TEGA rejects Holden bid.

V8 Fan · 24 Apr 2003, 04:35 (Ref:579002)

From www.v8supercars.com.au

TEGA Rejects General Motors Bid For Holden Racing Team!
Touringcar Entrants Group Australia Pty Ltd (“TEGA”) today rejected the formal application by Holden Ltd to the change of control of the Holden Racing Team (“HRT”) to General Motors Australia Ltd.

Holden purchased the shares in TWR Australia, the company that operates HRT following the receivership of TWR International.

While rejecting the Holden application, TEGA has advised TWR Australia that it must find a new owner that will be suitable to the TEGA Board by no later than 1 June or risk the termination of the license that allows the team to compete in the V8 Supercar Championship Series.

“The agreements that TEGA holds with teams that compete in the Series provide the Board with an absolute discretion to withhold its consent to the sale or sub-licensing of racing entitlements to an entity controlled by a company which is a vehicle manufacturer” said TEGA Chairman Kelvin O’Reilly. “We have exercised that discretion.”

“The Board has been endeavouring to work through a number of issues with Holden since they advised us that they had purchased the shares in TWR Australia without applying for or receiving our consent” he said. “TEGA’s pre-emptive rights to purchase the licenses were also denied us through Holden’s purchase arrangements with the receivers of TWR International” said O’Reilly.

“Holden have stated that they intend to sell the licenses but at this time TEGA is not convinced that they are acting in a timely fashion suitable to us to rectify the situations in which they have placed themselves” said O’Reilly.

“The Board is of the view that this matter must now be resolved quickly for the benefit of V8 Supercar racing as a whole.”

Prior to being advised that Holden had purchased the shares in TWR Australia, the Board of TEGA had asked its investigative body – the TEGA Tribunal to conduct an investigation into possible breaches of the Ownership Restrictions contained within the Teams’ License Agreement.

“The TEGA Tribunal has commenced its investigation into the concerns that TWR Australia may have or have had simultaneous interests in HRT, K Mart Racing and Paul Weel Racing – a total of six (6) cars that compete in the Championship,” said O’Reilly.

“If the investigation reveals a breach of the 4 car provisions of the teams agreement, the racing entitlements of the teams are required to be suspended while the teams licenses are sold” he said.

Following sale of the licences, teams found to be in breach of the ownership restrictions will be prevented from competing in the V8 Supercar racing until such time as the Board enters into a new agreement with the team.

Currently the Board policy of TEGA and AVESCO would see the person/s or entities who are the legal and beneficial owner of a Teams’ License not re-admitted to V8 Supercar racing for a minimum period of two years.

**GTRMagic** · 24 Apr 2003, 04:51 (Ref:579007)

So when is the "QC's at dawn" scheduled??

RaceTime · 24 Apr 2003, 04:51 (Ref:579008)

June 2nd

**GTRMagic** · 24 Apr 2003, 04:53 (Ref:579010)

You are right, its a threat till TEGA decide if they are willing to risk Holden's participation in the series isnt it??

rocket · 24 Apr 2003, 05:43 (Ref:579038)

TEGA make their threats & holden make threats in return, if holden pulls out because of TEGA making them play by the rules they will be the ones to loose, what will the holden teams do if it happens & will TEGA fast track another munufacturer in
i dont think holden would pull out but if they do it will prove they cant play unless its their way

mmciau · 24 Apr 2003, 05:46 (Ref:579041)

GTRMagic.
I'd suggest these are two separate legal entities. Holden Ltd is the Manufacturer since about Nov 1998, not GMHA Ltd, so it will be interesting to see the logic for TEGA to (publically) argue they are one in the same!!!!
( they won't argue any position publically so that it is transparent)
Mike

**GTRMagic** · 24 Apr 2003, 05:55 (Ref:579044)

I agree mmciau, it probably wont be made transparent at all...

I presume the issue with Holden Ltd and GMHAL is that they both would have some equity ownership by GM in the USA, from the same legal entity... so if you argue that despite a common ownership structure, they dont actually report to each other now, but they could... and thats what is in TEGA's minds I suppose.

I still think there were more opportunities... Holden-Isuzu, GM Daewoo, the Holden dealer group, GMAC... plenty of opportunities where the direct legal relationship isnt there, but TEGA would likely get their knickers well and truly in a twist

What is the test for a manufacturer anyway, there is a Holden-controlled sales company that buys the cars from the manufacturing arm and onsells to the dealers... which entity is the manufacturer???

racer69 · 24 Apr 2003, 08:35 (Ref:579153)

I still think that it is the manufacturers that are in control. If Holden threatened to run if they weren't allowed to own the team, TEGA will cave in and let them do it. The main problem of a two make only category.

**GTRMagic** · 24 Apr 2003, 08:59 (Ref:579165)

Bring in the Magna, it looks so much like a VY nobody would notice

V8 Fan · 24 Apr 2003, 11:26 (Ref:579272)

Quote:

Originally posted by GTRMagic
Bring in the Magna, it looks so much like a VY nobody would notice

LOL @ GTR.

rocket · 24 Apr 2003, 11:42 (Ref:579281)

except the new magna looks sh*t a typical car designed for the yank market

Amaroo Park · 24 Apr 2003, 11:44 (Ref:579286)

Holden without Ford is nothing and Ford without Holden is nothing. They need each other to make the class viable. If Holden stop supporting teams and stop homologating cars and parts etc then V8 SUpercars is in dire straights, anyway in the end Tega and Avesco will cave to Holden or Holden will "Lend" Skaife some money to buy the team.......

**GTRMagic** · 24 Apr 2003, 11:51 (Ref:579290)

AA confirms Holden are looking at the moneylending option on the never never plan.... kinda like a Harvey Norman 400 days to pay, except this one is a 400 years to pay...

Wondering though, if SkaifeSport gets off the ground, who do you think he would want as a teammate?? Would old JR get a call up?

V8 Fan · 24 Apr 2003, 12:05 (Ref:579299)

Quote:

Originally posted by GTRMagic
AA confirms Holden are looking at the moneylending option on the never never plan.... kinda like a Harvey Norman 400 days to pay, except this one is a 400 years to pay...

Wondering though, if SkaifeSport gets off the ground, who do you think he would want as a teammate?? Would old JR get a call up?

I think Wayne Gardner. Their personalities would blend perfectly

RaceTime · 24 Apr 2003, 12:13 (Ref:579311)

I find it all so bloody ridiculous - like AA and MSN's reports yesterday that both Ford and Holden are threatening to take their bat and ball and stop playing if AVESCO allow Mitsubishi to come and break into their little cartel...errrrr I mean so called sport!

RaceTime · 24 Apr 2003, 12:14 (Ref:579314)

Quote:

Originally posted by GTRMagic
Wondering though, if SkaifeSport gets off the ground, who do you think he would want as a teammate??

Allan Moffat?

**GTRMagic** · 24 Apr 2003, 12:22 (Ref:579327)

LOL @ RaceTime.... I wonder what the ACCC would have to say about such things if anyone was so interested? Restraint of trade perhaps?

Tricky, WG would be in an excitable state if he could come back to HRT as an equity partner with Crennan and Grech!!! Id like to see that

racer69 · 24 Apr 2003, 15:16 (Ref:579508)

The fuuniest thing about the AA report was Ford and Holden saying they 'had built this sport'. If i remember correctly Nissan and BMW were willing to pump loads of money into it, as they were at the time, but were kicked out.

Teammate.....hmmmmm would there be a 'Barrichello clause' in there?

Crash Test · 24 Apr 2003, 23:54 (Ref:580042)

But if I built my own football team, I couldn't just rock up and play in the NRL/AFL, even though it complies with the rules...

**GTRMagic** · 25 Apr 2003, 01:07 (Ref:580068)

Yes you could, just ask South Sydney

Although if you call THAT a football team...

SkaifeSport needs a franchise... so they can buy either the current HRT one on the 400 years to pay plan, or wait till TEGA sell them at the firesale

TheGspot · 25 Apr 2003, 02:53 (Ref:580113)

Heh GTR lets poole the kids trust funds and talk to the powers to be. The GTRSpot race team, the name says it all.
Maybe the current situation will see the necessity for the Toyota and Magne v8 supercars.

Amaroo Park · 25 Apr 2003, 03:00 (Ref:580116)

skaife will end up as owner of HRT and I would reckon that Holden would charge him the high price of oohhhhh.........

1 dollar

**GTRMagic** · 25 Apr 2003, 03:24 (Ref:580126)

Which he would find a sponsor to pay on his behalf

The Hrt Kid · 25 Apr 2003, 04:43 (Ref:580177)

Could something like this be Procars gain? More cars drivers etc?????

**GTRMagic** · 25 Apr 2003, 04:49 (Ref:580180)

Pick up HRT, KRT & PWR lock, stock and barrel and go to PROCAR... I'd like to see that

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Has TEGA done a backflip?	pete55	Australasian Touring Cars.	11	7 Jan 2005 10:33
Subaru rejects Protecnica support	Bigguy	Australasian Touring Cars.	43	27 Apr 2004 02:37
Tega Cameras	Bradley	Australasian Touring Cars.	5	16 Feb 2004 09:56
Tega	pete55	Australasian Touring Cars.	30	22 Apr 2003 02:38
Best F1 Rejects driver	BootsOntheSide	Formula One	11	30 Jan 2002 15:06