Record Prizemoney levels across all sectors will
increase earning capacity thereby
reducing participation costs for Owners after
Racing NSW announce a $24 million increase in Prizemoney per annum, to take effect from
1 September 2018.
Following this increase in prizemoney, NSW will now be paying
$260 million annually in prizemoney and BOBS bonuses, which is the highest of any State in Australia.
Racing NSW as part of their new Strategic Plan, gave consideration to matters raised by industry participants relating to:
(a) prizemoney,
(b) affording Owners the opportunity of defraying their costs,
(c) enabling trainers to improve their cash flows and
(d) create a stimulus for improved field sizes, especially for metropolitan & provincial racing
As a major step in meeting these objectives, Racing NSW announced a broad range of prizemoney increases to take effect from 1 September 2018, with prizemoney to increase by more than $24 million annually.
So – what’s it mean for Dynamic Syndications Owners?
From 1 September 2018, minimum prizemoney for Saturday metropolitan races will increase by $25,000 to now be $125,000 for every race.
The majority of the increases in prizemoney will be focused upon horses finishing outside of the placegetters. It is to concentrate on those horses that
finish fourth to tenth in races.
By strategically increasing this are of prizemoney, it bolsters prizemoney earnings (cash returns) to Owners and connections of those horses not finishing in the top three.
In order to improve the cash flow for trainers, in a first for NSW racing, part of this increased prizemoney paid for horses finishing in these positions will be paid by Racing NSW directly to the trainers account, and these amounts as a statutory requirement, must be credited as a prepayment to the owner’s accounts.
This will provide a $13.1 million improvement to trainers’ cash flows.
In addition, trainers themselves will receive an additional $2.4 million a year, courtesy of their statutory 10% trainer’s percentage (commissions).
With the prizemoney paid down to tenth position, jockeys will also collectively receive a widespread increase in their prizemoney percentages of $1.2 million annually. For example, a jockey whose horse finishes tenth in a Saturday metropolitan race receives an extra $75 in addition to their $200 ride fee, an increase of almost 38%.
Also included is an increase in prizemoney for two (2) of The Championship races: (1) the Percy Sykes Stakes and (2) the Arrowfield 3 Year Old Sprint. Both these races have received an additional $400,000 added prizemoney to take them to $1 million per race.
This means that all 10 Championship races now carry a minimum of $1 million per race.
These increases are deliverable because the NSW Government agreed to embrace a policy of wagering tax parity, placing racing in NSW on a level playing field with the Victoria wagering tax.
Increases in wagering tax parity receipts, with a further phase-in of parity from July 2018, along with strong race fields fees revenue, has enabled Racing NSW to deliver these prizemoney increases which have been geared to boost Ownership participation in thoroughbred racing throughout NSW.
In addition to the increase in prizemoney, Racing NSW’s new Strategic Plan will also focus on
significant investment in our tracks and training facilities and ongoing
integrity operations.
Racing NSW has now underpinned outstanding levels of minimum prizemoney across all sectors.
Prizemoney in NSW has increased by more than $130 million annually across a seven-year period.
The success of thoroughbred racing in NSW over this time is due to the thousands of hard-working industry participants and the many thousands of owners that continue to subsidise the industry.
These prizemoney increases importantly focus on benefiting a wider spread of participant groups.
The following tables highlights the magnitude of the prizemoney increases: