The Jockey Club, the largest employer and commercial organisation in British horseracing, today announces its full-year financial results for January to December 2023 and summarises its investments during that period in line with its commitment to act for the long term good of the sport.
The results include turnover of £243.4 million, up £7.3 million (3 per cent) on 2022 and driven largely by increased hospitality sales and sponsorship.
Total prize money of more than £58.2 million was distributed by The Jockey Club in 2023, which included a contribution from its own resources of £30.3 million, up £1.9 million and so impacting reported profit by that amount, from a previous record of £28.4 million in 2022.
The Jockey Club continued to invest in its facilities, with £17.1 million invested in capital expenditure projects in 2023, compared with £11.4 million in the previous 12 months, £3 million in 2020 and £8.4 million in 2019.
In 2023, these capital expenditure projects included a multi-million pound renovation of facilities at Huntingdon Racecourse with the aim of minimising the impact of future flooding as well as significant upgrades to the stables and racing staff canteen. It also included a £1 million refurbishment of the weighing room at Warwick in order to meet new industry standards and completion of a £1.5 million project on the champagne bar and weighing room at Newmarket’s July Course.
A further £2 million was invested into track and equine facilities at The Jockey Club’s 15 racecourses, and Jockey Club Estates also completed a number of improvements to the training facilities and gallops in Newmarket and Lambourn.
Significant progress continued to be made on reducing The Jockey Club’s long term net debt position which in December 2023 stood at £53.9 million, down £6 million year-on-year. It was £105.8 million at its peak in 2015.
The Jockey Club’s core operating profit was £12.7 million, down from £20.2 million in 2022. This was primarily due to the impact of cost inflation, which meant material cost increases from wage payments based on an increased National Living Wage, as well as utilities, temporary structures and food and beverage costs. The Jockey Club also took the decision to make a significant increase in its own investments in prize money, while a year-on-year reduction in aggregate attendance throughout 2023 also played a part.
Nevin Truesdale, Chief Executive at The Jockey Club, said: “There is no doubt that 2023 was a challenging year for The Jockey Club, as it was for so many businesses, industries and families across Britain.
“Despite these challenges, we have continued to prioritise our commitment to the long term good of our sport, as demonstrated by an increased investment in our facilities and prize money, while also reducing our cost base in a number of ways.
“Rising inflation has had a significant impact on the cost of everything from utilities, business rates and temporary structures to the goods and services we need to purchase in order to operate. For example, the fixed cost of staging the Cheltenham Festival will be over 50% higher in 2025 than it was in 2019.
“We made the decision not to pass on these increased costs to racegoers and others who use our venues if we could possibly avoid it, which in turn has had an effect on our profit. Increased betting regulation also affected our media revenues, particularly online betting turnover which per race was down 8% year on year and this is an issue which is having an ongoing and detrimental impact on the industry’s finances.
“Despite these headwinds, we have continued to stage outstanding racing and events, attracting around 1.5 million people across our venues and I would like to thank each and every member of The Jockey Club team for their continued hard work and commitment.”
OUTLOOK
The Jockey Club remains steadfast in its commitment to supporting British horseracing despite facing significant financial headwinds. While our current trading has improved since earlier in the year, it is anticipated that the overall macro economic conditions facing British racing will continue, putting pressure on profitability in the short term.
However, these conditions will abate and there continues to be significant growth opportunities for our sport which can be unlocked by focusing on expanding our fan base and increasing attendances. The Jockey Club remains committed to working collaboratively with the whole sport to achieve that.
