TVG Halts Negotiations with Churchill Downs

[muskatel]

Keenland and Monmouth seem to be the winners...don't like to see Churchill lose its "shelf space".

TVG Halts Negotiations with Churchill Downs
Thursday February 15, 6:00 pm ET

Network Plans Major Reallocation of Television Programming and Wagering Contributions


LOS ANGELES--(BUSINESS WIRE)--TVG, America's Horseracing Network, announced today that it has discontinued negotiations on extending its television and advance deposit wagering contract with Churchill Downs Incorporated ("CDI"). Concurrently, the network announced plans for a significant reallocation of its television programming, production and promotional resources as well as advance deposit wagering contributions to prominent racetracks and horsemen throughout the United States.


"Nearing the end of a ten-year relationship with CDI, we were seeing continued growth in our television distribution and account wagering handle, as CDI continued to divest of racetrack properties, diminishing its importance to our business," said David Nathanson, TVG's General Manager.

Over the past two years, CDI has sold, or announced pending transactions to sell, Hollywood Park, Hoosier Park and Ellis Park. Correspondingly, the share of wagering by TVG subscribers on CDI's owned tracks plunged from over 30% of TVG's total wagering to less than 13%, including wagering on Kentucky Derby day.

"We respect our relationships with horsemen and racing fans at CDI tracks and sincerely regret that they may not be able to easily access CDI races on television, wager on CDI races on TVG's wagering platforms, or share in purse revenue generated from TVG's advance deposit wagering and source market fees following the expirations of our current agreements with CDI," Nathanson said.

This spring, TVG plans to reallocate its programming 'shelf space' to Kentucky's Keeneland Racecourse, offering the highest daily race purse levels in the United States; New York's Belmont Park, home of more Grade 1 stakes races than any other racetrack in the United States including the Belmont Stakes; Southern California's Hollywood Park, home of the American Oaks and Hollywood Gold Cup; and Monmouth Park, the venerable Jersey Shore racetrack that is TVG's newest exclusive track partner and home to the 2007 Breeders' Cup World Championships.
TVG is the most widely distributed horseracing network in the world, reaching nearly 20 million U.S. households in all 50 states via the leading cable and satellite distributors and up to an additional 30 million homes through its partnership with Fox Sports Net (FSN). TVG recently announced a partnership with At The Races, to distribute its programming to 11 million households in the U.K. and Ireland.

"TVG is committed to racing fans and will continue to deliver to our audience the best horseracing lineup on television" added Nathanson. "No one else can match our broad distribution, premium television coverage or extensive account wagering handle. Our growing list of racetrack partners and their horsemen will be the primary beneficiaries of our growth."

TVG's exclusive contracts with CDI's Louisville and New Orleans racetracks both expire in early 2007. Its exclusive contracts with CDI's racetracks in Illinois and Florida expire in later 2007 and in early 2008, respectively. TVG has committed to showcase the remaining CDI tracks through the end of their term.

About TVG

Available in nearly 20 million homes in the United States, and 11 million homes in the United Kingdom and Ireland through its partnership with At The Races, TVG is the leading sports television network that combines the excitement of live horseracing from premier racetracks and the convenience of in-home, account wagering. In addition to live horseracing, TVG features commentary, interviews, in-depth race analysis, handicapping and wagering tutorials, and originally produced programming for racing's major events. Viewers in certain areas can wager interactively on the races via telephone, the Internet, TVG Mobile or Interactive Television by establishing a wagering account online at www.TVG.com or by telephone at 1-888-PLAY-TVG. TVG also offers TVGfree.net, a "play-for-fun" educational website designed to cultivate new horseracing fans, provide information about playing the races and give users a no-risk chance to compete for daily prizes and TVGFantasy.com, a year-round competitive sports fantasy game where users build their own stable of horses, jockeys and trainers to compete for prizes. TVG is the official TV and Interactive Wagering partner of the National Thoroughbred Racing Association (NTRA).