Channel 4 racing escapes the axe

A sponsorship deal brokered by the Tote has saved horse racing coverage on Channel 4 from the axe.

The broadcaster had threatened to pull the plug in a multi-million pound dispute over funding.

But a late one-year deal has been reached with the Tote and racecourses which secures coverage next season.

Channel 4's racing coverage includes the Cheltenham Festival and key trials for the Epsom Derby.

The news will be welcomed by many racing fans, who feared terrestrial TV coverage of the sport could be greatly reduced.

While the BBC boasts the rights to various meetings, such as the Grand National and Royal Ascot, Channel 4 has a wider portfolio.

The Tote will become official sponsors of both Channel 4 Racing and its Morning Line preview programme.

The deadline was today and thankfully we signed the deal Peter Jones

Chairman Peter Jones told BBC Sport its contribution would amount to about £3m.

Under the terms of the agreement, there is an option to renew the deal for 2007.

David Scott, Channel 4's deputy chief executive, said: "This is great news for our many loyal viewers, who can continue to enjoy extensive free-to-air televised racing.

"We always wanted to keep racing, but we had to find a way of eliminating the sizeable commercial downside of broadcasting the sport and this deal does just that."

Channel 4 has guaranteed live coverage of racing will be broadcast every Saturday and on selected weekdays, taking in the festivals at York, Chester, Newmarket and Cheltenham.

"The 74 days of racing action will be complemented by a weekly Morning Line at 8am on Saturdays and on weekdays during the Cheltenham Festival," said a statement.