Boost for racing's coffers as Levy Board announces better-than-expected yield

Racing will receive a timely financial boost from the levy after a better-than-expected yield of £97 million for the year ending 2019-20.

The Levy Board had been forecasting a range of £90-£95m for last year, but by reaping an additional £2m the return is set to be the highest for three years, and is considerably more than last year's yield of £83m.

Levy Board chairman Paul Darling said: "It is very welcome that levy yield for the past year looks like being in line with, if not just ahead of, expectations. This removes one of the current uncertainties for us in our financial planning.

"I would like to thank all those bookmakers who have made timely returns to us in the current difficult circumstances and also to those whose voluntary monthly reporting of betting performance during the past year has enabled us to make forecasts with increased confidence and precision."

Levy Board chairman Paul Darling: 'We understand the particular importance of Levy Board funding at this time'

The levy is being increasingly leaned upon by racing for self-help as the industry deals with the financial implications of the coronavirus pandemic, with no racecourse action taking place since March 17.

Together with the Racing Foundation, the Levy Board recently contributed towards a £22m stimulus package for racing, while racecourses were given access to a further £6.5m after previously ring-fenced funds were released to help with cash flow.

In an update to the industry on Thursday, the resumption of racing group outlined how being behind closed doors will impact prize-money, and Darling said the Levy Board was preparing to try to help make up some of the shortfall.

He said: "This additional revenue will be built into our modelling as we now focus on the contribution that the Levy Board can make at the point that racing fixtures resume in line with government requirements and guidance. These discussions are ongoing with the key parties involved.

"We understand the particular importance of Levy Board funding at this time. We expect to be making a greater than usual contribution to prize-money as and when racing resumes, albeit that we must do so on a financially responsible basis in recognition of the wider uncertainty around our own ongoing future income."

BHA 'pleased to see the rise in levy yield'

A BHA spokesman said: "We are pleased to see the rise in levy yield for 2019-20 following the decline in the previous year. This indicates British racing continues to engage fans and the betting public.

"The higher than forecast up-turn is a significant help at a very challenging time for the finances of our industry.

"We welcome that HBLB and the Racing Foundation having already committed significant support to the industry and its participants through a £28m package to support the hardest hit and to provide cash flow for businesses and employers.

"Additional levy income received can assist with managing the economics of a resumption of racing when that becomes possible.

"It is clear that we are highly unlikely to see such a yield in 2020-21, however, and the increase in Levy yield compared to last year is significantly outweighed by the revenues already lost as a result of the necessary suspension of racing."

Read more:

Hardship package of £22m revealed to help in racing's 'incredibly tough battle'

Backing for £22m hardship fund but Simply Ned owner asks: where is help for us?

Levy Board allows tracks to cash in now on £6.5m ringfenced for future projects

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