The Ballad of Thady Quil – A Parable on Financial vs. Emotional Return on Ownership

It’s always very interesting talking to owners about what they want from the ownership experience. The more you’re involved in racing and the better you get to know owners and trainers, so the more complex the whole equation becomes around the various factors that contribute to a really positive owner experience.

At one end of the spectrum a lot of owners I know couldn’t really care less whether the horse wins or not. They just want to be on the inside track of racing, close to trainers and, most importantly, close to the absolutely superb animal that is the racehorse. They don’t mind standing in the mud on a cold winter’s day, cheering on a mediocre horse as it (slowly) makes its own way home in a Cl.5 or Cl.6 at a country track. If the horse manages to win it is a fantastic bonus for them, but it is not the economics that determine whether they enjoy owning racehorses or not. For them, the emotional return on ownership is everything.

However at the other end of the scale I know an equal number of owners for whom the financial return on ownership is extremely important. While they love the whole experience of racing and owning, they look at everything through the prism of finances and commercial return. Because we all know that the prize-money in British racing is amongst the worst in the world, this financial perspective is often more to do with stopping loss rather than making any profit. So they tend to take a very realistic and pragmatic view on horses and if the animal is unlikely to win at, say, Cl.4 or better, then it has to be moved on as soon as possible.

The more horses you own, the more you tend to move along that spectrum where the commercial return matters. Because with mediocre horses you are losing 92p in the £, you soon develop the mentality that it is better to come out of the horse rather than stay with it. The dynamic between these two very different types of owner and owner experience is probably the hardest aspect to manage when running partnerships, as in Owners for Owners.

One of our horses, Thady Quil, neatly illustrates both ends of the spectrum. He was bought at the Brightwells sale as a gorgeous prospect. We were dreaming of Cheltenham successes with this beautiful, big and sturdy son of Stowaway. We didn’t name him, but his namesake (actually spelt “Quill”) was a well-known Irish character immortalised in The Ballad of Thady Quill. Listen to it on the following link: www.youtube.com. You can even sing along to it, as we adapted the ballad for our horse. Here’s our verse:

For runnin’ and jumpin’ and winnin’ his races
And leadin’ the field up the Cheltenham hill,
In all your days’ racin’ you’ll see nothing finer
Than the great chestnut gelding, the bold Thady Quil.

What dreams we had. Unfortunately when we took him home to Martin Keighley’s and trained him, we soon realised that his wind wasn’t everything it should have been. His debut for us was at Newton Abbot on 7th May 2015, and he was pulled up – the first of six such occurrences. The renowned wind surgeon, Ben Brain, worked through three operations of increasing severity until there was nothing more that could be done. In between the disappointing episodes of pulling up, there were a number of encouraging performances, most notably at Warwick when Thady came 2nd to Paul Nicholls’ El Bandit, who is now running off OR 141. But these were rare glimpses of the potential within, and for most of the time the wind prevented our horse showing his “inner racehorse”. The mark dropped steadily until on 5th July this year at Worcester he was running off 82 in the Worcester News Handicap Chase, Class 5, 0-100.

By then, half the partnership had dropped out, the economic return on ownership having kicked in. Not enough fun for the money. Not everyone relishes Family Fun Days of summer jumping.

Thady Quil – Spot the Owner

So what does Thady do on 5th July … he wins by 12 lengths from Cry Fury, with the 3rd horse another 20 lengths back. Finally, finally, he gets his day in the sun, winning the huge purse of £3,119. Racing Post comments were along the lines of: “travelled smoothly, jumped well, drew away for a comfortable win”. Those of us close to Thady, who absolutely adore him, shot straight off the scale of the emotional return on ownership – huge pleasure, deep joy and a profound delight that our lovely horse had finally showed us a glimpse of what we always thought he was capable of.

The handicapper promptly banged him up by 15lbs, which I have to say is a complete disgrace for a horse who has had three serious wind ops and finally managed a win in a race that fell apart around him. Once again it highlighted the appalling economic return with the handicapper doing everything possible to block the luxury of a repeat. Who knows, maybe Thady will prove him right, and nothing would give me greater pleasure for the owners who elected to keep the faith. Their emotional return is something they will never forget. Go, Thady!

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Will the New PASS System Pass the Tests of Ease of Access and Enhancing the Owner Experience?

Regular readers of the blog will know that I have been campaigning over a number of years for radical improvement of the owner experience in terms of the way in which owners collect complimentary badges and enter the racecourse. At times I have been very critical of the old-fashioned way in which Owners & Trainers desks sometimes operate (no computers, when they do have computers there’s no internet access, if they do have access there’s no broadband, loads of paperwork and print-outs on which they can never find your name, long queues of owners irritated by endless delays, further irritation by people who are clearly trying to blag their way into the racecourse with no entitlement to badges, almost accusatory interrogation about who you are and proving your identity, etc.), while other elements of my campaign have argued for the adoption of customer relationship management (CRM) approaches where through technology and smart cards, different types of owner receive different types of benefits based on their contribution to racing through ownership. Basically the more you spend on owning racehorses, the better the benefits.

My ideal would be that everyone in the UK who is an owner in a racehorse (no matter what size the share) would have a smart ID badge that automatically contains information about their ownership and entitlement to badges and benefits. The more shares / horses you own, the better the quality of lounges and hospitality arrangements you can access. This would parallel the decades-old airline model of first-class and business-class lounges. Apparently in Australia this type of arrangement is already operative, with the benefits based around tiers of points. Although I have no first-hand experience of the scheme, it has apparently proved very motivating with owners investing in more shares in horses to lift themselves into the next tier of enhanced owner facilities. It wouldn’t necessarily need to be through a badge – it could just as easily be via a smart phone. Alas, this ideal still seems to be an awfully long way off for British, and indeed European, racing.

But some encouraging changes are under way, and a fair bit of innovation is coming into racing over the next twelve months which ought to enhance the owner experience. Let’s hope that all of this will be successful, particularly the way in which it is implemented. Again, regular blog readers will know how critical I was of Weatherbys Bank when they “upgraded” online banking. They are still sorting out that disaster.

In the UK, the Privilege Access Swipe System (PASS) card was introduced over 20 years ago by racecourses to manage exclusive complimentary access for owners to courses. From 1st November this Autumn, new gold PASS cards have been provided by the Racecourse Association (RCA), with some ambitious goals. They have been designed “to ensure quick and easy access to racecourses”; to “revolutionise your pre-arrival and entry experience”, giving you “the chance to personalise your raceday experience from start to finish”, and “this modern and mobile system allows better communication between you and racecourses, ensuring a personal touch to the raceday experience”.

The new PASS card is to be used whenever a registered owner has a runner, and also to gain entry via the Racecourse Badge Scheme for Owners (RBSO), which allows ROA members who are registered owners to gain complimentary access to over 1,300 race fixtures per year as long as they have 50% of a horse (or shares equivalent to that). Details are on www.rcapass.com and there is also an online concierge system to check allocation of tickets, pre-assign tickets to guests and discover information about special arrangements.

All of this sounds absolutely fantastic, as long as it works in practice for all the different types of owner, and particularly those in partnerships and syndicates. The major challenge for those who organise such shared ownership arrangements, and particularly for National Hunt where there are still 24-hour declarations, is that there is not a lot of time to liaise with all the owners and receive their instructions in terms of who will be attending and their requirements for additional badges for any guests, as well as confirming eligibility for lunches. Under the old system, which is now being replaced, the reliance was on telephone calls, faxes or emails to courses. Sometimes, with some courses, this worked well, but with others it didn’t. Whenever I have gone racing I have always taken a printed copy of the correspondence with me to sort out the errors and mistakes, and prove that we had given the course clear instructions. That shows how often the system broke down.

I had hoped to report by now on how well the new PASS system is working. I have tried to use it on two trips to the track, but on the first occasion they wanted to stay with the old system and on the second “the system was down” and computer said no. Not the most encouraging start! On the implementation timescale that the RCA has mapped out, they are convinced that the system should be “firmly established” from 1st January. We will have to wait and see. If any of you experience any problems at all with the new system, please let me know and I will do an update on how the new system is working in the New Year. For the sake of racing, I do hope that the RCA learnt from the Weatherbys debacle, and that the new system has been properly trialled and guaranteed to work really effectively. All crossed!

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.

ROA National Racehorse Owners Survey – Part 1, A Summary of the Results

When I took part in the BHA’s pillar strategy process a couple of years ago, one of the frustrations was the lack of facts and data on which to ground discussions and the formulation of important initiatives. The Racehorse Owners Association (ROA) felt exactly the same, and were determined to canvass both current and lapsed owners to find out their views, particularly in terms of what brings them into the sport, retains them and indeed drives them out of ownership. In this first blog on the subject I have done no more than list out the results from the survey. In the second part, on 1st September, I’ll do my own analysis and draw conclusions on what I think the survey actually tells us.

Encouragingly there was a good sample size, with 2,203 responses including a number of “hard to reach” owner samples such as new owners with less than two years’ ownership experience (255) and lapsed owners (203). Interesting to see that the average age of a racehorse owner is 59; the percentage of lapsed owners who cite facilities and treatment of owners at racecourses as a factor in their decision to give up ownership is 44%; the duration of ownership is longer for ROA members; the satisfaction rating of the ownership experience is higher for syndicate members than for sole owners; and the percentage of lapsed owners who would like to own horses again is 73%.

Theme 1: Owner Experience Results

1. 73% of racehorse owners started out with others.
2. Nearly one in four owners have taken a break, most due to finances or horse injury.
3. The most influential steps to ownership are speaking to a trainer or other owners.
4. New owners take more decision steps and are more likely to research online.
5. Ownership is born out of family history, keen interest in racing or attraction to the excitement.
6. New and syndicate owners think of the excitement above the expense.
7. Owners are not likely to recommend owning a racehorse to their friends.
8. Costs and prize-money are primary lapse reasons, racecourse and trainer experience crucial.
9. Three out of four lapsed owners would return to owning if the circumstances were right.
10. ROA members are much more likely to remain in ownership for longer.

Theme 2: Trainer Experience Results

1. The most influential steps to ownership are speaking to a trainer or other owners: 53% say that speaking to a trainer or visiting a yard is the key step, and for 22% it is speaking to other owners.
2. Owners want more information on costs and trainers: particularly on training fees, engagement and the owner experience, income and expenditure, and clear cost models so owners know what they are getting into.
3. Trainers are approachable but could communicate more information, more regularly.
4. Costs and prize-money are primary lapse reasons for 80% of lapsed owners; trainer experience (29%) is also crucial.

Theme 3: Racecourse Experience Results

1. The racecourse is the pinnacle of the ownership experience: the primary motivation to become an owner is the enjoyment of watching your horse run.
2. Racecourses are the shop window to ownership, not the salesmen: speaking to someone at a racecourse is not a crucial step in the decision to become a racehorse owner.
3. New owners are motivated more by the social aspects of racing: particularly with combined with the enjoyment of watching your horse run as well as the non-raceday social elements.
4. Winning is an important bonus, not the be-all and end-all: fewer than one in 12 owners believe that winning is everything.
5. Costs and prize-money are primary lapse reasons for 80% of lapsed owners; racecourse experience (44%) is also crucial.

In the second blog on the survey, the intention is to explore whether there may well be a “two factor” model working here. I know that sounds a bit jargony, but it could be that there are subtle but important differences between the factors that bring people into the sport and those that discourage them and ultimately may drive them out of the game. Thinking caps on over the next fortnight on that hypothesis.

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.

How to “segway” from Beer Consumption to Growing Racehorse Ownership in British Racing – A Further Note on the BHA’s Growth Strategy

I was delighted to read of a research study done by the Mediterranean Neurological Institute concluding that moderate daily beer consumption reduces the risk of heart and circulatory diseases by a quarter. Apparently the phenols in the flavour act as an antioxidant and anti-inflammatory and also protect the body against viruses. Here in the Hawling Institute we have also concluded through even more extensive research over many years that combining this with red wine drinking guarantees receipt of a telegram from the Queen on reaching your century.

So a number of our owners put this latest finding into practice this week at York for the Dante meeting, not least celebrating a game 4th by our horse Jolievitesse on the opening day. Readers of this blog will know that I believe York Racecourse sets the bar for the total owner and racegoer experience. They are continuing to invest heavily at the track, with prize-money this year increasing to £7m despite a £200,000 decrease in levy funding. Last year they achieved record turnover and attendances. Their £60m-plus investment in facilities for horses, horsemen and racegoers over the last 20 years has paid handsome dividends. Jolievitesse’s race was only Class 4 but had a prize fund of £15,000 with £9,700 for the winner but still £721 for the 4th. The 20-runner field will have guaranteed significant betting and substantial levy contribution. It is this virtuous circle that racing is striving to achieve on a broader basis.

We weren’t however debating racing politics after this fine run, but there was a fair bit of discussion about how good the York experience is, particularly when you are staying in country hotels and dining in excellent restaurants. If you’re in the area, do visit The Crown Inn at Roecliffe. I don’t know of any course that offers such good value, with champagne at £30 a bottle and Theakston’s best bitter at £3.30 a pint, readily available in their new bar set up to offer local beers. Indeed York makes a big point of the partnerships they have developed with local suppliers of beef, smoked salmon, trout and fine cheeses from Ryedale, Wensleydale and Hambleton. I bet you feel hungry now! Courses can do a lot more to showcase local produce. Cheltenham did so at the October meeting and it was a great success.

The racing at York, as usual, was top-class, not least the superb runs by So Mi Dar in the Musidora and Wings Of Desire in the Dante. John Gosden came up with a nice comment about his now Derby favourite, that what he most enjoys is “eating and sleeping”. If you add in drinking beer and wine as well, it would cover most of the Owners for Owners network!

So York racecourse definitely demonstrates what can be done to enthuse racehorse owners. At the BHA forum I attended at Newbury on 1st March, Richard Wayman made a typically strong presentation in which he balanced discussion on the disappointing contraction in the UK ownership base (horse population down 9% from 2008; steady decline in registered owners over the same period, down 17%) and an analysis of its causation (the poor economics of ownership in the UK; a need to strengthen owner engagement; insufficient promotion of ownership, not least in syndicates; and needlessly complex ownership structures, systems and fees) with an outline of a number of practical initiatives to improve the situation.

Obviously the key to prize-money is tied in with levy replacement and capturing racing’s rightful contribution from the offshore bookmakers. I’ve covered that before in the blog, so won’t touch on it again. Richard, though, emphasised that it is not all about prize-money and stated strongly that owners must feel valued within racing, and clearly trainers and racecourses are at the heart of that. There is also apparently going to be a major innovation to streamline ownership administration from early 2017 as well as a big push on ownership, particularly with a campaign to promote syndication. There will be a central ownership hub, close liaison with racecourses and the introduction of a code of conduct for syndicates, thereby ensuring far more transparency and helping prospective owners make a more informed choice.

As this was right at the heart of why we set up Owners for Owners, we feel vindicated. Time to reflect on this with a couple of pints of Donnington’s Best Bitter in The Plough at Ford, my local watering hole just round the corner from Martin Keighley’s stables. Maybe it’s time to think about a Plough partnership.

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.