It is understood this was negotiated after the initial sale to Archer once the teams needed additional funding beyond their 35% ownership entitlement to be able to continue to meet their running costs.
The sale details reveal that Archer Capital, which has a 65 per cent ownership stake, has shared some of its annual profits from Supercars, which have amounted to around $20 million, with the teams receiving Archer’s 65% share of the initial $19m and Archer receiving only 35% up to the first $19m.
However, the full buyout of Archer Capital’s and the teams (REC Holders) ownership in Supercars will result in a total guaranteed payday for each ‘Team Racing Charter’ owner of $650,000 a year for five years.
Recently the value had dropped, and the price has been somewhere around $500,000 to $650,000 each if a serious bidder who could support a Supercars program could be found and approved. It’s a far cry from halcyon past years when RECs were reportedly sold for as much as $2 million each. The new deal effectively creates a value in each of the RECs at around $1 million, a significant turnaround from recent years when both Tickford Racing and Triple Eight Race Engineering handed RECs back to Supercars without payment until they were re-sold to a new owner. The final details of the updated REC, which will now be called a Team Racing Charter once the category changes hands, is being negotiated by Roland Dane and category ‘salesman’ Tim Miles. In the Supercars equivalent of Afterpay, the $25m will be paid over five years, as a ‘time payment’ of the teams’ revenue for selling their 35% of the business.
A $1million bonus, spread over five years, is coming to each of the current 25 Racing Entitlements Contract holders in Supercars as a result of the pending sale of the series.
0 kommentar(er)
