PRIZE MONEY A fair distribution? | Trainer Magazine | European Trainer Article Index

Apr 5

Apr 5 PRIZE MONEY A fair distribution?

BUSINESS, RACING

THE International Federation of Horseracing Authorities publishes annual figures that include prize money versus training expenses, showing the percentage of keep and training expenses covered by prize money won, per horse having run. From 2010 to 2014 – the most recent published figures – French-trained horses have fared best, with a low of 52% in 2014 and a high of 57% in 2012. In Germany, the percentage has steadily increased from 24% to the current 30%. Britain has also seen a steady increase, from 21% to 25%, as has Ireland, from 22% to 31%. Sweden, however, has seen the percentage decline, dipping from 56% in 2010 to 30% in 2014. While Swedish figures had risen from 38% to 56% in the preceding five-year Chester racecourse is offering £400 to every runner that has not received prize-money TRAINERMAGAZINE.COM ISSUE 53 Chester Racecourse recently announced what amounted to an appearance money scheme and, hot on its heels, Ireland introduced fifth-place prize money as standard, prompting a closer look at how the prize money fund is being divided and if the “lifeblood” of racing is flowing through every vein. WORDS: LISSA OLIVER PHOTOS: CHESTER RACE COMPANY LTD, CAROLINE NORRIS, SHuTTERSTOCk period, the remaining countries saw little fluctuation over the 10 years. Meanwhile, the average number of starts per horse in 2014 didn’t vary too much, with French, German, and British horses averaging five starts, compared to Irish and Swedish horses starting four times – an amount more or less unchanged over a 10-year period. So we can see that a racehorse gets only a very short window of opportunity to pay for itself during a season and, at best for most, will only recoup half its training fees. The increasing of prize money for placed horses, and increasing of places from fourth to fifth, suddenly becomes more than just a token gesture. It may appear fairly insignificant and it may not attract new owners or play a decisive role in encouraging existing owners to stay in the game, but for those who are involved in racehorse ownership, it could be a welcome little bonus, even in simply offsetting travel costs or jockey fees. Describing the move in Ireland to increase prize money down to fifth place as a positive step, Michael Grassick, CEO of the Irish Racehorse Trainers’ Association, says, “I had a look at figures and it costs an owner ¤500 to run in just an ordinary race, when you take into account the entry fee at final declaration, jockey’s fee, transport, farrier, racing shoes, and groom. You’d be happy if the horse was competitive and finished in the first five; at least the prize money should cover expenses.” Currently the lowest-value race in Ireland is ¤9,000, and where 70% of the prize money went to the winner and the remainder split in decreasing increments down to fourth place, this season the percentage to the winner has decreased to 65% to cover a fifth-place prize. “It’s the hidden costs that upset the owner,” Grassick says, “and most are competing but not winning.” He points out that in many other racing jurisdictions the percentage of prize money to the placed horses is greater, but in Britain, for example, it doesn’t cost as much to enter a race. “In Ireland, it costs roughly about 1% of the prize money of a race to enter.” The move was very readily agreed, with full government support. “Our biggest worry is a drop of 400 horses in training, which equates to 100 jobs,” says Grassick. “That’s 400 off an already-low figure and it’s a worrying trend.” Some might argue that there is an unfair distribution of prize money across the tiers of racing, but a counterargument is that the better horses should be rewarded. The truth is that 60% of Flat horses run in the lowest-grade handicaps, rated 47-65 or their national equivalent, and similarly for National Hunt horses, rated 70-102. The dream may be of buying a Classic winner, but the reality is racing at the lowest level. “The biggest problem is how to encourage an owner to sell the low-rated horse with little value and buy a yearling to start again,” Grassick says. “They need more encouragement to convince them and make them feel they can compete.” The decision to spread the prize money down to fifth place was made by Horse Racing Ireland, but Grassick says there were no complaints from industry professionals and representative bodies. “Everyone feels the distribution is fair at the moment.” The situation is quite the reverse in Britain where, after only one year, additional funding from bookmakers’ voluntary contributions that had been used to extend prize money down to sixth or eighth place, depending on the type of race, in order to increase field sizes, has now been axed. Although the races had been successful in making for more competitive racing, the bookmakers themselves pulled the plug. Currently in Britain 50% of the prize money goes to the winner, with the remainder divided down to fourth place. This would be the norm throughout Europe, although how the divisions are then made throughout the placings can differ slightly. While Ireland now joins France in paying down to fifth as standard, other than added places for particular races, the remaining jurisdictions reward only the first four. Ireland leads the way, with 65% of the purse going to the winner – before all other deductions are taken from the owner’s percentage, of course. From there, the runner-up gets 19.5%, the third home earns 9%, the fourth 5%, and the fifth 1.5%. In reality, that can amount to as little as ¤135 in a minimum value race (¤9,000), which isn’t a great dent on the travel costs. The jockey’s fee, on the Flat, is ¤146.77 and if National Hunt, ¤169.21. In France, the allocation from the prize value of the race is 50% to the winner, 20% to the second, 15% to the third, 10% to the fourth, and 5% to the fifth. From a race of the same value as Ireland’s minimum value race, the fifth-placed horse will take home ¤450, bearing in mind, too, that the French jockeys’ fees are significantly lower. The BHA base the division of prize money on the particular type of race, but “Our biggest worry is a drop of 400 horses in training, which equates to 100 jobs.That’s 400 off an already-low figure and it’s a worrying trend Michael Grassick ” it generally approximates to 50.5% to the winner, 16.5% to the second, 8.5% to the third, and 4% to the fourth. Sweden provides a generous 25% to the runner-up, but in general the allocations are across-theboard throughout Europe. Chester’s initiative of offering a minimum of £400 to every runner (i.e. those not securing prize money) is full of good intent and may well increase field sizes – the ultimate desired effect – but for those horses not incurring large travel expenses, it may be a question of simply turning up for the money. The field size may increase, but the race will become no more competitive. In a letter to Mark Johnston Racing’s monthly newsletter, The Kingsley Klarion, Tattersalls Marketing Director Jimmy George suggests that an appearance fee scheme should adopt that policy used by Singapore, whereby the last three finishers are excluded. He points out, “As you can imagine, it gets all quite competitive out the back!” When it comes to competitiveness, surely place money down to lower places, such as seventh or eighth, would go a long way, for very little? Meanwhile, it remains a great pity that the races in Britain utilising the voluntary contributions of bookmakers to ensure place money down to eighth were shelved. It may only be a small percentage of a large pot, but if you happen to be the owner of one of the 60% of horses chasing that pot, at the lowest end, it has to be a case of “every little helps,” however little. n

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