UK racing industry leaders and the Horserace Betting Levy Board (HBLB) have announced details of the implementation of £21.5 million in loans guaranteed by the Government Sport Winter Survival Package (SWSP) with racetracks and participants prepared to benefit as sport continues its recovery from the COVID-19 pandemic.
UK races were impacted with over £400 million in lost revenue since the start of the pandemic and a reduction of over £65 million paid out as prize money to participants in 2020 (down 41%). The sport continues to be significantly affected by the limited number of spectators allowed.
The money is being lent by the government to the Horserace Betting Levy Board (HBLB), and not to any constituting body as a consequence of the sport-specific governance structure and HBLB’s role in providing funding for race day regulation costs as well. animal living and industry training.
Loan will have to be repaid The SWSP was launched by the UK government in late 2020 with the stated aim of supporting “the immediate future of major spectator sports” that have suffered revenue losses as a result of the absence of an audience.
£7.5 million to help maintain international racing competitiveness
Approximately £7.5 million will be used to increase prize money for the next 12 months from July 2021 to support engagement levels and maximize horse retention in 2021 and beyond. The values will be split with 60% for flat runs and 40% for jumps, depending on the composition of the game list and HBLB’s historic funding division.
Support for Black type races
The minimum values for Black type races will not change, but additional funding will be provided for races run above the minimum value, with each £1 of prize money offered above this value unlocking an additional £1 of matching funding, up to one maximum amount determined by race class. These races will be:
- No Flat, Group 2, Group 3 and Listed Races;
- More than jumps, grade 1 and grade 2 runs, including for beginners.
The additional funding of racetracks to unlock these combined values can yield an extra £2.5 million of cash prizes on top of the £7.5 million passed on, ensuring that the extra funds are used to deliver the highest possible increase in values. of awards.
Racecourse support
The racecourses suffered financially not only as a result of the restrictive measures, but also the absence of spectators. Therefore, in order to support its immediate future, £7.5 million will be deployed to support integrity costs. This will be in addition to the existing support provided by HBLB for regulatory costs.
HBLB’s current racetrack service concession of £12,571 per game partially covers the BHA’s game fee of £15.341. In addition, the racetracks have other integrity-related costs, totaling around £10,000 per game in the Flat categories and £6,000 in the Jumping categories.
In accordance with the loan plans, an extra payment of £5,000 will be added to the racing service allowance from 1st July 2021 to 30th June 2022.
Lottery and Games Minister explains UK government help
Lottery and Gaming Minister John Whittingdale said: “Horse racing is part of our national culture. We contributed to providing £21.5 million as part of the Sports Survival Package, to help put the sport back on track, secure its future and maintain its place on the world stage.”
Julie Harrington, CEO of BHA, also expressed: “People involved with racing in the UK are grateful for this vital support. We really appreciate HBLB’s help in taking over the loan and working with the races to come to an agreement on how the money is best used and distributed.”
Harrington added: “The plans for applying these funds are designed to target areas where we see a decline in the number of horses in training and to provide our investors with confidence in the future.”
According to the CEO of BHA: “It is also important that we recognize the contribution and sacrifices made by coaches and jockeys, and the loyalty of their owners, who combined to keep the races running during the pandemic.”
President of HBLB reinforces the loan nature of the government package
David Armstrong, Chief Executive Officer of the Racecourse Association (RCA), stated: “The races and the racetracks in particular are very grateful to the Government for this vital funding boost for the sport in very difficult times.”
Armstrong added: “Raceways continue to incur significant integrity costs in running daily races and this additional support will be very beneficial at such a delicate time and during the recovery phase in the next 12 months.”
Charlie Liverton, CEO of the Racehorse Owners Association (ROA), said: “The loan will provide a much-needed improvement to cash prize levels as British Racing, along with other major sports, rebounds from the impact of COVID – 19. We are grateful that we were able to resume behind closed doors during much of the pandemic, albeit with very low premium levels, the impact of which was felt by owners, trainers, jockeys and breeders.”
Paul Darling, president of HBLB, clarified: “HBLB’s involvement came after Racing indicated that there were structural difficulties in taking government support and that it considered HBLB the most suitable vehicle for this, which would benefit the whole sport and which this secondary model was essential if the package was to help the industry at large.”
Darling concluded: “We keep in mind that this money is a government loan and not a grant. Discussions involved consideration and agreement on how the money being spent will be repaid. It is critical that sport in general understand that the effect of this arrangement is that the amount available to spend in future years will be reduced.”