A broom sweeps through V8 Supercars HQ

[Just Do It!]

Story here

Is this how Archers are looking to save $500,000 to $1 million a year?

[PVDA]

Not unexpected as they'll want to maximise thier return on the investment.

There's only two ways to maximise profits;

- Reduce overheads or
- Increase what you charge.

Looks like option 1 is first up unless the appearence fee for the series has gone up recently that we don't know about, then again the majority of events are in house so they cant exactly charge themselves more or can they??

[Tourer]

Still more reductions to come I'm told.

Guess that Archer would be looking to either increase revenue or reduce costs (or both) and the likelihood of increasing revenue is low with most events (not just V8s, I'm including music tours, festivals etc) getting less revenue than in previous years.

So that means that there'll be a desire to decrease costs and these staff cuts are clearly part of that. Remains to be seen what other costs are cut.

[peckstar]

Revenue also comes from sponsorship and tv

With XXXX gone they have lost one of their major sponsors, also Fujitsu have taken there developmeent series sponsor and it has not been replaced yet.

There has been a significant revenue cut here also (well at least at this stage, maybe there is some good news coming)

[GTRMagic]

Why would you need a CotF project manager when the teams already have their signed-off spec drawings and the basis of their post-2013 technical regulations

There were reportedly 41 employees in the V8SA building prior to this realignment... so there still seems to be a solid core remaining to administer the series..

[woodduck97]

I am sure that the bloke that makes up the crowd figures is still there

[david5]

A house of cards falls over eventually.

[peckstar]

Originally Posted by woodduck97

I am sure that the bloke that makes up the crowd figures is still there

not on the payroll, tickettek are subcontractors

[mountainstar]

Every business at regular intervals needs to have a top down evaluation of staff. You've got to look at who is productive, whether they fit with the organization, whether that job is even needed in the first place. There are all sorts of variables to consider and evaluate. It's not a bad thing.

[Tourer]

Originally Posted by GTRMagic

Why would you need a CotF project manager when the teams already have their signed-off spec drawings and the basis of their post-2013 technical regulations

There were reportedly 41 employees in the V8SA building prior to this realignment... so there still seems to be a solid core remaining to administer the series..

Mr Perry was more than a COTF project manager though although I'd agree with you that it has been his main focus. Way more to COTF than teams signing off - still need someone to drive the aero packaging and details with manufacturers, work with potential new manufacturers etc. I'd suggest that Mr. Skaife would be doing this though.

I think that your reported number of employees is WAY short of the mark - exceeded that number long before they moved to Nerang - I understand that the employee number (incl TV) is in the three figure range these days.

[GTRMagic]

I was excluding V8TV.... And you are right regarding the ongoing complexities of administering the technical rules of the sport.. however there were warm bodies in residence during Project Blueprint, that are arguably still going to work at Nerang each day...

A story doing the rounds suggests that a shareholding in the V8SA Events business may be being shopped around... This would unlock capital, as well as spread the risk of operating events...

[Tourer]

Originally Posted by GTRMagic

I was excluding V8TV.... And you are right regarding the ongoing complexities of administering the technical rules of the sport.. however there were warm bodies in residence during Project Blueprint, that are arguably still going to work at Nerang each day...

A story doing the rounds suggests that a shareholding in the V8SA Events business may be being shopped around... This would unlock capital, as well as spread the risk of operating events...

Technical side is interesting and there are no warm bodies (on the tech side) at Nerang who were there for project blueprint. Gotta assume that there is a plan in place to make sure the tech side works and that'll be announced at some stage.

Makes sense to look at farming out some of the events business - there is a deal of risk there that must impact on the rest of the company.

[GTRMagic]

Originally Posted by Tourer

Technical side is interesting and there are no warm bodies (on the tech side) at Nerang who were there for project blueprint. Gotta assume that there is a plan in place to make sure the tech side works and that'll be announced at some stage.

Does the category still have its Technical Manager?

[Tourer]

Originally Posted by GTRMagic

Does the category still have its Technical Manager?

I assume so but he wasn't there when project blueprint was introduced - he came later.

[GTRMagic]

Originally Posted by Tourer

I assume so but he wasn't there when project blueprint was introduced - he came later.

Ah.. perhaps it just feels as if Mr Adamson has been around forever

[Casper]

Originally Posted by Tourer

Still more reductions to come I'm told.

So, who told you?

[cavvy]

Originally Posted by Just Do It!

Story here

Is this how Archers are looking to save $500,000 to $1 million a year?

I'm at a loss to understand your comment - it suggests after investing $180 mil the management restructure is designed to save a dollar.
Its a bigger game Archer Capital are playing.

Seems to me to be just a V8 Supercar restructure rather than something involving Archer Capital - the do want strong management from the minority shareholder.

[Tourer]

Originally Posted by Casper

So, who told you?

Who told me is none of your business but I was given to understand that staff were told there would be more to go.

[peckstar]

Originally Posted by cavvy

I'm at a loss to understand your comment - it suggests after investing $180 mil the management restructure is designed to save a dollar.
Its a bigger game Archer Capital are playing.

Seems to me to be just a V8 Supercar restructure rather than something involving Archer Capital - the do want strong management from the minority shareholder.

Archer are the majority shareholder.

[cavvy]

Originally Posted by peckstar

Archer are the majority shareholder.

Roger that peck. I'm suggesting these changes were driven by the minority shareholder Mr Cochrane - he runs the show day to day, & this is the sort of management decisions ALL shareholders would be looking to him for.

[porsche91722]

Originally Posted by cavvy

Roger that peck...........

Sorry, I had to look that up, I'm not good with definitions, do you mean........."Used especially in radio communications to indicate receipt of a message."
or this............."Slang (of a man) to copulate (with)"

[Rachel Richards]

Now a few months ago, I and a number of friends mused that the asset stripping was yet to begin, and that the truck drivers (Vinnie's replacements ) should be expecting a summons into the Boss' office to discuss a "wonderful business opportunity"

I'm picturing a deal that sees the drivers offered the "opportunity" to buy the truck & trailer combo's and lock in a three year lease-back deal !

That sees some more cash come back into the business, with a tax deductable lease arrangement to boot (and no wages or running costs)

[mspence]

Originally Posted by cavvy

I'm at a loss to understand your comment - it suggests after investing $180 mil the management restructure is designed to save a dollar.
Its a bigger game Archer Capital are playing.

Seems to me to be just a V8 Supercar restructure rather than something involving Archer Capital - the do want strong management from the minority shareholder.

Really?

So, the man who was in charge when all these people were employed has all of a sudden realised his mistake and decided to cull it?

Sounds more to me like the moves of a new CEO - when did he start? - to exercise the mandate of the Board (hello Archer!) to clean up an organisation that is way to 'fat'.

If anything, this is a big smack to the 'minority shareholder' for running an organisation that clearly on outside inspection was running way too heavy.

[eduardo1]

I don't know that it's got a lot to do with the new ownership structure but rather has more to do with the current economic environment.

V8SA have lost revenue with two very major sponsors ending their association and nobody coming in to replace them.

Your staffing levels are pro-rated against your revenue and profit. If the projected revenues are dropping significantly, so too the staffing levels.

Given the doom and gloom (justified or otherwise) speculation about the economic situation, it's likely a pre-emptive restructure to cut some costs to offset revenue losses rather than a slash & burn attempt by Archer.

[Denosaur]

Anyone consider that these two may have been on contracts that didn't get renewed....?????

I'm tipping that some people's job roles may be amalgamated with others, thus creating some more redundancies.