Price comparison study on the cost of going racing The Racecourse Association Deloitte LLP. All rights reserved.

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1 Price comparison study on the cost of going racing The Racecourse Association

2 Glossary Benchmark Concession Customers Customer group Enclosure Entry point Festivals General Admission (GA) London weighting Price range Raceday/Spending packages A comparison against a metric from a similar activity or industry Reduced admission price, usually for children or OAPs Those individuals or groups purchasing the goods in question, in this case leisure activities Customers of similar ages/backgrounds grouped together for the purposes of this study Ticketed area at a racecourse The lowest priced admission to a leisure activity Iconic multi-day fixtures in the racing calendar Ticket allowing access to the leisure activity (ticket type or enclosure not specified) The extra cost associated with certain activities when attending in London or the South-East compared to other areas of the country The difference between the lowest and the highest ticket/admission price for an activity Offers whereby for a fixed amount the customer receives admission and other items (e.g. a free drink or a free bet) for a reduced overall price Racing 2015 Online survey of racegoers carried out in 2011 VAT Value Added Tax 2 Price comparison study on the cost of going racing

3 Contents Glossary 2 Section 1 - Overview Basis of preparation 4 Methodology 5 Executive Summary 6 Section 2 Benchmarking Customer groups and spending packages 9 Racing fixture types and comparative activities 10 Racing fixture admission categories 11 Basis of benchmarking 12 Section 3 Racecourse questionnaire and desktop findings 13 Section 4 Online survey findings 26 Appendices 33 3 Price comparison study on the cost of going racing

4 Basis of preparation Background The Racecourse Association ( RCA ) has engaged the Sports Business Group at Deloitte to undertake a price comparison study examining how the cost of a day s racing compares with other sport and leisure pursuits. This report will provide the RCA and its members with information to examine the value for money of racing and also supply benchmark data to help racecourses set their admissions prices. Limitations The Report has been written in general terms and therefore cannot be relied upon to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from actions as a result of any material in this Report. Our The study combines a racecourse questionnaire, desktop into competitor pricing and an online survey of racegoers to explore their perceptions of the value for money of racing and how it compares with other leisure activities. The study involved: A kick-off workshop with representatives from the RCA s Raceday Experience Group where project timelines and were agreed. Desktop on: Customer segments; Racing fixtures; Competing leisure activities; Spending packages. Design and data collation of a racecourse questionnaire on pricing/costs and related matters which was sent to those racecourses providing data for the study. Design, dissemination and analysis of an online racegoers survey to collect information on spending habits and perceptions of the cost/value for money of going racing and comparisons to other leisure activities. 4 Price comparison study on the cost of going racing A representative sample of racecourses was used for each fixture type, however it is possible that other racecourses not included in the study may have more pricing offerings, at either end of the scale, which may have led to different results if included. Representative samples were also taken for competing leisure activities, but again other venues/activities not included in the study may have more variable pricing offerings particularly at either end of the scale. The survey received over 1,600 responses from people who had recently been racing. Whilst the survey was distributed over a wide range of media to reach a broad range of responses it is possible that some demographic groups may be underrepresented. However, when compared to the Racing 2015 survey, carried out in 2011 and which drew c.3,000 responses, the survey demographics were broadly comparable, indeed this survey had a higher proportion of some demographics, notably: - 30% female response compared to 23% in Racing % response for those aged under 36 compared to 12% in Racing 2015 (See Appendices for further comparison)

5 Methodology Racecourse pricing Macro findings from economic impact study into average prices/spending levels Micro - collection of racecourse pricing data Sport and Leisure Benchmarks Current racecourse analysis RCA/racecourses meetings and workshops Benchmarks agreed with RCA/racecourses Drew on knowledge from the Deloitte Sports Information System Relevant examples Robust price comparisons Experience of racecourses Kick-off meeting confirmed methodology, customer segments and fixture types Findings workshop Value for money views Online survey Linkage with Economic Impact of British Racing work Qualitative and quantitative questions Distributed by racecourses and other stakeholders 5 Price comparison study on the cost of going racing

6 Executive Summary The performed indicates that the cost of going racing is very competitive, with the cost of fixtures examined consistently less than the large majority of comparator leisure activities for the different types of consumers studied. As is the case for most leisure activities racing is still perceived by some as being expensive, however it is notable that when compared to other activities racing is rated as better value in the vast majority of cases. It is important that the racecourses and other bodies address this reality and perception gap. This report can play a part in that process. Racing offers a particularly broad range of prices when compared to other activities. This continues to give excellent choice to racegoers and caters for a wide variety of budgets. This broad, flexible pricing should be maintained and emphasised by racecourses in order to attract racegoers from a wider range of economic backgrounds. The average ticket price actually dropped from 25 in 2008 to 24 in 2012, demonstrating the flexibility of racecourses to adapt to a more challenging economic environment. Free entrance to children aged 16 or under places racing at a distinct price advantage over most other activities for a family day out. This point should continue to be reinforced in promotional literature and elsewhere as compared to other attractions, many where children pay the same as adults in this respect, racing offers excellent value for families. The pricing of food and drink at racecourses is comparable to other activities. Racecourses should monitor and benchmark the pricing of their food and drink compared to other attractions even where catering is outsourced, as expensive refreshments can give the impression that the whole day out is costly. The pricing of a seated meal at a reserved table at racecourses is competitive when compared to other activities, for our sample racing provided three of the four cheapest options in this category. The fact that racing takes place on every day of the week places it at a distinct advantage over other sporting attractions in being able to attract racegoers from those groups (notably the retired) who have more flexible free time hence are able to attend mid-week fixtures. Racecourses with mid-week fixtures should target these groups to help boost mid-week attendances (usually significantly lower than weekends) with competitive pricing, concessions policies and relevant tailored offers. When compared with the key events in other sports, racing s premier fixtures are particularly keenly priced. This fact may not be appreciated by the public that attend sporting events, and the racecourses holding these iconic fixtures should stress that, compared to the equivalent events in other sports, they represent excellent value for money, both in the general admission and corporate hospitality sectors. The survey results suggested racing is seen by more racegoers as being expensive than cheap, however the fact that it is rated as better value than most other activities implies that most people, if questioned, would see any leisure activity as expensive. Racecourses should continue to emphasise that in what the public see as an expensive leisure market, racing offers an excellent value day out. 6 Price comparison study on the cost of going racing

7 Executive Summary A racing fixture offers the cheapest, or second cheapest overall cost of attending for the six customer groups examined when compared to the other activities in the study. Racing offers the lowest entry point for five of the six customer groups when the range of prices for each activity are compared. Premier summer music nights were the highest priced racing fixtures in the comparison exercise and had the highest entry points. However, when compared to music or a show at a major arena, the racing fixtures appear favourably priced being cheaper when directly compared and with a lower entry point for all groups bar the mature friends and corporate box. Whilst there is a perception amongst racegoers surveyed that racing is expensive (38% expensive compared to 11% cheap), when compared to other leisure activities racing comes out more favourably. Of the 10 activities racing was compared against only one (cinema) was deemed to be better value for money than racing. All other activities (particularly Football and visits to a Theme park) were perceived to be worse value for money than racing. This is a positive result when considering that in the last five years the cost of living in the UK has increased by at least 24% over a number of metrics. Whilst the majority of racegoers do not view betting as part of the total cost of the day out, it is the group placing the smallest stakes that are more likely to include it in their overall spending. As such, betting offers (e.g. free 2 stakes as part of ticket packages) are a valid marketing tool to attract more of this group of racegoers as they will see it as a discount on the total spend of the day. When asked what activities or initiatives would encourage them to go racing more 72% of survey respondents stated Buy one get one free ticket offers and 52% cited Raceday packages (e.g. admission, drink, free bet for a fixed price). These were the most popular initiatives suggested by respondents. Other findings included: - Insufficient free time (stated by 40% of respondents) and the total cost of the day (stated by 33%) are the main prohibitors to people going racing more often, although nearly a quarter stated they go racing as often as they wish; - Most racegoers go racing with either their spouse/partner or friends; - Over 60% of racegoers reported that they spent 20 or less on food and drink purchased on the racecourse, with 10% saying they spent over 50; - Festivals and fixtures with music are those most likely to incorporate an overnight stay; - Car is the most common mode of transport to the races, followed by train. This response reinforces the importance of free parking in attracting racegoers, which most racecourses offer at the majority of their fixtures. 7 Price comparison study on the cost of going racing

8 T hi s i Benchmarking 8 DRAFT Price comparison study on the cost of going racing

9 Customer groups and spending packages The study looked at the cost of a day s racing compared to other leisure activities for six agreed representative customer groups. The groups and their respective spending packages are detailed below. Premier sports events have also been included as an additional category to benchmark Racing s premier events against those of other sports. CUSTOMER GROUP SPENDING PACKAGE 1. Single attendee Admission only 2. Family of four Admission for two adults and two children Snack (e.g. ice cream) Parking 3. Young group (under 30s) Admission Three drinks and a burger/pie per person 4. Mature friends (over 40s) Admission Seated meal, including half a bottle of wine per person, with use of table all day* Parking * For comparative activities where a meal was not available as part of an overall package (e.g. theatre) the cost of eating in a local restaurant was used. 5. Retired couple Admission for two OAPs Soft/hot drink and snack Parking 6. Corporate box Admission and use of a box for min. of 10 people Meal and drinks included Premier sports events Entry level admission only NB Parking and travel Parking has been included in those groups above where travel by car was deemed the most likely mode of transport. However the cost of travel itself to the day s activity has been excluded from the study as it will vary significantly for each individual customer. 9 Price comparison study on the cost of going racing

10 Racing fixture types and comparative activities The racing fixture types and comparative activities were tailored to each specific customer group. The grid below shows these for each group at least three fixtures and five comparative activities were used for all groups: CUSTOMER GROUP RACING FIXTURES (max. 5 per group) COMPARATIVE ACTIVITIES (max. 10 per group) Single attendee Family of four Young group Mature friends Retired couple Corporate box Mid-week summer fixture Saturday winter afternoon Summer premier music night Summer afternoon family day Mid-week winter afternoon Music/show at major arena Premier League football Football League (1 or 2) Top level domestic rugby (league and union) County cricket (Twenty20) Theatre Zoo Theme park Cinema Round of golf 10 Price comparison study on the cost of going racing

11 Racing fixture admission categories A variety of admission categories exist for most racing fixtures depending on the popularity of the meeting in question. Whilst for some fixtures racecourses may operate a one enclosure policy the majority of fixtures will usually have between two to four categories based loosely around the three listed below: ADMISSION CATEGORY DESCRIPTION Family / Silver Ring / Course Enclosure Tattersalls / Grandstand and Paddock enclosure Cheapest enclosure there is often an option to pay by car if allowed to drive in Usually located in the centre of the course with no grandstand provision More limited bar and catering facilities but often allowed to picnic Usually a small number of bookmakers and/or Tote booths present No access to pre-parade ring, parade ring or winners enclosure Mid-price range admission Usually located on the stands side of the course with grandstand provision to aid viewing A variety of bar and catering options available Full betting ring and Tote access Access to pre-parade ring, parade ring and winners enclosure Premier / Club enclosure Highest priced General Admission (GA) ticket available Located on stands side of the course with the best viewing facilities available in premier grandstand Access to all bar and catering options (apart from Owners & Trainers, Members and Hospitality areas) Full betting ring and Tote access Access to pre-parade ring, parade ring and winners enclosure 11 Price comparison study on the cost of going racing

12 Basis of benchmarking exercise The benchmarking exercise (comparing the cost of going racing at the selected fixture types to other sport and leisure offerings) consists of two types of analysis for each customer group (excluding single attendee and corporate box groups for which only the price comparison has been shown due to only one expenditure type being considered). ANALYSIS EXERCISE 1. Overall price comparison 2. General Admission price range comparison DESCRIPTION Compares the total cost of the visit, based on the agreed spending packages (as set out on page 9). The prices used have been calculated by using: o for racing, a mean average of the pricing information provided in the racecourse questionnaire for each fixture type (four or five racecourses for each fixture type); o for other sport and leisure offerings, a mean average of the the admission prices for each activity (full details of all comparative activities included in the Appendices). For the racing fixtures used in the study the cheapest admission category with access to preparade ring, parade ring and winners enclosure has been used (i.e. Tattersalls / Grandstand and Paddock enclosure prices). This has been validated by findings from the online racegoer survey which showed this admission type was the most popular amongst respondees so it seems most appropriate to use this category. For all activities (racing and non-racing) early/online booking offers are included, as are any booking charges. Prices are for individual events hence exclude season tickets and memberships. All prices include VAT where applicable. Compares the range of prices for the General Admission section of the total cost of the day out; i.e. shows the lowest and highest General Admission prices for each activity. o For racing fixtures the range of prices represent access to different enclosures with varying levels of facilities. o For other activities the price ranges represent the quality of the seating (higher price for a better view) and/or the appeal of the sporting fixture or entertainment on show. The same racecourse and other sport and leisure data from the overall price comparison exercise has been used for this part of the analysis. Compares ranges of on-the-day General Admissions only. 12 Price comparison study on the cost of going racing

13 T hi s i Racecourse questionnaire and desktop findings 13 DRAFT Price comparison study on the cost of going racing

14 Single attendee General admission prices range and average (given in box) Music/show at major arena (A) 62 Premier League football Includes: - General Admission only - As only GA is considered for this group (no other expenditure) only one chart is shown. This compares the range of GA prices, with the average price of the cheapest admission category (with access to pre-parade ring, parade ring and winners enclosure) shown on individual bars. Top level domestic rugby Round of golf Football League premier music night County cricket - Twenty20 RACING - Saturday winter afternoon jumps afternoon/evening RACING - Mid week winter afternoon General Admission range (A) Range due to London weighting 14 Price comparison study on the cost of going racing Of the ten activities analysed three of the cheapest four are racing fixtures (the other activity being Twenty20 cricket). The summer premier music night racing fixture was the third highest priced activity ( 30), but again was notably less than the comparative activity of music or a show at a major arena ( 44-54). Racing fixtures also occupy four of the five lowest entry points of all ten activities, with a single attendee able to attend a mid-week winter afternoon fixture for 4 or a summer afternoon/evening for 5. At the top end of the price ranges racing also represents the lowest for a mid week afternoon fixture ( 16). The highest top end price for racing was for a summer premier music night at 55, the fourth most highest top end price of all activities. It is evident that racing typically has a broader price range than most activities. This provides choice to racegoers and provides low entry points. It also emphasises the need for racecourses to be clear about the differentiation and classification of different admission areas and prices. Racecourses have focussed on this area in recent years.

15 Family of four Price comparison (two adults, two children) Cost of visit per group Music/show at major arena Premier League football Includes: - Admission for two adults and two children - Snacks - Parking Theme park Zoo premier music night Top level domestic rugby County cricket - Twenty20 Football League RACING - Saturday winter afternoon jumps Cinema RACING - Weekend/BH summer afternoon family day afternoon/evening For the vast majority of fixtures racecourses offer free entry to children aged 16 or under when accompanied by a paying adult. The number of children allowed per adult varies by racecourse, but will be for entry to the same enclosure that the adult has paid for. Of the twelve activities analysed three of the four cheapest are racing fixtures, cinema also being amongst the lowest priced of those studied. The highest priced racing fixture for a family was a premier summer music night, the fifth highest priced activity. However, at 84 this is significantly less than the comparative activity of music or a show at a major arena at c. 140 ( 170 in London). Racecourses regularly theme some fixtures (especially those on Sunday or Bank Holiday afternoons) Family Fun Days. These can include non-racing attractions such as funfairs, bouncy castles and childrens characters (e.g. Peppa Pig) to more equine related features such as meet the racehorse run by organisations such as Retraining of Racehorses. It is evident that racecourses offering free entry to children for the vast majority of fixtures provides them with a competitive advantage over other leisure activities. This should be a powerful selling message. Family admission Snacks Parking London weighting 15 Price comparison study on the cost of going racing

16 Family of four Music/show at major arena Theme park premier music night Zoo Premier League football Top level domestic rugby County cricket - Twenty20 Football League RACING - Saturday winter afternoon jumps Cinema RACING - Weekend/BH summer afternoon family day afternoon/evening General Admission price range comparison Of the twelve activities analysed two racing fixtures (a weekend/bank Holiday summer afternoon family day and a summer afternoon/evening) have the lowest entry points of 10 for a family of four. This is due to some racecourses offering 5 entry for adults to the cheapest enclosures at these fixtures, with children free. Whilst the entry point for a summer premier music night fixture is the third highest of all activities it is still on average 62 cheaper than that of music or a show at a major arena. The relatively high cost of music nights compared to other racing fixtures is due to most racecourses included in the study charging for child admissions, which is not the case for most other (non-music) fixtures. The range of prices can vary significantly due to differing concession policies and ticket category pricing. Even within the racing fixtures analysed there exists considerable variation, with family entrance to a music night ranging from 50 to 132. Premier League football has an especially large price range (ranging from 44 to 254) due to significant variations between clubs on family ticket offers, concessions policies and general ticket availability General Admission range 16 Price comparison study on the cost of going racing

17 Young group Comparison of cost per person Includes: - Admission for one adult Music/show at major arena Three drinks and a pie/burger Premier League football premier music night Top level domestic rugby Of particular note when considering this particular customer group is that for many groups of young people it is the day s experiences, not purely the sport, that matter more. With that in mind the analysis of this group also includes drinks and food for the participants. Whilst the price of these components does not vary greatly between different activities (between 13 and 17) it is higher than if food and drink were purchased outside of these events and is still an important and significant part of the day s budget for a young group. Round of golf Excluding music or a show at a major arena the average price of the activities ranges from 30 to 50 and racing appears well positioned within this spread. RACING - Saturday winter afternoon jumps County cricket - Twenty20 Football League afternoon/evening Racing provides the cheapest activity with an average price of 30 for a summer afternoon or evening fixture. A Saturday winter afternoon jumps fixture is also towards the lower end of the scale at 35. The highest priced racing fixture was a premier summer music night. This was the third highest priced activity overall but at an average of 45 still significantly less than the comparative activity of music or a show at a major arena at c. 63 ( 93 in London) Single admission Three drinks & pie/burger London weighting 17 Price comparison study on the cost of going racing

18 Young group General Admission price range comparison Music/show at major arena Premier League football Top level domestic rugby Round of golf Football League premier music night County cricket - Twenty20 RACING - Saturday winter afternoon jumps When the price ranges of the nine activities are compared, all three racing fixtures are within the cheapest four in terms of entry points. A young person (adult) can attend a summer afternoon/evening fixture from 5, which is 10 cheaper than the entry point for any other activity. The upper price range of Twenty20 cricket and a Football League match were lower than for all racing fixtures, reflecting the premium paid for access to its top end facilities. Although the highest ticket price for a summer premier music night fixture is the fourth highest overall, the entry point of 15 is significantly less than the 41 for music or a show at a major arena. When the ranges of the various activities are compared both Football League and Twenty20 cricket have much narrower price ranges than all racing fixtures, emphasising racing s wider range of facilities and enabling lower priced entry points in comparison to other sports. afternoon/evening GA range 18 Price comparison study on the cost of going racing

19 Mature friends Comparison of cost per person Premier League football Top level domestic rugby County cricket - Twenty Music/show at major arena Includes: premier music night Theatre Admission and a meal at a reserved table (seat available all day, including half a bottle of wine per person) - Parking Football League afternoon/evening NB - Food and drink are not split out separately from admissions due to a number of leisure activities combining the price of the two, making it difficult to ascertain the price of the separate components. RACING - Saturday winter afternoon jumps RACING - Mid week winter afternoon Round of golf Admission and meal/wine at reserved table pp Parking London weighting 19 Price comparison study on the cost of going racing Of the eleven activities analysed the three racing fixtures are all in the four cheapest overall. The cheapest overall activity per person was a round of golf, although the cost of a round varies significantly depending on the course as can be seen when the price ranges are compared. The highest priced racing fixture was a premier summer music night but again this was notably less than the comparative activity of music or a show at a major arena.

20 Mature friends General Admission & meal price range comparison Premier League football premier music night Music/show at major arena Top level domestic rugby Football League RACING - Saturday winter afternoon jumps afternoon/evening The entry points for admission and a seated meal at the eleven activities range from 40 to 88, excluding Premier League football which is priced significantly higher at 156. Three of the four racing fixtures sit comfortably in this range with entry points from 50 to 68. The highest entry point for a racing fixture is 88 for a premier music night. This is comparable to a similar offering for music or a show at a major arena, whilst at the upper end of the range racing is notably cheaper ( 130 compared to 174). Although racing does not occupy the cheapest entry point a Saturday winter afternoon jumps fixture does offer the lowest top end price of all the activities analysed at 70. Indeed three of the five lowest top end prices are racing fixtures. County cricket - Twenty RACING - Mid week winter afternoon Round of golf Theatre General Admission range 20 Price comparison study on the cost of going racing

21 Retired couple Price comparison Music/show at major arena Theatre Premier League football premier music night Top level domestic rugby Round of golf Includes: County cricket - Twenty Admission (OAP concession if applicable) - Cup of tea & snack Football League Parking RACING - Saturday winter afternoon jumps RACING - Mid week winter afternoon afternoon/evening Cinema Of the twelve activities analysed three of the cheapest four are racing fixtures all priced in the region of on average. The cheapest overall activity for a retired couple was a cinema trip ( 13) due to significant discounts available for OAPs at daytime screenings. The highest priced racing fixture was a summer premier music night but this was still notably less (c. 50%) than the comparative activity of music or a show at a major arena Admission Cup of tea & snack Parking London weighting 21 Price comparison study on the cost of going racing

22 Retired couple Music/show at major arena Premier League football Round of golf Theatre premier music night Football League Top level domestic rugby County cricket - Twenty20 RACING - Saturday winter afternoon jumps afternoon/evening 6 Cinema 6 RACING - Mid week winter afternoon General Admission range General Admission price range comparison 134 Of the twelve activities analysed three of the four lowest entry points are for racing fixtures. The lowest entry point for any activity was the 4 for a retired couple to attend a mid week afternoon fixture. Cinema was the only nonracing activity with a sub 20 entry point due to special daytime OAP offers. The highest racing admission entry price was for a summer premier music night fixture at 30. This fixture type also represented the highest priced top end entry for racing, along with a Saturday winter afternoon jump fixture, at 90, although there were still four other nonracing activities with higher top end prices. Racing has significantly more time slots to cater for customer groups who have more flexibility in their leisure time, such as the retired market, due to there being afternoon fixtures every day of the week, at a time when several other activities do not take place. Football, for example is limited to weekends and some midweek evenings, so racing is well placed to capitalise on these mid-week opportunities for people with more time flexibility, and it is important that it is priced and marketed accordingly. 41% of racegoers survey respondents aged 56 or over believed the price of tickets to be expensive, so racecourses should consider how this could be addressed, including potentially more targeted packages. 22 Price comparison study on the cost of going racing

23 Corporate box General admission prices range and average (given in box) Premier League football premier music night Music/show at major arena County cricket - Twenty20 Top level domestic rugby RACING - Saturday winter afternoon jumps Football League afternoon/evening RACING - Mid week winter afternoon ,434 1,658 1,314 1,278 1, , ,800 1,496 1,275 1,294 1,800 1,640 1,624 1,860 2,157 2,160 1,527-2,527 2,700 3,500 5, ,000 2,000 3,000 4,000 5,000 6,000 Range 3, Price comparison study on the cost of going racing Includes: - Corporate box for 10 people including a meal and drinks - As only the total cost is considered for this group (not possible to split out different segments of expenditure) only one chart is shown comparing the range of prices, with the averages shown on individual bars Very significant variation exists between the facilities and standard of corporate boxes not only between, but also within different sports and leisure attractions. This variation is therefore reflected in the large cost differences between and large price ranges within different activities. The chart demonstrates that of the nine activities analysed three of the cheapest four are racing fixtures. The highest priced racing fixture was a premier summer music night. This was slightly more than the comparative activity of music or a show at a major arena at a regional venue but significantly less than that activity in London which costs almost twice as much. The two lowest entry points for a corporate box are racing fixtures, the cheapest of which starts at 500. A box at a Football League match was the only other activity with a similarly low entry point as three of the four racing fixtures. Only a Football League or Twenty20 cricket match have lower top end prices than any of the racing fixtures. The highest racing entry point was at a summer premier music night fixture. At 1,434 this was slightly more than the cheapest entry point for music or a show at a major arena. Premier League football represents the highest priced activity with both the highest entry point of 1,800 and the highest top end price of 5,400.

24 Premier sports events Corporate hospitality comparison Britain s top racing fixtures such as the Classics, major Flat festivals and the Cheltenham and Aintree festivals are an important part of the nation s iconic sporting events, and as such their pricing varies from the core of the racing programme. As a result of this differentiation these fixture types have been compared against other events of similar stature to provide a more indicative analysis. Royal Ascot has been excluded from the analysis due to the unique nature of the event. Champions League Final 3,480 F1 - British GP 1,074 Wimbledon 618 Champions League group stage 405 Test Match (non Ashes) RACING - The Classics and Premier Flat Festivals RACING - Cheltenham & Aintree ,000 1,500 2,000 2,500 3,000 3,500 4,000 Hospitality from (price pp) Due to the wide variety of different corporate hospitality offerings premier events are not conducive to an individual breakdown of costs as the majority include parking, admission and food and beverages in their overall sum. The adjacent chart indicates the entry level price per person at a number of premier sports events at which hospitality is available, including provision of a meal and drinks. Of those premier events analysed racing offers the cheapest at which corporate hospitality is available. Whilst a non-ashes Test Match offers a similar price to racing there is a marked increase to the other premier events analysed, notably the Champions League Final. 24 Price comparison study on the cost of going racing

25 Premier sports events General Admission comparison F1 - British GP Champions League Final Wimbledon Test Match (non Ashes) RACING - Cheltenham & Aintree RACING - The Classics and Premier Flat Festivals GA price only The adjacent chart shows the price ranges for general admission alone for those premier sports events listed. Racing s premier festivals offer the lowest entry points, being 8 for Flat (excluding free entry onto the Hill at Epsom for the Derby meeting) and 22 for Jumps. Only non-ashes Test Match cricket offers a cheaper top GA price. The largest range was to be found at the Champions League Final, with a range of 270 from entry point to highest priced GA ticket Range F1 - British GP 435 1,280 Champions League Final 240 1,320 Wimbledon RACING - Cheltenham & Aintree Test Match (non Ashes) RACING - The Classics and Premier Flat Festivals ,000 1,200 1,400 Family GA (two adults, two children) When the price range at premier sports events for a family of four to attend (again GA cost only) is analysed, Racing s premier events offer two of the three cheapest entry points for family attendance. A family of four can spend a day at a premier Flat festival for 16, and as for a single General Admission only a non-ashes Test Match has a lower top price. The top end prices of Racing fixtures may have been expected to be lower, however unlike for regular fixtures not all of Racing s premier events offer free entry to children. Range 25 Price comparison study on the cost of going racing

26 T hi s i Online survey findings 26 DRAFT Price comparison study on the cost of going racing

27 Fixture types attended Attendance at diferent fixture types Most frequently attended fixture types 60% 55% Flat Jump 18% 22% 31% 31% 38% 30% 10% 3% 10% 7% 50% 40% 30% 20% 10% 40% 30% 24% 24% 8% 4% Weekends (excluding festivals) Weekdays (excluding festivals) 16% 12% 28% 26% 34% 35% 14% 8% 17% 10% 0% Weekends (excluding festivals) Weekdays (excluding festivals) Major jump festivals Evenings Major flat festivals Family fun days Fixtures with significant music element Note: Respondents were asked to select their top two responses, thus percentages add up to more than 100%. Base: 1,672 respondents. Source: Deloitte analysis. Evenings 8% 16% 45% 22% 9% Major flat festivals 8% 14% Major jump festivals 12% 15% Family fun days 7% 4% 30% 5% Fixtures with significant music element 2% 27% 32% 26% 26% 23% 29% 28% 20% 24% 30% 38% When respondents were asked how frequently they attend certain fixture types there was an even split between Flat and Jump racing (49% frequently attend Flat, 53% Jump). When questioned on more specific fixture types those most frequently attended were Weekend and Weekday fixtures (excluding festivals) and not evenings. Family fun days and fixtures with significant music elements were the most infrequently attended of survey respondents. Whilst relatively small, the sample sizes for these two fixture types were considered sufficient to include the analysis of responses. 0% 50% 100% Base: 1,672 respondents. Source: Deloitte analysis. Very frequently Frequently Occasionally Rarely Never 27 Price comparison study on the cost of going racing

28 Accommodation and travel Frequency of incorporating an overnight stay in connection with racing (at chosen fixtures) Methods of travel to the racecourse (for chosen fixtures) Major jump festivals 5% 63% 7% 24% 1% Major jump festivals 20% 15% 33% 32% Major flat festivals 3% 59% 5% 30% 3% Weekends (excluding festivals) 5% 67% 4% 22% 2% Major flat festivals 9% 11% 42% 38% Weekdays (excluding festivals) 3% 70% 3% 23% 1% Weekends (excluding festivals) 7% 5% 46% 42% Evenings 5% Family fun days 8% 68% 75% 6% 18% 3% 5% 12% 7% Weekdays (excluding festivals) 2% 45% 46% Fixtures with significant music element 6% 68% 13% 9% 4% 0% 20% 40% 60% 80% 100% Evenings 5% 2% Fixtures with significant music element 7% 10% 26% 2% Family fun days 13% 4% Note: responses based on two most frequently attended fixtures only. Base: 1,672 respondents. Source: Deloitte analysis. 20% 81% 67% 63% 0% 20% 40% 60% 80% 100% Always/almost always Frequently Occasionally Never Note: responses based on two most frequently attended fixtures only. Respondents were able to select more than one response. Base: 1,672 respondents. Source: Deloitte analysis. Walk By coach By car Festivals were the fixture types most likely to incorporate an overnight stay, in part due to the multi-day nature of these events. Fixtures with music also had a higher likelihood of involving an overnight stay, potentially due to the later finish times of post-racing concerts. Car proved by far the most popular method of travel to the racecourse for all fixture types, emphasising the importance of free parking at racecourses to continue to attract racegoers, but also stressing the need for enhanced public transport offerings if racecourses wish to adopt a more environmentally friendly. N/A By train 28 Price comparison study on the cost of going racing

29 Betting Average estimated total daily stakes (before winnings) Estimated total daily stakes by perception of betting activity at race meetings More than % 27% 9% 10% , 14% , 31% More than 200, 7% 25 or less, 18% 26-50, 30% Completely separate from my other spending I would have bet on the day's racing anyway A part of the overall day's budgeted spending An important part of the overall day's budgeted spending % 45% 43% 13% 17% 7% 23% 8% 34% 22% 25% 15% 25 or less 40% 11% 40% 9% 0% 20% 40% 60% 80% 100% Note: Responses exclude those that do not bet. Base: 1,672 respondents 42 non-bettors excluded. Source: Deloitte analysis. Base: 1,672 respondents - 42 non-bettors excluded. Those responding 'Other' also excluded from above analysis due to small population size. Source: Deloitte analysis. The majority (over 60%) of racegoers who bet stake between 26 and 100 at a fixture. Over 50% of those who bet do not view betting as a part of the cost of the day out (44% view it as completely separate, 10% would have bet on the day s racing anyway). This supports the methodology of not including betting as an additional cost of a day s racing when compared to rival leisure activities. However, there is still a large proportion of the racegoing population for whom betting does form a part of cost consideration. Racegoers staking more than 200 are those that are most likely to not view betting as part of the cost of the day s spending (81% responding this way). This decreases with the amounts bet, those staking 25 or less being most likely to view betting as part of the day s budget. That said, within this group over 50% still do not view it as part of the total cost of the day. 29 Price comparison study on the cost of going racing

30 Value for Money Value for money of tickets (for chosen fixtures) Attendance of those respondents reporting tickets to be very expensive or expensive Major jump festivals 11% 42% 42% 2% 3% Major jump festivals 31% 34% 30% 5% Major flat festivals 11% 37% 48% 3% 1% Major flat festivals 28% 34% 33% 5% Weekends (excluding festivals) 6% 32% 52% 9% 1% Weekdays (excluding festivals) 4% 27% 54% 13% 2% Weekends (excluding festivals) 25% 38% 32% 5% Evenings2% 29% 54% 13% 2% Weekdays (excluding festivals) 25% 41% 29% 5% Family fun days1% 22% 45% 19% 11% 2% Evenings 9% 35% 50% 6% Fixtures with significant music element1% 21% 53% 21% 4% Family fun days 19% 33% 44% 4% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Note: responses based on two most frequently attended fixtures only. Base: 1,672 respondents. Source: Deloitte analysis. Very expensive Expensive Neither expensive or cheap Quite cheap Cheap A variety of responses were received when racegoers were asked whether certain fixture types were seen as expensive or cheap. Festivals were perceived as being the most expensive fixture types, reflecting the pricing of such premium sports events in the UK. The price of racing festivals compared to other premium sporting events is set out on page 25 which showed that racing is priced substantially lower than other events. Experience of similar surveys for other sports is that there is generally a substantial proportion of respondents who rate the top events as being expensive but still attend. Family fun days were seen as the best value for money, aided by the free admission of children for the vast majority of fixtures. Of those respondents who believe their chosen fixture types to be expensive, the majority are frequent racegoers. These will likely be incurring higher cumulative spending on going racing than more infrequent attendees, which may influence their views on pricing. The average ticket price for racecourse admission was 25 in 2008 yet had dropped to 24 in 2012*, showing that racecourses are aware of the need to adopt a flexible attitude to pricing. *Source: Economic Impact of British Racing 2009 and Price comparison study on the cost of going racing Source: Deloitte analysis Note: Fixtures with significant music element excluded due to small population size Very Frequent Frequent Occasionally Rarely

31 Rival leisure activities Competing leisure activities Trip to zoo 16% 22% 39% 16% 7% Theme park 24% 29% 31% 12% 4% Cinema 8% 21% 34% 24% 13% Theatre 8% 21% 51% 14% 6% Music concert at major venues 12% 28% 41% 14% 5% Premier League football match 27% 36% 26% 7% 5% Football League football match 17% 32% 36% 10% 6% Top level rugby league or union match 15% 24% 42% 13% 6% Twenty20 cricket match 17% 19% 41% 15% 8% Round of golf 16% 20% 34% 19% 11% Other 24% 10% 36% 18% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Note: Excludes respondents who answers 'Not/rarely competition for me'. Base: 1,672 respondents. Source: Deloitte Much worse value for money Worse value for money About the same value for money Better value for money Much better value for money When respondents were asked to compare the value of racing to 10 other activities, racing was seen as better value for all but one. The most notable comparisons were with Premier League football (63% see as worse value than racing compared to 12% better), Theme parks (53% see as worse value, 16% better) and Football League (49% see as worse value, 16% better). Cinema was notable for being the one activity seen as better value than racing (37% see as better value, 29% as worse). When all responses are analysed 40% believed that the other activities were worse value for money than racing, 37% that they were about the same and 23% better value. This is a positive result for racing as although the leisure market as a whole is seen as being expensive, when compared to other activities racing is viewed as being better value for money. It is worth noting that in the last five years childcare, rent, food, energy and public transport costs have all risen by at least 24%*, reinforcing the point that the cost of living per se has increased at a rate significantly more than inflation for the majority of the population. This exacerbates the perception that leisure activities are an expensive pursuit. *Source: The Joseph Rowntree Foundation A Minimum Income Standard for the UK in Price comparison study on the cost of going racing

32 Inhibitors and possible initiatives Main reason for not attending racing more frequently Insufficient free time Total cost of the day Nothing, I go as often as I wish Ticket prices I watch racing at home instead Other Poor facilities 10% 14% 21% 36% 35% 52% 63% Insufficient free time and the Total cost of the day were the two most commonly given reasons for people not attending Racing more frequently. When asked which possible initiatives appealed most to encourage more frequent attendance Buy one get one free ticket offers was the most popular choice, followed by Raceday packages, Loyalty points schemes and Multi tickets. 0% 10% 20% 30% 40% 50% 60% 70% Note: Respondents were able to select more than one response, thus percentages add up to more than 100%. Base: 1,672 respondents. Source: Deloitte analysis. Possible initiatives to encourage more frequent attendance Buy one get one free ticket offers 72% Raceday packages 52% Loyalty points scheme Multi tickets 41% 46% Local accommodation packages 32% Free local transport 24% Packages with other sports 5% 0% 20% 40% 60% 80% Note: Respondents were able to select more then one response, thus percentages add up to more than 100%. Base: 1,672 respondents. Source: Deloitte analysis. 32 Price comparison study on the cost of going racing

33 T hi s i Appendices 33 DRAFT Price comparison study on the cost of going racing

34 Appendices Survey respondent demographics For all charts percentages in red brackets denote equivalent figures from Racing 2015 survey (carried out in 2011). Gender Age profile Under 18 0% (0%) Location London 7% (9%) Base: 1,672 respondents. Source: Deloitte analysis. 30% (23%) 70% (77%) Male Female Over 65 5% (3%) 11% (9%) 12% (12%) 18% (20%) 24% (25%) 30% (31%) 0% 5% 10% 15% 20% 25% 30% 35% Base: 1,672 respondents. Source: Deloitte analysis. South England North England Midlands Scotland Wales Ireland Other overseas country 2% (3%) 1% (2%) 1% (3%) 16% (14%) 15% (9%) 32% (41%) 26% (19%) 0% 5% 10% 15% 20% 25% 30% 35% Base: 1,672 respondents. Source: Deloitte analysis. Occupation/work status Household income ( ) Professional/managerial 37% Below 10,000 p.a. 3% (1%) Skilled manual 8% 10,000 to 19,999 p.a. 11% (6%) Clerical/office worker 13% 20,000 to 29,999 p.a. 18% (10%) Shop worker 2% 30,000 to 49,999 p.a. 27% (18%) Unskilled 2% 50,000 to 99,999 p.a. 19% (17%) Semi-skilled manual 3% 100,000 and over p.a. 4% (11%) Student 2% Rather not say 18% (37%) Unemployed Retired House person 1% 3% 22% Base: 1,672 respondents. Source: Deloitte analysis. 0% 5% 10% 15% 20% 25% 30% Other 5% Rather not say 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% Base: 1,672 respondents. Source: Deloitte analysis. 34 Price comparison study on the cost of going racing

35 Appendices Racecourses used to form sample for each fixture type: FIXTURE TYPE Mid-week summer fixture (afternoon or evening) at medium/small racecourse RACECOURSES SURVEYED Beverley, Hamilton Park, Market Rasen, Windsor Saturday winter afternoon (Jump) at premier track Ayr, Chepstow, Haydock Park, Newbury Summer premier music night Doncaster, Leicester, Newbury, Newmarket Summer afternoon family day at medium/small racecourse Carlisle, Cartmel, Pontefract, Stratford, Windsor Mid-week winter afternoon at medium/small racecourse Huntingdon, Musselburgh, Plumpton, Sedgefield Premier Jump Premier Flat Cheltenham Festival, Aintree Grand National meeting The Classics (Newmarket Guineas meeting, Epsom Derby meeting, Doncaster St.Leger meeting), Glorious Goodwood, York Ebor meeting 35 Price comparison study on the cost of going racing

36 Appendices Attractions/clubs used to form basis of comparative activities: COMPARATIVE ACTIVITY Music/show at major arena Premier League football ATTRACTIONS/CLUBS USED O2 Arena, London Cirque du Soleil; Olympia Horse Show, London; Wembley Arena, London Peter Pan World Arena Show; NEC Birmingham Walking With Dinosaurs & Alicia Keys; Manchester Arena Walking With Dinosaurs & Olly Murs. Arsenal; Aston Villa; Manchester City TICKET CATEGORIES USED TO COMPARE WITH OTHER ACTIVITIES - For all events used cheapest price categories, no children/concession prices available - For all Football clubs used cheapest seated tickets for lowest category of game. Family or OAP ticket offers used where available - Hospitality used lowest category games Football League Carlisle United; Doncaster Rovers; Exeter City - As for Premier League football Top level domestic rugby (League & Union) County cricket (Twenty20) Theatre Harlequins (Union); Leicester (Union); Wigan (League); Castleford (League) - Used mid price range seated tickets for lowest category of game (if categorised). Family or OAP ticket offers used where available - Hospitality - no differentiation between games Middlesex; Worcestershire; Yorkshire; Surrey - Only one GA price category available for T20. Concessions and family tickets used where appropriate - Hospitality no differentiation between games ''The Stage' theatre ticket price survey; West End - 'The Audience', Gielgud Theatre; The Palace Theatre, Manchester - Used average of top and bottom of price ranges in regional theatre and applied London weighting Zoo Chester Zoo; Edinburgh Zoo; London Zoo - Used standard GA or family tickets if available 36 Price comparison study on the cost of going racing

37 Appendices Attractions/clubs used to form basis of comparative activities (cont.): COMPARATIVE ACTIVITY ATTRACTIONS/CLUBS USED TICKET CATEGORIES USED Theme park Alton Towers; Peppa Pig World; Thorpe Park - Used standard GA or family tickets if available Cinema ODEON cinemas in Dudley, Glasgow and London - Used family tickets and OAP screening offers, London weighting applied where appropriate Round of golf Average green fee cost from BRS Golf survey; Cragielaw Golf Club, Scotland; Henley Golf Club, Warwickshire; Trent Park Golf Course, London - Used average green fee cost data from survey for price comparison - Survey and specific course data used for price range analysis 37 Price comparison study on the cost of going racing

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