Ladbrokes takes over sponsorship of Hennessey Gold Cup

Ladbrokes has become headline sponsor of the formerly titled Hennessey Gold Cup, marking the Magic Sign’s return to big-time horseracing sponsorship following a spell on the side lines.

The five-year deal sees the Ladbrokes Coral-owned brand end the race’s 60-year association with Hennessey and bring to an end the operator’s brief stint in the wilderness having not signed up to the controversial Authorised Betting Partner (ABP) scheme.

In addition to the Ladbrokes Gold Cup, the brand will sponsor 12 of the other 13 races across the two-day December fixture, which Ladbrokes Coral chief executive Jim Mullen said his firm would aim to turn into one of sports’ most “compelling attractions”.

“Horseracing is a vital part of the heritage of our business, and we are passionate about maintaining our support of the sport,” Mullen said.

“We have committed to work in partnership with Newbury racecourse to build the two days of this fixture into one of the most compelling attractions not just in the racing calendar, but in that of sport as a whole.”

Earlier this month the government confirmed plans to introduce a new levy scheme in April to replace both the current land-based levy and the ABP scheme introduced last year to extract funding from off-shore digital businesses.

Bookies with large land-based presences refused to sign up to the ABP scheme and as a consequence were blocked from signing any new commercial deals with racing – as a result, Ladbrokes was recently replaced as sponsor of the Cheltenham World Hurdle by ABP member Sun Bets.

However, Newbury course chairman Dominic Burke said that the new levy scheme meant it was now able to do business with Ladbrokes and other non-ABP bookmakers.

“The Newbury board’s decision to partner with Ladbrokes as the new sponsor for this prestigious meeting was made in light of the government’s commitment to replace the existing levy scheme from April 2017,” Burke said.

“Given the government’s position, our board felt that it could agree future sponsorship arrangements with any betting operator for race meetings taking place after that April date.”

Last week Ladbrokes Coral questioned the new levy scheme, which will apply a 10% levy across online and retail.

“The issue has always been the rate and the question has been what does racing need and what can be afforded,” a spokesperson for the firm said.

“On its own, people may think it [the 10% levy] looks fair but in the round with cost escalation in the levy, shop pictures, streaming rights and advertising, the sport is in danger of pricing itself out of friends.”