Asian Motor Sports

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 his business empire.

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 $3.6million.

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.

UPDATE: A joint statement has been released by Tom Walkinshaw and Mark Skaife about the ownership and future running of the Holden Racing Team.

Tom Walkinshaw and Mark Skaife today reached agreement after several weeks of discussions on arrangements for Walkinshaw to assume full ownership and running of the Holden Racing Team.

The decision, which is subject to approval by V8 Supercars Australia, is effective immediately.

Walkinshaw has requested Skaife to remain as an ambassador for the Holden Racing Team, reflecting 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 the details of the agreement will remain confidential, no debt or other outstanding financial commitments will remain in relation to Skaife’s team involvement.

It follows Skaife’s announcement on 29 October that he intended to retire at the end of the 2008 season to explore opportunities inside and outside of motor racing.

The decision will leave Skaife free to concentrate on his final round of full-time racing at Oran Park in Sydney this weekend after a 21-year driving career.

Walkinshaw today said that he welcomed the resolution and that he and Skaife looked forward to an exciting future for HRT.

Holden Chairman and Managing Director, Mark Reuss, said 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.

Skaife said: “Tom and I have been working together on this for several weeks. It’s disappointing that our negotiations were inaccurately reported just as we were reaching agreement in the best interests of Holden Racing Team.”

Skaife’s manager, Craig Kelly had this to say to eNews. “There are a number of serious inaccuracies within the story published today which are damaging to Mark, his family and those involved with the team.”

“To even suggest that Mark lost his home is unthinkable. Having recently had another child with his wife Toni, they sold their previous home some months ago before property prices dropped, and are renting a house until they find the right property to buy for their recently extended family.

“As far as his motor sport dealings are concerned, this is a private business matter and Mark is working closely with all parties involved, including his business partner Tom Walkinshaw who he co-owns the Holden Racing Team with.

“Mark and Tom are continuing discussions in relation to the future of the Holden Racing Team, with the best interests of the Team at the forefront of these discussions.

“He is not prepared to make any further public comment about his business arrangements at this time and is focusing on finishing his driving career on a high at Oran Park this weekend.”

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