V8 Supercars confirm new ownership structure
V8 Supercars has today confirmed a new ownership structure and a significant capital investment to support the continued development of Australia’s leading motor racing class.
The 18 V8 Supercars racing teams and founding investor, Sports Entertainment Ltd (SEL), have entered into a sale agreement with Australian Motor Racing Partners Pty Limited (AMRP).
AMRP has strong financial backing by Archer Capital, which secured the new deal ahead of a number of potential buyers.
Archer Capital is Australian investment firm with a long and successful track record of supporting and growing leading Australian brands and businesses, with over $2 billion of funds under management. The majority of investors in Archer’s funds are Australian superannuation and pension funds.
When the transaction completes, envisaged for late May, AMRP will become the major investor in V8 Supercars Holdings Pty Limited (V8 Supercars).
The racing teams and management will hold the remaining approximately 40 per cent equity interest in V8 Supercars.
Until now, the Championship has been jointly owned by the teams (75 per cent) and SEL (25 per cent).
While terms of the agreement are confidential, the transaction values the V8 Supercars enterprise in excess of $300 million.
Under the agreement with AMRP, SEL will exit the business after a successful 14-year tenure as founding investor.
V8 Supercars is indebted to SEL for its enduring contribution to the sport and is delighted that Tony Cochrane will continue as chairman of the business and retain a significant personal shareholding.
The current V8 Supercars management team will remain in place, but a new board of directors will be installed, comprising two representatives of the teams and two representatives of AMRP. Tony Cochrane will become the Chairman.
A new V8 Supercars Commission will also be constituted. The Commission will be an advisory body with a particular focus on racing rules, regulations and formats, and will be an additional resource to the board and management team. Further details on the Commission will be provided in June.
Miles Advisory Partners acted as corporate advisors to the V8 Supercars teams and SEL.
The announcement was held in the Orient Room at the Observatory Hotel in Sydney. Tony Cochrane (V8 Chairman), Roland Dane (team owner), Ross Stone (team owner), James Erskine (SEL) and Archer Capital’s Andrew Gray were the five members who fronted the press conference that was streamed live on V8 Supercars’ website.