Economic Sustainability of Trainers, Part 4: Time to Diagnose the Illness and Prescribe the Medicine

Over the last three blogs I’ve been arguing that there is a major problem with the economic viability of the training profession in this country, and it should be a strategic aim of British Racing to acknowledge and address it. Indeed the problem isn’t just in the UK, and I read an article last week about the position in Ireland which was described as “perilous”, with the author advocating considerable changes to the internal economy of the sport. It argued that the problem at the grassroots trainer level is the equivalent of the “squeezed middle” in the wider economy, and I wouldn’t disagree with that. Finally, to illustrate this, I noted that Martin Hill had his last runner recently, Scorpion Star, at Newton Abbot before announcing that he was throwing in the towel.

In my first blog on this subject I put trainers into one of three tiers, and without any doubt it is the small and medium-sized who are really struggling to survive. Without being melodramatic, it could be that a contraction in the training ranks might soon be staring the BHA in the face, particularly if there are any wider economic crises, Brexit negotiations collapse or a Labour government of Corbynistas comes into power. Imagine the economic shock if the VAT concession to owners were scrapped. However, rather than just concentrating on the potential crisis it is more helpful to brainstorm potential solutions, while recognising that there are many interdependencies between them and there is no magic wand or miraculous medicine. I’ve grouped the ideas around three broad themes.

1. Strengthen Trainer Competence and Capability

• Identify the extent of the problem. The BHA and the National Trainers’ Federation should organise an assessment of the trainer ranks. Identify the problems, their impact and the inadequacies.
• Change trainer attitudes and mind-sets. As a group they are very hard to help, and extremely conservative by nature. Competition rather than collaboration rules the day. That needs to change.
• Focus on business models and business skills. Most trainers score highly on training skills and abysmally on business skills. Explicit business plans for success are noticeable by their absence.
• Revamp the training of trainers. The training curriculum is old-fashioned and overly focused on knowledge and regulatory requirements. It needs to become much more experiential.
• Design an improvement programme. Despite the inevitable apathy and cynicism there is a major need for across-the-range improvement in trainer skills and behaviour. That requires coaching.
• Produce toolkits and apps. Rather than expect trainers to go to classrooms, the teachers need to go to the trainers. The NTF should put together a series of user-friendly apps and toolkits.

2. Innovate in Business and Operating Models

• Challenge the closed system. There are 500-700 trainers in the UK, with the vast majority of them having been in the industry since teenage days. They have had little exposure to anything else.
• Illustrate benchmarks and best practice. Every trainer seems to have a naïve belief that they are doing everything right. Arrogance and stupidity is a pretty deadly combination. Challenge it.
• Attract more owners. Trainers are the gate-keepers to the industry, from an ownership perspective. They need a lot more help to adopt modern marketing, promotional and communication techniques.
• Tune in to owner expertise. Many trainers wouldn’t have a clue about the business skills of their owners. Major owners are potential benefactors to trainers, who need to tune in to that network.
• Define the business plan. Doing well, winning more races and surviving financially is not a plan. Trainers need to understand the different elements of successful operating models, and adopt them.
• Grow the revenue. Often easier said than done, particularly with insultingly low levels of prize-money. Having said that, how many trainers have an explicit plan to improve financial return on assets?
• Reduce the cost base. As an example, the Thoroughbred Breeders’ Association has a collective purchasing scheme. How many trainers participate in it? Less than 10%? Says everything.

3. Improve the Economics of British Racing for Grassroots Trainers

• Address over-concentration at the top. The elite tier of owners, trainers and breeders are taking a disproportionate amount out of the sport. In effect they are being supported by the lower tiers.
• Spread the wealth. The owners, trainers and breeders of top horses already benefit hugely from downstream breeding. They are appropriating far too much money from the sport. Cap the prize-money for Group and Graded races. Redirect it into lesser racing.
• Redistribute prize-money and reduce certain types of race. Again, there are far too many races at Listed level on the Flat, or beginners’ / novice chases, that have small fields and are milked by Tier 1 trainers. Reduce them and have a substantial increase in claiming type races, rather than handicaps.
• Restrict the number of runners in the same ownership. No trainer or owner should be allowed to have more than two horses in any race. The top tier are manipulating races through their competitive and numerical strength.
• Develop a race series for the middle market. Help the smaller trainers by introducing a series of races confined to trainers with, say, fewer than 50 horses.
• Copy the French model on handicaps. The vast majority of grassroots trainers are winning primarily at handicap level. Richard Hughes has argued wisely that increases in handicap ratings should only apply to the winner. Adopt the French system. Put the winner up in the weights and reduce all the other horses.
• Copy the French model on placed prize-money. Again in France, the second-place money is half that of the winner. In England it is usually far less than that. The trickle down of total prize-money percentages to trainers is a lifeline, and this would be a big financial contribution.

That’s as far as I need to go, I think! I’ve brainstormed twenty ideas. Doubtless some of them will be seen as totally impractical and / or will disturb the cosy cronyism at the top of the sport. A working party of trainers, I’m sure, would come up with far more. Hopefully this series of blogs has hit home and it would be marvellous if there could be a positive response through the design of a change programme that would really help the majority of British trainers.

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.

Osarus Sale, Arcachon and the Ayr Western Meeting: All About Getting Maximum Enjoyment as an Owner

Regular readers of the blog will know that I’m a firm believer that because there are so many downs and disappointments with racehorses, it’s vital for owners to try to get as much enjoyment as they possibly can from all aspects of the ownership cycle. Being involved in partnerships with co-owners quickly forms many friendships around the common bond of owning. My wife and I certainly experienced that during September, with visits to the sales and several race meetings in the company of owners who have now become friends.

Sunday Break – Lots of weekends away
with the new horse

A couple of weeks ago we went over to the Osarus sale near Arcachon, south-west of Bordeaux, with Karl and Elaine Burke. We share Karl’s view that there are always good horses in every sale, and you don’t necessarily have to go to the premium sales and spend prodigious amounts of money to obtain them. This has certainly been the case with our last three purchases out in France at the Arqana sale in Deauville, and we’re hoping that we’ve turned up another useful prospect in a chestnut colt by the Japanese / American sire, Sunday Break. He is from the American line of Mr Prospector, and our ideal was a US-bred because they often act well on the quick ground that is becoming increasingly common in northern Europe. As you can see on the photo, he is a big, strong, precocious type, and on breeding he ought to stay middle distances. With the dream starting, one would hope that he might make it to a race such as the Chesham at Royal Ascot, but only time will tell. If not, there is a perfect 6f Listed race for him back at the Arcachon racetrack at La Teste de Buche in early August, with the French premiums boosting prize-money by 64% plus an extra premium for graduates of the Osarus sale. Interestingly this year’s Chesham winner, Suits You, was bought cheaply at Osarus.

However, it wasn’t just the sale that was enjoyable. Being with our trainer and co-owners out in Aquitaine provided opportunities for eating, drinking and good fellowship. Arcachon is the oyster capital of France, and quite a number of mighty molluscs slipped down the system, particularly at the seafront restaurant Chez Pierre, as well as a magnificent reception hosted by the Osarus sales house. One of our fellow owners also bought a Mount Nelson filly, and there is a lot of fun being had in trying to name her. You can guess why if you look at Lot 85 in the Osarus catalogue!

We flew back into the UK on the Wednesday evening and then drove almost straight up to Ayr for the start of the Ayr Western meeting. It is a 12-hour plus round trip and most people would suppose that to watch one’s horse come last would be a dismal experience. The plan was for the horse to be dropped out, with a lot of cover, and be taught to settle. Unfortunately Jolievitesse broke very quickly from the stalls and shot into the lead while the rest of the field were reined back, and then blew up at the mile post. And yet the owners had a fantastic time at Ayr during the three days and soon put the disappointment behind them. This was certainly helped by all of us having a good bet on Karl’s winning filly, Quiet Reflection, who paid for a magnificent dinner (she will probably go next to either the Cornwallis Stakes at Newmarket or a Group 2 at Maisons-Lafitte). There is a theme emerging – good meals and fine wine, in beautiful locations, with friends from racing. This time the seafood was courtesy of Scott's Bar & Restaurant at Troon harbour, looking across to Aran. At the end of the harbour is another fine restaurant, MacCallums Oyster Bar, as well as Scotland’s best fish and chip take-away alongside – Wee Hurrie. It is the only place where I’ve ever seen lobster and chips!

We’re already looking forward to the Ayr festival next year. It’s a track that looks after owners superbly well, as anyone who has enjoyed the owners’ lunch in the Western Hotel can testify. The atmosphere building to the Ayr Gold Cup is electric, and this year the crowd went crazy after the favourite, Don’t Touch, won readily. It’s rare for me to leave a meeting in profit, but I certainly did from this one, together with great memories from a really enjoyable week.

That’s it now for restaurant recommendations. Having said that, owners are going up to Yorkshire soon to see the new horse, and doubtless we’ll enjoy the sumptuous meals at the Wensleydale Heifer. Diet postponed!

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.