TVG breaks off talks with Churchill to carry races

By: Gregory A. Hall, The Courier-Journal - ghall@courier-journal.com

The account wagering television channel TVG announced this evening that it is cutting off negotiations with Churchill Downs Inc. over new contracts to carry the company's races.

The network, broadcast locally on Insight cable channel 57, said instead that it will devote more programming, production and promotions to non-Churchill tracks, citing the Louisville based racetrack operator's downsizing.

"We were seeing continued growth in our television distribution and account wagering handle, as (Churchill Downs Inc.) continued to divest of racetrack properties, diminishing its importance to our business," David Nathanson, TVG's General Manager said in a statement.

In recent years, Churchill has sold - or announced it planned to sell - Hollywood Park in California, Hoosier Park in Indiana and Ellis Park in Henderson, Ky.

TVG said wagering by its subscribers on Churchill races has dropped from more than 30 percent of its total wager to under 13 percent.

Nathanson said he regretted that the decision could make it harder for people to bet on Churchill races.

TVG said it will continue to show races from Churchill tracks until contracts with each of those individual tracks expire.

Churchill Downs Inc. has expressed frustration with all of its tracks' arrangements with TVG, which expire at various points through April 15, 2008. The contract with the flagship Louisville racetrack expires next month, well before its spring meet starts at the end of April.

Churchill officials previously had told investors they plan to re-examine how the company approaches account wagering, which is the fastest-growing segment of the pari-mutuel market. But Churchill executives have not elaborated on what form that would take. Possibilities included continuing with TVG, partnering with someone else or forming its own account-wagering service.

"We are fully exploring our options going forward with regards to television and account-wagering rights" Churchill said in a statement. "We will make our plans public in the near future and will work diligently to ensure a seamless transition for our customers."

Source: The Courier-Journal Web site (02-15-07)