Musselburgh boss Bill Farnsworth takes track to tribunal over wage deductions

Musselburgh chief executive Bill Farnsworth is taking the committee which runs the racecourse to an employment tribunal in a dispute over deductions from his pay worth around £10,000.

It is the latest episode in the troubled recent history of the racecourse, which is operating under a temporary licence from the BHA.

Further details of the financial situation at the course have also emerged, including forecasts of how its income might be affected by betting shop closures.

The dispute relates to payments Farnsworth received when he was a member of the BHA board between August 2013 and July 2014.

East Lothian Council, which owns the course, subsequently decided Farnsworth had been overpaid and made deductions from his salary.

Farnsworth claimed he was fully entitled to full remuneration when on the BHA board and has made a claim against his employer the Musselburgh Racecourse Associated Committee (MRAC), on which East Lothian councillors have the majority.

A hearing is set to take place in September.

Farnsworth said he was unable to comment on the case, while a spokesperson for East Lothian Council said: "Personnel matters are confidential and so are not appropriate for public comment."

Musselburgh's governance 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, subsequently carried out by law firm Pinsent Masons, and eventually resulted in the council deciding to allow the course to be run by a third-party operator. Its current licence from the BHA expires on October 15.

A third party operator is due to take over the running of MusselburghCredit: John Grossick (racingpost.com/photos)

Arena Racing Company, Ayr, Chester and the Jockey Club are understood to be the potential suitors.

The budget report presented to the MRAC at a meeting on June 25 said that there will be "a significant deficit" when the new operator assumes operational control of the racecourse, while also outlining the potential financial impact of lost media rights income from betting shop closures.

The review of 2018-19 presented at the same meeting said there had been unbudgeted expenditure totalling £352,000 in the period, more than £300,000 of which was legal advice obtained by council officials during the tender process to appoint a third-party operator, as well as further legal and HR advice. These costs were all subsequently allocated to the racecourse.

The forecast deficit at the end of 2018-19 financial year was more than £218,000, which was expected to be reduced to around £180,000 by the time the new operator takes over.

"We need to agree how to deal with this deficit," the report said.

One option to reduce the deficit mentioned was the sale of plant equipment and machinery to the incoming operator.

The budget summary also states that the government's decision to cut FOBT stakes to £2 from £100, which is expected to lead to widescale betting shop closures, "has a very substantial potential impact".

The report cites advice from Racecourse Media Group which, with caveats, predicted that 1,300 betting shops could close in the 2019-20 financial year.

For Musselburgh that would mean a reduction in betting shop media rights income of £192,000 to £1.9 million.

Last week William Hill announced it would be closing 700 betting shops as a result of the stake cut.

For the freshest betting advice, based on latest going and market conditions, don't miss the Live Tipster every afternoon. Just click Raceday Live at racingpost.com or the mobile app