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MOTOR racing great Mark Skaife is living in a rented flat and facing financial ruin after a series of deals has left him owing millions.
The four-time Bathurst champion will end his 25-year career at Sydney's Oran Park circuit on Sunday.
But instead of finishing at the top, the champion has sold his Toorak mansion and moved into a nearby flat with his wife and children amid a bitter business dispute.
A Herald Sun investigation has uncovered details of business transactions that have left Skaife's firm -Skaife Sports - owing Scottish racing magnate Tom Walkinshaw a staggering $3.6 million.
Had he not faced such immense business pressures as the owner of Holden Racing Team he may not have quit as a driver at the age of 42.
Documents from the Australian Securities and Investments Commission reveal the Holden great risks losing all his Skaife Sports assets, including one of the country's greatest sporting brands, HRT, should he default on the multi-million-dollar loan.
"It's a sad situation," said a source close to Skaife. "He doesn't deserve this."
Skaife sold his family home in Toorak last year at about the time he traded "debt for equity" with one of Walkinshaw's Australian-based companies, Real Racing.
Walkinshaw - a former touring car driver and former owner of HRT - acquired 50 per cent of Skaife Sport in September last year when he obtained 1.75 million shares in the company registered to Skaife in Erina, NSW.
But he has denied his financial arrangements with Skaife led to the champion driver quitting.
Walkinshaw said at the weekend he had no issue with Skaife and believed he just wanted to step aside for a younger competitor.
"Skaife retired," Walkinshaw said. "He announced his retirement six weeks ago."
The Herald Sun has been told the deal was struck to relieve debt owed to Walkinshaw Performance through Walkinshaw's interest in Holden Motorsport.
Walkinshaw Performance, through Holden Motor Sport, is contracted to provide race team services to HRT, including engines, engineering and paint.
"Skaife Sports had a services agreement with Holden Motorsport when Skaife bought HRT for a rumoured $3.5 million when Walkinshaw went bankrupt in 2003," said a source close to Skaife.
"Everything was fine until Walkinshaw took control of Holden Motorsport in 2006."
It's believed prices rose under Walkinshaw, contributing to the Skaife Sports debt, but Walkinshaw denied there were price rises or hidden penalties in the contracts.
"That's a complete load of rubbish," he said.
"The prices Skaife was charged were exactly the same prices as Holden were charging before.
"He signed the contracts and all the renewal of the contracts. It's not our fault that one of his major sponsors has defaulted on him."
Skaife has been putting his wage as one of the country's most popular V8 Supercars drivers into Skaife Sports as he tries to service the debt and hold on to the race team.
The four-time Bathurst champion will end his 25-year career at Sydney's Oran Park circuit on Sunday.
But instead of finishing at the top, the champion has sold his Toorak mansion and moved into a nearby flat with his wife and children amid a bitter business dispute.
A Herald Sun investigation has uncovered details of business transactions that have left Skaife's firm -Skaife Sports - owing Scottish racing magnate Tom Walkinshaw a staggering $3.6 million.
Had he not faced such immense business pressures as the owner of Holden Racing Team he may not have quit as a driver at the age of 42.
Documents from the Australian Securities and Investments Commission reveal the Holden great risks losing all his Skaife Sports assets, including one of the country's greatest sporting brands, HRT, should he default on the multi-million-dollar loan.
"It's a sad situation," said a source close to Skaife. "He doesn't deserve this."
Skaife sold his family home in Toorak last year at about the time he traded "debt for equity" with one of Walkinshaw's Australian-based companies, Real Racing.
Walkinshaw - a former touring car driver and former owner of HRT - acquired 50 per cent of Skaife Sport in September last year when he obtained 1.75 million shares in the company registered to Skaife in Erina, NSW.
But he has denied his financial arrangements with Skaife led to the champion driver quitting.
Walkinshaw said at the weekend he had no issue with Skaife and believed he just wanted to step aside for a younger competitor.
"Skaife retired," Walkinshaw said. "He announced his retirement six weeks ago."
The Herald Sun has been told the deal was struck to relieve debt owed to Walkinshaw Performance through Walkinshaw's interest in Holden Motorsport.
Walkinshaw Performance, through Holden Motor Sport, is contracted to provide race team services to HRT, including engines, engineering and paint.
"Skaife Sports had a services agreement with Holden Motorsport when Skaife bought HRT for a rumoured $3.5 million when Walkinshaw went bankrupt in 2003," said a source close to Skaife.
"Everything was fine until Walkinshaw took control of Holden Motorsport in 2006."
It's believed prices rose under Walkinshaw, contributing to the Skaife Sports debt, but Walkinshaw denied there were price rises or hidden penalties in the contracts.
"That's a complete load of rubbish," he said.
"The prices Skaife was charged were exactly the same prices as Holden were charging before.
"He signed the contracts and all the renewal of the contracts. It's not our fault that one of his major sponsors has defaulted on him."
Skaife has been putting his wage as one of the country's most popular V8 Supercars drivers into Skaife Sports as he tries to service the debt and hold on to the race team.
