MOTORSPORT: V8 Supercars sold

The deal values V8SA at around $300 million, with indications that the teams are getting about $112 million – or $4 million for each racing entitlement contract – for 35 per cent of the business and Sports & Entertainment Ltd (SEL) about $80 million for its 25 per cent.

There was little in today's 40-minute announcement and media conference in Sydney that was not already known, but what became even clearer was that future growth of the business depends on adding more overseas races to the V8 Supercar Championship.

Tony Cochrane, who will remain at the helm of V8SA, said that little would change for fans, that it would be pretty much business as usual, but he indicated that the championship could expand to 18 rounds, with the existing two overseas rounds at least doubling within the next couple of years.

While there was no mention of destinations today, potential venues repeatedly mentioned in recent times have been Singapore, Qatar, India and the Philippines.

While the fees that can be generated from overseas races are important to V8SA's coffers and are an avenue for further growth, Australian fans have not been entirely happy with races going offshore.

It also ought to be remembered that two overseas rounds – Bahrain in the Middle East and Shanghai in China – already are no more.

Another matter that occupied some of the discussion during question time was the next TV deal for the sport beyond 2013 – and that Archer had come in without the next deal in place.

Cochrane expressed confidence that a new deal would be done that would deliver for the sport's fans and the V8SA business.

Archer Capital's entry to V8 Supercars - in a deal still not complete but expected to finalised this month - will be through Australian Motor Racing Partners Pty Ltd (AMRP).

The V8SA board will be reconstituted with five members - Cochrane still chairman, team owners Roland Dane and Brad Jones and AMRP representatives Andrew Gray and Brad Lancken.

A V8 Supercars Commission also is being created – as "an additional resource to the board and management team" - to focus on racing rules, regulations and formats.

Details on the commission are to be made known next month.

"I see the coming years as the most exciting and most dynamic in V8 Supercars' history," Tony Cochrane said.

Roland Dane - managing director of Triple Eight Race Engineering, which fields the benchmark Team Vodafone, and already a V8SA board member – said the teams "remain absolutely focused on the championship's sustained growth and to working with AMRP to that aim".

"We will all continue to support V8 Supercars as (its unchanged) management works to further enhance the racing calendar, including introducing new events, and to provide a championship of the highest calibre for our on-track fans and TV viewers alike," Dane said.

"Our Car of the Future program remains firmly on track (to begin in 2013)."

There are still no signs of new manufacturer participants under the Car of the Future project and the head of the scheme, Mark Skaife, was not at today's announcement although Cochrane said he would be "a big part of this business in the future".

Dane said the teams' sale of 35 per cent of V8SA was to give them capital to invest in the Car of the Future and that the teams had decided on Archer Capital as the preferred buyer ahead of Asian-based World Sport Group.

Archer Capital and AMRP's Andrew Gray said his group had been "highly impressed by the significant growth V8 Supercars" over 14 years and was "determined to provide all the support required to develop both the V8 Supercars business and the category as a whole".

While Gray said growth may not continue as rapidly as in the past he could envisage it still being "double-digit" annually.

He said Archer Capital was a "long-term, patient" investor.

"There are tremendous opportunities to further grow the sport and V8 Supercars brand, and AMRP will actively support the management team in executing its plans," Gray said.

"AMRP is excited to be investing in a sport that is an established part of the global motorsport landscape and revered by millions of fans.

"Custodianship of that support base is the most vital task for the business and we are committed to partnering with the racing teams and V8 Supercars management to continue to deliver outstanding championship events."

Today's announcement claimed the new structure of V8SA would be "more efficient and a natural progression for the rapidly growing business".

"It will allow the board to focus on strategic development, an expert commission will concentrate on technical and rules aspects, and management will be able to focus on administration, operational, commercial and sponsorship elements of the business," it said.

And so what does Archer/AMRP bring to V8 Supercars?

"AMRP has an impressive track record of investing in businesses, developing them and giving them a platform for further growth," V8SA said.

"AMRP has strong financial backing and expertise to ensure that V8 Supercars remains financially robust. AMRP is committed to partnering with the teams and V8 Supercars management to continue to deliver an outstanding championship, great racing and a stronger and more international sport."

While SEL is disposing of its 25 per cent stake in V8SA, it said it "has agreed to continue to be an advisor to V8 Supercars in the upcoming negotiation of the media rights".

SEL chief executive James Erskine said V8SA had been "a success story of mammoth proportions over the last 14 years - the culmination of hard work and ingenuity of hundreds of people"

"SEL is sad to leave the V8 family, but happy it is in good hands and we will always be there for help, advice and guidance when asked," Erskine said.

Today's announcements can be viewed below:

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