imaufo
25-03-2004, 13:39
ATTHERACES SET TO END UK COVERAGE
By Anita Chambers, PA Sport
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Attheraces is set to stop broadcasting British racing in five days' time after failing to agree new media rights deals with 49 of the country's 59 racecourses.
The £307 million deal will terminate at midnight on Monday and, although the channel has been trying to agree new deals with the tracks, officials do not think a new contract will be sorted out in time.
A statement from attheraces said: "Although discussions are still ongoing with all parties, attheraces believes there is little chance of achieving a successful outcome before Monday's deadline.
"Although negotiations with the 49 tracks continue, without new contracts in place on March 30, attheraces will cease the broadcast of live UK horse racing.".
The statement continued: "In this event, attheraces hopes to continue with its evening broadcast of the popular US racing programme, albeit a cut-down version.
"Attheraces intends to remain in negotiations with all parties to try and secure a new agreement even if the broadcast of UK racing ceases.
"In the meantime, attheraces hopes to be able to continue to license UK racing for broadcast in betting offices and other overseas customers and has today written to the courses requesting a one-month contract relating to overseas rights.
"Attheraces is fully aware of the value that these rights bring the racing industry in this country and does not wish the ongoing media rights discussions to jeopardise UK racing's standing in the international market.
"Attheraces also intends to continue to operate its betting business, which has grown rapidly over the last year and recently achieved record turnover during the three days of the Cheltenham Festival.
"All account holders with Bet attheraces will continue to be able to bet as normal on the phone and via the internet after March 29 and will be unaffected by the protracted media rights negotiations. All customer account balances are protected."
The 10-year deal, which was signed by attheraces in June 2001, is ending after a get-out clause was triggered following a fall in the overall gross-profit margin recorded by the Tote.
The broadcaster said that betting into the Tote's pools has "always been crucial to attheraces' bottom line".
In October, attheraces served a statutory 90-day notice on the Racecourse Association to terminate the contract, and further discussions were then held between the two, but no agreement was reached.
A further 60-day termination notice was then issued, with that period ending on Monday.
Ian Hogg, managing director of attheraces, underlined that negotiations have been on-going and he believes that attheraces remains the best option for digital coverage in the future.
He said: "We have been working hard to ensure that the channel does not go off air but, as it stands, we will have no choice but to shut down the broadcast of the UK racing product.
"The attheraces channel has been of considerable benefit to the racing industry in this country and over 850,000 people watched our coverage of the Cheltenham week.
"Attheraces remains the industry's only viable option looking forwards."
Channel 4, part of the attheraces consortium that also includes Arena Leisure and BSkyB, have reaffirmed their commitment to attheraces and to continue showing racing on terrestrial television.
A Channel 4 spokesperson said: "Channel 4 remains a committed shareholder in attheraces.
"We are in negotiations with the individual racecourses to ensure that horse racing in the UK continues to be broadcast on Channel 4."
The first meetings they are scheduled to cover when attheraces go off the air are at Hereford, Lingfield and Newcastle on Saturday week.
The British Horseracing Board are watching developments closely.
BHB communications manager Alan Delmonte said: "A television channel that has brought dedicated coverage of racing is something that is, and has been, beneficial to the sport and the prospect of losing that channel is obviously not good news.
"Fundamentally, the fact remains that the attheraces deal is between attheraces and the 49 racecourses who have the rights, rather than the BHB who have only a peripheral involvement as the governing body, and the licence to use our data base.
"We are closely observing the situation and as and when we are consulted we are offering advice and being involved. This is a relatively late stage in proceedings and new issues may arise. We are willing to listen but obviously time is running shorter."
Delmonte did stress that racing should still seek a fair price in any deal struck.
"Racing has to ensure that the value of the rights it provides are reflected in any commercial involvement," he added.
Betting exchange firm Betdaq expressed its disappointment at today's news.
"The announcement is hardly a surprise," said Betdaq director Rob Hartnett, "but is no less disappointing for that.
"The fact is that the sport has stabilised its share of a burgeoning betting market as a result of the professional and consistent coverage which attheraces has broadcast.
"Our customers have benefited from that and racing has grown from a 30 to a near 50 per cent share of Betdaq's overall turnover. Those same customers have already begun to push us to look for alternative betting markets in the event of racing going dark for an extended period.
"We will continue to offer a full racing service and do not expect to experience any falling off of custom in the short term, except perhaps in in-running markets. The question in the longer term though is how long racing can afford to hide its light away.
"Ours is an international customer base and outside of the UK and Ireland, racing only barely figures in the betting consciousness. Those who are keen to see a continued bright future for the sport should take heed of the fact that fashion changes very quickly and the gains of the last two years can be lost in a very short time.
"Traditional bookmakers have long recognised this and it is perhaps notable that the major firms appear sanguine at the prospect of there being no home broadcast of the sport.
"Betting exchanges have grown rapidly alongside the attheraces service. Perhaps the bookmakers feel its loss will in some way help to resuscitate the old status quo. If that is the case they are mistaken. The only loser in this will be racing and if there is any prospect of a 'midnight' resolution it should be grasped."
http://www.gifs.net/animate/eyebrows.gif
Sporting life.com (http://www.sportinglife.com/racing/news/story_get.dor?STORY_NAME=racing/04/03/24/RACING_Attheraces.html)
By Anita Chambers, PA Sport
http://www.sportinglife.com/pictures/general/allsportwindsorscene.jpg
Attheraces is set to stop broadcasting British racing in five days' time after failing to agree new media rights deals with 49 of the country's 59 racecourses.
The £307 million deal will terminate at midnight on Monday and, although the channel has been trying to agree new deals with the tracks, officials do not think a new contract will be sorted out in time.
A statement from attheraces said: "Although discussions are still ongoing with all parties, attheraces believes there is little chance of achieving a successful outcome before Monday's deadline.
"Although negotiations with the 49 tracks continue, without new contracts in place on March 30, attheraces will cease the broadcast of live UK horse racing.".
The statement continued: "In this event, attheraces hopes to continue with its evening broadcast of the popular US racing programme, albeit a cut-down version.
"Attheraces intends to remain in negotiations with all parties to try and secure a new agreement even if the broadcast of UK racing ceases.
"In the meantime, attheraces hopes to be able to continue to license UK racing for broadcast in betting offices and other overseas customers and has today written to the courses requesting a one-month contract relating to overseas rights.
"Attheraces is fully aware of the value that these rights bring the racing industry in this country and does not wish the ongoing media rights discussions to jeopardise UK racing's standing in the international market.
"Attheraces also intends to continue to operate its betting business, which has grown rapidly over the last year and recently achieved record turnover during the three days of the Cheltenham Festival.
"All account holders with Bet attheraces will continue to be able to bet as normal on the phone and via the internet after March 29 and will be unaffected by the protracted media rights negotiations. All customer account balances are protected."
The 10-year deal, which was signed by attheraces in June 2001, is ending after a get-out clause was triggered following a fall in the overall gross-profit margin recorded by the Tote.
The broadcaster said that betting into the Tote's pools has "always been crucial to attheraces' bottom line".
In October, attheraces served a statutory 90-day notice on the Racecourse Association to terminate the contract, and further discussions were then held between the two, but no agreement was reached.
A further 60-day termination notice was then issued, with that period ending on Monday.
Ian Hogg, managing director of attheraces, underlined that negotiations have been on-going and he believes that attheraces remains the best option for digital coverage in the future.
He said: "We have been working hard to ensure that the channel does not go off air but, as it stands, we will have no choice but to shut down the broadcast of the UK racing product.
"The attheraces channel has been of considerable benefit to the racing industry in this country and over 850,000 people watched our coverage of the Cheltenham week.
"Attheraces remains the industry's only viable option looking forwards."
Channel 4, part of the attheraces consortium that also includes Arena Leisure and BSkyB, have reaffirmed their commitment to attheraces and to continue showing racing on terrestrial television.
A Channel 4 spokesperson said: "Channel 4 remains a committed shareholder in attheraces.
"We are in negotiations with the individual racecourses to ensure that horse racing in the UK continues to be broadcast on Channel 4."
The first meetings they are scheduled to cover when attheraces go off the air are at Hereford, Lingfield and Newcastle on Saturday week.
The British Horseracing Board are watching developments closely.
BHB communications manager Alan Delmonte said: "A television channel that has brought dedicated coverage of racing is something that is, and has been, beneficial to the sport and the prospect of losing that channel is obviously not good news.
"Fundamentally, the fact remains that the attheraces deal is between attheraces and the 49 racecourses who have the rights, rather than the BHB who have only a peripheral involvement as the governing body, and the licence to use our data base.
"We are closely observing the situation and as and when we are consulted we are offering advice and being involved. This is a relatively late stage in proceedings and new issues may arise. We are willing to listen but obviously time is running shorter."
Delmonte did stress that racing should still seek a fair price in any deal struck.
"Racing has to ensure that the value of the rights it provides are reflected in any commercial involvement," he added.
Betting exchange firm Betdaq expressed its disappointment at today's news.
"The announcement is hardly a surprise," said Betdaq director Rob Hartnett, "but is no less disappointing for that.
"The fact is that the sport has stabilised its share of a burgeoning betting market as a result of the professional and consistent coverage which attheraces has broadcast.
"Our customers have benefited from that and racing has grown from a 30 to a near 50 per cent share of Betdaq's overall turnover. Those same customers have already begun to push us to look for alternative betting markets in the event of racing going dark for an extended period.
"We will continue to offer a full racing service and do not expect to experience any falling off of custom in the short term, except perhaps in in-running markets. The question in the longer term though is how long racing can afford to hide its light away.
"Ours is an international customer base and outside of the UK and Ireland, racing only barely figures in the betting consciousness. Those who are keen to see a continued bright future for the sport should take heed of the fact that fashion changes very quickly and the gains of the last two years can be lost in a very short time.
"Traditional bookmakers have long recognised this and it is perhaps notable that the major firms appear sanguine at the prospect of there being no home broadcast of the sport.
"Betting exchanges have grown rapidly alongside the attheraces service. Perhaps the bookmakers feel its loss will in some way help to resuscitate the old status quo. If that is the case they are mistaken. The only loser in this will be racing and if there is any prospect of a 'midnight' resolution it should be grasped."
http://www.gifs.net/animate/eyebrows.gif
Sporting life.com (http://www.sportinglife.com/racing/news/story_get.dor?STORY_NAME=racing/04/03/24/RACING_Attheraces.html)