Skaife Faces Financial Ruin

[burnz]

Racing great Mark Skaife ends his career in debt | Herald Sun
all i can say is walkinshaw does it again..
EXCLUSIVE: MOTOR racing great Mark Skaife is living in a rented flat and facing financial ruin after a series of deals has left him owing millions.

The four-time Bathurst champion will end his 25-year career at Sydney's Oran Park circuit on Sunday.

But instead of finishing at the top, the champion has sold his Toorak mansion and moved into a nearby flat with his wife and children amid a bitter business dispute.

A Herald Sun investigation has uncovered details of business transactions that have left Skaife's firm -Skaife Sports - owing Scottish racing magnate Tom Walkinshaw a staggering $3.6 million.

Had he not faced such immense business pressures as the owner of Holden Racing Team he may not have quit as a driver at the age of 42.

Documents from the Australian Securities and Investments Commission reveal the Holden great risks losing all his Skaife Sports assets, including one of the country's greatest sporting brands, HRT, should he default on the multi-million-dollar loan.

"It's a sad situation," said a source close to Skaife. "He doesn't deserve this."

Skaife sold his family home in Toorak last year at about the time he traded "debt for equity" with one of Walkinshaw's Australian-based companies, Real Racing.

Walkinshaw - a former touring car driver and former owner of HRT - acquired 50 per cent of Skaife Sport in September last year when he obtained 1.75 million shares in the company registered to Skaife in Erina, NSW.

But he has denied his financial arrangements with Skaife led to the champion driver quitting.

Walkinshaw said at the weekend he had no issue with Skaife and believed he just wanted to step aside for a younger competitor.

"Skaife retired," Walkinshaw said. "He announced his retirement six weeks ago."

The Herald Sun has been told the deal was struck to relieve debt owed to Walkinshaw Performance through Walkinshaw's interest in Holden Motorsport.

Walkinshaw Performance, through Holden Motor Sport, is contracted to provide race team services to HRT, including engines, engineering and paint.

"Skaife Sports had a services agreement with Holden Motorsport when Skaife bought HRT for a rumoured $3.5 million when Walkinshaw went bankrupt in 2003," said a source close to Skaife.

"Everything was fine until Walkinshaw took control of Holden Motorsport in 2006."

It's believed prices rose under Walkinshaw, contributing to the Skaife Sports debt, but Walkinshaw denied there were price rises or hidden penalties in the contracts.

"That's a complete load of rubbish," he said.

"The prices Skaife was charged were exactly the same prices as Holden were charging before.

"He signed the contracts and all the renewal of the contracts. It's not our fault that one of his major sponsors has defaulted on him."

Skaife has been putting his wage as one of the country's most popular V8 Supercars drivers into Skaife Sports as he tries to service the debt and hold on to the race team.

[NickVR]

Thats not good at all. I read that in the paper this morning. Hope Skaife makes it through this.

[immortality]

he's screwed, walkinshaw has engineered a good way to get HRT back

[Farlig]

he should have planned better for his family, hope he's good at poker

[minux]

Not sure how you plan sponsors not coughing up money.

Walkinshaw should not be allowed back regardless. I am sure if Skaife goes down the gurgler so will many followers on principal. Sad day for V8 supertrains really.

[hsvpunk]

I thought Skaiife was still living in Patterson Lakes... well he was last time i saw him.

Hard luck on the old chap. Hopefully things work out for him.

[Farlig]

Not sure how you plan sponsors not coughing up money.

investing in highrisk, he should have made sure the family still has a home to live in should something flop.

[ProphetVX]

investing in highrisk, he should have made sure the family still has a home to live in should something flop.

How does one plan for a sponsor hooking millions of dollars? Sponsors pretty much are their sole source of income, its pretty damn hard to effectively manage risks when you are reliant on one source of income and there is no redundancy there, especially when the payouts are so large and costs so high.

I don't know the circumstances of the sponsorship being revoked, but unless you see it coming and plan for it, its pretty hard to recover unless you find a new one immediately.

[immortality]

one wonders which sponsor pulled the rug?

[Reaper]

The word is that HSV didn't pay their sponsorship for 2 years. Now the plot thickens as HSV are part (read 50% part) owned by Walkinshaw. Makes it a bit rich to claim that sponsors not paying isn't his fault.

Reaper

[burnz]

their are two sponsor's missing try and guess which one's

Holden Racing Team - Sponsors

[immortality]

sounds like somoene engineered a way to get HRT back for themselves...... i wonder how much this has had to do with the poor performance of HRT this season?

[Troy711]

TWR seem to have pulled an Alan Bond...

"Oh, I went bankrupt but I found some money in my trouser pockets while I was washing them'.

[50LTRv8]

I don't understand alot of this. It almost sounds to me that Skaify set up his company as a sole trader instead of a company (which would have preserved his private assets.)

Tom Walkinshaw should be shot for doing this, how holden let this happen is beyond me.

Poor Skaif though, it actually makes me respect his driving even more, cause when you think about it, he would have known about this trouble for quite some time.

[Grennan]

Yeah how can you race with your heart if you know youre in the ****.

[soop]

If thats true.
Is anyone considering the commercial backlash HSV may see?

[burnz]

ok let's set the record strait it was NOT hsv or tw the major sponsor who ows the coin is OPES PRIME,(multi million dollar five year contract)
and two other droped/lost sponsor's didn't help but are paid up owing nothing (channel seven~biantie)

[minux]

His manager is saying it is all a crock of **** and has been reported incorrectly.

[STEALTHY™]

If this thread has taught us anything, its that people still can't post in the right section.

[minux]

Stealthy i merged a couple of posts as it was in 2 sections.

Figured it would be seen more here, so left it here.

[STEALTHY™]

Stealthy i merged a couple of posts as it was in 2 sections.

Figured it would be seen more here, so left it here.

Ohk, i'll let him off then haha

[Grennan]

Well its official. Walkinshaw now owns HRT. Skaife reliquished his ownership of HRT to Walkishaw and they have fixed up his debt.

[ashbox]

now lets see how long it takes walkinshaw to stuff things up again.

its good to hear its all wokred out for skaife.

[immortality]

funny how quickly that come about. certainly sheds some light on the plight of HRT and Skaifie's wayward driving this year. i can't believe Holden would let TW back in control of HRT after all the **** he caused last time around

[Torquative]

hmm will be interesting, although Ive heard its been mis-reported as well ... then again Skaife or his management havent exactly come out to say that so who knows.

Seems to be since the initial TWR breakdown Skaifes felt the added pressure, something Seton did mention back in 2003. We go from a Championship and Bathurst winner, to a mid and back pack sitter then to someone who crashes the car, gets out and says "oh well"

But yeh dunno if the reports are true or not. then again I like how they do it now just days out from his last round - someones got it in for him.