The United Irish Racecourses (UIR) comprised of Kilbeggan, Thurles, Limerick, Sligo and Roscommon racecourses have expressed grave reservations about the inequitable distribution of funding under the proposed deal, and has appealed to the Minister for Agriculture to intervene UIR has rejected a media rights deal negotiated by Horse Racing Ireland (HRI), with broadcaster, Racecourse Media Group (RMG) and Sports Information Services (SIS) which was expected to be signed today (9 May 2023).
The deal, reported to be worth approximately €200 million to Irish racing over a five-year contract term, authorises RMG and SIS to hold the exclusive broadcasting, data and media rights for twenty-six racecourses across Ireland. The proposed new five-year media rights deal was due to commence in 2024 and included direct-to-home television rights until at least 2029.
The media group was designated a “preferred partner” by HRI in October 2022. UIR, which is comprised of Kilbeggan, Thurles, Limerick, Roscommon and Sligo racecourses, has rejected the deal because of the inequitable distribution of media rights funding to their members. HRI owned racecourses look set to earn seven-figures from the deal, with HRI expected to benefit directly to the tune of €7 million.
UIR said that trust between its members and HRI has “broken down” in light of HRI’s failure to make good on an undertaking in 2016, to facilitate an “independent review of the allocation of media rights monies” and to ensure that all monies derived from that deal “would go towards current or capital expenditure.” To date they have failed, and or refused to commence this process.
Seven years ago, UIR signed the media rights agreement with RMG | SIS by virtue of this undertaking, and because it trusted HRI to deliver on its promise. In light of the breakdown in relations between UIR and HRI, Secretary of UIR, Paddy Dunican has written to the Minister for Agriculture to request his intervention to address their concerns, so that small racecourses will receive the maximum market value for their media rights.
The association is also requesting the Minister to review the applicability of Section 10 of the Horse and Greyhound Racing Act 2001, which it contends is unconstitutional and amounts to an infringement of the property rights of racecourse owners.
Under the Horse and Greyhound Racing Act 2021, HRI is the authorised body to “negotiate on...all contracts or arrangements...in relation to the transmission or relaying of any broadcast... photographing, filming or sound recording for commercial purposes of a race-fixture or any part thereof.”
This bestows a sole right on the state agency to negotiate the property rights of each racecourse, a position that is constitutionally questionable. Furthermore, there is no appeal mechanism in place which inflicts another injustice on racecourses seeking to challenge their designated allocation of funding from media and data rights.
Speaking today about the move, Secretary of UIR and Managing Director of Kilbeggan Racecourse, Paddy Dunican, said: “UIR racecourses have today decided to withdraw from a media rights agreement that simply does not represent the interests of the membership. Our concerns at the inequitable distribution of funding under these deals has not been addressed, despite pledges from HRI, to conduct a review into allocation, as far back as 2016.
“UIR want what is best for racing and race-goers; parity of treatment, exposure of the sport, and enhanced attendances. To that end, HRI has an additional onus on it to derive the best possible deal, while transparently delivering value to all courses in a fair and equitable way.”
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