Horserace Betting Levy Board running out of funds 250 horse racing fixtures to be cut
The Horserace Betting Levy Board (HBLB) is simply running out of funds. Recently, the board announced an additional 3.75 million pounds cut in expenditure for the year 2010. 2011 is looking just as bleak.
To compensate, many people affiliated with the sport are considering reducing the number of fixtures per year by as many as 250. The effect of the cut would be felt most strongly at Kempton and Wolverhampton. Kempton might end up losing as many as 72 fixtures.
It’s highly unlikely that the HBLB, with dwindling finances, estimated at 70 million pounds, could support around 1500 race meets planned for the next year. The solution, although perhaps feasible, is not at all pleasant. The British Racing would be hit hard if the number of fixtures is reduced. Even then, there is no guarantee that it would do any good. In fact, it might even be counterproductive to simply cut races. In any event, the measure would provide nothing more than temporary relief, and in the long run can be utterly futile unless the underlying cause behind HBLB's financial woes is identified and addressed.
However, until then there is little hope for the 250 fixtures that are going to be axed. “Given the income and expenditure levels we are expecting from the Levy Board next year, a fixture list of 1,503, like this year’s, cannot be justified,” British Horseracing Authority’s Ruth Quinn said.
What about the fixtures getting axed, though? It just makes practical sense that meets that take more from the Levy board then they put back in be cut before any others. However, it was reported that most of the fixtures on the BHA’s hit list contributed net positively by an amount of around 10 to 15 thousand pounds to the Levy. If the estimate is accurate, the Levy board might simply end up losing more than it would save by reducing the number.
Let’s not even talk about the number of jobs the cut would put at risk. The newest racetrack added to the British horseracing inventory is the Ffos Las. The idea of cutting fixtures threatens their future and they don’t plan on going down without a fight. On the contrary, Ffos Las is gearing up to take legal action against the fixture cut. The track simply cannot stand to lose, as feared, 12 of its 28 fixtures. The racecourse cost investors 20 million pounds and as of the 18th of last month, is only one year old.
On the surface of it, it appears that the BHA is protecting large pursed events at the expense of lesser known fixtures. Prize money for 2011 is expected to be around 37 million pounds. That is a decrease of about 15 million pounds from last year.
The Horse Betting Levy Board is defunct. Their funding mechanism can’t sustain itself, a fact made only more apparent by the HBLB’s press statement outlining how much money they had not been able to collect from overseas bookmakers. Clearly the HBLB has no jurisdiction outside and can’t really be blamed for that, but unless something is done, the sport would eventually come crashing down and cutting fixtures would not be able to save it.
Overseas bookmakers are draining the sport, since they do not pay the Levy and hold an advantage over their UK based rivals. Their UK based counterparts not only have to pay the UK Taxes but also contribute to the Levy to operate. In response, William Hill, the largest bookmakers in UK, are now seriously considering moving their betting operations outside of the UK. The BHA is picking on the signs at least.
“Our overall view remains that the current relationship between racing and betting through the Levy process is badly broken, and needs to change radically,” Ruth Quinn told the press. He said that Levy returns have been the lowest since 2003. “There are many complex issues involved, but we have grave reservations that this is simply not sustainable and will have to keep very close attention on developments,” Quinn said in conclusion. He is right; unless things change, horse racing could simply come to a halt.
Tags: