By Bruce Williams
Release date: October 9, 2021
The sale of supercars to the TLA-ARG consortium could be completed within two weeks.
The bid is as good as confirmed as the consortium is in the final stages of the acquisition and the selling price is still estimated at $ 93 million.
Final details of Archer Capital’s sales results are now being finalized, including details of the expected windfall for Supercars teams.
Each of the existing holders of a Racing Entitlements Contract will be bought out of their current REC, with payment in the form of a guaranteed income for five years. It is widely rumored that the minimum payout for any REC over the five-year period is $ 650,000 per year.
This will result in the teams no longer having a stake in the supercars business, with the buyout consortium taking full control of both the Archer Capital shares (65%) and the team’s own RECs (approx. 30%), with the rest being owned by a few smaller shareholders, mostly the past Supercars management, which likely includes former key people and former Supercars CEOs Matt Braid and James Warburton.
There is no news on who, if any, could replace Sean Seamer as Supercars CEO under Supercars’ new ownership structure.
However, insiders tell Auto Action that, given what has happened during his tenure as CEO, Seamer deserves a decent job.
“He had a lot of pretty challenging problems to deal with in his top job,” our source told us.
“He was served a pretty crappy sandwich, but he kept the show on the street while grappling with all the instability surrounding the numerous offers and lengthy sales processes, the launch of the Gen 3 program, new shows, all deals not to mention the fact that he steered the entire supercars ship through the COVID disaster. He deserves to get a good clear chance for a while. “
Negotiations have been going on for months, but an insider has told Auto Action that the fundamental deal has been made and that the details now matter.
“It will likely be binding around the second or third week of October,” they say
“The new racing charter was presented to all teams last Wednesday, which replaced the old Racing Entitlements Contract.”
It is this work on replacing the REC that has taken a lot of the work in the past few weeks, with a key Supercars team boss heavily involved in drawing up the new contract.
The new racing charter will continue to control the number of cars in the supercars field as well as the operational requirements required by the owners and teams of the redesigned supercars, ensuring that the new “charter” remains a salable asset to the interests of existing ones Teams despite the loss of their current stake in the company.
For more current Supercars news, see the latest issue of Auto Action. Also, follow us on social media Facebook, Twitter, Instagram or our weekly email newsletter for the latest updates between editions.
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