In an announcement made to the ASX, Tabcorp told its shareholders that it has reached an agreement with Racing NSW on a 10-year media rights deal for all thoroughbred racing in NSW.
Sky Racing, Tabcorp’s media arm otherwise known as Sky Channel, will have “the domestic and international media rights, as well as non-exclusive digital rights, for all NSW thoroughbred racing, as soon as the rights become available”.
“Sky Racing is delighted to have finalised binding heads of agreement for the long-term media rights for NSW thoroughbred racing. We look forward to continuing to expand the reach of NSW racing – both domestically and internationally,” said Tabcorp Managing Director and CEO David Attenborough.
Tabcorp also announced that it has reached agreement for Sky Racing’s thoroughbred showcase channel, Sky Racing World, to be included on FOXTEL’s base tier – meaning the service will not require an additional $5 subscription. That change will come into effect “this quarter” according to Tabcorp.
It’s likely that NSW Racing will be streamed on digital platforms such at tab.com.au and the TAB apps, as well as all Sky Racing’s channels on subscription TV and commercial platforms found in pubs and clubs.
It’s understood that the free-to-air broadcasts of NSW race meetings by Channel Seven won’t be impacted.
There was no comment from Tabcorp ongoing negotiation with Racing Victoria and its stakeholders regarding the broadcast of Victorian thoroughbred racing, which originally collapsed as TVN failed to reach an agreement with Tabcorp on a price for the rights to racing.
The Roar contacted Tabcorp for comment, with the details between parties considered to be confidential.
The last line in Tabcorp’s announcement is as follows:
“Tabcorp’s current expectation is that the net financial impact of the NSW and Victorian arrangements will not be material.”
Tabcorp don’t provide guidance as to what material financial impacts may be.
Certainly, the $30 million per year cost that was reported as Tabcorp’s offer for the rights to Victoria and NSW Racing via TVN, would be regarded as material.
Tabcorp’s note that the costs are not material does not mean that the rights to Victoria and NSW Racing will cost next to nothing – or that Tabcorp has obtained the rights for free.
Tabcorp might very well be paying Racing NSW millions per year for the rights, but if Sky Racing is able to on-sell these rights internationally, those costs might be paid back to the point where they are regarded as ‘not material’.
It’s possible more will be revealed in Tabcorp’s financial reporting, although that won’t be for some time into the future.
Fairfax Media reports that the deal is worth $25 million a year for the rights.
The Roar has contacted Racing NSW for more information.
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