Posted 2/5/11 : GBP50 million bonus in prospect
Conservative estimates that the British government's sale of the Tote gambling group will realise around GBP100 million in net profit will see the British horseracing industry benefitting by GBP50 million, according to reports in the UK media as the week ended.
The cash bonanza would flow from the government's undertaking to donate half the net profits of such a sale to the industry, a promise confirmed in a recent official statement that read: “…in the event that the Tote is sold on the open market, it [the government] will honour the commitment of the previous government to share 50 percent of the net cash proceeds of sale with racing."
The British Horseracing Authority has greeted the confirmation with enthusiasm, with chairman Paul Roy telling media this week: “Racing welcomes the Government’s latest steps in resolving the future of the Tote, and particularly that Racing interests are central to a successful outcome. We look forward to continuing to work closely with Government to get the best outcome for the sport.”
The short-list of acceptable bidders is currently awaited from the government's agents in the sell-off initiative, with bidders said to include the Reuben Brothers, Betfred, at least one private equity group and Gala Coral.