threshold above which they pay the full Levy percentage of 10.75. The Levy accounts for 7% of the inflow of money to racing but plays an important role in maintaining the quality of the racing product by incentivising racecourses (mainly through prize money) to put on meetings at times and of a quality that will generate more betting and hence more Levy. Usually, some 90% of the Horserace Betting Levy Board’s expenditure in any one year falls into three categories: prize money, Raceday Services and Fixture Incentive Fund (FIF). All three of these types of grant are paid to racecourses, and all 58 racecourses in Britain are eligible for funding by virtue of staging fixtures under the Rules of Racing set by the British Horseracing Authority (BHA), the governing and regulatory authority for the sport. Racecourse funding streams, including the Levy are illustrated in the below. Media rights were the area of largest growth in the industry as a whole, generating £173m, up from £104m in the 2009 report. These increased media rights contributed heavily to racecourse cashflows being up by 1% overall, despite a marked decline in funds from the Levy. Revenue source 2005 2008 2012 Total (£m) (£m) (£m) Entry fees 17 16 Admissions 88 120 114 Catering 80 100 100 On-course betting 11 9 8 Media 42 57 88 Sponsorship 16 20 31 Other commercial 61 61 65 Levy 89 89 56 TOTAL 387 473 478 Source: published by Deloitte in 2006, 2009 and 2013 The Economic Impact of British Racing The Betting Patterns Working Party (BPWP) comprised of Racing and
threshold above which they pay the full Levy percentage of 10.75. The Levy accounts for 7% of the inflow of money to racing but plays an important role in maintaining the quality of the racing product by incentivising racecourses (mainly through prize money) to put on meetings at times and of a quality that will generate more betting and hence more Levy. Usually, some 90% of the Horserace Betting Levy Board’s expenditure in any one year falls into three categories: prize money, Raceday Services and Fixture Incentive Fund (FIF). All three of these types of grant are paid to racecourses, and all 58 racecourses in Britain are eligible for funding by virtue of staging fixtures under the Rules of Racing set by the British Horseracing Authority (BHA), the governing and regulatory authority for the sport. Racecourse funding streams, including the Levy are illustrated in the below. Media rights were the area of largest growth in the industry as a whole, generating £173m, up from £104m in the 2009 report. These increased media rights contributed heavily to racecourse cashflows being up by 1% overall, despite a marked decline in funds from the Levy. Revenue source 2005 2008 2012 (£m) Total (£m) (£m) Entry fees 17 16 Admissions 88 120 114 Catering 80 100 100 On-course betting 11 9 8 Media 42 57 88 Sponsorship 16 20 31 Other commercial 61 61 65 Levy 89 89 56 TOTAL 387 473 478 Source: The Economic Impact of British Racing published by Deloitte in 2006, 2009 and 2013 The Betting Patterns Working Party (BPWP) comprised of Racing and
20140826_Final_version_Reform_consultation_document.docx