Rivals' racing bid for media rights

Arena Leisure have signed an exclusive agreement with BSkyB and Channel 4 to bid for the media rights to Britain's 59 racecourses.

The move signals Channel 4's return to the negotiations following the company's withdrawal of a £225 million bid in July. Arena's existing £320m bid, made on September 21, lapsed two days ago.

However, Arena yesterday signed agreements with Channel 4 and BSkyB to form a new joint-venture, 'NewCo', which will make a revised bid for all the media rights of horse racing in Britain, excluding the right to broadcast into betting offices. NewCo will make their offer within the next fortnight.

Arena's last bid was surpassed by a £400m, 10-year offer from media group Carlton last week. Channel 4, with NTL subsidiary Premium TV and the BBC, pulled out of the original bid with the 'Super 12' racecourses, blaming the other 47 tracks for the deal's collapse.