Arc criticised as cuts to racecourse group's prize-money begin

Prize-money cuts at Arena Racing Company's (Arc) tracks have come under fire as the consequences of belt-tightening at the racecourse group became apparent for the first time this week.

In December Arc announced it would be reducing its executive contribution to prize-money by £3 million in 2019, blaming the cuts on the prospect of reduced media rights income.

Racecourses receive payments from bookmakers for showing their racing in betting shops, but that income is expected to fall as betting shops close having become unprofitable following the government's crackdown on FOBTs.

The cut in executive contributions is set to have a double whammy for racing's participants as the money would have been used to "unlock" extra funding from the Levy Board, amounting to around £4.5 million for lower-grade races.

The cuts came into force on Monday and mean, for example, that the six races at Lingfield on Saturday are being run for around £9,000 or 15 per cent less prize-money than the equivalent races were in 2018.

Talks have been taking place between the Racecourse Association (RCA), BHA and Horsemen's Group to find a way of mitigating the impact on prize-money and are said to be delicately poised.

Not all racecourses have reduced their prize-money contributions this year, with the tracks under the Jockey Club Racecourses banner – which include the likes of Aintree, Cheltenham, Epsom and Newmarket – and large independents like Ascot and York maintaining their contribution.

However it is believed the total reduction in executive contributions across Britain's courses in 2019 could be more than £6 million.

Prize-money at Sedgefield's meeting on Thursday grabbed the attention of trainers, with Lucinda Russell tweeting that she could not enter horses for chases with a £3,800 prize fund or a hurdle race with £3,500 on offer.

"At a time that we are trying to work together that prize-money is unacceptable," she said.

Nick Alexander: Prize-money levels 'a huge step backwards'

Nick Alexander said the prize-money levels were a "huge step backwards" and that owners and trainers "should think hard about supporting this."

Arc, which has also warned it may have to make redundancies as a result of the pressure on its finances, did not want to respond to the comments regarding Sedgefield.

However, in the past chief executive Martin Cruddace has said Arc wanted to work with the BHA and Horsemen's Group to review funding arrangements.

It is understood the RCA has made a proposal to the BHA and Horsemen's Group asking for a reduction in minimum race values across all classes of race.

That would help tracks afford the £900 per race above minimum values needed to unlock extra levy funding at lower levels.

However the BHA and especially the Horsemen's Group have said they want more details of the tracks' financial situation before they can agree to reducing minimum values, especially given the changes to FOBT stakes are not implemented until April 1 and the full impact on betting shop numbers is not yet known.

Racecourse media rights deals are subject to commercial confidentiality which could prove to be an obstacle to progress in the short term.

The issue was discussed at a meeting of the sport's executive committee this week and will be on the agenda again when the fixtures and funding group meets next week.

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