ARC Feels Backlash Over Prize-Money Cuts

[Wandering Eyes]

The UK’s largest racecourse group Arena Racing Company (ARC) has been given a taste of how badly its reduction in prize-money has been received with two novice races at Lingfield’s Saturday meeting attracting a combined total of one declared runner.

Both Class 5 events with an advertised total prize fund of £4,500 each, the 1m novice stakes, which had received 18 entries, became a walkover at the declaration stage–the Nick Littmoden-trained Greybychoice (Ire) being the sole intended runner–while the five-furlong contest will have no runners. Particularly embarrassing for ARC is the fact that these two races are on one of its highest-profile cards of the year featuring the G3 Betway Winter Derby.

Britain’s winningmost trainer Mark Johnston told TDN on Thursday morning, “I had two runners entered for the same race. I looked at the prize-money and I regretted entering. I took one to Chelmsford instead, where the prize-money was more than 50% better, and the other one will be entered for a median auction maiden at Southwell worth £8,000. It’s getting to the point where it’s embarrassing to take horses to some of these races. I’ll be monitoring the prize-money levels closely before entering.”

Just less than a year after the British Horseracing Authority was able to announce a significant increase in prize-money for grassroots level racing, ARC let it be known in December that it would slash £3 million from its prize-money budget for 2019 as a response to the British government’s decision to cut the maximum stake on FOBT machines in betting shops from £100 to £2. Bookmakers have estimated that around 4,000 betting shops may close as a result of this, which would lead to a significant shortfall in the media rights payments received by racecourses, currently calculated on a ‘per-shop’ basis.

This decrease in ARC’s executive contribution to prize-money in lower-grade contests–affecting Class 4, 5 and 6 races on the Flat–means that the company is unable to ‘unlock’ extra funding made available to racecourses through the Race Incentive Fund (RIF) and the Appearance Money Scheme (AMS), which were introduced from the start of 2018 to extend prize-money payments to placed horses. In ARC’s case, this is believed to amount to around £4.5 million.

In a statement released in December, ARC’s Chief Executive Officer Martin Cruddace said, “The British racing industry is today in a considerably different position than when we underwent the funding review of 2017 which came about as a direct result of the increase in Levy income to the sport, itself a result of the Levy being extended to cover online betting companies.

“Today, however, the well-publicised impact of betting shop closures on racecourses’ media rights income has already started to take effect, and will only increase in the months and years to come.  As a result of this, ARC simply cannot continue to support our current levels of executive contribution to prize-money and unlock all qualifying races, as was the case throughout 2018. We fully understand the importance of prize-money across the industry, and do not take such a decision lightly.”

It is a decision which has been greeted with frustration by a range of owners and trainers. Phil McEntee, who deliberately targets the all-weather season for his small Newmarket-based string with notable success, said of the lack of support for Saturday’s races, “This is clearly a stand against ARC. Prize-money levels aren’t acceptable and it’s good to see that some of the bigger trainers who had runners entered have not declared for the races. This isn’t just about the smaller owners and trainers but it does hit the smaller yards harder. We’ve had five winners on the all-weather so far this season and the extra money that is available for placed horses and through the AMF really does make a difference to my owners and to my staff. It trickles in and helps the business model.”

With 16 racecourses in its portfolio, including four of Britain’s six all-weather tracks, ARC stages more than 500 race meetings each year and in 2013 it launched the £1 million All Weather Championships Finals Day on Good Friday. The introduction of Europe’s richest non-turf race meeting was designed to encourage owners to keep more Flat horses in training through the winter, though recent cuts may end up having the opposite effect.

Laurence Bellman, who has 15 horses in training in Britain, admits that he has considered retiring several of his string. He said, “I am in that category where I have a lot of all-weather runners. I love my horses and I’m not in this for the money but I don’t want to be running for less than we were last year, and I imagine 100% of owners feel the same.

“I still have a great time having a winner at Southwell, or wherever it is, and I love to go racing to watch my horses, but as an owner I feel we can’t take a decrease in prize-money–none of the costs of having a horse in training have decreased.”

 

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