For the past few years’ investors in the equestrian industry have been feeling the effects of the financial crisis the country has been going through. However, it seems that this has been changing over the past 18 months with profitability returning to its biggest high since 2008.
According to the British Horseracing Authority, the equestrian industry is worth £1.1bn to the UK economy, with the total indirect benefits coming to an eye-watering £3.4bn. Racecourses have generated £371m from spectators, sponsors and corporate customers. In addition, 15,000 racehorse owners have spent about £306m. The running costs of the UK’s 300 stud farms totalled £189m, bookmakers’ levy was £75m and media sales total £173m.
The attendance of horseracing events is also up with 15 of Britain’s courses seeing an average rise of about 26% and this number is continuing to rise. This has also benefited the betting industry, with attendees spending over £10bn a year on betting. Although, the effect on the economy is less since many betting operators are moving to off-shore banking.
The UK boasts three of the top five fixtures in global racing, with the Derby having the top prize for a flat UK race at £1.4m. Despite this, the return on investment for racehorse owners is just 24%, the lowest of any racing nation. The prestige of the British events is what draws investors to the UK for horseracing.
DT Groundworks is a groundworks contractor that specialises in equestrian groundworks for stables and arenas. They have contributed to some of the best training grounds in West Yorkshire and are based in Halifax. The increase in investment in the horseracing industry means more stables and arenas need to be built for taking care of and training racehorses.