Thoroughbred Idea Foundation 'to tackle major issues' in racing
The following is a letter published Thursday by the new Thoroughbred Idea Foundation's Board of Directors. Board members are listed below.
According to the Jockey Club, the North American foal crop is projected to be 21,500 in 2018 compared to 35,274 (-39%) in 2008. North American handle was $11.5 Billion last year compared to $14.3 billion (-19%) in 2008. A 2011 McKinsey study found that just 46% of surveyed racing fans, defined as someone who bets or attends the races at least three times a year, would actively recommend others to follow the sport. For comparison, baseball fans recommended their sport at a rate of 82%, football fans at 81% and for poker players, 55%.
While significant efforts have been made to market the sport, the customer base is aging. Racetracks are closing. The industry, as a whole, fully recognizes these problems, but remains largely siloed. Each of the many impacted constituencies – owners, gamblers, fans and tracks, among others – are surely contemplating solutions, though there is little interchange of ideas, or regular cross-constituency cooperation.
Better service, transparency and pricing are keys to improving the sport for current participants, all of whom choose to actively participate in racing. Innovation is required to reach new gamblers, owners and fans. We believe the availability of content and data are key to growing the sport, and a path to finding commonality between the sport’s biggest contributors – owners and gamblers.
The Thoroughbred Idea Foundation, a non-profit organization, has been established to create an active forum for the exchange and curation of ideas which will improve the overall prospects for the thoroughbred industry, its stakeholders and fundamentally, the horse.
Our goal is to tackle major issues facing the thoroughbred industry, endeavoring to find ways to improve the economics and sustainability of the business. In the long-term, this could include a not-for-profit business that funds horse charities and purses. We will be independent and transparent. Compromise is a necessity to improve our business, and with that in mind, we will bring people with naturally opposing views together to find common ground.
The only guaranteed funding for our business is through wagering. Purse supplements from other forms of gaming are helpful, but often fleeting. A huge opportunity is wasted if such supplements do not coincide with development and improvement of racing and wagering. With legal sports gambling imminent, the rise of eSports and rampant competition for customer attention, it is imperative that our business modernizes content, improves wagering menus and its pricing model.
The Thoroughbred Idea Foundation (TIF) is not looking for a seat at the table - we have no intention of creating another silo. The ideas and concepts offered will not have pride of ownership. We hope they are adopted freely, by racetracks and industry stakeholders that can implement them for the good of the business.
TIF will be headquartered in Lexington, Kentucky. We will be funded by owners, gamblers, fans, breeders, stallion farms, and other stakeholders. We will not seek or accept funding from industry organizations. Our launch phase will continue over the coming weeks, and we look forward to hearing your ideas. Engage on Twitter @RacingIdeas and use the hashtag #RacingIdeas. The time is now.
Thoroughbred Idea Foundation Board of Directors
Craig Bernick, Lesley Howard, Corey Johnsen, Paul Matties, Justin Nicholson, Gary Stevens and Jack Wolf