A former V8 Supercars Australia sponsor is filing a major damages claim against the sport’s owners over a credit card marketing deal it claims V8s failed to support.
The Australian reports today that the company is seeking $10 million in damages over the V8 Supercar Visa Supercard, launched in 2005. It was a joint initiative between V8 Supercars and Craig Gore, then V8 team owner and head of financial services firm WPS.
Gore was a director of the company running the card, which was issued by the Bendigo bank, but the card failed to meet expectations. The bank is converting remaining V8 Supercard holders to another of its products after it was shut down in 2007.
V8 Supercar Supercard is now owned by a friend of Gore, Queensland property developer Graeme Stonehouse, who is claiming that V8 Supercars failed to support the card, leading to the demise of the program.
Solicitors for the Supercard company said significant damages would be sought.
“The parties entered into an exclusive arrangement to co-brand a Visa or Mastercard affinity card with the intent of generating income and raising the profile of each of the parties as well as the V8 Supercars Championship Series,” solicitor Mark Adamson wrote.
“The nub of the company’s complaint is that V8 Supercars Australia Pty Ltd failed to perform in terms of the agreement. As a consequence of V8 Supercars Australia Pty Ltd failing to perform the terms of the agreement, the company suffered substantial loss and damage; by way of indication the company estimates the loss and damage as an amount of not less than $10 million.”
A spokesman for V8 Supercars Australia said the claim was without merit.
“V8 Supercars Australia rejects outright the vague and spurious claims made against it by the former Craig Gore company, Supercar Supercard Pty Ltd,” the spokesman said.
“An agreement once existed between V8 Supercars, V8 Supercar Supercard and WPS, however it was terminated in January 2007 following payment defaults under the agreement by Supercar Supercard. Any suggestion that V8 Supercars has any liability to Supercar Supercard is baseless and without merit.”
CLICK HERE to view the entire story in The Australian today.
