That’s the word from Tickford CEO Simon Brookhouse, who was brought into the Melbourne business at the start of 2024 with a mandate to lead it into a bold new future.
Tickford has been testing the market since late last year, having engaged capital and corporate advisory specialists Prime Financial Group to find new investors.
The business – which comprises a two-car Supercars Championship squad, a four-car Super2 team and a separate Tickford Engineering business – is co-owned by Rod Nash and Sven Burchartz.
Nash is certain to remain an active part of the operation going forward, while Burchartz is thought likely to sell out of his stake.
Tickford is believed to have been aiming to have a deal completed by the end of July, with Brookhouse previously suggesting there would likely be news in the wake of the Townsville 500.
However, the former commercial banker and experienced sporting administrator said during the Ipswich Super440 that the process is still playing out.
“We’re certainly working through that process,” he said.
“We’ve been through some significant due diligence with various suitors, we’re just waiting to find the right partner and then we’ll move ahead.”
Brookhouse said there is “not really” a timeline that the team is working too, although suggested he does not want it to drag on.
“It’ll be when the right partner comes along, and we think we can raise the right support and move forward from that perspective,” he said.
“There’s no fixed timeline but you don’t want it to go on for forever and a day and be sitting here this time next year still talking about it.
“We either find the right partner or draw a line in the sand and move on as we are.”
Tickford is believed to be seeking funds from the private equity sector, pitching the potential to use its engineering prowess on projects outside of Supercars.
While Brookhouse says the team isn’t solely looking in the private equity market, he’s a big believer in bringing such firms into the sporting environment.
“I have a belief that in the global game of sport in general, private equity is having huge influence, and we’re probably a bit naive here in Australia to that,” he said.
“From a professionalism and commercialisation of all sport, the value of the franchises in Australian sport are very high at the moment and you’re seeing globally a shift to these huge private equity firms investing in sport.”
Brookhouse points directly to the US-based Fenway Group, which owns stakes in the Boston Red Sox, Liverpool Football Club and NASCAR team RFK Racing, among others.
“The value you can garner from having extra capital coming into the business and be able to increase your revenues as a sport and as a franchise increases value for those investors,” he added.
“Historically sport has been valued as a multiple of revenue rather than EBITA [Earnings Before Interest Taxes and Amortised Expenses] and other things.
“If you can bring the right partners in to grow that revenue, however that may be, you grow your business for all your partners.
“I think we’ll see more of it in sport in Australia. We’ve seen it in NBL, we’ve seen it in other sports, it’ll continue to grow.
“Our market is ripe for the picking, the dollar is at the right place, and I think you’ll see more investors particularly coming here.”
Tickford Racing traces its history back to 2003, when it was set up by UK engineering giant Prodrive to promote Ford Performance Vehicles – a joint venture road car business with Ford.
Nash and Rusty French bought the team from Prodrive at the end of 2012 ahead of the end of local Ford manufacturing and the closure of FPV, with Burchartz later also joining the mix.
French sold out of his stake at the end of 2022, leaving Nash and Burchartz – a lawyer who specialises in motorsport – as co-owners.
Discussion about this post