Betfair is to pay the BHA a guaranteed £8m per year for the next five years.
Is it a good deal?
A few days ago Betfair reported revenue of £350m and profits of £92m for 2011, according to a story in the Racing Post on 29 June. £250m of the turnover is accounted for by sports betting.
53% of their activity is in the UK, and 42% of their sports related turnover is from horse racing.
At a very rough guess Betfair revenue on racing in the UK is between £60m and £80m (I'm assuming that in the UK sports is a higher share of revenue than elsewhere, and that horse racing is a higher share of sports revenue). So it looks as if the BHA is going to be getting a decent enough slice of that sum.
Is it a good deal?
A few days ago Betfair reported revenue of £350m and profits of £92m for 2011, according to a story in the Racing Post on 29 June. £250m of the turnover is accounted for by sports betting.
53% of their activity is in the UK, and 42% of their sports related turnover is from horse racing.
At a very rough guess Betfair revenue on racing in the UK is between £60m and £80m (I'm assuming that in the UK sports is a higher share of revenue than elsewhere, and that horse racing is a higher share of sports revenue). So it looks as if the BHA is going to be getting a decent enough slice of that sum.
