Racing authorities want out of Sky Channel broadcast deals

Australia's greyhound racing authorities are considering taking back control of their broadcast rights in a move that will pile more pressure on Tabcorp-owned Sky Channel.

Industry sources, who spoke on the condition of anonymity because the talks are confidential, said Greyhound Racing NSW, Greyhound Racing Victoria and Harness Racing Victoria are all eager to explore deals away from Sky.

Any such move will put another dent in Tabcorp's media division, which is already fighting to keep its NSW horse racing overseas broadcast rights out of the clutches of a consortium led by Seven West Media boss Tim Worner.

Racing authorities are becoming frustrated with Tabcorp over its demerger.Credit:Alamy

Greyhound Racing NSW is in contract talks with Sky after its deal expired at the end of last year. Sources said the authority understands the value of Sky coverage, but wants to take back its international rights.

The Australian reported last week that Racing NSW has hired former Seven West Media boss Tim Worner to broker a broadcasting deal in North America, a move which would end its relationship with Tabcorp.

Greyhound NSW has limited exposure to international markets under deals negotiated with Tabcorp and believes it would be able to do better deals in Asia and the American markets.

Harness Racing Victoria and Greyhound Victoria also want to end their relationships with Tabcorp. Both contracts have years to run, but the two authorities are looking to team up with Racing Victoria-owned Racing.com in future broadcast deals.

Tabcorp declined to comment.

The company is demerging its strongly performing lottery division, which posted a record financial result for the first fiscal half last Thursday, from its wagering arm in a $10 billion transaction which should be completed by June.

Insiders from the three NSW racing codes said they were frustrated and concerned about a lack of clarity from Tabcorp about the de-merger and its impact on racing bodies in Australia.

One industry source said the racing bodies in contract negotiations with Sky felt they had a "gun to their head". If they didn't give Sky all rights to their content - including international and digital - they would be punished domestically by being dropped from channel Sky 1 to Sky 2, they said.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.