Diagnosis Report

Industry Ownership Strategy - Diagnosis report 0

Executive summary ▪ The objective of the Industry Ownership strategy is to improve the experience of existing owners ▪ This will grow the investment of existing and new owners in racing, and enhance economic and sporting outcomes for the industry

▪ The current ownership experience is leading to a high churn rate with more owners exiting than entering the sport, and low levels of customer satisfaction as indicated by a negative net promoter score ▪ This is driven by challenges in all ownership segments: – Limited differentiation of experience for owners with high investment in the sport – A growing number of syndicates, without proper governance and structure in place – Inconsistency in raceday and non-raceday experiences for all owners ▪ Three strategic priorities should underpin the design of an enhanced ownership experience: 1.

Provide a differentiated experience to owners with high involvement

2.

Provide a consistent and sustainable experience to syndicate owners

3.

Develop stronger foundations that deliver a consistent baseline experience focused on the areas that most matters to all owners

Source: Portas analysis

1

Contents

Context Identified strategic priorities Supporting findings Next steps

McKinsey & Company

10 2

The investment of Owners is the heart of the racing industry, and is highly dependent upon the quality of their experience

▪ Government

Racecourses

Bookmakers

The investment made by owners brings an enormous range of benefits to stakeholders inside and outside of the racing industry. For example: - Staff: 85,000 people work in the racing industry - Government: British Racing contributes £3.45bn to the UK economy through direct and indirect expenditure (contributing over £275m through tax)

Racegoers Broadcasters

- Racecourses: 5.6m people attended races across the UK, with almost 19,000 individual runners at ~1,300 fixtures

Owners

Trainers

Sales houses

- Bookmakers: Punters spend an estimated £12bn per year betting on horseracing

Jockeys ▪ Staff

Equine welfare

Source: Deloitte, Financial Times; Portas analysis

Non-owners

Their investment is heavily incentivised by the quality of their experience. A quarter of all owners make no prize money, whilst three quarters don’t win enough to cover the cost of a single run.

3

The objective of the Industry Ownership strategy project is to use the HBLB funding to improve the experience of existing owners HBLB funding has been secured

This funding will be to used to improve the experience for all existing owners Examples of key elements of ownership experience (not exhaustive) Raceday experience

Year 1

£860K Year 2 /3

TBC

Source: Portas analysis

Non-raceday experience

•

Feeling valued when welcomed by the racecourse

•

The anticipation before watching your hose run

•

‘Being on the inside’ when standing in the parade ring and speaking with the jockey

•

The thrill and pride of winning, and joy of sharing that moment with friends and family

•

The excitement of becoming an owner

•

The enjoyment of a visit to the stables and seeing your horse close up

•

Getting an inside track to the sport

•

Receiving weekly updates from your trainer about your horse, and exclusive information on ownership

•

The friends gained and fun of attending other events throughout the year

4

Improvements to the ownership experience for existing owners will support growth in the involvement and investment of both existing and new owners An improved experience for existing owner will increase the involvement of both new and existing owners:

This will be measured through clearly defined KPIs (Illustrative examples) # of Horses In Training

1 Incentivise existing owners to increase their current CPO*

% races with 8 or more runners 2

Encourage existing owners to stay in the sport for longer, reducing churn rate and increasing average tenure

3 Attract new owners to the sport, boosting ownership diversity

Churn rate of owners

Average tenure of ownership

Net Promoter Score of owners

Source: Portas analysis

*CPO = Cumulative Percentage Ownership

5

This will be delivered through implementation of 10 initiatives that develop a compelling ownership proposition and enable service providers to deliver it Workstream objectives Developing a compelling proposition for British Racehorse Ownership to retain existing and attract new owners

Phase 1

Workstreams and initiatives Sep

Oct

Nov

Phase 2 Dec

Jan

Feb

Mar

Phase 3 Apr

May Jun

Jul

Aug

Ownership proposition 1. Understand what owners want 2. Develop ownership proposition* 3. Develop British racehorse ownership 4. Promote the proposition and British racehorse ownership Service providers 5. Understand what support service providers need

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

Racecourse services

Trainer services

Syndicate services

Blueprint by end of phase 3

6. Develop syndicate quality mark 7. Support trainers to enhance customer service & comms

Year 2 aside from quick wins

8. Develop website to facilitate selection of trainers

Year 2 aside from quick wins

9. Develop Industry Quality Mark & ROA Gold Standard

10. Support racecourses with delivery of concierge function *Solution will be calibrated with any required alignments to funding and operating model for ROA/British racehorse ownership

Source: Portas analysis

6

Segmentation analysis of owners was used to gain an understanding of the full spectrum of ownership needs

Likely to increase

New hot

Lapsed hot Up and coming

Future fanatic

Racing club hot Fanatic

Likelihood to increase involvement

Commercial

Likely to maintain

Steady owners Lapsed cold

Likely to reduce

VIP

New cold

Low priority at risk

0 CPO

0 – <1 CPO

1 – 1.5 CPO

At-risk fanatic

1.5 – 10 CPO

Current level of involvement (CPO - Cumulative percentage ownership) Source: Portas analysis

Diehard

10+ CPO Priority segment for analysis Non-priority segment for analysis

7

Benchmarking of equine and non-equine organisations was done to understand how they deliver excellent experiences and support their customers Organisations

Approach Equine

Non equine

▪ Interviews and site visits for Tier 1 and 2 to identify comprehensive learnings

Tier 1

Areas to investigate Six key areas of interest were identified to focus our research: Rights - what rights and benefits do the members receive?

Structure - how is the proposition is organised and structured?

Tier 2

▪ Desk research for Tier 2 to identify targeted learnings

Communication – what communications do members receive?

Support services - what supporting services are provided to owners?

Support organisation - how is the organisation is set up to deliver the membership?

Support for service providers - how are service providers who deliver the proposition enabled?

Source: Portas analysis

8

The project is taking a proactive approach to integrating with ongoing projects that are aimed at addressing key industry challenges impacting ownership Industry challenge Increased levels of public concern and involvement over equine welfare Racing is becoming increasingly less relevant to younger generations

Example of impact on ownership Potential new owners are concerned about entering the sport due to perceived problem

How could ownership help?

How our project will address this?

Educate owners on how they can be an advocate for the industry

▪ Support existing equine welfare programmes

Lapsed owners will not be replaced by Utilising current owners as promoters by young owners – declining owner numbers spreading their positive experiences as and diversity an owner

▪ Support existing Racing Futures and Fan Engagement project (Our focus is on converting existing racegoers to owners)

Insufficient supply of staff to support an increase in HIT

An increase in owners and HIT could provide the added revenue to support training and hiring

▪ Support existing industry projects on supply of training staff (Note - we will assume an increase in HIT would be possible if these projects are delivered)

Owners more likely to lapse if prize money is declining, also less likely to attract new owners

If the ownership experience is improved, people’s perceptions of value for money may increase

▪ Prize money is not in scope of the project.

(Our focus on improving the experience to enhance perceived value for money)

The decline of the popularity of National Hunt racing

Lower demand for National Hunt racing could decrease the quality of supply of services (trainers, racecourses etc.)

Improving the ownership experience across codes will help to retain and recruit owners

▪ Not directly in scope (Although we will utilise opportunities to understand the views of owners on their future interest in national hunt ownership)

The uncertainties caused by Brexit

The involvement of foreign owners could decline (9/10 of top owners in British Racing are from overseas)

Ensuring owners are loyal to British Racing because they have a fantastic ownership experience

▪ Support existing British racing Brexit steering group (Our focus on improving the experience for all owners including foreign owners)

Lack of supply of good quality racing staff

Declining revenue due to closure of FOBTs having an impact on prize money

Source: Portas analysis

9

The delivery of this project will have significant cross industry benefit

Driving increased income

Increasing volume at sales houses

Increasing trainers’ yard sizes

Economic

Increased field sizes driving betting turnover, media rights & raceday income

Boosting diversity in racing

Increased sales/demand for horses at sales houses

Raising the profile of racing

Growing the number of HIT will drive an increase in the size of trainers’ yards Maintaining the UK’s place in the global bloodstock market

Sporting

Greater number and diversity of ‘participants’ in the sport

Source: Portas analysis

Raising owner Net Promoter Score will raise the profile of racing

Supporting UK’s place in the global bloodstock market

10

Contents

Context Identified strategic priorities Supporting findings Next steps

McKinsey & Company

10 11

Strategic priorities

Three strategic priorities will underpin the design of the ownership proposition

Proposed strategic priorities

1

Differentiate the experience of owners with high involvement

2

Define and deliver a consistent and sustainable experience to syndicate owners

3

Source: Portas analysis

Enhance the baseline experience for all owners in the areas that matter most

12

Strategic priorities | Differentiate the experience of owners with high involvement

1

There is considerable investment being ‘left on the table’ by a lack of focus on owners with high involvement

Rationale for strategic priority

▪ There are a small number of owners responsible for a large number of horses: – 4% of owners own 21% of horses in training – >50% of growth in HIT since 2015 has been driven by owners with 5+ CPO

▪ Despite this, there is currently limited focus on engaging and increasing the involvement of these owners: – ROA has no dedicated focus for owners with high involvement

– Feedback from owners that they receive same benefits, levels of customer care and recognition as other owners despite difference in levels of involvement – GBRI supports the experience of international owners, but has a low budget (£400k) and doesn’t cater for domestic owners – Owners receive same benefits despite difference in level of involvement

Source: BHA data, Portas analysis

13

Strategic priorities | Differentiate the experience of owners with high involvement

1

The proposition should differentiate the experience of owners with high involvement to retain and maximise their investment in the sport

Implications for proposition design

Initial hypotheses on how to do this (Non-exhaustive)

Develop an owners’ club and concierge function that provides a personalised, differentiated, luxury offering to owners with high involvement

▪ Develop a ‘Gold club’ for high involvement owners with sub-groups such as a young owners club

Conduct targeted campaigns to attract new high wealth individuals into high involvement ownership

▪ Target events with high income individuals present (e.g.

Wealth Management, Premier League football players through PFA etc.)

▪ Tailor the benefits of this club to the different segments of owners with high involvement – VIPs, commercially oriented owners and diehard horseracing fans

▪ Target foreign owners with limited involvement in UK racing ▪ Target friends & families of existing high involvement owners Support the growth of owner breeders

Source: BHA data, Portas analysis

▪ Provide information on how to enter breeding targeted at owners with horses suitable for breeding

14

Strategic priorities | Deliver a consistent and sustainable experience to syndicate owners

2

Syndicate ownership is growing but future growth in HIT is threatened by a lack of governance and structure

Rationale for strategic priority

▪ There is a growing* number of syndicate owners in the UK reflecting worldwide trends: – Increase in syndication is a global trend (e.g. Ireland, Australia) – Traditional sole owners in the UK are moving into syndicate ownership to ‘diversify their portfolio’ and due to recommendations from syndicate owners who have a net promoter score of +14 – Syndicates are providing an accessible route into ownership for younger and lower income demographics – Trainers increasingly using syndicates to sell shares of unsold horses

▪ Despite this, there is a lack of proper structure or governance on syndicate ownership: – Syndicate managers are not regulated – Syndicate owners are not required to register, and many are not members of the ROA – Limited understanding amongst new/existing owners of the different types of syndicates available

▪ This is resulting in an inconsistent syndicate experience which could have a detrimental impact on the industry if it undermines potential growth in HIT: – New owners ‘dipping their toe’ into racing through syndication discouraged from increasing involvement – Full owners with syndicate shares getting bad experience discouraged from retaining/increasing involvement – Syndicate owners discouraged from going into multiple syndicates – Females joining syndicates less than males

Source: BHA data, Portas analysis

* There is a lack of data on the number of syndicate owners however this is strongly supported by interviews

15

Strategic priorities | Deliver a consistent and sustainable experience to syndicate owners

2

The proposition should define and deliver a consistent and sustainable experience to syndicate owners

Implications for proposition design

Initial hypotheses on how to do this (Non-exhaustive) ▪ Require syndicate managers to register all members with the BHA / ROA – and impose penalties for lack of compliance

Establish visibility of syndicate owners

▪ Simplify the process for registering syndicate members Define an Industry standard offering for syndicate owners ▪ Define the raceday and non-raceday rights and benefits of syndicate owners – possibly based on their CPO ▪ Support service providers to consistently deliver this offer Develop a syndicate quality mark to drive up the consistency of the syndicate owner experience

▪ Develop a quality mark for syndicates

Support service providers (racecourses, trainers) to deliver syndicate owner experience (including attitudes and structural changes)

▪ Work with service providers to shift mindset on syndicate owners

Source: BHA data, Portas analysis

▪ Develop a website that explains how syndicates work, what types of syndicates to join, and which has a quality mark (potentially a development of inthepaddock.co.uk)

▪ Work with service providers to understand and implement what is required to deliver the standard syndicate offering

* There is a lack of data on the number of syndicate owners however this is strongly supported by interviews

16

Strategic priorities | Enhance the baseline experience for all owners in the areas that matter most

3

There is a clear need to address issues in the areas that matter most to all owners

Rationale for strategic priority

▪ In addition to prize money, there are four areas that owners consistently cite in what matters most, however there are deficiencies in how each of them are delivered: – Involvement with horse on raceday: Owner experience is not sufficiently differentiated from racegoers – Watching your horse run: Average number of runs per horse is <5 per year – Winning: Owners cite disappointment with treatment of winning

Involvement with the horse on raceday

20% 18%

Prize money*

17%

Winning O&T facilities

– O&T facilities on raceday: Owners frequently complain about facilities (44% of lapsed owners citing raceday experience as reason for leaving)

Source: 2016 owners survey, BHA data, Portas analysis

“What is your most enjoyable aspect of ownership?” (% responses)

Watching your horse run

* Prize money not in scope for this project

14% 12%

17

Strategic priorities | Enhance the baseline experience for all owners in the areas that matter most

3

An improved proposition should enhance the baseline experience for all owners in the areas that matter most

Implications for proposition design*

Initial hypotheses on how to do this (Non-exhaustive)

Develop Quality Marks and SLAs to ensure consistency in ▪ Develop and promote Industry Quality Mark for racecourses, syndicate managers and possibly trainers, and provide customer experience support for them to achieve this ▪ Establish common goals and SLA between organisations responsible for delivering ownership experience Enhance the “Moments that Matter” for owners by working with service providers to transform them over time Develop stronger enablers for delivering the ownership experience with a focus on marketing, data, digital and continuous improvement

▪ Enhance winning moment & extend to placed owners ▪ Use technology to deliver increased involvement on raceday ▪ Explore methods to increase the number of runs per horse ▪ Proactively market the ownership brand ▪ Develop improved visibility of owner data ▪ Develop a digital strategy for the ownership experience ▪ Establish improved continuous improvement processes

Increase contact time with existing and new owners on and outside raceday to deliver their needs, create strong relationships and continuously improve understanding of what they want

Source: 2016 owners survey, BHA data, Portas analysis

▪ Establish a raceday liaison team at racecourses ▪ Develop an enhanced remote support service for owners

* This excludes implication for trainer component of proposition design as this is not in focus until phase 3

18

Strategic priorities | Priority actions

Additionally, 8 priority actions have been identified to start the process of change Priority actions

Activity

Timeline

1

Develop leasing proposition

▪ Develop a more effective leasing process and improve visibility of leasing opportunities

Jan 19

2

Revise ROA jackpot

▪ Shift focus of ROA jackpot from retention to promotion tool

Jan 19

3

Deliver ownership training to trainers & those new in industry

▪ Deliver customer service training in BRS trainers' module

Nov 18

4

Set up a complimentary ROA offer for low/lapsed/non-owners

▪ Develop a tool for engaging warm prospects amongst lapsed owners and non-members (e.g. syndicate members, enthusiastic racegoers, friends of owners)

Jan 19

5

Share findings of syndicate survey

▪ Encourage syndicate managers to address concerns of members and adopt best practices, whilst demonstrating ROA efforts to support syndicate members

Nov 18

6

Provide training and toolkits to racecourses

▪ Provide training sessions on owner needs to racecourses during off-season

Feb 19

7

Appoint Ownership champions

▪ Appoint and train ‘ownership champions’ who can support the external marketing of ownership and the implementation of ownership proposition

Mar 19

8

Develop strategy for highlighting owners at racedays on TV

▪ Liaise with ITV /RUK /ATR media around interviews with owners on racedays

Jan 19

Source: Portas analysis

▪ Deliver ownership slot on Overview of Racing Industry training day

▪ Develop toolkits that racecourses can use to improve their customer service

▪ Develop process (internal or outsourced) for identifying owners with interesting back stories 19

Contents

Context Identified strategic priorities Supporting findings Next steps

McKinsey & Company

10 20

Findings | Approach

The strategic priorities were identified based on a synthesis of findings from a diagnosis that consisted of a wide-ranging consultation, research & analysis and benchmarking Wide-ranging consultation

Research and analysis

Benchmarking

▪ Targeted and representative (i.e. size, regional, code) interviews with:

▪ Segmentation analysis of 2016 owner survey (2,203 respondents)

▪ International equine benchmarks such as British Eventing, Hong Kong Jockey Club, Racing Australia, Magic Millions, France Galop and Japanese Racing Association

– 148 owners (interviews + regional meetings)

– 12 racecourses and representatives – 6 syndicate managers – 16 fanatics ▪ Extensive engagement key ownership stakeholders, such as ROA, BHA, RCA, RSA, NARS, GBR, GBRI, Horsemen Group

▪ Additional online surveys for hard to reach segments not well covered in 2016 survey:

– 497 syndicate and racing club members

▪ International sports benchmarks such as Club Wembley, MCC, Goodwood, RHS, RFU, Arsenal, Bayern Munich, RYA, British Airways, Ferrari

– 22 syndicate/racing club managers ▪ Gathering and analysis of existing data and research, such as ROA data, BHA data, Racecourse data

Findings and design implications

Source: Portas analysis

21

1

Differentiate the experience of owners with high involvement

22

Findings | Provide differentiated experience to owners with high involvement

1

Summary of findings | Provide differentiated experience to owners with high involvement

Summary of findings for owners with high involvement

1a

Owners expect a luxury product experience

1b

Owners want recognition for their investment

1c

Owners prioritise winning

1d

High CPO owners are passionate about being involved with training and racing plans

1e

Most new high involvement owners come from outside the pool of existing owners, however some make the jump from syndicate owner

1f

There is little provision of benefits outside of raceday

1g

There is limited knowledge and focus on engaging owners with high involvement

1h

There is limited support provided to owners to encourage them to become breeders

1i

There is an opportunity to pull through younger people into high involvement ownership

Source: Portas analysis

23

Findings | Provide differentiated experience to owners with high involvement

1a

Owners with high involvement expect a luxury product experience

Finding

Supporting evidence

1a. Owners with high involvement expect a luxury product experience % of owners who spend £20K+ on lifestyle / hobbies [TOB readers]

Cars

11.0%

Hobbies

11.0%

Travel

Wine

Watches

9.0%

2.0%

1.0%

Source: TOB Survey; Portas analysis

▪ Managers of high end syndicates report that their members see ownership as a luxury good, rather than just a hobby and therefore expect a similar level of service ▪ Insight from GBRI shows that owners want access to ‘money can’t buy experiences’ and are willing to pay for them

Implications for delivery of strategic priority ▪ Develop a ‘gold club’ for owners with high involvement that provides higher levels of hyper-personalised service and benefits ▪ Work with racecourses to develop ‘luxury facilities’ at racecourses in addition to complementary O&T facilities (e.g. VIP entrance, owner restaurants)

▪ TOB found that readers surveyed spent their leisure time and money on premium goods such as cars, watches and travel, with 1 in 10 spending £20K annually on cars ▪ Luxury car makers such as Ferrari and Bugatti have a hyper-personalised service with a dedicated resource available at all times and a detailed knowledge of who the customer is and their preferences

24

Findings | Provide differentiated experience to owners with high involvement

1b

Owners with high involvement want recognition for their investment

Finding

Supporting evidence

1b. Owners with high involvement want recognition for their investment % who answered ‘recognition’ as their most enjoyable aspect of raceday

▪ Owners with high involvement over-index for “recognition of owner role and contribution” as their most enjoyable aspect of ownership (fanatics are 13% vs. 8% for all owners) ▪ Observations of limited recognition provided to owners today

13%

Fanatic

Average

Implications for delivery of strategic priority ▪ Work with racecourses and broadcasters to increase recognition of owners on and outside of raceday. For example: -

Owners mentioned during commentary

-

Owners more visible on big screen

-

Winning owners more visible

-

Owners name mentioned in media (i.e.

TV stories, sports articles)

▪ Positive feedback provided to small steps taken by courses such as Musselburgh that recognizes its top 10 most loyal owners, with a plaque and a press release

8%

Source: 2016 owner survey, Portas analysis

25

Findings | Provide differentiated experience to owners with high involvement

1c

Owners with high involvement prioritise winning

Finding

Supporting evidence

1c. Owners with high involvement prioritise winning

▪ 49% of owners state that winning is everything or important

Owner net promoter score (NPS)

▪ Owners with “low success” have a Net Promoter Score of -34 compared to +22 for those with “high success”

+22

High success owner

-10

Average owner

-34

Low success owner

Source: 2016 owner survey, Portas analysis

▪ Die-hards over-index for winning compared to other owners for winning being the most enjoyable aspect of ownership (22% vs. 17%)

Implications for delivery of strategic priority ▪ Establish a proactive approach to engage with owners with high involvement that have not won as this is a leading indicator of lapsing ▪ Enhance the experience of placing for owners – e.g. expanding the winning connections space ▪ Proactive racecourse liaison who invites placed owners into winning connections if Winning owner is not present

▪ Trainers revealed that their success and track record in having winners was the biggest draw to owners (rather than customer service etc.) when they were choosing a trainer

26

Findings | Provide differentiated experience to owners with high involvement

1d

High CPO owners are passionate about being involved with training and racing plans

Finding

Supporting evidence

1d. High CPO owners are passionate about being involved with training and racing plans What is your most enjoyable aspect of ownership?

26%

Involvement with training & racing plans

▪ Diehard owners over-index (compared to average) for involvement with training and racing plans (26% vs 19%) ▪ The diehard is passionate about involvement with the horse and is less concerned with other raceday benefits / elements

Implications for delivery of strategic priority ▪ Work with trainers to highlight the importance of keeping diehard owners involved with their horse’s training (e.g. videos of the horse on the gallops, updates from the trainer, pictures via WhatsApp

19%

22% Winning 17%

10% Attending racedays

▪ Diehards choose sole ownership because it enables them to have the most contact with their horse, rather than being q1 of 10 or 20 people at a stable visit or on a raceday, they are able to have sole contact with the horse / jockey / trainers

19%

5% Social 4%

Diehard Total (excl. diehard)

Source: 2016 owner survey, Portas analysis

27

Findings | Provide differentiated experience to owners with high involvement

1e

Most new high involvement owners come from outside the pool of existing owners, however some make the jump from syndicate owner

Finding

Supporting evidence

1e. Most new high involvement owners come from outside the pool of existing owners, however some make the jump from syndicate owner

▪ There is a disparity in income between owners with low and high involvement.

For example, 78% of diehards earn greater than £250k compared to just 26% of fanatics

To what extent are you likely to increase your ownership by in the next 2 years? [Syndicate members who indicated they would increase]

▪ High-end syndicates have had success in recruiting new members through targeting events with wealthy attendees such as wealth management conferences

Small increase

31%

Moderate increase

Large increase

49%

19%

Implications for delivery of strategic priority ▪ Boost the GBRI model to better recruit and retain international owners ▪ Run targeted campaigns to attract new high wealth individuals into high involvement ownership

▪ 19% of syndicate members who said they wanted to increase their involvement indicated that this increase would be significant, either through sole ownership or through multiple partnerships and syndicates

Source: 2016 owner survey; Syndicate survey; Portas analysis

28

Findings | Provide differentiated experience to owners with high involvement

1f

There is little provision of benefits outside of raceday for owners with high involvement

Finding

Supporting evidence

1f. There is little provision of benefits outside of raceday for owners with high involvement

▪ There are few events provided to owners with high involvement outside of raceday ▪ Contrastingly, many syndicates proactively provide extensive benefits to members such as owner socials, sales & stud visits ▪ Club Wembley provides year round events to its members beyond matches including dinners with legends and golf days ▪ GBRI offers its members access to money can’t buy experiences (paid for by owners) ▪ The MCC provides regular high quality communications with all members through their preferred channel (i.e. email, letter) ensuring members are up to date with the Club’s activity but are not bombarded with emails ▪ The RAC club offers reciprocal access rights to clubs around the globe, allowing members a high-end experience beyond their ‘home club’

Source: 2016 owner survey, Portas analysis

Implications for delivery of strategic priority ▪ Develop a ‘gold club’ to owners with high involvement that provides exclusive and comprehensive year-round benefits alongside tailored support ▪ Utilise GBRI capacity and enhanced understanding / visibility of high CPO owners to offer tailored events outside of raceday to enhance their ownership experience

29

Findings | Provide differentiated experience to owners with high involvement

1g

There is limited knowledge and focus on engaging owners with high involvement

Finding

Supporting evidence

1g. There is limited knowledge and focus on engaging owners with high involvement Number of horses owned by top 10 largest owners in the UK

267 182 111 107 86 83 81

▪ No proactive process in place for identifying and engaging owners with high involvement who might increase 347 their involvement or lapse

▪ Develop a ‘gold club’ to owners that is supported by an effective system, process and people which enables targeted engagements ▪ Create working partnerships with high-end brands based on understanding of current High CPO owners’ leisure interests and hobbies

▪ 9 out of top 10 owners by number of horses in training are foreign investors and are not members of the ROA ▪ We currently lack information on why high involvement owners choose to have horses in the UK or why they decide to remove their horses from the UK

105 85

▪ There is limited visibility and knowledge of the 4% (~300) owners who own 20% of HIT

Implications for delivery of strategic priority

Domestic owner Foreign owner

Source: BHA; 2016 owner survey; Portas analysis

30

Findings | Provide differentiated experience to owners with high involvement

1h

There is limited support provided to owners to encourage them to become breeders

Finding 1i. There is limited support provided to owner breeders to start/grow their business

Supporting evidence ▪ There is limited visibility of the number, sizes and needs of owner breeders ▪ Fewer than 1% of respondents in the Ownership Survey identified as owner breeders, meaning there is a lack of understanding around their motivations ▪ Interviews with current owner-breeders illustrated the lack of support available to owners who want to go into breeding, with the majority relying on their own contacts / knowledge to make the jump

Implications for delivery of strategic priority ▪ Work with TBA to develop a model for supporting owner breeders to grow their businesses. For example, providing grants or targeted support ▪ Ensure information is easily accessible around how to get into breeding

▪ Utilise new database / understanding of owners to identify and contact owners who are thinking of becoming breeders

▪ Lack of proactivity in identifying horses that would be valuable to breed from and encouraging / supporting their owners to do so (although businesses such as Darley Club are proactive) ▪ Little / no regulation or oversight of breeders Source: 2016 owner survey, Portas analysis

31

Findings | Provide differentiated experience to owners with high involvement

1i

There is an opportunity to pull through younger people into high involvement ownership

Finding

Supporting evidence

1h.There is an opportunity to pull through younger people into high involvement ownership

▪ Young people are interested in racing but are not getting into high involvement ownership - 23% of racing club and syndicate owners are aged 25-44 compared to 10% for owners with higher involvement

Average age of Low CPO* owners vs high CPO** owners 8%

16-24

0%

24-35

0%

15%

Low CPO High CPO

8% 10%

35-44

▪ There has been limited focus on converting young people associated with existing owners into ownership (e.g. friends and family)

▪ Develop a “young owners club” – possibly within the gold club that provides engaging service and benefits for younger owners.

For example – more digital communication, events and benefits relevant to younger people ▪ Work with racecourses to enhance the “family experience” for owners – with a focus on the horse

23% 23%

45-54

31% 33%

55-64 8%

65-74 75+

Implications for delivery of strategic priority

31%

8% 3%

Source: 2016 owner survey, Portas analysis

*Racing Club members and Syndicate members

**Diehard . fanatics

32

Graphic divider page for deliver a consistent and sustainable experience to syndicate 2 Deliver consistent and sustainable experience to syndicate owners owners >>> a a horse with syndicate owners

33

Findings | Deliver a consistent and sustainable experience to syndicate owners

2

Summary of findings | Deliver a consistent and sustainable experience to syndicate owners

Summary of findings

2a

Syndicate members have been involved in racing for longer than commonly perceived

2b

Syndicate managers and trainers are looking to grow their number of HIT

2c

Syndicates represent an opportunity to boost diversity in ownership

2d

Syndicates represent an opportunity to retain at-risk owners and re-engage with lapsed owners

2e

Syndicate members want to feel “on the inside” and “part of the club”

2f

There is large variation in the different types of syndicate available to owners

2g

There is a lack of understanding of the number of syndicates owners and their contribution to HIT

2h

Syndicates get an inconsistent experience, especially around badge allocation and O&T facilities

2i

There is no proactive approach in place to ensure potentially high CPO owners who dip their toe in syndicates have a good experience and move onto higher involvement

2j

Service providers are not set up for dealing with current syndicates owners and the potential growth of syndicate owners

2k

Syndicate owners are unaware of the role of the ROA and their right to join

Source: Portas analysis

34

Findings | Deliver a consistent and sustainable experience to syndicate owners

2a

Syndicate members have been involved in racing for longer than commonly perceived

Finding

Supporting evidence

2a. Syndicate owners have been involved in racing for longer than commonly perceived How many years have you been involved in ownership?

<1 1-2

•

50% of syndicate members had been involved in ownership for more than 10 years, with over 2/3rds involved for more than 10 years -

4% 9%

2-5

18%

5-10

19%

10+

Source: Syndicate survey; Portas analysis

-

50%

This supports anecdotal evidence from syndicate managers that syndicate members are often experienced owners with a high level of racing knowledge

Implications for delivery of strategic priority ▪ Recognise the experience and knowledge of syndicate owners and tailor the experience offered accordingly e.g. involvement with the horse on raceday and ability to talk to the trainer and jockey in the parade ring ▪ Actively market syndicates to at risk owners who want to decrease their investment but maintain their involvement in the sport

Interview evidence also indicates that sole owners are becoming syndicate members because there is limited differentiation between their experience with 100% of a horse or with multiple small shares of horses

▪ 32% of current syndicate owners are currently involved / have been at some point in sole ownership

35

Findings | Deliver a consistent and sustainable experience to syndicate owners

2b

Syndicate managers and trainers are looking to grow their number of HIT

Finding

Supporting evidence

2b. Syndicate managers and trainers would grow HIT if they received help with the admin side and assistance with recruiting members What is your plan for the size of your syndicate (number of horses managed)?

50%

Stay the same

46%

Increase

Decrease

4%

Source: 2016 owner survey, Portas analysis

▪ Almost half of syndicate managers indicated that they are looking to increase the size of their syndicate (number of horses managed) ▪ Syndicate managers want help with recruiting new members (55%), reducing member churn (27%) and the admin side of racing (18%)

▪ Syndicate managers are mostly reliant on word of mouth for attracting new syndicate members

Implications for delivery of strategic priority ▪ Provide industry support to targeted syndicates to help them grow their # HIT (e.g. promoting good practices, giving them training on what owners want, sharing survey findings) ▪ Simplify the leasing proposition for trainers and syndicate managers to ensure it is robust and is promoted as a viable option that reduces risk on both sides

▪ Syndicate managers cite challenges with selling all their shares for syndicates which prevents them from increasing the number of horses in their syndicate ▪ Obtaining badges are the biggest challenge facing syndicate managers, which impacts on both the recruitment and retention of members

36

Findings | Deliver a consistent and sustainable experience to syndicate owners

2c

Syndicates represent an opportunity to boost diversity in ownership

Finding

Supporting evidence

2c. Syndicates represent an opportunity to boost diversity in ownership What is your annual income? [Syndicate members] Under £50,000

42.1%

£50,000 - £100,000

£100,000 - £150,000

£150,000 - £250,000

£250,000 +

Pefer not to say

27.6% 11.8%

▪ Syndicates are an affordable route into ownership, with syndicate owners are at the lower end of the income scale (42% <£50,000 per year) ▪ Females are under-represented in syndicates (20% of syndicates owners are female compared to +30% in owners with higher involvement)

Implications for delivery of strategic priority ▪ Use syndicates as a tool to attract younger owners into the sport. For example: - Syndicates marketed at young people - Syndicates for young people related to sports teams (football) etc.

- Syndicates with events and networking opportunities focused at younger owners - Syndicates providing digital content and use of social media - Appointing a good mix of younger syndicate ownership champions

▪ Translate female interest in watching horse racing into more female syndicate owners

5.9%

- Creating female only syndicates

4.5%

- Promoting syndicates as a social way to get more involved in racing

8.1%

- Developing year-round events that appeal to females - Appointing female ownership champions

Source: Syndicate survey; Portas analysis

37

Findings | Deliver a consistent and sustainable experience to syndicate owners

2d

Syndicates represent an opportunity to retain at-risk owners and re-engage with lapsed owners

Finding

Supporting evidence ▪ 73% of lapsed owners would probably or definitely return (Lapsed hot owners)

2d. Syndicates represent an opportunity to retain at-risk owners and re-engage with lapsed owners

▪ 20% of lapsed hot owners are just waiting for the right opportunity to return

What would encourage you to return to ownership?

Waiting for the right opportunity

Change in personal circumstances

▪ Promote syndicates to lapsed owners as an opportunity to get back involved with the sport at a lower cost ▪ Launch lapsed-alumni groups to keep lapsed owners engaged in ownership (e.g. newsletters, ownership opportunities through leasing, syndicates, owner for a day etc.)

20%

▪ 16% of lapsed hot owners miss the excitement and sense of being involved

Miss the excitement / involvement Increased prize money

▪ 52% of lapsed hot owners earn have an income per annum of less than £50,000

Implications for delivery of strategic priority

16%

▪ Launch an engagement tool (complimentary newsletter and event invitation) to maintain contact with lapsed / at-risk owners

10%

9%

Source: 2016 owner survey, Portas analysis

38

Findings | Deliver a consistent and sustainable experience to syndicate owners

2e

Syndicate members want to feel “on the inside” and “part of the club”

Finding

Supporting evidence

2e. Syndicates want to feel “on the inside” and “part of the club” Rank the following based on their importance to you [Syndicate members]

Ability to watch your horse run O&T facilities Parade ring access

Implications for delivery of strategic priority

▪ The most important aspects of ownership to syndicate members are: ability to watch your horse run, O&T facilities, Parade ring access and access to trainer / jockey on raceday – elements that are central to feeling ‘on the inside’

▪ Clarify and communicate the number of badges that syndicates are entitled to manage syndicate member expectation

▪ Up and coming and racing club owners over-index for exclusive access/involvement with the horse as their most enjoyable aspect of raceday (20% vs. 16%)

▪ Work with trainers / jockeys to increase contact with syndicate members on raceday – an important aspect of ‘feeling on the inside’

▪ Develop a tiered membership with clear stipulations on levels of access

Access to trainer / jockey

Winning connections experience Non raceday involvement

▪ Racing club members over-index significantly for welcome by the racecourse as what would enhance their raceday experience (33% vs. 14%)

Car parking availability Tailored comms

Source: 2016 owner survey; Syndicate survey; Portas analysis

39

Findings | Deliver a consistent and sustainable experience to syndicate owners

2f

There is large variation in the different types of syndicate available to owners, and limited information available on how syndicates work and which is the ‘right one’ to join

Finding

Supporting evidence

Implications for delivery of strategic priority

2f. There is large variation in the different types of syndicate available to owners, and limited information available on how syndicates work and which is the ‘right one’ to join

▪ In the Paddock not kept up to date and has minimal impact in recruiting new owners ▪ Huge variety of syndicates, with limited information available to owners / potential owners to help them to decide

Illustrative

▪ Develop In the Paddock / design new website to offer new owners a centralized source of information on syndicates to help them understand how syndicates work and make the right choice – 38% of members chose their syndicate through their own research, therefore increasing the information available would assist their decision making How did you choose your syndicate?

Friends / family

44.0%

Own knowledg…

Trainer / breeder Other*

Low cost

Source: Syndicate survey, Portas analysis

38.0% 11.0% 7.0%

High end

40

Findings | Deliver a consistent and sustainable experience to syndicate owners

2g

There is a lack of understanding of the number of syndicates owners and their contribution to HIT

Finding

Supporting evidence

2g. There is a lack of understanding of the number of syndicates owners and their contribution to HIT

▪ Whilst there is a requirement for syndicate managers to register their members, only 54% of managers do so – there is limited / no enforcement of this requirement

Do you record all members with Weatherbys?

Yes

▪ Syndicate managers are required to share their members information with Weatherby’s however the process is highly administrative so many managers do not comply with it, and many report Weatherby’s does not properly store the data

54%

No

46%

Why do you not record members?

Too difficult / too much admin

64%

No point for small share syndicate members

Other**

Implications for delivery of strategic priority ▪ Enforce the requirement for all syndicate managers to register their members ▪ Work with BHA to reduce the admin in the registration process to make it as simple as possible ▪ Acquire syndicate owner data by: -

Targeting syndicate members to become full members of the ROA

-

Offering them engaging newsletters/ offers they can sign up to receive

-

Considering an ROA syndicate membership

27%

9%

Source: syndicate survey; Portas analysis

41

Findings | Deliver a consistent and sustainable experience to syndicate owners

2h

Syndicates get an inconsistent experience, especially around badge allocation and O&T facilities

Finding

Supporting evidence

2h. Syndicates get an inconsistent experience, which is highly dependent on their syndicate manager Please score the following based on your level of satisfaction [Syndicate members]

▪ 26% of syndicate members were detractors, rating their likelihood to recommend to a friend between 1-6 ▪ 40% of syndicate members were promoters, rating their likelihood to recommend to a friend a 9 or 10

Parade ring access Access to trainer / jockey Ability to watch your horse run

▪ O&T facilities are incredibly important to syndicate members, but rank bottom in satisfaction

Non raceday involvement Tailored comms Winning connections experience Car parking availability

▪ The average satisfaction with syndicate managers was 89% (from the syndicate survey)

Implications for delivery of strategic priority ▪ Promote high performing syndicates in ROA communications ▪ Create a quality mark for syndicates and make this visible through a website such as inthepaddock.co.uk - 79% of managers would support an In the Paddock style selection website Would you support an ‘inthepaddock.co.uk’ style selection website [managers responses] No 21.0%

Events outside of raceday Ability to bring friends and family Attending without a runner O&T facilities

Source: 2016 owner survey; Syndicate survey; Portas analysis

Yes 79.0%

42

Findings | Deliver a consistent and sustainable experience to syndicate owners

2i

There is no proactive approach in place to ensure potentially high CPO owners who dip their toe in syndicates have a good experience and move onto higher involvement

Finding

Supporting evidence

2i. There is no proactive approach in place to ensure potentially high CPO owners who dip their toe in syndicates have a good experience and move onto higher involvement Do you upsell to members to encourage them to buy more shares in horses you manage?

[Syndicate managers]

No 40.9%

Yes 59.1%

▪ The ROA has no current process in place to monitor or reach out to these high CPO owners ▪ Syndicate managers are aware of these owners, and attempt to upsell to them to increase their involvement through purchasing more shares – however the ROA has no oversight of these owners and therefore cannot offer support to them ▪ Syndicate managers are focused on increasing involvement within their syndicate, there is no incentive to pull members through to sole ownership

Implications for delivery of strategic priority ▪ Facilitate small / moderate increases in ownership (through syndicate shares or partnerships) by ensuring the joining process is straightforward ▪ Take a targeted approach to identifying and supporting the small number of high potential owners who want to significantly increase their involvement in ownership To what extent are you planning to increase your ownership involvement over the next 2 years?

Small increase Moderate increase Large increase

Source: Syndicate survey; Portas analysis

31%

49%

19%

43

Findings | Deliver a consistent and sustainable experience to syndicate owners

2j

Service providers are not set up for dealing with current syndicates owners and the potential growth of syndicate owners

Finding 2j. Service providers are not set up for dealing with current syndicate owners and the potential growth of syndicate owners

Supporting evidence ▪ Most racecourse facilities are not structurally set up for high number of syndicate owners (e.g. limited space in Parade ring/O&T facilities) however there are some exceptions such as Chester/Bangor

Implications for delivery of strategic priority ▪ Work with racecourses to improve their attitudes and customer service provided to syndicate owners ▪ Create a quality mark for syndicates and make this visible through a website such as In the Paddock

▪ Syndicate owners cite that racecourse staff often do not provide good customer service to syndicate owners ▪ Trainers – in particular small trainers – cite struggling with accommodating large numbers of syndicate owners

Source: Syndicate survey; Portas analysis

44

Findings | Deliver a consistent and sustainable experience to syndicate owners

2k

Syndicate owners are unaware of the role of the ROA and their right to join

Finding

Supporting evidence ▪ 49% of syndicate members didn’t know that the ROA existed / how to join, therefore membership rates were lower than in the general owner population

2k. Syndicate owners are unaware of the role of the ROA and their right to join Why are you not a member of the ROA?

I don’t know what the ROA does / how to join

49%

I didn’t know syndicate owners could be members

21%

It is too expensive

12%

I don’t care about the benefits / I’m not interested

12%

Source: Syndicate survey; Portas analysis

Implications for delivery of strategic priority ▪ Run a communications campaign to highlight the work that the ROA does as an advocate for all owners ▪ Develop an ROA syndicate

▪ Many syndicate members believe that ROA membership is only for sole owners and that the ROA doesn’t represent them – a finding supported by anecdotal interview evidence ▪ 12% of syndicate members do not join the ROA because they find the membership fee too high

45

3

Enhance the baseline experience for all owners in the areas that matter most

46

Findings | Enhance the baseline experience for all owners in the areas that matter most

3

Summary of findings | Enhance the baseline experience in the areas that matter most

Summary of findings*

3a

The raceday is a critical, but inconsistent, part of the experience for all owners

3b

The pinnacle for all owners is winning a race – but the experience could be amplified and shared by placed owners

3c

All owners love watching their horse run – but for many this is fewer than 5 times per year

3d

All owners want increased involvement with the horse on raceday

3e

(Small) trainers have limited capacity for providing owners with the comms, customer service and non-raceday horse access they want**

3f

Racecourses want to deliver to owners, but don’t know who they are or what they want

3g

There is a lack of a coherent identity for racehorse ownership

3h

There is insufficient visibility of owner data

3i

The ownership experience can be impersonal and administrative, with limited support available to owners

3j

There is limited use of digital technology to enhance the baseline experience of owners

Source: Portas analysis

* Findings on prize money excluded as it is out of scope of the project

**initial findings, further analysis to be completed in year 2 of the project

47

Findings | Enhance the baseline experience for all owners in the areas that matter most

3a

The raceday is a critical, but inconsistent, part of the experience for all owners

Finding

Supporting evidence

3a. The raceday is a critical, but inconsistent, part of the experience for all owners

▪ Enjoyment of watching your horse run on raceday is the top reason for getting involved in ownership (>70%)

Why did you lapse your ownership?

▪ However, 44% of owners who lapse cite their racecourse experience

Cost of keeping a horse in training

82.0%

Lack of prizemoney

Racecourse experience

▪ Owners cite significant variation in their raceday experience at different racecourses

65.0%

44.0%

Trainer experience

26.0%

Limited success

24.0%

Source: Syndicate survey; Portas analysis

▪ Syndicate owners value the ability to watch their horse run on raceday the highest

Implications for delivery of strategic priority ▪ Develop an Industry Quality Mark to deliver a more consistent raceday experience across all racecourses -

Work with racecourses to help them to improve their Quality Mark score by improving aspects of the owners’ raceday experience

▪ Revise the Gold Standard to encourage racecourses to provide excellence in the owner’s raceday experience

48

Findings | Enhance the baseline experience for all owners in the areas that matter most

3b

The pinnacle for all owners is winning a race – but the experience could be amplified and shared by placed owners

Finding

Supporting evidence

3b. The pinnacle for all owners is winning a race – but the experience could be amplified and shared by placed owners What is the most enjoyable aspect of ownership?

Involvement with training and racing plans

19.0%

Winning

17.0%

▪ Winning is important to owners - 49% of owners state that winning is everything or important - 17% of owners state winning is the most enjoyable aspect of ownership - 30% of owners entered ownership for the dream of winning races

▪ Many owners however cite their winning experience could be optimized, such as - Limited time/space in winning connections - Not being able to watch / re-watch the race

Attending racedays

14.0%

- One small trophy - Lack of atmosphere in winning enclosure

Social

Status

Source: Portas analysis

4.0%

1.0%

▪ A key driver of owners considering reducing their involvement is not winning (At-risk owners over-index for “winning” being the most enjoyable part of ownership)

Implications for delivery of strategic priority ▪ Work with racecourses to enhance the winning experience. For example: - Provide multiple trophies / mementos - Have the Jockey / Trainer present with the winning owner for longer than just the winners enclosure - If possible, present winning owners with their trophies at the end of the race in front of the grandstand

▪ Work with racecourses to enhance the experience of placed owners. For example: - Proactive discretionary entry into winning connections if winner is not present - Ensuring name of owners is always announced at the finish - Placed owners’ room, equivalent to a winning connections room

49

Findings | Enhance the baseline experience for all owners in the areas that matter most

3c

All owners love watching their horse run – but for many this is less than 10 minutes per year

Finding

Supporting evidence

3c. All owners love watching their horse run – but for most, this is fewer than 5 runs per year What motivated you to become an owner?

Enjoyment of watching your horse run

76.0%

Non Raceday elements

42.0%

Dream to win races

33.0%

Social aspect

31.0%

Source: BHA; 2016 owner survey; Portas analysis

Implications for delivery of strategic priority

▪ Enjoyment of watching your horse run on raceday is the top reason for getting involved in ownership (>70%)

▪ Work with racecourses and broadcasters to provide owners with replays of their horses running

▪ However, the average runs per horse in 2018 was 4.8 (flat - 5.2, jumps 3.7), with many owner being unable to attend all races due to time commitments, difficulty travelling or late notice from the trainer

▪ Work with trainers to understand opportunity to increase numbers of runs per horse per year

▪ Liaise with racecourses and broadcasters to provide new “views” for owners on raceday

50

Findings | Enhance the baseline experience for all owners in the areas that matter most

3d

All owners want increased involvement with the horse on raceday

Finding

Supporting evidence

3d. All owners want increased involvement with the horse on raceday What is the most enjoyable aspect of raceday? [syndicate members]

Ability to watch your horse run

Implications for delivery of strategic priority

▪ Exclusive access and involvement with the horse was the most frequently cited by owners as their most enjoyable aspect of raceday (16%)

▪ Work with racecourses to provide more opportunities on raceday for owners to be involved with the trainer and jockey e.g. talking strategy in the parade ring

▪ Syndicate owners rated access to the trainer / jockey as the 4th most important aspect of the raceday

▪ Identify opportunities for owners to access / see their horse ‘behind the scenes’ e.g. when it is being saddled up

O&T facilities Parade ring access Access to trainer / jockey Winning connections experience Non raceday involvement Car parking availability Tailored comms Attending without a runner Ability to bring friends and family Events outside of raceday

Source: Syndicate Survey; 2016 owner survey; Portas analysis

51

Findings | Enhance the baseline experience for all owners in the areas that matter most

3e

(Small) trainers have limited capacity for providing owners with the comms, customer service and non-raceday horse access they want

Finding 3e. Small trainers have limited capacity for providing owners with the comms, customer service and non-raceday horse access they want

Supporting evidence ▪ Interviews with trainers have highlighted an industry shortage in qualified and capable staff ▪ Anecdotal evidence from trainers that constantly changing BHA regulations and forms take up a large portion of their time that should otherwise be devoted to training / customer engagement ▪ Small trainers cite often being overwhelmed by syndicate owners

Implications for delivery of strategic priority ▪ Support small trainers by: - Reducing their non-training workload (i.e. stabilizing changes in regulations) - Developing models to outsource their ‘nontraining’ workload (i.e. support centres, increased use of syndicate managers)

▪ Support small trainers by developing a quality mark for syndicates so that trainers can select which syndicates they work with ▪ Support trainers to enhance customer service and communications through training and technology

▪ Fully utilise syndicate managers as frontline customer liaison managers – simplifying comms as they only need to communicate with the manager who then passes the message

Source: Portas analysis

52

Findings | Enhance the baseline experience for all owners in the areas that matter most

3f

Racecourses want to deliver to owners, but don’t know who they are or what they want

Finding

Supporting evidence

3f. Racecourses want to deliver to owners, but don’t know who they are or what they want

▪ The majority of racecourses have demonstrated desire to improve owners experience and have real incentive to do so with new media rights deal

Visibility of owners within the racing industry

▪ However, racecourses have very limited data available on owners, and are often reliant on syndicate managers and trainers for contacting and providing information to owners

All owners

Known, registered owners

Implications for delivery of strategic priority ▪ Provide racecourses with improved understanding of owners, and access to owner data ▪ Incentivize trainers and syndicate managers to communicate more effectively with owners on racecourse behalf

▪ Operate an ROA / BRO customer liaison service at racecourses – with the ROA utilizing the data they have on owners to ensure a personalized welcome to the course

Unknown owners

Source: Portas analysis

53

Findings | Enhance the baseline experience for all owners in the areas that matter most

3g

There is a lack of a coherent identity for racehorse ownership

Finding

Supporting evidence ▪ The ownership journey is made up of contact with a number of organisations (e.g. register as an owner with Weatherby's, register as a member with ROA, register as a syndicate manager owner with RSA)

3g. There is a lack of a coherent identity for racehorse ownership What word do you most associate with racehorse ownership?

Exciting

76%

Expensive

66%

Fun

Frustrating

49% of syndicate members don’t know what the ROA does or how to join

Implications for delivery of strategic priority ▪ Develop a coherent identity and brand for British racehorse ownership with other racing entities providing support through clearly defined SLAs ▪ Improve the ownership experience to readdress the perceived value for money that ownership delivers ▪ Clarify the rights and benefits of all levels of owners to manage expectations

▪ Expensive is the second most popular word that that owners associate with racehorse ownership

53%

41%

Source: Syndicate Survey; 2016 owner survey; Portas analysis

54

Findings | Enhance the baseline experience for all owners in the areas that matter most

3h

There is insufficient visibility of owner data

Finding

Supporting evidence

3h. There is insufficient visibility of owner data

Do you register your members with Weatherbys? [Syndicate managers]

54%

Yes

Why don’t you register members? [Syndicate managers] Too difficult / too much admin

64%

No point for small share syndicate members Other**

▪ Only 54% of syndicate managers register their members with Weatherbys – because the system is too complex / time consuming

▪ Work with BHA to evaluate possibility to share data more effectively ▪ Develop data on owners using new ROA member database ▪ Work with service providers to provide them with enhanced data on owners on raceday

▪ ~30% of syndicate members are not ROA members

46%

No

▪ There is limited syndicate owner data (i.e. only those who have chosen to become members of the ROA)

Implications for delivery of strategic priority

▪ ROA has limited ability to access BHA data on owners (only ROA members)

▪ ROA has limited understanding of which owners are lapsing and why

27% 9%

Source: Syndicate survey; Portas analysis

▪ Racecourses have limited ability to access BHA or ROA data on owners

55

Findings | Enhance the baseline experience for all owners in the areas that matter most

3i

The ownership experience can be impersonal and administrative, with limited support available to owners

Finding 3i. The ownership experience can be impersonal and administrative, with limited support available to owners

Supporting evidence ▪ Extensive complaints from members about usability and level of administration in the registration, and reregistration process ▪ There are no relationship managers assigned to owners - Club Wembley has a dedicated relationship manager and hotline for its highest tier members, for lower tier members a helpdesk is available on matchdays

Implications for delivery of strategic priority ▪ Develop a “owners club” with relationship manager and information portal available to members ▪ Develop a concierge function for owners on raceday to personalise their raceday experience ▪ Create a members portal where owners can view their horse’s entries and declarations

▪ France Galop developed a dedicated online account where owners can visualise their earnings and monitor their horse’s entries and decs ▪ Limited personalization of experience for owners on raceday, although the pilot of the owner liaison support at Newmarket was evaluated as a success

Source: Portas analysis

56

Findings | Enhance the baseline experience for all owners in the areas that matter most

3j

There is limited use of digital technology to enhance the baseline experience of owners

Finding 3j. There is limited use of digital technology to enhance the baseline experience of owners

Supporting evidence ▪ The PASS system is used by most racecourses to assist in the badge allocation process for owners and trainers with a runner, however it is perceived to be sub-optimum ▪ There is limited use of technology in enhancing the raceday experience for owners (e.g. jockey cams, stable pit lane cams, instant replays, raceday app)

Implications for delivery of strategic priority ▪ Develop a digital strategy for enhancing owners experience ▪ Work to develop the concierge system which uses technology to supplement and assist an on course liaison team

▪ There is limited use of technology by trainers and syndicate managers to serve owners, although some technologies are emerging (e.g. Racing Manager) ▪ Bayern Munich’s ArenaCard is a cashless, contact card system used by season ticket holders for entry, parking, food and drink and more

Source: Portas analysis

57

Contents

Context Identified strategic priorities Supporting findings Next steps

McKinsey & Company

10 58

Next steps

Our two key next steps are to implement quick wins and further develop the blueprint

1) We will progress the execution of the quick wins

Source: Portas analysis

2) We will develop a high level design for the blueprint of the ownership proposition

59

Next steps | Developing a blueprint

2

The blueprint will be further developed in the remaining part of phase one

Next steps for blueprint design in phase 1 ▪ Design ownership proposition including: – Benefits offered to members

Next steps for blueprint design in phase 2/3 ▪ Conduct feasibility study for design of ownership proposition (e.g. benefits and eligibility criteria)

– Tiering of benefit packages

– Pricing of membership packages

▪ Develop the business model for delivering the ownership proposition

– Branding of ownership proposition ▪ Identify key next steps to develop business model for delivering ownership proposition

Source: Portas analysis

60