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Decision
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Ottawa, 1 September 1987
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Decision CRTC 87-701
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Racetrack Management (1983)
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Winnipeg, Manitoba - 863434700
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Following a Public Hearing in Red Deer, Alberta on 9 June 1987, the Commission, by majority decision, approves the application for a broadcasting licence to carry on an English-language network operation for the purpose of providing, via satellite, 191/2 hours weekly of live simultaneous coverage of horse races at Assiniboia Downs, together with other features related to horseracing, to various broadcasting receiving undertakings in Manitoba. The service applied for will contain no advertising and will be provided, without charge either to cable operators or to their subscribers, as a special programming service on the basic service of cable systems in Manitoba.
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The Commission will issue a network licence expiring 31 August 1992, subject to the conditions specified in this decision and in the licence to be issued. The applicant is reminded that in line with Public Notice CRTC 1985-252 dated 20 November 1985, any Manitoba cable television licensee wishing to affiliate with this network requires the prior written approval of the Commission.
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Racetrack Management (1983), (Race track), is a limited partnership that owns and operates the Assiniboia Downs racetrack in Winnipeg.
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The partnership consists of Pinehurst Ranches Ltd. (the limited partner) and 57828 Manitoba Ltd. (the general partner). Wrightman Industries Ltd. (Wrightman), owns 100% of both the limited and general partners of Racetrack. Wrightman is a holding company whose shares are distributed amongst members of the Wright family and control of the company is held by Mr. James R. Wright of Winnipeg.
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In its application, Racetrack indicated that no capital expenditures are projected as the cameras, switch ing, satellite uplink and other equipment necessary to provide the service are already in place. It indicated, however, that it has allocated $75,000 in start-up costs, for marketing and administrative costs, and has given its commitment to "absorb any costs which the cable companies may incur in order to distribute the service".
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Racetrack submitted financial projections indicating that its revenue from anticipated increases in telephone account wagering attributable to cable carriage of the races at the Assiniboia Downs track will more than offset all expenses incurred, included the salaries of some 30 additional employees, distribution charges by cable companies and the cost of leasing satellite facilities.
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The proposal calls for the provision of some 31/2 hours of programming each Wednesday, Friday and Saturday evening, as well as Sunday afternoons and "all holidays, which generally fall on a Monday" for a total of 210 racing days per year. The program ming will consist of live transmission of an average of nine races per race day as well as information on the odds, the post-parades, the winner's circle presentations, and tote board statistics. In addition, Racetrack will provide occasional short features concerning various aspects of the sport of horseracing to be inserted between the races. The licensee gave its undertaking that there will be no advertising of any kind during the coverage.
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In response to questions, the applicant elaborated on the aspect of telephone account wagering, which is permitted under strict conditions set out in the Racetrack Supervision Regulations administered by the federal Department of Agriculture.
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In assessing this application, the Commission noted the written submission from the Manitoba Horse Racing Commission, received from the applicant at the hearing, indicating that the application satisfies all of its regulatory requirements, and the intervention accepted at the hearing from the Horsemen's Benevolent and Protective Association, representing all the horse owners and breeders in the Province of Manitoba, expressing its support.
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The applicant has filed a copy of the draft affiliation agreement with broadcasting receiving undertakings in the province of Manitoba, and clarified that it seeks carriage of the signal as part of its affiliated cable licensees' basic service, although not necessarily on the basic band (channels 2 to 13).
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In this respect, the Commission reminds cable licensees that, pursuant to section 3 and paragraphs 10(1)(j) and 16(1)(j) of the Cable Television Regulations, 1986, they must apply to the Commission for authority to carry the service.
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The conditions of licence under which the Racetrack network will operate are set out in the Appendix to this decision.
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Fernand Bélisle
Secretary General
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Commission R. Gower dissents from this decision.
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Appendix
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The network licence of Racetrack Management (1983) for the licence term ending 31 August 1992 will be subject to the following conditions of licence and others contained in the licence to be issued.
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It is a condition of licence that the licensee comply with subsections 5(1), 10(5) and 10(6); sections 12, 13 and 14 and the relevant definitions set out in section 2 of the Television Broadcasting Regulations, 1987 [SOR/87-49 dated 9 January 1987], as amended.
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In line with the application submitted to the Commission, by condition of licence the licensee is prohibited from carrying advertising material.
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As undertaken by the applicant at the hearing, it is a further condition of licence that the licensee absorb any costs incurred by cable licensees affiliated to this network.
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