Government takes charge

Racing and bookmakers face an unseemly three-week scramble to convince Secretary of State, Tessa Jowell, that the other party was at fault in their failure to agree future funding of the sport.

Both sides have until 21 November to convince Jowell's Department of Culture, Media and Sport of the merits of their respective cases. Its horseracing policy team will then deliver its ruling before the current year's levy scheme - the sport's existing finance mechanism - expires in April 2002.

Taking both sides' best offer, the two industries still stand £20-30 million apart in what they deem racing's product to be worth. Neither party is satisfied with the other's valuation of betting-shop picture rights.

The deal is also complicated by racing's concern over how this yearlong agreement will impact on the future funding of the sport when, following proposed Government legislation, the statutory levy is replaced by a direct commercial mechanism between the two industries.

Bookmakers proposed a two-year deal to bridge this transition period and provide real, rather than estimated, data on turnover in this post-betting tax era. But the British Horseracing Board fears this would prejudice its right to charge separately for data rights in the future.