INDUSTRY OWNERSHIP STRATEGY
2018-2020
LETTER FROM CEO & PRESIDENT OF ROA
We are delighted to be presenting this report of the Industry Ownership Strategy following the conclusion of the first three years of work. The ROA has worked across the industry with all the key stakeholders and we would like to thank the Horserace Betting Levy Board who based their funding of the project on that basis.
We would like to thank everyone who has taken part, given up their time to date and helped deliver these important initiatives, in particular the racecourses, trainers and owners, who have worked with us to progress many of the initiatives.
The project’s objective is to deliver a better ownership experience, on and off the racecourse, attracting and retaining owners by working with our industry stakeholders and partners. It is the purpose of our organisation: To represent, promote and secure the future of ownership and racing.
Ownership is the lifeblood of our sport. It is the largest source of investment in racing. There is an urgent need, now more than ever, to protect it, promote it and build on it for the future through both the traditional and growing forms of ownership. This strategy has made real progress for the sport and laid the foundations for a better and more attractive product in the future. We are particularly proud of the work the strategy has done on racecourse service provision, developing a collaborative, working relationship between the racecourses and owners whilst improving the experience across the country.
More fundamentally, the project has provided the sport with deep insight and understanding of what motivates owners, across the ownership landscape, from syndicate members to super owners, and has changed attitudes to what is required to improve their experience both on and off the racecourse. This has built strong foundations for us moving forward.
It has been disappointing that COVID has significantly restricted what the strategy could achieve in the project’s final year. The project has produced further deliverables for the ROA and industry stakeholders to continue as we keep driving ownership forward. Whether it is syndicate accreditation or the delivery of more Industry Ownership racedays.
Still, the fundamental work of the Industry Ownership Strategy and its impacts will not be seen for a few more years. There is still more to do and we remain ambitious to modernise ownership and future-proof its contribution to the sport.
We look forward to continuing the strong collaborative attitude and understanding this project has created across the sport and driving ownership forward together in the future.
Charlie Liverton
Charlie Parker
+2% +13% +27% -1.2%
Source: BHA data pack
GROWTH IN FIELD SIZES
2018 VS. 2020
REDUCTION IN HORSES IN TRAINING
DESPITE EFFECTS OF COVID-19
2018 VS. 2020
GROWTH IN RACES WITH 8+ RUNNERS
2018 VS. 2020
GROWTH OF NEW OWNERS IN 2ND HALF 0F 2020
2019 VS. 2020
INCREASE IN MONTHLY ACTIVE OWNERS ON AVERAGE
2018 VS. 2020
THE LIFEBLOOD OF RACING
The contribution of owners is critical to the UK racing industry...
OVER 590 TRAINERS EMPLOYED
SUPPORT THE INDUSTRY’S CONTRIBUTION TO THE UK £3.45BN
OWNERS KEEP HORSES OVER 23,000 IN TRAINING
PAY TRAINERS PER YEAR IN FEES OVER £600M
INDIRECTLY SUPPORT THE EMPLOYMENT OF STAFF 85,000
PAY OVER £13.3M A YEAR IN FEES TO EMPLOY 450 JOCKEYS SPEND £430M ON PURCHASING HORSES (2018)
PROVIDE RUNNERS FOR RACES A YEAR 10,406
£12BN UNDERPIN THE BETTING TURNOVER
SUPPORT THE RACING INDUSTRY’S CONTRIBUTION TO OF OVER £35M SINCE THE YEAR 2000 EQUINE VETERINARY AND DISEASE REASEARCH
Source: BHA; Deloitte; FT; RCA; GBR; Goffs, Tattersalls; Portas analysis
THE LIFEBLOOD OF RACING
….But the current economics of ownership are putting this contribution at risk of decline
OWNERS ARE SIGNIFICANT INVESTORS IN THE SPORT
£600M spent per year on maintaining horses in training
£23,177 average cost of keeping a horse in training
THERE ARE CLEAR CHALLENGES WITH OWNERSHIP
73% of owners earn less than £2,500 prize money per year -10 average Net Promoter Score (NPS) for an owner
44% of lapsed owners cite facilities and treatment at the racecourses as a factor for leaving racing
THERE IS A RISK OF DECLINING OWNERSHIP NUMBERS
18% of owners say they will decrease their number of horses in training in the next two years
There is a 9% annual rate of new owners, however the rate of lapse is 11%
There is a need to address the economics and experience of ownership in order to retain and recruit new owners
GOVERNANCE
The strategy was agreed with the tri-partite stakeholder bodies, funded by the Horserace Betting Levy Board and activated by the Racehorse Owners Association in consultation with the industry. This strategy was approved by the Member’s Committee and regular updates were provided via committee meetings and tripartite meetings throughout 2018 and 2019. The project was funded on the basis of approval by the HBLB.
Monthly applications for the draw-down of funds were submitted to HBLB comprising detailed cost analysis, copy invoices and supporting documentation, scrutinised prior to payment to a dedicated IOS bank account.
PROCESS FOR INITIAL APPLICATION
JULY
Two Circles Racehorse Owners Survey - presentations
NOVEMBER
Exec Committee
NOVEMBER
RCA Showcase presentation
Presented to all participating racecourses at the RCA Showcase Awards
MARCH
Exec Committee
JUNE
Exec Committee
SEPTEMBER
Members Committee
SEPTEMBER
OCTOBER
NOVEMBER
RCA Board Strategy Awayday
BHA Board RCA Showcase Presentation
Presented to all participating racecourses at the RCA Showcase Awards
NOVEMBER
Exec Committee
FUNDING PROPOSAL DEVELOPED
MARCH
HBLB Funding Granted
ANNUAL REPORTS
The ROA membership and interested parties were kept abreast of the Industry Ownership strategy in the annual reports, which can be found here: www.roa.co.uk
THE OWNERSHIP SURVEY & DIAGNOSIS REPORT
To provide a full picture of the state of ownership and the attitudes and issues behind the ownership trends the project would address, the Industry Ownership Strategy undertook an extensive consultation and survey. The findings of both the Ownership Survey and the Diagnosis Report underpin the rationale for the Industry Ownership Strategy.
The Diagnosis Report was used alongside the Ownership Survey, undertaken in 2016 and updated for the project, to provide a clear view of the feedback provided by owners, understanding their needs better, and what changes were required to improve their ownership experience. It identified how owners think, and identifying the different needs of these ownership groups, rather than thinking about owners as a homogenous group.
The Diagnosis Report provided, for the first time, an overview of the different segmentations of owners i.e sole owners, syndicate owners, new owners and “traditional” owners – as well as their motivations. The results of the Ownership survey can be found here. Some highlights are listed below:
2016 OWNERSHIP SURVEY TAKEAWAYS
of owners cite racecourse facilities as factor for leaving NPS for an owner Annual lapse rate of of owners earn less than £2,500 in prize money
OWNERSHIP DIAGNOSIS REPORT
HIGH INVOLVEMENT OWNERS
28% of owners own 63% of all HIT, 30% will decrease involvement in next 3 years, want greater engagement on advocacy issues
SYNDICATE MEMBERS
10,000 unregistered members, O&T facilities the second most important element of ownership
ALL OWNERS
83% of owners say they can’t live without racing, most enjoyable element of ownership is involvement in training plan, 29% cite trainer experience for leaving
NEW OWNERS
Just 23% of owners aged 44-54, only 21% of owners are female, 5.8m people went racing 2018
THE OWNERSHIP SURVEY & DIAGNOSIS REPORT
SCALE OF ENGAGEMENT
627 responses to ROA membership survey
956 responses to Owner-Breeder survey
596 responses to Syndicate Member survey
Deep-dive analysis 2,203 responses from 2016 ownership survey
OWNERS
Interviews with 179 owners (phone interviews, in-person interviews, regional meetings)
3 focus groups across the country with a representative group of members to explore survey findings
Interviews with 9 non-ROA members
SERVICE PROVIDERS
INDUSTRY BODIES OUTSIDE OF RACING
Interviews with 6 syndicate managers, 15 trainers
Engaged with 46 racecourses through 2 racecourse workshops
22 responses to the syndicate manager survey
Formation of 2 working groups involving racecourses & syndicate managers (15 members)
Multiple targeted meetings with 8 industry bodies to update on the progress of the project and gather insight into their interactions with owners
Completed benchmarking of 30 membership organisations (equine and non-equine) to gather best practice such as The RAC, The MCC, British Eventing, Club Wembley, Arsenal, British Airways, Goodwood Road Racing Club
THE INDUSTRY OWNERSHIP STRATEGY
In 2016, an Ownership Survey identified that a growing number of owners were considering leaving the sport due to various experiential elements from racecourse experience to access to their horse.
As racing assessed its future it was clear that, with owners, from the top to the bottom, providing the most significant investment to the sport, retaining and attracting owners to racing was a priority.
The Industry Ownership Strategy was a three year project, beginning in 2018 to improve the experience of existing owners and in turn attract new owners to the sport. The strategy was to be delivered across two key pillars:
1. Ownership Promotion
2. Service Provision
Within those pillars, seven core strategic objectives were set for initiatives to deliver on and contribute to the improvement of the ownership experience:
1. Proactively recruit new owners
2. Provide differentiated and tailored membership packages
3. Improve sustainable provision to syndicates
4. Improve guidance to and representation of small owner/breeders
5. Improve and develop the raceday experience
6. Support trainers to recruit and serve owners
7. Support syndicates to increase owners’ involvement
Within the strategy the ROA undertook extensive research to diagnose the issues behind the survey, identify the core ownership groups and their motivation as well as map the areas that should be targeted within the strategy to improve the ownership experience. This work had never been undertaken previously and has continued to provide value beyond this product for all branches of racing.
The strategy was agreed with the industry, funded by the Horserace Betting Levy Board and executed by the ROA in partnership with industry stakeholders.
Prize money and its distribution was explicitly excluded from the scope of the project. Prize money agreements and their negotiation are a responsibility and priority of the Horsemen’s Group and the subject of significant and ongoing work for example levy reform, prize money, new commercial agreements and growing racing’s income stream.
THE INDUSTRY OWNERSHIP STRATEGY
Delivering an enhanced ownership experience
SEVEN KEY STRATEGIC OBJECTIVES HAVE BEEN IDENTIFIED TO IMPROVE THE OWNERSHIP EXPERIENCE
DELIVERY AND PERFORMANCE
The ROA has delivered the Industry Ownership Strategy across three years, with all objectives and initiatives designed to meet specific key performance indicators that, in short, were set in order to retain and attract owners and horses in training.
To meet those core goals, a vast array of work and programmes were initiated to make the ownership proposition more attractive, from racecourse owner liaison officers and quality marks, to syndicate racecourse experience.
The programme of work was delivered over three years, 2018 to 2020, and many of the workstreams are continuing and funded by the ROA.
The full list of initiatives developed and completed as part of the Industry Ownership Strategy are laid out below alongside their related strategic objective, status, key performance indicator and impact.
COVID-19 IMPACT
Prior to 2020 extensive work had been completed with a significant programme of work planned for the year. Inevitably, work was halted on a number of projects during 2020 as the COVID-19 pandemic caused a recalibration.
The ROA, working in consultation with and support of the HBLB, halted spending and paused projects to allow the HBLB to redirect funds to support prize money during the pandemic as racecourse executive contributions were suspended.
Several Industry Ownership Strategy priorities were identified (January 2020) for further activation in 2020 but due to COVID-19 did not begin:
• Racecourse Quality Mark
• Racecourse Workshops (delivered February 2020)
• Expand on proposal of tiered raceday benefits
• Syndicate Accreditation
• Creation and delivery of the Industry Owners Welcome Pack
• Industry Ownership Days
As soon as COVID-19 restrictions allow, the following Industry Ownership Strategy initiatives will be considered for 2021 implementation:
• Promotional events: House of Commons/Liverpool Cathedral
• Racecourse Quality Mark scheme
• Industry Ownership Days
• Syndicate promotion/accreditation and support
OWNERSHIP PROPOSITION
This pillar of the strategy was designed to improve the ownership product, providing all owners with a more sustainable and engaging experience.
The full list of initiatives within this pillar are below.
OBJECTIVE
Provide tailored and differentiated membership packages
INITIATIVE
Proposition and structure developed for tiered engagement of Owners
Extended communication of Ownership and ROA Membership benefits
IMPACT: An enhanced membership proposition supporting an improved year round ownership experience
Improve sustainable provision to syndicates
Survey of Syndicate Members
Survey of Syndicate Managers
Development of Syndicate Accreditation Framework with cross-industry input and support
Develop and Introduce Syndicate Quality Mark Tender process completed to appoint 3rd party assessor
Involvement with BHA Group Ownership Consultation (to run in parallel with Accreditation)
Pilot Racecourse Syndicate experience
Improve ROA Syndicate provision
IMPACT: Clear definition of syndicate and enhanced quality of syndicate experience
Improve guidance / representation of small owner/breeders
Survey of Owner-Breeders
Improve representation of and engagement with small owner/ breeders across the industry
Developed Leasing Agreement to provide guide to easy, low-cost access to Ownership, working in conjunction with the TBA
Owner/breeder support and education programme
IMPACT: Retaining small owner-breeders and better informing new entrants to breeding
PROGRESS
OWNERSHIP PROPOSITION
OBJECTIVE
Proactively recruit potential owners
INITIATIVE PROGRESS
Research into New Owners and motivations
Development of programme for Ownership Racedays:
Celebrating the role of owner across a series of racedays: schedule of monthly regional sponsored racedays to build on 2019
Promoting ownership to key “committed” racegoer audience
Providing a forum for existing owners to raise issues and to enhance their engagement within the industry
Cross industry attendance to share industry messages
On course promotion and celebration of ownership, with multi avenue promotion
Tradestand presence promoting ownership and providing an information resource
Ownership Branding
Developed new brand for Ownership platform
Develop a brand for racehorse ownership to inspire the next generation of owners and encourage greater participation from existing owners
Targeted Marketing campaign to attract warm leads
9 RACEDAYS HELD 2019
2020 PRIORITY: 1 UNDERTAKEN
11 FURTHER RACEDAYS ABANDONED
OWNERSHIP RACEDAYS
The Industry Ownership Strategy identified racing spectators as a key demographic for conversion to and promotion of ownership.
Ownership Racedays have put owners at the centre of the day, shining a spotlight on ownership, driving new ownership and celebrating the role that owners play in the industry.
The racedays have also shown the value of owners to courses and the power of looking after owners during the raceday. The successful trial of the days saw attendance, runner numbers and tote revenue improved compared to a standard raceday, and has resulted in the proposed continuation of the days as spectators return. See example raceday figures below.
HOW THEY WORK
The racedays aim to share and promote the experience that existing owners have, and promote ownership to an interested and knowledgeable raceday crowd.
Owners are further involved in the raceday with interviews, entertainment and industry matters updates. There is also oncourse branding and presentations promoting the value of ownership and how to get involved.
RACEDAY (2019 VS. 2018)
ATTENDANCE: (+20%) 1600 vs 1300
OWNERS AND TRAINERS: 220 vs 110
TOTAL RUNNERS: 71 vs 50
TOTE TURNOVER: £19,500 vs £11,000 (+74% UP)
SERVICE PROVIDERS
This pillar of the strategy was designed to support other service providers in racing, like trainers and racecourses to provide a good experience to owners.
The full list of initiatives within this pillar are below:
OBJECTIVE
Improve and develop the raceday experience
Development and implementation of Racecourse Quality Mark:
Independent 3rd party assessment and measurement of Owners’ Raceday Experience across all 60 Racecourses
Racecourse engagement via Ownership Experience Workshops sharing What Good Looks Like together with Best Practice shown
Work with 3rd party to focus on Accessibility and the Ownership
Raceday Experience: scope of assessment established to deliver interactive support for Racecourses
Develop Racecourse Concierge service to support racecourses in delivering raceday experience
Mirroring existing industry programmes (RCA Visit England Visitor Attraction scheme)
Owner Liaison Officer:
To enhance Owners’ Raceday welcome and experience
To support and work together with Racecourse
To support PASS function
To develop structure of on-course Concierge function
Cross-industry initiative
Racecourse workshops and collaborative committee to improve mutual understanding of owner needs and expectations
2021 PRIORITY, COMMENCED 2020
IMPACT: Owners feel valued at the racecourse and have a more consistent experience
SERVICE PROVIDERS
OBJECTIVE
Support trainers to recruit and serve owners
INITIATIVE
Support trainers to recruit new owners and provide consistent owner engagement and standards of service
Liaison and communication with Trainers across code and region to set out the scope and scale of the Project
Development of Trainer Managed Syndicate initiative to support and promote Trainers in delivery of ownership experience to syndicate members
Owners experience/expectation training via Trainers Secretary course/Trainers Module
Racing Secretary engagement visits
Work with University of Liverpool MBA student to scope “Trainer Comparison Website”
NB Identified as a Phase 3 Priority within the Diagnostic Report
Evolution of the ROA Gold Standard for racecourse experience
IMPACT: Growth in syndicates through new members and increased involvement of retained members
Support syndicate managers to increase owners’ involvement
Create a recruiting platform to supplement managers’ ‘word of mouth’ recruitment
Development of initiative to deliver “2020 Discover Ownership Racedays” across Large Independent Racecourses to promote and support syndicate managers
Established Syndicate Manager/ Racecourse Group to discuss issues affecting the delivery of the ownership experience
IMPACT: Owners have an enhanced connection to their horse through more engaging trainer interactions
PROGRESS
QUALITY MARK
With 44% of owners leaving the sport citing racecourse facilities, the Industry Ownership Strategy targeted improvement of facilities as a key driver of retaining owners.
The Racecourse Quality Mark has driven up owner facilities standards and improved on course experience to better retain owners. Further it has fostered a collaborative approach to raceday experience development and a clear set of standards to deliver against.
HOW THEY WORK
The Quality Mark was introduced to provide an independent and objective assessment of the owners’ raceday experience across 50 elements from pre- to post- raceday.
The structure references existing industry assessments (Visit England and Visit Scotland Quality Assured Racecourse Scheme), and provides a comprehensive report for Racecourses post-visit.
A key aim was the support of a core service provider in the ownership experience, and to highlight how this could be improved. A feature was the sharing of best practice through Racecourse Workshops, which in 2018 were attended by 48 racecourses (plus an ARC and Scottish Racing rep).
2019 QUALITY MARK STATS RACECOURSE ASSESSMENTS
ASSESSMENT PERIOD
24 March to 30 August 2019
60 ASSESSMENT VISITS
Completed by a team of nine assessors
FEATURE RACE MEETINGS ATTENDED
Including most major events
Overall scores ranged from 63% to 93%
Quality mark awarded on achievement of 60%
5 racecourses scored 90% or higher
23 racecourses scored 80% to 89% 20 racecourses scored 70% to 79%
12 racecourses scored 63% to 69%
INDUSTRY OWNERSHIP STRATEGY CALENDAR
The below section outlines the Industry Ownership Strategy’s achievements throughout its programme of work, alongside the relative funding grants and drawdowns.
MARCH
Milestone: HBLB Funding of £875,000 secured
JULY
Milestone: Start of consultation and benchmarking exercise
SEPTEMBER
Milestone: Drawdown of HBLB funds commenced
OCTOBER
Milestone: Delivery of IOS Diagnosis Report
Syndicate Members/Managers Survey and analysis
Owner Liaison Support at Hereford & Newmarket Racecourses commences
NOVEMBER
Milestone: Owner Focus Group Presentation at RCA Showcase
2018
Milestone: Industry Presentations to: Overview of Racing; Trainers Modules; Trainer Secretary Courses; BHA Graduate Thoroughbred Horseracing Industries MBA
FEBRUARY
Milestone: 2 x Ownership Experience Racecourse workshops (46 racecourses in attendance)
Owner/Breeder Survey and analysis
Membership Benefits Survey and analysis
MARCH
Milestone: Work begins on the creation of the Ownership brand
2019 Racecourse Assessments commence
Owner Focus Groups
APRIL
Milestone: Consultation complete
2019 Industry Ownership Race days commence: focus on celebration of ownership
Consultation with Trainers
‘Thrill of Ownership’ Event at Liverpool Cathedral
JULY
Milestone: ‘Thrill of Ownership’ dinner at The House of Commons
Syndicate Accreditation Framework developed Leasing Agreement promoted via ROA/TBA
SEPTEMBER
Milestone: Racecourse Syndicate Pilot Facility launched
OCTOBER
Milestone: Tender process for Syndicate Accreditation Process Gold Standard criteria dovetailed with Racecourse Quality Mark
DECEMBER
Milestone: Supplier selected to undertake Syndicate Accreditation process 2020 Racecourse Assessments commence (incorporating Festival Assessments)
2019
Milestone: Industry Presentations to:
Overview of Racing; Trainers Modules; Trainers Secretary Courses; BHA Graduate Thoroughbred Horseracing Industries MBA
JANUARY
Milestone: 2020 Industry Ownership Racedays commence
FEBRUARY
Milestone: 1x Ownership Experience Racecourse workshops
MARCH
Milestone: Funding stopped and redistributed to Prize Money support
EXPENDITURE
Over three years the ROA received grant funding of £1.248m, which has been deployed in line with the strategy and documentation provided to the HBLB and annual reports to industry stakeholders including the Member’s committee.
The full expenditure is divided in the infographic between the individual strategic objectives. The expenditure per year, when averaged out over the project period, represents roughly 0.5% of the annual HBLB budget.
The impact of COVID has seen 2020, the key final year for the strategy, have expenditure significantly reduced as projects were recalibrated and funding stopped by the HBLB so preventing the continuation of many initiatives.
External Support
The ROA has seven permanent staff. In order to develop and deliver the wide-ranging strategy, the ROA employed external support, additional staff and consultants. External support provided included:
• Administrative Support
• Project Management
• Communications
• Strategy Development
• Ownership Survey
• Brand Development
• Legal
• Event Management
info@roa.co.uk
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