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Racing Consortium Rips Up £307 Million Deal29 January 2004UNITED KINGDOM – As reported by the UK Guardian: "Horseracing is today facing a cash crisis after the AttheRaces consortium comprising BSkyB, Channel 4 and Arena Leisure ripped up its £307m (US$557.19 million) deal with 49 British racecourses. "The 10-year deal, which was signed with the Racecourse Association in June 2001, will be cancelled in 60 days' time after AttheRaces invoked a clause in the contract allowing it to scrap the deal. "In October the consortium served a statutory 90-day notice on the association to terminate the contract and in that period of time further discussions were held but no agreement was reached. "…AttheRaces said reduced revenues from Tote betting, which it uses as the basis of its interactive betting service, had hurt profits and triggered the get-out clause. "…The contract said if AttheRaces' share of Tote gross profits dropped below 20% for more than 90 consecutive days it had another 90 days to seek compensation from the 49 courses. The 90-day limit was reached on October 24, leaving a second deadline of last Thursday, which has also passed without agreement. "…Getting out of the contract will serve a twin purpose for the consortium, which for the past two years has been responsible for dragging down the profits of Channel 4's commercial arm, 4Ventures…" |