Racin?_x0019_s ability to move forward as a unified industry and to maximise the value of its rights took a major step forward last night when the BHB Board approved the revised Future Funding Plan for the industry and agreed the terms and conditions on which it would grant data licences to Go Racing.
The Board ratified proposals which included the allocation of particular future revenue streams to specific industry constituents and the general approach for the distribution of other centrally-negotiated incremental income in the ratio of 40% to prize money, 40% to racecourses and 20% to BHB.
The revised terms of Go Racing’s latest offer met the Board’s requirements in the areas of new and future technologies, licensing terms for extended periods and the establishment of a joint venture between BHB and Go Racing. Crucially, it did not compromise the industry’s ability to implement a robust commercial replacement for the statutory levy.
The terms of the data licences are now fully consistent with BHB’s direct data licensing policy, approved by the Board on 12th June 2001. The new element of a joint venture between BHB and Go Racing allows the industry full involvement in the development and exploitation of the exciting possibilities derived from the use of visual data and a weekly “Superbet”. The joint venture is expected to generate significant incremental income for both the industry and Go Racing. BHB is also able to negotiate an exclusive 3G licence based around its data of up to three years, an opportunity which it will be pursuing immediately.
BHB Chairman Peter Savill said today: “I am delighted that, after sustained and lengthy negotiations, it has been possible to secure agreement with Go Racing which BHB believes can be supported by the whole of racing.
“More importantly, the industry’s ratification of the Future Funding Plan provides the ability for racing to work together to maximise its opportunities across all platforms, including the commercial replacement of the levy.”
Attached is the summary of amendments to the Future Funding Plan, agreed yesterday.
For further information, please contact Teresa Cash on 07771 818499 or Alan Delmonte on 07931 701536
AMENDMENTS TO THE FUTURE FUNDING PLAN
To facilitate a proper and sensible approach to the development of additional income for racing a clear understanding is needed by all sectors of the industry of how all media, data, levy replacement and collective commercial income will be allocated between three core areas:
Committed to Prize money
Committed to the Racecourses for them to use as they feel appropriate
Committed to the BHB to allocate according to BHB Board instructions
It is expected that all sectors of the industry will be bound by this policy and that any allocation of income from central sources to individual racecourses will require a commitment from the specific courses to adopt the policy.
BHB to have veto over RCA negotiated media deals
RCA to have veto over BHB negotiated media or levy replacement deals
2. LBO Picture Delivery
RaceTech to provide pictures to BT Tower on agreed budget.
Joint BHB/RCA team led by BHB, to negotiate programme production and picture delivery
Racetech to be held harmless by BHB from any extra costs incurred in the event Racetech is not engaged to provide camera service to BT Tower
3. Strategy Group
Consultation and policy forum – no executive authority.
All racing bodies including the RCA, ROA, Industry Committee agreed to be part of the Strategy Group
4. Income Allocation
1st year Go Racing income to be split 95/5 Racecourses/BHB
All revenue from Go Racing/BHB JV related to exploitation of Visual Data to go via BHB to Prize Fund and appearance money, for owners, jockeys, trainers, stable staff etc.
All other revenue from Go Racing/BHB JV to go to BHB.
All revenue from Go Racing re New Technology licences to go to BHB.
All revenue from BHB exploitation of 3G and other new technologies to go to BHB.
All remaining income as identified above, unless agreed otherwise will be subject to the following arrangements – BHB and Racecourses to receive first income equivalent to the levels each received in 2000 from the similar source.
All remaining income to be divided as follows
40% to Racecourses
40% to Prize Money
20% to BHB (at least 30% of this to be directed to owner related matters)