Greyhound racing woke up this morning to the news that will shake it to the core. Entain and ARC have agreed a five year partnership deal on horse and dog racing. A significant strike surely in the media rights war?
Personally, I am not so surprised. It has been rumoured for ages. Think it through. ARC own 16 horserace courses (with a business partnership for five more – ie TRP). Entain have around 3,150 betting shops, roughly 40% of the retail market.
A deal was always in the best interests of both.
Should we be surprised that a significant shareholder in SIS has prioritised self interest? Of course not. Hills did something similar when agreeing to sell Newcastle and Sunderland dog tracks to ARC.
What did surprise me, was the timing.
The Entain/SIS deal is to the start of 2024 and I for one didn’t expect the jousting to start for at least another two years. But – boom!
So – what are the implications?
In the first instance, very little. The ripples will disperse and the pond should remain calm for the next 18 months or so.
But by News Years Day 2024, this is certain to be a very different industry.
The ’12 track industry’ becomes a reality (it might even be 10). But before any of the knuckle draggers reach for their keyboards with conspiracy theories about ‘always the bookmakers plan’ – don’t flatter yourselves.
This is about horse racing – not dogs. We are not that important!
The Entain board will be looking at maintaining share prices with a five year deal for horseracing – possibly for a sale. A recent sale of the company fell through as the globe’s bigger gambling and gaming sharks circle around devouring each other. The fate of a third of greyhound tracks will not have entered their thoughts.
But the maths don’t take a lot of working out. ARC own four tracks (Newcastle, Nottingham, Perry Barr and Sunderland). Entain own four (Crayford, Hove, Monmore, Romford).
If the magic number really is twelve – as calculated in a previous Editors Chair – that leaves four slots. Choose four from the remaining ten tracks.
Immediately you see the elephant in the room. It was always obvious to me that LadbrokesCoral (as they used to be called), always had enough clout to broker a deal, even in the event that they found themselves on the losing side in the media rights conflict.
That is how wars invariably end. Those with the clout negotiate terms beneficial to themselves. “We are prepared to change sides for favourable terms’”
While the remaining SIS tracks will be feeling the most heat, there will be a few independents in the ARC camp who will be wondering how deep the loyalty lies.
Also obvious to me, is that there won’t be a clear winner in this.
Will the likes of William Hill (now owned by the giant American ‘Caesar’s betting organisation), Bet365 and Paddy Power/Betfair be willing to see SIS melt away?
In the first instance, the SIS portfolio is a lot bigger than just greyhound racing and extends to multiple international on-line deals. Secondly, that would be like saying to ARC, ‘we’ll hand you a monopoly to charge as much as you like for your product.’
This is particularly relevant going forward where on-line is growing and High Street retail is declining. Unfortunately for SIS, (and greyhound racing) our income is still based roughly 8:1 in favour of the shops.
Before looking at the long term prospects, it is worth pointing out that whatever my personal relationships are like with ARC and Entain (luke warm and non-existent in that order), they are not responsible for my dismal predictions.
In fact, it is nailed on that had ARC not teamed up with GMG three years ago, we would probably already have a 12 (or 10) track industry.
However you view it though, I cannot see a rosy future for greyhound racing in Britain. I have never believed that a 12 (or 10) track industry is sustainable. At least not in the sort of form that I think most of us would want to be engaged.
There simply wouldn’t be the volume of greyhounds, tracks and enthusiasts to produce anything other than ‘wall-to-wall BAGS racing’.
Imagine if football was dependent on a Premier League of 12 (or 10) clubs.
Sure the industry could be financed. ARC/Entain could probably produce a sound business model (I’m sure they have an army of accountants spread between them), to produce a workable breeding, racing and retirement plan.
But nobody reading this article is in the greyhound industry for monetary gain.
If you are, you are an idiot.
Take away the special nights, proper betting, trophies, and dreams, and there is nothing left.
I’m sure others will view it differently. And it has never been easier to find a journalist or broadcaster or write or broadcast what they are told.
But would I be want to be breeding a dog for the 2024 English Derby? Probably not. (Bear in mind you’d be at the serious planning stage already).
Would I want one of my kids to be planning a future in the greyhound industry? Not a chance!
I’ve had probably 20 messages and phone calls today and without exception, everyone feels the same. Absolute dejection.
Greyhound racing celebrates its centenary in five years time and I’m not sure how many of us will be around to see it.
