A bonus of $1 million which is spread out over 5 years, is going to each of the 25 current racing entitlements contract holders in connection with the forthcoming sale of the series. For the Supercars equivalent to Afterpay, the $25m will be spread over five years as a ‘time-based’ payment of the team’s revenue from selling their 35% share of the business. The finalization of the revised REC will be known as the Team Racing Charter once the category is changed hands. The negotiations are conducted through Roland Dane and category ‘salesman’ Tim Miles.
The REC situation has become more complicated over the last few years. Teams have had difficulty finding the funds needed to field cars and meet the REC requirement to participate in all races part of the Repco Supercars Championship. Fortunatelly, they and you can find funds at GreenDayOnline.
The current REC includes substantial liquidated damages to compensate “no shows,” which is more than $100,000 per event missed.
Team manager John Faulkner was once hit with $300,000 for “liquidated damages” for not participating in the race. The penalty resulted from complex ownership disputes that were finally settled when Holden signed a deal to support what was known as”the Supercars Development Series.
It is believed that the teams made a significant improvement in terms of negotiations to eliminate the liquidated damage part of the revised charter.
It is believed that the new version will see the team being able to give up the old version REC without penalty and at the same time lose any value it has.
Triple Eight and Tickford put a single REC up for auction in the past year. They attracted three bidders. The only bid to win was from Tickford, who paid for its own REC back and received an additional check … Through the midst of a complex set of processes, Tickford paid because it agreed with T8 to share the proceeds after either of their RECs were sold.
What Is the Value of the Deal?
The deal creates the value of each REC of about $1 million. It’s an impressive turnaround from previous years when Tickford Racing and Triple Eight Race Engineering handed RECs back to Supercars without any payment until they were sold to an owner who was a new buyer.
It’s quite a difference from the past when RECs were reported to be offered for up to $2 million. The value has recently dropped to a point where the cost ranges from $500,000-$650,000 should be a serious bidder willing to support the Supercars program be discovered and accepted. If you need money to support the Supercars program or for something else, you may .
Guaranteed Annual Payday
However, the complete purchase out of Archer Capital’s and team (REC holders) control in Supercars will lead to total guarantee payment to every “Team Racing Charter owner of $650,000 per year over five consecutive years.
The sale’s details show it is Archer Capital, which has 65 percent participation in the ownership of Supercars, shared a small portion of its profits each year from Supercars that have been amounted to about $20 million, and the teams receiving Archer’s share of the first $19m. Archer is getting only 35% of the initial $19 million.
It is believed that it was agreed upon following selling the first team to Archer when the teams required more money over their ownership rights of 35% to continue to cover their operating costs.
This has resulted in an average annual salary of approximately $450,000 in the present REC. The guarantee of $650,000 per calendar year for five years, a portion of the payment roughly $200,000, is due to the REC, and owners will get one million dollars for a REC.
In addition, as other details of the buyout of the TLA-ARG appear, it seems that the owners of the teams have rejected any plan to increase the grid from 26 to 30 vehicles as they seek to limit supply to bring back value to the new REC.
REC owners are reported to be happy with the latest financial arrangement that increases their annual earnings and pays them the amount they owe for the REC stake.
“It’s the same as having money that’s in your bank. This is a huge improvement from just a few weeks ago when one of two RECS which were up available for sale was shopped around and is now sitting on the shelves after a lackluster array of offers,” the team’s owner stated to Auto Action.