Horserace Betting Levy Board

The Horserace Betting Levy Board’s (HBLB) 2020/21 Annual Report, published today here, records in detail the various initiatives put in place by HBLB from April 2020 to mitigate the substantial effects on racing of Covid-19.

The report notes that Levy income for the year was £82.0m, £15.7m lower than in 2019/20, principally due to the suspension of racing throughout the first two months of the Levy year.  

Despite this, HBLB’s total expenditure in the year reached £96.2m, including a significant uplift on normal prize money contributions in the ten months of the Levy year in which racing took place.

The 2020/21 deficit of £14.2m resulted in reserves decreasing from £57.7m on 31 March 2020 to £43.5m on 31 March 2021.  Opening cash balances started the year at £52.7m and reduced to £35.7m at 31 March 2021. 

The report sets out that the HBLB Board approved a series of measures following the Covid-19 outbreak, which included:

• Loans of up to £200,000 per racecourse to assist with liquidity challenges  
• Advance payments to racecourses of grants for raceday services
• The release to racecourses in cash of capital credit balances held by HBLB
• Reimbursement of costs associated with the reconfiguration of racecourses to allow for racing behind closed doors
• Reimbursement of costs for face coverings required on racedays by participants
• Reimbursement of costs incurred in implementing social distancing and testing checkpoints at racedays
• 23% increase in prize money contribution for the first 15 weeks of racing’s resumption in June 2020
• 50% increase in prize money contribution for the period 1 September to 31 December 2020.
• Continuation of significantly enhanced prize money through the whole of 2021 and 2022, which will lead to a further planned deficit in 2021/22

In his statement, Paul Darling OBE QC, who took over as Chair on 1 April 2020, praises the skill and commitment of the HBLB staff in the support of “Racing’s outstanding work in achieving the resumption of fixtures behind closed doors”. He also thanks the Betting industry for rising to the challenge and being  part of a shared endeavour to get racing back on as soon as it was possible to do so, followed by “generous and far-sighted decisions” about restarting payments on account to the Board, with these early  commitments at a very difficult time proving to be “crucial to the Board’s ability to provide funding for the resumption of the fixture programme”.

He also makes a number of observations about challenges facing HBLB, Racing and Betting in the time ahead.

In his Chief Executive’s Statement, Alan Delmonte reports in detail the Covid-related support provided by HBLB, setting out that:

“It is worth noting that the ability to consider giving assistance over such an extended timeframe was only possible because the Board had sufficient funds in reserve. Although over the last decade, the Board’s reserve levels have fluctuated significantly, it has been a particular aim since the Levy reforms of 2017 to ensure proper resources are maintained. The benefits of this prudent policy were apparent at the start of the 2020/21 Levy year when the Board began with reserves of £58 million. The impact of Covid has reinforced that when there are difficult times, the expectation in the sport is that the Levy Board will simply be there, able to help. Holding sufficient reserves provides comfort and security and is a bulwark against unforeseen events.”

The report also records a number of new initiatives by the Board during the year,  including an updated and more rigorous approach to identifying strategic risks and putting in place a comprehensive set of risk mitigations. The Board has also developed a refreshed purpose and vision for the organisation, along with associated “Racing Outcomes” that expenditure grants are designed to pursue.  

 For further information, please contact Alan Delmonte on 07931 701536