After crowdsourcing their rule book, TTXGP has set another unprecedented move in racing by allowing teams to own up to 70% of the series itself. The union (TEO), as TTXGP calls it, will be transfered stock in in TTXGP Ltd, the company behind the TTXGP series. Teams then who comprise of the TEO membership will be award individual “units” of TEO based on the number of races the teams enter and their position in the standings.
For 2010, 30% of TTXGP Ltd. will be transfered to TEO, and the goal is to have 70% of the company up for grabs by 2020. TEO will have a considerable amount of sway in how TTXGP is run, thus creating a more open atmosphere for the direction of the series. The move to give teams a vested interest like this also serves to encourage more participation in the series. More after the jump.
TEO, which comes from the URL of the TTXGP Trust: trust.egrandprix.org, is described by TTXGP as the following:
TRUST.EGRANDPRIX.ORG (“TEO”) is a co-operative body open to all participants of the TTXGP World Series. It links together Teams, riders and Series owner into a single platform of shared goals and rewards.
TEO is a vehicle through which the co-operation will be governed and is connected to TTXGP Limited.
It is anticipated that in 2010, 30% of the equity for TTXGP Limited is transferred into TEO. By 2020, it is the intention of TTXGP Limited to transfer further equity of TTXGP Limited to TEO to total 70% of the equity being transferred over this period.
The TEO shall own the transferred equity and issues “Units” to members of TEO however equity of TTXGP shares is never to be transferred, securitised, or traded by TEO.
TEO shall be an independent entity with its own corporate governance and elected officers. TTXGP and TEO shall be exclusive partners with each other. It is anticipated that TEO shall also have rights over material changes to TTXGP activities or structures that might affect TEO. Voting rights attached to the shares of TTXGP that are anticipated to be transferred would be scoped prior to transfer to TEO in relation to such decisions.
The Units cannot be purchased or traded, but they do have value. Units are accumulated by GRIDs. GRIDs are owned by Teams.
Units can only be earned by participation in the TTXGP World Series. No registration is necessary; all teams in the TTXGP are automatically enrolled and awarded Units as per the guide.
The structure of the TTXGP Trust is fair complicated, with teams earning “units” over time and as they do well in races. However these units also expire after six years, which means there will be constant revolving door of ownership in TEO. Sitting on the TEO’s Board of Directors will be two TTXGP representatives, with another three seats open to directors voted in by the TEO membership. It’s certainly an interesting and unprecedented move by TTXGP and its investors. Could this be the future of racing, only time will tell.