Reflections on Funding Prospects for UK Horse Racing

In the world of horse racing, the topic of financial backing frequently surfaces in conversations. Stakeholders, including racehorse proprietors, trainers, and jockeys, all appear to agree that additional funding is crucial for the sport's longevity.

There's no doubt that increasing finances would benefit UK racing, yet the sense of urgency with the term 'need' in this context often feels exaggerated and somewhat misguided.

Levy Funding

Since the 1960s, funding for the sport has predominantly come from a levy system managed by the government, allocating resources meticulously through the Levy Board. UK licensed bookmakers Operating under challenging circumstances, the Levy Board has consistently ensured that the collected funds reach various essential areas, such as prize money, veterinary investigation, preservation of native horse breeds, and the grassroots racing sector.

A careful consideration of how the levy is calculated and its defined purpose could pave the way for discussions on potential increases or alternative income streams.

Bookmaker Levy

On the Horserace Betting Levy Board's portal, information regarding the levy rates is explained, outlining how a 10% charge is applicable when an Operator's profits surpass the allowable non-taxable sum of £500,000 related to horserace betting.

According to the This taxation seems straightforward, with foreign race events like those in Ireland, France, and others displayed prominently in betting facilities yet not subjected to the levy, showcasing a debated area within the gaming community. Past recommendations have surfaced advocating for the inclusion of overseas events in the levy, particularly when UK-based betting is involved, although political hesitance to implement such changes remains persistent.

I've expressed concerns within certain quarters about segments of the racing and breeding spheres that appear to offer insufficient returns to the sport.

Auctioneers, benefiting significantly from the racing industry in recent years, stand out, their proceeds soaring alongside the esteemed Tattersalls Book 1 sale, indicating substantial financial growth over time.

Alternative Sources Of Income

Auction-generated expansion is notable, with figures revealing impressive increases, for instance, Tattersalls Book 1 experiencing a leap from just over £48 million in 2010 to over £126 million by 2022, with the typical sale price more than doubling.

A 5% levy on these transactions, shared between sellers and buyers, could conveniently introduce more than £6 million into the prize fund pool.

Such a contribution could fund additional race meetings generously, translating into 30 extra events with £200,000 in prizes each, ideally spread out across a racing season.

Not only distinguished sales like Book 1 but others at Tattersalls, such as Book 2 and 3, have witnessed upward trends in sales aggregates and averages, highlighting the broad financial potential within the industry.

Goffs UK, too, showcases growth, with sales aggregates ballooning despite selling fewer horses, reinforcing the commercial momentum the industry holds.

Enacting a 5% levy, distributed equally between the parties, can generate another £2.5 million earmarked for prize increments.

While auction outlets appear lucrative within the UK horse racing sector, their actual financial input back remains a sticking point of contention.

Common defenses link auction house contributions to the races they support, yet bookmaker sponsorship could significantly exceed these offerings if properly accounted into levy adjustments.

Looking ahead, I hope to see multi-year funding commitments, primarily through the levy complemented by other industry sectors' participation.

Auction venues, race venues, and breeding establishments, possibly including increases from the European Breeders Fund, could elevate their current less-than-£2-million UK racing input.

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Future Funding

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