The Jockey Club Annual Review And Outlook 2014

ANNUAL REVIEW AND OUTLOOK 2014 For the good of British Racing

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Front and back cover image by John Hoy, hoycubedphotography.co.uk

OUR VISION AND MISSION THE JOCKEY CLUB IN CONTEXT FOREWORD BY THE SENIOR STEWARD GROUP CHIEF EXECUTIVE’S REVIEW GROUP BUSINESS PERFORMANCE THE JOCKEY CLUB BOARD OF STEWARDS OUR PEOPLE JOCKEY CLUB RACECOURSES JOCKEY CLUB ESTATES THE NATIONAL STUD RACING WELFARE MEMBERS OF THE JOCKEY CLUB 2014 SELECTED FIXTURES

OUR VISION AND MISSION Our vision

For British horseracing to be the best in the world for many years to come.

Our mission

Governed by Royal Charter, The Jockey Club’s mission is to act for the long-term good of British racing in everything it does.

In practice, this includes investing all profits back into the sport to support its long-term health and pursuing excellence in everything The Jockey Club does, whether working alongside other parties or delivering itself in the best interests of British racing.

2013 HIGHLIGHTS

The Jockey Club grew its business to record levels, with turnover of £166.9 million, up 11 percent year-on-year.

See pages 16 and 17 for more.

The Jockey Club contributed a record £18.24 million in prize money from its own resources – 44 percent of total prize money at its courses of £41.6 million, providing important returns to racehorse owners, trainers, jockeys and stable staff.

See page 26 for more.

Attendances at Jockey Club Racecourses’ festivals and standout events remained strong throughout the year, while field sizes outperformed the industry.

See page 26 for more.

The Jockey Club successfully launched the first retail bond in British sport, which raised nearly £25 million of capital to invest in its £45 million development at Cheltenham Racecourse – the Group’s largest-ever investment in facilities.

See pages 27 and 33 for more.

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THE JOCKEY CLUB IN CONTEXT The Jockey Club exists solely for the long-term good of British horseracing and has done since 1750.

The Jockey Club’s clear vision guides the Group in its mission to help British racing thrive for years to come – for the enjoyment of millions of people in the UK, the livelihoods of tens of thousands who rely on the sport and the positive contribution racing makes to the British economy and wider society in the process.

Board, Executive and Group Functions

Major shareholdings include:

THE JOCKEY CLUB ACTS TO SECURE THE FUTURE OF BRITISH RACING BY INVESTING EVERY PENNY OF PROFIT BACK INTO THE SPORT

DISTRIBUTED

£350M+

PRIZE MONEY IN THE LAST 10 YEARS

A T BR REI PE B

THE POSITIVE UK ECONOMIC IMPACT OF THE BRITISH HORSERACING INDUSTRY

THE JOCKEY CLUB HAS BEEN AT THE HEART OF THE SPORT FOR 264 YEARS 2014

BRITISH RACING IS THE UK’S 2ND MOST ATTENDED SPORT

1750

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Carlisle Racecourse Aintree Racecourse Haydock Park Racecourse Market Rasen Racecourse Nottingham Racecourse Warwick Racecourse Huntingdon Racecourse Cheltenham Racecourse Lambourn Training Grounds Kempton Park Racecourse Sandown Park Racecourse Epsom Downs Racecourse and Training Grounds Head Office High Holborn, London Wincanton Racecourse Exeter Racecourse Racing Welfare Head Office Newmarket Newmarket Training Grounds Jockey Club Rooms The National Stud, Newmarket Newmarket Racecourses – Rowley Mile Newmarket Racecourses – July Course

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2 3 5 6

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9

10 13 11 12

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THE JOCKEY CLUB

– THE LARGEST COMMERCIAL GROUP IN BRITISH RACING

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14 15

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FOREWORD BY THE SENIOR STEWARD I am pleased to report another excellent year for The Jockey Club enabling us to deliver on our promise to continue to act for the good of British racing.

The Jockey Club also takes seriously its wider role in British society. Racing is one of our greatest traditions, enjoyed by millions, with a deep and rich history.

The way we operate, with all our profits invested back into our sport, is a reminder that long-term investment leads to long-term results.

We recognise that heritage alone is not enough and we continue to work hard to keep racing up-to-date with changing times without losing touch with the traditions we all enjoy.

I believe we have got this balance right and the results are testament to the role we play in British sport and wider cultural life.

In his Group Chief Executive’s Review, Simon Bazalgette describes in more detail the latest financial performance of the Group. It is credit to all of our team that we report a fifth consecutive year of growth delivering record turnover and operating profits.

Importantly we made another record contribution to our sport’s prize money in 2013. This provides an important return to owners and is essential to British racing’s competitiveness and the livelihoods of trainers, jockeys and stable staff.

We also secured the funding and planning permissions for our largest ever investment project – the £45 million state-of-the-art development at Cheltenham Racecourse, which is now underway.

As an innovative means of raising nearly £25 million, the public’s take-up of The Jockey Club Racecourse Bond was most gratifying.

The last five years

In July 2014, I complete my five-year term as Senior Steward.

My predecessor, Julian RichmondWatson, successfully oversaw the transition of The Jockey Club from racing’s regulator to our modern role as commercial stewards in British racing.

Since 2009, The Jockey Club has built on these strong foundations, unlocking the Group’s greater commercial potential. The purpose throughout has been to generate maximum returns for the sport and ensure key decisions are made for its long-term health.

In 2009, The Jockey Club’s turnover was £127.6 million and contribution to prize money was

Nicholas Wrigley Senior Steward

a then industry-leading £12.4 million.

Despite the global economic meltdown having a negative impact on important variables from horse numbers to hospitality revenues, the Group invested, diversified and managed costs to deliver business growth each year.

In the last five years, Group turnover has grown by 31 percent, generating increased operating profits of 28 percent, and enabling us to raise The Jockey Club’s contribution to prize money by 47 percent.

During this period, a range of long-term commercial arrangements have been agreed. These include media rights through Racecourse Media Group, our catering and music joint venture partnerships, and major sponsorships with the likes of Investec and QIPCO. We have also been pivotal in launching important initiatives for the promotion of our sport, such as QIPCO British Champions Series, the sport’s Great British Racing central marketing arm and our Rewards4Racing loyalty scheme.

Capital investments between 2009 and 2014 have been lower than the previous five years as a result of major projects being completed and the need to focus investment into prize money following a stark drop in industry funding from the Levy. Now our £45 million project at Cheltenham is not just the largest in this period, but in our history.

The future

In recent years, British racing’s three key stakeholder groups – our governing body, the British Horseracing Authority; racecourses, with our trade body the Racecourse Association; and horsemen, now with owners, breeders, trainers, jockeys and stable staff represented by The Horsemen’s Group – have stood united on a range of issues, for the good of our sport.

However, it is imperative now to formalise British racing’s stakeholder

OVER FIVE YEARS

31%

GROUP TURNOVER GROWTH

structure in order to agree and maximise opportunities, identify and tackle challenges, and ensure this is an industry focused on long-term sustainability where competition is healthy and rewards are equitable.

The industry must have a clear strategy for the sport’s future and a structured approach for all parts to deliver it in collaboration, for all to benefit.

Our sport is worth £3.45 billion annually to the UK economy and getting on for 100,000 jobs. For too long it has been severely underfunded compared to other major British industries and other racing jurisdictions. French racing receives industry funding via betting of around £775 million a year, which amounts to 9 percent of turnover from bets taken on its racing. Between 8 and 12 percent is typical overseas, whereas Britain’s return, by comparison, is estimated to equate to less than 1 percent of racing betting turnover.

The Budget 2014 relayed some encouraging news for British racing.

The Chancellor of the Exchequer, The Rt Hon. George Osborne MP, promised to close the off-shore loophole in our out-dated Levy system and, finally, drive through its sustainable replacement or major reform to make it fit-for-purpose in the 21st Century. The right solution should see no further requirement for government intervention.

While the Government makes good on these promises, I have every confidence The Jockey Club will continue to play an important role, maximising its commercial revenues and investing them back into the sport.

In his Review, Simon talks about a desire for industry funding to become truly meritocratic. This is undoubtedly the right approach and should be supported by all those concerned with British racing’s best interests.

Much has been achieved in recent years, especially when you compare the millions of people enjoying themselves at the races in Britain to several other racing nations.

With many of the finest racehorses, trainers and jockeys competing for prestigious races at famous racecourses, and despite its many challenges, British racing can continue to hold its head up as the best in the world.

28%

47%

GROUP OPERATING PROFIT GROWTH

The Jockey Club

It has been a privilege to act as Senior Steward.

I am delighted to hand over to Roger Weatherby. I am sure he will prove an excellent Senior Steward and help to steer us closer to achieving our vision for a healthy and thriving sport.

I should like to thank the Members of The Jockey Club for their support and continued efforts for the good of British racing. In particular, the Stewards during my term have each afforded me excellent counsel and made invaluable contributions to The Jockey Club’s positive role at the heart of our sport.

I should also like to thank Simon Bazalgette, who has been Group Chief Executive throughout my tenure, his executive team and all members of the Group for their efforts in delivering the progress and success we have seen reported in these pages.

I look forward to seeing them continue to deliver excellent results, fantastic racing and enormous enjoyment for everybody who participates in our wonderful sport. Most importantly I will continue to enjoy seeing the world’s best horses racing in Britain.

Nicholas Wrigley Senior Steward

INCREASED CONTRIBUTION TO PRIZE MONEY 05

GROUP CHIEF EXECUTIVE’S REVIEW 2013 was a year where The Jockey Club again delivered on our mission to act for the good of British racing, including investing our profits back into the sport, while being in the privileged position of bringing enjoyment to millions of people in the process.

A role in British life

The Jockey Club has been at the heart of British racing for more than 260 years and is committed to maintaining the sport’s place in the fabric of British life. Our vision is for British racing to be the best in the world for the next 50 years and far beyond. Therefore, I am proud we were able to deliver a greater return for our sport in 2013 in support of its long-term health and prosperity, including the livelihoods of those who work in our industry and their dependents.

Record performance and contribution

I am delighted to report we grew our turnover as a Group in 2013 by 11 percent to a record £166.9 million (2012: £150.3 million). We also increased operating profits yearon-year by 11 percent to a record £22.0 million (2012: £19.8 million).

This performance not only exceeded UK economic growth of 1.9 percent in 2013 1, but also bettered the 8 percent turnover and 3 percent operating profit growth we were able to deliver in 2012.

This was the fifth consecutive year of business growth for the Group with our racing festivals, media incomes and ‘racing plus music’ events continuing to be particularly important.

At the same time, the new regional structure for Jockey Club Racecourses

“ The aspiration of The Jockey Club to be the best, for Britain to have the best racing in the world, is a good aspiration, and it is something which is not only good for British sport but it is good for Britain as a country because it attracts more people here, not only for tourism but for business too.”

Secretary of State for Culture, Media and Sport

is proving efficient and costs are being carefully controlled.

In turn, we were able to make a record contribution to prize money of £18.2 million in 2013, up from £16.5 million in 2012, within total prize money on our courses of £41.6 million from 361 fixtures. To give some context, Arena Racing Company’s prize money investment last year was £8.8 million across 570 fixtures.

Over the previous five years The Jockey Club has increased its prize money contribution from its own resources by more than £5.8 million (2009: £12.4 million).

Net profit after share of associates grew by 8.5 percent to £12.7 million (2012: £11.7 million), helping us to make scheduled debt payments of £13.3 million following investments of more than £175 million in new and upgraded facilities and turf surfaces across the Group in the last 10 years.

This performance was achieved despite our racecourse arm losing key fixtures to bad weather, such as Cheltenham’s New Year’s Day meeting, which normally attracts a crowd in excess of 30,000 people, prolonged periods of cold weather impacting advanced sales and walk-ups and staging fewer ‘racing plus music’ events than the prior year.

Further detail is outlined in our Business Performance section.

Jockey Club Racecourses

As the largest part of our Group by far and the leading racecourse group in British racing, strong performance saw Jockey Club Racecourses generate the vast majority of our business growth in 2013.

With 84 percent of Grade 1 and 42 percent of Group 1 races in Britain, we were delighted to welcome the equine stars of our sport to race in front of crowds of 1.7 million in 2013.

Office for National Statistics (ONS) N.B. All prize money data verified by Weatherbys Ltd

1&2

Gracing our courses, who could forget the performances in 2013 of Sprinter Sacre – who became the second-highest rated horse since Anglo-Irish Jumps classifications began, as well as stars including Al-Kazeem, Bobs Worth, Dawn Approach, Hurricane Fly, Toronado, Quevega, Ruler of the World, Silviniaco Conti and, of course, Auroras Encore.

In the process, our racecourse arm distributed average prize money per fixture of £115,000 across 361 fixtures, attracting an average of 9.4 runners per race over Jumps compared to the average of 8.7 for the rest of the industry and an average of 9.3 runners per race on the Flat, compared to 8.9 for everyone else.

I should also like to draw your attention to highly positive updates on our media activities, music joint venture partnership, conferences & events operations, commercial partnerships and The Jockey Club brand, which feature as case studies here or in the Jockey Club Racecourses section.

keep gallops open or who manage operations so effectively, and the investments we have made in facilities, keeping the needs of the modern racehorse at the very heart of all decisions. I am also pleased to receive so much positive feedback about the improvements to the facilities at the Jockey Club Rooms from the ongoing programme of renovation there. >

Jockey Club Estates

Credit to the team at Jockey Club Estates, 2013 was another year of growth for our land management and property arm, whose operations range from the first-class training grounds at Newmarket, Lambourn and now Epsom Downs to providing a range of services in the historic Jockey Club Rooms.

With record numbers of horses using The Jockey Club’s training facilities in Newmarket and Lambourn, both centres significantly outperformed the only very marginal increase in the horse population nationally. This is testament to Jockey Club Estates’ approach of providing the same exceptional service to all trainers, the efforts of my colleagues who worked tirelessly in often challenging conditions to

Simon Bazalgette Group Chief Executive

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GROUP CHIEF EXECUTIVE’S REVIEW (cont) Innovating and investing in new initiatives each and every year to keep our organisation moving forwards is essential. In the process we recognise it is vital to pay the greatest possible respect to our 264 years of heritage.

The National Stud

Having forecast a challenging year, as is often the case in the volatile Thoroughbred breeding industry, we were delighted that The National Stud made a positive operating profit in 2013 for the fifth consecutive year since The Jockey Club took over its ownership from the Levy Board in 2008.

Supporting the income generated from its stallions – Bahamian Bounty, Pastoral Pursuits and Dick Turpin – the range of services The National Stud offers are continuing to prove highly popular, including boarding, spelling and foaling, as well as its sales consignment.

The media spotlight shone on the Stud in the early part of 2014 when boarding mare Song gave birth to a Frankel-sired filly foal. With her owner’s permission her image was released to mark yet another chapter in the incredibly positive news story for British racing that Frankel has gifted to us.

The Stud’s education arm continues to receive praise for the services it provides to people looking to forge a career in the Thoroughbred breeding and racing industries. With UK unemployment at 2.34 million people at the end of 20132, all involved can be very proud that each Diploma graduate gained employment within a month of completing their course at The National Stud.

Racing Welfare

2013 was another important year for The Jockey Club’s charity for racing’s people in need, Racing Welfare. In raising more than £880,000 in funding during the year it significantly exceeded its previous fundraising achievements and was able to support almost 800 beneficiaries. Its activities included Welfare Officers providing 5,774 sessions of counselling or assistance and the distribution

of individual support grants totalling almost £100,000.

As we would all prefer racing’s people to have no requirement for Racing Welfare’s support, it was pleasing to note demand for the charity’s help returned to the levels experienced prior to 2011/12 when the number of beneficiaries increased significantly due to the effects of the recession. Unfortunately, Racing Welfare still has an extremely valuable role to play and I should hope its fundraising efforts receive at least as much support in 2014 as the previous year.

Innovations and investments

Innovating and investing in new initiatives each and every year to keep our organisation moving forwards is essential. In the process we recognise it is vital to pay the greatest possible respect to our 264 years of heritage. This is irreplaceable and one of The Jockey Club’s great differentiators, from our highly prestigious and historic racing festivals right through to the very heart of our brand proposition.

An update on our brand activities features in this review as a case study, as does one on the success of The Jockey Club Racecourse Bond, which was very pleasing. We raised £25 million in capital towards the development of Cheltenham Racecourse through a highly innovative retail bond and a campaign that also positively impacted our reputation.

The £45 million development at Cheltenham is the latest example of The Jockey Club investing in our assets to ensure the brightest possible future for them and our sport as a whole. Cheltenham effectively stages the world championships of Jump racing and its facilities must meet or exceed customers’ expectations.

Main development works are

underway after plans received unanimous local authority consent in 2013 and we secured the full funding for the project, which is the largest single investment in The Jockey Club’s history. The development will be completed ahead of The Festival 2016.

In the meantime, racing continues as normal and the plan is that in 2015 some aspects of the new development will be open for customers, including ground floor amenities and outdoor public steppings for viewing. The major investments in carefully considered safety modifications on the Grand National Course at Aintree are working well. This included changes to the cores of each fence.

In addition, I am pleased to see our Rewards4Racing loyalty programme continue to gain members and increase both the frequency of return and spend of its active participants at Jockey Club Racecourses. We are also continuing to invest in the experience we offer throughout our Group, focusing on both enhancing enjoyment and making life easier for our customers.

Another important investment for The Jockey Club is QIPCO British Champions Series, in which we are the largest shareholder. Now three years old, QIPCO British Champions Day became the best raceday in the world on ratings from its first year.

We have always maintained the need to invest for the long-term in QIPCO British Champions Series providing a wide audience of sports fans with a clearer understanding and appetite for the start, middle and end to the premier Flat racing season.

I anticipate amendments to the Flat and Jump racing seasons reducing crossover and conflict, which will provide another boost to the Series.

However, in the meantime racing nations around the world have been looking at what Britain has achieved already through the Series and

publicly or privately considering how they can follow suit.

Industry funding

Racing generates £3.45 billion in economic contribution to the UK each year and supports around 100,000 jobs, yet receives significantly less financial support to fund growth compared to many other industries and other racing nations, such as France and Ireland.

The 52nd Horserace Betting Levy Scheme is estimated to have yielded £75.6 million towards industry funding from 1st April 2013 to 31st March 2014. The 53rd Levy Scheme, with additional voluntary contributions referred to below, is expected to yield approximately £80.2 million.

I am pleased, through working with the betting industry, that the steep decline in the Levy of recent years has been arrested and replaced by moderate growth. However, we are a long way from the 2008 Levy high of £115 million – that year’s return put down to high rollers’ losses and before

Focus on

The Jockey Club brand

The Jockey Club’s brand is cemented in 264 years of heritage at the heart of British racing.

the impact of betting firm moves offshore – and quite incomparable to France’s industry funding of more than £700 million annually.

We have managed to generate consistent growth from the revenue streams we control even through the bitter recession and, in The Jockey Club’s case, this is how we keep increasing our contribution back to racing every year. However, adequate and equitable funding is vital for the prosperity of this great British industry and we could be streets ahead in securing its position as the world-leader and secondbiggest employer in UK sport.

From the Budget 2014, I welcome The Chancellor’s promise to close the offshore loophole in the Levy system and drive through its genuine reform or replacement. In the same breath I recognise the increased tax on gaming machines also announced, will put pressure on betting shops’ profits and the number of shops showing British racing on the high street. This only strengthens my view

that racing and betting have much to gain by placing greater focus on working together for mutual benefit.

In this regard, I was pleased to take part in negotiations to secure a four-year commercial funding agreement in autumn 2013 with the ‘Big Four’ high-street bookmaker firms – William Hill, Ladbrokes, Coral and Betfred – for them to make additional voluntary payments into the Levy. This takes the form of an incentive fund that aims to enhance British racing’s competitiveness, which makes it attractive to bet on.

The agreement is worth a minimum of £18 million in extra funding over that period.

A key opportunity identified by The Jockey Club is for the organisation to become a well-understood and valued brand. Unlocking this commercial potential will help to generate profits to invest back into the sport.

To drive this ambition forward, The Jockey Club appointed its first Group Brand Development Director, Tom Manners, at the end of 2012 – a role that has subsequently evolved into Group Sales and Marketing Director.

Recognising the first step to realising the brand’s potential was to ensure the Group acted like one coherent brand and not a collection of independent assets, a new brand identity was created for The Jockey Club. Launched in summer 2013, The Jockey Club’s new consistent ‘look and feel’ brings all parts of the business together.

During 2013, visibility of The Jockey Club’s modern, elegant and premium new identity increased as it was rolled out across the Group’s 15 racecourses, central functions and Jockey Club Estates, with clear messaging about why The Jockey Club matters featuring prominently on assets as varied as

grandstands, parade rings, in racecards, on tickets and badges and in films shown on big and small screens.

During 2014, further visibility of The Jockey Club’s new identity will be evident through uniforms and signage being updated as the brand activation continues.

To date, new commercial opportunities have been identified and The Jockey Club is already benefitting from the strengthened brand. A Group-wide gift card was launched in the early part of 2014, premium hospitality options have been created and doors are being opened to new commercial partnerships.

The Jockey Club’s brand is cemented in 264-years of heritage at the heart of British racing. Everything The Jockey Club does is to ensure the sport thrives for many years to come. It is intended that, as The Jockey Club brand gains greater relevance, further revenue streams will be opened up and British racing will be promoted and supported as a result.

A new broadcasting era with Channel 4

2013 was the first of a four-year agreement with Channel 4 that gives racing, with 89 days broadcast live, the most terrestrial TV coverage of any sport in Britain.

As well as providing significantly greater financial returns and

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Image: Pineau De Re wins the first £1 million Grand National under new sponsor Crabbie’s in 2014.

promotional support for British racing than the previous arrangement, in the first year of the new deal I was delighted to see nearly 42 percent of the UK population watched Channel 4 Racing (24.3 million unique viewers).

Encouragingly, the Grand National attracted nearly 9 million viewers, which was not only a record live sport audience for Channel 4, but also more than the number watching on BBC1 for three out of the previous four years. This also means a further 15.4 million people tuned into Channel 4 Racing outside our showpiece race in 2013.

I was also encouraged to see an increase in the number of 18-35 year-olds tuning in regularly. Equally we, and most importantly Channel 4, recognise the average weekly audience has reduced based on just the first year of data. Live television audiences for sport are going down across the board and, in my experience of media, you must be careful with comparisons based on just one year given so many variables

Focus on

Media

Media-related revenues have contributed to The Jockey Club – the largest shareholder in RMG – increasing its prize-money to record levels in 2014.

in play, from the weather to which horses line up for a given race.

However, we have a shared interest in our regular audience increasing by the end of this fouryear deal. All relevant parties will be working together on this, in addition to making best use of the additional rights income we are receiving and the fantastic shop window for our sport being provided by Channel 4.

Great British Racing

In March 2013, the Racing for Change project, of which I was a non-executive director, became Great British Racing, to act as the central promotional arm of our sport, with the aim of broadening the appeal of British racing at every level.

Racing for Change was created four years prior as a project, involving all racing’s key stakeholders, designed to tackle several challenges facing the industry and to broaden its appeal to new audiences. At that time, racing was paying to be televised, racecourse attendances were flat, the sport was

Racecourse Media Group (RMG), which manages the media rights for 33 British racecourses, 34 when Ascot joins in June 2014, including all of The Jockey Club’s racecourses, recorded an operating profit in excess of £20 million in 2013 – a 36 percent increase on 2012.

Media-related revenues have contributed to The Jockey Club – the largest shareholder in RMG – increasing its prize-money to record levels in 2014.

RMG is best-known for its horseracing channel Racing UK, which broadcast 2,500 hours of live programming in 2013 and grew its subscriber-base beyond 46,700 for the first time.

A significant subscriptiondriver was the launch of Racing UK Anywhere in November. This technological advancement allows subscribers to watch racing on three different devices from seven options, and all for the price of a single subscription. The increased ability to watch and bet on the move has also seen individual video streams from RMG tracks increase by 16 percent to 39.6 million.

Also in 2013, RMG assigned its

losing relevance with the wider media and value was not being fully realised from premium assets.

Today, we have the important Channel 4 agreement, attendances breaking the six million mark when not restricted by the weather and more coverage across a wide range of national and local media channels, including social media, which our sport has been quick to embrace. Greater revenues are now being generated through our premium assets, with considerable opportunities ahead, including through The Jockey Club’s brand.

Our sport benefits significantly from a uniting and independent promotional arm, seeking to increase our attractiveness to potential fans, racehorse owners, sponsors and the media. The Jockey Club is firmly behind, and working hand-in-hand with, Great British Racing. >

commercial business for pubs, clubs and hotels to Sky Commercial in a deal which benefits both parties strategically and ensures a wider reach for the sport.

Turf TV, the betting shop media service, which broadcasts from RMG’s 33 tracks plus Ascot, grew its subscriber-base, with more than 98 percent of the 10,450 British and Irish LBO market taking the service at the end of 2013. Turf TV payments to racecourses were up 43 percent over the period, with these payments representing more than 65 percent of all revenue generated by the business.

GBI Racing, the joint-venture between RMG and At The Races, which produces and distributes British and Irish racing overseas, opened new markets in Chile, Finland, Georgia, Israel, Kazakhstan and Sweden in 2013, meaning 45 countries can now watch and bet on this British racing product.

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GROUP CHIEF EXECUTIVE’S REVIEW (cont) To make record contributions back into British racing, through prize money, facility investments and initiatives to grow the sport, we are aiming to continue to grow The Jockey Club’s turnover and operating profits each year.

Our people

I should like to thank our hardworking people, whether in a racing or non-racing role, because everything they do helps British racing to be successful. I take pride in the fact we are such a diverse business, yet with that single focus, to support the long-term health of British racing.

Every employee has a stake in our sport’s success, whether helping to keep our racecourses, the Training Grounds and the Stud in operation all-year-round while ensuring the highest possible standards for horsemen; developing, communicating and selling our experiences, products and services; recruiting, retaining and developing the best talent for every role in our Group; delivering the experiences we promise our customers, colleagues and stakeholders through our frontline and support operations; managing and realising value from our estate; educating the next generation; helping racing’s people in need; or charting our course for the future through strategic and considered management.

As Chairman of Jockey Club Racecourses, I should like to thank Bill Whittle for his tremendous chairmanship of Haydock Park Racecourse, where for more than 30 years he oversaw its success and continued development until retiring in May 2013. In particular he helped to inspire racecourse managers and teams, helping to nurture many successful careers, and adding much to the Whittle family legacy at the course.

I should also like to thank The Lord Daresbury for his quarter of a century as Chairman of Aintree Racecourse. In that time the course has undergone an incredibly positive transformation and the Crabbie’s Grand National Festival in particular is now bigger than ever. He is succeeded as Chairman at Aintree

by The Hon. Rose Paterson, whom I wish all the very best in her new role. Peter Daresbury is now a Steward on The Jockey Club’s main board and succeeded Bill Whittle as Chairman of Haydock Park Racecourse.

Outlook

As The Jockey Club’s vision is for British racing to maintain and build on its position as the best in the world, this is the measure by which I continue to judge our success.

To realise this ambition, it is essential racing is a popular sport in the UK, with a relevance that reaches far and wide within British society – from the Crabbie’s Grand National to providing employment nationwide.

As is The Jockey Club way, we will always place the horse at the heart of all that we do and I look forward to some highly competitive and memorable racing in the year ahead.

Operating in today’s highly competitive environment, we must also place the customer at the centre of our offering, constantly seeking their insights to help us to understand what they want and expect from their experience with us – whether that means at the racecourse or a customer or partner of any other aspect of our Group.

To make record contributions back into British racing, through prize money, facility investments and initiatives to grow the sport, we are aiming to continue to grow The Jockey Club’s turnover and operating profits each year.

I am confident we will achieve that in 2014, despite the already competitive summer months in 2014 featuring a FIFA World Cup and the Commonwealth Games being staged in the UK. In the bigger picture, as our Senior Steward Nicholas Wrigley outlines in his Foreword, it is imperative all stakeholders in British racing work together. We look

forward to a formalised structure that maximises this, finding equilibrium between the three key groups within British racing: the British Horseracing Authority as our governing body; the racecourses, represented by the Racecourse Association; and horsemen – owners, breeders, trainers, jockeys and stable staff – represented

by The Horsemen’s Group.

With the right structure for the sport in place, the single change with the biggest potential for positive and sustainable impact would be to make the funding of British racing a meritocracy. Today it is within our sport’s gift to reward those who do the most to support it, incentivising them to do even more for the good of British racing and its future prosperity.

Taking just two examples, the fixture allocation process and Levy distribution structure should be driven more than they are today by economic efficiency and the commitment to convert this into prize money.

Competition to gain racing’s rewards should be as stiff within the industry as it is on the track. Just like prize money attracting higher quality horses to race, offering proper incentives to racing businesses would, I am sure, have a real impact on behaviour.

Competition should be around core behaviours to support the aims of British racing, not just incremental spend to secure marginal fixtures or the current betting share calculation, which is a much poorer driver of racecourse behaviour than prize money investment.

I believe improving the financial equation for horsemen can positively affect the future horse population, which will have the biggest impact on competitiveness, runners and turnover. That is also in the best interests of the betting industry as we seek to improve the betting value of the racing programme for them, which in turn generates funding for British racing.

I reiterate my call for the intrinsically-linked racing and betting industries to work together more closely than ever before, for mutual gain. The more level the playing field in the years ahead and the more racing listens and takes appropriate action, the more positive and sustainable our relationship can be for all concerned.

While prize money is the lifeblood of the sport, a genuine meritocratic structure should also mean other acts of good have value; from investing in initiatives and innovations to promote racing through to moving fixtures from potentially more favourable slots to help to achieve industry-agreed objectives.

Incentivise acts for the good of British racing and you will find we are growing the sport for all to benefit.

Special thanks

I should like to thank Nicholas Wrigley for his five-year term as Senior Steward, which concludes in July 2014. He has been instrumental in the success and development of The Jockey Club in that time, positively challenging and supportive of our management team and, on a personal level, a constant source of wise counsel and fresh ideas throughout. I look forward to working under his successor, Roger Weatherby, who has already made a marked contribution to British racing.

I should also like to thank our Board of Stewards as a whole for their support over the review period.

Simon Bazalgette Group Chief Executive

Focus on

Crabbie’s Grand National Festival partnership

The initial three-year deal saw the world’s most famous steeplechase prize fund reach £1 million for the first time in the race’s 175-year history.

In August 2013, The Jockey Club was delighted to unveil Crabbie’s as the new Official Title Sponsor of the Grand National Festival at Aintree Racecourse.

The initial three-year deal sees the world’s most famous steeplechase prize fund reach £1 million for the first time in the race’s 175-year history.

As one of the crown jewel events in British sport, the Crabbie’s Grand National Festival provides the UK’s number one selling Alcoholic Ginger Beer brand with a platform to reach a UK terrestrial television audience of around 9 million on Channel 4 and an estimated 600 million people worldwide, as well as more than 150,000 people attending over the three days the event.

Crabbie’s rights include sponsorship of the three races over the Grand National fences during the meeting and also gains exclusivity for ginger beer and cider products at the festival for the duration of the contract, which initially runs through until the completion of the 2016 event. The Crabbie’s product range is already sold at Aintree and the 14 other tracks within Jockey Club Racecourses.

The partnership renews the

longstanding relationship of Crabbie’s owner, Halewood International, with Aintree and racing on a wider level.

Halewood International’s founder, the late John Halewood, owned the Ginger McCaintrained Amberleigh House, who won the 2004 Grand National and the 2001 Becher Chase.

During his career, the top-class chaser competed 11 times over the famous Grand National fences and now resides at The National Stud.

The partnership at Aintree has become one of the cornerstones of the marketing programme for Crabbie’s both in the UK and internationally and brand-owner Halewood has activated a major support programme to underpin the sponsorship. It is the latest in a series of high-profile marketing campaigns for the brand, whose recent sponsorship programmes include The National Television Awards, the British Comedy Awards, The Scottish Open and Edinburgh’s Hibernian FC.

13

Images from top: Ruler Of The World wins the 2013 Investec Derby in front of a crowd of more than 130,000 people.

String of trainer George Margarson’s horses after exercising on the Newmarket gallops in preparation for the 2014 QIPCO 1000 Guineas.

Focus on

Sustainability and the environment

The Jockey Club is dedicated to improving sustainability across all parts of the Group. In line with its mission to act for the long-term good of British racing, The Jockey Club prioritises sustainable practises in order to help to look after the environment in which it operates, so that future generations may enjoy the sport as we recognise it today.

Considering the environmental impact of each activity is becoming integral to day-to-day operations as awareness continues to increase amongst The Jockey Club’s people, promoted from within.

Reducing CO2 emissions remains a key objective for the Group and real progress was made during 2013.

Focussing the business with a target to reduce CO2 consumption by 10 percent during 2013 against the prior year, proved highly successful and regular monitoring found the business not only met but exceeded this target by several percent.

To support a continued reduction in mainline gas and electricity use, energy efficiency audits have been undertaken at all 15 of The Jockey Club’s racecourses. The results will be used to ensure future investment is targeted in areas where the greatest reduction in energy consumption is possible.

Nominated Green Champions, responsible for raising environmental awareness and sharing best practice through the Group, have been in place at each business unit since 2011. The success of this initiative has inspired an extension of the network.

Jockey Club Catering introduced a Green Champion at each of its managed sites and the team of champions at Newmarket Racecourses has grown, recognising the two courses there.

Many of the racecourse teams have delivered significant success following a concerted effort to empower people to make a difference. For example, improvements have been made in shut-down procedures and security staff have been enlisted to switch off equipment.

Identifying the need to positively influence simple behaviours amongst its people, The Jockey Club introduced ‘Going Green’ stickers at the end of 2013 to make it easier for people to identify what should and should not be switched off.

These simple shifts in behaviours and attitudes have made a big difference already.

Supporting the joint vision for the UK events sector to become a zero waste to landfill industry by 2020, The Jockey Club has continued to take positive steps towards this goal. A food waste separation initiative is being rolled out at its racecourses during 2014 and continuous improvement in the percentage of recycled waste is a stipulation for the Group’s waste contractor. With good cooperation from the operations team, maintenance staff, Jockey Club Catering and others, higher recycling rates are planned for 2014.

Through a continued commitment to protecting the environment, The Jockey Club is not only working towards a more sustainable environment to stage British racing but also reducing costs in the process, which allows greater funds to be reinvested back into the sport.

In line with its mission to act for the long-term good of British racing, The Jockey Club prioritises sustainable practises in order to help to look after the environment in which it operates, so that future generations may enjoy the sport as we recognise it today.

15

GROUP BUSINESS PERFORMANCE GROUP FINANCIAL PERFORMANCE 2012 £m

2013 £m

139.4 150.3

166.9

2011 £m TURNOVER OPERATING PROFIT

19.2

PROFIT ON SALE OF TANGIBLE FIXED ASSETS

19.8

22.0

0.0

1.2

0.6

NET DEPRECIATION

(5.9)

(6.0)

(5.7)

NET INTEREST

(4.3)

(4.2)

(5.1)

9.0

10.8

11.8

10.3

11.7

12.7

NET PROFIT NET PROFIT AFTER SHARE OF ASSOCIATES

GROUP TURNOVER BREAKDOWN

JOCKEY CLUB RACECOURSES

2011 £m

2012 £m

2013 £m 158.7

132.0

142.1

JOCKEY CLUB ESTATES

5.3

5.5

5.8

THE NATIONAL STUD

2.0

2.6

2.3

THE JOCKEY CLUB

0.1

0.1

0.1

139.4 150.3

166.9

TOTAL

GROUP SOURCES OF REVENUE Racing revenues £143.2m Non-racing revenues £23.7m

SOURCES OF PRIZE MONEY INVESTMENT 2013 £m

2011 £m

2012 £m

JCR CONTRIBUTION

16.4

16.5

18.2

INDUSTRY CONTRIBUTION

11.4

12.1

16.0

ENTRY FEES TOTAL

6.6

6.7

7.4

34.4

35.3

41.6

•G roup turnover is up 11 percent to a record £166.9 million (2012: £150.3 million, which grew 8 percent), driven by greater admissions revenues, significant increases in media revenues, hospitality income and industry funding, and strong growth at Jockey Club Estates. This was the fifth consecutive year of turnover growth, achieved despite the overall economic environment impacting consumer and corporate confidence and the unusually cold weather in Q1 and into Q2 impacting attendances and advanced ticket sales.

• G roup operating profit is up by 11 percent to £22.0 million (2012: £19.8 million), a new record. This is driven by the same factors as the increase in turnover, combined with strong cost control performance across all areas of the business.

This was achieved despite a record £18.2 million reinvestment back into the sport through prize money and a range of one-off investments such as in brand development, which is expected to generate strong future returns for the business.

• Total interest payable has increased by £0.9 million due to the impact of the successful Retail Bond launched during 2013, which raised £24.6 million. The interest payments are a combination of cash and rewards points. This is partly offset by the lower interest cost on its bank debts from paying down the bank overdraft and the Revolving Credit Facility during the year.

• Through careful management of its Estate, the Group also realised a profit on sale of property assets of £0.6 million.

•N et profit after share of associates was £12.7 million (2012: £11.7 million). This includes its share of profits from Amalgamated Racing (Turf TV).

•J ockey Club Racecourses turnover growth was driven in part by strong performances at several of its festivals, including the Cheltenham Festival, Tingle Creek Christmas Festival and the QIPCO Guineas Festival all showing improved performance on 2012.

•A total of 361 fixtures were staged in the year, with 11 fixtures abandoned due to the weather.

•H ospitality and restaurant revenues were also higher in the latter part of the year and the turnover is boosted by increases in industry funding which have been reflected in higher prize money distributions. On an underlying basis, adjusted for a £3.9 million increase in industry funding, Jockey Club Racecourses turnover was up 9.5 percent.

•J ockey Club Estates recorded 5 percent annual turnover growth to £5.8 million (2012: £5.5 million), driven by record horse numbers at Newmarket (up 3.9 percent) and Lambourn (up 7.7 percent).

This was an excellent achievement and is tribute to the investment in and quality of the facilities the business offers.

Performance at the Jockey Club Rooms was also strong, despite being closed for refurbishment in Q1.

•T urnover at The National Stud was £2.3 million, down slightly on 2012 (£2.6 million). This reflected marginally weaker demand for its three stallions and lower stud fees than prior year. However, the performance of Dick Turpin on his visit to the southern hemisphere was strong and the reduction was partly negated by other revenue streams, in particular from spelling and boarding horses and in the education arm of the business.

•N on-racing revenues grew by 6.8 percent to £23.7 million (2012: £22.2 million), with growth driven by the Epsom Hotel and Jockey Club Rooms.

•T otal prize money at Jockey Club Racecourses increased by 17.8 percent, to £41.6 million (2012: £35.3 million).

• I n line with its commitment to invest all profits back into the sport, the Group again increased its prize money contribution from its own funds during the year to a record £18.2 million (2012: £16.5 million). This represented 44 percent of the total prize money available on its racecourses and helped to sustain above industry average field sizes.

•T he average prize money paid per raceday fixture was £115,000, an increase of £10,000 per fixture.

GROUP OPERATING PROFITS BREAKDOWN 2011 £m THE JOCKEY CLUB JOCKEY CLUB RACECOURSES JOCKEY CLUB ESTATES THE NATIONAL STUD TOTAL

2012 £m

2013 £m

0.1

0.1

0.1

18.4

18.8

21.0

0.6

0.2

0.6

0.1

0.7

0.3

19.2

19.8

22.0

•T he Group has utilised its strengthening balance sheet and improved underlying financial performance to continue its strong record of capital investment in facilities.

• In 2013, total Jockey Club Racecourses capital investment was £7.7 million (2012: £6.2 million), reflecting initial investment in the Cheltenham grandstand project, investment in The Jockey Club brand and improvements to other facilities across the business, including replacing the frames of Grand National fences at Aintree to enhance safety.

• The Jockey Club has now invested more than £175 million in the last 10 years in upgrading and improving its infrastructure and facilities as a Group, improving the customer experience and driving both racing and non-racing revenues in the medium and long-term.

CAPITAL INVESTMENT – JOCKEY CLUB RACECOURSES £4.3m 2011

£7.7m

£6.2m

2013

2012

DEBT 2011 £m

2012 £m

2013 £m 68.2

BANK LOANS

84.1

81.5

LEVY BOARD

8.2

4.7

4.3

RETAIL BOND

0.0

0.0

24.6

92.3

86.2

97.1

TOTAL

GROUP CASHFLOW

NET CASHFLOW FROM TRADING

2011 £m

2012 £m

2013 £m

9.2

13.5

13.6

0.4

0.3

0.3

NET CAPITAL EXPENDITURE

(6.5)

(5.9)

(6.5)

NET INTEREST PAID

(4.4)

(4.3)

(5.0)

BOND ISSUE

0.0

0.0

24.6

NET LOAN REPAYMENTS

(3.3)

(2.8)

(12.5)

(DECREASE)/INCREASE IN CASH

(4.6)

0.8

14.5

DIVIDENDS RECEIVED

•G roup operating profit grew from £19.8 million to £22.0 million, despite a continued challenging economic environment and impacts on attendances caused by the adverse weather in the early part of the year.

• Jockey Club Racecourses accounted for a significant proportion of this increase, driven by the factors referred to above, with media revenues and Festival performances being particularly prevalent.

• Jockey Club Estates performed strongly with the uplift in horse volumes noted above driving a £0.4 million increase in operating profit to £0.6 million, achieved despite £0.3 million of investment into facilities across both locations. This reinvestment is strategically important for the long-term health of the sport and is in line with the core values of the business.

• The National Stud continues to generate a profit. Operating profit of £0.3 million was £0.4 million behind the exceptional year of 2012 with income from stallion nomination fees down. However, the order book for 2014 looks stronger and the business grew its boarder and speller volumes and also its education arm.

•B ank debt was reduced by £13.3 million as a result of the normal repayment of a tranche of the long-term loan facility, combined with the repayment of both the Group’s overdraft and revolving credit facility in full. This was in line with the strategy of paying down higher interest cost facilities to reduce the overall financing impact of Group borrowings.

• The year-end debt position has increased by £10.9 million to £97.1 million, reflecting the addition of the Retail Bond issued in Q2 2013, but partly negated by the repayment of some bank facilities as the Group continues to repay its debt obligations in line with, and in some case ahead of, contracted timescales.

• D uring 2014, the Group will begin to draw down on further bank debt to fund the Cheltenham grandstand investment, along with the Retail Bond. The terms of this debt were agreed with its banking syndicate in January 2014.

•G roup cashflow from operating activities was £13.9 million (2012: £13.5 million). This reflects the higher operating profit delivery as well as a lower level of waived income from the Horserace Betting Levy Board.

• A dividend was received from Turf TV via Racecourse Media Services in line with its underlying performance for the year.

• N et capital expenditure reflects the continued investment in improving racecourse facilities, as well as the initial stages of the Cheltenham grandstand redevelopment.

• The successful issue of the Retail Bond in mid-2013 materially changed the Group’s cash position as it builds towards the key period of investment for the Cheltenham grandstand project.

• In the short term, some of the excess cash has been used to pay down the overdraft and revolving credit facilities, the two most expensive sources of debt funding.

17

THE JOCKEY CLUB BOARD OF STEWARDS Stewards are Members of The Jockey Club appointed to the Group’s main board in order to oversee the strategic direction of The Jockey Club and the performance of its executive team.

The historic titles of ‘Stewards’ are a reminder of The Jockey Club’s role today in the commercial stewardship of British racing and its past regulating the rules of the sport.

From left to right: Nicholas Jones Steward The Hon. Peter Stanley Steward Mike Street OBE Steward Andrew Merriam Deputy Senior Steward Julia Budd Steward The Lord Daresbury Steward Nicholas Wrigley Senior Steward (until July 2014) Roger Weatherby Steward (Senior Steward from July 2014)

Nicholas Wrigley Senior Steward (until July 2014)

The Lord Daresbury Steward

Mike Street OBE Steward

Nicholas Wrigley was elected to The Jockey Club in 1994 and appointed a Steward in January 2006. He became Senior Steward in July 2009 and completes his five-year-term in July 2014.

Peter Daresbury was elected to The Jockey Club in 1984 and appointed a Steward in 2013.

Mike Street was elected a Member of The Jockey Club in December 2011 and appointed a Steward in 2014.

Peter is Chairman of The Jockey Club’s Haydock Park Racecourse, having held the same position at Aintree Racecourse for 25 years. He is also Chairman of Stellar Diamonds plc, Nasstar plc, Mallett plc and Auriant Mining AB and a non-executive director of Bespoke Hotels Ltd, Rusant Ltd, and Gamucci Ltd.

He retired as Director of Customer Services and Operations and as an executive member of the main board of British Airways plc in 2005 following a distinguished 42-year career with the airline.

Nicholas is Executive Vice Chairman of N M Rothschild & Sons Limited and Group Chairman of Persimmon plc.

He is a non-executive director of the York Race Committee, where he was Chairman until 2011, and is a nonexecutive director of Pontefract Park Race Company. He has also acted as a Racecourse Steward at both York and Pontefract and he previously served on British racing’s Disciplinary Panel from 2002 to 2004.

Andrew Merriam Deputy Senior Steward Andrew Merriam was elected to The Jockey Club in 1997. He is Chairman of Jockey Club Estates and was first appointed a Steward in 2003. He became Deputy Senior Steward in January 2014.

Andrew is Chairman of his family company, a West Country-based building supplies business, and a director of a number of other companies, including Fakenham Racecourse.

He is an independent regulatory director of the British Horseracing Authority and Chairman of its Rules Committee. He has acted as a racecourse steward at Cheltenham, Newmarket, Fakenham, Southwell and Yarmouth.

Julia Budd Steward Julia Budd was elected to The Jockey Club in 2008 and appointed a Steward in 2012.

Julia is a founding partner of international executive search firm The Zygos Partnership. She previously ran the Board Practice at Egon Zehnder International and was a Senior Consultant at Bain & Company.

She is a Trustee of the British Horseracing Education and Standards Trust (BHEST) and a racecourse steward at Epsom Downs, Kempton Park and Windsor.

From 1997 to 2000 he was Chief Executive of the Greenalls Group and non-executive Chairman of The De Vere Group plc from 2000 to 2006.

Nicholas Jones Steward

He became Chairman of The Jockey Club’s Sandown Park Racecourse in 2013, after more than five years as Chairman of Kempton Park Racecourse. He is also Chairman of the ACT Foundation and non-executive director of Boxford Investments, WSH Group Ltd and Hall & Woodhouse Ltd.

Nicholas Jones was appointed a Member of The Jockey Club in 2007 and appointed a Steward in 2011.

Roger Weatherby Steward (Senior Steward from July 2014)

Nicholas retired as Vice-Chairman of investment bank, Lazard, in 2010.

He was Chairman of The National Stud from 1991 to 2000, Deputy Chairman and senior independent director of Ladbrokes plc, non-executive director of Candover Investments plc and non-executive director of Newbury Racecourse plc.

Roger Weatherby was elected to The Jockey Club in 2007 and appointed a Steward in 2013.

Today, he is an independent nonexecutive director of the British Horseracing Authority and owns Coln Valley Stud in Gloucestershire.

He has been Chief Executive of Weatherbys Bank since 2000 and is the Chairman of The Racing Foundation, the new grant-making charity set up to provide funds for charitable causes within, and associated to, the Thoroughbred racing and breeding industries, via British racing’s share of the net proceeds from the sale of the Tote.

The Hon. Peter Stanley Steward

Previously he was Chairman of The Jockey Club’s charity, Racing Welfare.

Peter Stanley was elected a Member of The Jockey Club in December 2001 and appointed a Steward in 2014.

Peter owns and manages New England Stud in Newmarket, where he has been in residence since 1983. He bred Maarek, the winner of the 2013 Prix de l’Abbaye. He also manages Stanley House Stud, where he bred seventime Group 1 winner, Ouija Board.

He is Chairman of the Jockey Club Rooms and the New Astley Club, which provides facilities and services to Stable and Stud staff.

Peter is also a non-executive board director of Jockey Club Estates and was previously on the board of The National Stud, the Thoroughbred Breeders’ Association and the Animal Health Trust.

19

OUR PEOPLE The Jockey Club’s success is down to its people.

Today, they are the heartbeat of The Jockey Club.

Images from left:

Simon Bazalgette Group Chief Executive

Simon is responsible for The Jockey Club’s strategic direction and business performance, including maximising commercial return to reinvest back into the sport. He is also Chairman of Jockey Club Racecourses. Previously he was the founding Executive Chairman of Racecourse Media Group and formerly Chief Executive of the Sony, Time Warner and BskyB digital broadcasting venture, MusicChoice Europe.

Nevin Truesdale Group Finance Director

Scott Bowers Group Director of Communications Linda Bowles Group HR Director David Dommett Group Information Services Director Tom Manners Sales and Marketing Director

Nevin is responsible for all aspects of the Group’s financial planning, reporting and control. He joined in August 2013. Direct reports include The Jockey Club’s Financial Controller, Regional Finance Directors, Shared Finance Centre, Group Purchasing, Payroll and Business Services functions. Previously he was Finance Director of British Gas Residential Energy and Commercial & IT at Centrica plc.

Richard Norris Group Racing Director

Paul Fisher Group Managing Director, Jockey Club Racecourses

Dickon White Group Betting Director

Paul is responsible for the performance of the UK’s leading racecourse group, while contributing to The Jockey Club’s executive management and business strategy. Paul joined in 2000 as Finance Director of Epsom Downs, Kempton Park and Sandown Park. In 2010, he appeared as the ‘Undercover Boss’ for Channel 4’s hit television series.

William Gittus Group Property Director; Managing Director, Jockey Club Estates

William is responsible for the management and development of property assets across the Group. He is also Managing Director of Jockey Club Estates which manages more than 5,000 acres, including 3,000 acres of Training Grounds at Newmarket, Lambourn and Epsom Downs, and the historic Jockey Club Rooms. He joined The Jockey Club in 2006 and is a qualified Chartered Surveyor. He is a former officer in the Gurkhas.

Brian O’Rourke Managing Director, The National Stud

Brian is responsible for the management of The Jockey Club’s breeding and education arm. The National Stud was acquired by The Jockey Club from Government in 2008 and turned from a loss-making to a profitable concern, operating for the good of the Thoroughbred breeding industry. Brian joined at that time after working extensively in the breeding industries of Ireland and the USA.

Lesley Graham Chief Executive, Racing Welfare

Lesley is responsible for the charitable activities and fundraising of The Jockey Club’s charity. Each year, Racing Welfare offers support to racing’s people in need, whether in work or having retired from the sport.

Lesley took up the role at the start of 2013, having been a Channel 4 Racing presenter since 1993. Previously she spent several years as a practising commercial lawyer.

Stephen Wallis Group Director of International and Racing Relations

John Baker North West Regional Director, Jockey Club Racecourses Ian Renton South West Regional Director, Jockey Club Racecourses Amy Starkey East Regional Director, Jockey Club Racecourses Rupert Trevelyan London Regional Director, Jockey Club Racecourses Nick Campbell Chief Operations Officer, Jockey Club Catering Christopher Foster Keeper of the Match Book

Training and development

Across a range of roles, more than 500 people are employed

by The Jockey Club nationwide on a permanent or fixed-term basis, supported by more than 10,000 temporary raceday staff each year.

More than 25 percent of permanent employees have worked for the Group for 10 years or more. The Jockey Club is proud of its loyal workforce, which the Group attributes to ongoing commitment to, and investment in, the training and development of its people.

The Jockey Club endeavours to support and promote the career progress of its employees. Throughout the Group there are numerous examples of progression into specialist and management positions, including to Board level. In 2013, Jockey Club Racecourses was successfully reassessed for Investors in People Accreditation.

As part of its ongoing commitment to training, The Jockey Club once again supported the Racing Academy during 2013, with six employees attending the industry-wide programme. Launched in 2009, the scheme provides opportunities for individuals wishing to progress to more senior positions and has proven a major success.

In addition, the Group continued to run high-level workshops on Managing Performance for all senior managers during 2013. These sessions continue to ensure The Jockey Club’s people are managed and motivated effectively throughout the Group.

Focus on

Diversity and equal opportunities

During 2013, The Jockey Club staged an Employee Forum at Cheltenham Racecourses open to all permanent employees, with more than 300 attending. This provided opportunities to discuss the Group’s performance, future plans and achievements of its people.

The Jockey Club’s five Values were re-launched in early 2013 based on feedback from employees. The simple set of internal Values were first introduced in 2010 and are aspirations to unite each member of staff to enable the Group to achieve its vision for British racing to be the best in the world for many years to come.

During 2013, a set of behaviours were established to help employees understand how each of the Values could be demonstrated in their role. Furthermore, the Values have become the focus of a new performance review scheme, called ‘Being the Best’, which establishes individual development and training needs across the business, whilst further embedding the Values within the Group.

The Jockey Club’s strong emphasis on celebrating and rewarding achievements was demonstrated through a variety of incentive schemes.

Two Group-wide quarterly awards are presented to the Employee and Team of the Quarter and the annual BEST Awards were introduced at the 2013 Employee Forum.

The Jockey Club is an equal opportunities employer.

The Group strives towards a workplace where people can be themselves; celebrating the individuals in the business and recognising everyone is unique.

It is important to The Jockey Club that the business culture is one where people’s differences are respected

and celebrated. Not only do these principles ensure The Jockey Club’s people operate in a welcoming and pleasant environment, but they enable the Group to attract and retain talented people from a diverse range of backgrounds.

21

JOCKEY CLUB RACECOURSES

2013

Highlights

84%

OF BRITAIN’S GRADE 1 QUALITY JUMPS RACES

42%

OF BRITAIN’S GROUP 1 FLAT RACES

1.74M

ANNUAL ATTENDANCES

JOCKEY CLUB RACECOURSES WELCOMED 1.74M PEOPLE IN 2013 23

RECORD £18.24M PRIZE MONEY

Image: Sky Lantern and Richard Hughes winning The Kingdom Of Bahrain Sun Chariot Stakes at Newmarket’s Rowley Mile Racecourse in 2013.

JOCKEY CLUB RACECOURSES Board of Directors

Jockey Club Racecourses is the UK’s leading racecourse group by turnover, number of racecourses, attendances, quality racing (Group and Graded), contribution to prize money, total prize money and field sizes.

Simon Bazalgette Chairman Paul Fisher Group Managing Director John Baker Scott Bowers Linda Bowles William Gittus Tom Manners Richard Norris Ian Renton Amy Starkey Rupert Trevelyan Nevin Truesdale Stephen Wallis Dickon White

2013 figures RACECOURSES BUSINESS PERFORMANCE

TURNOVER OPERATING PROFIT

2011 £m

2012 £m

2013 £m

132.0

142.1

158.7

18.4

18.8

21.0

2011 £m

2012 £m

2013 £m

FIXTURES AND PRIZE MONEY

FIXTURES STAGED

365

336

361

% OF INDUSTRY TOTAL

24.7

24.6

25.2

JCR’S CONTRIBUTION TO PRIZE MONEY £M

16.4

16.5

18.2

% SHARE OF JCR’S CONTRIBUTION TO INDUSTRY PRIZE MONEY

36.4

35.9

37.6

11.7%

YEAR-ON-YEAR GROWTH IN TURNOVER

The group stages many of British racing’s crown jewel fixtures, while investing in competitive racing at all levels of the sport. Its 15-strong nationwide portfolio of racecourse venues, which includes Aintree, Cheltenham, Epsom Downs and both courses in Newmarket, also stage a series of non-racing events and activities, all-year-round.

In 2013, Jockey Club Racecourses’ turnover grew by 11.7 percent year-on-year to a record £158.7 million.

Operating profits increased to a record £21.0 million, up 11.7 percent annually.

This was achieved despite Jockey Club Racecourses making a record contribution from its own resources to prize money of £18.24 million and bad weather reducing advanced and walk-up sales causing the abandonment of 11 fixtures, including Cheltenham’s New Year’s Day fixture that welcomed 32,000 people in the prior year.

Additionally, fewer ‘racing plus music’ nights were staged due to the unavailability of suitable artists and the UK economy experienced low percentage growth during 2013.

The improved performance was driven by admissions revenues, which increased thanks to enhancements to the mix of packages available to customers and the performance of festivals such as the Cheltenham Festival, The Investec Derby Festival, the QIPCO Guineas Festival and the Tingle Creek Christmas Festival; improved media incomes from a combination of Turf TV, Racing UK and domestic and international rights; and significant increases in hospitality revenues on racedays. The Group also received £3.9 million in increased industry funding in 2013, which passed straight through into the total prize money available at its courses.

Jockey Club Racecourses again staged a quarter of the British racing

25

JOCKEY CLUB RACECOURSES (cont) The Group contributed an industry-leading and record sum of £18.24 million from its own resources.

This represented almost 40 percent of all racecourses’ contribution to prize money in British racing during 2013, from staging 25 percent of the fixture list.

calendar through 361 racedays in 2013, welcoming crowds of 1.7 million in the process.

Record contribution to prize money

Jockey Club Racecourses distributed total prize money of £41.6 million in 2013 across its 361 staged fixtures, which equates to an average of £115,000 per fixture; an increase of £10,000 on 2012.

Within this, the Group contributed an industry-leading and record sum of £18.24 million from its own resources. This represented almost 40 percent of all racecourses’ contribution to prize money in British racing during 2013, from staging 25 percent of the fixture list.

Jockey Club Racecourses was responsible for £1.7 million (68 percent) of the total £2.5 million increased contribution from racecourses in 2013. In the five years since 2009, Jockey Club Racecourses has increased its contribution to prize money by £5.8 million or 47 percent (2009: £12.4 million).

This, coupled with its investment in racing surfaces and the experience it provides to horsemen, continues to have a material impact on average field sizes (average runners per race) at its racecourses. In 2013, average field sizes across Jockey Club Racecourses’ Jumps programme were 9.4 runners per race versus an average of 8.7 for the rest of the industry. Similarly, its Flat fixtures attracted 9.3 runners per race compared to 8.9 elsewhere.

Since 1st January 2014, The Jockey Club’s racecourses have been given ‘Premier’ status by The Horsemen’s Group as an indication of the Group’s unparalleled contribution to prize money and its future commitment.

The Jockey Club’s planned 2014 prize money contribution exceeds the level committed to when signing up to The Horsemen’s Group Premier Tier prize money agreement in September

2013. It expects to increase its contribution to £19.5 million from its own resources in 2014, subject to fixture abandonments.

The Jockey Club continues to invest significantly in enhancing its race programme at all levels.

For example, Sandown Park now stages the upgraded Grade 1 bet365 Celebration Chase as part of its new-look bet365 Jumps Finale fixture, Jockey Club Racecourses’ smaller courses in 2013 each staged a new midweek card featuring a race worth at least £25,000 and The Jockey Club has also continued to fund its popular Grassroots Series across both Flat and Jumps.

Standout events

2013 was another strong year for Jockey Club Racecourses’ festivals and standout days.

For example, in March, The Festival attracted crowds of 235,125 to Cheltenham, including a record first three days and a sold out 67,570 on Gold Cup Day, capped to provide an appropriate level of customer experience. More than 30,000 people descended on Newmarket’s Rowley Mile for the QIPCO Guineas Festival in May – an increase of 20 percent year-on-year. QIPCO 2000 Guineas Day attracted its largest crowd since 2008 and QIPCO 1000 Guineas Day welcomed its largest attendance since 2005.

In June, Investec Derby Day was an all-enclosures sell-out among a crowd of more than 150,000 across the two days of the Investec Derby Festival at Epsom Downs. Attendances over the three days of the July Festival at Newmarket’s July Course have increased by almost 14 percent since the inclusion of a Saturday in 2011.

Also in the summer, Haydock Park welcomed its record attendance for a ‘racing plus music’ night when almost 19,000 people enjoyed racing followed by a performance by Madness.

Racing events at The Jockey Club’s smaller courses also delivered a selection of impressive attendances.

This included the crowd for Huntingdon’s August family raceday increasing by 33 percent year-onyear, Wincanton’s Boxing Day fixture attracting in excess of 2,000 more than 2012 and Market Rasen charted a record music night audience for racing followed by McFly, with attendance up more than 33 percent compared to the same fixture in 2012.

Value for money

A price-comparison index produced by Deloitte for the Racecourse Association found that a day at the races costs significantly less than other major sports and other competing leisure activities in the UK, when comparing like-for-like events.

For example, admission to a midweek race meeting can cost as little as £4.

Deloitte found racing can cost just £13 for a high-profile Saturday fixture whereas the lowest priced adult matchday ticket for a Premier League game was £33 rising to £64.

Rewards4Racing

By the end of 2013, The Jockey Club’s unique loyalty programme, Rewards4Racing, had more than 310,000 members.

Established in 2011, Rewards4Racing aims to increase the frequency of visit and spend among Jockey Club Racecourses customers, rewarding those who are regular visitors to one of its racecourses nationwide.

Rewards4Racing points can be earned on advance purchases at any of the Group’s 15 racecourses and from everyday spending online and in-store at more than 3,500 retailers in the UK. These can be redeemed for rewards including free or discounted tickets, restaurant packages, hospitality, annual memberships and a range of unique experiences.

In 2013, Rewards4Racing members earned £1 million worth of rewards, which was an increase of 100 percent on 2012. These members spent £18 million on tickets at Jockey Club Racecourses.

As a demonstration of the loyalty programme’s value, one third of all Rewards4Racing members who redeemed their points in 2013 were ‘reactivated’ Jockey Club Racecourses customers who had not purchased a ticket to any racing fixture within the previous year.

2013 was also the first year of an already successful exclusive betting partner agreement with Coral, which saw them sign up more than 7,800 new accounts with people who staked bets in excess of £25 million. The Racegoers Club joined Racing UK, the Racing Post, the Racecourse Owners Association and Coral as a Key Partner of Rewards4Racing.

Rewards4Racing was also a key component of the success of The Jockey Club Racecourse Bond offer, with an optional 3 percent

Focus on

The Jockey Club Racecourse Bond

The bond offer surpassed The Jockey Club’s target of £15 million to raise nearly £25 million.

interest per annum paid to Bondholders in Rewards4Racing points, over-and-above the product’s 4.75 percent annual cash interest.

Jockey Club Catering

Jockey Club Catering is a partnership between Jockey Club Racecourses and Compass Group, formed in 2009 to provide top quality catering, hospitality and service at 15 racecourses nationwide.

Now integral to The Jockey Club’s customer offer, the venture’s solid financial results continue to grow year-on-year.

In 2013, Jockey Club Catering generated a circa 3 percent increase in turnover. Its non-raceday revenues grew by 3.5 percent to account for more than 20 percent of total catering revenues in 2013. Continued operational improvements and efficiencies, especially in sourcing, have helped profits to increase by 4.5 percent year-on-year.

In April 2013, The Jockey Club launched the first retail bond – or ‘mini bond’ – in British sport to raise capital to invest in its £45 million development at Cheltenham Racecourse.

The Jockey Club Racecourse Bond is a financial product now providing investors with a return of 7.75 percent interest each year on their investments of between £2,000 and £100,000.

Its competitive headline rate was split into a 4.75 percent p.a. cash return and an optional further 3 percent p.a. paid through The Jockey Club’s Rewards4Racing loyalty programme to use to buy items such as tickets, hospitality, restaurant packages and annual memberships at the Group’s 15 racecourses.

Upon its close, the bond offer surpassed The Jockey Club’s target of £15 million to raise nearly £25 million. This is the second largest retail bond issue ever, after John Lewis’ success in 2011.

Industry commentators noted the success of the Racecourse Bond offer demonstrated a high level of trust in The Jockey Club’s historic brand and the modern, commercial approach it

Since its inception, the partnership has invested more than £6 million in improving catering facilities and enhancing the experience offered to customers. In 2013, more than £1 million was committed to developing facilities, including café conversions involving Costa Coffee, retail food and bar upgrades at Wincanton, Nottingham, Cheltenham and Newmarket and the new Country Kitchen deli concept at Haydock Park.

In addition, The Jockey Club’s nationwide owners and trainers project has been supported by enhanced facilities at Kempton Park, with future plans for investment at several other courses. A major project delivered in 2013 was the £400,000 Logistics Hub at Cheltenham Racecourse. This is a 1,200m2 purpose-built storage facility that has enabled greater control over kitchen equipment and small wares, whilst greatly reducing hire costs for one of the Group’s busiest racecourse and events venues.

takes today to achieve strong financial performance.

94 percent of Bondholders chose to take up their allocation of Rewards4Racing points, providing The Jockey Club with the opportunity to get closer to them as customers at its courses.

The communications campaign to raise the desired capital – and enhance The Jockey Club’s reputation in the process – was awarded with both a PR Week and a PRCA Award and has been shortlisted for Best Use of PR at the Sport Industry Awards (result May 2014).

27

Images from top: Sire De Grugy on his way to winning the BetVictor Queen Mother Champion Chase at Cheltenham in 2014.

Al Kazeem and James Doyle winning The Coral Eclipse at Sandown Park in 2013.

Image: Lethal Force wins The Darley July Cup in 2013 at Newmarket’s July Course from Society Rock.

29

JOCKEY CLUB RACECOURSES (cont) The Jockey Club has invested more than £150 million in the last 10 years in new and upgraded facilities within Jockey Club Racecourses, within an overall capital investment programme of £175 million across its Group.

Racecourse Chairmen The Hon. Rose Paterson Aintree James Westoll Carlisle Robert Waley-Cohen Cheltenham Anthony Cane Epsom Downs Jeremy Colson Exeter The Lord Daresbury Haydock Park Paul Taiano Huntingdon Nick Mustoe Kempton Park Colin Booth Market Rasen Julian Richmond-Watson Newmarket July Course and Rowley Mile Peter Jensen Nottingham Mike Street OBE Sandown Park Andrew Clark Warwick Guy Henderson Wincanton

A key objective for Jockey Club Catering is to listen to and act on customer feedback. An online questionnaire Are We Winning has proved highly successful with more than 16,000 responses in 2013. Using this comprehensive insight, customer strategy has been refined according to people’s needs in areas such as reducing queuing, additional seating initiatives and rapid response to any unfavourable comments. Overall, customer satisfaction has risen year-on-year by 3 percent.

Training and customer service remain at the forefront of Jockey Club Catering’s success with more than 3,500 recruits receiving in excess of 11,000 hours of training ahead of working at the Group’s main festivals at Aintree, Cheltenham and Epsom Downs. The academy continues to grow and nurture Jockey Club Catering trainees, with several graduates now on accelerated career paths and taking on full-time operations roles.

2014 has already seen culinary enhancements and growth including the creation of luxury restaurants at Cheltenham and Epsom Downs, hosted by Albert and Michel Roux Jr and a Street Food concept, which retails fashionable and themed curry, hot-dogs, paella and even pizza from a converted 1971 Austin Mini.

The success, development and commerciality of the venture has led to a pre-emptive extension to the agreement between Jockey Club Racecourses and Compass until at least 2025, which will help Jockey Club Catering to continue to grow and succeed.

Jockey Club Live

Following a competitive tender process in 2013, The Jockey Club announced the launch of Jockey Club Live at the start of 2014. This is a new joint venture partnership with a team of leading music industry professionals

for the provision of live music and entertainment at Jockey Club Racecourses and, for the first time and where appropriate, venues outside the Group.

In recent years, ‘racing plus music’ nights have been an important source of revenue for Jockey Club Racecourses, helping it to contribute record amounts to prize money.

In 2013, through its previous supplier-based relationship with Liz Hobbs Group to book acts and manage production, Jockey Club Racecourses welcomed more than 220,000 people to 23 music nights. This made the Group the 6th largest music promoter in the UK3. These events once again proved highly profitable and an excellent means of attracting visitors to its racecourses, in some cases for the first time.

Non-racing events and activities

The Jockey Club has invested more than £150 million in the last 10 years in new and upgraded facilities at its racecourses, within an overall capital investment programme of £175 million across its Group.

This continues to allow Jockey Club Racecourses’ teams to drive revenues from non-racing events and activities, such as conferences, launches, exhibitions, meetings and other events, with further business generated from leisure pursuits available at some locations within the estate, including golf, karting, dry slope skiing and equestrian sports.

In 2013, non-racing revenues increased to £23.7 million from £22.2 million in 2012. This helped to drive an increase in operating profits, despite challenging conditions in this marketplace. >

3

According to Pollstar

Images from top: More than 220,000 people attended The Jockey Club’s music nights during 2013.

Deputy Dan wins the Neptune Investment Management Hurdle at Warwick on his way to compete in the 2013 Cheltenham Festival.

31

Images from top: Champion Jockey AP McCoy made history in 2013 by riding his 4000th winner.

Gordon Lord Byron winning The Betfred Sprint Cup in 2013 at Haydock Park.

Major investments

In 2013, £7.7 million of capital was invested in new and upgraded facilities across The Jockey Club’s racecourse estate.

In 2014, this will increase significantly with the main works underway to develop a £45 million state-of-the-art new grandstand at Cheltenham Racecourse in line with its status as a world-class sports venue. Expenditure will be spread through until 2016, when the project is completed ahead of The Festival that year, while financing for the development will be spread over several years.

Prior to The Festival 2014, The Jockey Club announced the full £45 million of funding was in place for the development project, which amounts to the largest single investment in its history. This capital was raised through a combination of The Jockey Club Racecourse Bond, which raised nearly £25 million, and bank financing via The Jockey Club’s syndicate banks – HSBC, AIB and RBS, a Levy Board capital fund loan and the Group’s available cashflow from trading.

Focus on

Point-to-Pointing

Point-to-Pointing in Britain had another good season in 2012/13, despite concerns of declining horse and rider numbers. It was inevitable recessionary times would bite hard eventually and the season saw a 10 percent fall in horse numbers.

In 2012/13, 22 fixtures were lost from the 199 scheduled, and a further 25 were rearranged due to bad weather.

Despite this, runner numbers held up well overall. From 40 Novice Rider races during the current season, only six had fewer than seven runners, while more than half achieved double figures; with some races even dividing. To redress the concern of falling horse numbers, the Point-to-Point Authority (PPA) has put in place new initiatives, such as using enterprising race conditions at some fixtures to keep

Leading construction firm Kier has been appointed main contractor for the development, with its Cheltenham office leading the project. With principal architects Roberts Limbrick also based locally, the development will have the maximum possible local boost for employment and the wider economy.

Important investments have been made on changes to the Grand National Course at Aintree. While it is impossible to remove all risk from any sport, the evidence-based modifications have contributed to two Grand Nationals free from welfare issues.

While more than £150 million of capital projects have been completed across The Jockey Club’s racecourse estate over the last 10 years, the Group recognises the importance of continuing investment to provide customers and participants with the best experience and to ensure its ability to generate revenues for reinvestment back into British racing.

In line with this, in 2014 a range of capital projects are being funded in addition to Cheltenham. In addition to investments in facilities and new

initiatives to promote British racing, The Jockey Club will also continue to invest in unlocking new and increased brand-related revenues, and realising returns from this during 2014.

up entry and runner numbers.

The PPA maintains responsibility for the administration, promotion, management and development of the sport. The organisation remains the administrator for the Riders Qualification Certificate application and discussions continue on the divisions of responsibility with the British Horseracing Authority.

Further promotion of Point-toPointing has been enhanced through the sport’s digital platforms. More funding was granted to the sport from the British Horseracing Grant Scheme, funded by the proceeds of the sale of the Tote, with the money used for training.

In early 2012, despite changes to racing Under Rules, the PPA decided to leave the Whip Rules unchanged.

During the 2013 season, offences remained low and stipendiary stewards reported amateurs riding in hunter chases continued to ride well.

During 2013, 178 Pony Races were staged across 75 Point-to-Point fixtures, an increase from 2012.

Membership to the Pony Racing Association remains steady.

The Jockey Club continued its support through sponsorship

of the Mares Maiden Series.

Average numbers exceeded a healthy eight runners per race and the Series remained popular.

As part of the sponsorship, The Jockey Club offers a double prize money opportunity of up to £10,000 for the winning horse’s next run at Jockey Club Racecourses nationwide. This sponsorship has been renewed for 2013/14.

There are now people investing in untried horses, showing their value with runs at Point-to-Point courses and then marketing them into National Hunt yards at prices previously only achieved by Irish maiden winners. Many ex-chasers continue their careers in the pointing field.

The PPA continues to run at a small annual profit. The sport is moving ahead in the right direction and continues to attract a substantial following.

Operational structure

2013 was the first full year of Jockey Club Racecourses operating under a regional management structure, supported by Group functions, after introducing the approach in 2012. This more efficient structure, which groups racecourses into four clusters – the East, South West, North West and London – directly contributed to Jockey Club Racecourses’ record business performance both through revenue generation and reducing and controlling costs.

33

JOCKEY CLUB ESTATES

2013

Highlights

5,000 ACRES OF LAND

3,000

ACRES OF TRAINING GROUNDS

90+

PROPERTIES

35

Image: A new record number of horses used Newmarket’s Training Grounds in 2013.

JOCKEY CLUB ESTATES Board of Directors

The Jockey Club’s property and land management arm, Jockey Club Estates is responsible for more than 5,000 acres of land, including more than 3,000 acres of world-class racehorse training grounds at Newmarket, Lambourn and Epsom Downs, and a substantial property portfolio that includes the historic Jockey Club Rooms in Newmarket.

Andrew Merriam Chairman William Gittus Managing Director The Duke of Bedford Nick Cheyne The Earl of Halifax Alastair Macdonald-Buchanan Stuart Richmond-Watson The Hon. Peter Stanley

2013 figures ESTATES BUSINESS PERFORMANCE 2011 £m

2012 £m

2013 £m

TURNOVER

5.3

5.5

5.8

OPERATING PROFIT

0.6

0.2

0.6

HORSES IN TRAINING

Newmarket Training Grounds

Horses in training Horses trained on JCE facilities* *12 month average

15,080

14,992

2,927

2,798

2013

2012

TRAINING GROUNDS Horses in training* Winners *12 month average

NEWMARKET 2,172

1,732

2,195

2010

1,685

2,276

2011

1,687

2,365

1,921

2013

2012

LAMBOURN 427

402

478

2010

422

522

2011

451

562

460 2013

2012

EPSOM DOWNS 174

135 2010

171

137 2011

In 2013, Jockey Club Estates’ turnover grew by 5.3 percent year-on-year to £5.8 million, largely as a result of welcoming more horses to its training grounds. This success enabled further investment into its facilities, especially in the all-weather tracks and horsewalks. As extreme weather patterns have made use of turf gallops more erratic, all-weather facilities have become even more important to the 110 regular trainers and many day visitors who use them.

151

141 2012

145

127 2013

A new record number of horses used the Training Grounds at Newmarket in 2013 for the second year in a row, growing 3.9 percent on 2012. Between 2009 and 2013, 26 new trainers and pre-trainers have set up in Newmarket and are now training more than 400 horses between them. These trainers and their horses benefit from the same world-class facilities, at the same cost, as the many Classic and Group 1 winning trainers using the Jockey Club Estatesmanaged training grounds every day.

Access to these facilities and services assists newcomers to market their services to potential owners.

As well as welcoming new faces to Newmarket, 2013 was the year in which the town said thank you and farewell to Sir Henry Cecil, who trained more Classic winners than any other and whose elegant figure was a familiar sight on Warren Hill for many years.

As well as routine refurbishments of seven tracks, the Links To Canter (used to access the schooling facilities and the Cambridge Road Polytrack) was rebuilt, a new tarmac base installed and sand replaced by a modern waxed surface. The project to rubberise concrete horsewalks continues with an extension of the rubber at the bottom of Long Hill protecting horses and any riders who become parted from their mounts. A 22-feet wide grass mower was trialled,

37

Images from top: Horses working at Lambourn.

Morning on the Newmarket Gallops.

Image: The five-furlong Whitcoombe Cushion Track in Lambourn.

39

JOCKEY CLUB ESTATES (cont) Investment in facilities at Lambourn continues to bear fruit. Horse numbers in Lambourn grew by 7.7 percent on the previous year, augmented by an increasing number of daily visitors, both from the surrounding area and, surprisingly, far afield.

and found to provide a better quality of cut and cost efficiencies. One was purchased during 2013 and a second ordered for 2014. Following two hard winters, two snow ploughs were purchased (which heralded the mildest winter for many years!).

Newmarket horses notched up 1,922 wins in 2013, including 12 Group 1 successes in the UK, Europe and America. Many of these winners were on display to the public at the Newmarket Betfair Open Day held in September, which raised £50,000 for local charities. One of the charities to benefit was the Home of Horseracing Trust, which Jockey Club Estates has supported since 2006. With the required £15 million of capital funding in place, construction of the National Heritage Centre for Horseracing and Sporting Art commenced and is due to open in January 2016. The project is expected to have a highly positive economic and regenerative impact on Newmarket and will be a focal point for the racing industry as a whole.

Lambourn Training Grounds

Investment in facilities at Lambourn continues to bear fruit. Horse numbers in Lambourn grew by 7.7 percent on the previous year, augmented by an increasing number of daily visitors, both from the surrounding area and, surprisingly, far afield.

Having considered the previous winter to be wet, 2013/14 proved to be the wettest on record, but the Jockey Club Estates team kept the Training Grounds operating with their usual dedication and stoicism.

Successes for horses using Jockey Club Estates’ gallops in 2013 include high profile Flat winners at Royal Ascot and in America, such as London Bridge’s success in the Breeders’ Cup Marathon in Santa Anita, and already in 2014 a win for Toast of New York in the UAE Derby at the Dubai World Cup Carnival.

Following the agreement of a new

longer lease of Kingsdown Polytrack, a major refurbishment of the track was carried out. Investment also focused on Fisher’s Hill to improve drainage and reduce the width of the track to facilitate better routine maintenance and provide cost savings for any future surface replacements.

On the schooling grounds, trials have been conducted on a variety of synthetic birch fences and hurdles and a new divoting policy introduced to repair used ground more quickly, as the schooling grounds get busier and busier. New-design Grand National fences were also built ahead of the 2013 running of the world’s most famous steeplechase to ensure horses and riders were well prepared.

They were used by a number of hopefuls including the 2014 Crabbie’s Grand National winner, Pineau De Re.

Epsom Downs Training Grounds

In January 2014, Jockey Club Estates took over the management of the Training Grounds at Epsom on behalf of the Epsom Downs Training Grounds Management Board from The Jockey Club’s Epsom Downs Racecourse. This will enable greater sharing of best practice and resources, including labour and machinery.

Although horse numbers training at Epsom fell slightly in 2013 compared with 2012, the early part of 2014 saw a reversal of this trend. The Training Grounds provide an important source of runners for meetings at Epsom Downs and sister course, Kempton Park.

Jockey Club Rooms

The new biomass heating system in The Jockey Club Rooms was used in earnest for the first time during winter 2013 since it was installed earlier in the year. While it was wet and miserable outside, the system performed very well, keeping the Rooms warm throughout the colder months.

This enriched atmosphere at the Rooms was further enhanced in 2013 by a well-received refurbishment of the Dining Room and the ongoing picture lighting and art restoration programme; the latter project being managed by the effervescent Guineas winning trainer, Ben Hanbury.

New additions to the Art Collection during 2013 included a portrait of champion jump jockey Tony ‘AP’ McCoy by Edinburgh-based artist Ewan McClure, which featured in the Sky Arts Portrait Artist of the Year 2013 competition, and a plaster model of the Rooms produced by leading architect, Professor Sir Albert Richardson.

Early 2014 saw a refurbishment of the historic Coffee Room, which has been used by The Jockey Club since 1752. The original banquettes have been renovated, enabling the booths around the room to be used, and an under-floor heating system installed.

Strategic planning

Jockey Club Estates supports a sympathetic and considered approach to the development of the Group’s estates and facilities, taking into consideration the current users and unique environment in Newmarket, Lambourn and Epsom Downs.

The Jockey Club Estates team works tirelessly to enable forthcoming improvements to be carried out in a carefully-planned manner, following in the footsteps of previous generations who had the vision for the Training Grounds.

Taking an active role in planning matters more globally around its locations, Jockey Club Estates represents and works alongside racing stakeholders in open dialogue with local councils and planning authorities. It is essential to British racing’s future success that planning policies are sensitive to the horse and those who care for them.

Focus on

Economic impact of Newmarket’s horseracing industry

In early 2014, a new independent study, commissioned by Forest Heath District Council and the Newmarket Horsemen’s Group, revealed that the horseracing industry positively benefits the local economy around Flat racing’s ‘headquarters’ by more than £208 million annually, as well as being responsible for more than 8,500 jobs.

The study identified racehorse trainers as the leading generators of economic activity within Newmarket and its surrounds, at just under £100 million per year (£96.8 million).

Stud farms followed by contributing £81.2 million, racing institutions generate £9.8 million annually, while visitors to Newmarket, primarily attracted by a day’s racing at The Jockey Club’s Rowley Mile or July Course in Newmarket, are calculated to contribute almost £9 million (£8.8 million), before taking into account any of their expenditure off-course. It should be noted the total economic impact figure only includes returns retained

by Newmarket and its surrounds, as opposed to the total transactions flowing through the area due to racing.

The independent study was the first ever assessment to quantify the scale and economic significance of Newmarket’s horseracing industry and its surrounds. As those in racing know well, Newmarket is home to two world-class racecourses, which welcome more than 330,000 racegoers a year and stage more Turf races than anywhere in the UK; thousands of acres of training gallops, including 2,500 acres operated by Jockey Club Estates; training yards

home to around 3,000 racehorses; stud farms, including The National Stud and those operated by Darley, Juddmonte Farms and Shadwell; Tattersalls’ sales; the National Horseracing Museum; the British Racing School, various racing associations and charities, and a number of specialist enterprises, such as horse transporters; farriers; veterinary practices; scientific laboratories and feed, hay, straw, bedding, machinery and racing equipment suppliers.

The study found that direct jobs in the racing industry, plus temporary ‘events-related’ employment at Newmarket Racecourses and Tattersalls sales, produce expenditure on wages totalling £79.7 million, equating to 38 percent of the total economic impact calculated.

Looking ahead, the study identified what it describes as ‘promising signs of potential for further growth in the horseracing industry’ around Newmarket.

A recent stud purchase by an overseas investor, seen as a growing force in the sport, is cited as expected to lead to substantial additional investment. Furthermore, The National Heritage Centre for Horseracing and Sporting Art is predicted to increase visitors and, with them, local expenditure, including discretionary shopping in Newmarket town centre.

Looking ahead, the study identified what it describes as ‘promising signs of potential for further growth in the horseracing industry’.

£208M

ANNUAL ECONOMIC IMPACT OF NEWMARKET HORSERACING INDUSTRY 41

THE NATIONAL STUD

2013

Highlights

3 OF BLOODSTOCK SOLD AT TATTERSALLS DECEMBER SALES

STALLIONS COVERING

220 MARES

18,000+

VISITORS ON PUBLIC TOURS 43

Image: The National Stud’s flagship stallion, Bahamian Bounty, continues to attract top-class mares.

THE NATIONAL STUD Board of Directors

The National Stud is The Jockey Club’s Thoroughbred breeding, boarding and educational arm in Newmarket, which provides a range of services to support the Thoroughbred breeding and racing industries.

Ben Sangster Chairman Brian O’Rourke Managing Director Christopher Foster Tom Goff The Countess of Halifax Gary Middlebrook Julian Richmond-Watson

2013 figures THE NATIONAL STUD BUSINESS PERFORMANCE 2011 £m

2012 £m

2013 £m

TURNOVER

2.0

2.6

2.3

OPERATING PROFIT

0.1

0.7

0.3

The National Stud’s vision to operate for the good of the Thoroughbred breeding industry as part of The Jockey Club remains unchanged. The National Stud team constantly strive for ways to innovate and improve the services it provides.

In 2013, The National Stud planned for a year of change and investment from the outset. In addition to taking steps to ensure its stallions remained attractive in an ever-changing bloodstock industry, the opportunity was identified to expand its highquality offering of competitivelypriced boarding services to its clients, which it achieved successfully.

Business performance

“ I have used The National Stud as a ‘spelling’ facility since I started training.

The Stud offers a wide range of facilities to cater for each individual and the horses always come back in great condition.

Brian and his team are the utmost professionals and I look forward to using The National Stud for many years to come.”

Roger Varian, Trainer

25%

GROWTH IN INCOME FROM BOARDING

Since The Jockey Club acquired The National Stud from stateownership in 2008, the business quickly developed from a loss-making organisation into a commercially sound company with a reputation for delivering first-class services.

Times remain challenging for breeders and boarding studs alike, but despite the testing operating environment, 2013 saw The National Stud achieve results far beyond budgeted performance in several areas.

In particular, income from boarding mares outside of the breeding season surpassed targeted performance budget by 93 percent and, across the year, boarding income grew by 25 percent year-on-year.

Revenue streams from The National Stud’s world-class training and education department were also strong with results higher than planned. Income from public access and tours of the Stud was also a contributing factor to the business’ successful 2013. >

45

THE NATIONAL STUD (cont) In the past five years, under the guidance of Managing Director, Brian O’Rourke, The National Stud has worked tirelessly at building a quality consignment year-on-year at the Tattersalls December Sales. The consignment in 2012 was a tremendous success and this was followed in 2013 with another standout performance with £1.4 million sold.

Stallions

The National Stud’s flagship stallion, Bahamian Bounty, continues to attract top-class mares year-afteryear. He was represented at Group level in 2013 by five Pattern-winning or placed progeny. This included Fig Roll, who took the Listed bet365 Empress Stakes at Newmarket’s July Course, Coral Mist who won the Group 3 Firth of Clyde Stakes at Ayr Racecourse, and Anjaal who provided the most prolific win of the season for Bahamian Bounty when winning the Group 2 Portland Place Properties July Stakes at Newmarket’s July Course.

Tattersalls October Yearling Sale saw BBA Ireland, the Irish Bloodstock Agency, pay 170,000gns for a Bahamian Bounty half-sister to Hawk Wing; the highest price paid for one of his yearlings at public auction since 2008. In total, his progeny earned him a yearling average for this sale of 57,654gns.

Pastoral Pursuits produced 24 individual two-year-old winners in 2013, earning him a winners versus runners strike rate of 41 percent; an increase of 8 percent from 2012.

Ventura Mist was the most frequently raced of his two-year-old crop and received black type status when winning the Listed Totepool TwoYear-Old Trophy at Redcar in October. Al Muthana and Lilbourne Lass had further Group success when finishing second in the Group 3 Prix de Cabourg Jockey Club de Turquie and third in the Listed St Hugh’s Stakes at Newbury respectively.

Pastoral Player remained Pastoral Pursuits’ highest earning offspring and added to his growing resume at Group level this year when finishing second in Haydock Park’s Group 3 Timeform Jury Stakes (registered as the John of Gaunt Stakes) and third in the Group 3 bet365 Criterion Stakes at Newmarket’s July Course.

The sales stage proved just as successful for Pastoral Pursuits in 2013 as the prior year and the Doncaster Premier Yearling Sale saw his progeny earn an average of more than £35,000.

His top three Lots all sold for £80,000 or higher with two colts bringing the top prices at £100,000 each.

Dick Turpin’s first foals were eagerly awaited in the foal sales during the winter of 2013 and they did not disappoint. With a Tattersalls December Foal Sale average of 20,755gns, and his top Lot achieving 70,000gns, The National Stud was very pleased with the sale as a whole. The National Stud continues to shuttle Dick Turpin to Mungrup Stud in Western Australia, a project spearheaded by Chairman Ben Sangster, where he covered 107 mares in the past Southern hemisphere season. Gray and Jan Williamson of Mungrup Stud continue to be delighted with Dick Turpin’s appeal in their regional market.

Stud activities

In the past five years, and under the guidance of Managing Director Brian O’Rourke, The National Stud has worked tirelessly at building a quality consignment year-on-year at the Tattersalls December Sales.

The consignment in 2012 was a tremendous success and this was followed in 2013 with another standout performance with £1.4 million sold.

The starring role went to Cast In Gold, a beautiful broodmare owned by Ben Sangster, who brought the hammer down at 350,000gns. The National Stud is enormously proud of the reputation its consignment is gaining at the sales, which is testament to the hard work and dedication of the small team of staff working behind-the-scenes and the support The National Stud receives from its clients.

Seasonal boarders and spelling horses continue to form the cornerstone of The National Stud’s operations. Numbers during 2013 increased, which, in challenging times for breeders, shows the faith The National Stud’s clients have in its services. The National Stud values its relationships with an incredibly loyal group of trainers who entrust it with their spelling horses year-after-year.

In 2013, The National Stud was privileged to house some of the Flat season’s most prolific runners: Hot Streak, Astaire, Havana Gold, Times Up and even the inimitable Moonlight Cloud all spent time resting and recuperating at The National Stud.

The National Stud also welcomed what is understood to be the first fillyfoal by the highest-rated racehorse of all time, Frankel. The filly-foal was born to the well-bred mare Song, whose owner entrusted her to The National Stud’s boarding and foaling facilities. With her owner’s permission, The National Stud was able to release the first public images of a Frankel foal, resulting in highly positive front page national news for British racing.

Audiences for The National Stud’s in-house marketing activities grew at a phenomenal rate during the last year. Its presence on social media continued to be a focus for the business and its Facebook audience grew by 87 percent while its Twitter followers increased by nearly 40 percent. Readership of The National Stud’s quarterly newsletter increases daily and gained 160 new subscribers in 2013. >

Images from top: A student at The National Stud turning out the last mare and foal in the morning during foaling season.

The National Stud welcomed the first filly-foal by the highest-rated racehorse of all time, Frankel, in early 2014.

Image by Trevor Jones of Thoroughbred Photography.

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Image: The National Stud in Newmarket.

“ Shadwell has been working with The National Stud and the Apprenticeship Scheme for a number of years and in the last year significantly stepped up our participation in the scheme by taking ten students on a two-year placement.”

Johnnie Peter-Hoblyn, Stud Manager, Shadwell Estates

Training

The National Stud’s highlyrespected training department and first-class education facilities have provided courses to support the Thoroughbred breeding industry for more than 25 years. The commercial and training departments at The National Stud collaborate closely to offer students realistic and highly practical work experience in the Bloodstock industry, which continues to be a unique experience for participants. The National Stud is extremely proud of its graduates and enthusiastic about providing relevant short courses to and for the Thoroughbred Stud industry.

The National Stud’s premier education programme, the Diploma in Stud Practice and Management, continues to recruit from a strong field of UK and international candidates.

Applicant quality was reflected in their performance throughout last year’s course and their employment post-graduation. Diploma graduates are encouraged to expand their experience with an overseas season after leaving The National Stud in June.

For 2013, all 20 of the graduates looking for work within the racing and breeding industries had confirmed positions within a month of graduating.

The roles were at a range of stud farms including Coolmore, Eliza Park and Vinery Stud (AUS), Lanes End (USA), Summerhill Stud (South Africa), Staffordstown Stud (IRE) and Cambridge Stud (NZ).

In 2013, 12 members of the annual Apprenticeship programme completed their year’s placement

and qualifications. Since finishing they have either been retained by their original employers on full-time contracts or found alternative employment within the industry.

Other educational activity at The National Stud included the continued relationship with Lycetts to deliver the ever-popular Evening Lecture Programme. Developments included new collaborations with Saracen Horse Feeds to provide a one-day Stallion Management course, and further partnership work with the Thoroughbred Breeders’ Association to deliver a one-day question and answer forum and seminar on commercial mating decisions.

Other events included the five-day Stud Secretaries and Administration Course and numerous other relevant short courses for stud staff.

Under Managing Director Brian O’Rourke and his team of highly-skilled and dedicated staff, supported by the Board of Directors, The National Stud is confident 2014 will bring further success. New opportunities to build a positive future for the Stud revolve around top-class services for Thoroughbred breeders, education for those wishing to forge a career in the industry and a chance for all to visit and experience life at one of the best known stud farms in the world.

Public access

The public access functions continue to be a great source of success and pride for The National Stud and tourism to Newmarket as a whole. In 2013, more than 18,000 guests enjoyed fun and informative guided tours, which provide a unique insight into the behind-the-scenes working of a commercial Thoroughbred stud farm.

The National Stud’s on-site coffee shop underwent a facelift in the latter stages of 2013, resulting in a larger service area and new kitchen extension. The coffee shop welcomes regular visitors and, with the introduction of Sunday roasts and catering from Christmas parties in 2013, is an exciting area of growth.

“ I have great confidence in The National Stud and their staff’s knowledge in caring for my horses. It’s a wonderfully run facility.”

George Strawbridge, Jr.

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RACING WELFARE

2013

Highlights

5,774 COUNSELLING SESSIONS

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RACING WELFARE HRH The Princess Royal President John Dunlop OBE Honorary Vice President Joey Newton Chairman of the Trustees Lesley Graham Chief Executive Trustees Simon Clarke Jacko Fanshawe Christopher Foster Gavin MacEchern Baroness Ann Mallalieu QC John Maxse Gary Middlebrook Sam Morshead Patrick Russell Patrons Simon Clarke Michael Kerr-Dineen Alan Parker Steve Parkin Erik Penser Professor Caroline Tisdall Robert Waley-Cohen Ambassadors Mike Cattermole Mark Davies Richard Dunwoody MBE The Hon. Dido Harding Lee Mottershead Nathaniel Parker

“ The team at Racing Welfare has shown me how to regain my life. I don’t want to think about where I’d be without them.”

Racing Welfare Beneficiary

£100,000 IN GRANTS PAID OUT

Racing Welfare, The Jockey Club’s charity, offers support and guidance to all racing’s people in need. Through a nationwide network of Welfare Officers the charity helps the unseen army of dedicated staff whose work is vital to British racing.

Racing Welfare had a busy year during 2013 with a number of notable achievements. Among these has been a successful revision of the charity’s management structure, which has now been streamlined to reduce the number of committees and avoid unnecessary overlaps. The new structure is based around a Chairman’s Group, consisting of Racing Welfare’s Chairman, Chief Executive, Finance Director and three Trustees. This Group liaises regularly with the Finance & Investment Committee, the Housing Committee and Senior Management.

There have been some changes in the composition of the Board of Trustees and the two newest members, Christopher Foster and Patrick Russell, are already making significant contributions.

Within the Welfare Team, Simone Sear and Sarah Hopkins have been promoted to Head and Deputy Head of Welfare, respectively, and last year’s expansion of the fundraising team is already proving fruitful with an exciting calendar of events planned for 2014.

The year ahead holds other exciting developments for Racing Welfare, including the launch of a new website and a major stakeholder survey aimed at clarifying the industry’s current view, and expectations, of the charity. The results will be instrumental in Racing Welfare’s future strategy decisions.

Focus on Welfare

Racing Welfare’s main priority continues to be to support current and former racing employees and their families at times of need. The charity is asked to help on a vast range of confidential issues. The process of providing assistance nearly always includes a number of advice sessions, allowing Welfare Officers to assess a situation and evaluate how best to empower beneficiaries to achieve a successful outcome.

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RACING WELFARE (cont) In 2013, Racing Welfare provided individual grants totalling almost £100,000. The largest portion of these grants went towards assisting people suffering from ill health, disability, accidents and injuries. At the same time, Welfare Officers helped people claim benefits and entitlements from other sources, which equated to more than £145,000.

During 2013, 5,774 sessions were conducted throughout the UK with almost 800 beneficiaries. Pleasingly, these figures have returned to those seen prior to 2011/12 when the number of beneficiaries increased significantly due to the effects of the recession on employment levels in the industry.

Head of Welfare, Simone Sear, has a stated objective to encourage people to approach Racing Welfare early so it can work with beneficiaries to prevent an escalation of problems; assisting people to move forward without the need for ongoing support.

Case study

A Racing Welfare beneficiary tells his story “I have lived in Newmarket since I was seven-years-old and started working in racing when I was 11. I worked within the industry until I left school at 16, when I started an apprenticeship as a farrier.

“My future looked bright and I made friends through my work.

We were at an age where there were regular parties and my friends were all dating. I got a lot of stick about not doing the same but I was really shy and nervous about approaching girls, let alone asking them out. I noticed it became a lot easier if I had a drink or two, and the more I drank the more my confidence grew. It seemed like the answer but, after a while, the effect lessened.

“It was around that time I first experimented with drugs. I wanted to fit in and be part of the crowd.

Change of Pace

careers in, and associated with, the racing industry. Based predominantly at the main horseracing training centres in Newmarket, Lambourn, Middleham, Malton and the West Country, the clinics were limited to a maximum of eight participants per session. These sessions took place out of working hours to minimise disruption to established stable routines and the economic implications on a small business.

Each session was attended by Rob Wylie and Racing Welfare’s local Welfare Officer. Every participant received an individual one-to-one session with the Welfare Officer, a sports psychologist or performance coach and a careers adviser, as well as participating in group sessions.

Partakers were also given proactive support and tasks to complete in order to move forward.

The feedback from attendees has been very positive. Participants produced a short, hand-written appraisal at the end of the first two days and many stated they

I felt more able to cope and my curiosity got the better of me so I started to experiment more and more. I could never have imagined then how the next 20 years would pan out for me.

“My using became extreme and unpredictable. I finished my apprenticeship, but was soon laid off because my addiction made me untrustworthy, dishonest and a liability. My family was affected in a big way, especially my mum, and relationships became very strained.

“I spent many years feeling frightened and alone. Eventually I ended up homeless, living on the streets, picking cigarette butts off the floor and frequently being sent to hospital.

“I always wanted to get clean and sober but I had no idea about what to do or who to turn to. Then, about four years ago, I was pointed in the direction of Racing Welfare.

The mental, emotional, physical and spiritual support I’ve received from the charity has been life-changing and has played a huge part in my recovery.

“As well as guiding me through my journey to overcome my addictions, they showed me how to manage

my finances and take responsibility for my life, which made the early days of recovery a lot less stressful.

They also helped to fund specialist one-to-one addiction counselling for me and got me a gym pass.

“I have now been clean and sober for two years. I am building healthy relationships with friends and family and I have my self-respect back.

I believe in myself again and I have returned to work as a farrier.

“Today, I have love and light in my life after 20 years of darkness.

I can’t thank Racing Welfare enough and I am now enjoying giving something back to help others.

I do voluntary work as a Peer Supporter with the local drug and alcohol service and I contribute to a 12-step recovery plan at our local prison. The team at Racing Welfare has shown me how to regain my life. I don’t want to think about where I’d be without them.”

Racing Welfare launched a pilot scheme in July 2013 to look at the feasibility and benefits of creating a Careers Counselling Service to support those working in the horseracing industry.

Previously, one of the charity’s Welfare Officers had conducted an extensive piece of research entitled ‘Change of Pace’. This research revealed a requirement to prepare racing staff for the realities and challenges of a career in racing as well as provide information on alternative work opportunities at appropriate career points.

A full-time Project Coordinator, Rob Wylie, was appointed by the charity. A three-month recruitment drive was launched to engage the support of employers of varying size across the UK who would be willing to allow staff to participate in the pilot scheme.

After the initial recruitment drive, five clinics were set up with the focus on available training for alternative

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RACING WELFARE (cont) “ Witnessing the changing attitudes leaves me totally uplifted for several days after each session. The fact that the pilot scheme has demonstrated the ability to produce such results in such a short space of time can only emphasise the viability of the proposed service.”

Rob Wylie, Change of Pace, Project Co-ordinator

felt colleagues would benefit from the sessions and would consider recommending future attendance to their peers.

Numerous participants felt that sessions should be made compulsory to all racing staff in order to create a better awareness of the support and training available. The majority of attendees stated they have felt more motivated since attending the sessions and all agreed there is a requirement for this service within the industry.

Racing Homes

The work of Racing Welfare is made possible by the generosity of many individuals and organisations. The charity is extremely grateful for all the support it receives, without which its vital work to help racing’s people could not be carried out.

To make a donation to Racing Welfare, please visit

www.racingwelfare.co.uk or contact the Head Office on

01638 560763

If you need the charity’s help outside of office hours, the freephone helpline

0800 6300443

is available 24 hours a day.

Racing Homes is Racing Welfare’s – and British racing’s – dedicated housing association. With a portfolio of more than 150 properties, Racing Homes is a registered social landlord regulated by the Homes and Community Agency. The association owns and manages housing on behalf of the charity and operates a housing service which supports people to access appropriate and affordable homes.

The objectives of the initiative are to provide support and good quality, affordable rental accommodation to young people aged 16-24 years-old, the frail and elderly and working staff suffering financial hardship or other disadvantage. Furthermore, Racing Homes looks to work with others to increase the supply of good quality affordable housing to staff working in the racing industry.

Housing is one of the main issues Welfare Officers deal with on a daily basis. The charity recognises the importance a secure home environment has on psychological and practical wellbeing for people.

Old Malton Gate

In 2013, Racing Homes secured the purchase of a property in Malton in order to develop safe and supported accommodation for young stable staff in the North Yorkshire

racing centre. This development followed the tragedy of two young jockeys losing their lives in 2009 as the result of a fire in flats at Norton, near to Malton.

Planning permission has been acquired by Racing Welfare to create an office for the charity’s welfare team on the ground floor, with four units of supported accommodation on the upper floors, as well as a communal lounge, kitchen and bathroom. It has also been possible to purchase outbuildings on the site, which will be redeveloped to create two further units of accommodation plus a community suite containing a social hub and IT and resource centre that will be open to the wider racing community in the area.

Fundraising

During 2013, Racing Welfare’s fundraising team raised more than £880,000. This sum includes income from Trusts and Foundations, donations, legacies and corporate support,as well as almost £400,000 from events.

In order to deliver an increasing number of events and initiatives, the team was expanded and reorganised.

Last year’s major fundraising events included a charity golf day, Silks Ball, the London Marathon, charity racedays, the Betfair Pride of Racing Awards and the Annual Carol Concert. Looking ahead, Racing Welfare has an exciting events portfolio planned for 2014.

Highlights include the London Marathon, in which 12 runners participated, spearheaded by Sheikh Fahad Al Thani and his Qatar Racing Team; Chief Executive, Lesley Graham, embarking on a 1,400km cycle challenge in 14 days across France with the goal of raising £50,000 for the charity; and The Betfair Pride of Racing Awards once again taking place in September.

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MEMBERS OF THE JOCKEY CLUB The Jockey Club’s origins are as a club for those with a passion for horseracing.

264 years since The Jockey Club’s foundation, today its Members are in effect ‘trustees’ of its assets, ensuring the Group acts for the long-term good of British racing at all times, in line with its Royal Charter commitments. Members may not profit from their role as all profits are reinvested back into the sport.

In 2014 there are 159 Members of The Jockey Club, including 24 Honorary Members. Each Member has been appointed on merit, on account of their knowledge and experience of horseracing and a commitment to help The Jockey Club to achieve its vision.

Patron

Her Majesty The Queen

Members HRH Prince Philip, The Duke of Edinburgh* HRH The Prince of Wales* HRH The Princess Royal* Sue Abbott HH Prince Khalid bin Abdullah* The Viscount Allendale Ian Balding LVO* Toby Balding OBE* The Lady Bamford Michael Banks OBE Sir John Barlow Bt William Barlow Henrietta, Duchess of Bedford The Duke of Bedford Tim Bell William Bethell Philip Blacker Colin Booth David Brotherton Julia Budd The Earl Cadogan DL Anthony Cane Sir Edward Cazalet* Nick Cheyne Nigel Churton Chris Collins Sir John Cotterell Bt DL Sara Cumani The Lord Daresbury Mark Davies Peter Deal Darby Dennis Jerry Dennis Justin Dowley Sandy Dudgeon Sir William Dugdale Bt CBE MC John Dunlop OBE* Nigel Elwes CBE Valda Embiricos The Lord Fairhaven KStJ JP DL The Hon. William Farish* Mike Felton Philip Freedman David Gibson Edward Gillespie* Sir Ian Good CBE

The Lord Grimthorpe The Countess of Halifax The Earl of Halifax KStJ JP DL Christopher Hall TD DL Lisa Hancock The Hon. Dido Harding Chris Harper Princess Haya of Jordan* Compton Hellyer Trevor Hemmings CVO* Michael Henriques The Hon. Harry Herbert David Hillyard* Christopher Hodgson Tim Holland-Martin Peter Innes John Jarvis CVO CBE Peter Jensen Nicholas Jones Bernard Kantor* Malcolm Kimmins CVO DL Charles Lloyd-Baker Lady Lloyd-Webber Mary Low MBE Sir Charles Lowther Bt Robert McAlpine JP McManus* Jim Macdonald-Buchanan Alastair Macdonald-Buchanan Capt. John Macdonald-Buchanan MC DL Edmond Mahony HH Sheikh Hamdan bin Rashid al Maktoum* HH Sheikh Mohammed bin Rashid al Maktoum* HH Sheikh Ahmed bin Rashid al Maktoum* John Magnier* Capt. the Hon. Gerald Maitland-Carew DL Andrew Merriam Gary Middlebrook Anthony Mildmay-White DL Timothy Motley Joey Newton Bjorn Nielsen Sir Peter O’Sullevan CBE David Oldrey Anthony Oppenheimer Sir Michael Oswald KVCO Brigadier Andrew Parker Bowles OBE The Hon. Rose Paterson

NEW MEMBERS George Paul DL Eric Penser Jeremy Philips Richard Pilkington Sir Thomas Pilkington Bt Peter Player Adrian Pratt Lord Rathcreedan Kirsten Rausing Julian Richmond-Watson Stuart Richmond-Watson John Rose Sir Evelyn de Rothschild Graham Rowles Nicholson DL The Duke of Roxburghe William Rucker Richard Russell Martin St Quinton Ben Sangster Julia Scott Bill Shand Kydd* The Hon. Sir David Sieff Jeffrey Smith Anthony Speelman Christopher Spence Christopher Sporborg CBE The Hon. Peter Stanley George Strawbridge, Jr* Mike Street OBE Sandy Struthers OBE John Sumner Rupert Sweeting Sheikh Fahad bin Abdulla bin Khalifa al Thani* Sheikh Hamad bin Abdulla bin Khalifa al Thani* Judy Thompson Patricia Thompson The Viscount Ullswater The Lord Vestey DL Robert Waley-Cohen John Wallinger Peter Walwyn* John Warr Lady Carolyn Warren Andrew Wates Michael Wates CBE John Warren Johnny Weatherby Roger Weatherby Stephen Webb Lady Joanna Wellesley Sir Neil Westbrook CBE* James Westoll Fiona Whitaker Bill Whittle Michael Wiggin Peter Willett Diana Williams Dr. Catherine Wills Charles Wilson Susan Wood Mark Woodhouse Nicholas Wrigley Major Michael Wyatt MBE The Marquess of Zetland *Honorary Member

From 1st January 2014, The Jockey Club elected three new Honorary Members and six Ordinary Members.

Honorary Members Sheikh Hamad bin Abdulla bin Khalifa al Thani Leading racehorse owner and breeder through Qatar Racing and British Champions Series sponsor through QIPCO. Sheikh Fahad bin Abdulla bin Khalifa al Thani Leading racehorse owner and breeder through Qatar Racing, Pearl Bloodstock, Longholes Stud and Robins Farm Racing; and British Champions Series sponsor through QIPCO. Edward Gillespie 32 years running and developing The Jockey Club’s flagship Cheltenham Racecourse, Chairman of the Pony Racing Authority and winner of the Lifetime Achievement Award at the 2011 Sport Industry Awards.

Ordinary Members Justin Dowley Racing: racehorse owner and non-executive director of Ascot Authority (Holdings) Ltd. Professional: Former Founder Partner of Tricorn Partners and Head of Investment Banking at Merrill Lynch.

Bjorn Nielsen Racing: racehorse owner and breeder, with gallops in Lambourn. Professional: Partner at Tudor Investment Corporation.

The Hon. Rose Paterson Racing: new Chairman at Aintree Racecourse.

Professional: Chairman designate at Weston Park Foundation, Board member of University of Shropshire, formerly senior roles in Sotheby’s Paintings Department and The Daily Telegraph’s northern Art Critic.

Richard Pilkington Racing: racehorse owner and racecourse committee director at Newmarket Racecourses. Professional: Insurance broker at Marsh McLennan and subsequently Chairman and CEO of Charente, Harrison Maritime Holdings and Harrison Maritime Industries.

William Rucker Racing: racehorse owner and breeder. Professional: Chief Executive of Lazard in the UK, Chairman of Crest Nicholson Holdings plc and Quintain Estates & Development plc and non-executive director of Rentokil Initial plc.

Martin St Quinton Racing: racehorse owner and racecourse committee director at Epsom Downs Racecourse. Professional: Chairman of Ammo Data, Vice Chairman and major shareholder in Gloucester Rugby Club, former Chief Executive of Azzurri and Danka International Operations.

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SELECTED KEY FIXTURES AT JOCKEY CLUB RACECOURSES (MAY TO DECEMBER 2014)

May

Saturday 3rd – Sunday 4th May 2014

Newmarket Rowley Mile QIPCO Guineas Festival

June

Friday 6th – Saturday 7th June 2014

Epsom Downs

Investec Derby Festival

July

Friday 4th – Saturday 5th July 2014

Sandown Park

Coral-Eclipse Summer Festival Thursday 10th – Saturday 12th July 2014

Newmarket July Course

The Moët & Chandon July Festival

Sept

Thursday 4th – Saturday 6th September 2014

Haydock Park

Sprint Cup Festival Thursday 25th – Saturday 27th September 2014

Newmarket Rowley Mile

Betfred Cambridgeshire Meeting

Oct

Saturday 17th October 2014

Newmarket Rowley Mile Dubai Future Champions Day Saturday 18th October 2014

Ascot (industry day) QIPCO British Champions Day Nov

Friday 14th – Sunday 16th November 2014

Cheltenham The Open

Friday 21st – Saturday 22nd November 2014

Haydock Park

Betfair Chase Festival

Dec

Friday 5th – Saturday 6th December 2014

Sandown Park

Tingle Creek Christmas Festival Saturday 12th – Sunday 13th December 2014

Cheltenham

The International Friday 26th – Saturday 27th December 2014

Kempton Park

William Hill Winter Festival

Written by The Jockey Club Designed by Tayburn Printed by Clearwell Consultancy Extracted from financial statements audited by BDO LLP

75 High Holborn London WC1V 6LS tel: 020 7611 1800 info@thejockeyclub.co.uk www.thejockeyclub.co.uk @TheJockeyClub www.facebook.com/TheJockeyClub1750