Ownership Strategy - 2019 Annual Report update

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ROA Annual Report 2018-19

Ownership Strategy for British Horseracing

Ownership Strategy for British Horseracing The Industry Ownership Strategy, which was developed from the findings and results of the 2016 National Racehorse Owners Survey, has gained real momentum throughout 2018 and into 2019.

Background The ROA-led Industry Ownership Strategy made a successful application for industry funding from the Horserace Betting Levy Board in March 2018. The project was founded on the basis of delivery of one of the key strategic objectives of the Industry’s 2015 Strategy for Growth, utilising the results of the 2016 National Racehorse Owners Survey, with an initial focus on the enhancement of the ownership experience for existing owners, thereby achieving improved retention levels. This was a significant development, as industry funds were committed to a project focused on owners, and their vital involvement in the sport.

HBLB funding secured

Key ownership challenges Ownership churn

There is a high rate of churn in the current ownership portfolio. For instance, lapsed ownership is higher (11%) than new ownership (9%).

Ownership composition

There is a need to diversify ownership. For instance, there are currently more owners aged over 80 than under 40, and only 21% of active owners are female.

Ownership involvement

There is an opportunity to increase ownership involvement and engagement. For instance, there are 2,437 owners without a horse in training, and the average field size needs to be increased in-line with the new media rights payments structure.

The structure of the project was initially founded on four key areas: Ownership Promotion Trainers Racecourses This has been refined as follows: Developing the Ownership Proposition

Retention

Enabling and supporting service providers: Trainers, Racecourses and Syndicates

What are the aims?

The aim of the project is to...

This will be achieved by...

Support the racing industry by enhancing the involvement of owners and the number of horses in training.

Ownership proposition

Enabling service providers

Developing a compelling proposition for British Racehorse Ownership to retain existing and attract new owners.

Delivering the proposition by supporting service providers to serve existing and attract new owners.

ROA Annual Report 2018-19

Ownership Strategy for British Horseracing

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We will improve the on- and off-course ownership experience, developing the infrastructure of services that enable this experience.

We will measure this: Objectives

Current examples of KPIs

Support the racing industry by enhancing the involvement of owners and the number of horses in training Developing a compelling proposition for British Racehorse Ownership to retain existing and attract new owners

Delivering the proposition by supporting service providers to serve existing and attract new owners

Definition

# of Horses In Training

Overall number of Jump, flat and dual-purpose horses in training

% races with 8 or more runners

Share of races that have a field size of 8 or more runners

Net Promoter Score of owners

Share of owners that actively recommend ownership compared to overall number

Churn rate of owners

Ratio of new owners to lapsed owners

Average tenure of ownership

Average number of years that an owner is involved in ownership before lapsing

% of lapsed owners citing service providers

Share of owners who define service providers as primary reason for lapsing

The Industry Ownership Strategy, which was developed from the findings and results of the 2016 National Racehorse Owners Survey, has gained real momentum throughout 2018 and into 2019.

Team The ROA continues to lead the strategy, with a core Project Team focused on the delivery of the aims and objectives. This team has been supported by Portas Consulting. Portas Consulting are specialist sports consultants, bringing their knowledge of over 20 sports to bear, with a client base including Sport England, British Rowing, The FA, England Golf and Formula 1.

Consultation & Collaboration As would be expected of a cross-industry project, consultation and collaboration has been key to the development of the project. Whilst the project is underpinned by and developed from the vital insights achieved through the 2016 National Racehorse Owners Survey, significant additional research has been undertaken to better understand the motivations, enjoyment and frustrations experienced by all types of owner.

Cross-industry collaboration has also been a vital element of the project, with engagement across the industry. There has also been a focus on an outward-looking perspective, with extensive benchmarking undertaken across other organisations.

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Ownership Strategy for British Horseracing

ROA Annual Report 2018-19

A comprehensive range of industry stakeholders have been engaged

Engagement

Owners

627 responses to ROA membership survey 956 responses to Owner-Breeder survey 596 responses to Syndicate Member survey Deep-dive analysis 2,203 responses from 2016 ownership survey Interviews with 179 owners (phone interviews, in-person interviews, regional meetings) 3 focus groups across the country with a representative group of members to explore survey findings Interviews with 9 non-ROA members

Service providers

Interviews with 6 syndicate managers, 15+ trainers Engaged with 46 racecourses through 2 racecourse workshops 22 responses to the syndicate manager survey Formation of 2 working groups involving racecourses & syndicate managers (~15 members)

Industry bodies

Multiple targeted meetings with 8+ industry bodies to update on the progress of the project and gather insight into their interactions with owners

Outside of racing

Completed benchmarking of 30+ membership organisations (equine and non-equine) to gather best practice such as The RAC, The MCC, British Eventing, Club Wembley, Arsenal, British Airways, Goodwood Road Racing Club

Owners

Syndicate managers Trainers Racecourses RSA BHA RCA

NARS

GBRI GBR NTF

TBA HBLB

Non-equine organisations

The importance of owners and their role within the industry, and the impact that they have through their involvement has been highlighted by the extent of the effects that will be achieved through successful implementation of the Industry Ownership Strategy:

Maintaining the UK’s place in the global bloodstock market

Driving increased income

Raising the profile of racing

Increasing the number of horses in training and boosting field sizes will drive increased income through betting turnover and media rights

Raising the Net Promoter Score of owners will help to raise the reputation and profile of racing in the UK

Increasing owner engagement and improving service provision will support the cementing of the UK’s place in the global bloodstock market

Boosting diversity in racing

Increasing volume at sales houses

Increasing trainers’ yard sizes

Increasing accessibility to ownership and broadening the diversity of owners will increase diversity in racing overall

Developing demand for ownership will translate into increased demand at sales houses

Growing the number of horses in training and boosting owner engagement will drive an increase in the size of trainers’ yards

ROA Annual Report 2018-19

Ownership Strategy for British Horseracing

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Achievements Significant progress has been made in a number of areas relating to both of these project elements: Industry Ownership Quality Mark: this raceday-focused scheme has been developed to run in parallel with the long-established ROA Gold Standard Award. The AA has been appointed to undertake objective assessments of the owners’ raceday experience across all racecourses. The scheme has been developed in partnership with racecourses, to develop a collaborative and aspirational initiative which will encourage racecourses to deliver ongoing improvements to the raceday experience.

The assessment is made by evaluating the raceday experience across the following areas: Pre-raceday communication Arrival Staff Owners and Trainers facility Food and drink Watching the race Post-race Exit from the racecourse Cleanliness Horse welfare This will allow owners to gain a better understanding of the experience at each course, and to factor this into deciding where their horse runs.

Develop leasing proposition: a revised and updated leasing agreement has been developed, with the support and input of TBA and NTF. This supports the service providers through a simplified and accessible agreement, as well as highlighting an accessible route to ownership Industry Ownership Racedays: the long established ROA Owners Jackpot scheme has been revisited. Jackpot races now act as the focal point for the newly established Industry Ownership Racedays. These Racedays take place on a monthly basis, across region and code of racing. They combine enhanced contact and communication with the ROA membership, with promotion and celebration of ownership to potential owners.

The remaining schedule of racedays across the UK is: July Musselburgh Wednesday 3 July August Ripon Tuesday (eve) 6 August September Perth Monday 9 September October Nottingham Wednesday 2 October November Hereford Tuesday 12 November November Wetherby Wednesday 27 November Deliver ownership-focused training to the industry: there has been a lack of knowledge of the ownership experience and their expectations across the industry. More focused training is now provided through the various industry training courses: from the Overview of Racing course to racing secretaries and Module 2 of the Trainers’ course.

Specific training in relation to the Raceday Experience has been provided in the form of presentations to raceday staff.

Racecourse Workshops: continuing the theme of Racecourse engagement: 2019 saw the delivery of two owner-focused racecourse workshops. They highlighted the experience and expectations of owners, both raceday and beyond. Forty six racecourses were present for the workshops, and these will be delivered annually on an ongoing basis.

ROA Raceday Liaison: we have developed a pilot scheme to further enhance the members’ experience on a raceday. ROA team members are on hand to provide a welcome on the Owners and Trainers’ desk. This is to support racecourses, but the key reason behind the implementation of this role is to provide a more personal and bespoke service to members. This will highlight the owners’ role on a raceday.

The project outcomes will not be delivered with one identifiable solution to the issue of the development of the ownership experience and the project will be successful only with industry-wide collaboration, communication and support and this remains a key focus of the Project Team.

This momentum continues and key priorities will be delivered on an ongoing basis, with regular updates provided to members.