Racing’s Cash Cows: Are UK Racecourses Milking Owners and Punters Dry?

It’s a funny old business, British racing. At the heart of an industry worth £4 billion to the UK economy—attracting 5 million spectators annually—are racecourses that rake in hundreds of millions, yet seem perpetually reluctant to reward the very people keeping the whole show on the road. Owners bankroll the horses, punters provide the excitement, and racecourses? Well, they pocket the profits and leave a few crumbs for the rest.

The Numbers That Don’t Add Up

Take a closer look at the financials, and the imbalance becomes glaringly obvious. In 2018, UK racecourses collectively generated £575 million in turnover but scraped by with an operating profit of just £28 million after capital expenditures. Where did all the money go?

• Prize Money: A mere 29% of total income was allocated to prize money, leaving owners—who spend up to £3,000 per month per horse—to wonder why they bother.

• Overheads and Event Costs: These swallowed up 60% of income, a figure that would be understandable if the hospitality sandwiches weren’t served on bread so dry it doubles as a racecard bookmark.

• Profit: Racecourses eked out 11% as operating profit. Modest, you might think, until you consider that owners are funding the product while getting peanuts in return.

Fast-forward to 2022, and British racecourses invested a record £88.9 million into prize money. A generous boost? Not exactly—it’s just a 2.9% increase from 2018, barely enough to keep pace with inflation, let alone the skyrocketing costs of owning a racehorse.

The Jockey Club: A Microcosm of the Industry

The Jockey Club, which operates 15 racecourses—including Cheltenham and Epsom—provides a telling example. In 2023, it reported a core operating profit of £12.7 million, down from £20.2 million in 2022. The culprit? Rising costs for wages, utilities, and event-related expenses.

Of course, these numbers might elicit sympathy if the Jockey Club weren’t also charging owners exorbitant entry fees for races where the prize money wouldn’t cover a month’s feed bill. It’s like hosting a dinner party where guests bring the food, only to be charged for using your plates.

Owners Left Standing—Literally

If being underpaid wasn’t insult enough, many owners find themselves treated like second-class citizens even when their horses are running. Take Pontefract, for example—a charming track with a long history of racing. Yet owners have complained they can’t even get a seat in the stands on busy days. Imagine pouring thousands into training fees, entry fees, and transport costs, only to stand in the rain with a soggy racecard because the racecourse didn’t think you’d mind.

Pontefract is hardly alone in taking its clientele for granted. Too many racecourses seem to view owners not as partners but as inconveniences—people to be squeezed for entry fees and left to fend for themselves.

The Spectator Dilemma: Where’s the Value?

Horse racing is Britain’s second-largest spectator sport, yet the racecourses often fail to deliver value for punters. Annual attendance hovers around 5 million, but how many leave feeling like they’ve got their money’s worth?

• Ticket Prices: Fancy a day at the races? Be prepared to fork out upwards of £50 for entry, not to mention £25 for a plastic glass of Pimm’s and a limp sandwich.

• Small Fields: Thanks to paltry prize money, many owners hold their horses back for "easier" opportunities, leaving punters stuck watching four-runner fields dominated by odds-on favourites.

Despite this, racecourses manage to maintain their glossy veneer, hosting Ladies’ Days and corporate events that prioritise glamour over the grit of competitive racing. It’s racing, Jim, but not as we knew it.

The Commercial Immorality of It All

What kind of business pays just 29% for its basic product? Imagine a luxury car manufacturer spending less than a third of its revenue on cars. Or a brewery allocating 30% of its income to beer. It’s laughable. And yet, in British racing, this is the norm.

Racecourses love to point to their "investments" in prize money, but it’s clear this isn’t generosity—it’s the absolute minimum they can get away with while maintaining the illusion of fairness. Owners, meanwhile, continue to bankroll the industry out of passion, pride, or plain stubbornness.

The Wider Economic Picture

Let’s not forget the big picture: horse racing contributes £4 billion to the UK economy—0.2% of national GDP—and employs thousands across stables, racecourses, and related industries. But if the financial model continues to shortchange those at the coalface, the whole house of cards risks collapse.

Humour in the Madness

It’s hard not to laugh at the absurdity. Imagine a billionaire owner like Sheikh Mohammed queuing up for a plastic pint while his horse competes for a prize pot barely big enough to buy one of his saddles. Or Pontefract's management handing out a “priority queue pass” for seats, as if paying six figures annually to fund a horse isn’t enough to guarantee a chair.

And then there’s the Jockey Club lamenting its declining profits while charging £12 for a sausage roll that tastes like a distant cousin of plywood.

What Needs to Change?

The financial imbalance isn’t just a bad look—it’s a ticking time bomb. Here’s what needs to happen:

1. Prize Money Revolution: Racecourses must allocate a minimum of 30% of their total revenue to prize money. Anything less is a slap in the face to owners and trainers.

2. Owner Incentives: From reduced entry fees to proper hospitality, owners should be treated as VIPs—not walking wallets.

3. Fairer Revenue Distribution: Racecourses, bookmakers, and racing authorities need to agree on a model that reflects the contributions of everyone involved, not just those holding the purse strings.

4. Value for Punters: More competitive fields, better facilities, and affordable food and drink would go a long way toward restoring punters’ faith in the sport.

Conclusion: A Rich Industry That Feels Poor

British racing has all the ingredients for success—record-breaking revenues, massive public interest, and a global reputation for excellence. And yet, the sport often feels like it’s held together by the goodwill of owners and the naivety of punters.

It’s time for racecourses to stop hoarding profits and start sharing the wealth. Because if owners walk away and punters lose faith, all the Pimm’s in the world won’t save an empty grandstand.

Let’s hope the next set of financial results comes with a side of fairness—because right now, it’s all profit and no principles.