Economic gravity anchors France Galop

Across many racing jurisdictions in Europe, and further afield, French racing is held in high esteem. High quality racing and bloodstock, a successful breeder rewards programme, healthy prize money in relation to its European peer group and an eclectic set of metropolitan and provincial racecourses that set the tone for a varied and sustainable racing programme.

However, life is rarely straightforward, as illustrated by the recent inflationary pressures, the political tightrope that is EU - US relations currently, and turgid economic growth across Europe at large. And racing is not immune to these pressures, in France or elsewhere.

Having embarked this year on the highest prize money in Europe, with a plan to manage a €15m budget deficit, France Galop has had to adapt to worsening circumstances that will see a 3.6% drop in prize money for the second half of the year, equating to some €10.5m. The governing body that tried to defy gravity has had to bow to the laws of economics.

It seems the Frenchman in the street is not impervious to the economic circumstances, the same that encouraged the Elysée Palace to assess the merits of a betting tax back in the autumn, a project successfully seen off by a co-ordinated racing approach from all stakeholders.

If there's one surprise in this, it is that French racecourses have, by and large, been slow to grow the loyalty of their customers. Although much racing is free, there remains a culture of pay-on-arrival, counter to every other sport in France. Those few racecourses, among them France Galop's metropolitan tracks and some forward-thinking provincial ones, that have adopted digital ticketing, are both identifying their audience and giving themselves a chance to win further spend from them. But of 200+ racecourses, these number less than 10%. Other jurisdictions have long learnt to make up the numbers by driving admission numbers up, and with that, better fan engagement. Irish firm Future Ticketing has been at the heart of re-educating racecourse administrators in France and beyond.

If this sounds all too familiar to British followers of racing, it paints a depressing story of global racing struggling to maintain its place in the hierarchy of sports and the public consciousness. Racing administrators in Britain have faced a bewildering number of DCMS ministers over the past few years in attempts to shore up the financing of racing against a series of government-inflicted own goals. Betting turnover is flat at best, and the return to racing barely holding its own, against competing sports and affordability checks, with inevitable erosion of the return to prize money.

This position is largely repeated in the smaller jurisdictions, where racing carries even less clout in the corridors of power. Add to this a precarious social licence, especially in Sweden, where the stick can no longer be carried, which has resulted in the death of steeplechasing.

At the sharp end of the sport, breeders need to make money from their stock to keep mares. Whilst the trade journals catch one's eye with eye-watering prices for yearlings, the middle market is depressed, and foal numbers will be at their smallest for some years; again a story of eroding margins, as reported earlier this month in the Racing Post.

All is not lost however; the marquee events continue to draw large crowds. Aintree continued its ascent this year; the Cheltenham Festival still attracted over 200,000 visitors - a remarkable achievement in any sporting event, and at the time of writing, Royal Ascot is sold out on its final Saturday. In short, the social side of racing is thriving, supported by a new (and expensive) marketing campaign for British racing, and by consumers' attraction for the heritage and sheer entertainment value racing offers .

European racing ills are far from unique. US racing, despite some spectacular successes, is also under pressure. Racing in California could easily die out altogether with the recent closure of Golden Gate Fields, and the diminishing number of Californian-bred horses that comprise nearly 50% of all runners. At the turn of the year, the California Association of Racing Fairs opted not to apply for fixtures for fairs at Alameda, Fresno, Cal Expo and Ferndale. This in a state richer than many individual nations, which has hosted the Breeders' Cup at Santa Anita.

The same headwinds are found in several other states, like Arizona, where racing is holding on by its fingernails at the last of three racetracks, Turf Paradise.

In stark contrast, European trainers have pricked up their ears at the immense purses on offer at Kentucky Downs, a rare turf track in the Blue Grass country. Last year's well publicized $35m purse across a 10 day calendar had to be topped up by a further $7m due the success of the gaming returns. Such is the fickle nature of state legislation for gaming between US states, where Wyoming posits no restrictions on gaming, whilst others can be highly restrictive.

Lest we forget, prize money generally passes the general public by. They have no direct interest in the well-being of the sport other than to look after the athletes well (equine and human), and to provide good entertainment. But it is Racing's responsibility to manage its relationship with its stakeholders so that there is a steady population of horses, and the people to train and oversee them. This is proving to be as much a challenge as maintaining betting turnover, whatever your jurisdiction.