Newbury to increase prize-money investment thanks to new media rights deal

Newbury racecourse has said its new media rights deal will allow it to increase its commitment to prize-money significantly from 2023 onwards.

The news came as Newbury outlined its recovery from the impact of the Covid-19 pandemic in its preliminary results for 2021, which were published on Thursday.

Newbury's betting shop media rights are set to switch to The Racing Partnership from April 2023, and it will move to Sky Sports Racing from Racing TV from the start of 2024.

Racecourse chairman Dominic Burke said: "From 2023, when our new media rights arrangements come into effect, we will be significantly increasing our investment into prize-money and will be committing to invest a minimum of 40 per cent of total media rights income into prize-money. This will then be reviewed three years from now."

Newbury, which has received criticism over the level of its prize-money, had overall media and betting rights revenues of £4.38 million in 2021 from its current deal with Racecourse Media Group.

The course returned to an operating profit in the year of £0.20m, compared with a loss of £2.29m in 2020, while turnover increased by 75 per cent to £14.83m.

Dominic Burke: 'The fact that we are able to report a pre-tax profit for the year is of significant importance'

Burke said: "Following the challenges presented since March 2020, I am delighted that both the horseracing industry and our business has finally returned to normal activity.

"In the early part of 2021, we were only able to generate income during the behind closed doors meetings through our media and betting rights agreements and lost the significant benefit of being able to generate key revenues through catering and hospitality."

Burke described the size of crowds as "encouraging" in the latter part of the year after the lifting of government restrictions on paid attendance at racedays in July.

He added: "Despite this positive development, the impact of the financial operating losses from 2020 and the first half of 2021 were substantial and has set the business back from its original strategic investment plan, so we have needed to adapt the business accordingly.

"The fact that we are able to report a pre-tax profit for the year is of significant importance."

Burke said an agreement with Levy Restaurants to become Newbury's catering partner and the course's new media rights deal were "expected to improve the financial performance of the company".

The course is also set to pay a special interim dividend to shareholders of 89.6 pence per share next month.

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