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.
ROA Annual Report 2016-17 1
British Horseracing The New Administrative Structure
Tripartite governance of the sport
2 ROA Annual Report 2016-17
Members’ Committee and Executive Committee
Racing Authority
Policy and strategy development
Distribution of levy income
2017-18 Strategic Objectives 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. 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. 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. 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.
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. 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. 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. To ensure that the ROA takes a key role in increasing welfare standards for jockeys and stable staff.
As one of the key partners within British Racing work to secure a regulatory regime that is proportionate, fair and brand enhancing for racing.
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, industry-wide The Horse Comes First campaign or the Retraining of Racehorses charity (RoR).
ROA Annual Report 2016-17 3
To support racing’s aims to modernise the regulation of the sport so that British horseracing continues to be held in the highest possible esteem, both nationally and internationally.
2016-17 Strategic Objectives Review In its last Annual Report, the ROA set out nine key objectives for the years 2016 and 2017. Those objectives are listed here with an account of how the ROA has fared so far.
To work with other industry stakeholders to ensure “Levy Replacement” puts the sport on an improved financial footing and increases prize-money, particularly at grassroots level. The ROA has been instrumental in the development of the Racing Authority, with ROA representation on the Authority achieved and key input in the definition of the terms of reference and functions of the organisation.
The ROA is engaged at all levels to work with, and support, racing’s aims to modernise the regulation of the sport. The ROA’s representation across key committees and groups ensures that the organisation’s views are heard on all key industry matters.
To ensure the ROA continues to play a central role in aligning the fixture list with the needs of the current and future horse population. The BHA Fixtures and Funding Review has benefited from continued ROA input and direction. The ROA continues to ensure that the importance of owners and horsemen is highlighted throughout the process and, whilst there is more to do, one of the key objectives is a growth in ownership.
To ensure the ROA and owners’ views and requirements are fully represented on the BHA’s “Horse Population, Ownership & Breeding” Pillar, including the NH Review recommendations. The ROA is leading the development of the Ownership Strategy for British Racing, underlining the importance of the ROA’s position and views in driving Ownership numbers and all areas pertaining to ownership.
4 ROA Annual Report 2016-17
To continue to improve the protection of owners in commercially-run syndicates via the Rules of Racing and through greater transparency of costs and charges. The ROA is working with BHA on a range of initiatives aimed at protecting syndicate members including the Syndicate Code of Conduct, and Great British Racing on the promotion of syndicates via ‘InThePaddock’ and other projects.
To further improve the owners’ raceday experience by working with the RCA and individual racecourses to ensure owners’ expectations are met. To use the ROA Gold Standard Award to drive further enhancements, including those relating to horse welfare, and to secure maximum publicity for the Award winners.
To deliver an improved package of benefits for ROA members with the objective of growing the membership to 8,000 by December 31st, 2016, through:
The ROA Gold Standard continues to evolve and develop with the addition of new awards reflecting the efforts made by individual racecourses. The ROA continues to work with the RCA on a range of projects focused on driving enhancements.
A. Increased retention, and B. New recruits from all tiers on the ownership pyramid. The membership of the ROA grew to a record number in 2016, with 7,734 members by 31 December (from 7,424 as at 31 December 2015). This was due to the hard work and commitment of the membership team and recommendation by trainers, members and commercial partners.
To increase engagement with owners through the staging of more regional and social events through the year, for both members and non-members. An upgraded programme of events has been scheduled for owners to enjoy – ranging from Regional Roadshows and Ownership Matters to an enhanced schedule of racedays with private facilities on offer for members and their guests with and without a runner.
To work with the Horsemen’s Group, racecourses and BHA to ensure the future of pool betting is secured, thereby providing maximum return to the industry’s participants. The ROA is fully engaged with the project examining how pool betting across racecourses will continue from 2018, with the aim of delivering the maximum return to racing across the industry.
ROA Annual Report 2016-17 5
President’s Statement
‘The single biggest event in racing politics for more than half a century’
Nicholas Cooper When on April 25th the Sports Minister Tracey Crouch signed the document to allow Levy Reform to pass into law it marked the single biggest event in racing politics for more than half a century. It is difficult to exaggerate what this means for the sport of British horseracing whose financial fortunes have ebbed more than flowed over the years since the Levy Board was set up in the early nineteen sixties.
placed by UK punters on British horseracing. While the Levy Board will continue to carry out its collection and distribution function for the remainder of this year, the Board is gradually being wound down and these tasks will be performed from early in 2018 by the Gambling Commission and the Racing Authority respectively.
Having received European clearance, the new system might still be open to the threat of legal challenge but, come what may, the racing industry must now seize the opportunities made possible by this momentous change in legislation. Levy Reform has crucially closed the loophole that has allowed overseas-based betting operators to avoid paying a substantial proportion of their Levy liabilities for over a decade. Now those operators are mandated to pay a gross profits levy of 10%, after a £500,000 threshold, on all bets 6 ROA Annual Report 2016-17
Sports Minister Tracey Crouch signed the vital document
The Racing Authority, is made up of the Horsemen’s Group (of which the ROA is a founder member), the Racecourse
Association and the British Horseracing Board. The new authority is the embodiment of a new mood now flowing through the racing industry which, after many years of internal bickering, has learned to work together, keeping the inevitable disputes behind closed doors. This, combined with the adoption of a far better attitude to working with government, has created the climate to bring racing to this point. It is estimated the annexation of all online betting will add £30m to £40m to racing’s receipts in a full year, bringing total central funding to around £90m. However, because the Levy Board have been digging into their reserves for several years to maintain expenditure levels, the starting point for measuring this figure is significantly lower than it might appear. Racing has to be very careful, therefore, to manage expectation in the immediate future, as it is unlikely there will be much more than an
additional £8m to spend in this current financial year. It is racing’s Members Committee that dictates strategy for the industry and it is here where a view has emerged that the first tranche of new money should be used to benefit the grassroots of the industry. Accordingly, more money will be directed at the middle and bottom end where many owners win little or no prize-money and therefore have nothing to cushion their substantial costs. If one of the key aims of racing is to increase the number of racehorse owners – and therefore horses in training – there needs to be a tangible initiative, especially when you consider that owners of horses of average ability see recovery of only 8p in every £1 spent on training costs compared to an overall average across the sport of 26p. To this end, racing is proposing to create an appearance money scheme targeted at races run above minimum prize-money values for Class 4, 5 and 6 races,
paying down to eighth place. This would not only help racing at the grassroots level, it would also help bookmakers by boosting each-way betting, whilst assisting racecourses for which media rights income is likely to total £120m next year when a new SIS contact comes into place. With racecourses already being penalised for small fields within their current media rights contracts, and with the likelihood of these penalties being more onerous next year, there is a win-win attached to spreading the horse population in such a way that it brings an all-round improvement in field sizes. Even when racing receives the benefit of a full year’s growth in central funding, the total will still lag behind the aggregate media rights money that flows directly to racecourses, largely in payment for pictures in betting shops. This has prompted racing to take a fresh approach to its policy for central funding so that most expenditure will now be targeted at incentivising racecourses to spend more of their media rights money in ways that are of direct benefit to owners and horsemen generally.
‘Racing must never forget that its very survival is dependent on betting’ With the imminent demise of the Levy Board, it is also very important to establish betting industry representation within racing’s corridors of power. Racing must never forget that its very survival is dependent on betting and establishing strong lines of communication should allow us to work towards maximising racing’s betting turnover.
Levy Reform has removed the main reason for rancour between the racing and betting industries. Now a better, closer relationship between the two should work to each one’s mutual benefit. It must be the way forward.
How the Levy Board came and went In 1961 the Jockey Club, then the leaders of racing, saw the prospect of a tote monopoly slip through their fingers as the government of the day legalised off-course betting. Fledgling bookmaking companies were quick to see this golden opportunity. They grasped it with both hands and left racing to squabble over scraps from the table.
‘The problem with the Levy Board from a racing perspective was that it had to operate within its original statutory framework’ and Sport. The system has also led to countless disputes, often necessitating adjudication from the government of the day. The problem with the Levy Board from a racing perspective was that it had to operate within its original statutory framework. Certainly, there have been adjustments over the years but all the while the basic structure existed, racing could never get its fair share of the betting cake. In fact, the basis of the Levy did change quite dramatically 14 years ago when it moved from being a levy on betting operators’ turnover to a levy on their gross profits. At the time this was considered to be a good move by both parties, with both the racing and betting industry doing well out of it.
Bookmakers were quick to create betting shop estates
It meant that soon after betting shops were legalised, the likes of Ladbrokes, William Hill and Corals built up their retail estates on the back of racing which, in those days, constituted around 80% of all betting. Acknowledgement that racing should receive some form of compensation paved the way for the Levy Board whose function would be to facilitate the flow of money from betting to racing. For all the intervening years, the board has existed as an impeccably-run, statutory organisation, in more recent years functioning under the Department for Culture Media
Now, however, racing’s leaders are increasingly doubtful as to whether this was, in fact, in the long-term interests of the sport. Thanks largely to the enormous growth of business on betting exchanges, margins on horseracing bets have become very slim which in turn reflects on gross profits. And, as racing has moved closer to being a high turnover, low margin betting medium, many within the sport are now rueing the day when we changed to a gross profits basis of funding. It was also in the early years of the new millennium that Peter Savill made a valiant attempt to alter racing’s funding system away from the Levy. He came very close to doing so when
placing an intellectual property right on racing’s runners and riders and charging for the material. For a short while, the bookies were on the back foot but then the European Court of Justice stepped in, ruled against the new system and it was back to the Levy Board. Unlike racing, bookmakers have traditionally been very effective at public relations, always seeming to have the ear of successive governments. However, things began to change when, anticipating a shifting world where online betting was becoming a big part of their businesses, the major bookmakers seized the opportunity of moving large parts of their operations to overseas locations, thereby avoiding paying Levy on horseracing bets and reducing their UK tax liabilities. It proved highly profitable for them but was not a move designed to endear them to any British government. Against this background, racing began to get its house in order and, crucially, became united as an industry. It learned to put across a much better PR message, made friends with influential politicians and began to talk the language that governments like to hear with an emphasis on the rural economy and employment. In contrast, the betting industry, having become too complacent in getting what it wanted from governments, now continues to find itself in a bad place, in particular over the socially dubious issue of FOBT gaming machines in their shops.
Peter Savill… made valiant attempt to alter racing’s funding
ROA Annual Report 2016-17 7
It would, however, be wrong to paint a picture where all betting operators ignored the harm that moving overseas was doing to the racing industry. A good many of them supported British racing’s Authorised Betting Partner initiative which helped racing to plug some of the online betting leakage until the instigation of Levy Reform has resulted in the ABP concept being no longer necessary.
Racecourses get their act together with pool betting operation The absence of Ascot, Chester, Bangor and Betfred-owned Chelmsford may leave a significant gap in the racecourse plan to create and operate their own pool betting operation, but there is now sufficient unanimity among almost all the other courses to make this happen. In reality, a consortium in which the great majority of racecourses are involved, is probably the most expedient way the racing industry can achieve its long-term goal of gaining proprietorial rights over a large section of the pool betting market, while delivering the all-important liquidity. For some, it might go against the grain to see racecourses receiving another direct income
Most racecourses are acting together to launch new pool betting operation
8 ROA Annual Report 2016-17
stream, but, as we have seen with the enormous sums of money that are now coming from the sale of media rights, the sensible approach for owners and horsemen is to ensure there are always binding prize-money agreements with the courses so we are assured of a fair share of whatever money they receive. Key to the success of this venture will be the selection of the right technology partner and the hardware and software infrastructure behind the pool betting system. We know that eventually the real jackpot is about enfranchising the off-course market through on-line betting but this objective is much more likely to be achieved if a solid foundation is first created by building up the tote on-course and establishing a brand. Just how many competitors the racecourse consortium will have when they push the button next year is anybody’s guess. While the Gambling Commission will no doubt apply ‘the fit and proper’ test on licence applicants they will also have to be scrupulously fair in applying whatever becomes their chosen criteria for granting a pool betting licence. It would, of course, be ridiculous and self-defeating if numerous new operators were granted licences and ended up competing for a part of what is now a fairly small pool betting market. One can only hope that commercial realities will quickly deter almost all of the crystal-ball optimists. We must also hope that major
Professor David Silk who leaves the ROA Board after 12 years
bookmakers see this as a development that allows them to build on the part they now play to facilitate pool betting through their shops rather than give way to any temptation that they will themselves also become pool betting operators. With the staggering growth of digital technology, we now have a perfect environment to establish a meaningful tote operation in the country, though whether British punters, with their fixed-odds mentality, will ever truly embrace pool betting is another question.
Farewell and thanks to Professor David Silk Our profound gratitude must be extended to Professor David Silk who stands down from the board of the ROA after a stint of 12 years. David was elected to the board in 2005, was co-opted in 2009 and 2011 and then re-elected in 2013. A consultant physician at Imperial College, London, David’s medical background has always proved invaluable when the board have been discussing health and veterinary matters.
‘David has brought a special blend of knowledge, enthusiasm and humour to board meetings’ Being a pre-eminent gastroenterologist and an expert in clinical nutrition, his vast experience was often brought into play in the wider world of racing. As examples, he chaired the BHA’s Medical Advisory Panel, was on the BHA Ethics Committee and the Animal Health Trust’s Board of Management and, as you might imagine, he also knew a great deal about the diet and weight concerns of jockeys. As a keen owner for many years, particularly of jumpers, David has brought a special blend of knowledge, enthusiasm and humour to board meetings and, as such, he will be greatly missed.
Racehorse ownership in numbers Registered owners with horses in training
2016 Prize-money Pyramid
2007
9,550
2008
9,537
2009
9,012
2010
8,774
2011
8,425
2012
8,215
2013
7,968
2014
7,931
2015
7,892
2016
7,947
Prize-money won
No.of Horses
%
£100,000 +
153
0.8%
£50,000 +
387
2.1%
£30,000 +
762
4.1%
£15,000 +
1,836
9.9%
£7,500 +
3,980
21.4%
£2500 +
Individual horses that raced at least once 2007
19,515
2008
20,222
2009
20,116
2010
19,242
2011
19,329
2012
18,550
2013
18,560
2014
18,077
2015
18,338
2016
18,540
£1+
13,664 73.3%
£0
4,959 26.7%
This pyramid is based on the number of individual horses who ran in the UK in 2016 and the percentage of those horses who won prize-money at varying levels. As shown, 26.7% (4,959) of the horses that ran won no prize-money at all; 73.3% won £1 or more and 43.7% won £2,500 or more. The same principle continues, until, at the top of the scale, 0.8% of horses won £100,000 or more.
Races with 8 (or more) runners to date Flat
Number of horses in training (monthly average) 2007
14,877
2008
15,154
2009
14,669
2010
14,340
2011
13,847
2012
13,538
2013
13,527
2014
13,469
2015
13,731
2016
15,078
8,135 43.7%
2013 %
2014 %
2015 %
2016 %
2017 %
53
52.6
57.6
60.6
66.6
Jump
59.5
51.7
54.7
52.1
52.8
All
56.4
52.1
55.9
55.8
58.6
ROA Annual Report 2016-17 9
Chief Executive’s Statement Charlie Liverton
It has been an exciting and busy first full year for me as Chief Executive of the ROA and a time in which we have seen significant changes for British Racing as a whole, as well as for the ROA. As the President reports in some detail – and we advised last year – the ROA has worked with other stakeholders in racing to help bring about the government’s very welcome announcement on Levy Reform. The new system reinforces the commitment of both racing and government to achieve a fair, enforceable and sustainable return from all betting activity on our sport. The development will lead to owners and horsemen receiving improved rewards. With the ROA having led or collaborated in a number of key industry projects, the influence of owners within the sport continues to grow. The 2016 National Racehorse Owners Survey (see pages 12 and 13) has been central to the work of the ROA, and has resonated with the wider industry. The insights gained through the responses from over 2,200 people means we now have a more accurate, knowledge-based platform, from which we can further enhance owners’ requirements.
10 ROA Annual Report 2016-17
Looking forward to our 2017/18 Strategic Objectives (see page 3), there will be a particular focus on the ROA’s role within the Racing Authority and its voice within the industry. We will, at the same time, increase our efforts to enhance the ownership experience for members by developing the services we offer and the events we put on.
Prize-money Total prize-money rose to a record £137.6m in 2016, an increase of £6m on 2015, and a rise of £43m in the last five years. Looking to the short to medium-term, prize-money is forecast to make further gains owing to two developments. The first is the new Levy mechanism, which now captures those British horseracing bets that are processed offshore, and the second is the growing racecourse executive contributions fuelled by next year’s increases in media rights payments. There are, however, continuing concerns that the racecourse group ARC has still failed to reach agreement with some of the major bookmakers over charges for betting shop pictures, while the government has yet to give its verdict on
FOBTs and minimum stakes. These continuing issues put a question mark over betting shops’ profitability which is inexorably linked to the long-term health of horseracing. Prize-money continues to be a key focus, given the impact it has not only for owners, but also the rest of the industry. The importance of the percentage deductions made on prize-money for trainers, jockeys and stable staff cannot be overstated. As we heard at the industry roadshows earlier in the year, racing has a staffing problem and this does not sit well with racecourses’ desire to increase the fixture list.
Fixtures and Funding An extensive and wide-ranging review of the Fixtures and Funding process has been undertaken for 2018. It has been led by the BHA, and has been another collaborative and constructive process. Significant enhancements for owners have been achieved and, in particular, there is now recognition that something has to be done about the imbalance of prize-money allocation across the meritocracy spectrum – racing’s so-called pyramid (see
Prize-money pyramid page 9). The interests of horsemen and racing’s workforce must continue to be at the forefront of these developments and there has been wide support for ensuring additional prize-money goes to the middle and lower tiers of racing. I am delighted to say the members who drew up the tripartite agreement were unanimous on this point and we look forward to seeing the effects in 2018.
Racing Authority As ROA President Nicholas Cooper writes in his Statement (pages 6-9), Levy Reform and the creation of the Racing Authority later this year is perhaps the most significant change seen within British racing since the creation of the Levy Board in 1961. The Horsemen’s Group will have two seats on the Racing Authority and the ROA will, as ever, play a leading role. We continue to be very proactive within the Horsemen’s Group, while the group works collaboratively and supportively on a wide range of issues, ensuring constructive and broad representation on various industry bodies.
The Five New Ownership Types Sole
For people wishing to own a horse outright.
Company
For organisations wishing to own a horse under the name of a company or business.
Partnership
For two or more registered owners that wish to own a horse together. Partnerships are likely to comprise family or friends and allow owners to share in the responsibilities of racehorse ownership.
Syndicate
For a group of people coming together to own a horse, but who do not have to be sole owners in their own right. The ownership is managed and set up by a syndicator who is responsible for the syndicate. The syndicate can be formed as a result of a public offering and often comprises a larger number of people than a partnership.
Racing Club
For a group of people coming together to experience the thrill of racehorse ownership. The club manager will be responsible for the racing club, but unlike in a syndicate, members of a racing club do not own the racehorses. Instead members are likely to pay a subscription in order to enjoy some of the benefits of racehorse ownership.
Ownership Strategy One of the key outcomes of the National Racehorse Owners Survey has been the development of the Ownership Strategy Project by the industry’s Executive Committee. The project is being led by the ROA and serves to achieve key objectives set out within the BHA Fixtures and Funding Review: ● Improvements in the raceday experience. ● Simplification of the ownership experience. ● Providing an all-round better experience for an owner. The project is ambitious and far-reaching. It is focused on retaining existing owners, as well as examining ways to attract more owners into the sport. One of the specific messages that came from the National Racehorse Owners Survey last summer was that owners want access to more information on both costs and trainers. They wish to be able to research information online before registering as an owner. In response to this, the ROA conducted a survey of members last year to establish the average costs of keeping a horse in training in 2015.
The findings have shown that for a Flat horse the average cost was £22,595 and for a jumps horse the average was £16,325. When the ‘cost per run’ calculations are related to prize-money levels, owners may question whether they should be running their horses in races worth less than £3,000 to the winner. This is particularly true of owners of jumps horses where not only the ‘cost per run’ is higher but also the risk of injury.
National Racehorse Owners Survey The 2016 National Racehorse Owners Survey – commissioned in association with the BHA – has been shared with key stakeholders, with the findings initially presented by Two Circles who undertook the research (see pages 12 and 13). The insights gained from this exercise will assist all those engaged with enhancing the ownership experience. The survey tackled the entire ownership journey, from awareness of the sport and interest in further involvement through ownership, to the
downward curve and departure from it. The survey improves our understanding of how we must stem the tide of owners leaving the sport and how we must encourage owners to promote their experience and become enthusiastic advocates of horse racing.
Ownership Reforms Owners will have received information from the BHA in February 2017 regarding the upcoming reforms and simplification to ownership. There is to be a much-welcomed simplification to the fee structure, while the new categories of ownership are shown in the illustration on this page.
Syndicates In parallel with the reforms to ownership, changes have been made to the governance of syndicates. A Code of Conduct has been introduced, which, while voluntary at this stage, we look forward to becoming compulsory.
syndicates work within a defined framework so that members have a clear understanding of the obligations of a syndicate and syndicate manager. The ROA has been fully engaged with the development of this Code of Conduct, and supports its introduction as an encouraging development.
PASS The Racecourse Association’s new PASS system has not been without its problems and its introduction has caused considerable frustration for some owners. The ROA has been feeding back comments from members and we hope most of the problems have now been resolved. Improvements have been made to iron out the initial teething problems and achieve a smooth process for owners with a runner and their guests on a raceday. We will continue to monitor the situation and to work with the RCA and individual racecourses to ensure the owners’ raceday experience continues to evolve and improve at all levels.
This aims to help and protect syndicate members. It ensures
ROA Annual Report 2016-17 11
2016 National Racehorse Owners Survey Spring 2016 saw sports marketing agency Two Circles undertake the first National Racehorse Owners Survey on behalf of the ROA and BHA. It was the most comprehensive survey of racehorse owners ever carried out in Britain. The survey’s aim was to create a consistent way of measuring the experiences of owning a racehorse and to understand the attitudes and motives of owners – both current and lapsed. Crucially, the survey has already been pivotal in directing both the ROA’s and the sport’s strategy for the future recruitment and retention of owners. The main findings are illustrated here.
The ROA makes a quick response to the survey The ROA has conducted an Ownership costs survey in response to owners saying they wanted more information on the costs of having a horse in training. The ROA has put together a ‘trainer-pack’ to assist trainers and their staff support owners with various administrative elements that come with buying a racehorse.
12 ROA Annual Report 2016-17
6.5 4.7 YEARS
YEARS
ROA members are much more likely to remain in ownership for longer (6.5 years v 4.7 years)
Costs and low prize-money are primary lapse reasons; but racecourse (44%) and trainer (29%) experience are crucial
Trainers are approachable, but could communicate more information more regularly
New owners are motivated more by the social aspects of racing
The ROA helped secure funding for this important project through support from the British Horseracing Grant Scheme, administered by the British Horseracing Authority on behalf of the Secretary of State for Culture, Media and Sport.
45% of current owners would increase number of horses in training if prize-money increased
73% of lapsed owners would definitely return if the circumstances were right
Owners want more information on costs and trainers
83%
New owners take more decision steps and are more likely to research online
Nearly one in four owners have taken a break, most due to horse injury
73% of racehorse owners say racing is one of their favourite pastimes, or they can’t live without it
of racehorse owners started out with others
ROA Annual Report 2016-17 13
What the does for its members Membership approaches the magic 8,000 number ROA membership is drawing ever-closer to reaching that magic 8,000-member milestone, with 2016 ending with the association having 7,734 members. This was the highest recorded number since the ROA’s inception in 1945. Our constant enhancement of members’ benefits is not only attracting new members but also retaining existing ones. It is also encouraging owners to stay in the game longer. The National Racehorse Owners Survey (see pages 12-13) has been vital in clarifying owners’ wishes, as well as confirming that trainers and their staff are the key salespeople of the industry. To that end, the ROA has created a ‘Trainer Pack’, a guide that provides answers to many frequently-asked questions raised by owners.
The packs, which are designed to allow updates, were produced after consultation with a group of trainers and the National Trainers Federation. The owners’ survey also revealed that more information on the costs of ownership was a clear requirement of owners. An analysis of ownership costs was conducted in 2016 and it indicated, happily, that the average cost of keeping a horse in training has only risen on average by 1.8% per annum from 2010 to 2015. Full details of the survey are available on the ROA website. The modernisation and simplification of ownership administration has been an objective of many sectors of racing, not least owners. The ROA has been closely involved in the evolution of the Racing Administration website which will be in operation later this year. This will streamline and simplify ownership registration, and provide free and easy access to areas such as entries, declarations and the programme book.
8000
7000
ROA Membership
6000 2007
2008
2009
2010
14 ROA Annual Report 2016-17
2011
2012
2013
The ROA’s free racecourse admission schemes are perennial favourites, allowing members to enjoy substantial savings throughout the year. Our sincere thanks is extended to the racecourses which now provide members with such a wide choice of free-entry fixtures around the country. With a new admission scheme in operation over the last 12 months, members have been able to enjoy more opportunities for free racing than ever before. Our new admission scheme has come courtesy of Arena Racing Company which now offers ROA members two free admission visits to each of the group's 16 racecourses during 2017. The ROA/ARC scheme is designed especially for owners with small shares in horses and applies to 500 of ARC’s 559 fixtures. The new scheme perfectly complements the popular Jockey Club Racecourse admission scheme. This allows members with a horse or share of a horse in training to pre-book up to 50 free admissions through the ROA website, choosing from 300 fixtures. And, of course, those members with a minimum of 50% of a horse in training continue to have free access to 1,300 fixtures during the year, courtesy of the Racecourse Badge Scheme for Owners which is run in conjunction with the Racecourse Association. The scheme has been extended this year with 13 courses now offering members on the scheme two admission badges for participating fixtures. In terms of generosity with free admission, Newbury continues to lead the way offering badges to all ROA members and a guest for almost all of their fixtures, including Greenham day and Al Shaqab Lockinge Day in May. Scottish Racing are also generously continuing their popular Scottish Racecourse Badge Scheme for Owners, which allows free admission to Scottish Members who have at least 5% of a horse in training in Scotland. This scheme covers almost all of Scotland’s fixtures, including Ayr Gold Cup day and Scottish Grand National day.
7500
6500
Free racecourse admission
2014
2015
2016
2017
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 limit of liability, giving peace of mind for members in the event their racehorse causes damage or injury to a third party or their property. A policy of this nature and at this level of cover would be almost impossible to find for an individual owner.
SIS-sponsored Western Hymn with Frankie Dettori after winning the Ormonde Stakes at Chester
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.
ROA/SIS Owner-Sponsorship scheme The ROA/ SIS sponsorship scheme continues to be one of the association’s most significant benefits, enabling ROA Members to registered for and reclaim, on average, £4,000 a year per horse in VAT. During 2016, nearly 2,500 horses were covered on our scheme, which is 17.5% of all sponsored horses in training. This has included top class horses Quest For More and Western Hymn. Our gratitude is extended to SIS. During the year their continued support has allowed members to reclaim collectively over £10m in VAT on annual ownership costs.
Owners’ ROA Jackpot Scheme The ROA’s ever-popular Jackpot Scheme was introduced in 2014 to help support racing at grassroots level. A joint promotion between the ROA and Racing Post, the scheme focuses on horses racing in Class 4, 5 and 6 races. Since its inception, it has paid out more than £300,000 and in 2017 it will give members the opportunity to share in bonuses totalling £100,000. Each week, one race is chosen for a £2,000 bonus, and, assuming the winning horse is owned in the majority by 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 will be rolled-on to another race later in the year.
ROA member Gary Kennedy (left) presents Owners Jackpot to trainer Paul Midgley at Ayr
The chosen races are staged only at courses which have signed up to the racing industry’s prize-money agreement, but from the start of 2017, these events have also been required to have a minimum prize fund of £5,000 per contest. As further evidence of the scheme’s success, field sizes in ROA Jackpot races throughout 2016 and the opening months of 2017 have consistently outperformed the industry standard. A number of enhancements to the scheme were announced
in April, with the owner of every qualified ROA-owned horse in the race receiving a bottle of Champagne from the association. Now, once a quarter, one of the races will be designated as a Jackpot+ event and will provide £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 put on for members with or without a runner. This will include a complimentary drink and light refreshments.
ROA Annual Report 2016-17 15
Member events
New events during this time included the setting up of spacious suites at Cheltenham’s meetings in the run-up to the Festival meeting.
We also introduced visits to Dalham Hall Stud, where members could get up close to champion sire Dubawi and recently-retired Derby winner, Golden Horn. Even more popular was a hugely successful stud trip in September to see Banstead Manor Stud’s stallions, including the magnificent Frankel. This was combined with a tour of the beautiful Cheveley Park Stud and a lunch at a local pub.
Evidence of the increasing popularity of the marquee at the Cheltenham Festival itself can be seen from how early in the year this facility is sold out. To avoid disappointment members should book their places as early as possible.
During the course of the year we also travelled around the country for our popular regional meetings, allowing us to meet local members and have interesting question and answer sessions on the hot topics in the industry.
During the past 12 months, focus has been directed at enhancing and increasing the number of social events for members. During the 2016-2017 period we entertained more than 3,350 guests over 43 days of activities.
Raceday Curtailment Scheme
ROA members meet super-star stallion Frankel at Banstead Manor Stud
We travelled far and wide, with meetings taking place at Aintree, Lingfield, Chepstow, Ayr, Warwick and Hereford. More are planned for the remainder of 2017. Another innovation has been the Ownership Matters roadshows. These are lively, monthly networking events for current owners and those
We know that late abandonments of race meetings are extremely frustrating for members, 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.
the past 12 months. It has made 159 payments totaling £15,900 to owners affected by abandonments at Windsor and Leicester (May), Thirsk (June), Yarmouth and Kempton Park (October). Payments are made automatically to owners, and usually within 48 hours of the affected raceday.
To help offset owners’ costs in these situations, the ROA Raceday Curtailment Scheme provides a payment of £100 to a member who owns at least 51% of a horse that had been due to run at a meeting that is abandoned after the first race has taken place.
The ROA also made an ex-gratia payment of £100 to 19 owners of horses who were affected by an unusual situation at a Lingfield Park fixture last June, when racing was abandoned on the turf course and resumed later on the all-weather surface, thereby falling outside the terms of the curtailment scheme.
The scheme, set up with Weatherbys Hamilton LLP, has applied five times over
16 ROA Annual Report 2016-17
individuals considering racehorse ownership. Facilitated by ROA chief executive Charlie Liverton, these evenings have debated many of the current concerns, including how owners are treated on racedays, levy reform, prize-money and how to go about choosing a trainer.
Online resources The ROA website provides a wealth of information for owners at every level to help them get the most out of their ownership experience. Over the past year we have introduced a number of new initiatives on the website. These include updates and information on the new RCA PASScard, details on the Bonus Schemes currently in operation, advice on where to find replays of races, guides to the main changes in ownership type, and general information on becoming an owner. To help members pay their subscription quickly and easily, we have also introduced the opportunity to set up a Direct Debit online through our secure and easy-to-use GoCardless payment system. As well as developing our Twitter and Facebook pages, we have also expanded our online presence with a newly introduced LinkedIn page. Another development has been our YouTube channel which, working in conjunction with Racing UK’s ‘Mark Your Card’ programme, features interviews with members on their journey into racehorse ownership. We also now showcase pictures from our events on our Flickr account.
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. The ROA and NTF have a joint holding account where sums in dispute can be deposited and held until the dispute is resolved. This enables an owner to move their horse from the yard while an issue is being resolved.
ROA Annual Report 2016-17 17
Gold Standard Awards an owner’s experience throughout the day is outstanding in every way.
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.
As the 2016 Racehorse Owners Survey highlighted, a large number of lapsed owners became disillusioned because of poor facilities and treatment of owners by racecourses. It is therefore vitally important that the Gold Standard Award continues to remain a driving force behind racecourses’ desire to improve the owners’ raceday experience. After all, racing needs owners!
The increasingly competitive nature of the award is encouraging racecourses to improve and expand their facilities. Not only must they now offer owners with a runner a proper complimentary meal, but they are also required to ensure
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 produced (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 earn the member a £50 John Lewis gift card.
Then, in a hotly-debated session, Committee members decide on that year’s Gold Standard Award recipients. 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.
The committee meets in October to amalgamate all of its reports and the ROA-member feedback.
The 2016 Gold Standard Award Winners Large Racecourses Ascot Ayr Cheltenham Chester Haydock Park York
Small Racecourses Fakenham Hamilton Park Market Rasen Musselburgh Newton Abbot Nottingham
Winner: CHESTER
Winner: NOTTINGHAM
The team from Nottingham Racecourse show their delight at receiving the 2016 ROA Small Racecourse award
2016 Improvements included Additional owners’ badges at Chelmsford City
Personalised badges for Nottingham’s big races
Complimentary food introduced at Leicester and Beverley
Enhanced owners’ experience at the Cheltenham festival
Additional owners’ dining room at Ascot
Personalised umbrellas for Musselburgh’s big races
18 ROA Annual Report 2016-17
Appearance money for all owners running a horse at Chester Branded trophy bag for winners at York New restaurant at Uttoxeter
In short Discounts on registration fees Members continue to enjoy a 20% discount on most BHA registration fees. This saves, on average, a massive £75 per year. (In the case of a syndicate, the majority of syndicate managers need to be members for the discount to be applied).
Owners’ car parking label The ROA priority car park label provides free access to the Owners & Trainers car parking at almost every racing fixture.
surely Mrs Danvers’s Special Achievement triumph, where even the horse herself looked very pleased with the win.
AGM A well-attended ROA Annual General Meeting in June underlined its reputation as racing’s best industry function of the year. As usual members were involved in lively question and answer debates following addresses from ROA President Nicholas Cooper and ARC Chief Executive Martin Cruddace. After lunch, guest were entertained with a timely performance by satirist Rory Bremner.
ROA-branded Racing Post desk calendar An ROA-branded Racing Post desk calendar was once again sent out to members in December. This extremely useful calendar gives the year’s racing fixtures and timely reminders of upcoming ROA events.
ROA Awards The biggest awards evening in racing regularly welcomes over 500 guests to a glittering event on London’s Park Lane each year. In December we saw Sprinter Sacre claim Horse of the Year and Outstanding Chaser titles just after his retirement from racing, whilst the most popular winner on the night was
a limited amount of places for the Horsewalk Restaurant on all five days of the fixture. Both packages are ordinarily only available to Goodwood Annual Members. This year, on the Tuesday of the festival, we also hosted a pre-racing reception and afternoon tea in a reserved area of the car park. This was so well received that we will be repeating it for guests attending on the Tuesday in 2017.
York Our facility for Juddmonte International Stakes day proved popular with guests enjoying a glorious day’s racing in August from the comfort of a private box in the Melrose Stand.
Royal Ascot
Rory Bremner keeps everybody amused at the ROA AGM lunch
Goodwood Once again the ROA promoted two exclusive offers to members for the QATAR Glorious Goodwood Festival. Our popular Richmond Enclosure badge service was in demand with over 500 ROA members and their guests taking advantage of this benefit. We also offered
At last years’ Royal meeting ROA members were offered the chance to purchase discounted hospitality packages in the lovely Carriages restaurant, situated on the first floor of the Royal Ascot marquee. With Thursday selling out early, just under 100 members came racing over Tuesday, Wednesday, Friday and Saturday. While guests enjoyed their discounted package, ROA staff were on hand to ensure their day went smoothly.
had booked up more than two months before the day, knowing they would be enjoying a superb hospitality package in a fantastic box located in one of the best positions on the racecourse.
Thoroughbred Owner & Breeder Published jointly by the ROA and TBA, Thoroughbred Owner & Breeder magazine continues to go from strength to strength under its editor Edward Rosenthal. Earlier this year Thoroughbred Owner & Breeder Chairman, Michael Harris, stepped down after 13 years as the magazine’s publisher. Michael has recently been replaced by the hugelyexperienced Brendan Hopkins with whom we look forward to working closely. Exciting plans are now in the pipe-line to develop the magazine including a re-design.
British Champions Day The ROA box at QIPCO British Champions Day was an early sell-out once again last year. Forty members and their guests
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 Members of the Turf Club 2016 collect their Special Achievement award (L-R): Simon Marsh, Sophie and Jonathan Portman, Connie and Mark Burton and Peter Deal. Left: Their star filly Mrs Danvers with her trophy ROA Annual Report 2016-17 19
Board Members 20 ROA Annual Report 2016-17
Nicholas Cooper
Alan Pickering
ROA Board details: Co-opted 2014, Appointed Director 2015, Appointed President 2016 Number of years as a racehorse owner: 22 Current trainer: Harry Fry Horses currently in training: Chalonial, Any Drama Committees: BHA Members’ Committee, Horsemen’s Group
ROA Board details: Elected 2011, Vice President 2015 Number of years as a racehorse owner: 26 Positions held in racing: ROA nominee on BHA Rules Committee Current trainer: Ed Vaughan Horses currently in training: Staintondale Lass, Zorba The Greek, Transmitting and Rosedale Topping Committees: BHA Rules Committee, ROA Raceday Committee (Chair)
President
Current professional position: Founded Sterling Insurance Group in 1994. Retired after its acquisition in 2015 What I bring to the ROA Board: “In a complex world where you are always trying to go forward, the ability to think strategically and prioritise your plans and workload is of great importance. What and where to go next and what to concentrate on is the most important skill to take any organisation forward. This is even more important in a world where you can’t always choose what the agenda is.”
Vice-President
Current professional position: Chairman, BESTrustees plc Previous position and company: Partner, Watson Wyatt What I bring to the ROA Board: “I have always operated at the interface of business and politics and this political acumen is something I have brought to the ROA Board. I also have independence of thought, and, as I enjoy the company of others, I eschew factions. I also bring humility to the table – as a lifelong racing fanatic I never thought I would own a Group-winning horse.”
Steven Astaire
Sally Bethell
Yvette Dixon
Lynn Douglas
ROA Board details: Elected 2016 (2nd time previously served 25 years) Number of years as a racehorse owner: 44 Positions held in racing: ROA Council, Various BHB/BHA committees, Point to Point Authority Director Current trainer: Mick Quinn Horses currently in training: Kimora, Lady of the Rea, Master Tim Committees: ROA Raceday Committee
ROA Board details: Elected 2013 Number of years as a racehorse owner: 26 Current trainer: James Bethell Horses currently in training: Fruit Salad, Strawberryandcream, Wensley and shares in several others. Committees: Thoroughbred Owner & Breeder Board
ROA Board details: Elected 2016 Number of years as a racehorse owner: 20+ Positions held in racing: RoR Board member. Current trainer: Scott Dixon Horses currently in training: Shares in 15+ inc Thunderbell, Love Rat, Thundercloud. Committees: Co chair of Racing Welfare Doncaster Race Day. Women in Racing member.
Current professional position: Stockbroker
What I bring to the ROA Board: “I was thrilled when I was voted onto the ROA Board and in that time I have been approached by many owners seeking advice on numerous issues. I cannot stress enough the importance of having a northern representative on the Board. I am now a director of Thoroughbred Owner & Breeder magazine. It is a huge privilege to be involved with such a professionally published magazine.”
ROA Board details: Elected 2015 Number of years as a racehorse owner: 17 Positions held in racing: Various roles with Colin Tinkler, John Mackie, John Parkes and Norton Grove Stud Current trainer: Ben Haslam and Tim Easterby Horses currently in training: Epeius, Eponina, Castle Hill Cassie, Skellig Michael, Quiet Moment, All with Ben Haslam Committees: ROA Raceday Committee
What I bring to the ROA Board: “Many years of experience as an owner, retired amateur jockey, a city business career.”
Current professional position: Partner, JDW and Mrs S Bethell Racehorse Training
Current professional position: Racing Secretary What I bring to the ROA Board: “I was truly appreciative of all those members of the ROA who voted for me to represent them on the ROA Board in 2016. Since joining the board I feel that I have displayed and shared my enthusiasm and commitment to encourage all forms of ownership. In particular, I am passionate in ensuring that grass roots racing and ownership receives the industry support and recognition that it deserves. I was delighted when I was selected to represent the ROA on the Retraining of Racehorses board. I am excited about this new challenge and look forward to representing those who have entrusted these roles to me as fully and completely as I can.”
Current professional position: Communications Officer, Owner and Co – founder of Trojan Horse Partnership and Trojan Horse Bloodstock What I bring to the ROA Board: “I bring huge enthusiasm and passion for the future and welfare of the horseracing industry. I believe it is important for the future success of the sport to make sure we look after and retain smaller owners, as well as the bigger ones.”
ROA Annual Report 2016-17 21
Paul Duffy
Charlie Parker
Patricia Pugh
David Silk
ROA Board details: Elected 2011 Number of years as a racehorse owner: 18 Positions held in racing: Partnership Manager Current trainer: Nick Williams, Mark Usher, Anthony Honeyball, Robert Stephens, Peter Bowen, Colin Tizzard and Jeremy Scott Horses currently in training: Diamond Benny , Diamond Reggie, Cresswell Breeze, shares in Anglo Australian Racing, Gale Force and other syndicates. Committees: Chair of ROA Audit Committee, ROA Raceday and Membership Committee member
ROA Board details: Elected 2015 Number of years as a racehorse owner: 21 Current trainer: Nicky Henderson, Harry Dunlop, Charlie Hills, Jonny Portman and Gary Moore Horses currently in training: Ballinure, Whoshotwho, Fly Camp, Verdana Blue, Finelcity, Billie Flynn, Golden Iris, Boogie Wonderland, Lord E, Emmie and Unnamed 2 year old ex Jessica’s Dream by Sea The Stars Committees: ROA Audit and ROA Membership Committee
ROA Board details: Co-opted 2016 Number of years as a racehorse owner: 16 Positions held in racing: N/a Current trainer: Nicky Henderson Horses currently in training: Altior, Pym, Silverhow Committees: ROA Membership Committee; Raceday Committee Remuneration and HR Committee
ROA Board details: Co-opted 2009-2013, Re-elected 2014 Number of years as a racehorse owner: 27 Positions held in racing: Chairman, Medical Advisory Panel, BHA, Member, Ethics Committee, BHA, Member, Board of Management, Animal Health Trust Current trainer: Paul Nicholls, Kim Bailey and Peter Hedger Horses currently in training: The Real Scorpion (Anna Newton-Smith), Jupitors Gift (Kim Bailey)
Current professional position: Independent Professional Trustee Previous position and company: Managing Director, Bluefin Consulting What I bring to the ROA Board: “Extensive business and ownership experience which has contributed to ROA Board decision making. I have particularly enjoyed my liaison with several racecourses where we have worked together to improve demonstrably the experience of all owners on the day, not just winners.”
22 ROA Annual Report 2016-17
Current professional position: Owner and Director Crimbourne Bloodstock Limited and Director of various other leisure and insurance businesses Previous position and companies: Chief Executive, the Club Company and the Country Club Group What I bring to the ROA Board: “Given my background in leisure businesses and specifically membership based enterprises, I have been able to contribute to the continued successful recruitment and retention of Members for the ROA in my role as Chairman of the Membership Committee. The committee’s role is to support the excellent executive team and help guide through the large projects currently being developed. In addition I have served on the Audit Committee and its interface with the wider executive on all financial matters.”
Current professional position: Art curator What I bring to the ROA Board: “Analysis of existing ROA membership offer, comparatives with other cultural and heritage activity and expertise in structuring and delivering a better experience for visitors, all of which will go to ensuring the interests and needs of racehorse owners are protected and enhanced.”
Current and past professional positions: Professor, Consultant Physician, Imperial College, London, St Mary’s Hospital Campus What I bring to the ROA Board: “My medical background has been invaluable when the ROA Board has been discussing both health and veterinary matters. Having been an owner for many years, my experiences have also helped me contribute to the day-to-day discussions we have on racing and its administration since becoming a Board member in 2005.”
Stephen Smith
Justin Wadham
Chris Wright
Ken McGarrity
ROA Board details: Elected 2007, Vice President 2013-2015 Number of years as a racehorse owner: 30+ Positions held in racing: ROA Representative on BHA Jumps Committee and BHA Racing Committee. Member of the BHA Jumps Review Group and 2016 Implementation Team Current trainers: Tom George and Graeme McPherson Horses currently in training: Boyhood, Another Stowaway, Hey Bill
ROA Board details: Elected 2008, Re-elected 2016 Number of years as a racehorse owner: 30+ Positions held in racing: Assistant Trainer, Chaired TBA Equine Fertility Review Group, Chairman of Federation of Bloodstock Agents, Representative on BHB’s Industry Committee, Former independent BHA Director Current trainers: Lucy Wadham Horses currently in training: Aviador, Game On (subject of a lease) Ruby Rambler (share), Agathe Rosalie, Alizee Javilex Committees: BHA Rules Committee
ROA Board details: Co-opted 2016 Number of years as a racehorse owner: 36 Positions held in racing: Board Member of TBA, Director of Thoroughbred Owner & Breeder Magazine Current trainers: Michael Bell, William Haggas, Luca Cumani, Paul Cole, Charlie Hills, Mick Channon, Richard Hannon, Sylvester Kirk, David Menusier, Mark Johnston, James Bethell, Fabrice Chappet Horses currently in training: Around 20
ROA Scotland Representative Number of years as a racehorse owner: 11 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, Lady Oatcake, Forever A Lady, Crazy Tornado, Lady Molly, Little Belter, Let Right Be Done Committees: ROA Scotland representative, ROA Audit and Raceday Committee
Current and past professional positions: Formerly Head of Global Strategy and Member of Executive Management Board of Seagram Spirits and Wine Group, New York; Retired; Director of Sandown Park Racecourse Committee. What I bring to the ROA Board: “I seek to combine my overall business and strategic marketing skills with a knowledge and passion for the sport, for the benefit of the ROA and its members.”
Current professional position: Solicitors, Edmondson Hall and co-director of Wadham Racing Limited Previous position and companies: Norton Rose, BBC, Mills & Reeve, David Minton Bloodstock Limited, Darley Stud Management What I bring to the ROA Board: “I am a specialist solicitor based in Newmarket, representing predominantly owners. I have therefore taken these experiences to help shape the opinions I put forward at Board meetings. I have also gained an understanding of British racing, which helps me ensure that the interests of owners are effectively represented. On the practical side, I assist my wife who is a successful trainer.”
Current professional position: Semi retired. Chairman of Chrysalis Records Ltd & Chairman of Chrysalis Vision Ltd What I bring to the ROA Board: “A welcome experience of the entertainment industry and leisure industry, sport and racing. As a result of my involvement over the years with Chrysalis, who, for a while, produced all of the coverage of British Racing to the betting shops and a great many other sporting events. Also owned Queens Park Rangers Football Club for 11 years and Wasps Rugby Club for five years.”
Current professional position: Group Finance Director (Non Executive), Nairn’s Oatcakes Group What I bring to the ROA Board: “My aim is to provide a voice for Scottish-based Owners within the ROA and, as the large majority of our members in Scotland operate in the middle and lower tiers of racing, I aim to ensure that they will benefit from a significant share of the new prize-money which should flow to the Sport following the introduction of the New Betting Levy and the Media Rights Income in 2018 and beyond. With my financial background, I am actively involved in the stewardship of the financial information presented to the Board on both a monthly and annual basis.”
ROA Annual Report 2016-17 23
Staff Members
Charlie Liverton
David Bowen
Main areas of responsibility: 1. Provide Executive leadership and direction for the organisation, as determined by the Board on behalf of members. 2. Represent owners 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 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.
Main areas of responsibility: 1. Membership strategy for the association. 2. Developing partnerships to increase suite of member benefits. 3. Technology lead for the association. 4. Engagement with racehorse owners – both members and non-members. 5. Oversee brand and communications functions.
Chief Executive
Head of Membership
What I love most about racing: It's simply the greatest sport. Normally exciting, often mind-blowing, never ordinary – the amazing people and horses stay with you forever.
What I love most about racing: The colour, camaraderie, competitiveness but most of all the thoroughbred horse itself.
Sadie Evans
Membership Manager Main areas of responsibility: 1. Provide support to members on a range of ownership and membership issues. 2. Compile copy for ROA Forum in Thoroughbred Owner & Breeder. 3. Oversee member third party liability insurance and curtailment schemes. 4. Organise social events for members and co-ordinate overseas reciprocal arrangements. 5. Administer ROA racing partnerships. What I love most about racing: The horses as individuals and the shared experiences they create for owners, connections and racing fans.
24 ROA Annual Report 2016-17
Becca Bowtell Membership Assistant
Main areas of responsibility: 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. 4. Organising monthly Ownership Matters roadshows. What I love most about racing: The huge team effort that goes into a horse’s success and the sheer passion shared for these amazing animals.
Keely Brewer
Events and Communications Executive Main areas of responsibility: 1. Organising large events including the Annual General Meeting and Horseracing Awards. 2. Developing and maintaining the ROA website. 3. Increasing the ROA’s social and online presence. 4. Undertaking monthly membership reports. 5. Overseeing Thoroughbred Owner & Breeder administration. What I love most about racing: Following young horses develop their careers and turn into our heroes over a number of years.
Ruth Diver
Sarah Holton
Main areas of responsibility: 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. 4. Reading, monitoring and responding to the Chief Executive’s correspondence on his behalf. 5. Booking meetings and ensuring smooth running of the diary.
Main areas of responsibility: 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. 4. Organising ROA member events including Royal Ascot and British Champions Day. 5. Administration of the ROA Owners’ Jackpot races and ROA Regional meetings.
PA to Chief Executive
What I love most about racing: It is once in a blue moon that a true super star of a horse comes along and it is the thrill and excitement that in any race there is always that chance.
Pip Kirby
Chloe Martin
Main areas of responsibility: 1. Assisting the Chief Executive with the development of strategy for the ROA. 2. Assisting the Chief Executive with the representation of owners across the industry. 3. Co-ordinating and developing the ROA/Racing Post Jackpot initiative throughout the year, liaising with racecourse representatives to define the calendar. 4. Preparing, circulating the papers and minute taking for the Horsemen’s Group.
Main areas of responsibility: 1. Assisting with membership tasks. 2. Developing new resources for the association, including the ROA Trainer-Pack. 3. Assisting with development of membership benefits and communications.
Industry Liaison Officer
What I love most about racing: Watching good horses run well and in turn watching so many people deriving so much pleasure from watching them, whether their involvement is as racing fans or professionals.
Membership Services and Racecourse Relations Executive
What I love most about racing: Watching the most spectacular athletes on the planet compete in the amphitheatre for which they were born.
Projects Officer
What I love most about racing: The horses! Coming from a stable staff background, I love getting to know the horses as individuals and watching them develop into honed athletes. I still enjoy riding out when I can.
ROA Annual Report 2016-17 25
Contributions to prize-money 2007-2016
Racecourse Contribution to Prize-money
Total Prize-money 2007
£98.4m
2008
£106m
2009
£110.5m
2010
£99m
2011
£93.9m
2012
£97.8m
2013
£114.2m
2014
£123m
2015
£132.2m
2016
£137.6m
Owners’ Contribution 2007
£13.1m
2008
£16.9m
2009
£17.3m
2010
£15.6m
2011
£15.4m
2012
£16m
2013
£17.9m
2014
£20m
2015
£21.7m
2016
£22.5m
Levy Board Contribution
Racecourse (in 2015)
Agreement signed
Average contribution to prize-money per fixture 2016 2015
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
Premier Premier Premier Premier Premier Premier Standard Premier Standard Premier Standard Premier Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard Standard None None Standard None None
£269,427 £212,321 £176,251 £68,766 £62,403 £50,275 £42,615 £42,214 £37,668 £36,725 £36,645 £36,467 £35,129 £31,889 £30,843 £30,417 £28,982 £28,713 £28,489 £28,103 £27,407 £27,196 £26,341 £23,550 £23,041 £22,478 £22,119 £20,224 £18,143 £15,261 £14,279
Ascot (1) York (2) Goodwood (3) Newbury (4) Jockey Club Group (5) Chester/Bangor Group (6) Ayr (8) Chelmsford City (7) Salisbury (12) Ripon (10) Kelso (13) Pontefract (11) Musselburgh (9) Hamilton Park (14) Cartmel (18) Beverley (20) Stratford (22) Thirsk (15) Ludlow (16) Perth (21) ARC (24) Newton Abbot (23) Wetherby (17) Leicester (25) Fakenham (26) Taunton (28) Redcar (27) Catterick Bridge (29) Hexham (30) Towcester (32) Plumpton (31)
£232,433 £188,919 £168,936 £61,225 £59,275 £54,087 £35,446 £37,188 £32,289 £34,084 £28,326 £33,032 £34,468 £27,399 £25,256 £24,486 £23,882 £27,121 £26,747 £24,218 £22,043 £23,222 £26,253 £21,761 £21,205 £18,376 £19,019 £17,320 £16,249 £11,901 £13,971
Racecourses’ Contribution
2007
£54.2m
2007
£29.6m
2008
£56.9m
2008
£30.4m
2009
£64.1m
2009
£27.6m
2010
£52.1m
2010
£30.4m
2011
£33.3m
2011
£45.2m
2012
£35.7m
2012
£46.1m
2013
£47.8m
2013
£48.6m
2014
£48m
2014
£54.6m
2015
£48.5m
2015
£61.7m
2016
£46.1m
2016
£68.5m
26 ROA Annual Report 2016-17
Report and Financial Statements Directors of the Association S Astaire Mrs S Bethell N Cooper (CBE) P J Dixon Mrs Y Dixon D P Duffy L Douglas A G Hirshfeld Ms R D S Hood C Parker A M Pickering (CBE) Mrs P Pugh Professor D B Silk H S Smith J J W Wadham C Wright (CBE)
(appointed 28 June 2016) (resigned 28 June 2016) (appointed 28 June 2016) (resigned 28 June 2016) (resigned 28 June 2016) (appointed 28 June 2016)
(appointed 28 June 2016)
Secretary of the Association C Liverton
THE RACEHORSE OWNERS ASSOCIATION LIMITED (A Company Limited by Guarantee) 31 March 2017
ROA Annual Report 2016-17 27
Report of the Directors of the Association
Statement of the Responsibilities of the Directors of the Association
The Directors of the Association present their report and the audited financial statements for the year ended 31 March 2017. The Report of the Directors of the Association has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The Directors of the Association are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Principal Activity
The principal activity of the Association is to promote and support the interests of racehorse owners in Great Britain funded through membership subscriptions.
Results and Future Prospects
The Association generated a surplus after tax of £83,280 (2016 surplus of £292,459) which has been transferred to reserves. The Directors of the Association are again forecasting the generation of a surplus in 2017/18 based on current forecasts.
Company law requires the Directors of the Association 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), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. 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 profit or loss of the company for that period. In preparing these financial statements, the Directors of the Association are required to:
Directors of the Association
●
select suitable accounting policies and then apply them consistently;
Directors’ Indemnities
●
make judgements and accounting estimates that are reasonable and prudent; and
●
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
A full list of Directors of the Association is shown on page 1.
The company has made qualifying third party indemnity provisions for the benefit of its Directors which were made during the year and remain in force at the date of this report.
Statement on Information Given to Auditor
Each Director of the Association at the time of approval of this report confirms: a) so far as the Director is aware, there is no relevant audit information of which the auditor is unaware; and b) he/she has taken all the steps that he/she ought to have taken as Directors of the Association in order to make him/herself aware of any relevant audit information and to establish that the company’s auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Auditor
Deloitte LLP has expressed its willingness to continue in office as auditor and a resolution to reappoint them as auditor will be proposed at the forthcoming Annual General Meeting.
Approved by the Directors of the Association Signed on behalf of the Directors of the Association
28 ROA Annual Report 2016-17
The Directors of the Association 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 (A Company Limited by Guarantee) We have audited the financial statements of The Racehorse Owners Association Limited for the year ended 31 March 2017 which comprise the income and expenditure account, the balance sheet, the statement of changes in reserves and the related notes 1 to 14. The financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. 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.
Respective responsibilities of Directors of the Association and auditor
As explained more fully in the Statement of Responsibilities of the Directors of the Association, the Directors of the Association are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Opinion on financial statements
In our opinion, the financial statements: ●
give a true and fair view of the state of the company’s affairs as at 31 March 2017 and of its surplus for the year then ended;
●
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and
●
have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter 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.
In the light of the knowledge and understanding of the Association and its environment obtained in the course of the audit, we have not identified any material misstatements in the Directors’ Report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in 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 of the Association were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption from preparing a Strategic Report or in preparing the Report of the Directors of the Association.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Sarah Anderson (Senior Statutory Auditor) For and on behalf of Deloitte LLP Chartered Accountants and Statutory Auditor Cambridge, United Kingdom
ROA Annual Report 2016-17 29
Income and Expenditure Account Year ended 31 March 2017 Note
Signed on behalf of the Directors
2017 £
2016 £
Income Operating expenses
3
1,985,883 (1,919,740)
1,943,042 (1,671,363)
Operating Surplus Interest receivable
5
66,148 21,390
271,679 25,976
Surplus On Ordinary Activities Before Taxation
87,533
297,655
Tax on surplus on ordinary activities
(4,253)
(5,196)
Surplus For The Financial Year
83,280
292,459
Any member of The Racehorse Owners Association Limited (ROA) who wishes to have a copy of the detailed income and expenditure accounts should contact the ROA offices on 020 7152 0200.
Balance Sheet 2016 £ – –
–
–
130,785 15,980 1,622,696 789,266
269,114 145,847 1,612,797 525,426
2,558,727
2,553,184
(1,225,682)
(1,303,419)
Net Current Assets
1,333,045
1,249,765
Total Assets Less Current Liabilities
1,333,045
1,249,765
Reserves Accumulated funds
6 7
2017 £ – –
Creditors: amounts falling due within one year
Accumulated funds £ At 1 April 2015 Surplus for the financial year
957,306 292,459
At 31 March 2016 Surplus for the financial year
1,249,765 83,280
At 31 March 2017
1,333,045
Year ended 31 March 2017 Note
Current Assets Debtors: Due within one year Due after one year Investments Cash at bank and in hand
31 March 2017
Notes to the Financial Statements
31 March 2017 Fixed Assets Tangible assets Investments
Statement of Changes in Reserves
8 8 9
10
1,333,045
1,249,765
1. Accounting Policies
The financial statements are prepared in accordance with the special provisions applicable to companies subject to the small companies regime. The particular accounting policies adopted are described below. General information and basis of accounting The Racehorse Owners Association Limited is a company incorporated in the United Kingdom under the Companies Act. The Company is a private Company limited by guarantee without share capital and is registered in England and Wales. The address of the registered office is 75 High Holborn, London, WC1V 6LS. The average monthly number of employees (including executive directors) was 7 (2016: 6). The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council. There were no material adjustments in the prior year on adoption of FRS 102 in the current year.
The accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The accounts have been prepared in accordance with the provisions of Section 1A of FRS 102.
Going concern The Directors of the Association have reasonable expectations that the Association has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
The financial statements of The Racehorse Owners Association Limited, registered number 398604, were approved by the Directors of the Association on 18 May 2017.
Members’ subscriptions Members’ subscriptions are accounted for on an accruals basis, in compliance with Section 23 of FRS 102. When the company
30 ROA Annual Report 2016-17
receives 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. Depreciation Depreciation is provided on all tangible assets at rates calculated to write off the cost, less estimated residual value of each asset over its expected useful economic life, as follows: Computer hardware & software 25% per annum on cost Office equipment & furniture 25% per annum on cost Leasehold improvements 20% per annum on cost Investments Investments held as fixed assets are stated at cost less provision for any impairment in value. Pension costs The Association established with effect from 1 January 2015 a company defined contribution pension scheme for all new employees. For existing employees at this date, the Association will continue to pay into their own personal defined contribution schemes unless they opt to join the new company scheme. Financial instruments Financial instruments are classified and accounted for according to the substance of the contractual arrangements as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the net assets of the company. Short term debtors are measured at transaction price, less any impairment. Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. Leases Rental costs under operating leases are charged to the income and expenditure account in equal annual amounts over the period of the leases.
3. Income
Income represents amounts derived from the provision of goods and services which fall within the Company’s ordinary activities. The income, which arises in the United Kingdom, is attributable to the Company’s principal activity.
4. Information Regarding Directors
2017 £
Directors’ remuneration Emoluments in respect of duties of Directors or other Board members–
–
No pension contributions were paid by the Association in respect of any Director or other Board Member.
5. Operating Surplus
2017 £ Operating surplus is after charging: Rentals under operating leases Other operating leases 73,375 Fees payable to the company’s auditor for: - the audit of the company’s financial statements 10,250
10,000
Computer hardware & software
Office equipment & furniture
Total
£
Cost At 1 April 2016 and 31 March 2017 19,943
£
£
£
79,411
55,240
154,594
Accumulated depreciation At 1 April 2016 and 31 March 2017 19,943
79,411
55,240
154,594
Net book value At 31 March 2017
–
–
–
–
At 31 March 2016
–
–
–
–
2. Critical Accounting Judgements and Key Sources of Estimation Uncertainty
Cost At 1 April 2016 Provision for impairment
The directors have not made any critical judgements in the process of applying the company’s accounting policies when compiling the financial statements.
71,268
Leasehold improvements
7. Investments held as Fixed Assets
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
2016 £
6. Tangible Fixed Assets
Tax The company is subject to corporation tax on its investment income.
In the application of the company’s accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
2016 £
At 31 March 2017
Investment £ – – –
Associated companies 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 a 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. At 31 March 2017 the company’s share of its associated company’s reserves was £nil (2016 - £nil), its result for the year being £nil (2016 - £nil). 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 a share capital. The liability of its members is limited to £1 each and nothing was paid for the investment. ROA Annual Report 2016-17 31
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. At 30 June 2016 the company’s share of its associated company’s reserves was £54,876 (2016 - £71,673), its profit for the year being £16,798 (2016 - £17,551). 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 a 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, Racing Enterprises Limited 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. At 31 December 2016 the Racehorse Owners Association’s share of its associated company’s consolidated reserves was £(1,894)k (2016 - £(987)k), and share of its consolidated loss for the year being £907k (2016 - loss £124k).
8. Debtors Amounts falling due within one year: Trade debtors Prepayments and accrued income
2017 £
2016 £
75,739 55,046
55,922 213,192
130,785
269,114
Amounts falling due after more than one year: Amounts due from associates - note 12 65,980 Provision against amounts due from associates - note 12 (50,000)
9. Investments held as Current Assets Cash held on deposit Bonds
32 ROA Annual Report 2016-17
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 at 31 March 2017 was 7,852 (2016: 7,486).
12. Related Party Transactions
The following transactions have taken place during the year with the company’s associate, Thoroughbred Owner & Breeder Limited.
Administrative charges made Contribution to production costs
2017 £
2016 £
30,000 (137,599)
30,000 (86,624)
The balance outstanding at 31 March 2017 from Thoroughbred Owner & Breeder Limited shown in note 8 was £15,980 (2016 £145,847). This balance includes a loan made to Thoroughbred Owner & Breeder Limited for the purpose of making an acquisition and is shown in amounts due from associates within debtors. The balance outstanding at 31 March 2017 from Horsemen Limited shown in note 9 was £50,000 (2016 - £50,000). A provision of £50,000 (2016 - £50,000) has been included in note 9 in relation to uncertainty the directors have in respect of the recoverability of related party debts. The loan is non-interest bearing and was initially due for repayment on or before 31 December 2016. N Cooper is a director and C Liverton is secretary of Horsemen Limited. The business has directors in common with The British Horseracing Authority Limited. In the year the company made payments for rent and associated services from this related party of £97,136 (2016 £90,000).
13. Operating Lease Commitments 195,847 (50,000)
15,980
145,847
2017 £
2016 £
1,522,696 100,000
1,512,797 100,000
1,622,696
1,612,797
10. Creditors: Amounts Falling due within One Year Trade creditors Corporation tax Other taxation and social security Accruals and deferred income
11. Members’ Liability
2017 £
2016 £
388,109 4,228 15,882 817,463
436,444 5,177 11,265 850,533
1,225,682
1,303,419
Total future minimum lease payments under non-cancellable operating leases are as follows: Land and buildings 2017 £ 2016 £ Within one year Between one and five years
80,000 246,667
80,000 326,667
326,667
406,667
14. Explanation of Transition to Frs 102
This is the first year that the Association has presented its financial statements under Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The last financial statements under previous UK GAAP were for the year ended 31 March 2016 and the date of transition to FRS 102 was therefore 1 April 2015. As a consequence of adopting FRS 102, there are no material adjustments to accounting policies to comply with that standard.
Notice of Meeting Notice is hereby given that the 73rd Annual General Meeting of the Racehorse Owners Association Limited (the “Company�) will be held at 10am on Tuesday, 4th July 2017 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 2017. 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, 2017. 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.