Craig Hutchison to sell NBL’s Perth Wildcats for $40m
By Calum Jaspan
Craig Hutchison’s embattled media and sports business has sold NBL franchise the Perth Wildcats for $40 million, easing pressure from debt woes that previously threatened the company.
The Hutchison-led, publicly listed Sports Entertainment Group (SEG) has agreed to sell 90 per cent of the Wildcats to MT Arena Capital Investment Pty Ltd, a company associated with West Australian cybersecurity entrepreneur Mark Arena, who is described as a lifelong Wildcats fan.
Wildcats owner Craig Hutchison has agreed to a sale of the team.Credit: Courtesy of Craig Hutchison
SEG confirmed the sale agreement to the Australian Stock Exchange on Thursday morning.
The binding agreement includes a staged sale over two years at an enterprise value of $40 million, with $21 million for a 52.5 per cent stake to be paid by October 30 this year, the statement said.
It comes just three years after Hutchison’s group bought the 10-time NBL champions for $8.5 million in 2021.
The deal also comes as SEG has been under pressure, with its auditors last year issuing a warning over its ability to survive should it not find cash to bring down its borrowings.
In February, SEG agreed to a new three-year extension of its debt facility with the Commonwealth Bank, replacing a previous deadline to repay the bank by August. Fortunes have improved for the company since then, with its share price up 30 per cent across the past six months.
Hutchison, a journalist and media executive, is the ASX-listed company’s second-largest shareholder, as well as its CEO, managing director and leading on-air talent.
SEG’s portfolio houses five sports teams, including new Super Netball team the Melbourne Mavericks.
Alongside its sporting assets, it also owns digital and radio assets (Sports Entertainment Network) and a television production company.
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