BHA deficit to increase in 2016 despite raised fees

BHA deficit to increase in 2016 despite raised fees

Friday, December 18, 2015 Totally Gaming
CEO Nick Rust said the spending plans are strategically necessary

The British Horseracing Authority (BHA) expects to run a budget deficit of £773,000 (€1.06m/$1.15m) in 2016, despite another increase in charges to racecourses, jockeys, trainers and racing publications.

In its 2016 Budget Guide, the BHA said the deficit is £312,000 higher than the loss forecast for 2015, and is to be covered by cash reserves.

The organisation, which runs racing in the UK, said it will increase annual expenditure by £1.13m in 2016, taking total budgeted expenditure to £31.93m. The Guardian newspaper reports that the rise almost matches the expected increase in staff costs during the course of the year, with the BHA now employing more than 200 workers.

Fees charged to jockeys, trainers, owners and racecourses will increase by three per cent, which follows a 5.85 per cent rise in 2015.

BHA chief executive Nick Rust said that the increased costs are essential if the organisation is to meet its key strategic goals, which include delivery of a compelling package of participant welfare and training activity, completing its work around holistic race planning and streamlining its regulatory activity on raceways.

“Whilst we are proud of the breadth and quality of the services that we provide to our participants and our role in the ‘Strategy for Growth’, it comes at a cost,” Rust said.

“The industry’s participants are the primary funders of the BHA and whilst fee increases are required in order to enable us to deliver against our objectives, we recognise that times are tough financially and have attempted to keep these to a minimum.

“We are committed to exploring opportunities to reduce our cost base without compromising our service levels and exploring alternative funding opportunities in order to reduce the budgeted deficit.

“One of my key aims has been to ensure that the BHA is more open, transparent and in touch with the needs of the sport it serves,

“With that in mind I felt it was important to publish a Guide to our 2016 budget which included a summary of the BHA’s sources of income and the services provided to industry participants.

“I also felt that it was important for us to communicate the full range of our activities which are all vital to delivering against our strategic goals."
 

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