Horserace Betting Levy Board

The Horserace Betting Levy Board (HBLB) and the Racing Foundation have agreed an immediate combined £22m package to support British racing during the coronavirus outbreak.

The organisations have worked closely together, in conjunction with parties within British racing, with the objective of providing timely funds where they are most needed, whilst also ensuring the contributions are made in an accountable and sustainable manner which is in line with the objectives of both organisations.

HBLB and the Racing Foundation recognise that they will be asked to play substantial roles in the months to come and will continue to be involved in discussions with the sport.

HBLB’s contribution focuses on racecourses with the Racing Foundation’s main focus on hardship issues faced by racing’s participants, both human and equine. Both bodies will contribute to a loan fund for racecourses.

There will be a £13.5m cash sum available to racecourses and up to £8m for the sport’s participants as follows:

Advance payment to racecourses of grants for Raceday Services

HBLB currently pays £12,571 to each racecourse for most fixtures, which goes towards costs incurred for regulation and integrity services, the majority of which is accounted for by the costs of the British Horseracing Authority.  To assist racecourses with cash flow, the Board has agreed to provide early up to eight of these raceday services grants (RSGs) to each racecourse. These will represent each racecourse’s last eight RSGs due in 2020 (i.e. for its last eight fixtures of the year). The Board will pay four now, which is an advance of £3m, with these payments expected to be made before the end of April. It is anticipated that the next four will be paid in the near future once the expected Levy yield for the year ended 31st March 2020 has become sufficiently clear. The eight grants to each racecourse will represent a £6m advance of payments by HBLB.

Loans of up to £200,000 per racecourse

HBLB and the Racing Foundation will make available a joint fund of £7.5m available to all racecourses with each contributing £3.75m and with each party then recouping its monies as the four-year loans are repaid (starting in 2021). HBLB’s own current policy is to offer up to £200,000 without a racecourse going through independent due diligence and applications on this basis will be invited in the next week.  A cap on the amount available to racecourse groups will apply.

The Racing Foundation in conjunction with other funders including the John Pearce Foundation has focused on supporting the ability of racing’s charities and member organisations to provide the support required to reduce the hardship being felt across the sport.

Based on their assessment of need there will be up to £8m available for human and equine hardship issues as follows:

Support for Racing Welfare’s hardship grants of up to £750k

Racing Welfare continue to operate its established hardship grant programme to support staff from across racing facing difficulties and hardship. The numbers of people contacting the charity has increased dramatically in the last few weeks and this funding will allow for the system to continue operating providing for immediate cash support to meet the needs that arise.

The establishment of a Racing Relief Fund of up to £2.5m

The establishment of this fund, co-ordinated by the ROA is designed to meet the welfare needs of horses who may be at risk if owners become unable to support them. The industry’s charity, Retraining of Racehorses, will work alongside others including key members of the Horse Welfare Board to ensure that the welfare needs of horses are given the priority that would be expected by those within and outside the industry.

Jockeys support and hardship scheme up to £900k

Self-employed jockeys, valets and agents unable to earn a wage with the cancellation of racing will be afforded the levels of support available to employed staff across the industry who have been furloughed under the Government scheme. Many jockeys are unable to claim the self- employed support payments introduced and this provides them with immediate relief. This scheme will be co-ordinated by the PJA who will liaise directly with their members on its application.

Filling the furlough and Self Employed Income Support Scheme gap up to £2.79m

The cash-flow implications being faced across the industry by businesses who have furloughed staff, paid them and now await reimbursement and the self-employed who are eligible for SEISS support but will have to wait until June are met through this scheme. The scheme will assist trainers and jockeys who are struggling with cashflow and will be delivered via the NTF and PJA and the respective bodies will inform their members about how they access the scheme.

Racing Industry Accident Benefit Scheme up to £104k

The contributions payable under the industry accident benefit scheme (RIABS) will be met centrally for all those employees who have been furloughed under the Government scheme supporting the welfare of staff, assisting employers and maintaining the capacity of the scheme itself.

Support for British Racing’s charities up to £900k

Racing is reliant on the activities of numerous charities both small and large. They deliver £24m of support to the sport every year and they face immediate loss of income as events are cancelled and discretionary donations reduce. This sum is designed to keep those charities with the most difficulties solvent and allow for a support package to assist them with recovery as the sport and economy returns to normality.

Paul Darling, Chairman of HBLB, said:

“This is a substantial undertaking by the Levy Board in conjunction with the Racing Foundation. The Board has agreed to make available significant sums to racecourses through a combination of measures that will meet the demand for cash in the short-term. Importantly, this approach preserves further Levy funds that we know will be needed for prize money when racing resumes. It is certain that the Levy Board will have a major role at that stage and beyond. Negotiating the many challenges ahead of us all will require exceptional co-operation between every sector. Those challenges can only be met if British racing and the betting industry work in partnership and the Levy Board will play a full and active part in ensuring that this happens.”

Ian Barlow, Chairman of the Racing Foundation, commented:

“The Trustees of the Foundation agreed that during this exceptional time the organisation should not be bound by its normal endowment rules and be prepared to bring forward future years’ expenditure, while utilising some of its capital, to support the emerging needs of the sport. The funding requests we have received are varied and we want to take an approach which can help alleviate the immediate hardship being felt by the sport’s people, horses, businesses and charities. Through close and continued collaboration both organisations will seek to meet the immediate hardship needs presented to us and ensure necessary funds are in place to commence racing and support the sport in the months ahead.”

Notes:

HBLB

The Horserace Betting Levy Board is a statutory body operating in accordance with the provisions of the Betting, Gaming and Lotteries Act 1963 (as amended). Its purpose is to assess and collect monetary contributions from bookmakers via a levy, which it distributes for the improvement of horseracing and breeds of horses, and for the advancement of veterinary science and education. Website www.hblb.org.uk   Twitter: @LevyBoard

Racing Foundation

The Racing Foundation was established in January 2012 by the British Horseracing Authority, the Horsemen’s Group and Racecourse Association, as a charity, to oversee the distribution of funds to charitable causes within racing following the sale of the Tote. It is registered with the Charity Commission under the law of England and Wales (no. 1145297). Its purpose is to make a difference in racing by acting as a catalyst and a funder of improvement. The Trustees of the Racing Foundation are Ian Barlow (Chairman), Linda Bowles, Susannah Gill, Mark Johnston, Louise Kemble and William Rucker. Since inception, the Racing Foundation has granted over £20million to charities associated with the horseracing and Thoroughbred breeding industry in the UK, supporting work in social welfare, education and training, horse welfare, equine science research, and heritage and culture. Its latest strategy commits it to meeting the expectations of our stakeholders which are that it: act more strategically, speed up funds flowing into the industry, raise awareness of its work, consider a narrower focus and be aligned with industry strategy. It provides grant and loan funding, challenges and supports racing charities and ensures its own good processes and governance. Website: www.racingfoundation.co.uk   Twitter:@RacingGrants 

For further information please contact

Alan Delmonte, HBLB Chief Executive, on 07931 701536

Rob Hezel, Racing Foundation Chief Executive, on 07741 035907