Why it’s Time for British Racing to Develop a UK-Wide Syndicate Strategy to Grow and Retain Owners for the Sport

In the last blog, a number of priorities were flagged up for the new Chair of the BHA, Annamarie Phelps, who took up the leadership position on 1st June. I’m sure by now she’s only too aware of the big challenges facing racing and the key questions that need to be raised, and then answered. So for example, what are the major sources of funds that will guarantee the viability of the sport (the last blog echoed Steve Harman’s call for action with regard to the next stage of Levy development); does the expansion of the race programme continue (as the new CEO of the Racecourse Association advocates), or is it reduced (as the Horsemen’s Group would probably prefer); what are the priorities and funding implications of the new ownership strategy being developed by the Racehorse Owners Association; what are the ethical and integrity issues that need to be addressed as part of risk mitigation for the sport; and how are the problems of recruitment, retention and welfare of racing staff to be resolved? Doubtless there are also many other pressing concerns for Annamarie’s first 100 days.

All those questions are relevant for someone taking a top-down perspective on racing. Obviously in Owners for Owners we’re immersed in the day-to-day of grass-roots owning and syndication. However, in this blog we’re trying to make the link between the top-down and bottom-up perspectives in the context of syndication.

We’re members of the Racehorse Syndicates Association, which is actively promoting ongoing improvements in the ownership experience so that syndicate members are attracted into the game and retained within it. As part of that promotion, several important and little-appreciated facts are being publicised. It should be said that the numbers are only estimates, as absolutely no-one anywhere in racing has accurate facts and data on the importance and contribution of syndication to British Racing …. and that says everything, doesn’t it!

• Insight 1: there are 2,500 syndicate organisers in the UK. Assuming ten owners on average per syndicate, that is 25,000 owners. They are the unknown stakeholders of British Racing.
• Insight 2: the total number of horses owned by syndicate organisers in the UK is estimated to be 5,000. Assume that the expenditure with trainers, vets, jockeys etc. is £20,000 per year, that is £100m contribution to the racehorse training industry.
• Insight 3: if we assume that the syndicate organisers replace these horses every other year, and the average bloodstock price is £30,000, then the income for the bloodstock industry is £75m.
• Insight 4: the running of syndicate horses clearly makes an important contribution to competitive racing, betting turnover, levy and media rights. We have no knowledge of the quantum of this, but let’s estimate that it is £25m.
• Insight 5: if 2,500 syndicate organisers and the 25,000 owners is correct, and these owners visit racecourses once a month, spending £50 on each visit, then that is a £30m income for racecourses across the country from syndicates.
• Total annual contribution to British Racing from syndication is £230m.

At the moment, British Racing has no strategy focused on this important sector. As already mentioned, it has no meaningful data. It has little knowledge of the syndicate members, nor their needs and requirements. Faced with what is in effect a “black hole”, there must be a considerable opportunity to grow significantly the syndication of racehorses in the sport. In the past there have been one or two rather trivial attempts to promote syndication, of which a good example is the flawed “In the Paddock” web site that doesn’t even work properly. It all looks very amateurish and half-hearted.

Everyone in racing surely buys into the expansion of syndication. However, to do that there are a few much wider issues that need to be addressed, as highlighted in the diagram below. The left pyramid shows that there is an over-concentration of money at the top, while the grass-roots foundation, which is where the vast majority of syndicates are operating, is crumbling, with many trainers and owners struggling financially. One solution would be to change the ratio of prize-money between the top and the bottom of the pyramid. As a timely example, although we adore Royal Ascot as an event with all its pomp and circumstance, it embodies the elitist nature of the sport. That is not an argument to change Royal Ascot, but we believe that far too much money is concentrated into the top races, and therefore goes to the top owners, trainers and breeders. We need more money for the grass roots. In the right hand diagram, the point is also emphasised that any realignment of prize-money should flow to the races that are the most competitive and generate the greatest betting levy. I wonder whether that data is readily available ….. or is it another black hole?

On a personal note, we’re involved with the RSA in the launch of the first-ever Syndicate Sunday at Stratford-on-Avon Racecourse on Sunday 21st July, and hoping it will be really well supported by trainers and syndicators across the country. We’re determined to celebrate the success of syndication ….. and raise a glass to its expansion.

Fundamentally Changing the Ownership & Prize-Money Pyramid

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Congratulations to Richard Johnson OBE, Some Terrific 6yos and Our Own Winners from 2018. Here’s To Many More in 2019

The whole of racing must have been delighted on the announcement that Richard Johnson is to receive an OBE in the New Year’s Honours List. He is a terrific ambassador for our sport, a role model for all aspiring jockeys and one of the most genuine and nicest people you’ll ever meet. We have had more winners ridden by him than by any other jockey and it never ceases to amaze me how he can be unceasingly polite, friendly and positive to every owner, no matter how minor. He has ridden a couple of winners for our Racing Club at Martin Keighley’s and each time he has been kissed senseless while enduring endless selfies being taken with him. Top rider : top bloke.

One of the real pleasures of being an owner is the way in which you get to know so many friends, their families and their wider racing network. I always try to follow the horses that our owners have with other trainers and it gave me real pleasure over Christmas to see the successes of John Finch with Doitforthevillage at Paul Henderson’s, Jamie Wadge and Shaun Beach with Suggestion at Phil Kirby’s and then Ged Shields with Kemboy and Willie Mullins. As always in racing, so many stories around these various horses: Paul Henderson is a maestro at sourcing reasonably-priced horses in Ireland, getting them on to the right mark and then reaping the rewards; Phil and Pippa Kirby, from their base near Bedale, are steadily climbing through the ranks and it was wonderful to watch their star mare, Lady Buttons, win for the 11th time at Doncaster last Saturday. All grass-roots yards need a stable star, and they have got one with her.

And then of course, Kemboy – only a 6yo but he romped home in the Savills Chase with his emphatic victory shortening his odds for the Cheltenham Gold Cup from 40/1 to 6/1. Ged and Brenda Shields had arranged a super weekend for themselves at Newbury when Kemboy was due to run in the Ladbrokes Trophy, and were devastated when the stormy weather and rough crossing for the ferry forced the horse to miss the race. I phoned Ged just after the race at Leopardstown and he was absolutely thrilled, and kept saying a single word: “Wow!” Delighted for all the connections in the syndicate, organised by Supreme Racing. If Kemboy makes it to the Cheltenham Festival in either the Gold Cup or the Ryanair, it would be the highlight of the week for me – unless one of our own horses manages to get there.

Two other 6yos made a big impact as well over Christmas: Clan Des Obeaux, under a magnificent ride from young Harry Cobden, duly won the King George VI Chase at Kempton and looks a real star; and then when my wife and I were at Chepstow we enjoyed watching Elegant Escape win the Welsh Grand National, having come 2nd in the Ladbrokes Trophy (the race Kemboy should have won) at Newbury. We had a chat with Tom O’Brien just before the race, then another one when he came back. He was ecstatic and it’s a real pleasure to watch Tom winning races such as this, particularly as he’s having his best-ever season. He has also ridden many winners for us and is one of the most sympathetic riders around – a real horseman.

A year ago today, Acey Milan won the 4yo Listed Bumper at Cheltenham for us, and that kicked off the year in the best possible way. Six other horses won through the year: Dr Dunraven and Lord Condi (Martin Keighley), Melekhov (Philip Hobbs), Scented Lily (Charlie Longsdon), Sojourn (Anthony Honeyball) and Sunday Prospect (Karl Burke). Another horse in which I have an involvement, Nobby (Alan King) also won twice, including my first-ever win at a Point-to-Point, namely the Barbary Castle International. We were lucky enough to visit his breeder, Ray Bailey, fairly soon after Nobby was born, and fell in love with him straight away. Before you ask, he’s named after Nobby Styles, the footballer.

Winners Galore in 2018 …. Hoping for More in 2019

The New Foals – Stars for 2021+

There is something adorable about foals. Not only are they such beautiful creatures, but it is the sense of renewal as young horses enter your life to replace those who have retired and moved on. We managed to buy three this year, and they are loving their life in the Condicote paddocks at Martin’s yard. Most of the shares in these foals are now taken, but there are still a few left so if you would like to be involved in “future stars”, please let me know. For many grass-roots National Hunt owners this is one of the few ways of getting involved at a reasonable price, with the enormous hikes in sales prices of the established stallions. Indeed, just before Christmas I noticed that Envoy Allen had won for his unusual NH owners, Cheveley Park Stud, for Gordon Elliott (cost a cool £400,000 at Cheltenham’s February sale) and while at Chepstow I watched Ask For Glory winning his bumper on debut (a mere £280,000). The startling sums being paid never cease to amaze me.

From today I am switching to only one blog a month, but will continue to lobby for improvements in the total owner experience, not least because I’m going to promote the Racehorse Syndicates Association and help them with their press releases. Lots of improvements are still required if owners are going to be brought into the sport and retained.

Finally, very best wishes for 2019: may it be happy, healthy and successful, with lots of winners if you’re an owner.

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.

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.

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.

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.