As racing wrestles with its image in the quest for a new audience, a stark warning about its short-term prospects was issued yesterday, when the leader of Britain's 60 racecourses predicted that sponsorship could fall by as much as 40 per cent during the economic recession.
The figure was suggested by David Thorpe, chairman of the Racecourse Association. Inevitably, it cast a gloom over the Westminster hall that housed the annual conference of the industry, a gathering that had hitherto been congratulating itself on a new spirit of collaboration.
Thorpe described the diminishing returns from sponsorship as “a very serious situation”. His estimate was swiftly rebutted by Nigel Payne, chief executive of the Sponsors' Association, who believes that the present shortfall is less than 10 per cent, possibly rising to 20 per cent later this year.
Whatever the true figure, it accelerates an alarming trend. Figures within the annual report of the British Horseracing Authority, issued yesterday, show that sponsors' contribution to prize-money has already dropped more than £3 million in four years.
A reduction in commercial input is just one product of an economic crisis described by Paul Roy, chairman of the BHA, as “the scariest in our lifetime”. Paul Dixon, representing racehorse owners, admitted some of his constituents “will find it harder to pay for their horses in training”, a prospect that raises alarms about horse welfare.
There can be no quick fix but, according to Chris McFadden, who chairs Racing Enterprises Ltd (REL), the solution lies with the Brand Review now ongoing. The project, handled by the research company Harrison Fraser, aims to identify target consumers for racing and the reasons why they have not engaged with the sport.
McFadden explained: “The demographic of our audience is ageing and this is not what sponsors want to hear. We need to recognise that our sport is not connecting with enough of the 18-35 age group, never mind the better half of the gender divide or the multi-cultural nature of our society. Until we address this problem, sponsors and broadcasters will not come back.”
That message was reiterated by David Fraser, for the research company. Indeed, he offered a withering assessment of racing's shortcomings, calling the sport “a spectacularly white experience” and adding: “There is a lot more involved in marketing to women than running a Ladies' Day.”
Fraser's lateral thinking, due for report stage in May of this year, will prove a salutary experience for traditionalists. A central marketing fund of £5 million must be found to implement some of the proposals. Thorpe, for the racecourses, is clinging to the hope that it is not all too late. “We should have done this years ago when we saw all the indicators,” he said.
Roy lifted the mood by citing the achievements of Tony McCoy, Hayley Turner and Ryan Moore. The Killers' emotive hit, Human, played over a dramatic video of the year's highlights. But, as Roy then said: “Will racing be able to keep up this level of achievement in an economic environment that's getting tougher and gloomier by the minute?” After that, the conference lunch had the feel of a last supper.
(Source: Timesonline.co.uk)
