ROA says its members' loyalty must not be exploited rise in participant fees

From the Racing Post - 19.12.2024

The Racehorse Owners Association (ROA) has said the latest rise in fees paid by participants to the BHA, announced by the governing body this week, would be met negatively and create "added tension".

ROA chief executive Louise Norman added that the loyalty being shown by owners to the sport should not be taken for granted.

The BHA said the decision to increase fees by 3.9 per cent in 2025 had not been taken lightly but was needed to ensure the sport remained "safe, clean and fair".

In a statement announcing the above-inflation increase, the BHA said it would contribute to improving its services, including through investment in digital technology. A new Racing Digital hub will launch next year with the aim of improving administrative processes for owners and trainers.

Reacting to the announcement, Norman said: "At this stage in racing any fee increases given the challenges that owners continue to face are going to be met negatively, and this is across the board."

Norman said the context the BHA had given for the increase was appreciated, but added: "As the ROA has cited before, without the streamlined and central funding changes that were agreed in June 2022 and due to be deployed within the Racing Digital platform, it simply looks like an increase to the existing legacy fee structure, which is a significant frustration voiced by owners regularly. 

"It also creates added tension when the same applicable increase is not seen across prize-money, and more needs to be activated short and long term.

"Owners have shown admirable resilience and loyalty to the sport, and we know that owning a racehorse will cost money, but what those who derive a commercial income from racing must ensure is that they don’t exploit or take for granted the loyalty and owners receive a relevant return and enhanced experience for their contribution."

Norman said the ROA would play an active role in a forthcoming cross-industry review of British racing's income and funding models, "with a view to changing the reliance on legacy and outdated approaches”.

The BHA said it had made cost savings of its own, including one of £300,000 a year from moving head office, and had also absorbed a hit of around £400,000 from the increase in employer National Insurance contributions announced in the budget.

However, it added: "We need to balance any potential cost savings with ensuring we continue to provide high-quality services for participants and the wider industry, both on and off the racecourse. We must also make sure that our sport remains safe, clean and fair, giving participants, customers and investors confidence in the integrity of our racing product."

The increase follows a rise of six per cent this year, eight per cent in 2023 and 2.5 per cent in 2022, although fees were frozen in 2021 due to the impact of the Covid-19 pandemic.

The BHA added: "A decision to increase fees is never something we take lightly. We recognise that this has an impact on individuals and businesses across our industry, those who own, train, ride and look after our horses and play an invaluable role in our collective success. 

"We know that you too are facing rising costs and external pressures, and we are immensely grateful for your continued support for British racing.

"We are especially grateful to racehorse owners, who continue to show unwavering loyalty despite a challenging economic period. Our sport would not be possible without your significant contribution. It is therefore essential we work to ensure you feel valued and rewarded, through an improved owner experience and increased prize-money returns."

In 2023 more than 64 per cent of the BHA's group turnover came from fees paid by racecourses, with a further 21 per cent coming from owners.

Racecourses are also set to face higher payments next year, with fixture fees set to rise 4.4 per cent.