SBC News Voice of the Sports Betting Industry
Nick Rust Chief Executive of the British Horseracing Authority (BHA), has stated that he is confident that the organisation will reverse its £1.3 million deficit posted for 2014.
The BHA’s accounts were hit with rising costs in 2014 from £28 to £30.6 million, which the organisation accredited to increased costs in day to day operations and legal fees relating to its Levy replacement and the presentation of its proposed Horserace Betting Right.
For 2015 the BHA has budgeted for a further loss of £140,000, but will likely exceed the predicted figure by posting losses of around £150,000- 200,000.
The news of its 2014 deficit, comes as BHA looks to price up racecourse fees by 3% in 2016. The organisation had increased entry fees and licence registrations fees by 5.85% at the start of 2015.
Nick Rust commented on the BHA’s growth strategy
“We agreed at the time of the 5.85 per cent increase that an increase of up to three per cent might be required in 2016 on fees.
“We’re looking at that sort of level and anticipating it would be reasonable looking at the things we are looking to achieve next year, all the time looking to keep any fee increases to the lowest number possible given the state of our industry and need to support participants.
“My aim is to ensure the budget for next year can encompass all those activities and deliver on my promises on what we’ll achieve as an organisation – I want our organisation to be more respected and in tune with what’s going on.
“But I’ve got to do it in a way that helps replenish the reserves, which is part of our plan. I’m confident we can do that based on the work the management team has done.”
BHA group financial controller Paul Foster pointed out the BHA’s expenditure costs were still £3m lower in 2014 than in 2009.
“Sometimes it’s too easy to forget where we were and where we’ve come from,” he added.
“We’re slightly behind on our path back to surplus but the aim will be to get back there in 2016 through a series of fee increases, which we have already spoken to the stakeholders about, and also various rationalisation of costs.”
