Dog and Horse Racing - UK - October 2007

Table of Contents

• Issues in the Market
• Main issues
• Definitions
• Abbreviations
• Market in Brief
• Central funding free courses to invest in new facilities and fixtures...
• ...but bookmakers continue to hold the purse strings
• No other tactics but defend and diversify
• Televised football 2 -- Racing attendances
• Jewels in TV crown can still promote course attendance
• Food and drink drive raceday expenditure
• Farewell to old friends, welcome festival fans
• Horse racing too expensive, dog racing too downmarket
• Dog racing better insulated against economic downturn
• Moves for better governance
• Courses look hot properties for investors
• Internal Market Environment
• Key Points
• Facilities and diversification
• Horse racing
  • Figure 1: Capital expenditure on grandstands and public facilities by British racecourses, 2003-11
• Only football spends more
• Better, not bigger
• Courting the corporate crowd
• Building new revenue streams
• Dog racing
  • Figure 2: BGRF grants for racecourse improvements, 1998-2006
• Media coverage
• Television: horse racing
  • Figure 3: Television coverage of horse racing, by channel, 2002-06
• More dedicated coverage...
• ...but terrestrial exposure under threat
• Sponsors want terrestrial coverage
  • Figure 4: Percentage of horse races sponsored, 2002-06
• Turf TV v SIS
• Television: dog racing
  • Figure 5: Television coverage of greyhound racing, by channel, 2002-06
• Satellite stations go dog racing
• Mixed response to demise of the dog channel
• Print
• Raw materials
  • Figure 6: Horses in training, 2002-06
  • Figure 7: Registered greyhound numbers, 2002-06
• Central funding
  • Figure 8: Horserace Betting Levy Board income, 1996/97-2006/07
  • Figure 9: British Greyhound Racing Fund, Bookmaker' s voluntary contributions, 2004-07
• Bookies favourites for funding
• Can the business back two horses?
  • Figure 10: Leading horse race sponsors, by sector, 2006
• Legislation
• The Gambling Act
• No obstacles for horse racing...
• ...but greyhound sector aims to widen its pools
• Horse racing targets touts
• Animal Welfare Act
• Dog racing beats regulation by a nose
• Can the sport afford welfare?
• Image
• Cheat if you like -- but be kind to animals
• Improvements continue apace
• Horse racing rules on inside information
• Broader Market Environment
• Key points
• Economic conditions
  • Figure 11: Trends in personal disposable income and consumer expenditure, 2002-12
• Owners more vulnerable than spectators
• Crowd changes increase dog racing' s risk
• Demographic trends
  • Figure 12: Trends in the age structure of the UK population, by gender, 2002-12
• Better stadia can appeal to the old
• Racegoers have more money to spend
• Technology
• The Internet
  • Figure 14: Computer, Internet and broadband take-up, 2002-06
• Mobile phones
  • Figure 15: Features have and features used on mobile phones, 2003-07
• Nature
• Competitive Context
• Key points
• Rival sports
  • Figure 16: Interest in named sports/pastimes, 2002-06
• Television exposure
  • Figure 17: Leading televised sports, 2002-06
• Fireside more attractive than trackside?
• Punters need to see where their money goes
• Alternative attractions
  • Figure 18: Paid to watch sporting events, 2002-06
• Racegoing common, but not a habit
• Can you teach old dogs (and horses) new tricks?
• The fight for the punter' s pound
  • Figure 19: UK gambling stakes, by key sector, 2002-06
• Betting market favouritism under threat
• Competition for leisure time
  • Figure 20: Consumer expenditure on selected leisure goods and activities, 2002-07
• Strengths and Weaknesses in the Market
• Horse racing
• Strengths
• A familiar product
• First class facilities
• Positive public perceptions
• Betting market leadership
• Strong corporate sector
• Weaknesses
• A servant to many masters
• Highly competitive markets
• Irregular fixtures
• The will of the weather
• Falling attendances
• Dog racing
• Strengths
• No hurdles for novices
• Improving facilities
• More marketing
• Accessibility
• Weaknesses
• Public perceptions
• Lack of funding
• Clicking mice, not turnstiles
• Hot properties
• Market Size and Forecast
• Key points
• On-course revenue growth driven from outside the betting ring
  • Figure 21: Consumer expenditure on dog and horse racing, on-course only, 2002-12
• Going looks good-to-firm in the long term
• Factors used in the forecast
• Segment Performance
• Horse racing
• Racecourses
  • Figure 22: UK racecourses, 2007
• First new courses since 1927
• Fixtures
• New fixtures set to raise raceday revenues
• Runners and races
  • Figure 24: UK horse race data, 2002-06
• More work for more horses
• Attendances
  • Figure 25: Attendance at horseracing meetings, 2002-06
  • Figure 26: Horse racing attendance, by type of meeting, 2004 and 2006
  • Figure 27: Horse racing attendance, by day of the week, 2004 and 2006
• Attendances on the downgrade
• Festival spirit bucks the trend
• Prize money
• Look what you would have won
  • Figure 28: Horse racing prize money, by source, 2002-06
• Sponsorship -- horseracing
• Horseracing struggles to widen its circle of sponsors
  • Figure 29: Horse racing sponsorship revenues, 2002-05
• Dog racing
• Track numbers set to fall?
  • Figure 30: UK greyhound racecourses, 2002-07
• Bookmakers' needs determine fixture list
  • Figure 31: NGRC meetings, 2002-06
• Welfare costs to damage ownership levels?
  • Figure 32: NGRC greyhound races, 2002-06
• Strong minority boasts growing crowds...
  • Figure 33: NGRC greyhound racing attendances, 2002-06
• ...as regulars defect to shops and Internet
• Animal welfare at the expense of owner welfare
  • Figure 34: Prize money added by NGRC management and sponsors, 2002-06
• Sponsorship -- dog racing
• Companies and Brands
• Key points
• Company developments
• Courses to join forces?
• Horse racing
• Governing bodies
• British Horseracing Authority (BHA)
• Horserace Betting Levy Board (HBLB)
• Major racecourse operators
• Jockey Club Racecourses (JCR)
• Key financials
  • Figure 35: Jockey Club Racecourses, financial performance, 2003-06
• Other developments
• Arena Leisure plc
• Key financials
  • Figure 36: Arena Leisure, financial performance, 2002-06
• Latest results
• Other developments
• Northern Racing Ltd
• Key financials
  • Figure 37: Northern Racing, financial performance, 2002-06
• Other developments
• Greyhound racing
• Governing bodies
• National Greyhound Racing Club (NGRC)
• British Greyhound Racing Board (BGRB)
• British Greyhound Racing Fund (BGRF)
• Major greyhound stadia operators
• GRA Ltd
• Gaming International
• Key financials
  • Figure 38: Gaming International, financial performance, 2005 and 2006
• Other operators
• Brand Communication and Promotion
• Key points
• Targeted promotions
• Teaming up with other sports
• Focus on advance sales
• New media
• Old media
• PR
• Work to do
• Top Dog proves a pup?
• The Consumer -- Horse Racing
• Key points
• A search for stayers
  • Figure 39: Horse racing attendance, May 2007
• Horse racing attendance: demographic analysis
  • Figure 40: Frequency of horse racing visits, by demographic sub-group, May 2007
• Money for more than betting
• Catch ' em young
• Attitudes towards horse racing
  • Figure 41: Attitudes towards horse racing, May 2007
• Appealing to social animals
• Customers need help in containing costs
• Attitudes towards horse racing by frequency of attendance
  • Figure 42: Attitudes towards horse racing, by frequency of attendance, May 2007
• Glamour appeals to the uninitiated
• Money no object for only the hard-betting core
• Most popular attitudes towards horse racing: Demographic analysis
  • Figure 43: Most popular attitudes towards horse racing, by demographic sub-group, May 2007
  • Figure 44: Next most popular attitudes towards horse racing, by demographic sub-group, May 2007
• The Consumer -- Dog Racing
• Key points
• The majority express disinterest
  • Figure 45: Dog racing attendance, May 2007
• Dog racing attendance: Demographic analysis
  • Figure 46: Frequency of dog racing visits, by demographic sub-group, May 2007
• Why does the attendance habit lapse?
• Close relatives too close for comfort?
  • Figure 47: Dog racing attendance, by frequency of horseracing attendance, May 2007
• Attitudes towards dog racing
  • Figure 48: Attitudes towards dog racing, May 2007
• Integrity issues hit harder off-course than on it
• Attitudes towards dog racing by frequency of attendance
  • Figure 49: Attitudes towards dog racing, by frequency of attendance, May 2007
• Racegoers seeing improvements...
• ...but the word is not spreading off-course
• Attitudes towards dog racing: demographic analysis
  • Figure 50: Attitudes towards dog racing, by demographic sub-group, May 2007
• Paying for quality, not quantity