Bookies may part with SIS stake
Three of Britains biggest bookmakers are considering offering to sell around half of their controlling stake in Satellite Information Services to Britains 59 racecourses in a bid to defuse a legal row with Turf TV.
Ladbrokes, William Hill and Betfred together own around 53pc of SIS, the racecourse television company, thought to be worth more than £100m.
Until recently, SIS had a monopoly on the supply of pictures from the tracks to the UKs betting shops.
Since April, however, SIS has faced serious competition from Turf TV, the joint-venture between software group Alphameric and 31 leading racecourses, including Cheltenham, Newbury and Sandown.
Turf TV has signed up the Tote and many of Britains independent bookmakers for its new service, which will have exclusive rights to the 31 courses from January 1.
The big four bookies, including Coral, which is not an SIS shareholder, have so far refused to take the new service, claiming it would raise their annual costs by £50m.
Instead, they have started a High Court action against Turf TV, alleging the tracks infringed competition law by collectively selling their media rights exclusively to the new company.
Turf TV has responded with a counter-claim, alleging the deals SIS has signed with the other 28 tracks, are similarly anti-competitive.
The row has already caused the collapse of talks over the statutory levy payment the bookies make to racing.
The dispute is likely to escalate in the New Year when the big four bookies face a blackout in their shops from races from the 31 tracks - unless the races are also shown on terrestial television.
One source close to SIS said: "We could sell 20pc or so of our collective stake in SIS to racing if it helped to get everyone round the table and get a sensible deal. It would be a proper sale though. We are not going to give it away."
Sources close to Turf TV and the 31 racecourses have frequently complained that the bookies control of SIS gives them too much clout over the racing industry and allows them to cream off too much profit from the sport. In its latest accounts to March 2007, SIS had operating profits of £23.3m, up from £20.5m in 2006.
The Racecourse Association, representing Britains courses, used to have a near 10pc stake in SIS, but sold it a few years ago.
2007-12-21
