Annual Report 2017-18
The owners’ colours displayed on the front cover are some of the many ROA owners’ Jackpot winners from 2017-18. These weekly races boost the winner’s prize-money by £2,000 and are predominately aimed at Class 5 and 6 races to support grassroots racing.
ROA Annual Report 2017-18
The Racehorse Owners Association exists to promote and protect the interests of racehorse owners. It works with other stakeholders in British horseracing to bring about a marked improvement in the overall finances of the sport, to the benefit of owners on every level and to improve conditions for the industry’s workforce. It works to retain existing owners by ensuring its members get the most from their ownership experience and assists in recruiting new owners through stimulating interest among racing’s general fan-base.
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ROA Annual Report 2017-18
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2018-19 Strategic Objectives 1
To work with racecourses and the BHA to ensure that the funding of the sport, with an emphasis on prize-money particularly at grassroots level, is improved through both the 2019 Fixtures and Funding review and 2018 Prize-Money Agreements.
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Implement the Ownership Strategy for British Racing, working together with the Horsemen’s Group, BHA and Racecourses to achieve the goals and objectives.
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To focus on the minimum standards offered by racecourses for owners, both with and without a runner, and promoting the ROA Gold Standard Award.
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To implement and deliver a new database and website for the ROA in order to better communicate and engage with our members and wider industry stakeholders.
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Work collaboratively with racing’s stakeholders, the Government and betting industry to ensure that the Racing Authority delivers against its agreed aims and objectives.
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To continue the development of increased benefits to ROA membership. The programme of events for members, both raceday and non-raceday, to be built-upon increasing the spread of racecourses and venues as well as the packages and opportunities available.
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To work with racing’s stakeholders, Government and the betting industry to create a sustainable financial basis for British Racing, with a focus on the operation of pool betting, resulting in increased returns to racing.
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To ensure that the ROA plays a key role in increasing welfare standards for everyone involved in British racing.
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To continue to ensure that the ROA takes a key role in improving welfare standards for both current and ex-racehorses through the ROA’s Gold Standard initiative, the industry-wide ‘The Horse Comes First’ campaign and the Retraining of Racehorses charity (RoR).
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As one of the key stakeholders within British Racing, work to secure a regulatory regime that is proportionate, fair and brand-enhancing for racing.
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ROA Annual Report 2017-18
2017-18 Strategic Objectives Measurement and achievement against objectives
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To work with racecourses and the BHA to ensure that the funding of the sport, with an emphasis on prize-money, particularly at grassroots level, is improved through both the 2016/17 Fixtures and Funding review and 2018 Prize-Money Agreements. 2018 will see record levels of prize-money, with over £160m on offer. The ROA was key in the formulation of the 2018 Fixture List, and was a driving force in the Fixtures and Funding Review, which has resulted in the introduction of the revised Appearance Money Scheme responsible for significantly enhanced prize-money at grassroots level.
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Developing and implementing the Ownership Strategy for British Racing, working together with the Horsemen’s Group, BHA and RCA to achieve the goals and objectives. To build on the findings of the 2016 National Racehorse Owners Survey and gain further insights into, and understanding of, owners on all tiers of the ownership pyramid. A comprehensive and ambitious Ownership Strategy for British Racing has been devised by the ROA. Further to this, a successful application for funding the delivery of this has been made to the Levy Board. Funding of £860,000 has been awarded to facilitate the implementation of the Strategy. The ROA will continue to lead this initiative.
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Working collaboratively to ensure that the Racing Authority delivers against its agreed aims and objectives, and that the ROA takes on a key role in driving its strategy and representing the views of owners. The ROA is identified as the lead partner in relation to all ownership matters for the industry. The ROA represents the Horsemen’s Group on the Racing Authority, and continues to influence and develop the strategy of the Authority.
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To work together with other key partners and agencies to help create a sustainable financial basis for British racing, with a focus on the operation of pool betting resulting in increased returns to racing. As the deadline of 13 July 2018 approaches, and with it the end of Betfred’s seven-year monopoly of pool betting, the ROA remains fully engaged with racing as the different arrangements across Britain’s racecourses evolve.
ROA Annual Report 2017-18
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To ensure that the ROA takes a key role in increasing welfare standards for both current and ex-racehorses be it through the ROA’s Gold Standard initiative, the industry-wide The Horse Comes First campaign or the Retraining of Racehorses charity (RoR). The ROA was proactive in the implementation of a 25% increase in the financial contribution to the welfare of retired racehorses via entry fees in February. High profile support of the ROA’s commitment to the welfare of ex-racehorses has been provided through the sponsorship of the ROA and Goffs UK National Showing Championships, which took place at the Retraining of Racehorses National Championships staged at Aintree’s International Equestrian Centre in August 2017.
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To focus on the achievement of minimum standards by racecourses for owners with and without a runner, as well as the promotion and celebration of the ROA Gold Standard Award. The criteria for the annual raceday assessments conducted by the ROA on behalf of owners across every racecourse continue to be evolved. 2017/2018 has seen a key focus on the delivery against minimum standards, as well as the celebration of the hotly contested ROA Gold Standard Awards. Racecourses are increasingly focused on the delivery of an enhanced experience, and now proactively seek the views of the ROA in achieving this.
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To implement and deliver a new database and website for the ROA in order to better communicate and engage with our owners and wider industry stakeholders. The extensive project to deliver a new database and website for the ROA is well underway, and remains on target for completion. This will form a key element of the Ownership Strategy project and will be vital in delivering enhanced information and communications to owners.
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To ensure that the ROA takes a key role in increasing welfare standards for jockeys and stable staff. The ROA remains fully committed to improving welfare standards for racing’s people. Racing Welfare was the chosen charity partner for the 2017 ROA Awards. In addition, the ROA was a key contributor to Racing Staff Week in 2017, and this will be further enhanced for 2018. One of the key additional developments for 2018 for the quarterly ROA/Racing Post Jackpot+ races is the addition of a bonus of £500 for the yard of the winning horse (if qualified).
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To continue the development of enhancements to ROA membership. The programme of events for members, both raceday and non-raceday, to be built upon increasing the spread of racecourses and venues as well as the packages and opportunities available. The development of the membership experience is key to the ROA. The membership level has reached a record high of over 8,000, and the ROA represents the interests of over 85% of Registered Owners with horses currently in training. The calendar of events has been enhanced: both geographically and experientially. There is a focus on both informing the membership of issues affecting them, and being informed by the membership of their concerns in order to effect change across the industry.
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As one of the key partners within British Racing, work to secure a regulatory regime that is proportionate, fair and brand-enhancing for racing. The interests of owners are represented at every level throughout the racing industry. The ROA works in partnership with key organisations to ensure not only that the views of owners are heard at every level, but also to ensure that the overall position and integrity of racing is protected, nationally and internationally.
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ROA Annual Report 2017-18
President’s statement Nicholas Cooper
We have to be grateful that this government acknowledges the huge difference between betting on horseracing and gambling on mindless machines. Broadening the scope of the racing levy combined with likely record prize-money levels was always going to make 2018 a good year for British horseracing. Such a pity, then, that our general euphoria would quickly dissipate by the news on Fixed Odds Betting Terminals, with its inevitable effect on betting shop numbers and the consequences for this industry. Not that the government’s decision on FOBTs could have ever been much of a surprise to anybody and, while in future years racing is likely to be hit hard by this, our reliance on gaming machines in betting shops has at times put us in an uncomfortable position. To be seen to support a type of gambling that was socially very dubious simply to maximise our income levels was not morally justifiable. However, we can’t get away from what this might mean for racing in the coming years. If, as the betting industry is predicting, lowering the maximum stakes on FOBTs to £2 will cause the closure of over 3,500 betting shops, racing’s annual income could fall by between £40 and £60 million. The reality is that every time a betting shop closes there is a reduction in those media rights payments so enjoyed by racecourses. These payments have continued to grow over nearly 20 years. Similarly, every time a betting shop closes fewer people will be exposed to the sport of horseracing and fewer people will bet on it. At least the current government shows every indication of wanting to support British racing and, once more, the Secretary of State, Matt Hancock is proving to be a good friend to our industry.
Matt Hancock… a good friend to British racing
His comments immediately after the news on FOBTs that the levy could be extended to capture UK betting on foreign racing sounded very promising. The example of Ireland, in particular, shows what a difference this could make. A lot of British-based punters bet on Irish racing without our levy benefiting, yet Irish racing generates revenue from British racing. Also intriguing was the statement that the review of the rate of levy could be brought forward if the FOBTs initiative looks like having a devastating effect on racing. During this dust-settling period it is understandable that nobody is keen to predict how the future will unravel but we should take some encouragement from the fact there are at least conversations now going on about whether the levy should return to a turnover basis from the current gross profits model. From racing’s standpoint there is a logic to this. Betting margins on horseracing are significantly higher in shops than on-line and it is easy to predict, with shop closures, that online betting volumes will gradually increase at the cost of business in shops. As this happens, so the racing levy, now based on 10% of gross profits, will suffer because of those lower margins.
The government’s decision on FOBTs was not a surprise
A move back to turnover would not only smooth out this difference, but it would create a much truer reflection of all betting operators’ horseracing business. There has also been some early discussion about the possibility of creating a minimum betting margin in an attempt to close the loophole that often occurs when bookmakers, using racing purely as a marketing tool, bet to a near-zero margin, thereby producing virtually nothing for the levy. But, putting all this aside, we should never lose site of the fact that our sport operates on many different levels. People have always enjoyed a simple, harmless flutter on the basis of, say, liking the horse’s name, while there are those who treat the study of horseracing as an intellectual exercise. Whatever else has changed in racing, this truth still holds firm today. And we have to be grateful that it is seen in this government’s attitude as it acknowledges the huge difference between betting on horse racing and gambling on mindless machines.
ROA Annual Report 2017-18
Horseracing levy remains as Levy Board goes
The flow of money from betting operators to racing will continue to be based on a racing levy but it will be collected by the Gambling Commission and distributed by a new Racing Authority.
Industry observers will know how long British racing has campaigned to achieve reform of the levy system to create a sustainable, enforceable, legally sound way of providing a fair return to the sport’s grass roots from the estimated £11 billion of annual betting on British horseracing.
Commission, remain completely watertight with appropriate powers of audit over betting operators’ levy returns.
And now, at last, after many years of endeavour, racing can rest assured that the government is changing the legislation surrounding the levy system so that, from April 2019, the Levy Board will be making way for a new funding structure. Yes, of course, the recent news on FOBTs with its consequences for betting shops and therefore racing, is likely to put a new perspective on racing’s future finances but it should not be allowed to extinguish this very significant development. The flow of money from betting operators to British racing will continue to be based on a racing levy but it will be collected by the Gambling Commission and distributed by a new Racing Authority. Combined with the fact that the levy has now been extended to include bets taken by offshore betting operators (for those bets struck by British-based punters on British horseracing) and you can see what progress our industry has made under this government and its predecessor. The Racing Authority is made up of equal representation from the Horsemen’s Group, the Racecourse Association and the British Horseracing Authority and its constitution underpinned by a tripartite agreement. Further consolidation of the board has come with Sir Hugh Robertson joining as the independent chairman. The statutory system for collection and enforcement will, under the Gambling
Unlike the Levy Board, the Racing Authority will have no direct input from the government. The new system will look to improve efficiency and create cost savings as the functions of the Levy Board are transferred over to the Racing Authority. Most importantly, it will also remove much of the confrontational element that has so often sullied the relationship between the racing and betting industries. With this in mind, a Betting Liaison Group will be set up as a sub-committee to the Racing Authority. The group will use data collected by betting operators, racecourses and media rights holders to influence decisions made on race planning and fixture issues with the aim of increasing betting on British racing. Already the current annual levy is indicating a substantial increase thanks to the annexation of offshore betting.
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Based on a 10% deduction on most betting operators’ gross win, levy income is forecast to be over £90m for the fiscal year 17/18, a near-40% increase on the previous year’s figure of £65m (which included payments from Authorised Betting Partners). Add to this the huge growth in racecourse media rights payments and racing might have been looking at a future annual income of £250m had it not been the government’s recent decision on FOBTs with its inevitable effect on betting shops. We also have to remember the Racing Authority will be required to take over responsibility for various grants now covered by the Levy Board. These encompass the advancement of veterinary science and education and the improvement of non-thoroughbred breeds of horses. But none of this detracts from the big picture in which the lion’s share of the levy funding will continue to be targeted on prize-money and appearance money ‘for the improvement of racing.’ Sir Hugh Robertson takes on the position of Racing Authority independent chairman
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ROA Annual Report 2017-18
How will Brexit effect racing and bloodstock? Not only does Brexit raise major concerns with the transport of horses across European borders, but it has implications for the staff who travel with them. British racing and bloodstock is highly motivated in responding to the enormous challenge posed by Brexit. Any restrictions that inhibit the free movement of thoroughbreds and racing staff throughout Europe would have potentially disastrous results as Brexit challenges many of the fundamentals in transporting horses from country to country that we have always taken for granted. You only have to consider the number of horses that travel between the UK, Ireland and France to appreciate the complications that would arise if EU law, post Brexit, insisted that strong border controls were imposed. Worst still would be the potential effect on bloodstock if the easy movement of yearlings, foals and mares to the sales was frustrated by increasing red tape. The tripartite agreement between the UK, Ireland and France, put together in the 1960s, facilitates the movement of around 25,000 thoroughbreds a year. But it appears that Brussels is currently taking the view that this arrangement will be negated when the UK comes out of the Customs’ Union. British racing has had a Brexit Steering Group in operation for some time. Its agenda comprises horse movement and transport, animal health and welfare, movement of people and political communications. The group has been working with our Irish and French counterparts and has the support of two important government departments in Defra and DCMS. Animal health and welfare is crucial to the free movement of thoroughbreds. Any ruling that, for example, causes a horse to remain in its box for so long a period that its health may be affected should not be condoned by any civilised nation, let alone the EU.
Record prize-money predicted for 2018 Predictions of a £160m prize-money money total in 2018 was a good way for racehorse owners to start the year. Added to that we had news of the introduction of a new appearance money scheme aimed at benefiting the lower tiers of racing, meaning that almost all races would be run for a minimum total prize of £6,000. 2014 £123m 2015 £132m 2016 £137.5m
It is crucial that stable staff are included on the government’s skilled worker list post-Brexit
2017 £142.5m 2018 £160m*
The GB Brexit Group recently met with the Defra minister Lord Gardiner and followed up with key Defra policy officials. This activity has progressed the cross-industry proposal for High Health Horse (HHH) status in the new EU Animal Health law. The aim is to establish a separate category of HHH status for thoroughbred breeding and racing in this new European law. Not only does Brexit raise major concerns with the transport of horses across European borders, but it has implications for the staff who travel with them. Smoothing the passage for horses without making similar provisions for their carers would be an obvious nonsense. Racing’s workforce is high on racing’s Brexit agenda. Even today, racing has a severe staffing shortage and this could turn into a crisis if exacerbated by our leaving the EU. It is therefore important that the British government is persuaded to include stable staff on their skilled worker list when it is time to decide on who will be able to work in the UK after we come out of Europe. With horses requiring passports and, often, vets’ certificates, much of the infrastructure is in place to help racing with the Brexit problem. Even allowing for the vast Brexit workload in which all areas of government administration is now immersed, it is reassuring to know that racing’s problems are being addressed.
*estimated
This forecast prize-money/appearance money figure is an all-time high and represents an increase over last year of 12%. It comes on the back of increased prize-money contributions from both the Levy Board and racecourses, both of which are now benefiting from higher bookmaker contributions. And, while our general enthusiasm for racing’s finances must now be tempered by the likely closure of a significant number of betting shops, we must remain positive. As already stated, the levy is now doing much better as a result of being able to capture a gross profits percentage on those online bets made by British-based punters but being processed off-shore. At the same time, racecourse media rights money, already exceeding Levy yield, will rise still higher when the new SIS contract comes on stream, at least until the effect of the new FOBTs legislation begins to bite. The new appearance money scheme means that every horse that finishes in the first eight for qualifying races now collects, either through prize-money for finishing in the first four or through appearance money for finishing between fifth and eighth. With the exception of maiden and novice races, on the Flat and over hurdles, appearance money is paid in virtually all Class 4, 5 and 6 Flat races and Class 3, 4 and 5 jump events.
ROA Annual Report 2017-18
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We hope Is there a light at the end the improved of the tunnel for UK pool economics of betting? owning horses will translate both into Liquidity of tote an increase in the pools is the name number of horses of the game. in training and Whatever the new arrangement brings, As we approach the time when Betfred’s an incentive for it is unlikely to lead to all racecourses pool betting monopoly ends and the operating under the same pool betting fledgling racecourse operation Britbet owners to stay in prepares to stretch its wings, the overall banner. There was an assumption that Ascot would be doing their own thing, but picture for pool betting in this country even here we learn there are now fruitful is looking more hopeful than it did in the sport longer. discussions going on with Alizeti. Our the spring. Britbet brings a new era for pool betting
The trick underlying the new scheme is that racecourses have been given the ability to ‘unlock’ extra Levy Board funding by investing their own money and substantially increasing overall race values. As a result, a large proportion of races run in 2018 will have an advertised total race value of at least £6,000. It is also reassuring that the old practice of racecourses ‘dumbing down’ their race programme to lessen their minimum prize-money liability can no longer be pursued. Now, the average level of a racecourse’s race-programme within a three month period must compare favourably with that of their previous year’s race-programme. The appearance money initiatives are designed to create a virtuous circle, with benefits trickling down to trainers, jockeys and stable staff. Notwithstanding the future fallout from the FOBTs decision, we hope the improved economics of owning horses will translate both into an increase in the number of horses in training and an incentive for owners to stay in the sport longer. It also means the creation of a better racing and betting product where fields of eight runners or more increase each-way betting and more competitive racing encourages greater engagement with the sport.
Britbet, a consortium made up of 55 racecourses, certainly looks an exciting innovation, but it could never deliver a total package for pool betting without significant access to the off-course market. This may now come, however, as a result of on-going discussions between Britbet and the recently-formed Alizeti consortium. Alizeti is a new company largely made up of owners and breeders. It completed the purchase of a 25% stake in Betfred’s Tote business in May, with an option to obtain the remaining 75% in the third year. The deal is said to be worth approximately £150m. As liquidity of tote pools is the name of the game, we must hope that Britbet and the Alizeti/Betfred partnership end up working very closely together for their mutual benefit. Although Britbet has an established platform for their business from day one, racecourse pools are often quite small and it would be very difficult for Britbet to achieve any meaningful traction in the off-course market without having access to betting shops. It is here that the Betfred/Alizeti consortium have a head start. Betfred, through Tote Direct, has a deal in place to sell pool bets through betting shops and the new consortium will be primarily concerned with trying to establish a much bigger off-course market. In the longer term, however, this is more likely to be achieved through the application of sophisticated on-line marketing techniques and through links with overseas pools.
flagship racecourse also plans a Hong Kong dimension where four days of the royal meeting will be simulcast.
Chester and Bangor will go it alone for the time being, continuing with their own on-course arrangements, while Chelmsford, owned by Betfred, will no doubt remain with that company’s existing Tote operation which is of course linked with Alizeti. Crucial within all this will be the creation of new types of pool bets and the levels at which the take-out from the pool is set from bet to bet. While many on-course punters are, within reason, not that sensitive to betting ‘value’, many off-course punters are very value conscious. Winning over a share of the sophisticated punter market could be one of the keys to success for pool betting in this country. Not only must the high-staking sector of the market see evidence that pool betting can offer good value, but they must also be attracted by the size of stake they can place. As this new era for pool betting begins to unfold, it will be fascinating to see if Britain’s traditional fixed odds punter can ever be sufficiently enticed away from the type of betting they have always preferred. Achieving a significant increase on pool betting’s current 5% of the horserace betting market is going to be difficult but, now with the various factions talking, there is at least a fighting chance.
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ROA Annual Report 2017-18
Chief Executive’s Report Charlie Liverton
An Industry Ownership Strategy is being led by the ROA, with the full support of all of racing’s stakeholders. It has been an enormously important year for the ROA, with key developments and achievements delivered for owners both on and off the racecourse. At the same time, owners’ requirements continue to be recognised and their voices heard on a diverse range of subjects. The work of the ROA has been focused on the improvement of our members’ experience on many levels, satisfying both tactical and strategic aims. A key achievement for the ROA as an organisation has been to exceed the figure of 8,000 members, which is a record. Progress has also been significant in the following areas:
Industry Ownership Strategy In 2016, the ROA / BHA National Racehorse Ownership Survey helped the industry understand the ownership journey from beginning to end and many of the outputs from this are now being acted upon.
Registered Owners with horses in training 2017 8,062 2016 7,947 2015 7,892 2014 7,931 2013 7,968 Average over the course of the year
One of the key objectives of the Industry’s 2015 Strategy for Growth was to see an increase in the number of horses in training through the retention of existing
owners and the enhancement of their experience, while stimulating an increase in the number of new owners. To this end, an Industry Ownership Strategy has been drawn up. It is being led by the ROA, with the full support of all of racing’s stakeholders and, I am delighted to say, a grant of £860,000 has been awarded from the Levy Board to finance the project. Wide-ranging and ambitious, the project has vital industry-wide support. As it progresses and evolves, we will ensure regular updates are provided. It will be underpinned by performance metrics and objectives with one of the key measurements being a repeat of the 2015 National Racehorse Owners Survey. The scope and ambitions of the project are set out in more detail within this Annual Report (see pages 12 & 13).
Horsemen’s Group The Horsemen’s Group continues to work supportively and collaboratively on a wide range of issues which impact its stakeholders, in particular the Fixtures and Funding process. There is also broad representation on other industry bodies and committees from its members. This ensures that the views and interests of Horsemen are well represented across the industry.
Membership Reaching a membership of over 8,000 members represents a remarkable milestone for the ROA. There has been an increase in members of over 660 in the past two years.
ROA membership
Racing Authority
2017 8,082
The momentum around the creation of the Racing Authority continues to build as the ROA plays a key role in its development.
2015 7,424
Sir Hugh Robertson has been appointed as Chairman of the authority. With a Shadow Racing Authority now in operation, Sir Hugh has already started in his new role in preparation for the official handover from the Levy Board on April 1, 2019. With the support of the RCA and BHA, as well as Government, the Members Agreement has been signed, and we look forward to working closely with the team at the Levy Board during the transition period. I am delighted to represent owners as one of the Horsemen Group’s delegates on the Authority.
2016 7,734
2014 7,213 2013 7,227 The attainment of this objective has been achieved in parallel with enhanced engagement with members. Indeed, ROA members continue to be very active and engaged with the sport and the issues effecting the industry. We remain focused on providing member-events both on and off the racecourse to achieve as much interaction with you as possible. This has been accomplished only as a result of the exceptional service delivered by the
ROA Annual Report 2017-18
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The findings of the National Racehorse Owners Survey showed how costs and prize-money were the primary reasons for owners to either lapse their involvement or not invest further in the sport. ROA Membership Team, and they should be congratulated as they continue to look after the needs of an ever-growing membership, while providing information and support at a personal level. The past year has also seen the continuation of the international relationships with the AIRO (Association of Irish Racecourse Owners), and France Galop through the provision of access to facilities at the Punchestown Festival and the Deauville Festival and we will continue to enjoy close ties with them.
It was encouraging to see changes within the Roll of Honour of the 12 Gold Standard racecourses. Choosing which courses receive this accolade becomes increasingly difficult. This healthy competition among racecourses reflects the improvements seen in the race-day experience for owners, while also showing that work with individual racecourses and the Racecourse Association continues to deliver enhancements.
As the range and variety of events continues to grow so we continue to welcome feedback from members both in terms of events attended and interest in additional events.
We urge members to complete the ROA’s online raceday feedback form following their racecourse visits as owners with a runner. This anonymous feedback is shared with racecourses in order to help focus attention on the delivery of enhancements and to highlight areas requiring improvement.
Owners’ Raceday Experience
Increased Prize-Money
This key element of the Ownership Strategy dovetails with the aims and objectives of the ROA Raceday Committee. The members of the Raceday Committee will have again visited all 60 racecourses throughout 2018 to assess the quality of the raceday experience delivered by racecourses for owners.
Prize-money in 2017 was £143m, an increase of £5m on 2016. A key outcome of the Fixtures and Funding process was the development of vital and significant enhancements to prize-money at the mid and lower tiers with the implementation of the Appearance Money Scheme.
This collaborative process continues to evolve. Racecourses are encouraged to consult with the ROA on any proposed changes to the raceday experience. There are some excellent illustrations where improvements have been achieved through working in partnership with the courses and these have been recorded by both the ROA assessor and by members providing feedback following race-day visits.
The Appearance Money Scheme was activated on January 1, 2018, ensuring owners of horses running down to eighth place receive up to £350 on the Flat, and £450 over Jumps in Classes 3-5 (Jumps) and Classes 4-6 (Flat). There are certain exclusions from the scheme, including Maiden and Novice races. The findings of the National Racehorse Owners Survey showed how costs and prize-money were the primary reasons for owners to either lapse their involvement
or not invest further in the sport. The new Appearance Money Scheme should, therefore, help to alleviate those costs and reward owners whose horses race at grassroots level. While this is a positive start, there must be a continued effort from all in the industry to focus on securing more prize-money at these lower levels for the benefit of all horsemen. The Fixtures and Funding process has given some much needed stability to the Fixture List with agreements having been made for a three-year period.
Exciting year ahead for the ROA The next 12 months will be an exciting year for the ROA. The delivery of the Ownership Strategy, with a dedicated team leading the project, will look to protect the long-term interests of existing owners while promoting the sport that we love to a new audience. In parallel with this, the ROA team will continue to ensure members are looked after both on and off the racecourse, while ensuring the interests of owners are represented at the highest level in all areas that impact on the ownership experience. My thanks go to the ROA team for all of their help and support over the past 12 months, and in particular to the Board who have helped to ensure that the objectives of the association continue to be met and enhanced.
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ROA Annual Report 2017-18
Ownership Strategy for British Racing For the first time, significant industry funds have been committed to the promotion and marketing of ownership. Chief Executive Charlie Liverton explains how the ROA will lead this exciting and far-reaching project, the main aim of which is to increase the number of racehorse owners for the benefit of the whole racing industry. In 2016, the ROA and BHA undertook an owners’ survey with the aim of finding a consistent way to measure the experience of owning a racehorse and to understand the attitudes and motives of owners, both current and lapsed. Since the results have been unveiled, the ROA has led the development of an Ownership Strategy for British Racing. This process followed the industry’s launch in 2015 of the Strategy for Growth, one of the key aims of which was to achieve an increase of 1,000 in the number of horses in training by 2020. The strategy has focused on delivering this through the retention of existing owners, through the enhancement of their experience and through the growth of new owners. To this end, we are delighted to report a Levy Board funding application has been successful. It means, for the first time, significant industry funds have been committed to focus on the delivery of an Ownership Strategy for British Racing to support the Industry’s Strategy for Growth.
Background and Process
Ownership Promotion
The development of a collaborative and inclusive Ownership Strategy for British Racing builds on the findings of the 2016 National Racehorse Owners Survey which provided comprehensive data and key insights into owners and their experiences.
Investment in the development of a united identity for ownership will open the door to further simplification and streamlining of the ownership journey.
Our project highlights the continued importance of the role of owners within racing. It will give owners an enhanced brand and identity, emphasising their role as supporters of the sport in so many different ways. Four work streams have been developed within the framework of the Ownership Strategy for British Racing: ● ● ● ●
Retention Ownership Promotion Trainers Racecourses
Retention The project focuses on the key elements of retention of existing owners. Trying to “sell” the proposition of racehorse ownership is futile without addressing the issues affecting current owners and targeting those points that drive the churn rate of owners. ROA members typically remain owners for an average of eight years against five years for non-members. Existing owners, and particularly ROA members, are seen as one of the industry’s best sales teams in recruiting new owners.
There is a concern that British racehorse ownership currently lacks a coherent identity and that the ownership journey is now made up of contact with a number of disparate organisations, with unclear guidance and information being generated by each. Unified communications, presented under a consistent identity, will make ownership more accessible and welcoming to both existing and new owners. As we tackle the issues currently affecting ownership, there will be an increasing focus on the welcome that is received by owners to the sport and the on-going support they receive. These initiatives will build on the development of the identity for ownership, using information flowing from the project. A Welcome Pack is being developed using the increasing knowledge we gain of the ownership experience. The Welcome Pack will acknowledge the investment owners make in terms of financial expenditure, emotion and time. It will also ensure that communications are simplified and streamlined and give us a greater understanding of customer-expectation. These key elements not only help us to create an identifiable brand for British racehorse ownership, but also allow us to build a suitable foundation for the recruitment for new owners.
This work-stream develops the valuable insights gained through the National Racehorse Owners Survey with regard to owners’ experiences and expectations. A 2017 survey undertaken by Thoroughbred Owner Breeder magazine also provided us with helpful information on owners’ consumer behaviour outside of racing. Increase focus on the welcome that is received by owners to the sport
ROA Annual Report 2017-18
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Goals Going the extra furlong for racecourses experience
Trainers
Racecourses
A key element of the project relating to trainers is about the enhancement of the service and the improvement of information provided by trainers for owners.
Of those lapsed owners who responded to the ROA/BHA National Racehorse Owners Survey, 44% of them cited the racecourse experience as a key factor in their decision to leave the sport.
The development of a benchmarking website to assist owners with the selection of a trainer will provide an important tool. It will run in parallel with Inthepaddock.co.uk which already carries out a similar function for syndicate ownership.
This work-stream addresses owners’ racecourse experience on a number of levels. There will be a focus on creating minimum racecourse standards and assisting courses to deliver these, while the Gold Standard will be further developed as a means of pursuing excellence.
The project will also assist with the drive to provide enhanced communications and marketing support for owners. “Not a good trainer experience” was cited by 29% of owners as a reason for their departure from the sport. Improved communication and better use of information technology will help to bring this percentage down.
The ROA is already working with the RCA on their RCA Year of Service initiative – a programme designed to ensure exceptional customer service from all staff at racecourses. The significance of the ownership experience within this will be further emphasised as our communication with racecourses improves and becomes more structured. This work-stream will also examine the need to differentiate the racecourse experience according to ownership involvement. We recognise that owners do not solely go racing with a runner and their experience on these occasions should also be enhanced.
Help trainers provide enhanced communications
The strategy and budget set out for the project is designed to build the foundations to achieve the key aims of improving retention of existing owners, and increasing the numbers of horses in training, while developing the brand to facilitate the promotion of racehorse ownership to a new audience. Within these headline aims, the project overall has targets in the following areas: ● Increase average length of ownership tenure. ● Improve the ownership experience both on and off the racecourse. ● Increase ownership’s Net Promoter Score (measures willingness of customers to recommend products). ● Reduce the percentage of owners citing racecourses and trainers as the reason they have lapsed their ownership. ● “Future proof ownership” and increase the appeal and awareness to a wider demographic. ● Target opportunities to enhance commercial returns through third-party partnerships. ● Improve retention rates within existing ownership population. A key tool for the measurement of these objectives will be the commissioning of the next National Racehorse Owners’ Survey.
In parallel with delivering improvements to the racecourse experience for owners, it is important to address the issue of education regarding the role of owners across the whole industry. Since owners are the lifeblood of the sport, an understanding of their role, motivations and importance should be part of any training programme. This will facilitate the development of structured training modules to be rolled out across the industry and is closely aligned with the delivery of an improved on-course experience as key elements involve the education of racecourse staff aligned with the RCA Year of Service.
Increase average length of ownership tenure
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ROA Annual Report 2017-18
The racing industry in numbers 2017 Prize-money Pyramid Prize-money won
£100,000 +
209 0.9%
£50,000 +
No. of Horses %
354 2.3%
£30,000 +
584 4.7%
£15,000 +
1,574 11%
£7,500 +
3.066 23.5%
£2,500 +
4,835 43.2%
£1 +
7,040 71.8%
£0
6,954 28.3%
This pyramid is based on the number of individual horses who ran in the UK in 2017 and the percentage of those horses who won prize-money at varying levels. As shown, 28.3% (6,954) of the horses that ran won no prize-money at all; 71.8% won £1 or more and 43.2% won £2,500 or more. The same principle continues, until, at the top of the scale, 0.9% of horses won £100,000 or more.
Individual runners
Scheduled fixtures
2013
2014
2015
2016
2017
Flat
9,588
9,580
9,726
9,996
10,376
Jump
7,702
7,393
7,542
7,550
Dual
1,216
1,104
1,047
All
18,506
18,077
18,315
2013
2014
2015
2016
2017
Flat (AWT)
307
296
307
317
326
7,593
Flat Turf
581
584
575
572
571
994
978
Jump
576
584
589
594
600
18,540
18,947
All
1,464
1,464
1,471
1,483
1,497
Average number of runs per horse
Races with 8 (or more) runners
2013
2014
2015
2016
2017
2013 %
2014 %
2015 %
2016 %
2017 %
Flat
5.32
5.27
5.24
5.24
5.2
Flat
64.8
63.9
65.9
67.9
69
Jump
3.74
3.67
3.68
3.75
3.73
Jump
60.3
51.3
54.8
57.2
53
All
4.91
4.84
4.81
4.83
4.8
All
63.1
59.2
61.7
63.9
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ROA ROA Annual Annual Report Report 2017-18 2017-18
Farewell to three ROA board members
00 15
Stephen Smith, Justin Wadham and Lynn Douglas step down from the ROA Board this July
The 15 ROA Board members are greatly deserving of my gratitude for all the help they have provided over the past year. Their passion for the sport of horseracing has persuaded them to devote their valuable time and expertise to making this association what it is.
racing shone through. It was indeed fortunate for the ROA during this past decade that we had someone who possessed the application to absorb the contents of complicated committee papers and the eloquence to make the owner’s voice heard and appreciated within this complex area of racing administration.
Their wise counsel dictates policy and direction for the ROA executive and helps provide a route through the often difficult path of racing politics. At the same time, because they have all experienced the ups and downs of being racehorse owners, they have a first-hand appreciation of what the association’s membership requires and how best to achieve it.
A similar comment can be made of Justin Wadham for different reasons. As a Newmarket-based solicitor with a profound knowledge of racing and bloodstock, Justin has proved to be invaluable to the ROA during this time, providing wise counsel on a wide range of subjects and particularly those requiring a legal mind.
Many of them have extended their respective roles by going on to sit on various ROA and racing committees, gaining expertise within these specialised fields while ensuring the owner’s unique contribution to the sport is acknowledged.
Over the years, Justin has been an open critic of some of the practices at bloodstock sales and it is not surprising that his final words as an ROA Board member alluded to this when he said: “I believe we should have a situation where people can buy horses with full trust and confidence in the process.”
It is against this background that we say farewell to three of our Board members this July – Stephen Smith, who steps down after a 11-year stint, Justin Wadham, who has been on the Board for 10 years, and Lynn Douglas, who joined three years ago. Stephen’s specialist subject throughout those many years was fixtures and race-planning where his intellectual approach to
Lynn Douglas leaves the Board with our gratitude for the work she has carried out on the Gold Standard Committee, for often championing the cause of syndicate owners and for the passion she has shown in expressing concern for the welfare of racehorses. Charlie Liverton
Racing Admin upgrades make life easier for owners The administration processes that support racehorse ownership were upgraded in 2017 with a phased package of reforms introduced by the British Horseracing Authority. The first development, introduced last spring, was the streamlining of ownership types to five categories; sole, company, partnership, syndicate and racing club. The BHA then announced the rationalisation and re-alignment of registration fees. Owners were informed that fees for colours, authority to act and VAT would be aligned to one payment date. This has streamlined the process, removed the need for separate charges and reduced the amount of paper and invoices owners receive. The removal of some fees is expected to reduce owners’ overall charges by £140,000 per annum. The racing industry’s entire database has undergone a phased modernisation, and at the end of August the new Racing Admin website, www2.racingadmin.co.uk, became accessible to owners. The launch followed several months of testing with roadshows and webinars allowing owners to feedback on the functionality of the site.
The Racing Admin website allows owners to set up and maintain their ownerships online and also allows free access to fixture and race information which had previously incurred a daily charge. Newly registering owners can choose one of two racing packages which wrap up the registration fees to become an owner, set up authority to act, colours and VAT registration into one payment, as required. The functionality of the Racing Admin website continues to evolve, providing resources for owners and a communications hub. All owner registrations are now being made online, which has the added advantage of facilitating improved communication between the industry and its participants and we look forward to further enhancements in the coming months. Sadie Evans
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ROA Annual Report 2017-18
How the ROA Rewards Ownership
Membership figures are at their highest since the association’s inception in 1945, topping over 8,000 in 2017. Small wonder when members enjoy such a wealth of benefits…
Free racecourse admission
ROA / SIS Owner Sponsorship scheme
Owners’ Jackpot scheme
The ROA’s free racecourse admission schemes continue to be our most popular benefit. With four schemes in operation, all members can enjoy free racing.
The ROA sponsorship scheme remains one of the association’s most significant benefits, enabling ROA members to register for VAT, to recover on average £4,000 a year per horse.
The ROA’s ever-popular Owners Jackpot Scheme was introduced in 2014 to help support racing at grassroots level.
As well as the long-standing Racecourse Badge Scheme for Owners, members gain free entry with schemes from Jockey Club Racecourses and ARC, regardless of whether they currently have a horse in training. Members in Scotland only need to have a 5% share of a horse trained in Scotland to qualify for the Scottish Badge Scheme. This applies to 99% of Scottish meetings.
The scheme has covered over 1,700 horses in training in the past year including top class horses such as Cracksman, The Black Princess, Blond Me and Clyne. During the year, the scheme has allowed members to reclaim over £6.8m in VAT on ownership costs.
All ROA members are also eligible for free entry, with a guest, to most fixtures at Newbury. Newbury, a great place for ROA members
A joint promotion between the ROA and Racing Post, the scheme focuses on horses racing in Class 4, 5 and 6 races. Since the scheme begain, it has paid out more than £400,000 and in 2018 it will give members the opportunity to share in bonuses totalling £100,000. Winning members’ racing colours feature on this year’s Annual Report cover. Each week one race is selected for a £2,000 bonus and, assuming the winning horse is owned by a majority of ROA members, the extra payment is made on top of the race’s prize-money. If the race is won by a horse who is not owned by an ROA member, the bonus is rolled on to an additional race later in the year. The chosen races are staged only at courses which have signed up to the racing industry’s prize-money agreement but, from May, these events have also been required to have a minimum prize fund of £6,500 per contest.
Cracksman and Frankie Dettori riding under the ROA/SIS sponsorship scheme
Member Simon Haydon makes an Owners Jackpot presentation to jockey Luke Morris
The scheme evolves each year and now, once a quarter, one of the races will be designated as a Jackpot+ event and will provide £500 to the winning trainer’s yard and £250 towards travel expenses for every qualifying ROA-owned runner in the Jackpot race. Also, as part of the Jackpot+ package, there will be ROA hospitality available for members with or without a runner. This includes a complimentary drink and light refreshments including Appearance Money Scheme and Race Incentive Fund.
ROA Annual Report 2017-18
Third party liability insurance The ROA members’ scheme for third party liability insurance is arranged through Weatherbys Hamilton LLP. It provides cover of up to £10 million of liability, giving peace of mind for members in the event their racehorse causes damage or injury to a third party or their property. The scheme exists as owners are currently vulnerable to claims even when their horse is in someone else’s possession. The law may define a racehorse’s owner as any individual who has a financial interest in that horse, so all members of a syndicate should be mindful of their potential exposure to this risk.
Member events The ROA continues to expand and enhance its programme of social events and in 2017-18 there were nearly 60 opportunities available for members to attend one of these occasions. They continue to prove extremely popular, including presence at the opening day of the Grand National Festival (featuring a course walk), at Royal Ascot, Glorious Goodwood, the opening day of the York Ebor meeting and British Champions Day. But, as usual, the Cheltenham Festival facility was top of the list for ROA members, selling out over a month before the meeting even commenced, while ROA facilities at most of the other Cheltenham fixtures were also very well attended. Away from the racecourse, we again ran our Banstead Manor and Cheveley Park Stud visit, which last year included lunch and a tour of the world-famous Tattersalls Sales house. We also hosted a trip to Dalham Hall Stud, which stands Derby winner Golden Horn.
Horse rearing in the paddock shows why third party insurance is important for racehorse owners
Frankel and friends enjoying their day at Banstead Manor Stud
17
We introduced new and exclusive trips to ‘Breakfast with the Stars’ at Epsom and visits to the yards of Mark Johnston and John Best. Added to these were trips to Goffs Sales and to a ‘double-header’ at Newmarket to visit the Equine Hospital and Sir Mark Prescott’s yard. During the course of the year, the ROA staff continued to travel around the country for our popular regional meetings, allowing local members the chance to put their questions to the ROA team at Hereford, Hexham, Wetherby, Brighton, Kempton and Musselburgh. These sat alongside our programme of Ownership Matters roadshows, with these social networking evenings taking place at Harrogate, Hamilton, London, Newmarket, Edinburgh and Reigate. The ROA concluded the year in its usual style – with the ever-glamorous ROA Horseracing Awards and Dinner, at the InterContinental Hotel, Park Lane, London, attended by over 350 people. The overall winners on the night were Owner of the Year Khalid Abdullah, and his wonderful racemare and Horse of the Year Enable.
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ROA Annual Report 2017-18
How the ROA Rewards Ownership continued Gold Standard Awards The ROA Gold Standard Award was introduced in 2006 to recognize those racecourses offering the best raceday experience for owners with a runner on the day. Since 2015, the Award has been made increasingly competitive, with the number of racecourses receiving the coveted accolade capped at 12 – six in each of the Large and Small Racecourse categories. The ROA Raceday Committee is comprised of both Board and staff members and, between January and October, each year they will visit all 60 racecourses at least once. A detailed assessment is carried out (a blank copy of the assessment sheet is available to view on the ROA website), with the pertinent points being fed back to the racecourse management to encourage improvement and innovation. Throughout the year, ROA members are also contributing to the debate by completing a short online racecourse feedback questionnaire. It takes just a few minutes and one form is selected at random each month to win the member a £50 John Lewis gift card. The committee meets in October to amalgamate all of its reports and the ROA-member feedback. Then, in a hotly-debated session, Committee members decide on that year’s Gold Standard Award recipients.
Cheltenham’s Ian Renton and Carey Buckler receive the 2017 Large Racecourse of the Year Award from Paul Duffy
The 12 racecourses are put forward for the Large and Small Racecourse of the Year title, which is announced at the ROA’s Awards dinner in December. Last year Bangor-on-Dee and Musselburgh were joint winners of the Small Racecourse of the Year accolade as the judges could not split them. Large Racecourse nominees: Ascot, Ayr, Cheltenham, Chester, Haydock Park, York. 2017 Large Racecourse of the Year:
Cheltenham Small Racecourses nominees: Bangor-on-Dee, Bath, Hamilton Park, Market Rasen, Musselburgh, Sedgefield. 2017 Small Racecourse of the Year:
Bangor-on-Dee / Musselburgh ROA member feedback is also responsible for the nominees for the Racecourse Association’s Owner Experience Award at their annual Showcase Awards. In 2017 the nominees were Bangor-on-Dee, Cheltenham, Hamilton Park, Newcastle and Redcar, with Hamilton Park crowned overall winner.
Musselburgh (top) and Bangor racecourses, joint winners of the 2017 Small Racecourse of the Year Award
ROA Annual Report 2017-18
In Short… Discounts on BHA registration fees: Members continue to enjoy a 20% discount on most BHA registration fees. This saves, on average, £75 per year. Thoroughbred Owner Breeder: Published jointly by the ROA and Thoroughbred Breeders Association, Thoroughbred Owner Breeder magazine continues to go from strength to strength under editor Edward Rosenthal. Owners’ car parking label: The ROA priority car parking label provides free access to the Owners and Trainers car parking at almost every racing fixture. International hospitality reciprocation: Once again, collaboration with the Association of Irish Racehorse Owners and France Galop has enabled members to enjoy exclusive hospitality at the Punchestown Festival, Pretty Polly Stakes day at The Curragh, and at the Galway and Deauville Festivals. Details of this year’s programme of reciprocal racedays can be found in the Events section at roa.co.uk
Raceday Curtailment Scheme: We know that the abandonment of meetings during racing is extremely frustrating for owners, who not only face the disappointment of their horse not being able to run, but also have to pick up the costs of their horse’s transport to the races. To help offset owners’ costs in these situations, the ROA Raceday Curtailment Scheme provides a payment of £100 to a member or members who own at least 51% of any horse who had been due to run at a meeting that is abandoned for the day after the first race has taken place.
Member discounts: A wide range of useful discounts are available. They relate to the Racing Post, Racing UK, holidays with Racing Breaks, discounted admission to Palace House National Heritage Centre for Horseracing & Sporting Art and hospitality with Ascot Racecourse.
Assistance with owner-trainer disputes: The ROA continues to assist with owner-trainer issues and disputes. Impartial guidance is given in confidence and members are, when required, provided with details of legal advisers with racing-related experience. ROA-branded Racing Post desk calendar: An ROA-branded Racing Post desk calendar was once again sent to members. The Tack Room restaurant at Palace House
The popular Thoroughbred Owner Breeder magazine
19
Members could take advantage of reciprocal hospitality with France Galop
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ROA Annual Report 2017-18
Board Members
Nicholas Cooper
CBE (President) ROA Board details: Co-opted 2014. Appointed Director 2015. Appointed President 2016. Current Professional Position: Founded Stirling Insurance Group in 1994. Retired after its acquisition in 2015. Best horses owned: Eulogy, I’m Supposin, Wannabe Posh, Tyranny, Charmix, Fallen Star. Current trainers: Harry Fry. Committees: BHA Member’s Committee, Horsemen’s Group. My view: “The importance of continuing to improve racecourse facilities for owners on race-days is paramount.”
Alan Pickering
CBE (Vice President) ROA Board details: Elected 2011. Vice President 2015. Current business position: Chairman, BESTrustees plc. Previous positions and companies: Partner, Watson Wyatt. Years as owner: 25. Current trainers: Ed Vaughan. Horses owned: Flamborough Breeze, Primrose Valley, Miss Fridaythorpe, Absent Lady, Mr Velocity, Barons Pitt, Convivial Spirit, Honorable Endeavour, Miss Tikitiboo, Bobal Girl, Cosmic Destiny, Robin Hoods Bay, Whitby Jet, Scarborough Lily, Oliver’s Mount, Rosedale Topping, North Bay Sunrise, Surfa Rosa and Blaze. Committees: BHA Rules Committee, ROA Raceday Committee (Chair). My view: “While increasing the togetherness within racing, I think that, by leveraging the unique relationships between horse and human, we can use racing to help heal our fractured society. Through community outreach we can create fulfilling leisure activities and career opportunities for folk at every point on our social spectrum.”
Steven Astaire ROA Board details: Elected 2016; previously served 25 years on the Board. Current business position: Investment Manager, Stockbroker, WH Ireland Limited. Previous positions and companies: Chairman, Astaire and Partners (Stockbrokers). Positions held in racing: ROA Board Member for 25 years, Past Chairman of the Point-to-Point Secretaries Association, Past Director of Point-to-Point Authority Limited, retired Amateur Jockey Years as owner: 45. Current trainers: Mick Quinn. Horses currently owned: Kimora, Follow The Paint and Trop Fort. Horses previously owned: Yahoo, Hiram B Birdbath, Funchen View. Committees: ROA Raceday Committee. My view: “I’d like to see all racecourses provide free three-course meals for every owner while upgrading the quality of owners’ rooms, making them exclusive to owners and making every owner feel special.”
ROA Annual Report 2017-18
21
Sally Bethell
Yvette Dixon
Lynn Douglas
Paul Duffy
ROA Board details: Elected 2013 and 2017. Current professional position: Partner – JDW and Mrs S Bethell Racehorse Training. Number of years as a racehorse owner: 30. Horses currently owned: Strawberryandcream and a partner in Clarendon Thoroughbred Racing Horses previously owned: Fossgate. Part-owned Arelquin, Granston. Clarendon Thoroughbred Racing horses which have included: Penhill, Braidley, Hartley, Bradbury, Mickley, Fearby Cross, Crathorne, Medelai, Absract Folly to name a few! Current trainer: James Bethell. Committee: Thoroughbred Owner Breeder board member. My view: “Why the need for conflict? In recent years racing has been moving forward in unity, so why can this not be maintained for the overall good of the sport? We have seen what working together can achieve.”
ROA Board details: Elected 2016. Current business position: Racing secretary, Scott Dixon Racing, Owner and breeder. Previous positions and companies: Stud Owner Haygarth House. Positions held in racing: Trustee of RoR, Founding member Leger Legends committee, Current member Racing Welfare Doncaster Race Day Committee. Years as owner: 20+ Current trainers: Scott Dixon. Horses currently owned: Crosse Fire, Medici Moon, Krystallite, Samovar, many shares and syndicates. Horses previously owned: Milk it Mick, Singhalese, Ascertain, No Time, Docofthebay, Red Wine, Coastal Bluff. NH: Daldini, Little Big Horse and Snowmore. My view: “Retraining of Racehorses has ensured public perception of racing is changing. People are becoming more aware of the successful lives that former racehorses now go on to lead after their racing days. I hope this helps change the opinions of those who are put off racing by welfare concerns. TV coverage of the work of RoR behind the scenes, and the countless success stories, show the public how much loved and well-cared-for racehorses are both when in training and after their racing days are over.”
ROA Board details: Elected 2015. Current business position: Communications Officer. Owner and Co – founder of Trojan Horse Partnership. Positions held in racing: With Colin Tinkler, John Mackie, John Parkes and Norton Grove Stud. Current trainers: Ben Haslam and Archie Watson. Horses currently owned: Eponina and Quiet Waters. Horses previously owned: Toormore Epeius Castle Hill Cassie Fugleman Lady Crossmar Here For Good Spirit of Arakan Bounty’s Spirit Douglas Pasha. Committees: ROA Raceday Committee. My view: “Sporadic violence outbreaks on racecourses must be stamped out. Having been a licensee for many years, I think there needs to be a zero tolerance approach to this. I believe racecourses should generally become no-alcohol areas, while allowing drinking only in permitted places. This way racecourse management could more easily monitor drink-related problems and become proactive in dealing with them.”
ROA Board details: Elected 2011. Current business position: Independent Professional Trustee. Previous positions and companies: Managing Director – Bluefin & SBJ Pension Fund Manager. Positions held in racing: ROA Council – 2011-2015, Partnership Manager. Years as owner: 16. Current trainer/s: Nick Williams, Mark Usher, Anthony Honeyball, Nigel Twiston-Davies, Colin Tizzard and Jeremy Scott. Horses previously owned: Reve de Sivola, Diamond Harry, Quasar D’oudairies, Diamond Brook, Bullfinch, Another General, Dealers Choice. Horses currently owned: Part – Creswell Breeze, Geegeez, Frontier Spirit, Frontier Vic, All Chilled Out, Colmershill, Anglo Australian Racing, Owners Group, Bounty Bah. Committees: ROA Audit Committee (Chair), ROA Raceday Committee and ROA Membership Committee. My view: “There is much scope for improvement in handicapping and I hope the current BHA review results in positive change.”
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ROA Annual Report 2017-18
Board Members continued
Sam Hoskins
Charlie Parker
Patricia Pugh
Stephen Smith
ROA Board details: Elected 2017. Current business position: Manager of Kennet Valley Thoroughbreds and Hot To Trot Racing. Previous positions and companies: TBA Board, TBA Next Generation Committee (Chairman), ROR Trustee (as TBA representative). Positions held in racing: BHA NationalHunt Pattern Committee. Years as owner: Six. Current trainers: Andrew Balding,Charlie Hills, Ralph Beckett, Clive Cox,William Knight, Roger Varian, TomDascombe, David Elsworth, Ed Walker and George Baker. Horses currently owned: Magical Memory, Heartache. My view: “I would like to see racecourses and racing sell our complex sport to the next generation in ways that does not involve using it as an excuse to go out and get drunk!”
ROA Board details: Elected 2015. Current business position: Crimbourne Stud and Director of various other leisure and insurance businesses. Previous positions and companies: Chief Executive the Club Company and the Country Club Group. Years as owner: 20. Current trainers: Nicky Henderson, Harry Dunlop, Charlie Hills and Gary Moore. Horses currently owned: Spartan Angel, Whoshotwho, Ballinure, Mr Marbin, Pour Pavot, Finlecity, Lady Marl, Rockfast, Mrs Bojangles. Horses previously owned: Roz, Ifni Du luc, Gotonetoo, Master Mac, Benartic, Zeuss, Black Label. Committees: ROA Audit Committee, ROA Membership Committee. My view: “I would change the control and ownership of the fixture list. A more co-ordinated fixture programme, providing the scope for better planning, would provide a stronger narrative to the season and increase the exposure and popularity of our sport to a wider audience and hopefully attract more owners.”
ROA Board details: Co-opted in 2016. Current business position: Packard Head of Collections. Exhibitions and Displays, Palace House, Newmarket. Previous positions and companies: Curator of Paintings, Prints and Drawings, Museum of London, National Museum, Liverpool, National Portrait Gallery, London, Solicitor Herbert Smith Freehills. Years as owner: 16. Current trainer: Nicky Henderson. Horses currently owned: Altior, Pym. Horses previously owned: Arctic Sky, Walkingonthemoon, Hung Parliament, Silverhow and Montjess. Committees: Membership Committeee, Raceday Committee and Remuneration and HR Committee. My view: “More work needs to be done to encourage a younger demographic to racehorse ownership.”
ROA Board details: Elected 2007. Vice President 2013 2015. Current and past professional positions: Retired; formerly Head of Global Strategy and Member of Executive Management Board of Seagram Spirits and Wine Group, New York. Other positions held in racing administration: ROA Representative on BHA Jumps Committee and BHA Racing Committee. Director of Sandown Park Racecourse Committee. Years as owner: 30+. Best horses owned: Harris Bay, Ballyallia Man, Boyhood. Current trainers: Tom George, Graeme McPherson. My view: “I believe we should have a reduced fixture list that provided a better fit to the current horse population, resulting in more competitive sport throughout the season. Since 2008, the horse population has declined significantly, while the number of fixtures and races run has increased significantly. This has meant average field sizes and the competitiveness of the sport has reduced.”
ROA Annual Report 2017-18
23
ROA Scotland Representative
Alan Spence ROA Board details: Elected 2017 Previous positions and companies: Chief Executive, Britannic Travel 1970 - 2006 Years as owner: 45 Current trainers: Mark Johnston, Roger Varian, Amanda Perrett, Clive Cox, Paul Cole, Nicky Henderson Horses currently owned: Priceless, Fire Fighting, Josses Hill and twenty others Horses previously owned: Profitable, Jukebox Jury etc (over 300 winners) My view: “I would change the draconian rules that apply to early entries and the accounting rule of a single cost for everything on The Owner’s monthly statement.”
Justin Wadham
Chris Wright
ROA Board details: Elected 2008. Re-elected 2016. Current professional position: Edmondson Hall (Bloodstock Specialist) and co-director of Wadham racing Ltd. Past professional positions: Norton Rose, BBC, Mills & Reeve, Edmondson Hall, David Minton Bloodstock Ltd, Darley Stud Management Company Ltd. Professional interests in racing: Owner/Assistant trainer, breeding and bloodstock. Specialist bloodstock Solicitor. Former Independent BHA Director. Other positions held in racing administration: Directorships with Darley and David Minton Bloodstock, Chaired TBA Equine Fertility Review Group, Member of Equine Fertility Unit Ethical Review Group, Chairman of FBA (Federation of Bloodstock Agents (GB) Ltd, FBA representative on BHB’s Industry Committee. Director, Wadham Racing Ltd. Years as owner: 30+ Best horses owned: Fort Hall, Sherriffmuir, Eleazar, The Dark Lord, Resplendent Star, Daring Bid. Emperor Concerto. Current trainer: Lucy Wadham. Committees: BHA Rules Committee. My view: “I believe we should have a situation in racing where people can buy horses with full trust and confidence in the process.”
ROA Board details: Co-opted 2016. Current business position: Semi Retired. Chairman of Chrysalis Records and Chrysalis Vision Limited. Previous positions and companies: Co-founder of Chrysalis Records. Positions held in racing: TBA Board Member. Years as owner: 35. Current trainers: Paul Cole, Michael Bell, Charlie Hills, Mick Channon, Sylvester Kirk, David Menusier, Charlie Fellowes and James Bethell. Horses currently owned: Graceland, Baron Bolt, Tarte Tropezienne, Cuckoo’s Calling, Bubble & Squeak, Feline Groovy, May Remain, Kinks, Izzer. Horses previously owned: Culture Vulture, Chriselliam, Dark Angel, Bungle in the Jungle, Crime of Passion. My view: “We should change the perception of those involved in the sport that we are not in the entertainment business. We are, and we need to recognise this fact. We need to compete for the attention of younger participants to whom racing can appear a little ‘stuffy’. This could mean readdressing the question of what exactly constitutes ‘well dressed’. These days, insisting on a strict dress code on the racecourse may be detrimental to engaging a younger audience.”
CBE
Ken McGarrity ROA Board details: Co-opted 2016. Years as owner: 12. Positions held in racing: Director of Lothian Racing Syndicate which runs Musselburgh Racecourse. Current trainers: Nick Alexander, Keith Dalgleish , Linda Perratt , Sandy Thomson. Horses currently in training: Seldom Inn, Arthur’s Secret, Marlee Massie, Blue Kascade, Forever A Lady, Crazy Tornado, Lady Molly, Let Right Be Done, King’s Wharf, Geronimo, Robintheaulad, Eagle Ridge and Silk or Scarlet. Committees: ROA Scotland representative, ROA Audit and Raceday Committee. Current professional position: Group Finance Director (non-executive), Nairn’s Oatcakes Group. My view: “There should be a stronger recognition by racecourse executives of the primary importance of looking after owners and their guests on race-days. Without owners, race meetings would not take place so maximising the ‘race-day experience’ is vital to growing ownership within our sport.”
ROA Annual Report 2017-18
24
Contributions to prize-money 2013-17 Course Group
Total racecourse contribution 2017
Total racecourse contribution 2016
Ascot York Goodwood Newbury JCR Chester/Bangor Group Chelmsford City Musselburgh Salisbury Hamilton Park Ripon Pontefract Ayr Wetherby Kelso Thirsk Beverley Perth Stratford Cartmel Newton Abbot Ludlow Leicester Ffos Las Fakenham ARC Taunton Redcar Hexham Catterick Bridge Plumpton Towcester
6,478,471 4,130,946 3,643,098 2,085,937 23,053,923 1,598,925 2,400,476 1,176,073 640,064 663,408 661,062 609,312 1,153,641 96,744 380,400 502,672 592,040 467,235 585,694 276,957 506,430 504,815 833,306 476,017 306,889 15,149,176 414,330 474,660 347,088 580,366 290,944 169,610
6,735,681 3,609,457 3,348,769 1,787,912 20,842,447 1,508,250 2,659,482 948,475 602,688 574,002 624,325 583,472 1,278,449 64,132 476,385 488,121 577,923 449,648 434,730 277,587 489,528 398,846 682,959 436,339 276,492 14,224,013 292,214 398,142 254,002 525,822 214,185 152,610
Total number of fixtures 2017
24 18 19 28 335 30 52 27 16 17 17 16 31 3 12 16 19 15 19 9 17 17 29 17 11 548 15 18 16 27 16 10
Total number of fixtures 2016
25 17 19 26 334 30 63 27 16 18 17 16 30 2 13 17 19 16 15 9 18 14 29 17 12 519 13 18 14 26 15 10
Rank 2017
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Average racecourse contribution per fixture 2017
269,936 229,497 191,742 74,498 68,818 53,298 46,163 43,558 40,004 39,024 38,886 38,082 37,214 32,248 31,700 31,417 31,160 31,149 30,826 30,773 29,790 29,695 28,735 28,001 27,899 27,644 27,622 26,370 21,693 21,495 18,184 16,961
Rank 2016
Average racecourse contribution per fixture 2016
1 2 3 4 5 6 8 13 9 15 10 12 7 14 11 19 17 21 18 16 23 20 25 24 26 22 27 28 30 29 32 31
JCR = Jockey Club Racecourses ARC = Arena Racing Company
Total prize-money
Owners’ contribution
Levy Board contribution
Racecourses’ contribution
2017 £142,535m
2017 £22.3m
2017 £44.4m
2017 £73.6m
2016 £137,603m
2016 £22.5m
2016 £44.6m
2016 £68.5m
2015 £132,151m
2015 £21.7m
2015 £48.5m
2015 £61.7m
2014 £122,989m
2014 £20m
2014 £48m
2014 £54.6m
2013 £114,223m
2013 £17.9m
2013 £47.8m
2013 £48.6m
269,427 212,321 176,251 68,766 62,403 50,275 42,214 35,129 37,668 31,889 36,725 36,467 42,615 32,066 36,645 28,713 30,417 28,103 28,982 30,843 27,196 28,489 23,550 25,667 23,041 27,407 22,478 22,119 18,143 20,224 14,279 15,261
Report and Financial Statements
For the year ended 31 March 2018
Directors S Astaire S Bethell N Cooper (CBE) Y Dixon L Douglas D P Duffy R S Hoskins C Parker A M Pickering (CBE) P Pugh H S Smith A D Spence J J W Wadham C Wright (CBE)
Secretary C Liverton Company number 398604 Registered office 1st Floor, 75 High Holborn, London WC1V 6LS
Auditor RSM UK Audit LLP Chartered Accountants Abbotsgate House Hollow Road, Bury St Edmunds, Suffolk IP32 7FA
26
ROA Annual Report 2017-18
Directors’ Report
The principal activity of the Association continued to be that of promoting and supporting the interests of racehorse owners in Great Britain funded through membership subscriptions.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:
Directors
●
select suitable accounting policies and then apply them consistently;
●
make judgements and accounting estimates that are reasonable and prudent;
●
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors present their annual report and financial statements for the year ended 31 March 2018.
Principal activities
The directors who held office during the year and up to the date of signature of the financial statements were as follows: S Astaire S Bethell N Cooper (CBE) Y Dixon L Douglas D P Duffy R S Hoskins (Appointed 4 July 2017) C Parker A M Pickering (CBE) P Pugh H S Smith A D Spence (Appointed 4 July 2017) J J W Wadham C Wright (CBE)
Auditor
RSM UK Audit LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, each director has taken all the necessary steps that they ought to have taken as a director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information. This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. On behalf of the board
N Cooper (CBE) Director
Directors’ Responsibilities Statement The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Independent Auditor’s Report to the Members of the Racehorse Owners Association Limited Opinion
We have audited the financial statements of The Racehorse Owners Association Limited (the ‘company’) for the year ended 31 March 2018 which comprise the Statement of Comprehensive Income, the Statement of Financial Position and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: ●
give a true and fair view of the state of the company’s affairs as at 31 March 2018 and of its surplus for the year then ended;
●
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
●
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s
ROA Annual Report 2017-18
Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
●
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
●
the financial statements are not in agreement with the accounting records and returns; or
●
certain disclosures of directors’ remuneration specified by law are not made; or
●
we have not received all the information and explanations we require for our audit; or
●
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption from the requirement to prepare a strategic report or in preparing the directors’ report.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: ●
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
●
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ●
the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
●
the directors’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
27
Responsibilities of directors
As explained more fully in the directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Claire Sutherland (Senior Statutory Auditor). For and on behalf of RSM UK Audit LLP, Statutory Auditor, Chartered Accountants, Hollow Road, Bury St Edmunds, Suffolk, IP32 7FA
28
ROA Annual Report 2017-18
Statement of Comprehensive Income ended 31 March 2018 Note
Notes to the Financial Statements ended 31 March 2018
2018 £
2017 £
2,048,704 (2,022,303)
1,985,883 (1,919,740)
Operating surplus
26,401
66,143
Interest receivable and similar income
13,959
21,390
Surplus before taxation
40,360
87,533
(2,652)
(4,253)
37,708
83,280
Income Operating expenses
Tax on surplus
4
Surplus for the financial year
Statement of Financial Position as at 31 March 2018
Note Fixed assets Intangible assets Tangible assets Investments
2018 £
2017 £
5 6 7
90,486 – –
– – –
8 8 9
100,840 215,337 2,031,250 313,978
15,980 130,785 1,622,696 789,266
2,661,405
2,558,727
(1,381,138)
(1,225,682)
Net current assets
1,280,267
1,333,045
Total assets less current liabilities
1,370,753
1,333,045
Reserves Income and expenditure account
1,370,753
1,333,045
Current assets Debtors: Due after one year Debtors: Due within one year Investments Cash at bank and in hand Creditors: amounts falling due within one year
10
1. Accounting Policies Company information The Racehorse Owners Association Limited is a private company limited by guarantee and is registered and incorporated in England and Wales. The registered office is 75 High Holborn, London, WC1V 6LS. Accounting convention These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. Going concern At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. Income and expenditure Income and expenses are included in the financial statements as they become receivable or due. Intangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The financial statements were approved by the board of directors and authorised for issue on 29 May 2018 and are signed on its behalf by:
Software
N Cooper (CBE) Director
20% per annum on cost
Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Leasehold improvements Office equipment and furniture Computer hardware and software
20% per annum on cost 25% per annum on cost 25% per annum on cost
ROA Annual Report 2017-18
29
Fixed asset investments Interests in associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
Taxation The company is exempt from corporation tax, other than on its investment income, it being a company not carrying on a business for the purposes of making a profit.
Impairment of fixed assets At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Employee benefits The costs of short-term employee benefits are recognised as a liability and an expense.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
Leases Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Cash and cash equivalents Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. Financial instruments The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors and loans due from associate companies, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Retirement benefits The Association established with effect from 1 January 2015 a company defined contribution pension scheme for all new employees. For existing employees, the Association will continue to pay into their own personal defined contribution schemes unless they opt to join the new company scheme.
Members' subscriptions Members' subscriptions are accounted for on an accruals basis, in compliance with Section 23 of FRS102. When the company received subscription income from a member in advance, a liability is recognised of an equal amount. Over the period to which the subscription relates the liability is proportionately reduced and recognised as revenue.
2. Employees
The average monthly number of persons (including directors) employed by the company during the year was 7 (2017 - 7).
3. Directors’ remuneration
Remuneration paid to directors or other board members
2018 £
2017
–
–
No pension contributions were paid by the Association in respect of any Director or other Board Member.
3. Taxation Current tax UK corporation tax on surplus for the current period
5. Intangible fixed assets Cost Additions
2018 £
2017 £
2,652
4,253
Other £ 90,486
At 31 March 2018
90,486
Carrying amount At 31 March 2018
90,486
At 31 March 2017
–
30
ROA Annual Report 2017-18
6. Tangible fixed assets
8. Debtors
Land and Plant and buildings £ machinery etc £ Cost At 1 April 2017 and 31 March 2018
Total £
19,943
134,651
154,594
Depreciation and impairment At 1 April 2017 and 31 March 2018 19,943
134,651
154,594
Carrying amount At 31 March 2018
–
–
–
At 31 March 2017
–
–
–
2017 £
41,416 1,873 172,048
75,739 – 55,046
215,337
130,785
Amounts falling due after more than one year: Amounts owed by group undertakings and undertakings in which the company has a participating interest 100,840
15,980
Total debtors
316,177
146,765
2018 £
2017 £
2,031,250
1,622,696
9. Current asset investments
7. Fixed asset investments
At 1 April 2017 and 31 March 2018
2018 £
Amounts falling due within one year: Trade debtors Corporation tax recoverable Other debtors
2018 £
2017 £
–
–
On 8 June 2004 the company became a member of Thoroughbred Owner & Breeder Limited, a company registered in England and Wales, limited by guarantee, and not having share capital. The liability of its members is limited to £1 each and nothing was paid for the investment. As such there is no asset in the accounts. At the balance sheet date there were two members of this company. The company produces a magazine for members. On 16 June 2006 the company became a member of Horsemen Limited, a company registered in England and Wales, limited by guarantee, and not having share capital. The liability of its members is limited to £1 each and nothing was paid for the investment. As such there is no asset in the accounts. At the balance sheet date there were five members of this company. The company represents the collective interests of owners, trainers, breeders, jockeys and stable staff. On 31 July 2007 the company became a member of British Horseracing Authority Limited, a company registered in England and Wales, limited by guarantee, and not having share capital. The liability of its members is limited to £1 each and nothing was paid for the investment. As such there is no asset in the accounts. At the balance sheet date there were four members of this company. The company is the regulatory and governing body of horseracing in Great Britain. British Horseracing Authority Limited have two wholly owned subsidiaries, Great British Racing and British Horseracing Database Limited. Both companies are registered in England and Wales. The principal activity of Racing Enterprises Limited is the commercialisation of the contents of the Racing Administration database through access and user licence agreements with third parties, whilst British Horseracing Database Limited's principal activity is the maintenance and licences of the database.
Cash held on deposit and bonds
10. Creditors: amounts falling due within one year
Trade creditors Corporation tax Other taxation and social security Other creditors
2018 £
2017 £
433,294 – 14,303 933,541
388,109 4,228 15,882 817,463
1,381,138
1,225,682
11. Members’ liability Each member's liability is limited to a maximum contribution of £3 in the event of the winding up of the company. The number of members as at 31 March 2018 was 8,104 (2017: 7,852).
12. Operating lease commitments Lessee At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Within one year Between one and five years
2018 £
2017 £
80,000 166,667
80,000 246,667
246,667
326,667
13. Capital commitments Amounts contracted for but not provided in the financial statements:
Acquisition of tangible fixed assets
2018 £
2017 £
33,834
–
ROA Annual Report 2017-18
31
Staff Members Charlie Liverton
Main areas: 1. Provide Executive leadership and direction for the organisation, as determined by the Board on behalf of members. 2. Represent owners working to improve their financial returns, working in partnership with the Horseman’s Group, with a view to supporting returns to all horsemen. 3. Represent owners on industry
David Bowen
Main areas: 1. Membership strategy for the association. 2. Developing partnerships to increase suite of member benefits. 3. Technology lead for the association.
Sadie Evans
Main areas: 1. Provide support to members on a range of ownership and membership issues. 2. Compile copy for ROA publications. 3. Oversee member third party liability insurance and curtailment schemes.
Keely Brewer
Main areas: 1. Developing and maintaining the ROA website and increasing the ROA’s social and online presence . 2. Co-ordinating membership communications. 3. Undertaking monthly membership reports and analysis of statistics.
Sarah Holton
Main areas: 1. Administrator for, and member of, the ROA Raceday Committee. 2. Primary point of contact for all ROA member queries. 3. Overseeing the ROA/SIS Sponsorship scheme.
Chief Executive
Head of Membership
Membership Manager
Communications Executive
Membership Services and Racecourse Relations Executive
Ruth Diver
Main areas: 1. Supporting the Chief Executive in his aims and objectives. 2. Preparing, circulating papers and taking minutes of Board and other meetings. 3. Liaising with Board Members, staff and external clients on the Chief Executive’s behalf.
Becca Bowtell
Main areas: 1. Maintenance of the ROA Member database and administrative support. 2. Point of contact for all ROA member queries. 3. Collating, disseminating and processing of subscription payments.
PA to Chief Executive
Membership Assistant
committees helping to improve many important areas, including the BHA, RCA and Horseman’s Group under the new tripartite agreement. 4. Engage and update ROA members at regional meetings, as well as the AGM. 5. Liaise closely with partners and sponsors to maintain and enhance existing benefits.
4. Engagement with racehorse owners – both members and non-members. 5. Oversee brand and communications functions.
4. Organise and attend a number of social events for members and co-ordinate overseas reciprocal arrangements.
4. Administer the annual Board Elections and AGM. 5. Overseeing Thoroughbred Owner Breeder administration.
4. Organising ROA member events including Royal Ascot and British Champions Day. 5. Administer the ROA Owners’ Jackpot races and ROA Regional meetings.
4. Reading, monitoring and responding to the Chief Executive’s correspondence on his behalf. 5. Booking meetings and smooth running of the diary.
4. Organising monthly Ownership Matters roadshows.
32
ROA Annual Report 2017-18
Notice of Meeting Notice is hereby given that the 74th Annual General Meeting of the Racehorse Owners Association Limited (the “Company�) will be held at 10.30am on Tuesday, 3rd July 2018 in the Jumeirah Carlton Tower Hotel, Cadogan Square, London SW1X 9PY for the following purposes: 1. To receive, by way of Ordinary Resolution, the nominations of the Board for President (Nicholas Cooper) and Vice-President (Alan Pickering) for the coming year. 2. To receive, by way of Ordinary Resolution, the results of the Election to fill vacancies on the Board. 3. To confirm and adopt, by way of Ordinary Resolution, the Report and Financial Statements for the 12-month period ended 31st March 2018. 4. To appoint, by way of Ordinary Resolution, RSM UK Audit LLP as auditors in accordance with Section 485 of the Companies Act 2006 (as amended). 5. To authorise, by way of Ordinary Resolution, the ROA Board to fix the remuneration of the Auditors.
Charlie Liverton Chief Executive Dated this day, May 31st, 2018. Registered Office: First Floor, 75 High Holborn, London WC1V 6LS Registered in England No 398604 Please direct any general queries regarding this meeting to Keely Brewer either by email to kbrewer@roa.co.uk or by phone on 020 7152 0200.