The Minister for Finance Charlie McCreevy's offer of permanent and increased funding for Irish racing in return for a merger of the industry's organisations has received a cool response from the racecourses organisation who have described some of his proposals as "not realistic".
The Association of Irish Racecourses yesterday emphasised their determination to hang on to their media rights and stated: "It is self evident that racecourses must retain the freedom to maximise the revenue from all aspects of their business. They should not be dependent on the decision of a third party as to the level of financial subventions they may receive in any one year."
The Minister has offered the financial "carrot" of the entire off course betting tax, estimated at close on £50 million, for racing if the industries' various interest groups agree to much closer co-operation. The Turf Club's response has been generally positive but yesterday's statement by the AIR was less so. The media rights, currently estimated by the AIR to be worth £1.7 million, are viewed as their trump card and their statement said yesterday: "At a time when racecourses must service and repay loans in the region of £40 million, drawn down in respect of the recent Capital Development Programme, the proposal that they should give up their income from media rights is not realistic."
The association's spokesman Frank Smyth welcomed the Minister's efforts to introduce permanent funding for racing but questioned the underlying theme that there is an underlying duplication in how racing is currently administered. He said such duplication is "minimal". The AIR statement said the current system allows the 27 racecourses in Ireland operate as independent businesses, allows the Turf Club maintain the integrity services, allows the IHA function as set out in the 1994 IHA act and allows transparency in the allocation of fixtures. "It is difficult to see how any of the above elements, which are fundamental to the well being of the racing industry, can be retained under the present proposal," the statement said.
Smyth expanded on that and said: "Racecourses need an incentive and media rights help give them that. Income from media rights are a major help towards meeting commitments entered into and any future commitments. Racecourses have a constitutional right to those media rights and each racecourse should be left to run its own business." A spokesperson for Minister McCreevy, who is on record as saying he would be amazed if racing did not jump at the chance of increased permanent funding, said he welcomed the AIR offer for further talks on the issue. However, he would not comment on the specifics of the statement.
