01 cover sbi 152.indd - FIFA/CIES International University Network

Thanks to Channel 4, whose racing output is
paid for by the sport to the tune of £3 milion per
year, Jump racing has two hours of terrestrial
broadcasting time every Saturday during the
winter, a regular audience of 1m viewers
each week. Add in nearly 15.7 million
watching the BBC’s coverage of the Grand
National meeting and the cumulative reach
for Jumping each year is in excess of 46
million viewers.
In addition to that, Racing UK (Sky 432, Virgin
536, Corus ntl 411) broadcasts more than 650 live
flat and jump meetings a year, with commentary,
debate and tipping from 30 of the UK’s top
racecourses. The specialist channel is indicative
of the enduring appeal of horse racing. Despite
reverting to independent status following the
departure of Pay TV partner, Setanta, from the UK
in May, it now boasts more than 38,000 residential
subscribers, 5,000 more than it had as a standalone
channel pre-Setanta.
During a recession, racing more than ever
needs the stimulus that the characters of the
jumping game provide. The Levy (the sport’s
revenue from betting) has fallen, due in large
UK Racecourse Revenues
2005
£m
2008
£m
Admissions 98 120
Catering (raceday) 80 100
On-course betting 11 9
Media 42 57
Sponsorship 16 20
Other commercial 51 61
Levy distributions 89 89
Total revenue 387 456
Source: BHA; Racecourse financial statements and BHA
returns; Deloitte estimates.
part to external influences at work, which
Switzer believes need to be challenged. “It’s
down to three factors,” Switzer explains. “Firstly,
there has been an increase in online offshore
betting operators (who are not compelled to
contribute to the Levy). Secondly, there’s the
so-called `high roller effect` - the large punters
who have not been participating as much as in
previous years - and lastly the underlying general
decline in betting.
“Racing really needs to address this, perhaps
by creating new bets where punters do not
require a great knowledge of the sport but gives
the prospect of a low stake-high return.
“The on-course Tote has suffered due to a
fall in the level of average stake, rather than the
number of bets made. People are still going
racing; they are just putting less money on per
bet. Corporate hospitality is down by 20-25%, as
has happened with other sports. Companies are
being more cautious about being seen to make
this kind of spend these days.”
Corporate sales
Racing is certainly not alone in seeing a
downturn in corporate sales, but it is only one
of the instruments racecourses use to generate
their impressive revenue streams. Admissions,
catering, broadcasting, advertising and betting
all add to the pot and the average day’s racing
offers half-a-dozen gilt-edged opportunities
SportBusiness International • No.152 • 12.09 63