Jockey Club admits 2023 was a 'challenging year' as it reports a sharp fall in profits

Profits dropped sharply at the Jockey Club last year, with British racing's largest commercial body blaming inflation, falling attendances and stricter gambling regulation for the fall.

Core operating profit was £12.7 million, down 37 per cent from £20.2m the previous year, according to the Jockey Club's financial results for 2023.

The Jockey Club said this was "primarily" due to the impact of cost inflation, while it also cited a "significant increase" in its investment in prize-money and a year-on-year reduction in aggregate attendance throughout the year.

Chief executive Nevin Truesdale said there was "no doubt" that 2023 had been a "challenging year for the Jockey Club".

He added: "Despite these challenges, we have continued to prioritise our commitment to the long-term good of our sport, as demonstrated by an increased investment in our facilities and prize-money, while also reducing our cost base in a number of ways.

"Rising inflation has had a significant impact on the cost of everything from utilities, business rates and temporary structures to the goods and services we need to purchase in order to operate. For example, the fixed cost of staging the Cheltenham Festival will be over 50 per cent higher in 2025 than it was in 2019.

“We made the decision not to pass on these increased costs to racegoers and others who use our venues if we could possibly avoid it, which in turn has had an effect on our profit. Increased betting regulation also affected our media revenues, particularly online betting turnover, which per race was down eight per cent year-on-year, and this is an issue which is having an ongoing and detrimental impact on the industry’s finances."

Total attendance at the Cheltenham Festival was down 10,600 overallCredit: Patrick McCann

Truesdale, who is stepping down from his role at the end of this year, said that despite those headwinds the Jockey Club had continued to stage "outstanding racing and events", attracting around 1.5 million people.

He added: "I would like to thank each and every member of the Jockey Club team for their continued hard work and commitment.”

The Jockey Club's turnover was £243.4m, up three per cent on 2022, driven largely by increased hospitality sales and sponsorship.

Total prize-money of more than £58.2m was distributed during the year, including a contribution from the Jockey Club's own resources of £30.3m.

The Jockey Club also continued to invest in its facilities, with £17.1m invested in capital expenditure projects in 2023, compared with £11.4m in the previous 12 months.

It also said that "significant progress" had been made in reducing its long-term net debt position which in December 2023 stood at £53.9m, down £6m year-on-year and from a peak of £105.8m in 2015.

In April, the Jockey Club announced it was cutting its executive contribution to prize-money this year by around £750,000 due to the "very, very significant financial headwinds" it was facing.

It followed a 10,600 fall in total attendance at the Cheltenham Festival in March, which is hugely important to the Jockey Club's financial year.

Outlining the current outlook, the Jockey Club said in its statement: "While our current trading has improved since earlier in the year, it is anticipated that the overall macroeconomic conditions facing British racing will continue, putting pressure on profitability in the short term.

"However, these conditions will abate and there continues to be significant growth opportunities for our sport which can be unlocked by focusing on expanding our fan base and increasing attendances. The Jockey Club remains committed to working collaboratively with the whole sport to achieve that."

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