With the new agreement now in place between Tabcorp/Sky and TVN, the Sydney and Melbourne Race Club directors deserve high praise for their efforts over the last two years. Throughout this time, the Clubs' Administration has come under immense pressure and received much criticism from both the public and the media for their stand in creating the stand alone TVN channel. For the Sydney clubs in particular, it must be immensely satisfying to see this new agreement signed, after being challenged legally by their own governing body (Racing NSW) last year. While many in the racing industry were seen to be quite selfish in not quietly putting up with some short term pain for long term gain, the Race Clubs' directors stance has now empowered the industry for the long term future. The vision rights for Sydney and Melbourne racing is much more valuable than most people understand or were willing to admit - one only has to look at the racing vision battle in the UK over the last four years to see exactly the sums of money being negotiated. Some of the most vocal criticism had been forthcoming from interstate, provincial and country raceclubs, but ironically, this new agreement will now help lift the shackles of their previous restrictive negotiation position with Sky. This battle occurred due to mistakes of previous raceclub administrations when Sky Channel was first introduced, who sold off the rights cheaply, yet the the current Raceclub board's were constantly being criticised for attempting to fix the mistakes of the past. It seems a little surreal that today's new agreement was actually announced by Tabcorp today, as if the end of the war is somehow a win for the wagering corporation. Make no mistake, this is a victory for TVN and the racing industry, with this agreement only being reached due to Tabcorp quite obviously increasing their offer to avoid their upcoming court appearances. Some of the key points announced today: Rights fees INCREASING from $17 MILLION to $22 MILLION per year (with CPI increases). TVN to be funded to the tune of $3.5 MILLION per year. ADDITIONAL UPFRONT payment of $15 MILLION. TVN RETAINS content control of Sydney and Melbourne racing. TVN and SKY to explore further revenue earning opportunities in the meda TVN remains completely SELF-OWNED and SELF-GOVERNED.
The most important detail of today's announcement is that TVN has not sold any share of itself to Tabcorp, and remains self-owned. In "winning" a huge increase in revenue from Tabcorp, TVN still completely controls the golden goose for the future. Trackdata congratulates all board members of the AJC, STC, VRC, MRC and MVRC for their victory today! Kevin Skene, TRACKDATA, 16/05/2006 |
RACECLUB DIRECTORS DESERVE HIGH PRAISE