The fight for the rights, expected to be worth at least #750 million ($1.07 billion) over 10 years, has pitted British TV group Carlton Communications Plc against a consortium assembled by UK racecourse owner Arena Leisure Plc.
The Racecourse Association, which represents Britain's 59 tracks, convened on Tuesday morning at one of northern England's top racecourses, Haydock Park, to end a battle started four months ago. A decision was due later in the day.
Rivalled only by soccer for its potent mix of wagers and sporting passion, ``the ponies'' attract avid viewers with money to spend. Therefore a large pay-out is expected from the media rights once broadband access and interactive TV allow viewers to place bets while watching races from the comfort of their home.
Arena's Go Racing consortium includes Britain's Channel Four Television and satellite TV operator British Sky Broadcasting. NTL, Britain's largest cable group will hop on if they win the TV, Internet and interactive rights package.
Carlton has brought a fellow UK independent TV company on board through talks about broadcast rights with Channel Five ? 65% owned by newly formed European broadcaster RTL Group.
Carlton's offer includes guaranteed cash of #350 million plus #50 million in marketing spending, plus a revenue-sharing deal which a Carlton spokesman said could push the total above #800 million over the 10 years.
This compares with Go Racing's total of 750 million, including a guaranteed sum of 320 million pounds plus 80 million in marketing spending and the rest from revenue sharing.
The sports media benchmark is a record deal landed in June by BSkyB, which paid #1.11 billion for a three-year package with live coverage of 66 Premier League soccer matches.
Arena controls 20 percent of the UK's racing fixtures and says several other race courses have given support for the Go Racing bid. But Carlton, in turn, argues that its bid offers an independent approach to racing.
The stock market appears to have tipped Go Racing, with Arena shares adding nearly 16 percent in the last two weeks. Arena was trading one penny higher at 170p by 11.45 GMT.
Arena, which has a joint venture with U.S. betting equipment firm Autotote Corp, offers gambling and the support of six racecourses, while BSkyB brings interactive pay-TV to the mix and Channel Four its racing coverage experience.
Go Racing plans to launch an online betting Web site and a dedicated TV station, and it is considering a 24-hour channel. Channel Four would launch a new lunchtime racing programme.
NTL arranged through its Premium TV subsidiary to join Go Racing as an equity partner if the bid succeeds. NTL would also carry the Go Racing channel on its interactive cable networks.
A Go Racing victory would reunite Channel Four with NTL, who held months of talks before abandoning a possible joint bid for the rights. Newspapers reported they offered #250 million.
Arena, originally bidding alone in late July, had already seen its offer expire.
Horse races are currently broadcast on terrestrial television through Channel Four and the BBC. Go Racing has agreed terms for the BBC to continue to broadcast certain races if its bid succeeds.
Reuters
