BETFRED has made a bid of nearly £200 million in cash for the UK Tote while pledging to guarantee racing an income of £11m from the Tote in 2012 and at least £9m in the following years.
In a statement, Betfred, whose bid is in line with market expectations, said it supported the government’s decision to put 50 per cent of the net proceeds from the sale back into racing.
“Betfred’s proposal ensures the government has a complete exit from the Tote, secures value for the taxpayer, delivers support to the racing industry and provides enhanced opportunities and security for the Tote’s employees and other stakeholders,” the company said in a statement.
Betfred co-founder Fred Done, speaking on the Radio 4 Today programme, added that “we want to work with racing, prove ourselves with them”.
The statement has been released by Betfred as the privately-owned company believes a decision on the future of the Tote is imminent.
Last week, racing’s chiefs threw their support behind the opposing bid for the Tote made by former BHB chairman Sir Martin Broughton and his son Michael through their Sports Investment Partners (SIP) vehicle.
Paul Roy, Ian Barlow and Paul Dixon, chairmen of the BHA, Racecourse Association and Horsemen’s Group, backed the SIP bid in a letter to MPs in which they stated the bid “satisfies all the government’s criteria and also provides a more favourable solution to racing”.
This includes the same guaranteed income from the Tote to racing of £11m as Betfred have offered.
