Our Tuesday Take this week comes from Paddy Walsh’s question: Any ideas to help smaller breeders like me? Brought two foals to National Hunt sales and found it very tough going
There is an emerging movement in politics that citizens should be guaranteed a Universal Basic Income. Universal Basic Income is defined by the UN as ‘an amount payable to a person who is a permanent resident of the state which enables the person to lead a frugal but dignified lifestyle’. It’s simple really – let’s let everyone enjoy some basic quality of life and remove costly red tape required to administer of other social welfare payments. While it’s a utopian vision it’s grounded in something really interesting – what new ways of thinking can we use to support those most vulnerable and allow them to flourish?
I found the recent yearling sales and national hunt sales scary. The lower tier is crying out for fresh thinking. We have a problem with over production and that must be addressed pragmatically and promptly. However, it’s too simplistic to simply say that is all we should is reduce the foal crop – I think innovative thinking could drive some real success for the lower tiers of racing.
How can we support breeders better right from the start?
But what the hell does a universal basic income have to do with the lower tier of horse racing? I’m starting to believe it might be worth considering. We obviously don’t have a magic money tree so this is about reallocating existing funds or risk allocation in a more effective way. The lower tier of racing is suffering the most – yet it’s the most vital aspect of our sport. It powers our bookmakers through a full fixture list which in turn funds our sport. It also supports those trainers, breeders and owners clinging for survival in our sport without which the rich tapestry of our game would be far poorer than their economic contribution can capture.
How could we apply a universal basic income concept to racing? I’ve got a few ideas. Firstly, I think if your mare is accepted by a stud farm we should consider creating the “Breeder’s Guaranteed Share”, there should be a standard amount (say €5,000) which a breeder is entitled to at auction first and is refunded by the stallion farm if not attained. For example, you breed to a €5,000 sire and your foal sells for €5,000 – you should have that nomination fee refunded. However, should that foal sell for €15,000 – you’ll receive no refund. It guarantees a level of basic income to protect the breeders. This in turn protects breeders from wipe out at the sales by attaining a poor price and having to pay a costly nomination fee too. Stallion farms are protected as they select the mares but I do think the allocation of risk is currently too damaging to the small breeder. We need stallion owners to carry the burden of risk too. Stallion farms don’t need to sign up to the concept but those that do should enjoy greater patronage and also feel their breeders needs are being addressed first.
We can apply such thinking to our owners too. French racing has a great model which rather than support further prize money they give an amount to support transport costs for every horse in training in France. Racing administrators need to rethink prize money allocation to stimulate economic demand – I’m a huge fan of the IRE Incentive which gives owners a €10,000 cheque to spend on forthcoming sales if they win eligible races. That’s joined up thinking to drive investment in more bloodstock. There is on over reliance on larger trainers – as a syndicate we love to support smaller trainers (and very much do) but we find our owners want the big names. What if we adjusted the maths equation though? New trainers should get free owner registration and discounted entry fees for all races the first year of their license to help them get on their feet and attract support. In football, we tier competition – it’s no fun to watch Man City v Accrington Stanley every weekend. While I’m against the proposals of the BHA to restrict handicaps to a certain number of runners per trainers – it’s blatantly anti-competitive. However, perhaps there is space for a program of smaller races only available to small trainers. We do it for our jockeys, why not our trainers?
Racegoers enjoy hospitality at Punchestown
A simpler idea is giving all registered owners an expense card at the start of each season, let’s call it the Racing Card. This has a balance of €1,000 which can be spent on tickets, hospitality or merchandise within racecourses. This activly encourages engagement with the sport beyond just when you have a runner and make you feel you are part of an exclusive club. The €1,000 should expire each year if not used and certain races should carry a bonuses of further payments on to your card – how clever would racecourse look sending €100 on the anniversary on your last win at the racecourse or coming up to your birthday to encourage you come to the track. We already give owners cards as part of ownership, now let’s do so in an intelligent way to stimulate economic activity.
Sitting at home, scrolling Twitter and going that’s terrible isn’t enough. We need to think again and drive real success for people who are the back bone of our sport. Get a more quid back into their pockets and amazing things will happen.
Jack’s Pick of the Week
Our Willie Mullins team
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