They wanted to buy out the teams as well as Archer, but their bid didn’t match the leading offer for the controlling stake.

AA understands the Adderton group was offering the teams financial incentives to stay after selling their shares.

The bids have reportedly caused a division between Archer and the teams, who have a virtual veto on the sale.

They have ‘tag-along’ rights that enable them to demand that their combined shareholding be bought at the same rate as offered for Archer’s ownership.

It is understood Adderton will formally withdraw his group’s bid today (Monday, July 19), unless the vendor relents and weighs bids on merit rather than price.

“At this stage, they’re out,” a source said. “They refused to raise their bid because the financials made no sense.”

Supercars sale talk was rife at Townsville over the weekend.

Despite bidders supposedly being muzzled by non-disclosure agreements, there was extensive internal debate about the bids.

Knowledge of the principal offers was widespread.

Among teams, it was noted that Adderton’s proposal was underpinned by offering them “a significant increase” in annual financial returns on their RECs, plus an agreement to cover the costs of their changeover to Gen3.

The surviving bids are apparently all predicated on a continuing 65/35 partnership with the teams.

TLA is Australia’s leading sports marketing agency with international ties. Its bid is fronted by Mark Skaife, who is managed by TLA boss and former AFL star player Craig Kelly.

ARG is the main promoter group outside Supercars, running TCR, S5000, Trans Am and Touring Car Masters, plus the Bathurst Six Hour and the new Bathurst International. Backed by former Supercars team owners Garry and Barry Rogers, ARG under its previous ownership made an unsuccessful bid for Supercars in 2019.

South Australia’s Peregrine Group is the state’s biggest privately held business. It runs the state-wide OTR convenience store/fuel station network and owns The Bend and Mallala tracks.

One of the principals of family owned Peregrine is motorsport enthusiast and accomplished amateur racer Sam Shahin

Supercars’ portfolio also includes the Bathurst 12 Hour, last held in 2020 just weeks before the COVID-19 pandemic hit.

Regarded as one of the world’s great GT enduros, the 12 Hour didn’t happen this year because of Australia’s border closure and is doubtful for next February as well.

For more of the latest Supercars news pick up the current issue of Auto Action. Also make sure you follow us on social media Facebook, Twitter, Instagram or our weekly email newsletter for all the latest updates between issues.