The Jockey Club Posts Record Results
The Jockey Club, the largest commercial group in Britain’s second biggest spectator sport, has announced its best set of financial results ever – including record turnover (£150.3m), operating profits (£19.8m) and contribution to prize money (£16.5m) – and used them as the springboard to launch the first ever retail bond in British sport, ‘The Jockey Club Racecourse Bond’.
The group, which owns 15 racecourses, said record crowds last year at meets such as the Cheltenham Festival and the Grand National pushed turnover through the £150m mark, despite tough competition from other sporting events, including the Olympic Games, as well as bad weather.
The bond scheme is reportedly an attempt to raise funds, around £15m, towards the £45m redevelopment of facilities at Cheltenham Racecourse.
Billed as the first of its kind in British sport, it will attempt to persuade fans to invest between £2,000 and £100,000 in increments of £500 over five years.
It promises annual returns of 7.75%, paid quarterly, but only 4.75% of that will be in cash. The rest will be available to spend as “Racing4Rewards points” and put towards tickets, food and drink, hospitality packages and merchandise at the group’s courses.
Paul Fisher, group managing director, Jockey Club Racecourses, said: ‘Several million people every year enjoy a day at the races, whether you are lifelong fan of the sport or just love a great day out. Our Racecourse Bond offers you generous cash returns at a time of rock-bottom interest rates, with a racing rewards element that can pay for your racing experience at any of our 15 courses nationwide.’
‘For 263 years, The Jockey Club has been at the heart of Britain’s second biggest sport and today we are doing very well commercially, with an excellent outlook ahead. In 2012 we achieved another year of record financial performance, despite no resurgence in the economy.’
‘The money we raise from The Jockey Club Racecourse Bond will go straight into British racing through the iconic £45m development we are planning at Cheltenham Racecourse, so if you take up the bond, you get a generous return and you will be making a difference to our fantastic and growing sport.’
Speaking on the impressive financial results, Simon Bazalgette, group chief executive, The Jockey Club, said: ‘I’m delighted we’ve been able to buck the trend with record financial results and make 2012 the year we contributed more to the people at the centre of our sport than ever before through prize money.’
‘Our biggest racing festivals have never been bigger, while average attendances at Jockey Club Racecourses grew, more horses trained on our gallops at Newmarket and Lambourn, and The National Stud welcomed growth in stallion nominations, boarding and sales.’
‘That’s all despite the second-wettest year in history cancelling fixtures, reducing walk-up crowds and increasing costs to keep the show on the road; stiff competition in the leisure market and from events like London 2012 and Euro 2012; and no resurgence in the UK economy.’
The results, published on Wednesday, come in the wake of news of a huge doping scandal after it was discovered that 11 horses trained by Mahmood Al Zarooni, a star trainer for the Godolphin stables, have tested positive for anabolic steroids.
Mr Al Zarooni has apologised for administering prohibited substances to the horses and said he did not realise he would be in breach of rules as the ‘horses involved were not racing at the time’.
