MIDLANTIC COOPERATIVE TAKES ON TRACKNET STATEMENT
Press Release
MidAtlantic Cooperative, L.L.C., a purchasing cooperative representing 17 racetracks, has engaged in good faith negotiations with TrackNet Media, LLC commencing in August 2009. At that time, TrackNet presented its proposal which included an unprecedented increase in host fee rates – rates higher than paid by other racetracks and other simulcast outlets with significantly less annual volume than the MidAtlantic Cooperative, as well as a limited term and several non-economic conditions that went beyond MidAtlantic’s authority as a purchasing coop. The MidAtlantic Cooperative represents an estimated 12-15% of the daily interstate wagering handle for TrackNet’s respective racetracks and is TrackNet’s largest independent customer.
Contrary to published remarks from TrackNet Media officials, the MidAtlantic Cooperative has not refused to “pay any rate increases.” Rather, it repeatedly discussed increases with TrackNet and presented a detailed proposal to TrackNet Media that included tiered increases in simulcast rates over a multi-year period, allowing for desired increases while providing longer term cost stability for Coop member tracks and avoiding the possibility of further interruptions. In fact, during the past year, several Cooperative track members already paid TrackNet significant increases in rates charged to certain of their operations. Of course, any increases negatively impact MidAtlantic Coop’s payments to its local horsemen. TrackNet’s response to MidAtlantic Coop’s proposal was a flat out rejection without explanation. The MidAtlantic Cooperative quickly responded with an offer to compromise on the term of the agreement. TrackNet’s response was that there would be no change on the demanded rate increases and that its earlier proposed two-year deal was now only a race meeting to race meeting offer.
While economics are a large driver of this dispute, TrackNet’s demands on several other matters are troubling and problematic, including regional ADW issues and TrackNet’s desire to dictate local regulatory or statutory matters. .
This dispute is not in the best interest of the MidAtlantic member tracks, TrackNet Media (see Fair Grounds recent November handle figures showing a 30% average daily handle decrease from the prior year), or the wagering guests at our respective wagering locations and racing facilities. The Mid Atlantic Cooperative remains committed to working with TrackNet Media to arrive at an agreement that benefits all parties involved and intends to pursue all options available to it.
Tags: ADW, fair grounds, midlantic cooperative, Paulick Report, tracknet media
December 28th, 2009 at 10:37 pm
Spot on report! Wish you were in charge of Tracknet as they could care less about the sport they are draining the blood from! Hopefully people will stay away from their tracks even after they settle and new management will take over.
December 29th, 2009 at 6:01 am
Nothing good ever comes from monopolistic practices and arrogant behavior. Leave a bad taste in my mouth and I don’t care how broad your smile is. TrackNet’s indifference to its business partners and its business partners’ customers leaves this horseplayer more determined than ever to boycott all horse racing at Churchill and Magna tracks.
December 29th, 2009 at 9:00 am
Lets take a hard look at Tracknet. It is CDI and MEC right? This is the biggest dogs on the block right? ………….Used to be. CDI has Calder and The Fairgrounds running right now, with, Churchill this spring and Arlington this summer. Good content? Yes. Overpowering? NO. MEC has Santa Anita, Golden Gate, with Gulfstream and the Maryland tracks coming on. Good content? Yes. Overpowering? NO. Tracknets position of strength is waning. The rumor is MEC is pulling out of the agreement shortly, and that will leave CDI and its false image of grandeur all alone. The Mid Atlantic group would be wise to draw a line in the sand TODAY. Any long term deals cut with Tracknet are going to be a disaster when its content is reduced by two thirds. The only way to sustain this industry is to make content available to everyone at reasonable rates. One day Evans will wake up and see what damage he has done to this industry, only hope it is not too late. Wake up BOB.
December 29th, 2009 at 2:17 pm
Whoa folks, just a minute here!
Before you jump on Mid Atlantics bandwagon be sure you’re schooled on some of the pranks their members have played, separate from the Coop. For instance, Colonial Downs(CLN) sponsorship of a Statue that was passed making it a law that they get 12% takeout on all bets made in VA. 2% to the Virginia Racing Commission, 5% to CLN and 5% to the Horsemen. Now why should CLN get 12% on a bet I place on a race at Santa Anita made on a betting website?! Its a shameful money grab. TrackNet is being forced to respond to these shananigans. I say more power to them.
Currently, if I go to a Colonial owned and managed OTB I am not able to wager on Santa Anita, Fairgrounds, Churchill or (next week) Gulfstream.
We as horseplayers are once again the yo yo’s to all this mess. I sure wish HANA was more assertive and active in this fiasco. Horseplayers have a bleak future it seems. And therefore, so do racetracks!
January 7th, 2010 at 6:49 pm
if it wasnt for the monopolies run by states to unallow patrons from opening tvg twinspiers of ubet accounts we could all be watching and wagering right now. NO ONE wants to bet these dog tracks like the pha laurel colonial or god knows what other goofball glue factory races. I live in Pennsylvania and worked 5 minutes from the PHA. All they care about is slots. They offer their players no incentives and no value. They treat You like junkies and show nothing but indifference toward their customers. You can’t even place a wager with a liver operator during the week. We should get IVAN DRAGO to break them and I better get to bet the derby or I might just quit foever. 10,000 in the hole and counting