Sponsors in demand for Derby discount

RACING has suffered another financial blow, with Derby sponsors Investec demanding a rebate on their £3million-a-year deal after the second Classic meeting of the year was reduced to one day. Rather than being spread over two days, the Derby and the Oaks will both take place at Epsom on July 6 in a meeting staged without spectators, leading Investec to argue that the new arrangements significantly reduce the value of their deal. Investec have sponsored the Derby since 2011 in a contract due to run until 2026, but the financial services company’s interest in racing has waned since co-founder Bernard Kantor left the firm last year. The South African banker is a big racing enthusiast who owns several horses and had a runner, Young Rascal, in the 2018 Derby. Investec have no plans to withdraw from their contract, but will demand a refund on the grounds that the Derby meeting has reduced significantly in scope and they will be unable to entertain clients at the course. The anticipated rebate will put further pressure on prize funds —which, as Sportsmail revealed last week, have plummeted in the wake of the coronavirus pandemic — with the value of the Derby dropping to around £500,000, one third of the kitty on offer last year. Many of racing’s key sponsors are being more supportive as the sport struggles with the loss of gate receipts, gambling levy revenue and media-rights fees from betting shops. Racing will have lost 325 meetings by the planned resumption on June 1. Qipco remain committed to the 1,000 and 2,000 Guineas and big meetings at Ascot later in the year.