Record British prize-money in 2022 but racecourses concerned over affordability checks

British prize-money reached a record high in 2022 but the Racecourse Association (RCA) has warned of the damaging impact of affordability checks this year.

Total prize-money stood at £182.5 million last year, up from £148.3m in 2021 and almost ten per cent higher than the previous record of £166.3m in 2018. This was linked to racecourses's executive contribution, which increased to a record £88.9m, 2.9 per cent higher than the previous peak of £86.4m in 2018. Executive contributions accounted for 49 per cent of the total prize-money figure, up from 36 per cent in 2021 but down from a high of 52 per cent in 2017.

The RCA said executive contribution increases for 2023, such as those announced by the Jockey Club, Ascot and Goodwood, were cause for "cautious optimism" but warned rising energy prices, wage costs, the impact of the gambling review white paper and cost-of-living crisis provide an "extremely challenging environment".

The white paper is expected to include proposals on affordability checks, which are estimated to already be costing British racing millions of pounds in revenue.

"It's encouraging to see prize-money levels reach record highs in 2022 despite a relatively high level of abandonments," said RCA chief executive David Armstrong. "Racecourse executive contribution will continue to grow in 2023 but in overall funding terms the sport still faces significant risks, not least the continued impact of increased affordability checks by bookmakers on betting turnover. 

"We look forward to the publication of the white paper and to working with our bookmaker partners to embed the necessary changes and grow the sport."

The prize-money increase last year was welcomed by the National Trainers Federation (NTF) but its chief executive was similarly concerned about the challenges ahead, such as the increasing costs faced by trainers and the ongoing impact of affordability checks.

"After a number of challenging years, record prize money levels in 2022 were most welcome in helping us retain owners in the sport," said chief executive Paul Johnson. Trainers’ businesses continue to face increasing costs and we do remain concerned about the future, particularly with the ongoing potential for affordability checks to have a significant impact on the sports financial wellbeing."

Due to the impact of the coronavirus pandemic, the Levy Board increased its contribution to prize-money across 2020 and 2021. Levy funding accounted for 38 per cent of prize-money last year down from 51 per cent in 2021 and closer to a pre-pandemic contribution of 35 per cent. Last year's contribution of £70.3m was much higher than the 2019 figure of £57.2m, partly due to support from the government's Winter Survival Package. 

Levy Board contributions from September 2023 have not yet been confirmed but the RCA said they would be lower in 2023 than 2022 but still above the pre-Covid level. Owners contributed £23.3m to prize-money last year, accounting for 13 per cent of the total. This was an increase of 22 per cent from £19.1m in 2021 and the highest figure since owners contributed £23.7m in 2019.

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