A Turning of the Tide on Prize-Money in 2018 – New Year’s Resolutions Being Put Into Practice

Firstly, Happy New Year, and may it be a truly successful one with lots of winners for all our owners. May the horses all be happy, healthy and improvers. One of the horses we are closely involved in running – Buckle Street, with Martin Keighley and the Condicote Clan – definitely fits into that category, putting in a really game performance to win at Catterick over 3m 2f. That was a super Christmas present for all. While up there, a number of us had an excellent discussion over a beer with the BHA’s Chief Executive, Nick Rust, whose horse Paddling was also running. This horse won at Catterick the following week, so well done to Nick and his co-owners. Indeed, he was the first person to come up to me in the winner’s enclosure to congratulate the Clan.

During the discussion with him, he flagged up the imminent announcement that prize-money in Britain is likely to reach a record £160 million in 2018, an increase of £17 million from 2017. This is a really welcome development, particularly as it follows on from an autumn announcement that £8 million of central levy funding is being channelled into grass-roots racing. Readers of the blog will know that I believe raising prize-money is the number one issue in British racing, because without it the risk is that the sport is in a downward spiral, with owners not being attracted or retained, the number of horses in training declining, and through that a lack of competitiveness in the sport that is the lifeblood of gambling.

Although the discussion with Nick over a pint and a very unusual-coloured and flavoured Catterick lamb curry was anything but formal, his statement to the press on this announcement was rather more measured. He said: “It is very important for all those involved in our sport that we are due to see such significant prize-money increases in 2018. Although there has been a gradual recovery in total prize-money in recent years, driven by increased investment from racecourses, the returns to our sport’s owners and participants have not been sufficient, in particular to those who are not competing at the top echelons. The support we received from the government and, indeed, all political parties in establishing the new levy has been crucial and means that we can target support towards those operating at the racing’s grass roots. The increased prize-money on offer in 2018 does not resolve the sport’s prize-money situation outright, but it is a step in the right direction. We hope that this good news will serve as an incentive to racehorse owners who are thinking of putting horses in training, and provide a timely boost to jockeys, trainers and stable staff, who rely in part on prize-money for their livelihoods.”

I can only raise a glass to Nick and the BHA for both the extra money and the sentiments expressed. Having said that, there will probably be a wry smile on his face when he sees the prize-money summary after deductions on the next BHA or Weatherbys statement relating to Paddling’s win at Catterick, which as an independent is definitely not the most generous of courses with its prize-money.

At the same time as this announcement, a couple of racecourses also confirmed the way the tide is now flowing. A few years ago I took issue with Newbury on a number of fronts, and like to think that I was one of the pressure points for change that led to the previous CEO being dismissed. I have a lot more time for the latest CEO, Julian Thick, so was pleased to read that prize-money is set to exceed £5 million in 2018 following an injection of £250,000 by the racecourse. As a result, total prize-money at all the track’s 29 fixtures will amount to at least £50,000, with the feature race at three-quarters of all meetings offering £20,000. Thick commented to the press that: “As an independent racecourse, Newbury is committed to ensuring prize-money levels increase as and when we can afford to make additional investment, and 2018 will see a continuation of that policy with our own direct prize-money spend increasing …. Since 2013 we have increased our executive contribution by over £1 million and 2018 will see us break the £5 million mark for the first time …. This is a reminder of our commitment to reinvest in the sport, and complements well the substantial capital investment we’ve made on fabulous new facilities for horsemen in the past three years.”

Time therefore to raise the glass again to Julian and his team at Newbury. A couple of years ago we ran our horse Shantou Magic in the Challow Hurdle, and I complained strongly to Newbury that the prize-money was less than it had been ten years previously, so it is great to see a reversal in that trend. Also for those who haven’t been there recently, the new Owners’ Club is superb. Great to see this track being improved so radically, and it is now a course that owners really like to go to, even if the preponderance of “luxury executive apartments” is not to everyone’s taste.

Finally another glass to be raised to the very progressive Chief Executive of Perth, Hazel Peplinski, who is increasing their prize-money by 35% this year to nearly £1.25 million. That also includes a new appearance money scheme across their 15 fixtures with average prize-money per race increasing to £11,500 from £8,500, with the hope that it will stimulate a rise in field sizes. Personally I am going to do everything I can to support Perth this year and will be suggesting to our trainers that if we have suitable horses, we take them there.

I’m definitely a believer in credit where credit’s due, so it’s most encouraging to be able to start the year on a positive note on the prize-money front. Don’t worry, I’ll still be applying pressure on those tracks that don’t yet seem to have picked up the message that prize-money really matters.

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The Seven Sins of Racecourses and a Segway into Grass-Roots Owning Optimism

When preparing for this blog I had a think about the worst ownership experiences that I’ve endured. I remember back in management consulting days that for some unknown reason everyone talked about the “seven secrets of success”, so I thought I would build this blog around “seven sins of sloppy, surly service”. Regular readers of this blog will know that I suffer from the irritating habit of a love of alliteration – one of Hughes’ horrible habits. Maybe there should be an Owners for Owners award, and I’m definitely open to suggestions as to what the prize should be. I’ve done them in alphabetical sequence.

Catterick and its meal vouchers: on New Year’s Day my wife and I trekked all the way up to Catterick to watch Future Gilded win – which was fabulous. They had run out of meal vouchers. “Don’t worry”, they said at the O&T Desk, “they’ll see you right”. I went off to enjoy an exquisite Catterick lunch, queued for ages and then was refused service. Back to O&T desk. Still no vouchers and was told to go back and mention the name of the attendant. Back to the queue. Still a refusal to serve me. Sent off to “the Office”. They found me a voucher. Third time lucky, back to the queue. Bingo – served a beautiful, cold, gristly bap. A delightful owner experience.

Ludlow and its Owners’ & Trainers’ Admission: off to Ludlow for the first time and followed signs to the car park, then to the Owners’ & Trainers’ entrance on the inside of the track. Bounded in and presented my PASS card, they commented, “We don’t see many of them”. Told that I was at the wrong entrance – despite the sign. Equally told that I was in the wrong car park, and to get into the “right” one I’d have to drive back out again and proceed some distance to the other side of the course. However they relented and let me in. The first of our owners I bumped into on the course hadn’t been so lucky and had been asked to pay. Fortunately I had printed a copy of the email I had sent to the course listing the names of the owners who would be there. Again I was sent to “the Office” to clarify the situation. Their response was that they hadn’t received the email. Funny that. Every time I go to “the Office” brandishing an email, I’m told they hadn’t had it.

Plumpton and its Owners’ car park: arrived at the Sussex Riviera in a monsoon, tried to park the car, pointing to the ROA badge on the windscreen. The attendant refused to acknowledge it and wanted to see “the badge”. He made me get out of the car to find it in the boot. It wasn’t a badge but the PASS card he wanted. Allowed to park in the middle of a swamp. As with Ludlow I’d followed the signs correctly but arrived at the “wrong” car park.

Southwell and the winner’s room hospitality: half a dozen owners and friends travelled up to Southwell for the last race on the card. The horse won and we were taken to the winner’s room to celebrate with a glass of fizz. We were given the smallest quantity of champagne that I’ve ever received and, like Oliver Twist, I dared ask for more. After receiving another thimble full, the jobsworth then raised his arm, pointed to his watch and said, “Drink up, I’ve got a home to go to”. Charming.

Wincanton and prize-money: like many tracks, Wincanton is inclined to put the money into one or two races at the expense of the others, so the prize-money is derisory. Our horse came 4th in a really competitive, 17-runner handicap hurdle that will have driven a tremendous amount of Levy money. Our return? £238.

Wolverhampton and its lino: as far as I’m concerned, the least enjoyable race track in the world. To stand on its artificially surfaced paddock on a wet Wednesday evening in mid-winter is as dire as it gets.

Worcester and “family fun” days: what a dread phrase! Probably only rivalled by its “Ladies’ Day”, a term used extremely generously to describe the participants. A most awful experience.

And yet, despite all of this, I adore going racing and am still optimistic about the sport – which is where the segway comes in (or segue, as my wife would have it). There was a really encouraging announcement recently that grass-roots racing is going to receive an extra £9.7m in 2018 as the BHA tries to halt a decline in the number of horses taking part in races at Class 4-6 level. Richard Wayman, the Chief Operating Officer for the BHA, stated encouragingly that: “Although there has been growth in total prize-money in recent years, much of this has been at the top end. The returns to our sport’s participants further down the scale are simply not sufficient at present to be sustainable. Targeting grass roots with extra funding will help racing’s participants to maintain their involvement in the sport and keep more horses in training.” Hear, hear.

I’ll raise a glass of Champagne to this, while eating a pork bap on a family fun day on my next racecourse visit, once I’ve found the correct car park and been allowed on to the course. Champion!

I am always interested to hear your views so please do leave a comment. If you can't see the comment box at the bottom of this post then navigate to the post using the right hand navigation or click here > and scroll to the bottom of the page. Look forward to hearing your views. Thanks very much for sharing them.

Complete Agreement with the Mighty Mullins on the Goal of Doubling Prize-Money …. But definitely not just for Grade 1 races at the Festival

Only nine more days of waiting for the commentator to declare: “And they’re under orders now for the 2015 running of the Supreme Novices’ Hurdle” ….. and the hair-tingling roar of the crowd. The mere thought of it is having me box-walking far more than even our super Flat three-year-old, Jolievitesse.

Last year I was foolish enough to make some predictions of winners and have no intention of repeating that catastrophe, so I was more than grateful to see a very interesting piece in the Racing Post with Willie Mullins demanding that more is done to reward jumps owners at the Cheltenham Festival. The most interesting comments were: “The prize-money in jumps racing, given the costs, does not make sense and it cannot last. That, to me, is not fair and it’s not on for what owners do for the sport of racing. The meetings are there, but the prize-money should rise. All we see is the prize-money edging up a bit every year …. Prize-money for the graded races at Cheltenham could be at least doubled, if not more. It would give meaningful prizes for racing horses. Someone should really break out and say, ‘We need to reinvigorate the sport’, before it goes down. The bottom end of racing is disappearing.”

A lot of our friends and owners would do anything rather than follow blogs and Twitter. Those who do will have seen that Willie Mullins’ comments triggered an avalanche of views, both positive and negative. These are some typical examples from the ether:

“So often prize-money barely covers the van costs and entry fees. Mr. Mullins is dead right.”

“The bottom of the market needs the extra prize-money, not the top end.”

“Owning a horse is a choice. How far do you push the financial remuneration for indulging in a hobby?”

“If there are no owners then the people who work in racing lose their jobs. The sport needs to be sustainable.”

“Before we start stuffing more money in Willie Mullins’s and Rich Ricci’s pockets, let’s have more money for the little guy who runs his horses at Fontwell, Ffos Las, Towcester, Carlisle and Catterick.”

“Willie Mullins is absolutely right, the prize-money needs to be increased even just for running and finishing in a race at the Festival, as it is the owners who pay for and keep the show on the road.”

There were certainly three clusters of comments: the whole of the sport needs more money, and prize-money should definitely be increased at the lower end; racecourses and bookmakers make a huge amount of money out of the Festival, and more money should flow back; and a concern that trainers of the stature of Mr. Mullins and his rich owners are more than prepared to invest huge amounts of money, so much so that it is disincentivising the average owner. On balance I agree with all these views, to the extent that I fired out ten Owners for Owners views on prize-money into the Twitter space. (I can hear the comments of “Get a life!”)

1. Willie “Double the Prize-Money at Cheltenham” Mullins’ view is one we definitely support, but on a far broader basis …. it needs to happen everywhere.
2. Prize-money should be a top three priority of the BHA, to double prize-money by 2020 # racing needs a more strategic approach.
3. Owners invest £0.5bn a year in British racing. Return on ownership is 25p in the £. # make ROO a strategy of the BHA.
4. Boost it from the bottom up. The ordinary owner is giving racing up, not the Rich Riccis. # time for step change in strategy.
5. Get real on costs vs. rewards. One of our horses wins £250 for coming 4th in 16-runner race. Cost £600 to race him.
6. Does racing want more or fewer horses in training? If more, you need more owners. # boost the cash: boost the owners.
7. What is the optimal number of horses in training? Does anyone know? What is the BHA view? More: the same: or fewer?
8. Once there is a BHA view on optimal horse / owner numbers you can align prize-money to that goal.
9. Without the owners there is no racing. They are the #1 stakeholders in the sport. # treat them better and the sport is strong.
10. Make the lowest place-money at least cover the owner’s costs. Start from that position and work back to win-money.

As you can see, quite a blast of views. Doubtless we’ll be covering them in far more detail through the blog.

I am always interested to hear your views so please do leave a comment. If you can't see the comment box at the bottom of this post then navigate to the post using the right hand navigation or click here > and scroll to the bottom of the page. Look forward to hearing your views. Thanks very much for sharing them.