Hutchison sells a majority stake and cashes in on Wildcats in bid to clear radio network debts
Craig Hutchison has cashed in on the Perth Wildcats and has sold a majority share of the NBL team for a profit large enough to clear his radio network debt.
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Craig Hutchison has sold a 52.5 per cent stake in the Perth Wildcats for $21 million, giving him enough to pay off his debts on his struggling radio network.
The television presenter and business owner has flipped the Wildcats for a remarkable profit, paying $8.5 million for the team in 2021.
Perth based cyber security mogul Mark Arena has splashed the cash on the Wildcats, a team he has grown up supporting.
The two-staged deal will deliver Hutchison’s Sports Entertainment Group a $21 million payment by October 30, then another $15 million by June 2026.
“Sports Entertainment Group Limited has confirmed it has signed a staged Share Purchase Agreement… for the purchase of the Perth Wildcats,” the company said in a statement to the Australian Securities Exchange.
The deal values the Wildcats at $40 million, suggesting that Hutchison did a bargain basement deal with former owner Jack Bendat.
Hutchison’s company had been under financial pressure before it refinanced a loan with the Commonwealth Bank, which had the right to call in the debt at any time.
Mr Hutchison sold off a loss making New Zealand branch of his company last year as he desperately tried to pay down debt.
The CBA loan was refinanced for $20 million this year, giving him breathing space.
The deal announced today gives him the option to clear his debts when the payment arrives in October.
The deal still needs to get approval from the NBL, however it would likely be waved through as it puts a floor price on other franchises.
Sources with knowledge of NBL franchises say that the valuation was fair despite the huge uplift from 2021.
A source said sports teams had more value attached to them than just their financials.
Mr Arena has made a fortune through his cyber security company Intel 471.
The computer science graduate from Edith Cowan University worked at Telstra and the Australian Federal Police before starting up the company.
Mr Arena says on his LinkedIn profile that Intel 471 has a “9 figure valuation”, which translates to more than $100m.
However that was likely to be a conservative estimate.
Mr Hutchison started his career as a Herald Sun reporter before moving to Channel Seven and later becoming host of The Footy Show.
He went on a spending spree after merging taking over SEN and turning it into a national footprint.
He has also purchased the new Melbourne Mavericks netball franchise that was abandoned by the Collingwood Football Club because it was losing at least $1 million a year.
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