By Cliff Williams, ContributorWITH ONE of the worst years of operation behind the racing industry it is to be hoped that the 2004 racing year in Jamaica will see an improvement in the overall fortune of the Sport of Kings but that may not necessarily be the case.
2003 saw a decline in sales turnover at Caymanas Track Limited (CTL), the promoting company, which must be the most worrying aspect of the problems faced by the industry in general. This due to a combination of increased competition from lotteries and illegal bet taking as well as a declining viable equine population which makes it difficult to present attractive race programmes with the desired frequency.
In many quarters operation of a Claiming System is now being cited as one of the primary factors militating against the financial viability of the promoting company because of the general unattractiveness of too many racecards. It would seem to me however, that the lack of serious investment in the breeding industry over the last decade is a more important factor although, without question, a genuine handicapping system does produce more viable betting entries per race than any other form of weight allotment.
Against this background, the racing office of the promoting company is having a most difficult time as the re-opening of race cards to solicit more entries and the job of the racing secretary is becoming more demanding with each succeeding raceday.
Recently the office has been taking a great deal of flak over the lack of entries in far too many races, but one has to question the validity of the criticisms given the fact that the Jamaica Racing Commission (JRC) has released figures indicating that the 230 horses on raceday medication represents twenty-eight per cent of the horse population with only fifty-two per cent of the trainers availing themselves of the opportunity to make use of the controlled administering of Salix (lasix) which controls bleeding.
This puts the thoroughbreds available for racing below 900, which means that the racing office is working with approximately 300 less than a decade or so ago. This presents very serious problems for the viability of the business side of the industry in more ways than one.
The schedule of meetings in the 2004 calendar shows a decrease in the number of proposed racedays and this has been met with a howl of protest from the fraternity but until and unless the equine population increases there is no other course of action available to the promoters.
INADEQUATE FINANCIAL RETURNS
Separate and apart from the problem of inadequate financial returns for the promoting company, it also means that the operation of viable stables is becoming concentrated more and more in the hands of far too few trainers because of their ability to attract the patronage of the more affluent owners, which seems to be an endangered species or dying breed in itself.
Looking at the jockey colony, it is now evident that the attrition rate has increased to a significant degree with not too many attracting enough mounts from which to earn a living. It therefore means that there is going to be an inevitable decline in the number of licensed personnel working as professionals in the industry as earning potential decreases.
Given the current state of the industry, in turning to the prospects for 2004, one has to accept that it will be a challenging year for the Sport of Kings. The fact of the matter is that the problems identified here will not go away immediately. It is going to require significant investment in importation and breeding to bring the equine population back to viable levels and this will take time for the impact to be felt even if that begins this very minute.
Then there is also need for the development of the Caymanas plant which potential investors may very well find to be a deterrent given the magnitude of the capital outlay needed to effect the modernisation of the 45 year-old racing facility. The more I think about this is the more I am inclined to come to the conclusion that this type of investment is not likely to be all that attractive given what is available in the global financial markets. It is now obvious that certain significant concessions, tax and otherwise, are going to have to be contained in any plans proposed for divestment of the promotion of live racing.
The promulgation of the terms and conditions of the proposed divestment promised for the end of December 2003 did not materialise but could be available early this year as JAMPRO, the government's investment agency, has been given the specific responsibility to prepare and present the package to be offered.
As I see it, in terms of development, nothing will change all that dramatically for the industry in the immediate future, divestment or not, and it is going to require an almost completely investment-driven approach to turn things around eventually.
Unfortunately for the racing industry it will be more of the same for the better part of 2004 and possibly beyond until there is an improvement in the general economic status of the country, but that certainly does not mean that the current and future investors should not press on with plans to keep the industry alive and viable.
From this column it is a wish that irrespective of the economic and other circumstances that it will be a successful 2004 for all who are supporters of the Sport of Kings.
