IFHA Celebrates Milestone Conference

Paris, FRANCE–While some time was taken for reflection and commemoration at the International Federation of Horseracing Authorities' 50th General Assembly and International Conference in Paris on Monday, the 170 delegates on hand from 52 nations recognised the need to focus on the future, and thus many opportunities and challenges facing racing were discussed, with a view towards the improvement and development of racing internationally.

IFHA Chairman Louis Romanet addressed a number of issues, including the need to work alongside the International Stud Book Committee and stud books around the world to monitor any developments that threaten the Thoroughbred breed, such as genetic and cellular manipulation; the desire to eradicate raceday medication on all continents and have out of competition testing; the importance of advancing progressive horse welfare policies; providing aftercare solutions; and facilitating the movement of horses in a responsible and efficient manner.

The conference began with an open forum where delegates discussed progress made in areas of lab certification and international horse movement. Dr. Yves Bonnaire provided an update on progress made with the IFHA certification and future plans, including expansion of the number of certified laboratories, beginning in early 2017. IFHA Executive Director Andrew Harding talked about the organisation's relations with the World Organisation for Animal Health (OIE) and the International Equestrian Federation (FEI), and the development of the International Horse Sports Confederation (IHSC). He noted research priorities in the area of international horse transportation surround equine influenza, African Horse Sickness and Glanders.

Latin American Racing Channel President Horacio Esposito and Jim Gagliano, president and chief operating officer of the U.S. Jockey Club, provided an introduction of the second Pan Am Conference, to take place May 17 to 20 in Washington DC. Topics to be included in that conference include safety, welfare and integrity, marketing and modern racetrack improvements, and how racing and breeding can better work with government to improve our sport.

Promoting And Attracting Racehorse Ownership…

Promoting racehorse ownership is a vital aspect to ensuring the future health of the industry, and France Galop Director General Olivier Delloye, as well as Team Valor International Chief Executive Officer Barry Irwin, took the podium to discuss recruiting new owners, and the changing landscape of ownership, in a session titled “Promoting and Attracting Racehorse Ownership.”

In introducing the session, Brian Kavanagh referenced a recent study completed in Ireland examining the habits of Irish racehorse owners. The study found that 56% of owners said they became owners because of influence from friends and acquaintances. Ranking the key attractions of racehorse ownership, raceday experience and facilities was ranked the most important element of racehorse ownership.

Irwin said these sentiments were mirrored in his experience managing Team Valor syndicates. He noted that when Team Valor began, its syndicates were marketed as a venture with the potential to return a profit, but he soon found that wasn't the goal of the syndicate members.

“As the business matured, we came to realize that while our investors told us they were interested in making money, the opposite in fact turned out to be the case,” Irwin said. “When presented with a profit, nearly all of them turned it down. By and by we discovered the main reason our customers bought a horse was not the prospect of profit, but the pride of owning a horse. The partners didn't want to lose money, but making money was a secondary feature.”

“Today it is the same old story,” Irwin added. “Most newcomers still want to fool themselves into believing that they are making a traditional investment with a profit motive as the core of their decision. Only with the passage of time does reality set in. They realize the won't be investing in the traditional sense, but spending money for a good time, for entertainment, for friendship, and for pride of ownership.”

Addressing the challenges facing racing syndicates, Irwin described racetracks as being the “biggest roadblock to success.”

“They weren't used to having to throw out perks and accommodate large groups of owners,” he said. “This situation has improved markedly but there is still resistance from major racing venues who give a higher priority to elite owners with a small group of racetrack attendees. It is a constant battle to attain adequate seating for our customers on big racedays. There is a definite built-in prejudice against racing syndicates in America.”

Irwin also highlighted the importance of communication with owners, a demand that has grown in the digital age. He noted Team Valor produces newsletters three times weekly, and pointed to the Australian model as one to aspire to.

“The Australians are lightyears ahead of everyone else, especially [trainer] Chris Waller,” he said. “I haven't had a horse with him in three years and I still get all the videos and audio, and it's especially geared toward you.”

Delloye drew on his experience in his current post, as well as in his past role as managing director of French sales company Arqana, to point out some of the key elements in recruiting and maintaining owners. Delloye said the most important element is maintaining owner morale.

“Because owners dream so much and always aim for the best, and because the game is very tough and sometimes even cruel, our main responsibility is to manage their moral,” said Delloye.

There are about 600 foreign-based individual owners in France, and international buyers making up about two-thirds of purchases at Arqana's August Yearling sale, with many of those staying in France to race and many fillies remaining in the country for their broodmare careers. Delloye admitted more resources are devoted to recruiting foreign owners simply because it is easier.

Delloye pointed out three 'insights' that are imperative to attracting and retaining foreign owners, firstly making your country desirable with a strong financial case (namely purses/incentives programs); good reputation of trainers; and the distinctiveness of the experience of racing in the country.

Secondly, he pointed out the importance of looking after the owner.

“Buying a horse is pretty easy and straightforward,” Delloye said. “Getting registered as an owner, understanding the local tax rules, making the right decisions without having a good knowledge of the country, is another story. A newcomer must be nursed. You must place them from day one in the hands of a good tax advisor, a good accountant, and an agent who will handle the whole process from A to Z. Owners don't have to be exposed to the complexity of the system.”

The third insight is keeping the owners informed, something Delloye identified as being a highly developed system in countries like Australia, but less so in France, where many trainers don't even have websites. He revealed France Galop is developing an app to help trainers in this area.

“Some give very little news, and very few of them have developed websites or modern ways to communicate with their owners, so we were thinking maybe it would provide them a tool which is easy to use and enables them to post updates daily or twice a week, just a quick note to say how the horse has worked or post a picture, small video or voice note,” Delloye explained. “It can only help owners to be happier, and they'll share it with their friends.”

Delloye said in his task of recruiting owners for Arqana's racing clubs, he found the utilization of partnerships and syndications to be key, and that it was “the depth of the experience that hooked them and converted them to individual owners.”

Princess Haya Praises Partnerships…

The keynote speech was delivered by HRH Princess Haya Bint Al Hussein, a world-class equestrian showjumper and racehorse owner and former president of the International Equestrian Federation (FEI).

Princess Haya began by commending the FEI and the IFHA for their joint efforts since they began collaborating in 2007.

“Together, over the last nine years, the FEI and the IFHA have climbed some huge mountains, and while each federation enjoys complete autonomy and individuality, both exist for one reason, and one reason only: the horse,” she said. “And no matter how many differences the industries believe they have, that means that what affects one must affect the other, but also, what can be achieved together is far greater than what can ever be done in isolation.”

One of those achievements has been the creation of the International Horse Sport Confederation in 2013, which has made great progress in the movement of “high health, high level” sport horses internationally and developed an international biosecurity standard.

“The FEI/IFHA partnership with OIE is one of the concrete examples of the incredible things that our organisations can do when we set our sights on common goals,” Princess Haya said, “This breakthrough represents one of the single greatest growth factors for equestrian sport globally, not to mention the resulting socioeconomic benefits that came from opening borders to elite sport horses around the world.”

Princess Haya also expressed her optimism for the future of racing, citing the efforts by organization such as the IFHA to promote best practice, and the high standards of integrity.

“In the 21st century, the Sport Of Kings does not have the social reference it did in the past, and the pinch of economic worries in this country, as well as crowd turnout, casts a huge burden on those who serve the sport here,” she said. “Across the water in England, the replacing of the Levy system, the not-so-distance loss of the BBC in exchange for Channel 4 and ITV, are all discussion points that encourage an outlook that would seem gloomy.”

She added, “If you ask anyone who knows me, I have never been a person who sugar-coated anything I say in my life. I can tell you that I've never seen such a clear opportunity as I do for racing today. As everything in life does it comes with some effort, but not one that is beyond the sport or anyone in it.”

Princess Haya called for racing's major nations to come together and unify on major issues, describing the eradication of raceday medication globally as “absolutely pivotal.”

“As former FEI president I assure you I realize this is not easy, but people must realize for the greater good, change is necessary,” she said. “And it's never impossible.”

She recalled her own experience with an organizational crisis with the FEI, when five horses at the 2008 Olympics tested positive for prohibited substances.

“I learned a valuable lesson from this,” she said. “When a governing body has a problem, anything other than being straightforward and honest will not work, and there is nothing to do but deal with that problem head-on.”

That crisis resulted in the creation of a campaign that addressed inconsistencies in medication substances in non-FEI competitions on different continents.

“Our organization understood that our future depended on doing the right thing,” she said, noting that horse sports were completely clean at the 2012 and 2016 Olympics.

“The future relevance of racing depends on your willingness to make changes and to reach out to promote racing worldwide,” Princess Haya added.

Princess Haya concluded by thanking the delegates for their efforts in improving racing, noting that racing gave her one of the “greatest days” of her life when her New Approach (Ire) (Galileo {Ire}) won the 2008 G1 Epsom Derby. She delivered a moving recount of the day, concluding by saying, “I remember, clearly, the sensation of literally being carried next to that horse. I felt like I was completely lifted off my feet by the energy of 120,000 people shouting congratulations and smiling at us. The power of sheer goodwill and joy at seeing a horse run such a brave race was something that everyone at that racetrack had witnessed and they appreciated it.”

She added, “And as an owner, people show you kindness, a goodness, a generosity of spirit, and a sense that they lived it with you, that I do not think you can experience in any other walk of life.”

Providing Aftercare Solutions At A Global Level…

The afternoon's sessions included a forum chaired Jim Gagliano entitled “Providing Aftercare Solutions at a Global Level.” Gagliano introduced the session by highlighting some of the recent developments made in aftercare globally, including the launch of the International Forum for the Aftercare of Racehorses in August, and noted the relevance of programs such as the Thoroughbred Retirement Foundation's Second Chances program, and the Jockey Clubs' efforts with the Thoroughbred Aftercare Alliance and Thoroughbred Incentive Program. He pointed out that $5.7-million has been awarded to approved aftercare organizations through the TAA since 2012.

The first to speak on the panel was Roly Owers, chief executive of World Horse Welfare, the UK's largest rescue and rehoming charity that works across four continents. Owers stressed the importance of responsible ownership, including responsible end-of-life decisions. He said responsible selling and re-homing is part of responsible ownership, and pointed out three questions to ask when horses leave the racetrack: Can I find this horse a good home? Is this horse suited to second career? What will this horse's quality of life be?

Owers stressed it is important to consider when euthanasia is more humane, a concept that can be a difficult one across nations with different ethics.

“When Thoroughbreds are in training and racing, they're surrounded by the best care in the world. When they move to their second careers, we need to consider whether they will receive such basic things as good farriery,” he said.

Jamie Stier, Director of Raceday Operations for the BHA and Chairman of the Horse Welfare Committee, followed to discuss global best practices in aftercare. The Horse Welfare Committee was formed in 2010 and has 10 members from seven international jurisdictions. Stier pointed out what can happen if inaction occurs, citing the case of Greyhound racing in Australia, which was handed a 12-month shutdown period in New South Wales from next July after “overwhelming evidence of systemic animal cruelty” was detected.

“As custodian of the racehorse, we have a duty of caregiving throughout their life,” Stier said. “That includes before, during and after racing. Whether we accept it or not, society places that expectation upon us. It shouldn't be lost on anyone the significance welfare is playing in our sport these days, and the fact the IFHA have seen fit to have this as a significant topic on their 50th anniversary conference, that in itself says where we are going with it.”

So where are we going with it? Stier called for enhanced data to follow horses at each stage of a horses' life, which also highlights the need for improved traceability of ex-racehorses. He also pointed out the importance of promoting the adaptability of ex-racehorses; considering euthanasia of ex-racehorses in the interests of welfare; industry unity; and working with recognized horse welfare bodies. Stier also noted that the results of the IFHA Horse Welfare Aftercare Survey, conducted over the last year with 48 respondents, are imminent.

“Without our statistics, we are leaving ourselves open to challenges,” Stier said. “We need to have our statistics. They might not always tell a comfortable story but we must be aware of them so we know areas we need to address, where we should be putting our resources, what research needs to be done and they will enable us, hopefully, to devise a standard to provide optimum care to a horse after its racing career.”

Strategies To Secure and Grow Revenues For Racing…

Opportunities for racing to modernize and tap new streams of revenue is always a hot topic of discussion, and that was the subject of the final forum of the day, entitled, “Strategies to Secure and Grow Revenues For Racing.” IFHA Vice Chairman Winfried Engelbrecht-Bresges opened the discussion by pointing out how drastically racing's revenue differs from other sports, with a high emphasis on wagering (65%) compared to other sports that largely derive income from commercial or broadcast deals. He also pointed out the growing trend towards fixed-odds betting in Australia, and noted the importance of racing receiving a fair share of revenue from racing IP rights and pari-mutual betting.

The latter topic provided a fitting introduction for BHA Chief Executive Nick Rust, who provided insight into the BHA's Authorised Betting Partners scheme launched this year. Rust noted that British racing's levy scheme, which was introduced in 1961, worked for 45 years, but the shift to digital wagering and subsequent movement of some bookmakers offshores, where they could evade some taxes and contributions to racing, has rendered the Levy a non-viable funding method for racing.

In March, the British government announced the Racing Right, a replacement for the Levy set for next April, that will see contributions made from every bet placed on British racing.

Furthermore, the BHA introduced the concept of Authorised Betting Partners last October.

“Authorised Betting Partners is British racing's tripartite approach to recognizing those betting operators who, in a voluntary environment, decide to make payments based on their betting activity through all channels,” Rust explained. “Whilst the government has said it's going to act, and we trust that it will, at the time we launched Authorised Betting Partners that commitment was not there with the timetable and framework as to how they were going to do it.”

The ABPs receive benefits for their participation in the programme, including added liaison with the BHA to optimise the timing of races, and media campaigns highlighting their support of racing.

Rust pointed out that, in conjunction with the ABPs, new criteria has been agreed to grow remote betting; strong working relationships have been established; and new major sponsorships have been secured. He also pointed out some of the challenges faced by the BHA on this matter, including the deterioration of racing's relationships with some betting sectors, and some unfulfilled race sponsorships previously taken up by non-ABPs.

Romanet Family Receives Award of Merit…

The Romanet Family was the recipient of the 2016 Longines and IFHA International Award of Merit, which was given out at a gala dinner presented by Longines after Monday's IFHA International Conference in Paris.

“It is a particularly great honor and pleasure to recognize the Romanets' dedication to the sport, in which Longines began its timekeeping expertise more than a century ago,” said Juan-Carlos Capelli, vice president of Longines and head of international marketing. “In 2013 Longines became the partner of the IFHA, which was already headed by Louis Romanet. Since then, we have jointly developed the sporting aspect of horse racing through a series of awards to recognize excellence: the Longines and IFHA International Award of Merit, the Longines World's Best Racehorse, the Longines World's Best Jockey and the Longines World's Best Horse Race. Through common projects, shared successes and great horse racing moments, fostered by our passion for equestrian sports, we have developed a strong friendship with Louis Romanet, who has chaired the Federation since its inception in 1994.”

Louis Romanet is the latest in a line of his family to make a lasting impact on horse racing.

Maurice Romanet and his brother, Rene, began working at the Societe d'Encouragement in 1907, and later created the National Federation of more than 400 racecourses before creating the Prix de l'Arc de Triomphe, France's most important race, in 1920. Rene Romanet also created Le Pari Mutuel Urbain (the PMU). Maurice Romanet worked diligently to modernize the Societe d'Encouragement, and also created the Breeding and Racing Common Fund and was involved in many other aspects of racing, including the creation of the School of Jockeys of the Moulin a vent and the development of Chantilly as a world-class training centre.

Louis Romanet was appointed CEO of the Societe d'Encouragement in 1986 and was also Directeur General of France Galop for 10 years. He was also key in the modernization of Chantilly racecourse and the establishment of the French Racing and Breeding Committee. Among other endeavours, he also served as the first chairman of the International Cataloguing Standards Committee.

“This award pays tribute to more than 100 years dedicated to the racing industry by my family through three generations represented by my great-uncle, my grandfather, and particularly my father [Jean Romanet], whose vision saw the creation of the International Federation of Horseracing Authorities, and the advancement of relations among racing bodies throughout the world. The opportunity to work alongside my father beginning in 1968, and to witness the International Conference of Horseracing Authorities be transformed into a strong international federation that works to grow and protect global racing, is a source of great pride for the Romanet legacy.”