SAVILL WRONG ON MEDIA RIGHTS SAYS SIS

26 April 2001 - The BHB's argument that selling the media rights of the smaller racecourses to an alternative to Go Racing would undermine the levy replacement was strongly challenged today by David Holdgate, Chief Executive of TV and data service provider, SIS.

Writing in the Racing Post, Mr Holdgate said "Nothing about the GG-racing offer or the SIS bid denies the opportunity for levy replacement negotiation, although it may be uncomfortable for those who believe that only one formula - their formula - can deliver the effective replacement". He said "We are not opposed to the basic idea that media rights should provide a commercial alternative to the levy. What we are opposed to is the idea that there should be one seller (the BHB) and one buyer (Go Racing)."

Mr Holdgate was particularly scathing of those calling for the smaller courses to accept the Go Racing deal for the good of racing as a whole. "Self sacrifice is always easy", he said , "when it's the other chap you're recommending it to".

Mr Holdgate said that it was not the business of the smaller courses "to lay down their commercial lives for the benefit of their bigger brothers. They have responsibilities to their shareholders, and there is no question that the GG-racing deal simply makes the best financial sense for them. But perhaps more important, the idea that a second media rights deal will somehow undermine racing's ability to negotiate simply does not stand up."

The SIS Chief Executive also warned that selling all media rights to Go Racing in an attempt to raise more money for racing was likely to lead to exactly the opposite result.

Holdgate explained "The Go Racing deal, with its projected ownership of the media rights and aggressive plans to challenge traditional betting markets will make it far more difficult for bookmakers to make levy payments at anything like the current level. A decline in levy receipts can only impact badly on any levy replacement."

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