Racing in Central Europe: Hoping for another Overdose

VERDOSE first got the attention of the international horseracing community when he was preparing for his 11th victory in a row, in the Group 1 Prix de l’Abbaye on the Arc undercard in 2008. He made an excellent run in the race and was declared the best sprinter by many after winning, surpassing the track record. However, it soon became clear that he did not win after all, as a starting gate failed to open because of a mechanical fault. The race was declared void by the stewards and was re-run without Overdose. Despite the circumstances, his manner and speed inspired awe in horseracing fans and experts alike. At the end of that year, everyone was looking forward to the next season, when as a four-year-old he could reaffirm that he was one of the best sprinters of the world. For the sake of the Hungarian audience, the BUSINESS The Budapest Bullet, Wunderpferd (Wonderhorse), “la bombe hongroise” (“the Hungarian bomb”) – these some of the nicknames given to the Hungarian sprinter Overdose. Such nicknames are merits earned by special horses only. Besides his awesome speed, Overdose is also special because he is based in an area that rarely – if ever – yields horses capable of winning Group races: Central Europe; more specifically, Hungary. WORDS: GabRiella VOnczem PHOTOS: béla JUSzel horse commenced his four-year-old season at Kincsem Park in Budapest. The Hungarian media – formerly quite oblivious to horseracing – paid close attention to the run- up to the race, with one of the most popular commercial channels providing several hours of coverage of the day and with politicians and other distinguished persons never seen around the place in attendance. Kincsem Park overflowed with patrons, and fan clubs from around the world discussed every single move of the horse. The horse was to be ridden by star jockey Christophe Soumillon. Even Lester Piggott wanted to see the horserace in person – it was also his first visit to Kincsem Park, just like Soumillon’s. The international media was represented wby a large number of correspondents and reporters. The hype continued to the point where the fabulous story of this small horse – bought in England for just 2,000 guineas but with incredible running capabilities and ending up in a country with practically no significance in terms of horseracing – hit the front page of New York Times. Overdose became as popular in Hungary as Frankel in the UK or Black Caviar in Australia. In the meantime, Overdose did something even more remarkable, which no one outside the Hungarian horseracing profession was aware of. Run as state monopolies, Hungarian companies engaged in the organisation of horseracing and betting had been operating with a loss for decades, with the owners considering termination of the business altogether, which would have ended horseracing in Hungary. However, Overdose has proven the true interest that people of various nations, international and local media, advertisers, and political and financial decision-makers, so for the time being, horseracing in Hungary would definitely continue. This challenging situation as well as state participation in horseracing prevails across the entire Central European region except Austria. The basic foundations are also in place since horseracing goes back a long time here, since, for example, 1826 in Austria and 1827 in Hungary. Today, Central European horseracing has its soundest foundations in the Czech Republic. This is where the largest pool of thoroughbreds, the highest number of races – with jump racing in addition to Flat races also being popular – the largest pool of owners, and the largest number of professionals are represented. It is here that the highest sums are granted as owners’ premiums. Czech horses also represent some of the best quality across the region. Last year, the highest-rated Czech horse named Dux Scholar bought from Khalid Abdullah’s UK stables finished second at Longchamp on Arc de Triomphe day, in the Group 2 Qatar Prix Daniel Wildenstein. It is quite true though that his owner is not Czech, but Ramzan Kadyrov, President of Chechnya. The Czech Republic markedly outnumbers other countries in terms of racecourses, with 12. They are owned – in addition to the state – by towns, the Czech Jockey Club, and other businesses that also engage in their operation, in contrast to most other countries in the region. The Czechs also do a good job with breeding, with the second largest number of foals in 2012 second only to the Polish. Czech horseracing faces major challenges currently. The first one lies in the Czech’s unwillingness to bet; they would rather attend the racetracks for their love of the sport. Betting handle had dropped to €1.17 million “Czech horses also represent some of the best quality across the region. Last year, the highest-rated Czech horse Dux Scholar finished second in the Group 2 Qatar Prix Daniel Wildenstein” by the end of last year. Incidentally, the Czech Republic is the only country in the region where bookmaker betting is available in addition to tote betting. Low turnover from betting results in inadequate prize funding. Some calculations show that revenues from betting cover only a mere 10% of prize money. In addition, the Czech government has imposed a special tax on gambling subjects and tighter restrictions on sponsoring horse racing as well. Two events, however, clearly represent exceptions in terms of popularity. The most widely known one is Velka Pardubicka in October, when the grandstands are loaded with visitors, even international media pay particular attention to the races, and the horses participating also represent the cream of the crop. Another major attraction is the Czech Derby day. Without parallel across the region, an increase in prize money to the ‘astronomical’ figure of €90,000 has augmented visitor numbers and resulted in a much better selection of horses and jockeys. In contrast with the Czech, people in Poland, the largest and most populous country in the region, are keen on betting. OTB is available at 113 units, bars, lotteries, and betting offices. The annual turnover of €3.1 million in 2011 – despite being the highest in the region – is still insufficient for running horseracing in Poland without support from the state. Betting is controlled and developed by the state-owned betting company, with success, while the Polish Jockey Club is responsible for organising horseracing. Unfortunately, difficulties in cooperation between the two companies adversely affect the business in Poland. Poland’s major racecourse is located in the capital, Warsaw, where a total of 57 racing days were held on Sundays and Saturdays from spring to autumn. In addition to the metropolitan track, two others – in Wroclaw and Sopot – are in operation with a few meetings held. The number of thoroughbreds exceeds 1,000 and owners number more than 300, with half the pool of experts, trainers, and jockeys as compared to the Czech Republic. Horse races, training centres or studs in Western-European countries often employ Polish colleagues. In other words, this profession is also heavily affected by migration abroad. Purses in Warsaw are second lowest, corresponding to an average race prize of €2,782 per race in 2012. Breeding in Poland also faces difficulties, still featuring the greatest number stallions (83 in 2011) and broodmares (651 in 2011), and with the most foals (373 in 2011) born in the region. The Polish do wish to maintain their leading position, and for this reason, pay breeders the highest breeding premium. The Polish pride themselves in having bred a number of excellent horses over the past few years, including Age of Jape, unequivocally the highest rated three-year-old in Central Europe in 2009, having won the Czech Triple Crown and the Slovak Derby, and delivering in renowned jump races in Italy as well. “The annual turnover of €3.1 million in 2011 – despite being the highest in the region – is still insufficient for running horseracing in Poland without support from the state” In addition to Poland, another nation with an inclination to bet is Hungary, where a total of €1.036 million in bets were placed over 32 racing days. This revenue was achieved despite having a total of merely twelve OTB locations. Significant improvement came in 2013 with the replacement of the long-outdated betting system with the French PMU, the most advanced one in the region. Therefore, the new system represents a major development; however, Hungarian racing would experience a real breakthrough with the availability of betting on Hungarian races from a fully international PMU system. Meetings in Hungary are held in Budapest at Kincsem Park on Sundays. The number of racing days has been much the same over the past few years, just like the number of racehorses (452 in 2012) and the number of owners (124 in 2012). Prize money is on a gradual rise, with the average purse per race still the lowest in the region (amounting to €2,419 in 2012). Practically all countries in the region are characterised by having a few major races with extraordinary prizes, rendering them attractive events, with the rest – that is, the majority of other races – featuring quite low prizes. Major race days in Hungary include the Derby, held on the first Sunday of July, and the Kincsem Prize in early September. Inadequate supply of professionals is beginning to have an impact in Hungary. Overdose, however, is a good example, proving that Hungarian horseracing still has an excellent complement of experts. Another development came with the setup of the jockey school, which was launched two years ago. The breeding sentiment suffered a setback over the past few years, and to reverse this trend, the breeding premium was re-launched a few years ago and some highly prized races have been organized especially for domestically bred horses. In Slovakia, it is a tall order to maintain horseracing, and it’s subject to the intentions of the Slovak state and the current government in office. The global financial recession had its impact felt there also, taking its toll on horseracing. The operational costs of the racing industry were cut by 30% in 2012. In this scenario, sponsors should have a increasing role in financing while horseracing should be made more popular and the number of visitors increased. To this end, the central racetrack in an excellent location in Bratislava would need to undergo development, especially in terms of its infrastructure. Such a high-quality track deserves to be equipped with units to properly meet the needs of visitors and professionals. A rather new racing establishment came into existence in 1993 with the independence of Slovakia. They hold 19 racing days and still the annual total of 142 runs would be a tall order to organise if horses from neighbouring countries, especially from the Czech Republic, did not participate. Foreign owners entered half the horses in the races in 2012 to accompany the 270 Slovak horses then in training. In Slovakia, local horse owners are subsidised with the second highest owners’ premium in the region. The management of the horseracing establishment does all in their power to ensure that quality races are held. The three major events include the Turf-Gala, Derby day, and the European Championship for Amateur Lady Riders, which has been held in cooperation with Hungary – and before that with Austria – for 22 years now and was attended by female riders from eleven European countries last year. In Slovakia, the horseracing industry suffers much from the practical absence of betting. Betting is available at the racetrack and on “The wonderful new racecourse and the vast prizes, however, proved inadequate to reverse the decline of Austrian horseracing” racing days only, but visitors are hardly interested in placing bets. Probably the most awesome racetrack in the region, with an infrastructure capable of luxuriously servicing visitors, horses, and related staff, is located in Austria. The track called Magna Racino was built in Ebreichsdorf by Frank Stronach, a Canadian millionaire originally from Austria. It was opened to the public on 4 April, 2004. Stronach, who owns half a dozen racecourses also in the USA, supported Austrian horse racing for a period of three years with amounts never seen before. Then, when the parent company Magna Entertainment Corporation (MEC) began to experience financial difficulties in North America, Stronach reduced his support for the racecourse to a minimum. Despite these developments, the average prize money per race in Austria is still the highest in the region. The wonderful new racecourse and the vast prizes, however, proved inadequate to reverse the decline of Austrian horseracing notwithstanding its traditions, shown by the Derby having been held for the 144th time in 2012. Down from 42 in 2006, in 2012 the number of racing days was merely ten, and even these events feature harness races in half of the runs, resulting in just 47 races for the entire year of 2012. The number of horses in training (89) declined below critical levels, as did the number of professionals. More and more people appear to believe that the days of Austrian horseracing are numbered, which if true would be a grave loss for all. To save it, however, nothing less than a miracle would be needed. Those engaged in horse racing, are well aware that action may well bring about miracles in the end. Just think of Overdose!

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THIS ARTICLE FIRST APPEARED IN - EUROPEAN TRAINER - ISSUE 41

BUSINESSWebmaster26 April 2013Overdose, Central Europe, EUT41, Racing Abroad, European Racing