Attheraces plans to broker separate deals with UK racecourses

The company has struggled to make money from screening live TV racing since signing the 10-year deal with the Racecourse Association in 2001.

Attheraces said a clause in the deal allowed it to renegotiate fees if betting margins fell below a set level.

The firm is owned by a consortium made up of broadcasters BSkyB and Channel 4, and track operator Arena Leisure.

Attheraces said a fall in the overall gross profit margin recorded by the state-run pooled betting service - the Tote - had triggered the get-out clause.

Protecting interests

Talks between Attherace's owners and the Racecourse Association broke down last week.

It is disappointing but not unexpected Richard Thomas, chief executive, Chester and Bangor racecourses

The company said it now planned to renegotiate separate TV rights deals with individual racecourses.

In a statement, Attheraces said: "Since signing the media rights agreement, Attheraces has honoured all commitments to the UK horseracing industry."

The company said it had paid "�95m in rights payments as well as making a significant contribution to the industry through the Attheraces TV channel and in promoting UK racing overseas".

Marginalised

However, a reduction in the Tote's margin on bets - known as the take-out rate - to below 20% had forced the company into the move "to protect its commercial interests".

Richard Thomas, chief executive of Chester and Bangor racecourses, said the decision was "disappointing but not unexpected".

He said he was expecting to meet representatives from Attheraces next week to begin working out a separate TV rights deal.

"We remain confident and are keen to continue with another contract. Having a TV channel has been fantastic for horse racing," Mr Thomas said.

He added that he did not expect smaller racecourses to be marginalised by their larger rivals under Attheraces' plans for separate negotiations.

Making excuses?

The chairman of the Racecourse Association (RCA), Keith Brown, said he was "saddened" by Attheraces' planned termination of its Media Rights contract.

He said the RCA has been in talks with Attheraces over Tote take-out rates and had proposed steps to resolve the problem, which were met by a "resolute refusal to enter into proper commercial negotiations".

"As a consequence of this, we are driven to the conclusion that Attheraces is utilising the Tote take-out rate as an excuse to get out of the Media Rights Contract," Mr Brown said.

But he added: "We remain receptive to resolving the Tote take-out rate directly with Attheraces.

"We think that Attheraces is good for racing and racing is good for Attheraces."