Owners' chief: 'British racing's finances are in an extraordinary position - we have no clarity on 2025 prize-money'

British racing's finances are in an "extraordinary position", the sport has been told, with "genuine uncertainty" as to the level of funding into prize-money next year.

Racehorse Owners Association (ROA) president Charlie Parker gave the warning at the organisation's annual meeting in London on Thursday, telling the gathering that uncertainty was inhibiting the sport's ability to grow.

He revealed that levy figures for the current financial year are "worryingly behind" the previous 12 months and called on the BHA to resurrect talks on levy reform and deliver a revised deal.

In his speech, Parker highlighted the work being carried out on two new undertakings named Project Beacon, on consumer insight, and Project Pace, which is examining inward investment aligned with British racing's top Flat events.

"There may not be a silver bullet, but it is incumbent on us to explore the opportunity. We need to grow the cake and not just squabble about who gets what share of a decreasing pie," he said.

Charlie Parker: "Industry finances are in an extraordinary position"Credit: Edward Whitaker (racingpost.com/photos)

However, he added: "Currently the industry finances are in an extraordinary position. No business has a completely clear picture of their future revenues and costs, but most can be fairly sure of where they are and budget accordingly. 

"Racing does not have that luxury or control. Buyers at the late summer and autumn yearling sales do not have clarity on what the prize-money will be in 2025 and beyond."

Parker pointed out that the BHA is primarily funded by owners and by racecourses to the tune of more than £40 million, and that racecourse funding via fees per fixture came mainly through grants from the Levy Board. 

He added: "The 2024-25 levy year has apparently started worryingly behind last year. A combination of bad weather, the European football and affordability checks are the likely prime suspects in what has been a disappointing start to their financial year. 

"The levy’s largest funding is of prize-money. However, given that the BHA has first call to balance its own books, there is genuine uncertainty as to the level of funding into prize-money in 2025."

In addition to Projects Beacon and Pace, there are a number of other programmes in place around industry people, equine welfare and the Racing Digital IT and administration project.

However, Parker claimed that the BHA did not know whether it had the budget to deliver them.

He added: "This is a short-term and haphazard way to run any business. The inability to take long-term strategic decisions and to be able to deal with short-term issues greatly inhibits our ability to grow and the BHA's ability to lead."

A review of the levy had been due to be concluded in April as part of the proposals set out in the previous government's gambling white paper.

Talks between British racing's leadership and bookmakers were said to have been close to a deal but that was scuppered when former prime minister Rishi Sunak called this summer's general election and there have been no signs of a return to the negotiating table.

Parker said: "It is crucial therefore that the much discussed and documented levy reform is put back on the political agenda as soon as possible."

He added: "The BHA and the industry group which works closely with them must now deliver a revised deal as soon as possible or we risk seeing real impacts upon prize-money and an inability to make any progress on the areas that must be delivered."

The ROA recorded its fourth loss in five years in 2023-24, which Parker said was "not ideal", although there had been "some positive highlights".

Membership, which had been approaching 8,000 in 2019-20, has fallen to around 6,250.

Louise Norman: Communication for the ROA "is paramount"Credit: Edward Whitaker (racingpost.com/photos)

Chief executive Louise Norman said: "The communication for us as a membership organisation is paramount, it's critical.

"It's probably an area we have not been as significantly involved in, talking to our members, listening, understanding the needs and wants, the variety and varied levels of ownership investment through from micro-shares, shared ownership through to top-tier large ownership.

"There is a vast array of opinions there and we need to be able to access that, talk to those owners and demonstrate we are actively listening." 

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