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.
Bondy
Guest
E-Meter I agree I enjoy TVN and dont view Sky at all .
ScottWoodward.me
Roar Guru
So Racing NSW have done a 10 year deal with their in bed partners the TAB. Why is the media not blowing up because this deal was not offered to everyone including the Corporate bookies. This was a one horse race that has cost the industry approximately $25m. I have no doubt that they could have doubled the deal had they not only dealt with their mates. Just another reason why we need a National body.
Drew H
Guest
We are still with last millennium's technology. The limit of channels covering horse racing should be equal to the number of cameras out there on the day. I should be able to flick to 'mounting yard' at Scone or to 'behind the barrier' Mildura like having a wee wee. I never got to use that 'camera angle' button on my DVD-r player. I thought that by now it would be like 'Turning Japanese' where I could look at you from inside as well. ...then we wouldn't need commentators, and I could use the internet for all the tote numbers.
Wilson Flatley
Guest
Great result getting SRW on base foxtel, it's hard to tell the leg rope we're spending extra money to watch something she thinks costs too much already.
E-Meter
Guest
So this all means the death of TVN is even closer. I'll take TVN over Sky any day. Their coverage is infinitely better than Sky.
Tim Prentice
Expert
No doubt about that Max. Radley, Sharkie and Co give punters a terrific heads-up before they jump. Sky's new deal will prove to be a boon for punters. The Punters Show is excellent and I say Dallas is pretty much the best in the business. Well done Sky Racing. You can now deliver what you deliver best.
MAX
Guest
There will now be an opportunity for Sky to continue an extended pre race parade with Greg Radley as the face of Racing NSW and Michael Sharkie ( upon transfer) the face of Racing Victoria. The parade is an invaluable tool for final selections and Greg and Michael the best in the business. It may sound way out but many punters would love to see The Punters Show being televised and incorporated into the new format. Dallas Baker and his team understand racing like few others.
Tristan Rayner
Editor
That's one way to look at it. There's a lot more in it than that though - and a helluva lot of money.
Mike from Tari
Guest
Hopefully no more disruptions.