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Gold Cup left without sponsor due to ABP
By Lewis Porteous
THE most coveted prize in British jump racing is without a sponsor, it was announced on Sunday, with the Cheltenham Gold Cup having lost its backer Betfred as a direct consequence of the Authorised Betting Partners initiative.
Jockey Club Racecourses - owner of Cheltenham - along with Arena Racing Company are playing ball in terms of race sponsorship only with bookmakers who contribute what is regarded as a fair amount of levy via their offshore business, meaning that races such as the Gold Cup were under threat.
And it was revealed on Sunday that the Cheltenham Festival's show-stopping race will no longer be supported by Betfred, who unlike Betfair - who on Sunday became the new "headline partner" of Sandown's Grade 1 Tingle Creek Chase - do not have ABP status.
JCR are now also on the lookout for a new backer of the Group 1 Sprint Cup at Haydock, which like the Gold Cup was sponsored by Betfred.
After being unable to renew the contract with Betfred, JCR announced on Sunday that what it called "partnership rights" for the Gold Cup and the Sprint Cup festival at Haydock are now available from 2016.
Big changes
From next year British racing is instituting an authorised betting partner status for bookmakers who agree to contribute to the sport's finances from their offshore business.
Jockey Club Racecourses has chosen to support the initiative by not agreeing new commercial deals with betting firms that are not already considered authorised partners, or who do not agree to include a clause in new contracts requiring that status in the future once the initiative is up and running in 2016.
'Essential for British racing'
Paul Fisher, group managing director of JCR, said: "I would like to thank Betfred for their support of both races in recent years and we have very much enjoyed working with Fred Done's team in the process, as we will continue to do where we have existing commercial relationships throughout our business, including the Totepool. Betfred have been clear both partnerships performed very well for them.
"As supporters of the Authorised Betting Partners initiative we recognised there may be some effect on current partnership arrangements, but it is essential for British racing is to do everything necessary to secure sustainable funding for the future we want for the sport.
"That will be to the benefit of all working in British racing and also the betting industry for whom racing is a vital seven-days-a-week product."
Friction between betting industry and racing
When the new initiative was revealed last month, only 32Red, bet365 and Betfair were deemed Authorised Betting Partners given they pay levy voluntarily on their digital businesses, or in the case of Betfair have a commercial funding deal in place which sees them pay an equivalent sum.
The new concept has caused friction between the betting industry and racing since, with Paddy Power writing to the Jockey Club and Arena Racing Company - who like JCR have chosen to support the process - with a series of questions about the plan.
It is understood the firm is examining whether the policy could breach competition law.
By Lewis Porteous
THE most coveted prize in British jump racing is without a sponsor, it was announced on Sunday, with the Cheltenham Gold Cup having lost its backer Betfred as a direct consequence of the Authorised Betting Partners initiative.
Jockey Club Racecourses - owner of Cheltenham - along with Arena Racing Company are playing ball in terms of race sponsorship only with bookmakers who contribute what is regarded as a fair amount of levy via their offshore business, meaning that races such as the Gold Cup were under threat.
And it was revealed on Sunday that the Cheltenham Festival's show-stopping race will no longer be supported by Betfred, who unlike Betfair - who on Sunday became the new "headline partner" of Sandown's Grade 1 Tingle Creek Chase - do not have ABP status.
JCR are now also on the lookout for a new backer of the Group 1 Sprint Cup at Haydock, which like the Gold Cup was sponsored by Betfred.
After being unable to renew the contract with Betfred, JCR announced on Sunday that what it called "partnership rights" for the Gold Cup and the Sprint Cup festival at Haydock are now available from 2016.
Big changes
From next year British racing is instituting an authorised betting partner status for bookmakers who agree to contribute to the sport's finances from their offshore business.
Jockey Club Racecourses has chosen to support the initiative by not agreeing new commercial deals with betting firms that are not already considered authorised partners, or who do not agree to include a clause in new contracts requiring that status in the future once the initiative is up and running in 2016.
'Essential for British racing'
Paul Fisher, group managing director of JCR, said: "I would like to thank Betfred for their support of both races in recent years and we have very much enjoyed working with Fred Done's team in the process, as we will continue to do where we have existing commercial relationships throughout our business, including the Totepool. Betfred have been clear both partnerships performed very well for them.
"As supporters of the Authorised Betting Partners initiative we recognised there may be some effect on current partnership arrangements, but it is essential for British racing is to do everything necessary to secure sustainable funding for the future we want for the sport.
"That will be to the benefit of all working in British racing and also the betting industry for whom racing is a vital seven-days-a-week product."
Friction between betting industry and racing
When the new initiative was revealed last month, only 32Red, bet365 and Betfair were deemed Authorised Betting Partners given they pay levy voluntarily on their digital businesses, or in the case of Betfair have a commercial funding deal in place which sees them pay an equivalent sum.
The new concept has caused friction between the betting industry and racing since, with Paddy Power writing to the Jockey Club and Arena Racing Company - who like JCR have chosen to support the process - with a series of questions about the plan.
It is understood the firm is examining whether the policy could breach competition law.
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It'll be interested to see how long this lasts, as there's an element of shooting themselves in the foot on the face of it, but it is refreshing to see racing showing some balls when it comes to these bookmakers.
I could see Betfair going for the GC sponsorship anyway. |
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When Betfred bought the Tote they took on a load of "Tote" sponsered races.
Fred is such a **** that he would withdraw from the main prize to make a stance "on behalf of the industry". Hopefully the Totepool will be flogged on when the licence runs out and the previous forerunners will get a go at owning and developing that side of the betting market. |
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Yes, it could be an interesting few months. Betfair may well go for the GC, but they haven't got a bottomless pit of money so can't pick up everything that comes up for grabs
I'm sure there will be plenty more similar announcements to come and it will be like a game of who blinks first. There isn't exactly a queue of sponsors lining up for races and there are plenty of other sports where you can argue company branding works better. BHA are holding the Aces but could well be beaten by the bookmakers Royal Flush |
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If Paddy Power are asking questions does that mean they are not in the favoured group and Betfair are ? How does that work ?
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About time they welcomed "everything Betfair " on to the racecourses including live big screen exchange images. That would let punters see rather different odds.
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A lot of racegoers don't really understand traditional odds. Decimal odds would really throw them.
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I wouldn't be surprised if Betfair offered big money for a Saturday Gold Cup.
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SS they have to learn then they can go home and learn to use a computer.
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I went to a pt-to-pt about 18 months ago with a friend who is a University Professor ( admittedly his subject isn't maths ). There was a pony race on first. The bookies hadn't a clue and had priced the 3 runners up at 1-5,1-4 and 1-3. I had to stop him having a bet.
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What did the TRICAST pay - salmon?
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I hate to think onlooker.
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hopefully they have someone in the pipeline, to have a show piece event like the gold cup without a sponsor would be very bad for business and would leave them with a massive amount of egg on their faces.
i remember scottish football knocking back sky for more money, they went somewhere else, when the deal fell through they went back to sky who offered them much less than the original offer. sometimes what they think the product is worth isnt in the current climate |
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If Paddy Power are asking questions does that mean they are not in the favoured group and Betfair are ? How does that work ? I presume because their online operation is based out of the Isle Of Man, and they don't pay levy. |
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I'm sure they will have a sponsor on the day even if it is a "one off"
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Onlooker I have posted a question for you on the D Robinson thread .
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When you think of it its amazing how the tables have turned, years of bleeding the game dry and sucking the breath out of the game, its been handed to them on a plate and now they are turning the screw . We only have the BHA and there ilk to blame, Sold us out for 30 pieces of silver imo.
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Boycott PP and start betting in the shops rather than on-line unless it's with a ABP
Forty |
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Think a good move from the BHA and hope it goes well for them. Great to see bookies squealling like little pigs
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I haven't seen much squealing going on as probably too busy having meetings with other sporting bodies
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Who cares anyway?
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I'm with you miss.wales. I'm surprised some bookie hasn't tried changing the name of the Championship races. *cough Stayers Hurdle*
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Be wonderful to have National Hunts top race not dirtied by the preceecing sponsors name..Great to see Baldfreds name disappear..Rejoice Rejoice
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This initiative is about 10-15 years too late by the BHA.
A decade ago, the online UK bookmakers were still heavily reliant upon horse racing, and so would have had no choice but to have all become ABP's. Back then, racing held all the cards, and introducing an initiative like this back then would have undoubtedly resulted in racing being in far better shape today. Unfortunately, now that racing is a far more insignificant income stream for the books, with far more emphasis on other sports (ie football), most (if not all) have little to no incentive to become an ABP, as it is the bookmakers who now hold all the cards. |
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@arrested
I may be missing something - someone more well-informed stop me if I am - but: It doesn't matter what you do (unless you're outside the UK). Since the changes to make online operators channel their online business from UK punters through Gambling Commission regulated (and therefore UK-based) subsidiaries, the scope for Levy evasion on UK punters' business has vanished. All the bookies are fighting/squealing over now is the value of Levy on their non-UK punters betting on UK Racing; which I don't imagine is a huge amount? |
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yeah just about enough for the BHA gravy train to keep creaming the sport, for little or no return
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If ALL Racing Uk's profits go back into racing shouldn't they come on board? Then the bookies really would be squealing,,,
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Maybe off topic but can someone please tell me what the bha take on the fobt machines are they for or against
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They agreed to be pro FOBT to support the bookmakers/sustainability of betting shops,,,
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We can see whose side the Rancid Post is on. Bookmakers apparently "ready to pull plugs on deals". So the bookmakers who can't sponsor races are going to pull the plug - you couldn't make it up. I'm banned from my local pub. I told them i'm not coming in anyway,,,,
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i have no doubt they have came up with this for the right reasons but if you have no one to fill the gaps, in the current climate where companies arent exactly falling over themselves to invest in racing sponsorship, (why would you, its dying on its feet) then this could be a disaster. hope im wrong
all the damage was done a long time ago where bookmakers were given far too big a say on its fixtures etc. |
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all damage was done when bookmakers flooded the shops with fobt machines hence killing the sport by refusing bets time for bha to turn anti fobt and make the bookmakers rely on horseracing (once their bread and butter)
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One of the problems facing possible new sponsors,is the dwindling tv audiences,resulting in less exposure for them.After all racing wouldn't be high on an outsiders advertising budget.
Remember Peter McNeille got the sack a couple of years ago for saying Cheltenham should be looking for outside sponsorship,rather than being dependent on bookmakers. |
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The problems began when bookies moved jobs and profits offshore to avoid paying tax and the government did nothing.
Now the ABP initiative can only work imo if the racing media - who are the ones who give the publicity - also get onside. It is noticeable how quiet the RP, RUK and ATR have been so far.... |
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Problem is horseracing chiefs have no clue how lucky they are that bookies sponsor them people under 35 do not bet on horses.
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That will be why they sponsor on atr, racinguk, channel4, the racing post etc, etc then skygreezone?
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They are racing products but you go in any bookies during the week and the busiest time is between 630 730 before the football starts.
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It's great news for racing if Betfred aren't polluting its greatest race with their totally worthless prefix, imo...
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