Levy Board's prudence helped British racing weather impact of Covid-19 pandemic

The Levy Board's "prudent" decision to build its reserves enabled it to act as a "bulwark" against the impact of the Covid-19 pandemic, the organisation's annual report for 2020-21 has said.

Having had reserves of £58 million at the time the pandemic struck, the body tasked with collecting and distributing the levy paid by bookmakers is expecting that figure to have reduced to £26m at the end of this month.

With racecourse finances hit by the lack of full crowds for much of the pandemic, the Levy Board stepped in to provide extra prize-money once British racing resumed at the start of June 2020.

Levy income for the year to March 31, 2021 was £82m, £15.7m lower than in 2019-20, principally due to the suspension of racing throughout the first two months of the levy year.

However, the board's expenditure in the year reached £96.2m, including a significant uplift on normal prize-money contributions.

Overall, for the last six months of 2020, the board's contribution to prize-money was 42 per cent up on the same period in 2019, and then 46 per cent up for the first four months of 2021.

Alan Delmonte: reserves provide 'comfort and security'

In his chief executive's statement, Alan Delmonte said: "It is worth noting that the ability to consider giving assistance over such an extended timeframe was only possible because the board had sufficient funds in reserve.

"Although over the last decade, the board's reserve levels have fluctuated significantly, it has been a particular aim since the levy reforms of 2017 to ensure proper resources are maintained. The benefits of this prudent policy were apparent at the start of the 2020-21 levy year when the board began with reserves of £58 million.

"The impact of Covid has reinforced that when there are difficult times, the expectation in the sport is that the Levy Board will simply be there, able to help. Holding sufficient reserves provides comfort and security and is a bulwark against unforeseen events."

Paul Darling, who became Levy Board chairman in April 2020, thanked his predecessor Paul Lee and Delmonte for the condition in which he found the body on his arrival.

Paul Darling: Levy Board faces 'significant challenges'

In his statement, he said the Levy Board faced "significant challenges", including the consolidation of the betting industry and the need to establish where the levy sat in British racing's overall funding structure given the income also received by racecourses from media rights payments.

He also reminded racing that the levy was "public money" and that while racing's views on how it should be spent were essential, they were not exclusive to racing's members on the Levy Board or the BHA's members' committee.

Most importantly, he said, the board would be developing a strategy and business plan.

"Now that we are past the threat of abolition and, hopefully, the worst of Covid, we can set longer term objectives so as to spend our money as well as we can," he added.

"As part of that we will be aiming to develop our measurement of its effectiveness when we have spent it."

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