Organisational crisis hits British horseracing once again

Britain’s second most popular sport, horseracing, has found itself in the middle of a financial and organisational crisis. The seemingly never ending row over funding appeared as if it was going to get out of control this year. It has reached the point where the British Horseracing Authority (BHA) has decided to delay publishing its 2011 fixture list; they also released an angry press statement accusing bookmakers of “exploiting loopholes” to get out of paying what they owe.

This decision could put in doubt the jobs of 20,000 workers within the sport and another 80,000 whose work is related to racing. Racing is unique insofar as it is funded by a constitutional tax of 10% of profits bookmakers make on the sport. It is argued by the racing authorities that the bookies should be paying far more, of course the bookies disagree.

The BHA claims that the amount received from the tax has dropped considerably, "Despite the betting industry posting bumper profits in recent years, the amount contributed to the levy has gone into freefall," it says. "In 2009, the yield from the Horserace Betting Levy shrank by more than 20 per cent, from £115.3m to £91.6m. It has been reported that the 2010 levy has dropped even further to £76.5m, a further fall of 17 per cent."

However, the bookies see things differently. They have pointed out that they also contribute £75m for TV pictures and £50m for sponsorship which takes the total to £200m. Of course this money goes to the racecourses and not to bookies to be used for prize money.

In the end it is likely that the Department for Culture, Media and Sport will intervene to work out a deal between the two sides which will stand for a while before the mess begins again.