http://www.news.com....5005941,00.html
AUSTRALIAN motor racing legend Mark Skaife is living in a rented three bedroom flat less than 1km away from his former Toorak mansion with his wife and two daughters 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 Oran Park this weekend in danger of losing everything.
A special investigation by The Daily Telegraph 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.
Fight to the end: Skaife will battle to keep Holden on
The steering column: When business and sport clash
Picture gallery: Best crashes in Bathurst history
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."
A 47-page contract between Skaife Sports and Walkinshaw Performance was then drawn up to address a "shortfall" relating to a $3.6 million debt. The document - obtained by The Daily Telegraph - shows that Skaife is at risk of losing Skaife Sports and control of HRT if the terms of the loan agreement are not met.
It is also alleged that Skaife's dire position was contributed to by his major sponsor, Holden Special Vehicles - also owned by Walkinshaw - not paying the sponsorship amount for two years. And it's also claimed the cost of parts and service for Skaife's team were raised after Walkinshaw took control of Holden Motorsport in 2007.
The added expense was allegedly a major contributor to the debts incurred by Skaife Sports - a claim Walkinshaw denies.
Another V8 Supercar team, John Kelly's HSVDT - which is also under a similar arrangement with Walkinshaw Performance - will break away from Walkinshaw at the end of the year.
Meanwhile Skaife has been channelling his earnings from his driving career back into his business as he attempts to service the debt and hold on to his iconic race team.
But those close to the popular driver fear he may lose the team made famous by the late Peter Brock.
The pressures on Skaife grew to the point where he had to give up his Melbourne mansion and move into a rented flat with his wife Toni and daughters Mia, 2, and Tilly, 1.
Skaife also has a son Mitch to a previous relationship.
All of his family members will be by his side this week as one of the great Australian sporting careers comes to an end at Oran Park on Sunday.
I thought BS when karlie told me, then I read the article.... blown out of proportion or legit?
Skaifey gone broke?
Started by
orangeLJ
, Dec 01 2008 08:20 AM
37 replies to this topic
#1
orangeLJ
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Posted 01 December 2008 - 08:20 AM
#2
Statler
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Posted 01 December 2008 - 08:29 AM
I hope it is lies!
What is that they say about the scots & their money?
What is that they say about the scots & their money?
#3
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Posted 01 December 2008 - 08:29 AM
I reckon it's legit... Doesnt take much for a company to go pear shape... (Nothing saying that HIS assets are under his WIFE'S name though)
#4
_JBM_
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Posted 01 December 2008 - 08:46 AM
This is the main problem, I would say.
"It is also alleged that Skaife's dire position was contributed to by his major sponsor, Holden Special Vehicles - also owned by Walkinshaw - not paying the sponsorship amount for two years. And it's also claimed the cost of parts and service for Skaife's team were raised after Walkinshaw took control of Holden Motorsport in 2007."
Looks like Walkinshaw is up to his old tricks.
James
"It is also alleged that Skaife's dire position was contributed to by his major sponsor, Holden Special Vehicles - also owned by Walkinshaw - not paying the sponsorship amount for two years. And it's also claimed the cost of parts and service for Skaife's team were raised after Walkinshaw took control of Holden Motorsport in 2007."
Looks like Walkinshaw is up to his old tricks.
James
Edited by JBM, 01 December 2008 - 08:48 AM.
#5
_trna76hb_
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Posted 01 December 2008 - 09:22 AM
Didn't Walkinshaw business go arse up overseas .
So how can he own a business here & own money to peaple overseas?
I am not a great Skaife fan, but i feel sorry for him
Tommy the turd.
Ian
So how can he own a business here & own money to peaple overseas?
I am not a great Skaife fan, but i feel sorry for him
Tommy the turd.
Ian
#6
orangeLJ
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Posted 01 December 2008 - 09:31 AM
Walkinshaw is a money hungry prick from what Ive always read, this situation would seem to follow that theme.
I was under the same impression, that Walkinshaw performance went belly up a while back, then he had a re-launch of the company a few years ago.
I was under the same impression, that Walkinshaw performance went belly up a while back, then he had a re-launch of the company a few years ago.
#7
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Posted 01 December 2008 - 10:02 AM
Walkinshaw is a money hungry prick from what Ive always read, this situation would seem to follow that theme.
I was under the same impression, that Walkinshaw performance went belly up a while back, then he had a re-launch of the company a few years ago.
You're right!!!
His company did go belly up some years ago, and if you remember he used to own HRT. He had to off load HRT because he was going bankrupt in the UK. That was when Skaife "brought" the license with a little pushing from Holden.
I've got to say that who ever let him get involved in OUR Motorsport again is a fool. The man has no ties to the sport, other than financial.
Between the shit with Ford pullng support from the likes of Johnson, etc and now this, AVESCO have some rethinking to do, me thinks..
Mick
#8
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Posted 01 December 2008 - 10:16 AM
Once you read all this, you can see why Skaife's racing results started to slip...
#9
_HatchmanSS76_
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Posted 01 December 2008 - 10:24 AM
Very sad news but not too uncommon in the world of motor sport with drivers/riders having nothing to show but debt at the end of their careers.
Looks like he's been screwed by a cunning person who knows exactly what he's doing. I like a few others, was suss when Walkinshaw was back on the scean after he went bankrupt overseas. It will be a sad day for Holden if Walkinshaw gets full control of HRT like this. It will be interesting how the fickle fans take the change.
I just hope Skaife and his family come out of it ok in the end. I hope karma gets Walkinshaw.
Looks like he's been screwed by a cunning person who knows exactly what he's doing. I like a few others, was suss when Walkinshaw was back on the scean after he went bankrupt overseas. It will be a sad day for Holden if Walkinshaw gets full control of HRT like this. It will be interesting how the fickle fans take the change.
I just hope Skaife and his family come out of it ok in the end. I hope karma gets Walkinshaw.
#10
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Posted 01 December 2008 - 12:40 PM
Walkinshaw has that reputation of being a ruthless prick. I reckon where there's smoke, there's fire. Conversely, however, maybe Skaife is a better racing car driver than financial wizard / business man. I guess we'll never know.
#11
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Posted 01 December 2008 - 01:24 PM
I really feel for the man, his passion is Holden where Walkinshaws is purely for financial gain, bloody scots and poms....
#12
REDA9X
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Posted 01 December 2008 - 08:23 PM
I remember talking to John Harvey a few years ago and he was saying Skaife was a very silly boy if he let TW anywhere near HRT ever again. Looks like he was right and now Skaife has nothing. I don't like the guy but he deserves better than this. I don't follow HRT any more and never will again, no wonder lowndes left TWR.
#13
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Posted 01 December 2008 - 09:37 PM
I really feel for the man, his passion is Holden where Walkinshaws is purely for financial gain, bloody scots and poms....
Heah! Yooooooo! Jummy!
El no hae yooo takin aboot the Scots like thaht!
El belt ye ower yer heed wi meh sporan laddy!
Hoots!
#14
_scalpa1_
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Posted 01 December 2008 - 09:54 PM
Its been confirmed that skaife has sold his share of skaife sports to tw for the amount owed! now avesco have to rubber stamp it which will be another interesting thing again. tw has been allegdly quoted as saying thanks mark and dont let the door hit you on the way out!
#15
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Posted 01 December 2008 - 09:54 PM
I believe Skaife hasn't actually gone broke, Wolkingshore (Mike Raymond pronunciation!) has erased Skaifes debt to him in return for the rest of the team.
I have disliked Tom since his own car broke at Bathurst in '88 and he threw his weight around and got in Perkins car and thrashed it until it broke. The way Larry was driving it, it most likely would have finished, and probably would have won the race.
I have disliked Tom since his own car broke at Bathurst in '88 and he threw his weight around and got in Perkins car and thrashed it until it broke. The way Larry was driving it, it most likely would have finished, and probably would have won the race.
#16
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Posted 01 December 2008 - 10:28 PM
Pinched from another forum...
Tom Walkinshaw and Mark Skaife have finally reached an agreement for the Briton to assume full ownership and control of the successful Holden Racing Team, following the multiple V8 Supercar champion's decision to retire at the end of the 2008 season.
The decision, which came after several weeks of discussion and remains subject to approval by V8 Supercars Australia, will be effective immediately but, contrary to initial speculation, Skaife will not be ousted by Walkinshaw assuming control.
Instead, the Scot - who has an extensive history in F1, touring and sportscars, as well as V8s - has requested that Skaife remain as an ambassador for the Holden Racing Team, in an effort to reflect his achievements for the team and the sport. In addition, Skaife will remain as a major ambassador for the Holden brand and its products.
While details of the agreement between the two prominent figures will remain confidential, no debt or other outstanding financial commitments will remain in relation to Skaife's team involvement.
Finalising the deal will leave Skaife, who has expressed an interest in exploring opportunities inside and outside of motorsport, free to concentrate on the final round of his full-time racing at Oran Park this weekend. Although he is calling time on a 21-year driving career, the veteran expects to appear in select races, including the V8 endurance events.
�Tom and I have been working together on this for several weeks," Skaife confirmed, "and it's disappointing that our negotiations were inaccurately reported just as we were reaching agreement in the best interests of Holden Racing Team.�
Holden chairman and MD Mark Reuss said that the outcome would help to keep HRT as a benchmark racing team, while ensuring Skaife retained involvement with the brands he had represented for so long.
Tom Walkinshaw and Mark Skaife have finally reached an agreement for the Briton to assume full ownership and control of the successful Holden Racing Team, following the multiple V8 Supercar champion's decision to retire at the end of the 2008 season.
The decision, which came after several weeks of discussion and remains subject to approval by V8 Supercars Australia, will be effective immediately but, contrary to initial speculation, Skaife will not be ousted by Walkinshaw assuming control.
Instead, the Scot - who has an extensive history in F1, touring and sportscars, as well as V8s - has requested that Skaife remain as an ambassador for the Holden Racing Team, in an effort to reflect his achievements for the team and the sport. In addition, Skaife will remain as a major ambassador for the Holden brand and its products.
While details of the agreement between the two prominent figures will remain confidential, no debt or other outstanding financial commitments will remain in relation to Skaife's team involvement.
Finalising the deal will leave Skaife, who has expressed an interest in exploring opportunities inside and outside of motorsport, free to concentrate on the final round of his full-time racing at Oran Park this weekend. Although he is calling time on a 21-year driving career, the veteran expects to appear in select races, including the V8 endurance events.
�Tom and I have been working together on this for several weeks," Skaife confirmed, "and it's disappointing that our negotiations were inaccurately reported just as we were reaching agreement in the best interests of Holden Racing Team.�
Holden chairman and MD Mark Reuss said that the outcome would help to keep HRT as a benchmark racing team, while ensuring Skaife retained involvement with the brands he had represented for so long.
#17
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Posted 02 December 2008 - 06:15 AM
It sounds like this partnership was doomed from the start.
Skaife now gives back the entire team to remove all debts.
Nice move Tom.
Skaife now gives back the entire team to remove all debts.
Nice move Tom.
#18
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Posted 02 December 2008 - 07:28 AM
The face of a truely trustworthy man!
#19
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Posted 02 December 2008 - 08:59 AM
apparently one of HRT's major sponsors hasn't paid up for 2 years. I wonder if anyone can guess the sponsor and the owner....
#20
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Posted 02 December 2008 - 09:27 AM
apparently one of HRT's major sponsors hasn't paid up for 2 years. I wonder if anyone can guess the sponsor and the owner....
Umm.. lets see..
Would that be HSV? and aren't they owed by a certain Scot??
You'd have thought he would have kissed him before bending him over the corporate table!!
#21
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Posted 02 December 2008 - 09:49 AM
yup, HSV is owned by Walkinshaw.... surprise surprise....
Who owns the licences?
Who owns the licences?
#22
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Posted 02 December 2008 - 09:51 AM
Walkinshaw owns it all now, Skaife sold the rest to pay his bill off
#23
_The Baron_
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Posted 02 December 2008 - 10:18 AM
Ha, Skaify is just unloading the baggage so he can be a lose cannon again.
He will sign up with another team shortly although possibly not as a driver but a manager of sorts.
Come on, what else does he know so well.
Regarding his character and how we all view him. He has done OK when you consider the crap TW and Holden have put him through to end up like this.
And no, I am not his biggest fan but there is always a reason for the way people are.
He will sign up with another team shortly although possibly not as a driver but a manager of sorts.
Come on, what else does he know so well.
Regarding his character and how we all view him. He has done OK when you consider the crap TW and Holden have put him through to end up like this.
And no, I am not his biggest fan but there is always a reason for the way people are.
#24
_chrome yella_
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Posted 02 December 2008 - 10:24 AM
well it looks like i will be baracking for a new team next year. any suggestions? not fraughd either.
#25
_crumpledoor_
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Posted 02 December 2008 - 01:32 PM
I do feel sorry for Skaife, but dont you think that before going into a venture like this or into business with someone like Walkinshaw you would do a little research?
Anyone else of the opinion that Tom Walkinshaw and Bob Jane, are, and could further destroy motorsport in this country? Both are money hungry, ruthless pricks, with no passion to keep motorsport running in this country unless there are plenty of $s in it for them. Yet I bet if you ever asked them the question, "where did it all begin?", they would both say they came from humble beginnings and started with nothing. How quickly they forget.
Anyone else of the opinion that Tom Walkinshaw and Bob Jane, are, and could further destroy motorsport in this country? Both are money hungry, ruthless pricks, with no passion to keep motorsport running in this country unless there are plenty of $s in it for them. Yet I bet if you ever asked them the question, "where did it all begin?", they would both say they came from humble beginnings and started with nothing. How quickly they forget.
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