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Because the Tote have a legally binding monopoly on pool betting in the UK.
Earlier attempts at selling the Tote were accompanied by statements that the monopoly would be ended, either at the time of the sale, or a few years thereafter. Not sure whether that’s still the case this time round.
Ironically, greyhound racing is exempt, although the tracks have killed Tote betting at the dogs by continually increasing the percentage takeout.
AP
Because the Tote have a legally binding monopoly on pool betting in the UK.
Earlier attempts at selling the Tote were accompanied by statements that the monopoly would be ended, either at the time of the sale, or a few years thereafter. Not sure whether that’s still the case this time round.
Ironically, greyhound racing is exempt, although the tracks have killed Tote betting at the dogs by continually increasing the percentage takeout.
AP
I thought there must be a good reason. I’d be interested to know how they managed to get round European competition law on that one.
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Is there any possibility the Government will take into account the BHA’s decided preference for the SIP bid over Fred Done? Or is it, excuse the pun, a Done Deal?
Cav , without doubt the baldy one will get it , I have always predicted that , from then on its bye bye American pie ….
The only remaining thing is for Roy to go , and maybe a few more of his cohorts as well
Its a scandal , racing had a big chance to seal its own destiny and as always it has failed miserably ….the begging bowl is the only way forward , but it wont be in their hands to provide their own destiny , as always it will be the bookies who decide who and what and where , make no mistake , the Bha will be a ruling body in name only , the real powers will rest with the suits who finance it
cheers
Ricky
Tuffers,
I don’t think European competition law was a major consideration back in 1929 when the legislation was passed through Parliament.
AP
Neither option can really be considered good for racing, can it ?
I’m sure I’ve read somewhere that Broughton conditionally pledged to float the Tote on the Stock Market, 24hrs after he’d secured it.A privately run Tote could actually be good for racing in one sense. The current Tote is a white elephant in many respects; or a shadow of what it could be at least. However since neither party has made public their ‘profit return to racing’ model, it’s obviously going to be a disaster for the sport.
Tuffers,
I don’t think European competition law was a major consideration back in 1929 when the legislation was passed through Parliament.
AP
European law would take precedence over any incompatible domestic legislation (even retrospectively) so I’m assuming there is some exemption that has been claimed. It would be ironic if the BHA successfully used the European Court to overturn the monopoly bearing in mind it was that Court which found against the BHB in the William Hill case.
True to form, it seems the City Boys bid for The Tote has plenty of smoke and mirrors attached. Mark Davies http://www.markxdavies.com/ in his fine blog reckons that when the £11 million per annum payment surface is scratched, the Broughton bid is worth about £45 million less to the Racing industry over the seven years of the license, than the Betfred offer.
Broughton and his pals want Racing to give up the 50/50 upfront payment in exchange for a seat on the board and the bid is apparently reliant on £50 million of debt funding (we all know how that worked at Liverpool FC).
This is the bid supported by Paul Roy and his mate Andy Stewart.
"When our state-owned bookie is sold, the race to the bottom will begin", writes Neil Clark.
"http://www.guardian.co.uk/commentisfree/2011/may/24/tote-sell-off-horseracingThe " prevented the link from working (I think). Hope it does now.
http://www.guardian.co.uk/commentisfree … orseracingI never thought I’d say this, Cav, but I’m backing Baldfred.
This might come back to haunt me – supporting a bookmaker often does, as the sport has found out to its cost since 1961 – but I just don’t trust the Canary Wharf mafia. Does anyone trust financiers any more?
The sacrifice of the upfront payment set alarm bells ringing and now the Davies blog confirms the presence of more smoke and mirrors which – in true sorceror’s fashion – is well above my head.
So Paul Roy supports the Broughton bid as good for racing. Let’s look at one of his recent decisions.
The partial Betfair flotation.
This has gone badly wrong. Investors are currently looking at a fluctuating 40% to 50% loss of their original stake. Paul Roy was one of these investors,
despite
steering the BHA into a confrontational position with Betfair not a month before making his investment.
An investment which inspired calls for his head from just about everyone. In true Sepp Blatter style, he defied his critics and stayed in post.
Fair enough. But for every percentage point shareholders lose as the Betfair price collapses, the all-seeing eye of the City will be looking greedily at Betfair’s £7m "voluntary" Levy payment.
If the price continues to plummet, it’s likely that Betfair will pull out of paying the Levy to boost profits, thus making the share price more attractive to investors. David Yu has already discussed this with his City backers and non-executives.
If this happens, Paul Roy will then be in the quite bizarre position of being part of an organisation which will deprive racing of nearly seven million pounds a year and yet increase the value of his own portfolio. I don’t trust this kind of thinking or this kind of ethical position. Actually, I wouldn’t trust this bloke to tell me whether Forgotten Voice had eaten up at morning stables.
So the fact he supports the Broughton bid, on balance, swings the Max pendulum the other way. Not happy about it – I’m no fan of Betfred either – but there it is. Plus, all the "backers" of the Broughton bid are going to make lots of money and they aren’t guaranteed to put it back. I don’t think I could stand the champagne corks and smiles.
I see they’ve delayed the decision again?
Betfred will get it, the jobs at Warrington will swing it for them and if Fred Done is putting up £200 million, he’ll be wanting it back with interest, quick-style.
The one off payment will take care of the 0.001% of politicians who may just have a guilty conscience over this grand sellout of racing.
Freddie has his H O in warrington. The Totes is just down the Rd in Wigan. So he would have us believe the hundreds of jobs in Wigan are safe. Sure thing. He is going to have two HQs then?
And he will not close any shops. Yer right. So we will have many instances of two BetFreds on the same High St then?
The amount he will contribute to racing from the Tote. goes up week on week
Sometimes I think our fred is a bit elaborate with the truthBetfred will get it, the jobs at Warrington will swing it for them and if Fred Done is putting up £200 million, he’ll be wanting it back with interest, quick-style.
The one off payment will take care of the 0.001% of politicians who may just have a guilty conscience over this grand sellout of racing.
Freddie has his H O in warrington. The Totes is just down the Rd in Wigan. So he would have us believe the hundreds of jobs in Wigan are safe. Sure thing. He is going to have two HQs then?
And he will not close any shops. Yer right. So we will have many instances of two BetFreds on the same High St then?
The amount he will contribute to racing from the Tote. goes up week on week
Sometimes I think our fred is a bit elaborate with the truthHe’ll almost certainly close the head office in Wigan should he win the bid UNLESS he plans to upgrade the Tote computer system in which case Totesport HQ will end up being an IT hub. God knows the system could do with it.
I do have to correct you with regards to him having two shops on one High Street though. Manchester may be a special case in that there are bookies every fifty yards but in the city centre there are two Freds within a minutes walk of each other, another one two minutes away from that. I think there’s five altogether.
It’s madness in the city. There’s Paddy Power, Ladbrokes, Hills, Betfred & Corals all around one square. So I don’t think he’ll close any shops.
Looks like we’ll have a decision by Thursday.
http://www.guardian.co.uk/sport/blog/20 … -broughton
Betfred, the lesser of two evils by the looks of things, although I cant help feeling it will be a bad day for racing whichever gets it. Is racing’s great chance to sort itself out financially gone for good?
Paul Roy should be thoroughly ashamed of himself supporting the Broughton bid, if the Mark Davies figures are anything to go by.
I am a regular subscriber to the Tote Placepot and, as I haven’t been following the current negotiations, would appreciate if somebody could tell me what each bidder would plan to "take out" of the daily pools? This currently stands at a mind boggling and scandalous 27%.
Sometimes the one with the worst ‘smell’ is the inevitable winner; that’s the feeling I have in this case.
For me, the intention of Broughton’s SIP bidders to float on AIM (Alternative Investments Market) begs the question ‘are they looking to get back borrowed money?’
I get the feeling that SIP has simply aimed at a quick return as their priority … I think the business of running the Tote appears as a mere appendage, which perhaps someone other than the initial (new) owners can forget about.
SIP’s proposals seem to me to lack honesty & commitment.
Of course, we might never know ….
As for Mr Done: well, he’s there to make money but at least he’s apparently pledging funds to racing.
All in all, this whole Tote divestment is a cock up.
Unfortunately, a management buy-out was scotched: any other management than the ones in place might have got the nod.
All ‘in my opinion’, of course.
Racing & business? Oil & water.
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