“Arena and attheraces are looking to capitalise on a share of the $100bn (B112bn) global market for betting on horseracing. We welcome the new spirit of co-operation within the racing industry and look forward to capitalising on a new era for British racing with our attheraces partners BSkyB and Channel 4,” said Ian Penrose.
After fraught negotiations a few months ago attheraces, formerly known as Go Racing, agreed a £387m ($545m/B628m) ten-year multimedia racing rights deal with the British Horseracing Board and the Racecourse Association. As part of the deal, Arena raised £48m ($70m/B78m) via a share offering to help fund some of attheraces’s projects which include an interactive horse racing website and interactive television channel.
Martin Pope, chairman of Arena told his company’s shareholders that Arena’s involvement in attheraces has altered Arena’s business. “Attheraces has changed fundamentally the financial shape of your company and will impact favourably on the profitability of both our racing and technology divisions in the future.”
But Nick Batrum, a sport and leisure analyst and investment bank Granville Baird, warned investors not to rush out and buy shares in Arena Leisure. He told sportbusiness.com
