Stakes for all races in KwaZulu-Natal and the W-Cape will be reduced by 8% from 1 October. The bulk of the reduction is achieved by halving prize money for fourth-finishers and no longer paying prize money for finishing fifth.
According to a Gold Circle press release this is how the reduction works:
Based on current levels for each division,
1) The percentage for the winner will be reduced from 62,5% to 61 %
2) The percentage for the 2nd horse will be reduced from 20% to 19%
3) The percentage for the 3rd horse will be reduced from 10% to 9,5%
4) The percentage for the 4th horse will be reduced from 5% to 2,5%
5) No stake will be paid for the 5th place, i.e from 2,5% to 0%
Gold Circle states that this arrangement has the effect of reducing stakes paid by 8% and advertised stakes for each race will be adjusted accordingly.
The new arrangement does not affect the Vodacom Durban July and the J&B Met, which will retain their full stakes (R3m and R2.5m respectively).
In addition, the following applies from 1 October 2010:-
1) In the event of there being, for whatever reason, a race run with 6 or 7 runners, then only the 1st, 2nd and 3rd placed horses shall earn prize money in accordance with the above percentages.
2) In the event of there being, for whatever reason, a race run with 4 or 5 runners, then only the 1st and 2nd placed horses shall earn prize money in accordance with the above percentages.
3) In the event of there being, for whatever reason, a race run with 3 runners, then only the 1st placed horse shall earn prize money in accordance with the above percentage, although Gold Circle retains the right to abandon ANY race that, for whatever reasons, is reduced to 3 runners or less.
The local conditions governing racing in KwaZulu-Natal and the Western Cape will be changed to support this arrangement.
Gold Circle will apply a firm “no postponement policy”, subject to “key” races being rescheduled. In the event of a Feature meeting postponement is an option under certain conditions.
“Gold Circle regrets having to adopt these measures. Despite the serious trading downturn over the past two years, Gold Circle was able to fund losses incurred by retaining stakes at their previous levels but with little sight of relief in the short to medium term, the Company now has no option but to adjust stakes accordingly”, said Chief Operating Officer and Racing Director Graeme Hawkins.
“From 1 August 2004 to 31 July 2010, stakes paid by Gold Circle increased from R95m to R139m, but with turnover having decreased from R2 billion in 2008 to R1,9 billion for year-end 2010, the Board had no option but to adopt a turnover-linked stakes-formula going forward. It was agreed to allocate a stakes-pot for year end 2011 based on 6,5% of the prior year’s turnover and as a consequence we have R124m available for stakes in the current financial year,” he added.
“In assessing how to introduce the required reduction, we agreed that to reduce fixtures/races, with the resultant loss of opportunity for horses and consequent further reduction in turnover, was not the way to go. Prize money will be under continuous review and it follows that once trading conditions improve, the stakes formula will deliver more to the stakes-pot.”
