Oppenheimer family step in to bail out racecourse operator facing bankruptcy

Phumelela Gaming, which operates the majority of tracks in South Africa, has been handed a lifeline after securing a deal with Mary Oppenheimer, daughter of mining magnate Harry Oppenheimer.

The group warned on Monday it was facing bankruptcy as it emerged the sport's shutdown could extend for a further four weeks, despite earlier plans for a resumption from last week.

Phumelela Gaming, which operates tracks including Turffontein and Vaal, and provides pool betting services, released interim results this week that referenced a "dire situation" for racing in the country.

It filed for business rescue on Friday afternoon but has agreed a post-commencement finance deal with a company run by Oppenheimer and her daughters, who have injected vital funds.

A statement from Phumelela Gaming read: "The implications of the Covid-19 lockdown have exacerbated the group's financial deterioration to the extent that it had to go into business rescue.

"The board took this decision with the knowledge of a deal with Mary Oppenheimer Daughters Ltd (MOD). The group is central to the racing industry and its failure would have a devastating impact.

"The injection of funds will allow the group to meet its financial obligations for the duration of the business rescue process, including the payment of stakes at levels agreed by the Racing Association.

"It must be stressed that the opportunity will be short-lived and will rely on all stakeholders having to make significant compromises. Government will be a crucial stakeholder in the future of racing, and while there has been positive engagement, a lot of work remains."

South Africa went into the fourth stage of lockdown last week – at which point it was believed racing would be permitted to continue – but the National Horseracing Association (NHA) expects the government's green light will only come in the next stage of the country's coronavirus response and has had to once again reschedule major races including the South African Derby.

Read more

'Dire situation' as tracks face bankruptcy and shutdown goes on in South Africa

No Sunday return in South Africa as Greyville fixture is cancelled

How racing changed by going global, switching surfaces and making horses fitter

Keep up to date on the must-have news, tips, photos and more by following the Racing Post across all social channels