Press Release - Targeted Resumption of Racing

Press Release

Released on behalf of the Racing Association, Phumelela, Gold Circle, Kenilworth Racing, the Thoroughbred Horseracing Trust and The National Horseracing Authority

Following Government’s announcement to extend the COVID-19 Lockdown to the end of April, there have been numerous meetings of the Racing Operators, the Racing Association and The National Horseracing Authority over the Easter weekend. The following update is hereby provided :-


Targeted Resumption of Racing

On the assumption that the extended national Lockdown is lifted AND that racing is permitted to resume with adequate betting revenues flowing to the Racing Operators, the plan is to recommence racing on Friday, 1 May. To this end, The National Horseracing Authority is in the process of making a coordinated representation to Government on behalf of the South African Horseracing Industry to enable such resumption after Lockdown is lifted, under whatever Government restrictions are implemented.

Given that we will have effectively lost 5 weeks of racing, the Racing Operators have agreed to push the National Feature Race Programme back around a month, which will mean that the Vodacom Durban July will take place on the last Saturday in July (with the Gold Cup meeting pushed out to the end of August). This will allow the Highveld to move a slightly revamped Champions Day (featuring the Champions Challenge and six other major races) to the last Saturday in May and stage the Horse Chestnut Stakes (Gr 1), SA Derby (Gr 1) and SA Oaks (Gr 2) on Saturday 2 May.

In the Western Cape, racing will now resume on Saturday 2 May (alongside Turffontein), with the first legs of the 3yo Winter Series (Variety Club Mile and Sweet Chestnut Stakes), together with the Klawervlei Farm 2yo Sales race, moved to this day and the race programme amended accordingly. This will enable Gold Circle to move their night meeting on Friday 1 May to Sunday 3 May. Gold Circle confirms that during the period May to July there will be no night racing at Greyville and these meetings will be moved to alternative days.
In the Eastern Cape, the lost East Cape Nursery (L) will be rescheduled for Friday 1 May, and the second and third legs of the World Sports Betting Poly Challenge will be relocated to 8 and 25 May respectively.
Depending on the Government regulations applicable after the lifting of the Lockdown, it is likely that we will have to resume racing “behind closed doors” (possibly with even tighter restrictions than before) with only essential participants allowed to attend race meetings. Given this, and the unique logistical challenges involved in staging racing at Flamingo Park, a decision will only be taken to resume racing in Kimberley once the government’s directives post lockdown are known.


Stakes

It is common cause that the Racing Operators’ businesses have been under significant pressure of late for several well documented reasons. This has been further heightened by the national Lockdown necessitated by the COVID-19 containment measures implemented by Government. During this period virtually no revenue has been generated whilst the Racing Operators have had to continue funding their operations. This includes a significant effort by the Racing Operators, The National Horseracing Authority, the Racing Association and all stakeholders to keep the training centres operational under strict access control and sanitization protocols.

Due to this drying up of revenue and the uncertainty around the timing of the resumption of racing, football and other sports around the world (on which the Racing Operators are heavily reliant for revenue), it is unfortunately unavoidable that racing will resume with a lower level of stakes until the businesses of the Racing Operators normalize. In the interim, the Racing Association has agreed to contribute R13.1 million towards stakes in Phumelela regions and the Western Cape from May through July, thereby helping to mitigate the resulting reduction in stakes in those regions.

It has been agreed nationally to reduce the MINIMUM stake thresholds for Pattern and Feature Races as follows :-

Grade 1 - Open R425k, F&M / 2yo R325k
Grade 2 - Open R175k, F&M / 2yo R150k
Grade 3 - Open R125k, F&M / 2yo R100k
Listed - R85k
Non-Black-Type - R80k

The necessary communication with the Asian Pattern Committee in relation to the amended stakes levels and new dates for the Pattern has been provided by The National Horseracing Authority.

In addition, minor races stakes will be run at reduced levels in all regions with a single stake for all minor race categories per region as follows :-

KZN - R70k
Highveld - R67,5k
Western Cape - R40k
Eastern Cape - R35k
Northern Cape - R25,5k

The Racing Operators are acutely mindful of the devastating impact this stakes reduction will have on all participants in the sport and are committed to increasing these stakes levels as soon as they are able to. Phumelela and Kenilworth Racing are extremely grateful to the Racing Association for their support, without which these minor stakes levels would have been significantly lower.


Staff

The Racing Operators and The National Horseracing Authority are addressing all other areas of their businesses too, not least of which how their staff are treated during this challenging time. In line with Government guidance and directives, staff who are either not required or unable to work during the Lockdown period, will be placed on annual leave as appropriate.

Further, the various senior executives of all three Racing Operators and The National Horseracing Authority have had their remuneration significantly reduced (by up to 50%) even though their workloads have remained unchanged and even enhanced in most cases. This in line with the financial hardship everybody in the industry is facing currently.


The National Horseracing Authority has also agreed to reduce the Racing Operators’ levies (the primary funding source of The National Horseracing Authority) by 50% for the months of April, May and June.


PLEASE NOTE that as this situation is extremely fluid, the Industry Stakeholders will continue to meet on a regular basis and if there are any material changes to the above, we will keep everybody informed.



Vee Moodley
Chief Executive

Vee

What about Trainers and Jockeys?

Will Trainers be given a 6 month rent break?

Will riders get same riding fee?

Will trainers and jockeys still get 10%?

Plenty Questions to be asked Yet!

And if Trainers get rent break will they pass it on to owners ?

Have they lobbied vets, feed suppliers, etc.? Surely it's been business as usual for them?

PC wrote: Have they lobbied vets, feed suppliers, etc.? Surely it's been business as usual for them?

Had to apply for permits like everyone else and if proved to be essential were passed

My query was merely about cost cutting efforts on their part, considering the sacrifice in stakes

Salary reduction on a sliding scale... 0 to 50%........the 50% reduction is massive......

Sorry PC misunderstood

Maybe it`s time for punters to demand a rebate as well?

Not sure if racing will continue.If you saw the news tonight and listened to these people speaking,the chances of a further extension looks odds on.

Dear Members
The current lockdown has caused considerable disruption to the income streams of horse racing operators, to the extent that our operator, Phumelela, can no longer afford to honour the existing stakes agreement. Whilst the RA does not accept nor condone a reduction in stakes payments, we have to be realistic and work with Phumelela to achieve the best possible outcome for our members.
We can confirm that subject to the government lifting the current “lockdown”, racing will recommence on 1st of May. Due to its lack of income, Phumelela can only offer 40% of the amounts contracted to the Stakes agreement for the month of May. Thereafter the stakes to be paid by Phumelela for June would depend entirely upon the income received in May. The stakes for July would depend upon the income received in June. An income to stakes formula for the remainder of the season will be agreed between Phumelela and the RA by the end of this week.
Given this dramatic reduction and the uncertainty of stakes payable, specifically for the next three months, the RA Board has agreed to a maximum contribution over the 3-month period, 1st May 2020 to 31st July 2020, of R13.1 Million.
With respect to the RA contribution in May our approach is to attempt to return all regions to approximately 60% of the stakes they were due to race for in May, had there been no reduction in stakes. We are thereby supplementing the stakes by around 20% for the month of May, and by a yet unknown percentage for June and July. The stakes have been reallocated per the attached stakes schedule and will be weighted in favour of minor races for the time being.
The arrangement has been agreed to on the basis that the RA strongly deems the unpaid stakes per the current agreement be a liability. In addition, any new monies received for sponsorship on races for the next three months will be allocated in full to the races sponsored for the benefit of owners over and above the scheduled stakes. On that note any would be sponsors should read the additional two attachments, one for feature races and the second for smaller races. A bidding process for all races will be applied although packaging options are available. All offers will be considered.

2/..............
Contact details are provided should you wish to get involved. If you do the racing community in its time of need will remember that support for a long time.
Over the space of the next couple of months we will need to negotiate a new stakes agreement for the new season.
The Racing Association has some cash reserves but they are insufficient to render this kind of support for an extended period. With such uncertainty, and to conserve cash, the Board has decided to put on hold the replacement process for both the CEO and the Chairman for the time being. In addition we have suspended directors’ fees until 31st July 2020.
We would like to extend our sincere gratitude to the trainers, grooms and supporting staff and businesses who have kept our horses fed and fit during this unprecedented lockdown.
We trust we will be allowed to race as planned and whilst the content of this communication is not ideal we hope it creates some clarity on what we will be racing for come the 1st of May.
Stay safe. Yours faithfully,
THE RACING ASSOCIATION
BRIAN RILEY ACTING CHAIRMAN
(Signed on behalf of Mr Riley)



The list of minor races from 1st May 2020 to 31st July 2020, per region, per month is detailed in the schedule below.
We have proposed that each race carries a minimum sponsorship amount of R10 000 per race and that a minimum package of 5 races or R50 000 is set.
However, we will consider any and all bids and appreciate whatever support you can afford.
In order to submit your bid to sponsor minor races in a region please email your bid amount, the region and the races/months you would like to sponsor to the office of the RA before the “closing date for sponsorship bid” detailed in the schedule below to penny@racingassociation.co.za
Your support in sponsoring our minor racing in these times would be greatly appreciated.

Well at least some transparency.
I am sure we were expecting hard times as many other industries will also have to endure.

At least we have a plan in place.
I would just add that the Vets need to have less protection from NHA and give the trainers a bit more flexibility in keeping costs down.

Its going to be an uphill struggle and take years to correct.