Archer Capital Gone

[Casper]

Originally Posted by Spec83

Unless you are 100% certain it has bottomed out… the capital raising suggests that might not the case :-/

Either way, its bad news


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Why is it bad news? If the capital raising fails that will be bad news and there are no guarantees that it won't though I suspect they would have done their homework on that before getting this far.

[cavvy]

Originally Posted by Casper

Why is it bad news? If the capital raising fails that will be bad news and there are no guarantees that it won't though I suspect they would have done their homework on that before getting this far.

Spot on.

It is not an unusual for such an arrangement at this point of the transaction, as is paying out the REC holders over 3 years.
Any owner taking the money & heading off to spend it elsewhere wont happen.

$25 mil in a $100 mil deal is nothing to be concerned about.

[Spec83]

Should they not have had their ducks in a row before they offered though?? (I.e. raised the capital 12-18 months ago??)

Apologies, might be me being a bit naïve


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[GTRMagic]

Originally Posted by Spec83

Should they not have had their ducks in a row before they offered though?? (I.e. raised the capital 12-18 months ago??)

Apologies, might be me being a bit naïve


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Where did Archer get the funds for their bid?
It wasn’t their funds that were invested, it was their unit holders’ funds invested on their behalf by Archer. Exactly the same thing really.

And yes, on paper the buy price and sell price are misaligned for Archer, which conveniently ignores the dividends paid out (the 65% the teams didn’t get) over the life of the investment. It would be unlikely that across that period that the investors weren’t actually ahead overall…

[one five five]

Originally Posted by Sandgroper

The RACE consortium will combine all of Australia’s major motor racing categories under one ownership and management group.

That’s not a good thing

[Mixer]

Originally Posted by one five five

That’s not a good thing

Are you aware of the world we live in now?

I actually think fragmentation and self interest has been bad for fans and bad for the sport. ARG buying and walling off categories from bigger audiences was never going to be a good long term plan.

And ARG could never get a race up in uncertain times and Supercars did a pretty good job of that. So hopefully we get the strengths of both and no more conflict.

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[cavvy]

Originally Posted by Mixer

Are you aware of the world we live in now?

I actually think fragmentation and self interest has been bad for fans and bad for the sport. ARG buying and walling off categories from bigger audiences was never going to be a good long term plan.

And ARG could never get a race up in uncertain times and Supercars did a pretty good job of that. So hopefully we get the strengths of both and no more conflict.

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How the various categories fare will be a business decision, not necessarily reflecting the views of we fans.

Coch0 was a deft hand at extracting the best deals for Supercars from State Governments & without the strong hold of the manufacturers, the smaller markets may be the losers.
Hopefully I'm wrong.

[Mixer]

The smaller markets also have suicidally short sighted and stupid border policies and may cost their population a lot by their selfish stupidity and lack of urgency with vaccination.

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[cavvy]

Originally Posted by Mixer

The smaller markets also have suicidally short sighted and stupid border policies and may cost their population a lot by their selfish stupidity and lack of urgency with vaccination.

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Sydney may be the centre of Australia but WA will see out 2021 in better shape than NSW ... .... back to motorsport pls ....

[cavvy]

Originally Posted by Jack65

When the original RECs were handed out, IIRC teams paid a token $10K when they were created in 1997 as franchises. But since then there have been multiple restructures, with the difference Level 1 and 2 franchises disappearing, and IMG coming and going.

When Archer bought in in 2011, it was reported as a 60/40 split, now it is reported as 65/35, so perhaps Archer have elected to or been obliged to buy out teams as they left the series.

Interesting commentary in AA on RECs in the new structure of Supercars:

'The new deal effectively creates a value in each of the RECs at around $1 million, a significant turnaround from recent years when both Tickford Racing and Triple Eight Race Engineering handed RECs back to Supercars without payment until they were re-sold to a new owner.'

It’s a far cry from halcyon past years when RECs were reportedly sold for as much as $2 million each. Recently the value had dropped, and the price has been somewhere around $500,000 to $650,000 each if a serious bidder who could support a Supercars program could be found and approved.'

& dealing with getting teams to all rounds:
'As other details of the TLA-ARG buyout emerge, it appears that any plans to expand the grid back up from 26 to 30 cars has been rejected by team owners as they look to restrict supply to restore value in the revised REC.'

'The REC situation has become complicated in recent years as some teams have struggled to find the budgets to field cars and service the REC requirement to compete in every race of the Repco Supercars Championship.'

https://autoaction.com.au/2021/10/23...-supercar-recs

[Mixer]

Originally Posted by cavvy

Sydney may be the centre of Australia but WA will see out 2021 in better shape than NSW ... .... back to motorsport pls ....

Just lucky you do nothing but dig **** out of the ground for China, and that going back to the dark ages gets you a lollipop and a landslide election victory.

At least he didn't go cap in hand to the Feds to bail out the sacrifical tourism businesses like Ana.

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[one five five]

Originally Posted by Mixer

Are you aware of the world we live in now?

I actually think fragmentation and self interest has been bad for fans and bad for the sport. ARG buying and walling off categories from bigger audiences was never going to be a good long term plan.

And ARG could never get a race up in uncertain times and Supercars did a pretty good job of that. So hopefully we get the strengths of both and no more conflict.

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What conflict has there been? Both have kept themselves pretty seperate.

We know have the one company having either part-ownership or complete ownership of a bunch of major series, and the same company having either part ownership or full ownership of 4 of the allotted 5 events at Bathurst per year.

That is plainly disgraceful.

[Mixer]

Plainly disgraceful? I am detecting more than a bit of Animal Farm in your statements.

ARG had collected a great many categories and locked them out of racing with other promoters, causing friction and drama with competitors in more than one of the categories they acquired. Yet somehow people thought of this consolidation of power as good.

Supercars doing the same thing, generally to the benefit of the categories aligned with Supercars was seen as bad.

Now a combined ownership of the Supercars business by ARG and others is bad.

If there is an anticompetitive element there are pathways to deal with that.

Or is it just a case 4 legs good, 2 legs bad?

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[Alan52]

Originally Posted by Mixer

Plainly disgraceful? I am detecting more than a bit of Animal Farm in your statements.

ARG had collected a great many categories and locked them out of racing with other promoters, causing friction and drama with competitors in more than one of the categories they acquired. Yet somehow people thought of this consolidation of power as good.

Supercars doing the same thing, generally to the benefit of the categories aligned with Supercars was seen as bad.

Now a combined ownership of the Supercars business by ARG and others is bad.

If there is an anticompetitive element there are pathways to deal with that.

Or is it just a case 4 legs good, 2 legs bad?

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My personal worry is that as someone who attends both ARG and Supercars meetings if they combine them into 1 big show that halves the number of meetings I would be interested in attending.Less racing to go to is never a good idea.

[cavvy]

Originally Posted by Alan52

My personal worry is that as someone who attends both ARG and Supercars meetings if they combine them into 1 big show that halves the number of meetings I would be interested in attending.Less racing to go to is never a good idea.

Big shows for TV/media is the way we are headed.

I'm hopeful the Sandown historic meeting of Nov 5/6/7 will be allowed to welcome we peasants: https://vhrr.com/wp/sandown/
I love to sit in my lounge room, but miss the sound, the smell.

[E.B]

Originally Posted by cavvy

I'm hopeful the Sandown historic meeting of Nov 5/6/7 will be allowed to welcome we peasants: https://vhrr.com/wp/sandown/
I love to sit in my lounge room, but miss the sound, the smell.

I got word a couple of weeks ago from a friend who is involved in the organisation that there will be no spectators allowed. Logistically too difficult was the what I was told. Just competitors and helper(s). Not sure how many per car.

Edit: I just looked on the website and it now says in red :
"Regrettably due to Covid restrictions there will be no spectators at this meeting."

It then goes on to mention..... It has come to our attention that there is quite a bit of confusion/
misinformation circulating regarding the “Covid Vaccination” status
for this event.
Therefore please note that All persons seeking to attend the Sandown
venue for this event must be double vaccinated, and will need to
produce satisfactory evidence of such to gain entry.
This is not optional, and there are no exceptions.
The above is a Direction of the Victorian State Government

Yet on the same page it goes on to promote the event:
Looking for a weekend with a difference? A weekend you’ll long remember? Then how about this year’s Historic Sandown meeting for a feast of top motor racing action. There’s plenty to see on all three days from November 5 – 7, 2021.

And they wonder why there is confusion.....

[one five five]

Originally Posted by Mixer

And ARG could never get a race up in uncertain times and Supercars did a pretty good job of that

And yet you are advocating ARG buying a share of Supercars as a good thing?

Originally Posted by Mixer

If there is an anticompetitive element there are pathways to deal with

What are the pathways?

[champcarman]

Originally Posted by cavvy

Sydney may be the centre of Australia but WA will see out 2021 in better shape than NSW ... .... back to motorsport pls ....

Correct

[S griffin]

Just as long as we get a good calendar with enough races next year, then that’s a good start going. Got to avoid the disruption we’ve had to the calendar the last two seasons

[GTRMagic]

Originally Posted by S griffin

Just as long as we get a good calendar with enough races next year, then that’s a good start going. Got to avoid the disruption we’ve had to the calendar the last two seasons

A new custodian for the series will achieve this?

[billy bleach]

Originally Posted by S griffin

Just as long as we get a good calendar with enough races next year, then that’s a good start going. Got to avoid the disruption we’ve had to the calendar the last two seasons

Better eradicate Covid then

[S griffin]

That's what they are doing. After a slow start, vaccines are picking up down under and there are signs of progress, so while the virus will never go away, it will be under better control, like here in the UK

[billy bleach]

Originally Posted by S griffin

That's what they are doing. After a slow start, vaccines are picking up down under and there are signs of progress, so while the virus will never go away, it will be under better control, like here in the UK

You must read the Daily Mail.

[E.B]

Originally Posted by S griffin

That's what they are doing. After a slow start, vaccines are picking up down under and there are signs of progress, so while the virus will never go away, it will be under better control, like here in the UK

With a 7 day average of 45K (new infections) per day in the UK, I guess there must be a marked reduction in fatalities to refer to it as being under better control (for which the vaccine rather than planning is responsible I imagine).

[Racing Harz]

https://www.supercars.com/news/champ...-sale-process/