Stakes hikes lift the horse racing game

Racehorse owners are always being asked how much money they make out of the game. In reply, they often murmur, “not as much as rumoured”, but, if they were truthful, most would confess to making no profit at all. Zilch, zippo, sweet FA … indeed, most make losses.

It should be remembered that owning horseflesh for competitive racing is seldom seen as a profit-driven business enterprise – in the way, say, owning long-haul trucks or hiring out DJ gear might. Horses are a hobby, whatever the taxman might suspect, and most hobbies cost money to enjoy – some a lot more than others.

Losses are the price, or premium, an owner pays for experiencing the singular exhilaration of his or her nag occasionally winning.

A while ago, in the last century, a rule-of-thumb had it that prize money for winning a maiden race would cover a racehorse’s keep for a year. Nowadays, a first-prize cheque might cover a few months’ feed and nurture – and that’s before the vet invoices arrive.

Yes, there are big-money races like the R10-million Hollywoodbets Durban July or the R6-million Betway Summer Cup, but only a handful of the thousands of horses in training ever get a sniff of that rarified air.

Consider, too, a lot of well-endowed races are won by expensive, choicely bred horses owned by a small coterie of uber-rich people.

But don’t think these wealthy folk make massive profits out of racing, either. Most of them run vast strings of horses – perhaps hundreds of the blighters in the desperate hope of finding a good ‘un. Many of these “hit and hope” critters are just as speed challenged as the cheaply bought rest-of-the-herd and deliver more bills than trophies.

The moneyed elite are in it for fun and games, too, and are just lucky to be able to absorb the premium more comfortably than hopefuls further down the food chain.

Rich or less rich, all thoroughbred owners will have welcomed recent news of stake-money increases by South Africa’s racing operators.

Race Coast hiked purses by an overall 20% in KwaZulu-Natal and Western Cape; 4Racing phrased its announcement differently but will boost prize money by similar amounts at its racecourses on the Highveld and in Eastern Cape.

Both companies raised grooms’ share of stakes from 1% to 2%.

The average punter won’t bother much about how owners are remunerated for their part in “putting on the show”, as it were, but an example of the changes is Highveld in-season maiden race total stakes going up from R120,000 to R170,000. Eastern Cape contests in the same category go from R84,000 to R100,000.

“This is a massive investment in the future of racing,” said Patrick Duff, CEO at 4Racing. “Owners are a key stakeholder in the industry, and we want them to see tangible reasons to buy, race and stay in racing. This is about giving owners more chances to earn, coupled with a better overall experience in racing.”

Race Coast official Kurt Felix said: “Increasing stakes strengthens the racing programme at every level, while doubling of stakes earnings for grooms recognises the vital role they play in the success of every horse and every stable.”

The important thing is not that anyone will suddenly get mega-rich, but that “smaller” owners might be able to stay in the game longer and that new entrants might be allowed breathing space to establish small (or large) strings of runners. Such people are important parts of the foundations of the sport of kings and paupers.