Charlie Parker: Tax rises and Jockeys' Cup leave owners off the pace

The Autumn Budget did not deliver the proposed rise to gambling taxation rates, but it did hit businesses with a raft of extra taxation, increasing costs that they will have to bear.  These increases will inevitably tighten finances for the enterprises that service our industry, from farriers to trainers all the way up to the racecourses, with the two large groups quoting eye-watering hits to their post April 2025 budgets.

There will be two inevitable consequences of the tax rises – a large proportion will be passed on to owners through trainer fees, and racecourses will look at their executive contributions as a way of making up the large tax increases. Since 2020 there has been no mechanism to govern the flow of revenues into prize-money – when we are faced by macro factors imposed on us by events like the Budget, we are in essence at the mercy of the racecourses.

The supposed ‘Budget for growth’ could well shrink the racing industry, as cost pressures see businesses and owners withdrawing, and racecourses use their prize-money contributions as the balancing item in the budgeting process.

It is vital, therefore, that the industry looks to itself to ensure we withstand the economic squeeze. We must innovate and be flexible when looking at the fixture list to ensure we are exploiting the revenue generated whilst at the same time continuing with the two-year trial of Premier racing that is reaching its halfway stage.

We must react to situations as they arise, such as abandonments, to ensure we continue to provide opportunities for owners to run their horses, especially given the removal of 300 National Hunt races. There is no doubt that tensions are bubbling up as the industry grapples with the macro-economic pressures and extra tax burdens.

The recently announced Jockeys’ Cup came as a surprise to many in the industry. The Commercial Committee, formed two years ago, has discussed some of the promotional aspects of placing the jockeys front and centre to boost the engagement with fans and punters alike, however the concept of a separate competition linked to televised races on ITV was never on the agenda. It was a shock, therefore, to see a draft press release less than 48 hours before its launch, a release which initially made no mention of owners, with none of the new prize pot being allocated to the group that owns the horses.

We have been crying out for initiatives and new investment, and this concept may well boost Premier racing for the National Hunt game that has to date not established significant traction. So, while it’s potentially good news, there are some serious issues that need to be addressed.

The investment for the Jockeys’ Cup is coming from betting giant Flutter and supported by Racecourse Media Group (RMG), whose biggest shareholder is the Jockey Club. These organisations were the drivers behind the ITV show Champions: Full Gallop. A second series is planned, and the Levy Board has been approached for funding, which as I understand it has been signed off. So, if the second show gets the green light using levy cash – which mainly funds prize-money of which owners receive 80% – could it be just a coincidence that the sums involved in the Jockeys’ Cup prize fund and the second series of Champions: Full Gallop are similar?

The new competition will undoubtedly provide some great content for the series yet we are entitled to ask how and why the money was allocated to both ventures.

Where is the joined-up approach to strategy? Where is the supposed Thoroughbred Group collaborative approach to commercial partnerships? There is no doubt that racehorse owners have been treated poorly, however, it does provide a template for deals to be done outside of the current structure, which, let’s face it, is not exactly delivering for the industry. It appears that we now have a mandate to find investment and use it for our own ends whilst considering the growth of the sport as our overarching objective.

As another year in British racing comes to an end, we look towards 2025 when the cast will change dramatically, with new Chairs and CEOs everywhere we look. This month’s Think Tank jury (pages 95-96) reveal their Christmas wish list for racing – my own New Year wish is that we finally begin to move forward with important projects and deliver the growth that we need to offset significant macro-economic headwinds.