Racing: Racecourses contract with Attheraces under threat

The deal that yields revenue of £307m to Britain's racecourses from the Attheraces consortium appears under threat. Should it collapse, then some of Britain's smaller tracks that have used the funds to develop their facilities might be required to return payments they have received and would face uncertain futures. Comparisons with the ending of the ITV Digital deal with the Nationwide League would not be misplaced.

The Attheraces consortium, which includes BSkyB, Channel 4 and the racecourse group Arena Leisure, have a clause in their contract with 49 racecourses that allows them to renegotiate the deal if revenues fall below a certain level. That opportunity has been given to them because of a decreasing return from their link-up with the Tote, due to that organisation cutting its profit margins and giving punters larger returns. Interactive betting through its dedicated racing channel is a cornerstone of the Attheraces plan to break even by 2006.

Reports suggest that in October Attheraces gave the tracks a statutory 90 days' notice to terminate the 10-year contract, begun in 2001 and Attheraces will have 30 days to determine whether to implement action.

Bound by a confidentiality clause in their agreement, both sides were unwilling to comment yesterday. Ian Hogg, the Attheraces managing director, said: "We are in ongoing confidential discussions with the Racecourse Association and are not in a position to comment on the detail.

"We hope to be able to resolve these issues as soon as possible. Attheraces remains firmly committed to the future of UK horseracing."

The Racecourse Association later issued a statement saying: "The RCA has been in dialogue with Attheraces about the agreement. If issues have arisen in relation to the Tote, these are to be resolved between the RCA and Attheraces by good faith negotiations. For our part, this is what we are doing.

"To comment further would upset the delicate balance of these negotiations, which we are confident will result in all parties affirming their commitment to the Attheraces project."

Two bodies which have come to agreement are the bookmakers and Jockey Club. They have entered into a Memorandum of Understanding designed to help protect the integrity of racing. The agreement, which the Association Of British Bookmakers has signed on behalf of its members, formalises the process under which bookmakers and the Jockey Club share betting-related information.

This gives the Jockey Club's security department a stronger hand in pursuing cases where racing's integrity has been breached and would occur over such matters as abnormal betting patterns, unusual riding, prevention and detection of crime, or a police-led investigation into criminal behaviour such as money laundering.

Paul Scotney, Jockey Club director of security, said: "This is another step forward in our increasingly positive relationship with the betting industry."

RICHARD EDMONDSON

Nap: Jenga

(Kelso 1.40)

NB: Chivalry

(Kelso 3.10)