Jockey Club prize-money cuts: why are they happening and what impact will they have?

On Monday, the Jockey Club announced that it would be cutting prize-money from next month in the latest blow for British racing. Here we look at why it is happening and what impact the cuts will have.

Why is this happening?

From May 1, the Jockey Club is reducing its executive contribution, which is the amount of money it puts in as a business, to prize-money at racecourses it owns and runs. According to Nevin Truesdale, the Jockey Club’s chief executive, this is as a result of “very, very significant financial headwinds” related to moderate attendances and a drop in income from betting deals. 

The Jockey Club will be reducing its contribution to prize-money by approximately £750,000 to £31.1 million for the year. As a consequence, levy payments and entry fees are also expected to fall meaning total prize-money available at Jockey Club racecourses in 2024 will be £58.6m from a forecast £60.1m in January.

Which racecourses will be affected?

The Jockey Club is the second-largest racecourse group in Britain behind Arena Racing Company (Arc). Its 15 racecourses comprise some of the most high-profile venues in Britain such as Cheltenham, Sandown, Epsom, the two tracks at Newmarket and Aintree, which will host this week’s Randox Grand National meeting. Carlisle, Exeter, Haydock, Huntingdon, Kempton, Market Rasen, Nottingham, Warwick and Wincanton complete the group’s portfolio. The Jockey Club is governed by a Royal Charter to act for the long-term good of British horseracing. 

Where are the cuts likely to fall?

It would be logical to expect all racecourses in the group to be impacted, but we know for certain that Haydock, Kempton, Carlisle, Sandown and Exeter will each lose a Premier raceday as a result of the reduction in prize-money and instead have these meetings run as core racedays. For a fixture to be Premier, it has to reach a defined prize-money threshold of each race being worth at least £20,000 on the Flat, or £15,000 over jumps. 

On Monday, Truesdale told the Racing Post that the Jockey Club did not want to remove funds from the biggest races, “the July Cup, the Derby, the Dewhursts of this world” and as such was forced to “look at the handicaps and the fixtures that are on the border of Premier and core” for the prize-money reductions.

What is happening with prize-money at other British racecourses?

In November last year, David Armstrong, the Racecourse Association chief executive, warned that there was the real prospect of prize-money falling in 2024 due to the “triple whammy” of inflation, falling betting turnover and British racing’s new industry strategy. In an interview with the Racing Post in January, Arc chief executive Martin Cruddace said he expected his group’s prize-money for the year to be “stagnant at very best”, with the estimate being “£25-26m”. 

Some courses have announced increases in prize-money, with York and Ascot each boosting funding by £700,000 to £11.2m and £17.5m respectively for 2024. Newbury’s prize-money for 2024 will be £7m, up 13 per cent on 2023, primarily as a result of the racecourse switching broadcast partners to Sky Sports from Racing TV.

Read these next:

'Significant headwinds' force Jockey Club to reduce prize-money contribution for remainder of 2024   

Record £10 million on offer at Royal Ascot in 2024 as track reveals prize-money levels 

Newbury says switch to Sky has enabled it to increase prize-money to £7 million this year 

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