LONDON — Go Racing, the consortium comprised of Channel 4, satcaster BSkyB and racecourse owner Arena Leisure, plans to launch a pay-TV horse racing channel in April 2002 in a deal worth up to £400 million ($560 million).
A final agreement with the U.K.’s race courses is expected to come later this week.
As well, the BBC has a 30-day option to take a 5% stake in Go Racing. Premium TV, a subsid of cabler NTL, has an option for 10%.
The channel — for which the business plan is betting — will be carried by Sky Digital, a digital terrestrial TV service from C4 and NTL.
Go Racing has bid $175 million for the TV rights to U.K. horse racing for ten years and pledged $112 million to market the sport.
The consortium has promised the industry a minimum of $273 million over the next 10 years, with a predicted return to the sector of $1 billion.
One condition on the deal is Arena raising $84 million in backing by the end of June. The company is expected to announce plans to raise $119 million in funding through a share offering.