Relations between Kilbeggan racecourse and HRI have 'broken down' over media rights deal

The body representing Kilbeggan and four other small racecourses have rejected the media rights deal negotiated by Horse Racing Ireland (HRI) and say relations have “broken down” between the organisations.

United Irish Racecourses (UIR), which represents Kilbeggan, Thurles, Limerick, Sligo and Roscommon racecourses, has “expressed grave reservations about the inequitable distribution of funding under the proposed deal,” and has appealed to the Minister for Agriculture Charlie McConalogue to intervene. The deal negotiated by HRI, with broadcaster Racecourse Media Group (RMG) and Sports Information Services (SIS) was expected to be signed yesterday, Tuesday, May 9.

The new five-year deal, reported to be worth approximately €200 million to Irish racing over a five-year contract term, authorises RMG and SIS to hold the exclusive broadcasting, data and media rights for twenty-six racecourses across Ireland. It was due to commence in 2024 and included direct-to-home television rights until at least 2029. The media group was designated a “preferred partner” by HRI in October 2022.

In a statement released this week, UIR says that it has rejected the deal because of what it sees as the “inequitable” distribution of media rights funding to their members. HRI owned racecourses look set to earn seven-figures from the deal, with HRI expected to benefit directly to the tune of €7 million.

UIR says that trust between its members and HRI has “broken down” in light of HRI’s failure to make good on an undertaking in 2016, to facilitate an independent review of the allocation of media rights monies and to ensure that all monies derived from that deal would go towards current or capital expenditure. UIR says that to date HRI has “failed and/or refused” to commence this process.

UIR aso says that it signed the media rights agreement with RMG/SIS seven years ago by virtue of this undertaking, and because it “trusted HRI to deliver on its promise”.

In light of the breakdown in relations with HRI, UIR secretary Paddy Dunican has written to the Minister for Agriculture to request his intervention to address their concerns, so that small racecourses will receive the maximum market value for their media rights.

UIR is also requesting the minister to review the applicability of Section 10 of the Horse and Greyhound Racing Act 2001, which it contends “is unconstitutional and amounts to an infringement of the property rights of racecourse owners” and “bestows a sole right on the state agency to negotiate the property rights of each racecourse, a position that is constitutionally questionable”.

Speaking on Tuesday, UIR secretary Dunican, who is also the managing director of Kilbeggan Racecourse, said: “UIR racecourses has today decided to withdraw from a media rights agreement that simply does not represent the interests of the membership. Our concerns at the inequitable distribution of funding under these deals has not been addressed, despite pledges from HRI, to conduct a review into allocation, as far back as 2016.

“UIR wants what is best for racing and race-goers; parity of treatment, exposure of the sport, and enhanced attendances. To that end, HRI has an additional onus on it to derive the best possible deal, while transparently delivering value to all courses in a fair and equitable way.”