Sports Entertainment Group is set to acquire Victorian racing industry-owned racing radio station RSN for $3.25 million in a deal which will see it become the sole dedicated radio broadcaster of racing in Victoria.
The deal, announced to the stock exchange on Tuesday, is set to be completed by September 1 and will be paid in three amounts over three years, funded by SEG’s cash reserves.
'SEG is all in on racing," said Craig Hutchison, CEO of Sports Entertainment Group.
"We're passionate about delivering innovative, engaging coverage that resonates with both die-hard racing fans and casual listeners alike.”
“This acquisition allows us to bring our unique approach to a broader audience and amplify all three codes of Victorian racing.”
Under the deal, SEG will continue to operate both RSN and SEN Track on their existing frequencies. SEG will also provide some RSN programming on simulcast to racing.com.
"We welcome the opportunity to partner with SEG who see a strong future for the three codes of racing in Victoria and are investing to help us realise that,” Racing Victoria CEO Aaron Morrison, acting as a spokesman for Victorian Racing industry (VRI), said.
“SEG stood out for the VRI as an on-going commercial partner and appropriate next owner of RSN because of their expertise, capabilities, distribution network and their desire to grow audiences.”
“This long-term agreement preserves the rich heritage of RSN and the audio broadcast of VRI races that RSN listeners value, while providing opportunities for new and innovative content on the station."
RSN celebrated its 100th anniversary earlier this year, but its future has been the source of speculation as the Victorian industry faces revenue challenges due to declining wagering.
“RSN is an institution in Melbourne's radio, racing and sports history. We look forward to respecting and protecting that legacy while moving RSN forward into a new exciting era,” Hutchison said.
The deal will see SEN assume management and operational delivery of RSN which will continue to broadcast alongside SEN Track. It has committed to continuing live broadcasts, discussion and form analysis of Victorian thoroughbred, harness and greyhound racing remaining on RSN.
A VRI statement said that SEN may make some changes to RSN programming with further updates to be provided in due course.
“It is essential that the three codes of Victorian racing remain easily accessible and are showcased to people across Victoria and beyond, which RSN will continue to do for years to come,” Morrison said.
“The VRI was keen to explore a strategic partnership for RSN with the economics of running a standalone station challenged by recent conditions in the wagering, sponsorship and advertising markets.
“The sale of RSN provides the three codes with an opportunity to redirect our annual operating costs back into our codes to help support core initiatives around prizemoney, infrastructure, integrity and welfare.
“We take this important step safe in the knowledge that the audio broadcasting future of the VRI is secure for the foreseeable future.”
The Straight reported the likely sale of RSN to SEG back in March.
