Channel 4 and NTL subsidary Premium TV have withdrawn their £250million bid for exclusive rights for the media rights of Britain's leading racecourses.
And Channel 4 blame the non-Super 12 tracks for the collapse of the 10-year deal.
A statement from David Brook, Channel 4's director of strategy and development, read: "Throughout our year long negotiations, Channel 4, Premium TV (a subsidiary of NTL) and the Super 12 courses have shown remarkable consensus on the best way forward for racing.
"Unfortunately, the factionalism that seems endemic in some parts of the industry has made it impossible to secure the necessary involvement of the UK's remaining 47 courses and Channel 4 and Premium TV have lost confidence in the process set in place to determine the allocation of their rights.
"Reluctantly, therefore, we have decided to withdraw our bid and halt all current negotiations."
The deal was to include a digital racing channel, which would also involve the 42 racecourses, not aligned to the Super 12.
Racecourse Association Chairman Angus Crichton-Miller expressed surprise at the decision and at the criticism of the 42 non-Super 12 courses.
"I'm a bit surprised that Channel 4 and Premium TV have just unilaterally withdrawn since I understood that their arrangements with the consortium were not dependent on any other racecourses coming into the deal," he said.
"Since in their press release there seems to be some implied criticism of the 42 racecourses, I want to get the record entirely straight.
"Channel 4 did make an offer to those 42 racecourses. It was for a modest amount of money and subsequently they (Channel 4) said they appreciated that it was too low and they were preparing a materially higher offer.
"That has never been forthcoming and therefore it seems a bit unreasonable to blame the 42.
"Meanwhile, the 42 have been offered several times the amount of money Channel 4 offered them for the same rights and therefore it would have been extremely careless of them to have agreed an offer that clearly came nowhere near providing value for what it is they have on offer."
