Among the announcements from Racing Victoria’s increase in prize money announcement was dropping back the share of prize money that a winner collects in races outside Group and Listed-level.
Races without black type currently see the first place winner take 60 per cent of the share of the prize pool.
From the commencement of the 2015/16 season, first place will take 55 per cent – with that five per cent flowing away from the place getters to the finishers further back. Horses placed fourth to 10th will now be better rewarded.
How does that play out?
For a standard country race this season, a winner takes 60% of $15,000 – a $9,000 win.
With the increase in prize money next season, a winner will take 55% of $20,000 – now $11,000. That 5%, or $1,000 that would have been collected by the winner, will be shared by those horses 4th-10th. (The exact breakdown isn’t yet known.)
This is in line with racing in New South Wales, which adopts a similar model across most races.
There isn’t any change for Group races, with races like the Melbourne Cup already lucrative for all runners down to 10th – a 10th placing in the Melbourne Cup pays $125,000.
Initial reactions were mixed – some saying it rewards mediocrity, others pointing to even small amounts of prize money being critical to keep owners in the sport and able to pay bills.
It’s easy to see a USA-style winner take all vs a Scandinavian model of equality argument forming. Indeed, there have been a number of changes to purse distribution in the USA over the years. Prior to the 1970s, finishing worse than fourth didn’t pay a cent, while winners took 65%. Today, it is most akin to Australian racing.
Yet, individual races, states, and tracks still have some variations – the Kentucky Derby pays down to fifth since a change in 2003.
Perspective is important. Owners of top horses will be disappointed that they might earn less owning horses that win more often, while those at the back will be delighted to be getting something back for taking the time and effort to get to the races – and have something to pay the bills.
Racing Victoria haven’t made the change in isolation – combining the ‘hit’ on winners with the boost in prize money.
On the surface, winners still take more money for winning a standard race. In the country race example, it’s $2,000 more from one season to the next.
Should RV have gone further, and distributed money to backmarkers more? Splitting that extra $1000 between seven horses isn’t much more than $125 or so each, although of course that will be more with better races and more in the purse to be dished out.
Ultimately, slow horses cost just as much to keep racing as fast horses, and for racing to be sustainable it can’t just service those with the biggest wallets.
Racing Victoria have left plenty on the table for winning, and more people will get money back for the trouble of investing in what is an expensive hobby.
It’s the right move but is it enough – will it bring in any new owners, or is it more to retain existing owners?
Nathan Absalom
Roar Guru
To accurately tell the story of the intercode agreement would be very gutsy indeed.
Bondy
Guest
Tristan Remember on the eve of the Slipper the VRC announce record prize money for the Mlb Cup , also Doomben tomorrow Rc 8 No 8 each way all day C Williams up ...
Tristan Rayner
Editor
They learned that from the AFL ;)
Tristan Rayner
Editor
Appreciate your insight as an owner, Allanthus. Quite right too - for every winner, there's plenty that don't earn a cheque!
Tristan Rayner
Editor
Feel free to get in touch, Strummer Jones.
Bondy
Guest
Racing Victoria have a habit of dropping feature stories right on the cusp of other states feature days , if they announced such a statement next week there are no major races anywhere in the country " excluding Ipswich " . Overall I think its a positive move they're pushing or really getting in line with other states ..
Strummer Jones
Guest
The real money and only money is made in the breeding Mr Sheek. Have a read of Fixed by Matthew Benns for an insightful read on the gee gees (warning: it may put you off the gee gees!) Love to see an insightful and real gutsy journalist research piece about the intercode agreement in NSW whereby the greyhound industry pumps around $35m imto the NSW thoroughbreds and the fact Peter Vlandys (most hated man at Randwick??) won't have any part in helping improve both the integrity and welfare of the greyhounds by giving back some of "their" money. Its a "mea culpa" entering the intercode by the greyhound folk in the early 2000s through poor foresight, but imagine what Animals Australia might think of such a gesture from Racing NSW? As we are now seeing in Qld, dragging down one code drags them all down. How about it Mr Editor?
Geoff Parkes
Expert
Thanks Tristan. On balance it seems about right to me, winning horses are still getting a decent increase in real $ terms, and there's a bit more for everybody else. The argument about rewarding mediocrity has some merit but the reality is that the vast majority of horses are mediocre (as the owner of a few of those myself I'm well qualified to comment…) All industries are full of high quality elite performers, average performers and entry level, lower quality providers. All are equally important, they provide employment and keep the economy ticking over. In that sense the industry exists equally for group racing at the Spring Carnival and midweek country meetings and it is only right and proper that this initiative recognises all stakeholders, not just the high profile, cashed up owners and breeders. I like Jason's comments above however. This alone isn't a job all done. It's an opportunity to be innovative and leverage off it to attract more people into racing.
sheek
Roar Guru
Tristan/Jason, I'm not an expert on the breeding/ownership side, nor even the business side, but surely the exorbitant cost of breeding & yearling sales is killing the racing industry, or at least, severely hog-tying it. I find it instructive, if you want to make a financial killing in gambling, then own the casino or sports agency. The common man never wins, except for the odd individual here or there. If you want to make a financial killing in sport, then get an executive position on a world authority, like IOC, ICC, FINA & ahem, FIFA. While there are some tremendously wealthy athletes, most are dirt-poor. The real money is made in the corridors of power, either legitimately or not, it doesn't really seem to matter which. Likewise, you want to make a financial killing in thoroughbred racing, get into the breeding. Then you get rich at everyone else's expense. Racing is like one of those selling pyramids, with breeders at the top. They suck the money out of the owners, who then suck it out of the punters. Everyone else falls in somewhere in between. That's basically how it works. Anyway Tristan, this appears a sensible move by Racing Victoria. They are usually at the forefront of innovative & progressive thinking in Australia.
Jason Cornell
Expert
As a Owner - and any owner would applaud any increases in prizemoney. Also all the participants, trainers , jockeys even strappers! But Racing has to be more innovative. Does $16.5M increase in prizemoney bring one new owner to Victorian racing. Does $20M , $30M $40M. Bruce Slade from Slade Bloodstock on twitter made some great immediate comments. "great initiative now for strategy, $ & a promotion platform to attract new owners to the industry #odue" And I could not agree with more. I have advocated for racing to do more re a marketing platform to attract owners - and I have founded Ownerforaday. The idea is you would have the unifying brand and marketing platform to bring new owners to the track to experience all the pleasure of ownership as Ownerforaday. The package could include hospitality, a free bet and all the benefits and trapping of horse ownership - including the opportunity to win a percentage of any winnings. My research says just 5%. So for a $100,000 race - now in Victoria the winner gets 55%. so the Ownerforaday bonus would be $2,750. Think of it as similar to the breeding bonuses paid by Vobis and Bobs. The great thing is that any winning experience can be leveraged by using that content as promotional marketing. And it works for all races, a country race, a city metro all the way up the ladder to our G1's (although need a big budget for 5% - so maybe you can have a cap of $10K or something - great sponsorship activation for the race sponsor). So thats the plan. Over to a racing club/jurisdiction thats wants to license the Ownerforaday strategy. And please don't try and do your own variation - say Owner for the race, join team Boban , own a champ/chump - please