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.” …
CLICK HERE to return to issue contents.
BUY THIS ISSUE IN PRINT OR DOWNLOAD
4 x print issue and online subscription to European Trainer & online North American Trainer. Access to all digital back issues of both editions.
Your subscription will start with the July to September issue - published at the end of June.
If you wish to receive a copy of the most recent issue, please select this as an additional order.