Team Soccer Mum
Mark Skaife hits skids with $3.6m debt
AUSTRALIAN motor racing legend Mark Skaife and his family are living in a rented three bedroom flat less than 1km away their former mansion as he faces financial ruin.
In one of the saddest stories in Australian sport, the five-time Bathurst winner will walk away from his glittering 21-year touring car career at Sydney's Oran Park Raceway this weekend in danger of losing everything.
A special investigation by the Herald Sun has uncovered details of a series of business transactions that have left Skaife's company - Skaife Sports - owing Scottish racing magnate Tom Walkinshaw $3.6 million.
Had he not faced such immense business debts as owner of Holden Racing Team (HRT) he may not have quit as a driver at the age of 42.
Documents obtained from the Australian Security and Investments Commission (ASIC) reveal the Holden icon 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 to Walkinshaw.
Skaife, who won his first Bathurst in 1991, rose rapidly to the peak of the sport in Australia.
Enormously popular with fans and sponsors, the Melbourne-born driver is known for his aggression on the track and his outspoken attitude off it.
"It's a sad situation," a source close to Skaife said. "He doesn't deserve this."
Skaife last year sold his family home in the exclusive Melbourne suburb of Toorak about the time he traded "debt for equity" with one of Walkinshaw's Australian-based companies Real Racing.
Skaife and Walkinshaw agreed on a deal that would see 50 per cent of Skaife Sports transferred to Real Racing in exchange for debt relief.
Walkinshaw - himself a successful touring car driver and former owner of HRT - then obtained 1,750,000 shares in Skaife's company.
Walkinshaw Performance - formerly Holden Motorsport - is contracted to provide race services to HRT.
"Skaife Sport had a services agreement with Holden Motorsport when Skaife bought HRT," the source said.
"Everything was fine until Walkinshaw took control of Holden Motorsport in 2006.
"Under the arrangement with Holden Motorsport, prior to Walkinshaw owning the business, the team received favourable costing and monthly bills for all the services required to run a race team.
"But the accounting systems changed under Walkinshaw and Skaife Sports found itself in massive debt. Instead of monthly costings he got a yearly bill which took him by surprise and he could not pay it."
http://www.news.com.au/story/0,27574...9-1243,00.html
Last edited by Street Road Laino; 01-12-2008 at 11:16 AM.
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holly crap!!!
very sad.
Team Soccer Mum
as much as i dislike holden, hopefully everything ends well. Would hate to see one of the big teams wiped out
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yeah im the same its sucks big time for him... although couldnt help myself i had to ring trent and tell him rofl
Team Soccer Mum
**** stirrer
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haha i learn from the bestOriginally Posted by Street Road Laino
Not your mother
Skaife's arrogance is one of the main reasons I support Ford in the V8 Supercars.
But this is not good for motorsport in Australia, with so much financial pressure there already, and both manufacturers struggleing financially, it would be sad to see one of the main teams getting wiped out like that.
Also not really an appropriate end to a succesful career for Skaife.
Forum Addict
exactly how i feel haha i changed over when lowndes did cause there was no way in hell i was going for HRT with skaife in charge....
Team Soccer Mum
you went for HRT,:gtfo:
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