Mere hours ago, it was announced that a deal between Stronach Group and TVG has been signed. TVG is a subsidiary of the popular provider of various gaming-related products and services Betfair.
The deal in question concerns the ownership of the horseracing television network, known as HRTV.
According to the terms included in the contract, TVG is to take over the reins of the racecourses, which used to be managed by the Stronach Group.
As for the television operations of HRTV, they will be combined with the television network of Betfair.
All races that take place at Gulfstream Park, Pimlico, Laurel Park, Golden Gate Fields and Santa Anita will be broadcast.TVG has acquired the broadcast rights for a period of seven years.
The total amount of money Betfair’s subsidiary is supposed to pay in order to acquire TVG has not been announced yet. However, people familiar with the matter said that the initial payment is $25 million. During the seven-year period, for which TVG is granted broadcast rights, an additional amount of almost $48 million is to be paid out.
Strange as it may seem, the final sum that has to be paid for the acquisition of the network is yet to be determined. It will depend on the future performance of the television network but according to initial estimates, the amount is expected to reach $56.3 million.
There is no need for TVG to set aside money for television fees to be paid to HRTV as well.
The Chief Executive Officer of Betfair, Breon Corcoran, was reached for a comment and said that the deal between two prosperous companies will be, by all means, profitable. What is more, the deal consolidates the positions of TVG on the US horseracing market. In addition, it ensures the prominent racetracks to be brought together for the first time and the competitions to be broadcast by a leading TV network.
In conclusion, Mr. Corcoran added that the top priority of the new owners is to ensure excellent betting experience and racing action superior to what their customers have ever seen before. Mr. Corcoran expressed his hopes that customers will find the new acquisition particularly exciting.
Market analysts also considered the acquisition profitable. The majority of them were convinced that the seven-year period for broadcasting will be extremely beneficial to the advanced deposit wagering platform as well. Plus, it is absolutely possible for it to boost the business by providing more distribution and advertising options.
