Racing powerbrokers want administrator or auditor in TVN network

Patrick Bartley
Published: February 1, 2015 - 6:52PM

Some of Victoria's racing powerbrokers are still urging that an administrator or an auditor be placed into the beleaguered TVN network following its years of huge financial wastage.

With tens of millions of dollars already wasted during the network's time, senior officials believe that an administrator or an auditor will finally disclose the damage the racing broadcaster has caused.

While NSW and Victoria have decided to part company, the latter still remains searching for a suitable broadcaster of the Victorian racing pictures.

Just last week Fairfax Media revealed that the industry-owned broadcaster had not lodged a financial report since October 2012, when Harold Mitchell was still the chairman.

TVN reported a profit of $4.6 million for the year to June 30, but the audit report from Deloittes did note a "material uncertainty regarding continuation as a going concern".

The main concern was that the company's current liabilities exceeded its assets by $13.3 million as of June 30, 2012.

The current liabilities included $17 million worth of media rights it owed its shareholders and racing club members from 2007-08 that was "at call".

NSW managed to broker a deal on all levels including digital with Tabcorp after just two weeks of talks, something the Victorian race clubs could not achieve in two years.

Known now in sporting circles as "the dad's army" of negotiators, it's believed they are still hopeful of an alternative deal with Channel Seven and Foxtel.

However, Fairfax Media understands that the chances are now remote that any suitor outside of Sky Channel will be found.

As one senior executive said on Sunday: "This mob negotiating on behalf of Victoria can't get along with NSW let alone themselves when it comes to making decisions. We've got to see exactly how much wastage was caused. How disadvantaged are we going to be going forward. And Racing Victoria don't even have the rights, so it's the clubs that will have to find the money."

In one of the most amazing deals, Channel Seven broadcast on 28 race meetings for more than $2 million a year, a contract that will last another five years, with NSW and Victoria consenting to honour the contract by contributing $1 million a year.

Fairfax Media also understands that only three of the TVN on-air personalities – Jason Richardson, Michael Sharkie and Sydney journalist Brent Zerafa, who is also the editor of the associate website racing network – are the only ones under consideration by Sky Channel.

It is understood an administrator would be able to decipher the contracts made during the final years of TVN's existence.

"What we want to see is how much money will have to be paid out with staff already on exorbitant money and then do they have long contracts going forward that these clubs will have to honour?" the executive said.

"I think we are entitled as an industry to see where all of these millions and millions of dollars have gone," he said.

 Fairfax Media can also reveal that the newly elected state government is taking a dim view of the TVN train wreck and the enormous amounts of money that have been lost to racing.

The government is bemused that the vision and media rights are held by Country Racing Victoria, Melbourne Racing Club, Moonee Valley Racing Club and the VRC.

Privately it sees not only the performance of the four in failing the industry but also believes it could be the reason that a racing commission is created in Victoria.

Racing Victoria does not have any rights for vision and media, but the government has been impressed by its handling of the cobalt issue over the past three weeks.

It's believed that some of the state-of-the-art trucks used by TRP, the production arm of TVN, may well be kept back from a fire sale of assets to be used by racing.com.

One of the key negotiators with the four clubs is former AFL staffer Andrew Catteral.

Fairfax Media has learnt that Tabcorp is prepared to talk to the Victorian group. However, it appears that alternative suitors are being sought.

Just last week NSW signed a 10-year deal with Tabcorp and Sky Channel but as yet there is no movement on the Victorian situation.

It's also understood that the final broadcast date will be at the end of February, shortly after the running of the Blue Diamond Stakes meeting staged by the Melbourne Racing Club.

It could be a telling few months if Racing Victoria is not given the vision rights for this state's racing.

Fairfax understands that if the vision and media rights are not turned over to Racing Victoria, the principal body of racing in this state, it could well be a trigger for the state government to hold its own inquiry into the financial ruin of TVN over the past decade.