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Originally Posted by street talk, AFR Jan 9 2017 at 4:35PM, Sarah Thompson, Anthony Macdonald, Joyce Moullakis

PE backing unsolicited V8 Supercars approach

The play for Archer Capital's stake in V8 Supercars motor racing circuit has a few twists and turns to take.

As revealed by Street Talk on Monday, Melbourne sports business entrepreneur Bart Campbell has been kicking the tyres of Archer's 60 per cent share of Supercars that was bought back in 2011 in a deal valuing the entire business at $300 million.

Street Talk now understands the recent approach by Campbell, the chairman of NRL club Melbourne Storm and London-listed sports marketing and management agency TLA Worldwide, was unsolicited.

The deal was said to at least involve TLA and private equity money originating from the United Kingdom, where Campbell spends some of his time.

Given TLA's market capitalisation is only £45 million, the involvement of private equity is not surprising. Campbell is said to have about €50 million of investor money behind him.

Archer is said not to be terribly interested in selling just yet, but the finishing line is surely drawing closer for the firm as it nears the sixth anniversary of its original deal. [Supercars has held talks with a number of potential suitors but the board is yet to mandate any sale process.]

Supercars boss James Warburton, who has a small stake in the business that also count team owners and former management as shareholders, has restored Supercars' annual profits to around $30 million mark, the same level as in 2011 after a dip caused by an unfavourable broadcast agreement.

But armed with a six-year $241 million TV deal with Fox Sports and Network Ten and the promise of an improved contract next time, Archer could get out while the going is good.

Other interested parties could include WME-IMG, which last year purchased the UFC mixed martial arts circuit for $US4 billion, and French sports group Lagardere.

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