British racing warned prize-money may fall in 2024 as affordability checks head 'triple whammy' of financial blows

British racing has been warned there is a serious danger that prize-money levels will fall next year due to a "triple whammy" of financial blows headed by affordability checks.

Racecourse Association (RCA) chief executive David Armstrong put the sport on alert that 2024 could be a "very tough year" as his members were beset by financial pressures from falling betting turnover, the new industry strategy and inflation.

His comments come as owners and participants continue to call for better prize-money and transparency over racecourses' income from media rights deals.

Total prize-money was a record £182.5 million in 2022 and Racehorse Owners Association (ROA) president Charlie Parker told his organisation's annual meeting recently the figure for this year was "likely to come in just above last year’s level".

However, at the same event former ROA board member Sam Hoskins claimed racecourses received media rights payments of a "rumoured" £30,000 a race and called for more transparency on that income stream.

Writing in the Racing Post, Armstrong defended the racecourses' position. He said courses were "facing the most difficult combination of financial challenges in their recent history" and that the implications would be "felt across the sport".

Armstrong added: "The range of so-called headwinds facing the boards of every racecourse are, taken together, even worse than the pain felt during the Covid crisis."

At the top of the list was a double-digit fall in betting turnover, "especially in online markets", which Armstrong ascribed to two factors – affordability checks and reduced promotional activity on horseracing by bookmakers.

Armstrong said that media rights payments, which are mainly based on betting turnover, were important for all courses and the largest revenue stream for many. He added: "If betting turnover falls, media rights income falls and we’re now seeing this have a really negative impact on racecourses. 

"For any business, seeing its largest income stream fall by over ten per cent every month compared with 2022 has major consequences and forces changes and cost cutting measures throughout. 2023 prize-money levels were set against 2023 budgets and it is not sustainable to maintain those levels as budgets are being set for 2024."

Armstrong also pointed to the "significant investments" made by racecourses to support the new industry strategy and premierisation, with 41 fixtures being moved from the new Saturday protected window and almost £2m in levy funding for prize-money being diverted to Premier racing, "thus putting greater pressure on those racecourses largely participating in core [fixtures]".

Racecourse Association chief executive David Armstrong: "2024 looks likely to be a very tough year"Credit: Edward Whitaker

Armstrong also raised the impact of inflation of racecourses, with energy prices, maintenance costs and growth in the minimum wage all heaping pressure on the bottom line. 

As a result, Armstrong said racecourse profitability was being "badly squeezed". He added: "There is a real danger that with the effect of the triple whammy outlined above, prize-money in 2024 is going to fall if racecourses are to run their business in a responsible and viable manner."

Armstrong is not the first senior racecourse figure to sound the alarm about the impact of affordability checks on the sport's finances. 

Last month Arena Racing Company chief executive Martin Cruddace wrote to culture secretary Lucy Frazer to warn British racing risked becoming the "sick man" of European racing, with affordability checks blamed for more than £1 billion of online betting turnover on the sport being lost since 2021. 

British racing has estimated the industry could lose up to £250m over the next five years if the government's proposals for affordability checks on punters come into force.

The petition calling for ministers to halt the controversial plans to introduce affordability checks passed 100,000 signatures on Tuesday night. 

The petition, launched by Jockey Club chief executive Nevin Truesdale, calls on the government to "abandon the planned implementation of affordability checks for some people who want to place a bet".

Petitions that reach 100,000 signatures will be considered for debate in parliament.

Read these next:

David Armstrong: 2024 looks likely to be a very tough year for the sport 

Treasury did not consult DCMS on 'hammer blow' tax move says BGC 

British government's affordability checks plan rejected by racing's participants and fans after petition passes 100,000 signatures 

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