Ladbrokes take first step to terminating $19 million sponsorship deal with Greyhound Racing NSW

Ladbrokes are poised to walk away from its $19 million sponsorship deal with Greyhound Racing NSW.

Entain Australia boss Dean Shannon

THE one-time impenetrable partnership between Ladbrokes owner Entain Australia and Greyhound Racing NSW (GRNSW) is on life support.

Earlier this week, the wagering giant issued GRNSW with a notice, signalling its intention to explore a potential breach of contract.

The move is the first step towards the possibility of Ladbrokes walking away from its exclusive and lucrative $19 million sponsorship deal which includes signage at all NSW greyhound tracks, naming rights to the sport’s biggest races including the Million Dollar Chase, along with other key initiatives aimed at increasing animal welfare and benefits to participants.

For more than a decade, Ladbrokes has remained a staunch supporter of NSW greyhound racing, pouring tens of millions of dollars into the industry via a range of club and participant focused initiatives.

That support was no better highlighted than during the NSW Government’s proposed ban of the industry in 2016.

Instead of cutting ties, Ladbrokes doubled down on their support, committing significant resources to aid the industry in navigating the most turbulent of times.

Wentworth Park, the centrepiece of NSW greyhound racing, is at the heart of Ladbrokes’ commitment to NSW greyhound racing

But in the past year, the once indestructible partnership has begun to deteriorate.

In June last year, GRNSW announced amid much fanfare that a “landmark 10-year multimillion-dollar agreement” had been signed with Ladbrokes “which was the most significant penned in greyhound racing history”.

But the deal eventually inked was only for three years with a further two year option after major cracks began to emerge during the latter stages of negotiations, forcing the contract length to be halved in a bid to get a deal done.

The contract was the first time GRNSW had led negotiations with Ladbrokes after the commercial body had lobbied to bundle the clubs together under a collective agreement with a belief it could better maximise returns.

Before that, wagering operators, most notably Ladbrokes, had brokered deals with NSW greyhound clubs on an individual basis.

It was these contract deliberations that first sparked the disharmony, with a series of subsequent adverse events leading to Ladbrokes issuing this week’s intention to provide a “Breach Notice”.

Earlier this year, the concerns of Ladbrokes intensified again when News Corp revealed that NRL player agent Daniel O’Loughlin had been paid in the vicinity of $900,000 by GRNSW from the proceeds of the sponsorship for “facilitating the deal” between the two organisations.

READ: NRL player agent pockets $700,000 for broking GRNSW sponsorship deal with betting business

GRNSW Chief Commercial Officer Rachel Bessis was quizzed at length about O’Loughlin’s involvement in the Ladbrokes contract negotiations during her evidence to the parliamentary inquiry (Drake Inquiry) into GRNSW’s operations last month.

The future of the partnership between Ladbrokes and Greyhound Racing NSW is in doubt

During evidence, Bessis, when responding to questions as to why the deal took so long to finalise and O’Loughlin’s involvement, suggested it may have been a “strategic misunderstanding by Ladbrokes (to delay) to not pay as much”.

It’s understood the comments incensed Ladbrokes officials who had always acted in good faith, demanding answers from GRNSW hierarchy, which until recently, had gone unanswered.

But in what has been described as the “straw that broke the camel’s back” has been GRNSW’s failure to honour what Ladbrokes believe to be its contractual obligations in regard to a legacy rug sponsorship.

When last year’s new deal was signed, Ladbrokes believed the contract stipulated that the racing rug sponsorships GRNSW had with six rival wagering operators would cease this month and revert exclusively back to Ladbrokes.

But in the countdown to the proposed changeover, that date was pushed out to mid-2025 by GRNSW, with Ladbrokes refusing to budge on the matter, ultimately leading to a standoff and the intentions for a “Breach Notice” being served.

Entain Australia boss Dean Shannon was asked for comment but declined due to the legal nature of the situation.

In response to the matter, GRNSW Acting CEO Wayne Billett said “we are aware of a recent issue that has emerged relating to the sponsorship arrangements with a trusted commercial partner. We are working constructively, and urgently, with them to find a resolution.”

Originally published as Ladbrokes take first step to terminating $19 million sponsorship deal with Greyhound Racing NSW