V8 Supercars teams gain security

The financial security of V8 Supercars teams has been boosted by a new distribution model agreed at the annual general meeting of team owners on the Gold Coast yesterday.

V8 Supercars CEO James Warburton said the new deal would boost the finances of the teams, which have had inconsistent incomes from the sport in recent times.

"The shareholders have agreed a distribution model that work for the long term sustainability of the teams," Warburton told v8supercars.com.au.

"We have something in place that puts the economics into the teams. We are delighted the shareholders have moved to underline the sustainability of teams going forward."

Warburton also dismissed reports the shareholding structure of V8 Supercars was being shaken up.

V8 Supercars is majority owned by Archer Capital, with a 65 per cent share, while the team owners control the other 35 percent.

There have been reports that Archer is considering selling, or alternatively, wooing the teams to sell up their remaining share of the category.

"Absolutely wide of the mark," said Warburton.

Team owners have traditionally been paid dividends from the Racing Entitlement Contracts (RECs) that underpin each car on the grid.

But in the last few years reduced television income and the lesser ownership share of the teams - which had a 75 per cent share before Archer took control in 2011 - has meant that return has reduced to very little or zero.

It is understood the new Fox/Network 10 television deal combined with Archer taking a reduced income from the category will mean REC holders will start receiving substantial dividends again from this year, returning to almost historical highs despite their smaller shareholding.

The new structure also means the value of RECs should start appreciating again. In the past, RECs have changed hands for $1.5 million or more.