or call Freephone 08000 722 421 for Sky Bet Debit betting.
(For full list see below)
Sky Bet at Ascot
The Sky Bet book to find out the best looking jockey at Royal Ascot will go live on Monday 9th June and will be based on the votes of 500 women in Ascot on race day (17th-18th June) carried out by an independent research company N20 Ltd.
Full details of jockeys and odds
JOCKEY NAME/SKY BET MARKET/PRICE
1. Frankie Dettori L. Dettori 2-5
2. Gary Stevens G. Stevens 5-1
3. Eddie Ahern E. Ahern 8-1
4. Jamie Spencer J. Spencer 8-1
5. Darryl Holland D. Holland 10-1
6. Richard Hughes R. Hughes 20-1
7. Jimmy Fortune J. Fortune 20-1
8. Richard Hills R. Hills 25-1
9. Johnny Murtagh J. Murtagh 33-1
10. Kieren Fallon K. Fallon 33-1
11. Mick Kinane M. Kinane 33-1
12. Kevin Darley K. Darley 40-1
13. Richard Quinn T. Quinn 50-1
The maximum stake for this bet is £25. Prices are subject to fluctuation and cannot be guaranteed.
To place a bet on this year's best looking jockey at Royal Ascot races as voted by the women of Ascot, press the red button on the Sky remote when tuned to Sky Sports, Sky One, Sky Movies or Sky News and select betting and then Sky Bet.
Users must be aged 18 or over and are required to complete the safe and secure registration process to start betting. A credit or debit card is needed to deposit funds and begin using Sky Bet, and all winnings can be withdrawn from the Sky Bet account and paid back to the customer's card.
ALL THE NEWS FROM TODAY'S BHB AGM
BHB AIMS
As the Governing Authority for Racing, we will promote the interests of our sport and industry in whatever way we can. Working alongside others within Racing and the Breeding and Betting Industries, we will build on Britain's reputation for providing to our customers the most exciting and competitive racing in the world, run to the highest integrity standards, as efficiently as possible.
We will work to attract and retain more racegoers and other customers, as well as racehorse owners. We will seek to maintain and promote horseracing as a competitive and attractive sport and betting medium. We also wish to see the best possible training and working conditions for those employed in the industry, and the highest possible standards of care for horses.
Building on Racing's excellent self-help record with further creative self-help initiatives, we will work for the injection into Racing of a higher level of income from horserace betting. In our drive to ensure that British Racing can compete internationally on equal terms with the racing product of other leading racing nations, we will aim to secure a significant increase in prize money, as well as world-wide recognition that the British Thoroughbred Breeding Industry produces animals of the highest quality. We want the future of Racing, which ultimately depends upon it meeting the needs of its customers, to be decided to a greater degree by the industry itself.
In our campaign to make our sport and industry even stronger we will aim to be open and accountable and strive to balance the interests of everyone in Racing. We want British Racing to be the best in the world in every respect.
Specifically, we will work:
1. To continue the implementation of a commercial mechanism for the sale of Racing's data and picture rights, in anticipation of legislation to abolish the Horserace Betting Levy Board.
2. To progress consideration and, as appropriate, implementation of the recommendations of the Racing Review Committee.
3. To respond, following consultation with interested parties, to the OFT's Rule 14 Notice in a manner which reflects a recognition of the need both to introduce greater competition and to maintain a structure which best enables the Governing Authority to meet, in a balanced manner, the needs of customers and Racing as a whole.
4. To secure an annual prize money pool equal to at least 50% of the total keep and training costs incurred by racehorse owners.
5. To help promote racecourses and encourage investment in infrastructure and prize money and a continuing commitment to customer service.
6. To progress consideration of new racecourse proposals.
7. To make British Racing more competitive nationally and internationally.
8. To maintain support, when the Gambling Bill is introduced, for changes in respect of a range of issues, including the regulation of betting and the availability of simulcasting with all forms of horserace betting and the development of suitable gaming facilities at racecourses, while continuing to promote, when appropriate, the widening of the distribution of the horserace betting product beyond licensed betting offices.
9. To help progress, through its membership of the Shadow Racing Trust, discussions with Government about the terms and conditions on which the Tote will be transferred to Racing, with a view to reaching agreement in principle prior to the passage of the relevant legislation; and to continue to help enhance the Tote's contribution to Racing through working closely with them.
10. To ensure that adequate funds are available to the Jockey Club so that the integrity of Racing is properly protected.
11. To develop and manage flexibly, with racecourses, an annual Fixture List and competitive race programme which best meet the needs of racegoers, punters, racehorse owners, breeders, the Betting Industry and the media in a balanced manner which maximises Racing's income.
12. To implement, in co-operation with all interested parties, the agreed Marketing Plan for 2003/04 to raise further the awareness of Racing in the minds of new and existing customers, ensuring its primary consideration as a genuine choice in a crowded and highly competitive sports and leisure market.
13. To ensure, in the context of encouraging and influencing value for money throughout Racing, that BHB and the Jockey Club provide cost-effective quality services to Racing, using new technology where appropriate.
14. To develop, co-ordinate and maintain, through its new Recruitment and Training Directorate and the British Horseracing Training Board, programmes of recruitment, training and education for the Racing and Breeding Industries which promote high standards of work and horsecare and encourage the Industry to invest in its workforce.
15. To provide a race planning framework within which the breeding of quality bloodstock in Great Britain and the improvement of the thoroughbred are stimulated; to support adequately funded Owners' Premiums and Breeders' Prizes Schemes; and to help promote, alongside other Breeding Industry initiatives, the quality of British bred and sold bloodstock, in order to compete effectively for a profitable share of the international bloodstock market.
16. To promote high standards of care and safety within the Racing and Breeding Industries and to support arrangements for the welfare of former racehorses.
17. To maintain public support of, and investment by, key customer groups in Racing and Breeding by safeguarding and promoting Racing's public image at home and abroad.
Unprecedented Financial Prosperity and Modern-day Attendance Record Detailed in 2002 BHB Annual Report
The British Horseracing Board's continuing achievements for Racing are chronicled in its 2002 Annual Report, published at its Annual General Meeting today.
The Report, covering the most successful year for British Racing in the modern era, records:
Racing's income rising to over £150 million a year due in large part to commercial agreements for data between BHB and the betting industry compared to £85 million in 2000
Prize money increasing from £71 million in 2001 to £84 million in 2002
The creation of the BHB Prize Money Incentive Scheme, which encourages racecourses to put a substantial proportion of their new income into prize money on a matched funding basis
A modern-day racecourse attendance record, with over 5.5 million people going racing in 2002 the highest figure since 1959 marking a successful conclusion to the three-year Discover Racing marketing campaign
Further growth in the average racecourse attendance per fixture, as well as a 9% rise in the number of fixtures taking place and an increase in the total number of runners
The Board's endorsement and sponsorship in 2003 of the new £1 million BHB Summer Triple Crown and £5 million Grand Slam, the richest prize in world racing and richest annual prize in British sport
A series of other focused marketing initiatives which brought direct benefits to Racing and Breeding
Further development of the charitable organisation Retraining of Racehorses, which continued its support for the work of three charitable retraining centres
Training programmes for over 1,000 individuals supported by the British Horseracing Training Board, and a 20% increase in stable staff training places compared to 2000
The Report contains the Board's Summarised Financial Statements for 2002, which show, inter alia, BHB's copyright income rising in that year to £6,944,000 from £3,874,000 in 2001, due principally to the licensing of data to non-GB bookmakers.
The Report includes a statement by BHB's Chairman, Peter Savill, and a review of the year and the Board's activities by Chief Executive Greg Nichols, while other sections record the work of the Racing, Marketing and Finance Departments and of BHTB.
Some of BHB's formal Aims, attached, have been updated to reflect the Board's strategic decisions and in the light of other key developments.
The Board is once again publishing a short Summary Report which, in the interests of accountability and communication with the industry, will be distributed to all active racehorse owners, trainers, jockeys, breeders and stable staff.
PRESENTATION BY PETER SAVILL CHAIRMAN OF THE BRITISH HORSERACING BOARD
At last year's AGM, at the end of my first term as Chairman of the British Horseracing Board, I painted a rosy picture of the progress we had made during that four year period: the generation of an additional 110 million a year in income for British Racing; the attainment of almost every goal of the Financial Plan; improvement in the four key statistical indicators in each of the last four years; the modernisation of BHB's management structure and approach; the creation of data as a replacement for the Levy and as a commodity through which Racing can be financed; the firm yet sensitive management of Foot and Mouth; the creation of a strong relationship with the betting industry; and the signing of the Future Funding Plan, a charter for harmony within racing, which agreed how rights should be sold and income divided, but which sadly has now been consigned to history.
In the past twelve months we have added to these achievements, as Greg has already indicated, with record racecourse attendances, record prize money, a significant expansion and upgrading of British Pattern and Listed Races, renewal of the VAT Exemption on bloodstock and an exciting blueprint for the future of the sport proposed by the Racing Review Committee.
I have personally enjoyed chairing the Racing Review Committee more than any other project during my five year tenure. Working with such an experienced and talented group of people, all committed to the improvement of British Racing as a sport and leisure activity without manifestation of sectional interest, has indeed been an uplifting experience.
The Racing Review Committee has proposed some significant changes to the Racing Product and Racing Experience which will improve the integrity of the sport, establish a true meritocracy, strengthen National Hunt Racing, put British Breeding on a more level playing field with its Irish and French counterparts and increase consumer interest in the sport.
I am delighted that the BHB Board on Tuesday sanctioned a trial of up to 80 Regional Racing fixtures for 2004, thereby enabling British Racing to begin to reclaim some of its market share of betting. Unfortunately the Levy Board, who have historically funded all fixtures, have indicated that their deteriorating financial position is likely to preclude them from spending up to a further 2 million in order to generate more than 4million in Levy income. If this proves to be the case, the BHB Board has agreed to provide the 2 million itself in 2004 but will urge the Levy Board to reimburse BHB's outlay in 2005 when it receives the income from Bookmakers for those fixtures.
I can also report that the BHB Board has authorised the Racing Department to begin dialogue with individual racecourses on introducing, in 2004, a new structure for Flat Racing of five Classes, 10-15lb handicap bands and Heritage Handicaps, as proposed by the Racing Review Committee, thereby enabling us to begin the process of introducing a true meritocracy in Racing and improving the environment for integrity within the sport.
The Racing Review Committee made 76 specific recommendations for changes to the Racing Product and I am hopeful that we shall implement almost all of them before my Chairmanship ends next June.
You might conclude from everything you have heard from Greg, Nigel and myself so far today that everything in the garden is rosy and that British Racing is set fair for continued and increasing prosperity over the next few years.
Such a conclusion would, I'm afraid to say, be dangerous and I would be failing in my duty as Chairman if I did not warn you of the serious danger to this industry posed by the Office of Fair Trading's Rule 14 Notice, which threatens the very foundations of British Racing and everything that has been achieved these past five years.
On 8th April the OFT issued a Rule 14 Notice to BHB and the Jockey Club. In essence the OFT came to four conclusions: that racecourses should be free to set their own fixtures; that data should be able to be bought direct from racecourses; that collective selling of rights by Racing was not acceptable; and that racecourses should be able to set their own race programmes and prize money levels.
The OFT concluded that the key Orders and Rules of Racing amount to an appreciable restriction on racecourses' ability to operate as commercial enterprises and that central selling of data rights by BHB and collective selling of picture rights by racecourses prevents, restricts or distorts competition within the UK.
So, let's look at the impact of the OFT's conclusions and analyse how they will affect Racing.
If racecourses are allowed to race whenever they want, it has been predicted that there could be a dozen fixtures on a Saturday and none on some other days during the week; that the number of fixtures could double and that field sizes could halve to just over five runners per race.
Personally, I don't agree with that prediction. But I'm afraid there is nothing reassuring in that assessment.
Why? Because the moment racecourses are allowed by the OFT to race when they want will be the moment that British Racing comes under the complete control of the bookmakers. Instead of BHB setting the fixture list to ensure a balancing of interests between all of racing's customers, the betting industry will immediately take charge of the decision as to which racecourses are granted fixtures, when they can race and what specific races they can put on.
Let me explain why.
If, as the OFT wants, racecourses can race when they wish and are able to control the sale of both picture and data rights, worth on average between 75,000 - 100,000 per fixture, the first thing a racecourse would have to do in a fixture free for all would be to contact the bookmakers and ask if they would fund its fixture. For, without bookmaker funding, you can count on two hands the number of fixtures that can take place profitably each year. The Association of British Bookmakers dominated by the Big Three will then decide which courses it wants to stage racing. Those courses that generate the lowest gross profit possibly because they offer the fairest racing surface will be told they aren't required. It won't matter that they are popular racecourses with spectators or sponsors or jumping enthusiasts. The bookmakers' margins at each racecourse will decide which courses stay open and which ones are consigned to the scrap heap. And let me tell you, the bookies already have a list of unwanted racecourses ready for the chop.
Those lucky racecourses that survive the fixture guillotine however won't survive the financial guillotine. Again, let me explain why.
Based on the expected arrival of five new All Weather tracks by 2005 and the already stated desire of existing racecourses for roughly a further 500 fixtures, there will be a potential supply of 3000 fixtures in 2005, but a bookmaker demand of no more than 1500.
The bookmakers understand the principles of supply and demand better than most. Buying pictures and data as a collective buyer from a bunch of racecourses with twice as much product to sell as is required will be a mismatch equivalent to Tiger Woods taking on the Club Members at your local Golf Club.
How long will it be before the offer of 10% of gross profits becomes 8%, becomes 6%, becomes 4%? Will 4000 a race for pictures see a nought dropped off the end within 10 years, because I'm told that the bookmakers already have plans to offer just 2000 a race for many races in 2005?
The days when BHB encouraged racecourses to run a Listed Race will be a distant memory as racecourses are ordered by the bookmakers to run handicaps, handicaps and nothing but handicaps if they want to stay on the payroll.
Will quality matter to the new masters of British Racing? Not if the incessant supply of Portman Park, Steepledowns, Turffontein and dog racing that you see on SIS's screens are anything to go by.
Let no one be under any misapprehension. This is where the OFT is taking this sport. Their remit is to benefit the consumer, yet their effect will be to damage every single consumer of racing except the bookie.
The OFT clearly doesn't care about the spectator who may finish up with a choice of watching his beloved sport at nothing but a few All-Weather tracks which would provide the bookies with all of the betting shop fodder they need to persuade punters to part with their cash.
The OFT clearly doesn't care about the Jumping enthusiast who will undoubtedly see his sport and passion disappear if a fixture free for all is ordered.
The OFT thinks it cares about the punter but forgets that the bookmaker has no obligation, no history and no intention of passing the benefits of his birthday present from the OFT onto the punter.
The OFT, in reality, can't care about the punter, the viewer or the spectator because the quality of the product that all three will be offered will deteriorate rapidly as it is sacrificed on the altar of bookmakers profit.
The OFT thinks it is helping racecourses to operate as healthy commercial enterprises when infact its strategy, if allowed to be implemented, will result in a deterioration in the financial position of every single racecourse and racecourse group, without exception.
And then, will we be able to say that we still have the best racing product in the world? Will the Maktoum family agree with the OFT that prize money is unimportant and continue to provide employment for thousands of people, and pleasure for millions, who love racing in Britain only because we have so far managed to hang on to the best horses in the world and managed to persuade our major owners that we are confident that we can improve the financial position of British Racing to match that of the countless other major racing nations which the OFT appears to have concluded are not in the same market as us? Will the OFT still be telling us that we don't compete with other racing nations when our overseas owners who have made British Racing what it is fly all their horses at 24 hours' notice to another jurisdiction, never to return?
As if wanting a fixture free for all wasn't bad enough, the OFT also wants to allow individual courses to sell data direct to bookmakers which can only result in racecourses, one by one, being chewed up and spat out by a betting industry that operates, and has always operated, as a monopolistic, collective buyer.
The only problem is that BHB isn't the only one who has data rights. So far, BHB has acted in the interests of the whole industry in selling those data rights. But if one party thinks they want to negotiate their own data rights, as some racecourses apparently do, surely it is obvious that everyone else will insist on negotiating their own data rights too. Does the OFT honestly think that the bookmakers should negotiate with each of the eight thousand owners who have data rights, plus the several hundred jockeys and trainers who have data rights? And the 30 plus racecourses or racecourses groups that have data rights? Then there's BHB it has data rights. And Weatherby's it has data rights too. In fact, Tom, Dick and Harry probably have data rights too.
Do bookmakers really think they can buy data rights from so many sources? Do they want to deal with that many people? Even if every owner gave his rights to the ROA and every jockey to the JAGB, bookmakers would still be faced with dozens of data negotiations. I'm not sure how the OFT has managed to escape the conclusion that data rights can really only be sold as a package.
And why shouldn't data rights be sold centrally in the interests of British Racing? Bookmakers have been buying collectively for years. Plumpton couldn't negotiate with 8500 different bookmakers; it wouldn't generate enough money to even cover the administration costs of having 8500 customers. The OFT obviously think it's fine for BOLA and BBOA to join forces to form a single Association of British Bookmakers to negotiate pictures and data. Why then do they have such a problem with Racing selling their rights centrally? Can they not see that there's really no practical alternative and any other policy would plainly be unfair.
My objections to the OFT's arguments, however, should not be taken to mean that I believe the Racing Industry should not make changes. On the contrary, I have preached modernisation ever since becoming Chairman, and British Racing is still far from the modern finished article.
The difference between my position and that of the OFT is not one of objective but one of solution. I simply believe we can achieve a more competitive and less regulated structure without resorting to solutions that I am convinced will destroy Jumping, completely undermine the Sport's financial structure and benefit none of racings customers punters, racegoers, or jumping enthusiasts other than bookmakers who will effectively own the sport without needing to buy racecourses and who will unquestionably pass none of the benefit on to their customers.
So what are the solutions? I have recently made six basic recommendations to a Sub-Committee of the BHB Board, set up to consider the financing, administration and governance of Racing and I hope these recommendations will form the basis of a new structure that everyone can support and which will satisfy the OFT's requirement for greater competition.
First, I believe it is time for BHB to withdraw directly from commercial activity and take on the role of a more conventional governing body. Just as commercial friction has been the cause of the breakdown in the relationship between the Football Association and Premier League, so there has been too much friction between BHB and the RCA the past couple of years over BHB's involvement in commercial matters, despite the fact that 10 years ago, when BHB was set up, every sector signed up to the BHB's chief objective being "The improvement of the financial structure of British Racing." We have done a remarkable job of achieving this aim yet there are still many who resent our involvement.
Which leads directly to my second recommendation. The commercial negotiation of rights should be carried out by a separate commercial entity with a separate independent Chairman and Chief Executive and a Board consisting of racecourses, owners, independents and one BHB representative.
BHB would then be able to concentrate on its governance responsibilities as well as work more closely with the new Regulatory Authority and take over the functions of the Levy Board when it is abolished.
My third recommendation is that the commercial entity must insist on being able to negotiate its betting rights centrally with the bookmakers, for it is impractical to expect either bookmakers or individual sectors of racing to negotiate as individuals. The strength of the negotiating position undoubtedly lies with the betting industry the collective buyer which has countless other products to sell, while British Racing continues to be denied by Government the right to sell its product through any other retail outlet than Licensed Betting Offices.
The fourth recommendation that I have made to the Sub-Committee is that income from betting rights should be hypothecated, in other words allocated according to how much each fixture generates in betting turnover. Any other system is hard to justify to either a racecourse or the OFT. There is no doubt that the various RCA distribution formulas have been the cause of many of the problems within the RCA in recent times and there can be no fairer distribution method than getting what you earn.
Fifth, the BHB Board needs to be restructured. Without the removal of the duplication of sectional interests around the Board table and the further expansion in the number of independent directors, the Board will probably find it impossible to attract a worthwhile candidate to take over as Chairman. I certainly couldn't recommend anyone to take on the job under the present structure.
I have suggested to the Sub-Committee that the Board should consider replicating the structure of the eight man Levy Board, with which racecourses feel particularly comfortable, but replacing the two bookmaking representatives with the Chairman of the Regulatory Board and the Chief Executive of BHB. This would at a stroke reduce the size of the Board, which is too unwieldy, and create an effective balance between industry and independents.
And finally, and most importantly, I have recommended to the Sub-Committee that the industry resist all attempts at a fixture free for all. I have so far found no one among those who would like such a system who denies that this scenario would transfer ownership of Racing to Bookmakers, result in a dramatic decline in the value of rights, kill Jumping and be no more than a short term gain for those racecourses that initially dominate the free for all. In the long run, even they would be worse off.
Instead, we must introduce clear and identifiable competition between racecourses, both existing and new, into a structured fixture list. We must fight to retain industry control of fixtures so that we can balance them with the horse population and provide opportunities for jumpers. Racecourses have a straight forward choice either accept a proper mechanism for competition over fixtures or throw yourselves at the mercy of the bookmakers.
So, where does the industry go from here? The OFT has given us an extension until August 5th to respond. By that date, we must succeed in getting across the true implication of the OFT's Rule 14 Notice and get the whole industry to unite behind a set of proposals. The Premier League, in its battle with the OFT, won unanimous support from all 92 Football League Clubs. It will require a similar display of leadership from Keith Brown, Chris Deuters, Rhydian Morgan-Jones and Julian Richmond-Watson, as heads of the four shareholders of BHB, to generate the sort of unity that has consistently failed to materialise in British Racing.
The choice is simple. Unite and prosper or divide and be destroyed. I can't put it any clearer that that.
PRESENTATION BY GREG NICHOLS CHIEF EXECUTIVE OF THE BRITISH HORSERACING BOARD
The unparalleled success enjoyed by British Racing during the last year gives me confidence that an industry and sport long burdened with that condescending epithet "potential" is now poised to capitalise on the substantial increase in industry revenue streams and re-establish British Racing's credentials as the "King of Sports".
The confidence to predict sustainable prosperity for British Racing had its genesis in April 2002 when British Racing unlocked the true value of its intellectual property rights. The magnitude of the five-year data agreement complemented by significant incomes generated by agreements with Attheraces and GG-Media has provided an opportunity for British Racing to extend potential into commercial reality.
Attheraces and GG-Media are hugely important to the long term success of racing. It is not only the financial windfall that characterises the compact between British Racing and its media partners, it also encourages the industry to embrace and exploit new technology and present racing with a contemporary and interactive focus. Furthermore, our media partners offer an opportunity for racing to capture new customers, young and old, that have yet to appreciate the diversity, intrigue and passion that exemplifies British Racing.
It was not until May 2002 that the income derived from exploitation and transmission of pictures, involving the 49 racecourses affiliated with Attheraces, into Licensed Betting Offices (LBOs) was resolved. This resulted in a significant increase from 13 million to 24 million per annum. This is supplemented by a 5 million income stream for the 10 GG-Media affiliated racecourse for the same rights. It is the former deal which caused great debate within the industry. We need to ask ourselves the following questions:
Did the industry extract true value?
Is it right that events televised terrestrially were excluded from the deal?
Is it appropriate that a Seller is equivalent to or extracts greater value than the Martell Grand National, the Vodafone Derby or the King George VI & Queen Elizabeth Diamond Stakes?
The opportunity to address these and other anomalies presents itself within the next 12 months as the current deal concludes in December 2004. It is imperative that British Racing presents an industry perspective throughout the re-negotiation process and optimises the income yield for picture rights to LBOs.
The recent revelation of a significant drop in the 41st Levy yield is an issue of great concern yet a comparison of industry revenue in 2000 and 2003 reveals an increase from 89 million to 147 million. This is not an industry in decline, British Racing is a world class product and it is our immediate challenge to reclaim market share and restore industry revenue streams.
A review of the year would not be complete without comment on the impact of betting exchanges. Betting exchanges have enjoyed phenomenal and unpredicted growth throughout the last year and there is no doubting their popularity. It is appropriate, however, that insofar as fiscal and commercial policy is concerned they be treated equitably in the context of the betting industry as a whole. We share others' concern that the taxation of betting exchanges and their customers confers an unfair advantage on them. The tension between bookmaker income and punter value is taut, regulated by the use of on-course starting prices. The competitive advantage enjoyed by betting exchanges and their customers has upset the tension to the financial detriment of British Racing and Government alike.
The impact of this, not only on racing's income but the unrelenting drive of off-course bookmakers to promote higher margin products at the expense of British Racing, has significantly contributed to substantial decline in Levy yield. The answer is for Government to level the taxation playing field.
The amalgam of increased revenue streams, a capital programme concentrating upon modernisation of racecourse facilities, a substantial elevation of prize money levels and a strong commitment to service the industry's customers by all who comprise British Racing, particularly the racecourses contributed to a record modern-day racecourse attendance in 2002 of in excess of 5.5 million customers.
This achievement surpasses all records since 1959 and vindicates the racecourses' extensive commitment to Marketing and that of the Discover Racing National Marketing campaign. The planned expansion of the Fixture List to include fixtures on all Sundays, a resumption of Saturday evening fixtures and the opening up of evening fixtures, April through August, suggests that the 2002 racecourse attendance record will be surpassed in 2003 and in subsequent years.
Prize money expanded beyond 87 million in 2002; a considerable upsurge from the 1997 figure of 60 million. We are confident that the introduction of the BHB Prizemoney Incentive Scheme in January 2003, augmented by Executive contributions to prize money by racecourses and an increased levy yield will result in the British Racing Industry surpassing a prize money level of 95 million in 2003.
The racecourse executive contribution to prize money in 2002 was also a record and the advent of a minimum value of 4,000, with a few exceptions, provides compelling evidence that the affordability of racehorse ownership is at an all-time premium.
We must commend the Flat Pattern Panel for the unprecedented success in attaining 8 upgrades and 11 new Group races in the 2003 European Pattern, the highlight being the elevation of the Queen Anne Stakes at Royal Ascot to Group One status. A further seven events were upgraded to Group Two status including the first Group Two event in Scotland, the Scottish Derby at Ayr. Twelve Listed events were also upgraded to Group Three. The Panel also included 25 new Listed Flat events with strong emphasis on events restricted to fillies and mares. Not only is ownership a more lucrative option but the expanded British Pattern accords greater opportunity for the breeding industry.
The Board re-formed its New Racecourse Fixtures Committee in September 2002. The commercial appeal of British Racing in the 21st Century is exemplified by the significant level of interest from prospective investors of new racecourses or current racecourse ownership groups' intention to install All Weather Tracks within existing racecourses to further complement the industry's portfolio of all-weather racecourses.
The diversity of projects and multiplicity of submissions are endorsements of British Racing's increasing ability to conform to the pressures of commercial reality and invigorate an Industry that is renowned internationally for the intensity of competition, on and off the course. The committee will in the coming weeks make its final assessment.
The industry is also confronted with many more challenges and none greater than the Office of Fair Trading (OFT) investigation. The OFT commenced its appraisal in June 2000 following joint notification by the BHB and Jockey Club of Racing's Orders and Rules and various industry agreements.
Some 34 months later in April 2003, the OFT issued a Rule 14 Notice identifying a number of Orders and Rules and General Instructions that they preliminary perceive as containing appreciable restrictions of competition that infringe the Chapter 1 Prohibition of the Competition Act.
The BHB has established a Working Group, comprising representatives of its stakeholders, the Chairman, Martin Broughton and myself, to further develop strategy in preparation for the BHB's formative response to the Rule 14 Notice. The Working Group will work closely with the BHB legal and economic team.
We are confronted by issues of critical and fundamental importance and if unchallenged have the potential to unravel an industry that has evolved over 250 years to a position of pre-eminence within international racing. The BHB is committed to modernisation of the sport and supports change that facilitates a positive outcome that not only enhances the commercial viability of racecourses, owners, trainers, et al but also accomplishes the expectations of our vast array of customers.
The Chairman will articulate on this subject during his address.
The commitment by British Racing to continue the evolution process is further exemplified by the formation of the Racing Review Committee in June 2002.
The Racing Product Report was presented to an industry forum on 28 April 2003, containing 76 recommendations that have the propensity to reshape British Racing.
The basis for taking British Racing forward is adherence to the following precepts:
meritocracy,
Integrity,
reclamation of racing's loss of market share of wagering,
provision of racing opportunities for horses of all classes,
safeguard the diversity of British Racing, and
maintain and develop the British Breeding industry
The second part, The Racing Experience, is the most expansive research and consultative project undertaken by the BHB working in collaboration with racecourses. Nigel Smith, Managing Director Commercial, will present key findings and recommendations and at its conclusion I am no in doubt that you will share my conviction that the Racing Experience and Racing Product reports are the most instructive, invigorative and progressive assessments of British Racing in its esteemed history.
The final document entitled Governance is an assessment of the financial, administrative and governance structure of British Racing that will inevitably provide a strategic, contemporary and balanced model in the post-OFT era.
The Board determined that this critical element of the Racing Review is unequivocally the responsibility of the BHB and as a consequence empowered the newly formed Working Group to consult with the industry and devise a governance framework that will impel the industry to greater commercial prosperity. I am convinced that the best interests of racing will be served by adopting a united approach to shaping the future of our great sport and am assured by the industry's resolute support of the Working Group.
The success of the industry is not limited to an analysis of its financial prosperity. There are many other success stories that British Racing has engineered in recent times. The Retraining of Racehorses (ROR) programme maintained its support for the work of three charitable rehabilitation centres during 2002, the Moorcroft Racehorse Welfare Centre, Greatwood and the Thoroughbred Rehabilitation Centre.
These endeavours are universally acclaimed yet they represent only a small proportion of the industry's dedication to retired racehorses. We must also commend the many owners and trainers of retired racehorses who share the vision so constructively implemented by the ROR programme. Di Arbuthnot, the ROR Director of Operations, is working closely with the various horse sports to showcase the undoubted merit of this concept to the wider equestrian world.
It is pleasing to report that the Customs & Excise appraisal of the VAT Registration Scheme for Racehorse Owners has had a successful conclusion, ensuring the continuance of this critical initiative until 2005. The VAT Registration Working Group under the chairmanship of Lord Donoughue is to be commended for achieving the extension of this vital asset of British Racing.
The inaugural three-year Discover Racing Marketing Plan for racing and betting came to its conclusion in 2002 and while many have questioned the success of this initiative there is no doubt that an expanded marketing profile engendered by the 10 million commitment over three years was a significant contributor to the record levels of attendances in 2002. There are lessons to be learnt yet I contend that there are many successes to replicate in the future. The facts are that by the end of 2002 over 113,000 individuals were registered on the Discover Racing database and last year alone over 700,000 of tickets were sold through the website and call centre.
The BHB Board took a further step in raising racing's profile by agreeing to back the Summer Triple Crown and Grand Slam. This innovative series comprises the pre-eminent middle distance races in Europe. Epsom's triumvirate of Group One events provided superb racing and kicked off the inaugural series. We move on to Royal Ascot, Sandown Park, Ascot and York with great anticipation. We have already seen the effect of this exciting initiative in elevating racing's profile through a series of innovative media promotions and competitive Group One racing.
The Summer Triple Crown and Grand Slam represents the pinnacle of the 2003 BHB marketing campaign.
I also take this opportunity to formally welcome Chris John as BHB Marketing Director, Ruth Quinn, BHB's Racing Director, and our most recent appointment, Fiona Birt-Llewellin, BHB Recruitment and Training Director their appointments instil an enthusiastic and fresh dynamic and an outward perspective to a team that I am pleased to acknowledge as being unrivalled in international racing for expertise, credibility and that most important ingredient, passion. These are qualities that are also in great abundance amongst my fellow directors and as importantly all members of the BHB staff. I thank them for their valuable contribution this year. I also wish to extend my personal gratitude to Trevor Beaumont, former BHB Racing Director, for his significant contribution.
The Board's decision to appoint a Recruitment and Training Director exemplifies its commitment to providing career paths for young people in our industry. This important new role will enable racing to accomplish its ambition to become a customer led sport that simultaneously provides employment opportunities and a defined career structure that will make racing an industry that people will choose to enter and stay in.
The recent Racing Post series on stable staff raised issues for us all to address but it failed to reflect the reality that the majority of trainers work exceptionally hard to look after their staff nor did it acknowledge the real improvements that have been made in pay and conditions for staff in recent years not least arising from recommendations from BHB's Stable Staff Resources Study Group. Much of this success is also attributable to the unstinting dedication of Bill Adams as National Secretary of the Stable Lads Association - the industry owes a great debt of gratitude to Bill. The Racing Post, in a monopoly position, must accept its responsibility to provide balanced reporting and does itself a disservice by sensationalising an issue of great importance.
Everyone in racing, including stable staff and the Racing Post has enjoyed the most successful year that British Racing has experienced in the modern era. Irrefutably, 2002 will represent the benchmark against which future success will be gauged. The BHB Executive looks forward with confidence to working with all constituents of British Racing to ensure greater prosperity, further expansion of British Racing and affirmation of Britain's pre-eminence as the home of the most competitive and exciting racing in the world sustained by unparalleled standards of integrity.
The foundation for future success is encapsulated in the presentation that you are about to hear and I welcome Nigel Smith to present this significant contribution to the Racing Review.
The Consumer Comes First : Recommendations From Racing's Largest-Ever Consultation Exercise
Putting the consumer at the heart of racing is the theme of the recommendations contained in "The Racing Experience", Part Two of the report of the BHB Racing Review Committee, published at the British Horseracing Board's Annual General Meeting in London today.
The 118-page report which will extend to over 1,000 pages when its 15 detailed appendices are released next month is the culmination of the most extensive consultation exercise ever undertaken in the sport, involving over 8,000 interviews.
The Committee finds that "the benefits to horseracing in making small changes in the behaviour of its consumers are measured in the tens of millions of pounds". The report sets out clear recommendations which it regards as essential if the sport is to attract significantly more people to going racing, betting and sponsoring.
Agreement has already been reached to trial key elements of the Committee's recommendations at Sandown Park racecourse for two years. With funding from the racecourse and BHB, new signage, information points and a variety of racegoer-friendly initiatives will be launched at its evening meeting on 23rd July.
Also planned for the Sandown trial, which it is intended to extend to up to eight other racecourses, will be new group discount offers and other initiatives to market and sell existing offers to racegoers, as well as to encourage repeat visits with ticket offers for the racecourse's next meeting.
The report's recommendations are divided into three broad areas: Racegoers, Punters and Sponsors.
Racegoers
Among the Committee's findings were that just over 5% of the adult population, 2.5m adults, went horseracing in 2002 and that 69% of the population claim not to be interested in horseracing. Racegoing is a low frequency activity with a few high frequency users and many racegoers who go just once a year or less. There are nevertheless over 9m potential racegoers in Britain who are open to the idea of going horseracing. Even amongst the 30m adults who are closed to racegoing, 13m are closed for reasons which the Committee believes are manageable by horseracing.
The Committee also found that, if racegoers go only 1.5 more times per year, the incremental profit to racecourses is 87m per year; if the approximately one-third of potential racegoers who say they are likely to go horseracing were to go just once a year, the incremental profit is 36m; if 10% of those who are closed for reasons which horseracing can manage were to go just once a year, the incremental contribution is 10m. This represents a potential upside to horseracing of 143m per annum. This is not a forecast but a graphic illustration of the benefit of investing more in getting people horseracing.
The Committee's recommendations in respect of Racegoers are in the areas of Marketing, Cost and Product:
Marketing
The Committee recommends:-
the continuation of national marketing, working in close partnership with racecourses, with a minimum spend of 3m per annum which addresses the key barriers to greater consumption.
increased co-ordination between the national and regional campaigns.
increased use of the raceday opportunity to market and sell existing offers to racegoers as well as encourage repeat visits with ticket offers for the racecourse's next meeting.
agreement between horseracing and the media on their role in increasing understanding of and participation in horseracing.
continuation of national research on a 5-year cycle and regional research on an annual basis to form the basis of a research databank which can co-ordinate and incorporate research and findings from a number of sources including, for example, racecourses, broadcasters, bookmakers and caterers which is accessible to the industry as a whole.
Cost
the increased use and marketing of pre-defined price packages.
a substantial lowering of the number of racegoers required to benefit from group discounts from an average of 16 to 6.
the introduction and increased use of benefits and information packs for organisers of racegoing groups.
the introduction of agreements at a national level between horseracing and major corporates, trades unions and the like to offer significantly enhanced price and product benefits.
the introduction of a national loyalty scheme which offers price and product benefits.
Product
the introduction of premier racing and tiering of racing, as recommended in Part One of the Committee's Report, in order to provide greater clarity and narrative to the product.
the provision of more customer friendly fixtures, in particular weekend evening and family friendly Sunday racing.
the introduction of a Grand Prix for racing which links 24 Group races with an appropriate prize fund.
the use of the raceday, and in particular signage, to better promote and inform racegoers and promote repeat visits.
in conjunction with racecourses and caterers, the development of a food and beverage strategy which addresses issues concerned with the nature of catering contracts, racecourse expertise in catering, and the underlying quality of the food and beverage offer.
in order to capture the interest of racegoers in sports and betting, the development of a racecourse sports and betting hall concept which features other sports and promotes betting on away races.
the support of a culture of trialling in horseracing; specifically the matched funding of trials across nine racecourses of the Committee's recommendations which impact racecourses. The first trial, which will allow for modification of the concepts, is already in development with Sandown Park racecourse.
in conjunction with the trials, the development of a Best Practice strategy and guidelines for all racecourses recognising that racecourses are best served by competing with other leisure activities rather than with themselves.
the development of Jump and All Weather festival racing.
Punters
Over 1,200 punters were interviewed.
The Committee analysed areas including the overall betting market size, overall punter population size, the importance and quality of betting information and television coverage, drivers of betting behaviour and barriers to punting.
The Committee acknowledged that the route to more horserace betting is the development of both the quality and quantity of horseracing to which Part One of the Racing Review was oriented. The Committee's research into punters is broadly consistent with the recommendations made in Part One.
In addition to those, the Committee recommends that:
there should be a more direct link between racecourse behaviour and the income which it creates. This hypothecation of income will be explored in more detail in Part Three of the Racing Review, when published.
BHB should carry out further research on the impact of betting exchanges to understand their full impact on the betting market and on horseracing.
in order to increase the accessibility of horseracing to newcomers, BHB should agree with bookmakers and the media a strategy to inform and educate them.
Sponsors
The Committee found that the problems which major potential sponsors have with horseracing may be grouped under the headings of Image, Structure and Understanding.
The potential upside to racing of making changes depends on the extent to which horseracing can overcome these. If it can, the pure sponsorship market for horseracing is valued at around 25m. If horseracing can adopt the sponsorship disciplines and new categories of sponsorship which exist in other sports, this value can be increased to upwards of 35m, compared to today's value of 16-17m. Most of this upside sits in the horseraces which are featured on terrestrial television.
The upside will be based on the establishment of clear narratives for horseracing including sponsorship of:
racecourses.
race products such as BHB's Summer Triple Crown and Grand Slam and the Super 12 racecourses' Grand Prix.
new categories of sponsorship, most notably timing, data and technology.
enhanced existing products such as the Jockeys' Championship with, for example, heavily promoted Jockey of the Month and Trainer of the Month awards.
The Committee acknowledges that there are entrenched negative attitudes to the sponsorship of horseracing by major consumer brands and that it will take a matter of years for horseracing to reach its full potential in the sponsorship market.
The Committee recommends that:
the promotion of horseracing sponsorship opportunities for races which are featured on terrestrial television is co-ordinated by a single, industry wide sponsorship unit which has the relevant sponsorship skill, knowledge and expertise.
all sponsorship assets for these races, including those owned by racecourses, owners, jockeys and broadcasters are brought together, in an appropriate structure, for onward sale to sponsors.
relevant stakeholders and BHB complete a business plan for the proposed sponsorship unit including its funding in order to secure new sponsorship opportunities from 2004 onwards. The duration of current sponsorship agreements mean that a new sponsorship model will have impact in 2005 save for a limited number of opportunities, most notably new categories of sponsorship, which may be realisable in 2004.
BHB Managing Director, Commercial Nigel Smith, who led the project on the Committee's behalf, said: "The Committee has created an agenda for change, some of which is simple, some of which is more complex. No doubt it can be augmented and improved upon, but what I am sure of is that, if we want to appeal to a broader audience, change must happen."
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