Craig Hutchison’s embattled media and sports business has sold NBL franchise the Perth Wildcats for $40 million, easing pressure from debt woes that previously threatened the company.

The Hutchison-led, publicly listed Sports Entertainment Group (SEG) has agreed to sell 90 per cent of the Wildcats to MT Arena Capital Investment Pty Ltd, a company associated with West Australian cybersecurity entrepreneur Mark Arena, who is described as a lifelong Wildcats fan.

SEG confirmed the sale agreement to the Australian Stock Exchange on Thursday morning.

The binding agreement includes a staged sale over two years at an enterprise value of $40 million, with $21 million for a 52.5 per cent stake to be paid by October 30 this year, the statement said.

It comes just three years after Hutchison’s group bought the 10-time NBL champions for $8.5 million in 2021.

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The deal also comes as SEG has been under pressure, with its auditors last year issuing a warning over its ability to survive should it not find cash to bring down its borrowings.

In February, SEG agreed to a new three-year extension of its debt facility with the Commonwealth Bank, replacing a previous deadline to repay the bank by August. Fortunes have improved for the company since then, with its share price up 30 per cent across the past six months.

Hutchison, a journalist and media executive, is the ASX-listed company’s second-largest shareholder, as well as its CEO, managing director and leading on-air talent.