Racing Victoria says it can survive without Tabcorp vision   Leave a comment

Racing Victoria says it can survive without Tabcorp vision
Date
June 10, 2015 – 7:30PM
Read later
John Stensholt and Patrick Bartley

Racing Victoria believes a broadcast rights deal with Seven West Media can be at least as lucrative as a contract with Tabcorp’s Sky Racing and that it can survive Tabcorp turning off Victorian horse racing vision on Sky from Monday onwards.

Internal fiscal modelling prepared by Racing Victoria show it making a net profit of several million dollars in the first year of a mooted deal with Seven on the broadcast deal alone, from about $16 million of revenue, including advertising on a new racing free-to-air channel and income from corporate bookmakers paying to show racing vision on their websites.

There would be about $12 million in costs associated with the move, including a substantial amount in production for a new Seven free-to-air channel that will carry Racing Victoria’s racing.com brand.

The modelling is for domestic broadcast rights only, for which Tabcorp is understood to have offered the racing authority about $16 million, as part of a package including digital and international rights that could be worth $20 million to $25 million – less than the $30-million-annually figure that had previously been widely reported.

Advertisement

Similar costs on the Tabcorp offer would bring the net profit Racing Victoria would make from the deal to a similar result it projects from opting for Seven.

Bumper 2015 financial year profit
Racing Victoria, set to announce a bumper 2015 financial year profit of more than $15 million, also believes it has enough fiscal strength, coupled with the Seven deal, to survive for at least a short period of time without vision on Tabcorp’s Sky.

Tabcorp said on Tuesday it would stop showing Victorian racing on Sky from June 16 onwards. It has cancelled meetings with Racing Victoria executives, who now expect the wagering operator to follow through on its threat to cease the vision.

“It is unfortunate it has got to this,” Racing Victoria chairman David Moodie said about the stand-off with Tabcorp. “I would like to think this can be avoided as it is not in anyone’s best interests.”

Racing Victoria and Seven are understood to have offered an olive branch to Tabcorp in the form of international rights, as well as a deal for it to be the only wagering advertiser on the new channel and the racing.com website.

Wagering on Victorian horse racing has grown by more than 5 per cent in the past 12 months. Racing Victoria believes if it can get that growth figure to 6 per cent with Seven, at least $15 million will flow to its bottom line annually.

Advertisements

Posted June 11, 2015 by belesprit09 in Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: