After a thrilling conclusion, the National Hunt season is now behind us and high-class Flat action is coming thick and fast – unfortunately it is hard to be so positive about events off the track, with progress painfully slow on both key funding decisions and a new commercial agreement around the distribution of the sport’s finances.
Just under 12 months ago there was real momentum around the prospect of a new levy deal, with genuine hope that an agreement could be reached before the summer. We all know what happened and to be frank there has been no progress since the election starting gun was fired. The industry needs to reset its strategy when it comes to engaging with both the Betting and Gaming Council and the government.
The online casino businesses are firmly in the crosshairs when it comes to problem gambling concerns; racing must establish clear air between our sport, with its betting based on skill, and the online apps. For too long been we have been lumped in with slots and casino games when it comes to policy around gambling, and this has hindered not only betting revenues but also our ability to negotiate a sound and lasting levy solution.
There has also been continued speculation around changes to gaming tax rates. The government is obviously looking at ways to balance the books and online gaming could be seen as a target. British racing contributes a huge amount to the public exchequer via direct and indirect taxes as well as being a key contributor to the rural economy. There could be a scenario where a tweak to actual tax rates and how they are levied could well provide a positive solution for racing. However, the danger is ever present that targeting gambling has knock-on consequences, therefore a strong lobbying campaign is essential over the coming weeks.
Positive conversations have been had with racecourses and the RCA over several months in respect to establishing a workable partnership agreement. There is now an absolute necessity to get something agreed to ensure that, as we go forward, the various parties are aligned. Establishing a mechanism that ensures not only a sensible commitment to current prize-money contributions but also guarantees that any uplift in inward investment is distributed amongst the parties is crucial.
The major aim is to future proof the distribution agreements sooner rather than later to avoid further acrimony. There remains a widespread underlying mistrust of the real cash flows being generated by racecourses through media rights deals, and whilst the Thoroughbred Group has had access to many racecourse P/L accounts under non-disclosure agreements, this will not be satisfied until a robust agreement is in place. Establishing a guaranteed base prize-money contribution with a share in the upside should be within the powers of the RCA, BHA and Thoroughbred Group.
There has been a fantastic response to the recent ROA owners’ survey, which has been sent to members as well as non-member owners. Racing has suffered over the years without proper engagement with its core funding group, namely owners of all types. The piece of work currently underway in conjunction with the BHA around owners is already producing some very informative feedback. The results from the survey will provide us with our first data-driven insights in several years. Finally, the industry will have the information we need to tackle the decline in ownership. Prize-money will remain the number one concern, however, with different ownership types, real data-driven information is crucial to tailor the product and experiences accordingly.
This will be the last column before Lord Charles Allen takes on the mantle of Chair of the British Horseracing Authority. Lord Charles has had a stellar and varied business career and is enthusiastic that he can make a real difference to the BHA itself and the wider industry. A big job no doubt, but there is a lot to work with. The best racing in the world, the best participants, daily media coverage, two dedicated television channels, terrestrial TV coverage and some of the biggest sporting events on the planet. I wish Lord Charles the best and look forward to working with him from next month onwards.
