Trainers' body 'disgusted' with Arc as prize-money row deepens

The row over prize-money escalated on Thursday as the National Trainers Federation said it was "disgusted" that Arena Racing Company plans to cut its contribution by £3 million in 2019.

The comments came after Jockey Club Racecourses revealed it is to maintain its contribution to prize-money next year, despite bracing itself for what was described as a "multi-million-pound reduction" in income from media rights.

It will, however, be the first time in a decade JCR has not increased its contribution from the previous year.

The statement from the NTF said it appreciated JCR's decision, adding: "The contrast with the Arena Racing Company stance is acute. The NTF is disgusted that Arc took the first opportunity to cut their contribution.

"Where possible, owners and trainers have a chance to vote with their race entries, with Chelmsford also committed to maintaining their prize-money.

"Racecourses should not need to have it pointed out to them how vital it is for the health of the industry to underpin the flow of revenues to horsemen in the form of prize-money. Most licence holders receive meagre reward as it is for producing horses every day so racecourses have a product to sell to the betting industry."

In response an Arc spokesman said: "The NTF's language is extremely unfortunate and is illustrative of a demonstrable and fundamental misunderstanding of our position, which we will set out again tomorrow for clarity."

This week Arena Racing Company announced it was reducing its contribution in 2019 in readiness for a reduction in revenues following the government's decision to reduce FOBT maximum stakes to £2 from £100, which is expected to lead to a major fall in betting-shop numbers.

JCR has budgeted to contribute £27.1m to prize-money in 2019 across 347 fixtures, the same figure as this year, when 348 meetings were scheduled.

There was also a warning the decision will remain under review in case the impact of the government's gambling review on media-rights income is greater than estimated.

JCR chief executive Paul Fisher: 'We've had some tough decisions to make'

JCR chief executive Paul Fisher said: "Every independent estimate has us facing a significant hit to our revenues from reduced media-rights income as betting shops close across Britain on the back of the gambling review.

"We've had some tough decisions to make and we've chosen to prioritise our contribution to prize-money because we know how important it is to racing's participants.

"We will maintain this record contribution from our resources for as long as we can, which comes at a cost to other areas of investment, such as improving our facilities. We already reinvest every penny we make, so a reduction in revenues means less to go back into the sport."

In 2010 JCR's executive contribution was £13m and it has more than doubled since.

JCR's decision to maintain the level at £27.1m means it will continue to unlock levy funding for the industry's appearance-money scheme, "for as long as this remains an industry-agreed funding model".

Arc's prize-money cut means it will not unlock the extra levy money, but it has called on the industry still to maintain that central funding for the grassroots of the sport.

Fisher added: "I hope people will understand we need to keep this decision under review in case LBO media-rights revenues are hit harder and faster than the independent estimates, and we publish all our figures to be transparent on that.

"It's also not just a case of when legislative changes kick in; it's also about when betting-shop leases come up. What we can guarantee is that we will continue to do everything in our power to support our industry and only ask in return that participants support Jockey Club Racecourses."

Horsemen's Group chairman Philip FreedmanCredit: Edward Whitaker

Reacting to JCR's announcement, Horsemen's Group chairman Philip Freedman said: "Horsemen will be relieved to know that Jockey Club Racecourses are maintaining their prize-money levels in 2019, and recognise that as media-rights income falls this represents a further investment by JCR in the sport.

"Ensuring that all races are unlocked and preserving the 33 per cent increase in grassroots values are particularly important for the vast majority of the horse population, on which the fixture list is dependent."

Racecourse Association chair Maggie Carver said it was a challenging time for Britain's tracks.

"In an era of significant financial uncertainty I'm sure that Jockey Club Racecourses’ intention to maintain its investment in prize-money in 2019 will be welcomed by horsemen," she said.

"It's a challenging time for racecourses of all sizes with a wide range of business models, and the RCA will continue to support all of its members as they deal with the rapidly changing media rights landscape."

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