SIS SLAMS LEVY THREAT RUMOUR

02 May 2001 - Some smaller racecourses fear that they are being threatened with loss of their Basic Daily Rate payments under the Levy if they sign up with GG Media, it was claimed today.

Satellite Information Systems (SIS), who have bid for some of the rights being negotiated by GG Media, say that they have received reports from some courses of a rumour being circulated that courses "deserting" the Go Racing deal would be "punished" with the loss of their Levy payments.

"Obviously, this will not and cannot happen", said SIS Chief Executive David Holdgate. "But in the present situation it's understandable that this kind of rumour has arisen."

Mr Holdgate added that he did not believe that the rumour had been spread deliberately or maliciously, but it may have arisen from "unhelpful" remarks by BHB Chairman, Peter Savill, over future BHB funding. Mr Savill was quoted in the Racing Post as saying that "small courses need to consider where they will get funding currently provided by the Levy Board if they have no further rights to sell".

Mr Holdgate said: "There will be a Levy replacement. This has to be negotiated between the betting and racing industries, and it will have to benefit the sport as a whole. Neither the Go Racing deal nor the GG Media one will change that reality. How the Levy replacement is to be structured remains to be negotiated, and it's absurd to suggest that the Peter Savill formula is the one, perfect and non-negotiable solution. This kind of dogmatic inflexibility is symptomatic of racing's present problems".

"Let me be absolutely clear", said Mr Holdgate. "Whatever the Levy replacement, smaller courses must benefit from it. Nothing in the GG Media deal prevents that. Nor is there any threat to their existing Levy payments. But the GG Media deal is giving them a measure of financial security which they have never previously known, and which they would be denied under the Go Racing deal".

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