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TOTE PROCEEDS
The British Horseracing Authority (BHA) and Department for Culture, Media and Sport (DCMS) have announced the twin-track structure through which Racing's share of the net proceeds from the sale of the Tote last summer, expected to be £90 million, will be delivered to the industry.
Discussions with DCMS Officials and Ministers have determined that the two channels shall be:
- A new grant-making charity, The Racing Foundation, which has been set up to provide funds for charitable causes within, and associated to, the Racing industry.
- A Grant Scheme, to be administered by the BHA, to fund State Aid-compliant projects in the Racing industry.
The Government will pay £10 million a year to the Racing industry for the next three years. An initial payment of £10 million has been made to the Racing Foundation Charity. The split between the Racing Foundation and the Grant Scheme will be annually determined by the industry's principal liaison body, the BHA Chairman's Committee. The remaining £50 million will be distributed on a deferred basis and its profile will be determined in the Government's next Spending Review.
Paul Bittar, Chief Executive of the BHA, said:
"We are determined to use the opportunity provided by the proceeds from the sale of the Tote to create a meaningful legacy for the entire sport.
"The process will operate under significant constraints, principally around State Aid, and the anticipated £90 million will be received over a number of years, so we are very much taking a long-term view.
"Racing sensibly wants to build an endowment to provide the sport with a sustainable income stream for good causes and projects across the industry."
John Penrose, Minister for Tourism and Heritage with responsibility for horseracing, said:
"The sale of the Tote last year, after decades of trying, finally – and not before time - saw the Government move out of the bookmaking business.
"We promised that racing would get half of the proceeds and now we are making good that pledge.
"Racing is a mature, successful and much-loved business – today's announcement, along with our on-going plans to reform the levy arrangements between betting and racing, will be a further step in allowing it to prosper without unnecessary Government interference."
The details and procedures of the two schemes are currently being finalised. An announcement will be made once this process has been completed.
If you would like to be informed of the detail of the two schemes once these have been finalised, then please submit your email address in the drop box provided below.
There is no guarantee that funds will be made available as the aim will initially be to create an endowment to ensure that a long term legacy can be created.
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