Price money & the Covid impact - will prize money ever return to pre-COVID-19 levels? - Lissa Oliver looks into the various pots of prize money and the racing authorities’ recovery plans

By Lissa Oliver

We are in a period of uncertainty throughout the global business world, with the loss of many businesses and a need for government aid among others. Racing is no exception, but is the COVID crisis truly affecting European prize money levels or is it simply a new excuse?

In Ireland, 2020 began with great optimism as Horse Racing Ireland (HRI) announced a five-year strategic plan—its first in ten years—aiming to increase annual government funding to €98 million by 2024. The Irish State contribution to racing in both 2020 and 2019 stands at €67 million. HRI also hoped to have prize money increased to €90 million by the end of the five-year period and increase minimum race value to €12,500. Two weeks later, the COVID emergency erupted, and prize money for the year ahead was reduced by at least 10% and up to 50% at the highest level.

Deutscher Galopp produced a similarly upbeat reflection on 2019 as the year began, with imports well above average, negative trends reversed and prize money continuing an upward curve, with a further increase maintained for 2020. Then came COVID and Dr Michael Vesper, president of Deutscher Galopp, announced that due to having no spectators prize money would be cut by 50%, but minimum levels of €3,000 would be retained. 

This is a common picture across Europe, even when the new year had not brought with it such high expectations. The Norwegian Jockey Club announced that the association was in a difficult financial situation and prize money in the big races would be reduced. 

Prize money reduction, and fluctuation, is nothing new. At the higher end of the sport, the Group races have seen a steady decline in prize money since the turn of the century in all bar Ireland and Britain, although increases to the average prize value overall suggests simply a fairer distribution of the pot across all levels. The average Irish prize value, however, shows a recent decline and the financial focus appears to be more on quality racing. Nevertheless, the average prize money in Ireland last year only just topped 2015 levels and failed to match the heights of 2005. In Britain, 20 years have made a scant impact on average prize money, which more or less remains at 2000 levels. Are trainers also having to operate at fees unchanged for 20 years as inflation increases their costs?

Although we are far from any economic recovery and racing continues behind closed doors in many jurisdictions, racing authorities are making recovery plans and hoping to return to pre-COVID levels by year end. Other measures to lessen the personal economic hardship on industry professionals are also in place, and this will also ultimately impact overall recovery.

Deutscher Galopp asked participants to halve their fees and German betting companies to waive all fees until there was a full resumption of racing.

“This is a bridging period between the phase without races and the one with races in front of spectators. It therefore lasts as short as possible and as long as necessary,” said Jan Pommer, managing director of Deutscher Galopp.

All races have been broadcast live and free of charge on the Deutscher Galopp website and other digital platforms during this period. “We want to make the best of this situation and present our great racing to even more people. We hope to win new fans like this,” Pommer said.

Charlie Liverton

In March, France Galop stopped collecting the access fees for horses stabled in the training centres at Chantilly, Deauville and Maisons-Laffitte and regional training centres—a measure in place until at least  May 1st 2020. It also granted trainers who rent their boxes a suspension on rent payments for as long as racing remained suspended. Funds collected from fines were redirected to trainers to help relieve the financial blow of the lockdown. The fund contained €540,000, and if split evenly among all 381 eligible trainers each would receive €1,417. France Galop, however, gave trainers the opportunity to forego the aid to further assist those in need. 

The British Horseracing Authority (BHA) provided emergency financial support of £22 million (€24.5m) to help racing people, businesses and communities cope with the crisis. British racing’s main charity, the Racing Foundation, holds the proceeds from the 2011 sale of the Tote, and the Horserace Betting Levy Board (HBLB) also stepped up with a substantial package of grants and loans. 

The Chief Executive of the British Racehorse Owners Association, Charlie Liverton, said at the time, “Racing’s leaders want to act as quickly as possible to protect livelihoods and address hardship. We hope this funding will go a long way to supporting the most vulnerable. We also support the Levy Board’s decision to ensure that there is enough money still available to get racing back on its feet once we resume.

“People across racing, including many owners, are currently facing significant financial challenges whilst continuing to maintain payments. They need the prospect of racing activity and prize money to support their costs and get the sport moving again. We would like to thank trainers and everyone else who have worked so hard to ease costs and care for horses in these most trying of times.” …

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News from the EMHF - the pandemic’s effects on Europe’s smaller racing nations and their trainers

By Dr. Paull Khan

There is no racing nation that has escaped the effects of the COVID-19 pandemic. The impact on the major racing powers, in Europe and beyond, has been well chronicled. Racing industries in France, Great Britain and Ireland have all taken a significant financial hit with the period of forced inactivity. But what has been the experience of the smaller countries, with lesser financial resources with which to buffer themselves? Here we look at the situation in six countries—Belgium, Greece, the Netherlands, Norway, Poland and Slovakia—to try to get a sense of what the coronavirus crisis has meant for their racing generally and their trainers in particular. And what we see is a highly variable picture; while for some the impact—at least to date—has been mild, and there is confidence around the long-term prospects for the sport. For others, it has threatened the very existence of horseracing in the country.

The six countries between them boast just 228 trainers: 135 professionals and 93 amateurs. In several cases, the number of horses in the entire country falls short of those in a single large yard in Britain, France or Ireland. They average fewer than 10 horses in training each.

The importance of international competition is noteworthy. Of our six countries, only Greece operates pretty much as ‘an island’, with Greek-trained horses making few forays abroad, and no foreign-trained raiders entering its races. The rest are not self-sufficient. They rely on (i) races in neighbouring countries in which their horses can take part and/or (ii) horses from neighbouring countries bolstering the numbers in their own races to provide competitive sport. This is why COVID-related restrictions on international travel have been a key concern.  

BELGIUM

Belgium’s three racetracks—at Mons, Ostend and Waregem—normally stage some 170 races per year. The cessation of racing started on March 5th and, at time of writing, a resumption behind closed doors was hoped for at the end of June. It will not be possible to reschedule all the races, and a reduction in opportunities of some 40% is expected.

Belgian trainers already rely, to a large extent, on supplementing race opportunities at home with those abroad—predominantly making raids across their southern border to France—to which over 80% of foreign raiders are directed. France’s closure to foreign runners therefore represented a significant blow. 

Some owners transferred their horses to France when French racing resumed ahead of that in Belgium, but the damage was limited to seven horses. 

Marcel De Bruyne, racing director at the Belgian Galop Federation, looks forward with optimism for a recovery next year: “I think and surely hope that 2021 will look like 2019, but our industry depends, to the tune of some 85% of revenues, on French premiums, (via the PMU). When they return to operating as in 2019, we will probably too”.  

GREECE

Konstantinos Loukopoulos

Racing at Greece’s only racecourse, Markopoulo near Athens, was halted on March 14th and at time of writing it was hoped the cessation would be limited to three months. This crisis has come at a time when the Greek racing industry was pulling itself out of a slump which threatened its closure. A dozen years ago, the number of horses in training servicing racing was buoyant, at 1500. But by 2015 the tally had slumped to a scarcely-viable 250. This figure is critical to Greek racing since it has yet to attract foreign runners and relies entirely on local horses to populate its race fields. By 2019, through concerted efforts, numbers had recovered to 420, and prospects looked good. Konstantinos Loukopoulos is racing manager at Horse Races S.A., the company which holds 20-year pari-mutuel betting rights and the right to organise races in the country. He explains: “Unfortunately, the COVID-19 crisis hit us at the moment of our growth, as more than 170 new horses had come to Greece after our relaunch in 2019; and our newly introduced ratings-based handicapping system had started to work out well”.

“Our original schedule for 2020 was for 360 races (53% more than 2019). However, due to the period of closure, we will lose many races. In order to partly recover the loss, we will provide the option for up to 10 races per fixture, at least for the first month. Our goal is to give as many opportunities as possible to horses to get a run”.

Greece has mirrored the approach of many larger racing nations when determining where the axe of prize money cuts should fall. Those at the bottom end of the scale will escape, while the top races will see cuts of 13%-20%.

“Our races are open to all runners from abroad and we welcome any owner/trainer who wants to come and run in Greece. For our 2000 Guineas, Derby and Oaks there is a provision that the horses must be in Markopoulo 40 days prior to the race. For trainers that want to come for a specific period of time, we have in place incentives; and we can make, also, ad hoc facilitations, covering for example stabling costs.”

How does Loukopoulos view prospects for racing in his country? “We all are in uncharted waters and guessing is risky”, he answers. “I would say that one of the biggest issues that faces all racing industries—and especially the small ones—is the uncertainty that comes with COVID-19. Having said that, our major concern is the impact on the economy and the forecast for a recession of ~10%. Therefore, we may face a pause to the positive trend we created last year. On the other hand, I have to mention that Greek racing is now in better shape than in previous years”.

This is a view shared by Harry Charalambous, chair of the Greek Professional Trainers Association for Racehorses: “It’s been very hard for Greek racing. In 2019 we were shut for five months” (while disputes over administrative power were playing out), “and now we’re three and a half months closed with COVID. But things were going really well early this year, with 10 races and 80-100 runners per meeting, and I think we will get over it pretty quick”.

NETHERLANDS

The Dutch gallop racing sector is, on most measures, the smallest of our six countries. In common with several other European countries, it has but the one remaining racecourse, but what sets it apart is the fact that only 35 gallop races are staged at Duindigt in a normal year. The importance to trainers and owners of race opportunities abroad is as keenly felt in Holland as anywhere. 

The situation for its eight professional and 20 amateur trainers could have been described as somewhat precarious even before the ravages of COVID-19. Sad, therefore, that the degree of disruption caused by the virus has been greater here than in most countries. Racing was stopped on March 15th and, as of early June, there is still no clear indication of a resumption date, with local and national governments taking different views as to the risks involved.

Racing at Holland’s sole gallop track at Duindigt.

Camiel Mellegers, racing secretary of the Dutch racing authority Stichting Nederlandse Draf- en Rensport (SNDR), predicts half of this year’s planned races will be run in the remainder of the season (for, as a consequence, half of the prize money). “This is as far as we can tell at the moment. Rescheduling will be a discussion to be had after we have re-started racing and as a result that might change in a positive way”. …

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