BHA extends Musselburgh licence to end of year as hunt for new operator goes on

Musselburgh's temporary licence from the BHA has been extended until the end of the year as the search for an operator to run the track continues.

Last December the BHA granted Musselburgh a temporary licence which was due to expire on October 15.

Governance at the track, which is owned by East Lothian Council, has been unsettled for a number of years, with its recent history beset by a civil war between the local authority and racing representatives.

That led to the BHA stepping in to demand an independent governance review which resulted in the council deciding to bring in a third-party operator.

Arena Racing Company, Chester and Jockey Club Racecourses are understood to be in the running to take over the operation of Musselburgh, while officials at Ayr last week revealed they had dropped their interest.

It had been anticipated the identity of the new operator would be confirmed this month.

Musselburgh started the financial year with a deficit of nearly £150,000Credit: John Grossick (racingpost.com/photos)

However, with no sign of an announcement and just three weeks to go before Musselburgh's licence was due to run out, the BHA board agreed to a further extension, the governing body confirmed.

The licence is held jointly by East Lothian Council (ELC) and the Musselburgh Racing Associated Committee (MRAC), which was set up by the council last year to manage the track.

The MRAC is due to meet on Tuesday when one of the items on the agenda will be an update on the licence and procurement process.

The racecourse started the current financial year with a deficit of nearly £150,000 on its balance sheet, mainly due to legal costs of £295,000 incurred by the council during the tender process to appoint a new operator.

According to the track's latest finance report which is due to be discussed at the meeting, the racecourse auditors, Scott-Moncrieff, are recommending that the MRAC seek independent legal advice to establish the correct allocation of the legal fees.

"It is questionable whether ELC should have charged these fees to the racecourse/MRAC," the report adds.

"If the MRAC has a deficit when it ceases to operate the racecourse, it is currently uncertain who is ultimately responsible for the racecourse debts."

The finance report also sets out that racecourse income is above budget due to betting shop closures caused by the government's crackdown on FOBTs being slower than forecast, as well as improved field sizes.

However, it adds: "This good news is tempered by the bad news that the forecast closure of 2,500 LBOs [licensed betting offices] looks like being accurate and racecourses will feel significant downturn in media rights income from 2020."

Musselburgh chief executive Bill Farnsworth is taking the MRAC to an employment tribunal in a dispute over deductions from his pay worth around £10,000. The hearing is due to take place in December.

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