Announcement by Minister John Penrose (Tourism & Heritage, part of the Ministry for Sport and Nice Things) that the government is looking to launch the sale of the Tote this autumn in a 'free market process'. Is it too late to matter, I wonder, and who's likely to bid - would it be allowed for a racecourse holdings company to buy it (like Arena Leisure, for example), or will it go to a business like Blue Square?
Tote for sale this autumn
- Thread starter krizon
- Start date
Colin Phillips
At the Start
Fred Done looks to be about to take control of the Tote.
Can't believe it's good news.
Can't believe it's good news.
chroniclandlord
Senior Jockey
It has to be a retrograde step.
Colin Phillips
At the Start
News from the Racehorse Owners Association
3 June 2011
Betfred win the race to buy the Tote
Bookmakers Betfred have won the race to buy the Tote and signed a contract with the Government to buy the betting operator for a total of £265m.
Net proceeds will be £180m, which will be split 50-50 between the Government and racing.
Betfred, led by executive chairman Fred Done, beat off competition from former BHB chairman Sir Martin Broughton's Sports Investment Partners.
Breakdown of key parts of the deal:
Headline value £265m, comprising initial payment of £150m and deferred amounts, including accrued interest, of £115m.
Net equity value after paying debt (around £60m) and pension provision (£25m upfront contribution) minimum £180m.
Net proceeds split £90m to taxpayer, £90m to racing. Racing's share subject to compliance with state-aid regulations; distribution to be agreed with government.
Betfred commits to make commercial payments to racing of £11m for year to March 2012, then base of £9m per year over following six years.
Betfred take over seven-year exclusive pool betting licence, starting from March 2011; committed not sell Tote pool business for at least three years.
3 June 2011
Betfred win the race to buy the Tote
Bookmakers Betfred have won the race to buy the Tote and signed a contract with the Government to buy the betting operator for a total of £265m.
Net proceeds will be £180m, which will be split 50-50 between the Government and racing.
Betfred, led by executive chairman Fred Done, beat off competition from former BHB chairman Sir Martin Broughton's Sports Investment Partners.
Breakdown of key parts of the deal:
Headline value £265m, comprising initial payment of £150m and deferred amounts, including accrued interest, of £115m.
Net equity value after paying debt (around £60m) and pension provision (£25m upfront contribution) minimum £180m.
Net proceeds split £90m to taxpayer, £90m to racing. Racing's share subject to compliance with state-aid regulations; distribution to be agreed with government.
Betfred commits to make commercial payments to racing of £11m for year to March 2012, then base of £9m per year over following six years.
Betfred take over seven-year exclusive pool betting licence, starting from March 2011; committed not sell Tote pool business for at least three years.
Fredster was earlier on the BBC News saying how the more he made, the more would go into racing, and that he'd hope to come up with some innovations. Can't think what they'd be, because the Tote seems to offer every permutation known to man - the explanations take up a whole page of a race card! And I can imagine our nice Tote ladies (and gents) inwardly groaning as they imagine they'll have yet another change of uniform imposed on them! It's been blue, black and red, green and black - what, if anything, are Fred's flagship colours?
How the hell the tote going to a bookmaker is good for racing is completely beyond me????????????????
Anyone know why it will be good for racing, it will be a similar situation to what we have with bookies now, they will try to increase their profit/margin year on year, raping the punters/consumers and wont put as much back as they should. When they have a bit more, outrage will ensure.
The people who run this game are far far too short sighted or they are just looking for a quick buck by selling it, getting rid of the responsibility. Now its all done and dusted, what is going to happen next? How will betfred/tote contribute more to racing?? I cant see them reinvest a great deal of their profit back into the game. Are there some type of ruling??
Anyone know why it will be good for racing, it will be a similar situation to what we have with bookies now, they will try to increase their profit/margin year on year, raping the punters/consumers and wont put as much back as they should. When they have a bit more, outrage will ensure.
The people who run this game are far far too short sighted or they are just looking for a quick buck by selling it, getting rid of the responsibility. Now its all done and dusted, what is going to happen next? How will betfred/tote contribute more to racing?? I cant see them reinvest a great deal of their profit back into the game. Are there some type of ruling??