Why Gold Coast is at the heart of a broadcast rights battle set to engulf racing in Queensland
As the nation cast its eyes to the Melbourne Cup this week, Gold Coast racing powerbrokers are working behind the scenes to ensure they aren’t dealt another “shit sandwich” in the sport’s next broadcast rights deal in Queensland.
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AS the nation cast its eyes to the Melbourne Cup this week, Gold Coast racing powerbrokers are working behind the scenes to ensure they aren’t dealt another “shit sandwich” in the sport’s next broadcast rights deal in Queensland.
The 10-year deal currently in place will expire in June next year and Racing Queensland has already begun negotiations with current broadcaster Sky Racing on another.
Gold Coast Turf Club bosses believe they were left out in the cold when the current deal, believed to be worth $100 million over the past decade, was struck.
GCTC CEO Steve Lines said each Queensland club involved signed a deal with Racing Queensland to negotiate on their behalf on the current deal before the Brisbane Racing Club opted to split and negotiate their own contract.
“They ended up with the lion’s share of the investment for media rights,” Cook said.
“All the other clubs got a shit sandwich to divide up.”
Lines said the clubs were given around $2 million to divide among themselves, leaving GCTC with garnering around $250,000 per year from it.
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Lines said they had a 10 per cent stake in the broadcast revenue but would push for more given they race nearly every Saturday of the year, when viewers are watching racing the most, while the number of those meetings that are metropolitan could double from five to 10 in the coming years.
“We would expect Brisbane to get a good deal because they are metropolitan most Saturdays and for us to get a good deal because we race and compete with everyone else on a Saturday afternoon,” Lines said.
Lines said the new deal could double the last one, something that would further enhance their presence on the Gold Coast and in racing given their plans for night racing, impending track upgrades and infrastructure development.
“It’s the icing on the cake,” Lines said.
“It’s money we can tip back into infrastructure and training facilities and more. We are a not for profit and maybe in five or 10 years’ time the board could decide to privatise and become a commercial going concern where the members could become shareholders of the business.”
GCTC chairman Brett Cook said ensuring the club’s races remain on the Sky Racing 1 channel are among their high priorities for the next deal.
Cook said the club’s races had been bumped to Sky Racing 2 frequently over the past two years, decreasing their viewers and the turnover they make from the races.
Cook also said getting racing on free-to-air-television was also a must for the code in Queensland, similar to what broadcaster Racing.com have done.
Racing Queensland CEO Brendan Parnell was the general manger of broadcasting for Sky when the last deal was struck and is now on the other side fighting for the best deal for racing.
“We are currently in negotiations with our broadcast partner Sky,” Parnell said.
“A lot has changed in the last nine years so it’s a very different landscape. Corporate bookmakers were nearly non-existent in 2010 and secondly, there is much more free-to-air interest in racing with Seven, Racing.com, Channel 10 and Sky. There is also a lot more interest globally.
“Having that competition is good for our price, exposure and reach. We have great stories to tell and great carnivals.
“Ultimately the pictures serve multiple purposes, to drive wagering and that funds racing. Also, to introduce new audiences to the sport and showcase our carnivals.
“Putting the lights up at the Gold Coast and showcasing our Happy Valley of racing to international markets is important.”
Parnell said all clubs from all clubs from the three racing codes of thoroughbred, greyhound and harness would be working in unison on the new deal.
“We are working to make sure all clubs and codes are part of the future broadcast,” Parnell said.
“There are always tensions between clubs when we go through renewals. We want to make sure we do the best thing for all racing clubs.”
Parnell said they wanted a free-to-air presence and said the governing body was open to any length of deal should the right terms be met while expecting a significant increase in revenue.
“We are open to all sorts of terms, it just depends on the value and who wants to acquire them,” Parnell said.
Sky Racing have the first opportunity to negotiate a contract but the time for rival networks to enter discussions with Racing Queensland are imminent.