Bookmakers have reached an agreement with the horse racing industry to put up to £72.4m into the sport in Britain next year through the sport's levy – last year culture secretary Jeremy Hunt had to set the figure because a deal could not be reached.
It is estimated by the Bookmakers’ Committee that the 51st Levy Scheme, on the basis agreed, will total £65.9m – although fixtures in 2012 will be down by 30 to 1,450.
The three largest bookmakers - William Hill, Ladbrokes and Coral have committed to a base figure of £45m and, in addition, Betfair has undertaken to provide £6.5m to produce the Bookmakers’ Committee’s aggregate estimated total of the 51st Levy Scheme of up to £72.4m.
It is estimated by the Bookmakers’ Committee that, on latest assumptions, the current Levy Scheme will produce £65.4m.
Levy Board chairman Paul Lee said: ‘I believe that the offer that has been accepted should deliver to Racing significant benefits.’
‘The offer of guaranteed contributions by the major operators provides more certainty for all parties and valuable assistance for the Levy Board’s financial planning, as does Betfair’s commitment to an increased voluntary contribution of £6.5m in the 51st Levy Scheme period.’
‘The Board will be giving immediate consideration to expenditure for 2012 in the light of the resolution but, as a provisional indication, we expect to be able to plan to spend around £65m next year, an increase from £60m in 2011.’
Simon Bazalgette, group chief executive of The Jockey Club, the largest commercial group in British horseracing, added: ‘We are pleased this deal provides some certainty for next year's fixture funding and promises to return more than we are receiving currently from the 50th Levy Scheme. However, we are disappointed with the level given the £1bn gross win the betting industry continues to enjoy just from UK bets on our sport.’
‘I understand the majority of large firms were willing to go further and have provided guarantees for their Levy payments as part of this deal. They should be commended for the constructive approach they have taken in negotiating this 51st Scheme, which undoubtedly is a positive sign for the future. To deliver these returns, it is clear staging nearly as much racing as this year is necessary.'
'I look forward to the 2012 fixture list being finalised as quickly as possible, but these tight funding constraints mean prize money will continue to be squeezed.’
‘British racing is the best in the world, but that remains under threat from this unsustainable, low Levy funding. We need to see rapid progress in the modernisation of this critical funding for a healthier and more sustainable future for all concerned. The healthier British racing, the greater the benefits we can offer to the betting industry.’
‘All parts of the betting industry need a level playing field to compete, while racing needs a fair return from the profits made on our sport and the provisions we make for betting. As with these negotiations, The Jockey Club will continue to play our part to ensure that becomes a reality.’
