NRL 2021: Brisbane Broncos keen to buy a stake in the Supercars Championship
They are the richest club in the NRL but the Brisbane Broncos have emerged as a shock bidder to buy a stake in the Supercars Championship.
NRL
Don't miss out on the headlines from NRL. Followed categories will be added to My News.
The Broncos have confirmed they are exploring the prospect of buying a potential $60 million stake in the Supercars Championship as the NRL’s richest club looks to diversify its iconic sporting brand.
The Broncos are one of the most recognisable brands in Australian sport and the NRL financial powerhouse is looking to shift sporting gears by going beyond the Steeden to embrace Supercars.
Broncos bosses have begun due diligence on buying a stake in the Supercars Championship as part of a two-pronged consortium that includes five-time Moto GP champion Mick Doohan.
Documents lodged with the Australian Securities Exchange show the Broncos had $19.9 million in cash reserves on June 30 this year, making the NRL glamour club one of Australia’s most profitable sporting franchises.
The race to the 2021 NRL Telstra Finals Series is on and every game matters. Watch Live & Ad-Break Free on Kayo. New to Kayo? Try 14-days free >
Now the Broncos are keen to spread their investment wings in Supercars via the NRL club’s majority owner News Corp, publishers of various mastheads including The Courier-Mail and The Daily Telegraph.
Broncos chairman and stockbroking mogul Karl Morris is a key player in negotiations.
Private-equity firm Archer Capital owns a 65 per cent stake in Supercars, with the remaining 35 per cent belonging to the Championship’s teams.
It is understood Archer Capital are seeking $60 million to offload their share, piquing the interest of News Corp via their sporting arm the Broncos, who have joined forces with a consortium comprising Peter Adderton, Paul Morris, Pete Smith, Doohan and Alan Gow.
Speculation about Brisbane’s involvement in a Supercars venture has gathered steam in the past week, with the Broncos breaking their silence to confirm their interest in Australia’s premier motor-racing championship.
“We are exploring an investment opportunity,” a Broncos spokesman said.
“We are currently in a non-binding, confidential and indicative stage of the process and accordingly are not in a position to make any further comment at this point in time.”
The Broncos are recovering financially in the wake of last year’s Covid crisis.
According to ASX documents, Brisbane have recorded a half-year before-tax profit of $3.17 million, up from a meagre $20,000 in the corresponding period last year following the temporary suspension of the 2020 NRL season.
The Broncos have fielded a number of investment opportunities in recent months, but do not have a history of venturing outside of their rugby league charter.
The Broncos are rated an outside hope among the three consortia bidding for Supercars ownership.
The Australian Racing Group and the Mark Skaife/TLA Worldwide partnership are considered the two frontrunning bids, with both meeting the $60 million price tag desired by Archer Capital for its majority share.
Archer Capital paid $180 million for their 65 per cent controlling stake in 2011.
It is understood the Adderton consortium proposed an entire buyout, including the Supercars teams, only for Archer to knock back their investment package offer.
News Corp, via the Broncos, subsequently reached out to a member of the Adderton group to broker a partnership, but is understood the NRL club is only a support act, as opposed to the chief spearhead of the beefed-up bid.
The Broncos will learn of their Supercars investment fate before this year‘s Bathurst 1000, which is slated for November 4-7, a month after the 2021 NRL grand final.
More Coverage
Originally published as NRL 2021: Brisbane Broncos keen to buy a stake in the Supercars Championship
Gus’ ‘doctored’ claim ignites NRL conspiracy
The NRL Grand Final’s controversial no try scandal has taken a wild turn despite the game releasing the angle the decision was based on.
Kangaroos selection shocks: NRL legends’ Test careers appear over
Mal Meninga has dropped a major selection bombshell by overlooking both James Tedesco and Kalyn Ponga for Kangaroos selection, with the list of surprise omissions and debutants not ending there. See the full squad.