The V8 Supercars teams could soon divest the remainder of their shareholding in the business to private equity firm Archer Capital, Speedcafe.com has learned.
A possible take-over by Archer of the teams’ collective 35 percent share is understood to have been in the works for some time ahead of the 2015 season.
Discussions over a restructured shareholding come as V8 Supercars attempts to increase the viability of its teams.
Many are currently known to be struggling, largely due to a lack of Racing Entitlements Contract dividends.
The mooted deal would see REC owners receive a guaranteed income of as much as $500,000 per season over a fixed six-year period in exchange for their equity.
The equation, understood to be structured around a 25 car grid, was formally put to REC holders in August, but is said to still be in negotiation with other options also being considered.
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Archer took a 60 percent stake in V8 Supercars in 2011, buying out former partner Sports & Entertainment Limited and reducing the teams’ collective share.
V8 Supercars CEO James Warburton also has a minority stake in the business, which he is expected to keep under any new structure.
Archer partner and V8 Supercars Board member and chairman, Rishabh Mehrotra, has this week left the company, although whether that will affect the negotiations remains unclear.
Mehrotra had only joined Archer midway through 2013, taking over one of Archer’s two places on the V8 Board from Andrew Gray.
Warburton declined to comment on any changes when contacted today, while Archer Capital did not respond to Speedcafe.com’s enquires.
Any move for Archer to buy out the teams would undoubtedly increase the firm’s ability to eventually on-sell the business, should it choose to do so.
Discussions over ownership come amid ongoing legal action between V8 Supercars and Lucas Dumbrell Investments over RECs that were handed back at the end of last season.
As reported on Thursday, two RECs were sold to V8 Supercars related business, Australian Motor Racing Partners, for $20,000 each after they were handed back at the end of last year.
The transaction took place after a tender process, which concluded on August 1, failed to attract any bids.
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