Racing UK, which already operates the UK’s leading horse racing television channel, has agreed a memorandum of understanding with Churchill Downs Incorporated (CDI) (NASDAQ: CHDN) and Magna Entertainment Corp. (MEC) (NASDAQ: MECA, TSX: MEC.SV.A) for media rights and to develop a subscription television channel to broadcast races from CDI and MEC racetracks, as well as other North American and international racetracks, into the UK and Ireland.
The new international television channel would be branded 'Racing World' and and would be available on satellite and cable. It will launch initially as a programme block and build into a full international channel through 2006.
The partnership will also be responsible for the management of web casting and wagering rights for the UK and Ireland on behalf of other American courses.
CDI, MEC and Racing UK would take equal ownership positions in Racing World with CDI and MEC contributing their respective in-home video and wagering rights in the UK and Ireland in exchange for a fee.
Neither CDI nor MEC expect the joint venture, if consummated, to have a significant impact on their companies’ respective earnings or cash flow in 2006.
