New CEO For V8Supercar???

[GTRMagic]

A former #10 executive in the running?

Story Here

Where to for Mr Malone? On his Pat...?

[GTRMagic]

Mr Stensholt likes to write about V8Supercar it seems..

Originally Posted by AFR 19/4/13 P8,News

V8Supercars wants Warburton at the controls
By JOHN STENSHOLT

Former Network Ten chief executive James Warburton has been approached to take over as chief executive of the V8 Supercars motor racing circuit.

It is believed Mr Warburton - who was sacked by Ten in February - is being lined up as CEO by the sport's majority owner, private equity firm Archer Capital. If the approach is successful, Mr Warburton would take over from current CEO David Maline, a former chief executive of Fox Sports Australia.

It is understood Mr Warburton is being pursued by Archer due to his free-to-air television experience. Mr Warburton was a highly regarded sales executove at Seven West Media before defecting to Ten last year. It is understood Archer believes the sport needs to be reinvigorated with new management.

Mr Warburton still has a hurdle to cross if he accepts the job in the form of a non-compete clause as part of his termination settlement from Ten, which replaced him with former News Ltd executive Hamish McLennan

Mr Malone has been V8 Supercars chief executive since the beginning of 2012, after an 11-year stint as head of Fox Sports. But under his leadership V8 suffered a blow when it was forced to sign a new broadcast deal with Seven earlier this year at a price that delivers about $10million less cash up front for the car racing circuit than the previous deal with Seven, Telstra and FoxSports.

Mr Warburton's appointment would be the second major executive change in the sport since Archer paid Sports & Entertainment Ltd $180 million for a 60 percent stake in May 2011. The racing team owners hold most of the remaining stake.

Last September, long time executive chairman of V8, Tony Cochrane, stepped down after a disagreement with Archer Capital over negotiations over broadcast rights.

As ever, quoted in full here for the purposes of review & comment only.

Interesting stuff about a change already, and why Mr Cochrane may have left the building...

[eduardo1]

So you choose the guy who is unpopular at C7 for breaking a contract and got sacked by C10 - your only two potential suitors for FTA TV rights. Odd.

Speedcafe has a more in-depth story about the raft of changes here.

It needs more than a TV salesman to run the sport. It needs a genuine sporting administrator and then contract a team to manage the sale of the TV rights.

[GTRMagic]

Originally Posted by eduardo1

So you choose the guy who is unpopular at C7 for breaking a contract and got sacked by C10 - your only two potential suitors for FTA TV rights. Odd.

Speedcafe has a more in-depth story about the raft of changes here.

It needs more than a TV salesman to run the sport. It needs a genuine sporting administrator and then contract a team to manage the sale of the TV rights.

The V8SA mob did contract the teev deal squad, the mob at Greenhills did the work... and were apparently rendered ineffectual by a disgruntled #7..

Looks like the corporate structure has changed at V8SA quite a bit in the last couple of years. Look at all those people whose jobs Mr Cochrane arguably largely did..

[D.R.T.]

Originally Posted by GTRMagic

Looks like the corporate structure has changed at V8SA quite a bit in the last couple of years. Look at all those people whose jobs Mr Cochrane arguably largely did..

Or are they the ones now dealing with the repercussions of the job that TC did?

[GTRMagic]

This one says.. "...We Have No Idea What You Are Talking About..."

While only a few hours later we see.. "...David Malone To Stand Down..."



Ahhh.. our good friends at the Fin Review, shaping the debate.. and the transparency.. of V8Supercar.

Again.

[peckstar]

its interesting.

in just over ten years TC turned it into a mega sport

Archer seem to be doing their best to run it into the ground in half that time

[D.R.T.]

Originally Posted by peckstar

its interesting.

in just over ten years TC turned it into a mega sport

Archer seem to be doing their best to run it into the ground in half that time

Haha - yeah thats exactly it

Archer have had the time to run it into the ground. These outcomes are the results of the mistakes of the past. I reckon there is more to come with the NSW Government still to make comment on the future of the Homebush race, Qld Government on Surfers etc

[peckstar]

Originally Posted by D.R.T.

Haha - yeah thats exactly it

Archer have had the time to run it into the ground. These outcomes are the results of the mistakes of the past. I reckon there is more to come with the NSW Government still to make comment on the future of the Homebush race, Qld Government on Surfers etc

Archer have had two years. They alone were responsible for the tv package. had 18 months to get one in place, they couldn't.

Had 18 months to line up new sponsors, they havent

[GTRMagic]

Originally Posted by peckstar

Archer have had two years. They alone were responsible for the tv package. had 18 months to get one in place, they couldn't.

Had 18 months to line up new sponsors, they havent

The article from Speedcafe is an interesting one, in plotting the timeline of the various CEO's of the V8Supercar business.

The real problem in finding a specialist in a single area of focus, such as the teev market, is that they are solely focused on that area, as being an area of strength (and likely within their comfort zone)...

Which ignores the 10 million other things a CEO of a sporting category has to look after..

.. like engaging the conversations with the stakeholders, the owners, the sponsors, the corporates, the car makers, the event holders, the ticketing companies, the governments, the media, the fans... and anyone else with an interest and an influence on the successful outcome of the category's activities.

If a person is brought in with a single focus, and these other conversations arent covered off by them, then the reasonable expectation is that a suitably qualified and capable and responsible functional head is in place to engage their stakeholders, to articulate the vision, to build a positive ongoing working relationship with their nominated playmates...

It is arguable that the board of V8SC got it wrong with the hiring of Mr Malone. It appears, from the outside looking in, that the teev deal was the sole focus of his world... to the extent that the other things mentioned above were not given critical priority.

Which means events like the Gold Coast Indy or the Homebush Street Race or a couple of the overseas events, and indeed corporate sponsors such as XXXX, such as Telstra and the like, may not each have been given the absolute priority at the very same time... such that the lack of a positive conversation with these stakeholders, has them using the media in some cases to paint the relationships with V8Supercar in a very poor light... and at some risk of not continuing.. depending who you believe.

It might be unfair to lay that all on Mr Malone, we dont quite know within what boundaries he was allowed to operate. But the world in each of the above areas is arguably at risk, or already detonated.. and what with a teev deal that was supposed to be the functional specialty, and the focus, not landing anywhere near acceptably for the teams or for the private equity owners, something had to give.

Teams are hurting at a lack of REC income, which has affected their competitiveness, or choice of driver or other compromises. Archer Capital similarly impacted because all those dollars invested have to earn a return somehow.

What might give some comfort is the story in the Speedcafe article, where they mention that a different operating structure is being put into place to deal with many of the issues above. And that a number of incumbents have either left the business, or were being invited to.. for reasons not always made immediately clear. Again, it all depends on the latitude, guidance, and the quality of the vision they were imparted with, as to their relative success or failure.

As an external viewer, what we can know is that there appears now to be a genuine lack of an entrepreneurial spirit at the head of the V8SC business. Someone who can take the assets he/she has at his/her disposal, to have a genuine view as to their ultimate capability, to offer a milestoned roadmap to get to the end position.

Mr Cochrane was fortunate in that in many of the things that he did, there was nothing in place, so anything done was arguably better than what was there before. But to some extent this too sells him short. The Adelaide Clipsal event is an example of a true partnership between government, sponsors, teams, government, V8SC, government... and is something of a business model that could and should be used in other situations to measure success.

Its hard to do that when the sole focus is a teev deal.

A change was necessary. Archer Capital & the teams did it. Lets hope their choice of a replacement achieves a more favourable outcome for all concerned. And they dont waste any more conversations...

[rik]

Originally Posted by eduardo1

So you choose the guy who is unpopular at C7 for breaking a contract and got sacked by C10 - your only two potential suitors for FTA TV rights. Odd.

It needs more than a TV salesman to run the sport. It needs a genuine sporting administrator and then contract a team to manage the sale of the TV rights.

That's sums it up perfectly....

The old model had Erskine doing the TV deals, not the CEO. Huge mistake by Archer trying to put it all on one guy.

I also don't know why they bother with lame comments like "Malone will remain as a director of V8 Supercars to assist the business with its strategy". They said the same stuff when Whitaker and TC got the chop!

[formerf1champ]

Originally Posted by GTRMagic

It is arguable that the board of V8SC got it wrong with the hiring of Mr Malone.

Got it wrong when Cochrane was hired in the first place.

Posting to support D.R.T. He's on the money so far.

Originally Posted by GTRMagic

Mr Cochrane was fortunate

Indeed he was...Try hard scumbag.

Originally Posted by GTRMagic

in that in many of the things that he did, there was nothing in place, so anything done was arguably better than what was there before.

Yep, but only arguably. It puts it in perspective.

Originally Posted by GTRMagic

But to some extent this too sells him short.

Too high?

Originally Posted by GTRMagic

The Adelaide Clipsal event is an example of a true partnership between government, sponsors, teams, government, V8SC, government... and is something of a business model that could and should be used in other situations to measure success.

Are you saying Adelaide could be replicated? Because it can't.

[peckstar]

Originally Posted by formerf1champ

Got it wrong when Cochrane was hired in the first place.

Posting to support D.R.T. He's on the money so far.

Indeed he was...Try hard scumbag.

Yep, but only arguably. It puts it in perspective.

Too high?

Are you saying Adelaide could be replicated? Because it can't.

your a bit light on with any facts. I'm reading a level of bitterness and not much sustenance in your comments

[rik]

Originally Posted by GTRMagic

A change was necessary. Archer Capital & the teams did it. Lets hope their choice of a replacement achieves a more favourable outcome for all concerned. And they dont waste any more conversations...

How much say did the teams really have in chopping Malone?

Another big question is whether they are going to appoint a new chairman or not? If I were a team owner, I'd want someone independent in there ASAP!

[GTRMagic]

Originally Posted by rik

How much say did the teams really have in chopping Malone?

Another big question is whether they are going to appoint a new chairman or not? If I were a team owner, I'd want someone independent in there ASAP!

I would imagine quite a bit... there are a number of teams said to be less than impressed at the 2013 REC income stream, and indeed the flip flop teev rights deal that has them on a different channel depending on the time of day.

Not sure a Chairman is what is required at this point. A leader, who has a vision of shoring up the existing deals, maintaining them at at least their current commitment for now and beyond... of finding marketing partners for title sponsorships at rounds, for the category naming rights as a whole, for the teev coverage.

Then worry about the oversight of the minutia.. there is a board in place, they should be capable to running the boat...

[porsche91722]

There's no doubt that the sport reached it's peak in popularity during the tenure of Tony Cochrane. He obviously polarized people, but there is no doubt that the guy was good at what he did. He could sell ice to the Eskimos.
I think that V8SC's, due to Cochrane's salesman approach to running the business, over achieved in it's position in the Australian sporting landscape. They gave the golden goose steroids in the hope of reaping higher ratings and TV contracts etc and now, together with the ever increasing problem for FTA TV networks struggling to make profits, find themselves scratching their heads trying to find another TC. I've long held the belief, that there just ain't that many good sporting administrators around! Simply trying to poach another guy, who has had success in another field doesn't always work. Like racing drivers, he may have been in the right place at the right time and a move doesn't always prove successful, as we have seen. Finding the right person for the CEO position might be as simple as looking inward, and choosing one of their own.
Maybe, the sport might settle into it's position, somewhere behind the major footy codes and accept it's place in the natural order of popularity instead of trying to be the biggest and the best. I know from Archers perspective, that may not be acceptable, but they made their bed.

[peckstar]

Originally Posted by porsche91722

There's no doubt that the sport reached it's peak in popularity during the tenure of Tony Cochrane. He obviously polarized people, but there is no doubt that the guy was good at what he did. He could sell ice to the Eskimos.
I think that V8SC's, due to Cochrane's salesman approach to running the business, over achieved in it's position in the Australian sporting landscape. They gave the golden goose steroids in the hope of reaping higher ratings and TV contracts etc and now, together with the ever increasing problem for FTA TV networks struggling to make profits, find themselves scratching their heads trying to find another TC. I've long held the belief, that there just ain't that many good sporting administrators around! Simply trying to poach another guy, who has had success in another field doesn't always work. Like racing drivers, he may have been in the right place at the right time and a move doesn't always prove successful, as we have seen. Finding the right person for the CEO position might be as simple as looking inward, and choosing one of their own.
Maybe, the sport might settle into it's position, somewhere behind the major footy codes and accept it's place in the natural order of popularity instead of trying to be the biggest and the best. I know from Archers perspective, that may not be acceptable, but they made their bed.

thats pretty much how i see it also.

[D.R.T.]

Originally Posted by peckstar

Archer have had two years. They alone were responsible for the tv package. had 18 months to get one in place, they couldn't.

Had 18 months to line up new sponsors, they havent

Do you not think that this may relate to the fact that these partners (Channel 7, Telstra, XXXX) signed up to deals under Cochrane which didnt live up to the promises.

Using Channel 7 - they paid x amount back in 2007 (many people commented that they had over paid) and wanted results which it obviously didnt get.

When Archer went to sell the new rights they faced this legacy left by your hero TC - no other tv stations were interested in the product and 7 played them (as they should).

Its the same for the governments around the street races - V8SC fed them so much BS in promises and expected results which havent occurred and now Archer living with the

Its no surprise that TC wasnt in place when it came to any of these deals being renewed - its fair to say he knew what was coming.

TC could definitely sell ice to the Eskimo's - this however only lasts so long before it melts.

[GTRMagic]

But did they not 'live up to the promises' because there was not a proper and sufficient ongoing dialogue between V8SC and the stakeholders that were investing their time, money and brand into the series?

Its arguably simplistic to call Mr Cochrane out as the root of all evil, when in fact he was executive chairman, had a CEO, and an operating structure around him as well.

Build the right structure, fill it with the right people, engage the stakeholders... and we can get a race going on the moon!

[peckstar]

Originally Posted by D.R.T.

Do you not think that this may relate to the fact that these partners (Channel 7, Telstra, XXXX) signed up to deals under Cochrane which didnt live up to the promises.

Using Channel 7 - they paid x amount back in 2007 (many people commented that they had over paid) and wanted results which it obviously didnt get.

When Archer went to sell the new rights they faced this legacy left by your hero TC - no other tv stations were interested in the product and 7 played them (as they should).

Its the same for the governments around the street races - V8SC fed them so much BS in promises and expected results which havent occurred and now Archer living with the

Its no surprise that TC wasnt in place when it came to any of these deals being renewed - its fair to say he knew what was coming.

TC could definitely sell ice to the Eskimo's - this however only lasts so long before it melts.

No i dont think that at all. I think archer have done a woeful job.

Your suggesting that all this smart business people at Channel 7, XXXX and Telstra (who had previously renewed their sponsorship) lack any business intelligence.

Shame on you.

[D.R.T.]

Originally Posted by peckstar

No i dont think that at all. I think archer have done a woeful job.

Your suggesting that all this smart business people at Channel 7, XXXX and Telstra (who had previously renewed their sponsorship) lack any business intelligence.

Shame on you.

Haha - so its all Archer. Your keen on giving them plenty of credit

Nothing to do with the shortcomings in the product - tv ratings, attendances etc not meeting projections during the last 5 years?

Under V8SC things were over sold in the short term and under delivered in the long term.

The seeds were sown many many years ago not under Archer's reign.

[peckstar]

Originally Posted by D.R.T.

Haha - so its all Archer. Your keen on giving them plenty of credit

Nothing to do with the shortcomings in the product - tv ratings, attendances etc not meeting projections during the last 5 years?

Under V8SC things were over sold in the short term and under delivered in the long term.

The seeds were sown many many years ago not under Archer's reign.

Make up your mind, are Archer smart business people or not?

You tell me Archer are smart business people, but then you are saying they didnt observe these "seeds that were sown many years ago", even though for the last ten years you have been talking about it. so you are saying they are not smart.

Maybe they are smart at recognising the potential of a business, but not smart at running one. This seems to be the case

[dirtymacca]

Originally Posted by peckstar

Make up your mind, are Archer smart business people or not?

You tell me Archer are smart business people, but then you are saying they didnt observe these "seeds that were sown many years ago", even though for the last ten years you have been talking about it. so you are saying they are not smart.

Maybe they are smart at recognising the potential of a business, but not smart at running one. This seems to be the case

I have to agree.... Archer got sold a lemon... Cochrane has even tacken a hit when he sold part of his stake.....
It is going to take more than a good CEO or TV deal to get back the value that Archer have lost to date.

The facts are:
Archer Capital paid $180 Million for 60%, valuing the company at $300 Million. - May 2011
Cochrane sells 2% for $2 Million, valuing the company at $100 Million - Less than 2 years later!


SOMETHING DOESN'T SMELL RIGHT!

[peckstar]

Originally Posted by dirtymacca

I have to agree.... Archer got sold a lemon... Cochrane has even tacken a hit when he sold part of his stake.....
It is going to take more than a good CEO or TV deal to get back the value that Archer have lost to date.

The facts are:
Archer Capital paid $180 Million for 60%, valuing the company at $300 Million. - May 2011
Cochrane sells 2% for $2 Million, valuing the company at $100 Million - Less than 2 years later!


SOMETHING DOESN'T SMELL RIGHT!

two years to turn the series into a lemon. Thats a good effort by Archer

[D.R.T.]

Originally Posted by peckstar

Make up your mind, are Archer smart business people or not?

I didnt proclaim them to be smart business people or not.

All I am saying is that it is impossible to make the impact you are suggesting within the 2 years of Archer's arrival.

There was never any sustainability around the deals V8SA signed under Cochrane.

The New Zealand races are a prime example of this - or are you suggesting this was also Archer's doing?