The Perth Wildcats look set to be sold for the second time in three years.
Current owners, Sports Entertainment Group Limited confirmed today it had received a non-binding offer from investment firm MT Arena Capital Investments Pty Ltd. The firm, headed by West Australian cybersecurity entrepreneur Mark Arena, who has been a rabid Perth Wildcats supporter since childhood.
The company proposes 90% of the club in a staged acquisition over two years at a $40 million enterprise valuation.
The Perth Wildcats, via social media, have confirmed this earlier today.
Perth Wildcats can confirm that Sports Entertainment Group Limited (SEG) has received a non-binding indicative offer in relation to the Perth Wildcats Basketball Pty Ltd (Wildcats) of which SEG is a majority shareholder.https://t.co/di1vyjV3NI
— Perth Wildcats (@PerthWildcats) May 30, 2024
The recent valuation would see SEN acquire and’ flip’ the Wildcats for almost five times the amount they paid, less than three years ago.
SEN, helmed by media personality Craig Hutchison, originally purchased the team from previous owner Jack Bendat in 2021 for $8.5million.
This will also be the second partial sale of the club in 2024 after Hutchison sold off part of the Perth Wildcats to cover some of the SEN radio stations’ debt. Hutchison’s company owed $28 million to the Commonwealth Bank at the time. This saw SEN raise a total of $1.5 million in February for a minority share in its sporting team’s franchises, worth around 4%.
The value of NBL clubs has skyrocketed in recent years, with Matthew Pringle, owner of popular honey and skincare brand Manuka Doctor, recently acquiring a three per cent stake in the New Zealand Breakers.
Melbourne United was recently valued at $40 million when NBL owner Larry Kestelman sold a 10 percent stake in the club for $4 million. The impending sale of the recently crowned NBL champion Tasmania JackJumpers currently has a valuation of $32 million.
SEG’s statement includes the fact that the offer is still subject to approval by the National Basketball League and may not materialize.
Writers Note: However, the NBL has already published an article on the offer, so it seems to have their backing thus far.
Dan Boyce is a die-hard Sydney Kings fan who grew up in Melbourne during the roaring 90's of Australian Basketball and spent far too much time collecting Futera NBL Basketball cards.
