AFTER Christmas break, all of the trainees arrived in America ready for action. Significant travel delays shook up the European contingent, but all the bags have arrived by now. The month has flown by, highlighted by various visits to historical Bluegrass farms, including Jonabell Farm, home to the Darley stallions, and Coolmore’s Ashford Stud, where Triple Crown winner American Pharoah rules. However, even though one would like to admire the stallions all day, work had to be done. The equine nutrition module at the University of Kentucky, as well as completing the racing official accreditation course has kept us on our toes!

Who would have thought we would get the chance to discuss significant steward decisions and disqualifications that created tsunamis within thoroughbred racing? Over and over we watched the races in question, focusing on the horses and the jockeys while discussing how the officials came to their decision. Decades of combined experience, the good and the bad, all was laid bare.

The job of the Godolphin Flying Start trainees? To learn and listen. Would we come to the same judgement, when applying the local rules? Do these regulations still serve purpose? Should there be a worldwide set of criteria against which every race should be judged?

RACING ROOKIE

For an American racing rookie, it has been a month of new experiences and gaining a deeper understanding of the local racing culture. Threats to the industry such as the decrease of average starts per runner per year consequently decreasing the average field sizes and negatively influencing the betting handle, directly correlating to the level of purse a racecourse can offer and the quality of a racegoer’s experience, consumed plenty of debate.

However, the perceived issues around integrity in relation to the use of furosemide, the lack of a racing governing body and the newly proposed idea of a racing integrity act have been reoccurring topics, receiving plenty of media attention as well as our own consideration. Last but not least, as members of the millennial generation, we recognise the need to rejuvenate the sport’s fan base. Overall, the American racing industry is consolidating. Two relevant financial paths comprise racetracks and betting entities, whereby lower handle decreases revenue and lowers return on capital, which in turn relates to less capital investment, declining customer experience and less money spent on racing.

For breeders and owners, the lower handle decreases the purses, lowers the sale prices, decreases the foal crop, produces fewer race meetings and smaller field sizes, to conclude yet again with lower handle. This poses a pretty bleak picture, right? Perhaps, it would be wise to consider a widely embraced business model, outlining waves of growth and decline an industry experiences throughout its existence.

As outlined in the Harvard Business Review, the consolidation curve model consists of stage 1, the opening an industry, followed by stage 2, the scale or consolidation, stage 3 the focus and expansion to stage 4, where the business is at the peak of its game.

When was racing in the United States at its true peak? Was it when the average yearling price at Keeneland September was $539,264 in 2006? Or when the total North American foal crop was hovering between 50,430 and 51,296 in from 1985 until 1987? Worthy to note that the 2017 foal crop currently is an estimated 22,500. According to the business model as proposed in the Harvard Business Review, the turnover of the four phases takes approximately 25 years. If we follow the model, the industry was at a high in 2006/2007, before spectacularly crashing at the hand of the economic crisis in 2008.

POSITIVE ASPECTS

Fast forward to the present day, whereby we can find ourselves in Stage 2, giving us another 15 years to get back on top to Stage 4.

Strength can be drawn from positive aspects outshining the consolidation, the negatively perceived alternative gaming industry does generate $800 million in cash flow annually for tracks and is estimated to account for 70% of the growth in purses between 2010-2020. Also a positive, the need for a high-quality market continues, with the big events showing resilience to the consolidation trend in the shape of higher attendance, television ratings and handle.

One might think, why bother with these political, financial and structural industry matters? But I must stress that if we couldn’t discuss these matters in a well-informed manner, especially as young industry participants, then what have we really learned so far? Anywhere we go, every racing jurisdiction we get the pleasure to explore, the Godolphin Flying Start trainees must pose to themselves the same question: ‘’How can we play a role? How can we assist in creating a sustainable industry that looks after all involved, human and equine alike?”

The locals have generously donated their time and attention throughout our stay here so far, allowing us to soak up their knowledge and experience.

In return, it is up to us to honour local racing history, yet also drive for change, and most of all develop the wisdom to know and acknowledge the difference.

Closing date for 2018 applications close on Monday, February 12th 2018 . Visit www.godolphinflyingstart.com for more details and to apply.