A GROUP of at least five racecourses are threatening to break away from the Association of Irish Racecourses over what they claim is an inequitable distribution of media rights income.

The discontented tracks, mainly smaller venues, are thought to be behind recent questions raised on the issue in Dáil Eireann as well as giving information to TDs and senators who quizzed Horse Racing Ireland officials about the topic at recent Oireachtas Committee sessions.

Labour TD Alan Kelly is the latest politician to get involved, asking the Minister for Agriculture “the steps he is taking to ensure that equitable funding is being given to the smaller horseracing tracks”. He expanded: “There are concerns about data and media rights and how they are being distributed and whether that is equitable.”

Minister for State Martin Heydon replied: “The merging of 26 racecourses for the sale of media rights has been key to delivering significant revenue increases over the past 10 years. While the details of the media rights allocated to racecourses is commercially sensitive, overall grade 2 tracks have seen strong growth since the last deal was agreed.”

Deputy Kelly persisted: “Since the transfer from the Turf Club, HRI’s take has more than doubled from 7% to 16%. The corresponding market rate in the UK is completely different from that in Ireland. Ultimately, the breakdown is such that the smaller tracks are not getting their fair amount of funding as a result.

“The reality is that HRI has mainly used racecourse revenue received through the media rights fixture charge on capital programmes on the four largest racecourses, two of which it owns, at the expense of smaller rural racecourses.”

Fixtures charge

Irish racing’s media rights are thought to be worth €40 million per year, which is significantly more than in previous deals. However, the current five-year deal with SIS includes a clause which allocates 16% of the payments to Horse Racing Ireland in the shape of a “fixtures charge” or data rights. The Irish Field has been told that in British racing the data rights only accounts for 2% of the deal.

Last month HRI chief executive Suzanne Eade told an Oireachtas Committee she was happy to stand over the current deal and was open to implementing an independent review of the deal in association with AIR.

The current media rights deal expires at the end of 2023.

Separately, the Oireachtas Public Accounts Committee plans to call officials from Horse Racing Ireland and the Irish Horseracing Regulaltory Board to a meeting in September to examine their financial statements from 2020.