Sports Capital to Acquire 80% Stake in Skip Barber Racing School
9 February 1999
Sports Capital Partners to Acquire 80 Percent Stake in Skip Barber Racing School
NEW YORK, N.Y. and LAKEVILLE, Conn.--Feb. 9, 1999---- Founder Skip Barber Will Retain an Ownership Interest
and Continue to Serve as Chief Executive Officer --
IMG/Chase Sports Capital Partners, of New York, today announced a definitive agreement under which it will acquire an 80 percent ownership interest in Skip Barber Racing School, Inc., of Lakeville, Conn., the world's leading trainer of professional and amateur race car drivers. The transaction value is expected to be between $25 million and $35 million, contingent upon the achievement of certain performance incentives.
Sports Capital Partners, formed in February 1998 by International Management Group, Chase Capital Partners and Managing Partner David S. Moross, and Skip Barber Racing School are both privately held. The transaction, which is subject to regulatory approval and customary closing conditions, is expected to be completed in approximately 30 days.
Skip Barber, a Harvard graduate and former race car driver who founded Skip Barber Racing School in 1975, who will retain an ownership interest in the company, and who will continue to serve as its chief executive officer, said: "We are very pleased to team up with David Moross and his team of highly accomplished, savvy, sports-minded investors. David and his colleagues at Sports Capital Partners clearly appreciate the unique global enterprise that Skip Barber Racing School is today. They share our vision of what SBRS can become. And, most important, they have the financial resources and determination to help us make that vision a reality. I look forward to working closely with David and IMG for many years to come."
Mr. Moross said: "Skip Barber Racing School, under the capable leadership of Mr. Barber, has established itself as the leader in several key segments of the performance driver training industry.
"It trains more professional racing drivers than any other company in the world. It operates race training courses and auto racing series for professionals and serious amateurs alike. It also operates corporate, manufacturer, sponsorship and merchandising/licensing programs that are industry leaders in their own right.
"With the financial resources of Sports Capital Partners, the new business opportunities IMG can help generate, and Skip's continued leadership, we believe Skip Barber Racing School has tremendous growth and investment potential."
With nearly 400 employees, a fleet of 225 vehicles, and 30 race tracks around the United States for a broad range of CART and Indy type vehicles and skill levels, Skip Barber Racing School has provided training for one-fourth of the current field of NASCAR Winston Cup drivers and one-third of the field in the Indy 500 for the past decade. Current and former clients include professional drivers such as Jeff Gordon (NASCAR Winston Cup) and Michael Andretti (CART), and well-known celebrities such as Jerry Seinfeld and Paul Newman.
Skip Barber Racing School operations include:
-- The world's largest racing and driving school, with a customer
base of 270,000;
-- The Formula Dodge Race Series, the largest open-wheel amateur
championship in North America;
-- The Barber Dodge Pro Series, an internationally recognized and
televised professional race series that has become the premier
open-wheel development series in the country;
-- The Skip Barber Scholarship Ladder, the most comprehensive
scholarship system in the United States that awards $1 million
annually and helps drivers progress from Karting to the CART
FedEx Championship Series;
-- The Skip Barber Racing School Corporate Group, which provides
custom tailored programs for corporate clients' sales,
motivational, educational and entertainment needs; and
-- The Skip Barber Racing Special Projects Group, the world's
largest automotive training and demonstration division. The
Special Projects Group designs and implements turnkey events for
nearly every major automobile manufacturer in the world.
Auto racing is the fastest-growing major U.S. sport, and also has substantial international appeal. In 1997, for example, CART races were seen on television by more than one billion viewers in 188 countries.
The sports industry occupies a significant role in the world economy. In the United States alone, according to a study by the Georgia Institute of Technology, the "Gross Domestic Sports Product" for 1995 was approximately $152 billion, ranking it eleventh among industry groups for its contribution to the overall Gross Domestic Product.
Sports Capital Partners is a private investment fund established to provide investors with significant long-term capital appreciation by investing globally in sports and related businesses. The firm is headquartered in New York at 65 East 55th Street, 18th floor, New York, NY 10022. David Moross telephone: (212) 634-3399; fax: (212) 634-3346.