This was published 3 months ago
Craig Hutchison’s sports empire offered $40m to sell Perth Wildcats
By Roy Ward
Craig Hutchison’s Sports Entertainment Group is considering a $40 million offer for its NBL club, the Perth Wildcats.
Hutchison’s group bought the 10-time NBL champions for $8.5 million in 2021 from Jack Bendat, who grew the franchise into one of the healthiest in the NBL with sellout crowds at RAC Arena in Perth during his 14-year ownership.
The Perth Wildcats could be sold.Credit: Getty Images
SEG confirmed to the Australian Stock Exchange on Thursday that it had received a preliminary offer for a 90 per cent stake in the Wildcats with a put and call on the remaining 10 per cent.
The offer is from MT Arena Capital Investment which is associated with West Australian cybersecurity entrepreneur Mark Arena, who was also described as a Wildcats fans since childhood.
The two parties made it clear that there was no certainty the deal would happen as it was subject to NBL approval, negotiations and agreement on the transaction documents.
“The NBIO is subject to a number of conditions including NBL approval and negotiation and agreement of transaction documents,” SEG said.
“There is no certainty a transaction will eventuate.”
The enterprise valuation for the last 10 per cent has scope to potentially increase based on “trailing financial performance”.
Alex Sarr has attracted international interest in the Wildcats.Credit: Getty Images
The 90 per cent stake would be paid in two tranches of $21 million by no later than October 30, 2024, and $15 million no later than June 30, 2026, with a put and call option on the final 10 per cent.
SEG has been saddled with debt, and in February moved to raise funds through the sale of shares in its sporting teams business.
But Hutchison said when the Mavericks entered the Super Netball competition in April that he hoped the expansion of his sporting empire would be mutually beneficial.
The Wildcats’ brand is receiving significant overseas exposure in NBA circles as Wildcats big man Alex Sarr is a potential No.1 pick in next month’s NBA draft. The Frenchman has spent this past season in Perth to play and prepare for the draft as one of the NBL’s Next Stars, bringing the Wildcats a sizeable overseas viewing audience of fans eager to see him.
SEG and MTACI said they would make no further comment.
The NBL also said it would not comment at this stage, citing confidential negotiations.
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