I read that bookmakers are facing the prospect of profit warnings because of heavy losses on the football over recent weeks. Possibly, but I'm a layer of that.
The old "struggling bookmaker" line is (of course) one of the oldest tricks in the turf accountant text book - as punters are encouraged to bet more having fallen for the idea that somebody else is the mug for a change. Not for long.
This PR puff story tends to surface each year, and only the details vary. One of the more imaginative efforts came in 2005, when William Hill blamed the Racing Post's chief tipster Tom Segal for its woeful first half.
Did punters' luck hold out? Of course not. When Hills eventually reported its full year numbers, both turnover and profit had experienced healthy hikes. What price on the same happening again?
Showing posts with label Racing Post. Show all posts
Showing posts with label Racing Post. Show all posts
Monday, 5 October 2009
Monday, 2 March 2009
Wanted: heavy to stop the levy running dry
The Secretary of State for Culture, Media and Sport is advertising for a new chairman of the Horserace Betting Levy Board - the body that decides how much of the bookmakers' profits go to racing each year.
This is always a contentious issue (and relations between racing and the bookmaking industry are getting increasingly acrimonious) as the bookmakers always argue they should be paying less, while racing (obviously) presses for more.
For eight to ten days a month the successful candidate can earn £63k a year, which may not be enough to referee this ongoing scrap.
As the job ad says: "The new Chair [sic] will be an excellent negotiator and problem solver." You can say that again.
This is always a contentious issue (and relations between racing and the bookmaking industry are getting increasingly acrimonious) as the bookmakers always argue they should be paying less, while racing (obviously) presses for more.
For eight to ten days a month the successful candidate can earn £63k a year, which may not be enough to referee this ongoing scrap.
As the job ad says: "The new Chair [sic] will be an excellent negotiator and problem solver." You can say that again.
Wednesday, 21 January 2009
Racing Post hits another hurdle
What is happening at the Racing Post, the turf bible that was bought from Trinity Mirror by Irish private equity group FL Partners for £170m in 2007?
Around £120m is thought to be debt, with the remainder equity, but as the paper's circulation (and value) supposedly takes a tumble there are constant rumours in the industry that banking covenants may be about to be strained (denied by FL).
That fence might be easily negotiable if, for example, one's bank is riding the financial crisis well itself. So which lender provided the debt financing for FL's Racing Post deal? Step forward Anglo Irish (which was nationalised last week).
Around £120m is thought to be debt, with the remainder equity, but as the paper's circulation (and value) supposedly takes a tumble there are constant rumours in the industry that banking covenants may be about to be strained (denied by FL).
That fence might be easily negotiable if, for example, one's bank is riding the financial crisis well itself. So which lender provided the debt financing for FL's Racing Post deal? Step forward Anglo Irish (which was nationalised last week).
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