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by Philip Buxton on 27 June 2000 15:53:00 GMT
Teamtalk is to use a new long-term deal with Ladbrokes, the world’s largest betting company, as a launch pad for a renewed assault on the US sports website market.
The online sports network, which has established a presence across Europe this year, has signed a five-year revenue-sharing deal with the Hilton-owned betting group that Teamtalk hopes will fund the expansion of its network of sports sites into North America.
Under the terms of the new deal, Teamtalk will integrate Ladbrokes’ betting services into its European and North American websites and draw attention in its editorial content to the bets that are available.
In return, Teamtalk will provide exclusive content to Ladbrokes’ website, www.bet.co.uk, and its interactive TV service, Scorecast, and will take an estimated 50% share of any bets made through the partnership.
Teamtalk chief executive Bill Wilson refused to discuss the amount of revenues expected or the exact nature of the revenue-sharing deal between the two companies, but said: “It will be a relationship in which we share equally in the spoils.”
The agreement follows a basic content partnership agreed between the two companies announced last month.
Teamtalk had originally agreed to provide editorial content for the betting giant’s interactive services in return for using the Ladbrokes brand and services to offer online betting to its users. The deal was to be reviewed on a six-monthly basis.
However, the new partnership means Teamtalk, which had put £15m aside from original funding in order to set up its own betting service, can now devote that sum to developing its content and reach, while drawing on revenues from any Ladbrokes bets made via Teamtalk sites to fund any expansion.
The company, which launched a site based on the North American Soccer League this month, plans to launch further sites in the US before 2001, having already opened operations in Germany, Spain, France, Sweden, as well as the UK
Wilson said: “The original deal came about because Ladbrokes wanted content for its services and we were happy to do that. However, after working with them on that, it became clear how serious the company is about new media. That led to discussions about how we could help each other and those led to this, very good deal.”
The new move caps the transformation of Teamtalk, originally a provider of sporting statistics to old media companies, into a full-fledged new media company. The first Teamtalk website, www.teamtalk.com, launched in October 1997 and has developed one of the largest user-bases among sports websites. However, the company continues its traditional operations, which include the provision of multi-lingual sports updates to cruise liners and cargo shipping companies.
Separately, Teamtalk.com has been appointed by interactive TV service Open to provide a content package, including trivia questions, for this year’s Wimbledon Tennis Championship
Teamtalk is to use a new long-term deal with Ladbrokes, the world’s largest betting company, as a launch pad for a renewed assault on the US sports website market.
The online sports network, which has established a presence across Europe this year, has signed a five-year revenue-sharing deal with the Hilton-owned betting group that Teamtalk hopes will fund the expansion of its network of sports sites into North America.
Under the terms of the new deal, Teamtalk will integrate Ladbrokes’ betting services into its European and North American websites and draw attention in its editorial content to the bets that are available.
In return, Teamtalk will provide exclusive content to Ladbrokes’ website, www.bet.co.uk, and its interactive TV service, Scorecast, and will take an estimated 50% share of any bets made through the partnership.
Teamtalk chief executive Bill Wilson refused to discuss the amount of revenues expected or the exact nature of the revenue-sharing deal between the two companies, but said: “It will be a relationship in which we share equally in the spoils.”
The agreement follows a basic content partnership agreed between the two companies announced last month.
Teamtalk had originally agreed to provide editorial content for the betting giant’s interactive services in return for using the Ladbrokes brand and services to offer online betting to its users. The deal was to be reviewed on a six-monthly basis.
However, the new partnership means Teamtalk, which had put £15m aside from original funding in order to set up its own betting service, can now devote that sum to developing its content and reach, while drawing on revenues from any Ladbrokes bets made via Teamtalk sites to fund any expansion.
The company, which launched a site based on the North American Soccer League this month, plans to launch further sites in the US before 2001, having already opened operations in Germany, Spain, France, Sweden, as well as the UK
Wilson said: “The original deal came about because Ladbrokes wanted content for its services and we were happy to do that. However, after working with them on that, it became clear how serious the company is about new media. That led to discussions about how we could help each other and those led to this, very good deal.”
The new move caps the transformation of Teamtalk, originally a provider of sporting statistics to old media companies, into a full-fledged new media company. The first Teamtalk website, www.teamtalk.com, launched in October 1997 and has developed one of the largest user-bases among sports websites. However, the company continues its traditional operations, which include the provision of multi-lingual sports updates to cruise liners and cargo shipping companies.
Separately, Teamtalk.com has been appointed by interactive TV service Open to provide a content package, including trivia questions, for this year’s Wimbledon Tennis Championship