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Weekly Update 20-04-20

By On 20th April 2020

I hope you are all doing OK?

Not much to tell you about the horses this week, but I do have some industry news to pass on and some updates on our former horses.

Details of the horses can be found on the website and you can contact me, via the website contact page if you want any more information.  I will be very happy to correspond by email or schedule a call.  It does seem that some people are keen to sort out something for once this is all over and people who are able to do so, can get themselves a good deal at the moment as my priority is more on sharing training costs (as I have to meet the costs of unsold shares) more than it is about making an income!  I will discount the fees quoted on the web pages.

I should also point out that irrespective of the price paid for shares, if the actual costs are less than I factored into the share price (and they are likely to be if racing is suspended for a long period), then all shareholders receive a proportionate rebate of their fees at the end of the period.

Suspension of Racing

The BHA issued a further update on the resumption of racing on Friday and they are seeking to be ready to restart racing at the earliest appropriate opportunity.

Current planning for resumption is based on a phased approach, allowing racing to transition back to a normal fixture list consistent with prevailing Government restrictions.  Planning is focussing on minimising the risk of injury and incident to ensure no increased burden on local NHS and medical services.

The intention seems to be to return as soon as the Government agree it is appropriate to do so and it is likely that this will be flat racing behind closed doors with a reduced number of fixtures.  Not all racecourses will be able to race behind closed doors which will impact on fixtures and with no income from crowds and betting shops potentially still closed, there may be an impact on prize money and the volume of races that can be supported.  The intention is, however, to keep things as close to normal as possible, with a standard mix of handicaps and weight-for-age races.

In the early stages, field sizes will probably need to be restricted to support social distancing and to overcome any issues from this, meetings may have extra races.

Plans are also being developed for jumps races from July 1st, which are likely to be largely based on the original fixtures and the BHA still intend to run the big races and are prioritising the scheduling of the Classics, as well as the other key races.  The current “best-case scenario” allows for the Guineas to be run in early June, and the Derby and Oaks in early July, with Royal Ascot still scheduled to take place in its existing slot commencing on 16 June.

Financial Support Package for Racing

Also on Friday, a financial support package for racing was announced.  This package totals £22m with funds available for yards, jockeys, stable staff and racecourses among others as well as targeting the welfare of horses.  There is a Racing Relief Fund to help meet the welfare needs of horses whose owners are suffering financial hardship.

£750k will be made available to Racing Welfare, a charity which provides hardship payments to people who have worked in the racing and breeding industry and the Professional Jockeys Association will be given access to nearly £2m in funds to provide a mixture of loans and grants to support professional jockeys, agents and valets.  Racecourses have been badly hit by the suspension and all racecourses will be able to take loans from a £7.5m fund jointly established by the Levy Board and the Racing Foundation.

The rest of the money looks likely to go to the Levy Board which will have to support racing when it resumes, as racing behind closed doors will lead to revenues being significantly below normal levels.

Trainers Update

All of our horses are fine and there is nothing extra to update since last week.

Former Horses Update

I have been speaking to people about our former horses.  Oscara Dara is fine and he continues to be well looked after.

Justice Super is doing really well.  He has been doing loads of riding out and some dressage.  I have seen some recent photos and he seems really well.

Mount Oliver has returned home to Ireland safely and he is in good form.

Shareholding Offer

I was counting on selling a lot of the outstanding shareholding when the horses were getting close to running and the current situation rather scuppered that plan for a while!  Whilst the training fees will be less during the suspension of racing, it does fall to me to meet the costs of any unsold shares which could still be quite significant.  Normally my income is generated from an administration fee added on once I have worked out each share of the costs.  At the moment reducing my costs is more important than making income, hence I have significantly cut my admin fees and from a shares cost perspective there will never be a cheaper time to give ownership a try!

I have posted some adverts for current shareholding up on Horse Racing Hub this week.  If you get the chance to link to any of them through your social media to spread the word, that would be greatly appreciated!

https://www.horseracing-hub.co.uk/horse/silver-imperial/
https://www.horseracing-hub.co.uk/horse/my-brother/
https://www.horseracing-hub.co.uk/horse/dynamic-kate/

Getting Involved

If you are interested in finding out more about what is involved, then please do get in touch as I would be delighted to discuss things with you.

I issue weekly shareholder updates (which go into more detail than the blog) and frequent updates on social media.  Feel free to like the FaceBook page and follow the Twitter updates.

I also have an e-book entitled “Racehorse Ownership – Everything You Might Have Wanted To Know But Would Not Have Known Who To Ask“.  This is free and the download page can be accessed here.

Have a great week.

Phil


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