Standing firm: Arc boss Cruddace sticks to prize-money stance despite boycott

Arc boss Martin Cruddace defiantly faced down threats of further boycotts from trainers over prize-money, insisting such action would not change the group’s position and was in fact hurting racing rather than helping it.

Cruddace was on course at Lingfield on Saturday where the Betway Winter Derby card was reduced from seven races to five and a walkover by an orchestrated trainers' protest against the reduced prize-money offered by Arc in lower grade races.

The cuts come as Arc prepares for an anticipated drop in income from media rights payments as a result of projected betting shops closures following on from the government’s reduction in FOBT stakes to £2 from £100.

In December, Cruddace revealed Arc would be cutting nearly £3 million from executive contributions to prize-money, which had the knock-on effect of denying the group £4.5m of levy funding for lower-grade races.

Rumours were rife on Saturday regarding further possible boycotts from trainers in the weeks ahead, yet Cruddace insisted he would not budge.

He said: "We are braced for further action because we've heard rumours and we’ve got intelligence, but we'll deal with it as and when. It will not achieve its purpose – of that I can 100 per cent assure you."

Cruddace is hoping progress will be made at a meeting on Tuesday between the Racecourse Association, the horsemen and the BHA, and that a way can be found to release £4.5m that has been allocated to Arc for its lower class races.

However, he is standing firm on Arc's resolve not to contribute the £2.7m of its own money that would be required to unlock it under current arrangements.

Greybychoice was handed a walkover at Lingfield due to the prize-money boycottCredit: Mark Cranham

He said: "I'm very anxious that we work with the other parties to see if we can find a resolution to this, but the resolution will not be that we pay the £2.7m. I'm absolutely adamant about that, and if anything I'm more adamant about it than I ever was because I don't think boycotting these races is the right way to proceed.

"Our allocation [from the levy] for Class 4, 5 and 6 races is £4.5m, but to access that we have to put in £2.7m, or £900 a race, which we can no longer afford to pay. These races today could have been run for £1,400 more each race, but not with our £900 to do it. Last year we were happy to do that because the media rights landscape didn't look too negative, but unfortunately now it does."

He added: "The impact on us of this action is very minimal, but I worry about the impact on our customers, I worry about the impact on our sponsors, and I worry about the impact on the levy – and when I say our customers, I mean racing's customers.

"That's the trainers’ decision [over whether to boycott] and it's a matter for them, but if they take a step back they will understand it's not so bleak and we are not being as random as they are suggesting."

Cruddace pointed to a rise in prize-money since he took over as Arc chief executive in 2015, and stated the group was maintaining higher levels despite forecast betting shop closures.

Martin Cruddace: 'The impact on us of this action is very minimal, but I worry about the impact on our customers, I worry about the impact on our sponsors, and I worry about the impact on the levy'Credit: Edward Whitaker

"When I joined the company I was very anxious that we looked at prize-money and whether or not it was enough. That was in 2015 when our prize-money was £11.3m,” he said.

"This year it's going to be £15.2m or £15.3m, which is a 38 per cent increase, and we are maintaining that increase notwithstanding that we think 1,000 shops will close – and 300 or 400 already have. Those closures have a hit on the top income line that cannot be mitigated. It passes all the way through to profit.

"But the underlying story is a good news story I think. We are maintaining our prize-money levels at a 38 per cent increase on 2011 even though there's a [forecast] 1,000 shop hit to our top line, which is £6m or £7m impact."

While the threat of boycotts is so far directed squarely at courses belonging to Arc, Cruddace claimed other tracks would be forced to cut prize-money themselves before too long.

He said: "We are at the sharp end, but when they talk about others like Racecourse Media Group courses, Chelmsford and so on, there's a distinct difference between their position and ours.

"It's written into their media rights that the loss of income from the first 1,000 shop closures lies with SIS, but we haven't got that in our agreements.

"They don't have to worry until it gets to a thousand shops, but we are already 400 or 500 closures in and I promise you that once we get the other 500 they will all be doing the same thing. That's why you aren't hearing other racecourses criticise us.

"They are watching carefully while we are first out of the trench and taking all of the bullets. We'll be clearing the way for them to follow."

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