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We must all be seeing local and national companies either struggling or closing down.
Last week Clinton Cards shop closed down in my local mall with all cards reduced to 25p.
So my partner who has a birthday today has received a massive card which they were trying to sell a week ago for 30 times the 25p I paid for.
David Johnson has annouced his company can no longer afford to sponsor races.
No doubt there are many small business owners that will have to question whether they can no longer afford to purchase or to keep racehorses in training.
FI car racing, Cricket sponsors and football are all admitting future hard times ahead.
What do you think the problems facing horse racing are?
Quite a few problems IMO
Its the ultimate discretionary spending isnt it?
Unlike Football and cricket, racegoers tend not to be "loyal" to their local course (or whatever) and will not find it difficult to miss a few fixtures
Sponsorship is certain to be affected although in advertising it can be seen as an economic alternative to conventional advertising such as TV etc. Im in PR and that is seen in much the same light.
I heard that Nick Shutts is cutting down, so going on that I think its the top end of the jump owners where we will see the most change. Probably won’t make much difference in the middle market, where owners have probably been conservative with their spending anyway.
That would be broadly my thinking as well, Cheekster. Can’t see the smaller operators who pick up 2,000gns animals, or even home-breed their own, having to change their behaviour too much. Likewise those syndicates with dozens or more owners, rather than penny numbers.
gc
Jeremy Grayson. Son of immigrant. Adoptive father of two. Metadata librarian. Freelance point-to-point / horse racing writer, analyst and commentator wonk. Loves music, buses, cats, the BBC Micro, ale. Advocate of CBT, PACE and therapeutic parenting. Aspergers.
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Racecourse attendances don’t look to have been hit too badly, going from television pictures at least, and watching the Tattersalls Sales from Newmarket yesterday says spending hasn’t become at all conservative. Syndicates will be unaffected, given that their investment is spread across a number of individuals, and those who are famed for maintaining a ‘significant’ number of horses in training will be similarly comfortable, at least in theory, given that they aren’t wholly reliant on the current success of the financial industry.
The effects of the so called ‘credit crunch’ have sadly been exaggerated by the media, with seemingly few people aware of how the finance industry, and financial markets, work. Yes, there are problems, but they are by no means as bad as the scaremongering British headline writers would have us believe.
After today’s announcement from Alistair Darling – he’s still a moronic no-mark, but at least he’s trying – our economy should be relatively stable, any shortfall in banks’ liabilities being taken up by government investment, and the cut in interest rates providing plenty of relief for mortgage payers and those with outstanding loans. Petrol prices are also falling and, whilst this is an inevitable lull in something which will only grow more expensive over the next 10-20 years, it offers a welcome ‘saving’ for all.
Besides, has anybody seen a dip in the numbers inhabiting their local betting shop? I certainly haven’t.
Generally the last things people give up in hard times are alcohol and punting.
You may not buy a new laptop or flat screen TV, might eat topside instead of fillet, drive less on the weekend and wear your old t-shirt for one more year.
But when your feeling down and out or just want to enjoy the company of friends, a penny can be found to buy a beer.
When your sure you can multiply that penny, a risk will be made on the favourite.
So racing will always weather the storm as well as any other industry, infact better than most.
Free entry and cheap beer will give the hard-up a reason to let down thier hair.I’d agree with the last two posters. Our syndicate’s financial year commences on 1st September and when I asked members whether they would be renewing I was expecting a few drop outs. In fact, no-one dropped out and we even picked up a couple of new members.
I heard that Nick Shutts is cutting down, so going on that I think its the top end of the jump owners where we will see the most change. Probably won’t make much difference in the middle market, where owners have probably been conservative with their spending anyway.
There’s only so many times you can keep splashing out 50K plus on good horses to send to Karen Waldron before you realise it just isn’t worth it.
Just up the levy on the bookmakers and exchanges and reduced the number of race meets..
Hello,
The extraordinary amount of money to build Ascot must have been borrowed.
I think brown trousers will be in order if any re-financing is required. The fools at Ascot paid way over the odds for a mediocre product and the race track itself has been branded a disaster by many a good trainer…
My God there is some real negative equity in that heap!!
regards,
doyley
She’s loaded.
So were the Builders, Property Owners and Banks six months ago.
The CRUNCH hits the wealthy just as hard as the SUBJECTS.
The rich are the SPIVS in the stock market with the inside information.
Backing two runners is the relentless pursuit of value. Backing each way is a shortcut to the poor house. Only 7% make a long term profit.
I think a recession will hit racing very hard as a business. Bloodstock, breeding, training and racecourses will almost certainly suffer as the wealthy, who support the business, reduce their spending.
On the betting side, the racecourses, exchanges and internet will probably struggle to hold present turnover. Betting offices will actually benefit, as they provide entertainment and diversion for the increasing number of unemployed people. The only price that doesn’t increase is the price of a bet.
1. The very top end of the yearling market probably won’t be affected much, similarly the very bottom end (especially with £2k Overdose as a come-on!), but the great bulk of the market in between will certainly suffer. Sellers have been relatively lucky that the latest credit crunch disasters have occurred after many of the yearling sales have taken place. I expect the foal prices at the December, and similar, sales to be well down. NH stores will be a disaster.
2. Racecourse attendances will suffer too, particularly those courses who depend a lot on "corporates", though probably not as badly as some other sports. For example, I’d guess that football season ticket sales next summer will be very hard hit.
3. Sponsorship will be difficult, though again other sports may suffer a lot more, F1 and golf being obvious examples.
I heard that Nick Shutts is cutting down, so going on that I think its the top end of the jump owners where we will see the most change. Probably won’t make much difference in the middle market, where owners have probably been conservative with their spending anyway.
There’s only so many times you can keep splashing out 50K plus on good horses to send to Karen Waldron before you realise it just isn’t worth it.
A reflection of Waldron’s ability to train though rather than the credit crunch
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All of that may turn out to be true, Venusian, but in reality it shouldn’t be the case. The general public have had it drummed into them that, given the current economic climate, spending is the worst thing they can do, the supposedly inevitable recession likely to place tight constraints on every one of us.
But, in actual fact, spending is the best thing we can do at the moment to provide the economy with its best chance of success. The lack of flow of money between financial institutions obviously creates problems, accounting for a majority of the day-to-day transactions, but if a similar scenario were to hit at ‘ground level’, then we are truly in for a rough ride.
That’s not to say that we should be frittering money away, or that we can assume life will proceed as normal over the next twelve months, but not buying anything above the bare necessities, refusing to replace an old t-shirt or not enjoying a Saturday out at the football/races, will do us no good in the long run. Besides, saving is hardly beneficial at the moment anyway.
A lot of people will have to cut back on their spending, and not just those on low incomes. Many people don’t know whether they’ll have a job in six months time.
Yes, spending more will help the economy, but according to Keynsian economic principles it should be on capital projects, and not fun.
And anyway, I find that today I’ve already spent £16,000 on lines of credit to various banks, that’s plenty enough spending for the moment!
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