SOURCE: TVG

TVG

February 18, 2015 09:59 ET

TVG & The Stronach Group Join Forces for Televised Horseracing

LOS ANGELES, CA--(Marketwired - Feb 18, 2015) - Betfair's TVG subsidiary and The Stronach Group today announced a landmark transaction to improve the quality and quantity of televised horseracing in the United States, capitalizing on The Stronach Group's investment in an enhanced racing experience and TVG's investment in state-of-the-art high definition television capabilities. Under the deal, TVG will assume the operations of HRTV, which will be operated from the TVG Studio complex in Los Angeles. The unified television operations will feature races from Santa Anita, Gulfstream Park, Pimlico, Laurel Park, and Golden Gate Fields over a seven-year period, as well as additional premium domestic and international racetracks. 

The agreement paves the way for more than 5,000 additional races from US tracks to be broadcast over the two networks. Via cable, satellite and telco distribution, TVG is currently available in 36.5 million US homes and HRTV is available in 19.5 million US homes.

"This is a very exciting step for TVG and HRTV as it enhances our ability to deliver premier horseracing content to our viewers, to show more races and to promote racing in the US," said TVG CEO Kip Levin. "With our recent investment in our new, state of the art, HD studios now complete, we're pleased to expand our coverage of The Stronach Group tracks as part of a unified TV platform. This agreement is part of TVG's commitment to deliver the very best in US racing, to generate incremental wagering on our advanced-deposit wagering platform and, to drive additional advertising and distribution opportunities."

"Combining the significant investments we have made in our facilities and racing content with TVG's significant investments in television technology and distribution is the best way forward for ensuring a world class experience for all of our important customers and our fellow stakeholders in racing," said Alon Ossip, CEO of The Stronach Group.

The two networks will be able to show more live horse racing, officials indicated. Today TVG telecasts approximately 27,000 races per year, and HRTV shows approximately 16,000, with significant overlap and many races on tape delay due to scheduling conflicts. TVG officials estimate that the two networks will be able to broadcast live approximately 40,000 races per year -- over 5,000 additional new races than are shown today. The networks will merge operations over the next several weeks.

Betfair will make an initial payment of $25 million and estimates that it will pay further consideration totaling $47.8 million over the seven-year period, although the total consideration is dependent upon TVG's future handle. Based on projected future cash flows, the present fair market value of these payments is estimated to be $56.3 million. In the last twelve months, under previous agreements, TVG paid $4.3 million in television fees to HRTV related to television content, including The Stronach Group racetracks, for which HRTV has held exclusive rights. This transaction eliminates the need for TVG to pay those television fees.

Following the transaction, Betfair will own 100% of the equity in the unified television operation. The transaction does not include XpressBet, the advanced-deposit wagering company owned by The Stronach Group.

TVG, a subsidiary of Betfair Group plc, the premier e-gaming betting community, is among the most widely distributed horseracing networks in the world. TVG is one of the largest legal online gaming companies in the US, accepting over $1 billion in wagers annually. The company has demonstrated its commitment to the racing industry, its owners, tracks and fans through sponsorship of several preeminent races including the TVG Pacific Classic and TVG Super Saturday.

HRTV, The Network for Horse Sports, is a television-based multimedia network dedicated to equine sports. HRTV's programming features horseracing from top U.S. and international racetracks, as well as a wide range of world-class English and Western horse competitions, news, original programming and award-winning documentaries covering the world of horse sports. The live stream of HRTV is available on a subscription basis to high-speed Internet users worldwide at www.hrtv.com. In the U.S., the HRTV television network is available via telco, cable and satellite in over 19 million homes.

The Stronach Group is North America's leading Thoroughbred racetrack owner/operator. The Stronach Group racetracks include Santa Anita Park, Gulfstream Park & Casino, Golden Gate Fields, Portland Meadows, Laurel Park and Pimlico Race Course, home of the world-famous Preakness. The company owns and operates the Palm Meadows Training Center in Florida, and is one of North America's top race horse breeders through its award- winning Adena Springs operation. The Stronach Group is one of the world's largest suppliers of pari-mutuel wagering systems, technologies and services. Its companies include AmTote, a global leader in wagering technology; XpressBet, an internet and telephone account wagering service; and Monarch Content Management, which acts as a simulcast purchase and sales agent of horseracing content for numerous North American racetracks and wagering outlets.

Contact Information

  • Contact:
    TVG
    John Hindman
    (310) 242-9520

    The Stronach Group
    Scott Daruty
    (626) 574-6322