TEGA Rejects General Motors Bid For Holden Racing Team!
just got this from the V8 Supercars web page...
TEGA Rejects General Motors Bid For Holden Racing Team!
Touringcar Entrants Group Australia Pty Ltd (“TEGA”) today rejected the formal application by Holden Ltd to the change of control of the Holden Racing Team (“HRT”) to General Motors Australia Ltd.
Holden purchased the shares in TWR Australia, the company that operates HRT following the receivership of TWR International.
While rejecting the Holden application, TEGA has advised TWR Australia that it must find a new owner that will be suitable to the TEGA Board by no later than 1 June or risk the termination of the license that allows the team to compete in the V8 Supercar Championship Series.
“The agreements that TEGA holds with teams that compete in the Series provide the Board with an absolute discretion to withhold its consent to the sale or sub-licensing of racing entitlements to an entity controlled by a company which is a vehicle manufacturer” said TEGA Chairman Kelvin O’Reilly. “We have exercised that discretion.”
“The Board has been endeavouring to work through a number of issues with Holden since they advised us that they had purchased the shares in TWR Australia without applying for or receiving our consent” he said. “TEGA’s pre-emptive rights to purchase the licenses were also denied us through Holden’s purchase arrangements with the receivers of TWR International” said O’Reilly.
“Holden have stated that they intend to sell the licenses but at this time TEGA is not convinced that they are acting in a timely fashion suitable to us to rectify the situations in which they have placed themselves” said O’Reilly.
“The Board is of the view that this matter must now be resolved quickly for the benefit of V8 Supercar racing as a whole.”
Prior to being advised that Holden had purchased the shares in TWR Australia, the Board of TEGA had asked its investigative body – the TEGA Tribunal to conduct an investigation into possible breaches of the Ownership Restrictions contained within the Teams’ License Agreement.
“The TEGA Tribunal has commenced its investigation into the concerns that TWR Australia may have or have had simultaneous interests in HRT, K Mart Racing and Paul Weel Racing – a total of six (6) cars that compete in the Championship,” said O’Reilly.
“If the investigation reveals a breach of the 4 car provisions of the teams agreement, the racing entitlements of the teams are required to be suspended while the teams licenses are sold” he said.
Following sale of the licences, teams found to be in breach of the ownership restrictions will be prevented from competing in the V8 Supercar racing until such time as the Board enters into a new agreement with the team.
Currently the Board policy of TEGA and AVESCO would see the person/s or entities who are the legal and beneficial owner of a Teams’ License not re-admitted to V8 Supercar racing for a minimum period of two years.
There's no substitute for cubic inches!
Technically XWGT is correct, the Symbol operation is an 8 car one if you include the 2 JFR Konica cars running as Holden Young Lions.
Anybody taking bets on when the courtroom drama begins to take place??
I am glad TEGA is communicating with the world at large, hopefully the lengthy and heated threads here, at conrod, 10/10ths and anywhere else they were flamed up finally stirred them into action to tell the world what was going on.
I presume the franchise sale is an easy fix, as long as its not someone inside the GM group....
... the bigger issue remains the 6 car operation and the walls around them... who among us thinks that TEGA has the bottle to expel the top 3 Holden teams from the series, and sell their franchises if/when it is proven they are colluding, against the provisions of their Teams Agreement.
Ugly times ahead, and this will be replayed on the race coverage ad infinitum :(
All is not as it appears. Trust no-one
100% behind TEGA & their deadline; hope the UN Security Council does not get involved!!
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Well Rob Mackenzie has already made a veiled 'non-threat' to walk away or at least 're-assess' if they let Mitsubishi in, how long do you think it will be before he dummy spits over this and Holden do their usual trick of lawyering up and threatening to go to court to challenge the rulebook this time if TEGA don't back down.
As much as they wish they weren't - because I believe for once that TEGA is finally in the right - they must be a toothless tiger when faced with the possiblilty of loosing one of only 2 manufacturers in the sport.
We already have Formula Ford, so if Holden call their bluff and withdraw support because of a ban for their teams, it's all over.
Sad - and we've seen it coming for soooooo long. Pity TEGA didn't have the balls to stop it when it all started a couple of years ago.
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I think a MAJOR shakeup would do the whole competition a world of good. Hopefully TEGA can keep their newly-grown set of testicles rather than let them shrivel up in the light of a comeback from HRT/Holden...
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