Horse Racecourses
Source: gov.uk (2025-04-28)

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Co-ordination

Horse Racecourses are subject to co-ordination as outlined in the relevant practice note.

Point-to-Point racecourses are not covered by this section but by Rating Manual: section 6 part 3 - section 795 (https://www.gov.uk/guidance/rating-manual-section-6-part-3-valuation-of-all-property-classes/section-795-point-to-point-race-courses).

2. Development and present position of the racing industry

The earliest recorded annual race meetings in this country took place more than 400 years ago at the Roodee at Chester. Races for horses belonging to members of the Jockey Club are recorded in 1752 and the development of racing and the influence of the Club grew from that time. Racecourses were established throughout the country but in the latter half of the twentieth century many closed, until in 1968 there were no more than 58 racecourses in England and Wales.

In 2007 there were some 55 courses (there are 5 in Scotland) a figure which had remained relatively static for some years. In May 2008 the number of racecourses increased for the first time in many years, when after much delay, the first new British racecourse since 1927 opened at Great Leighs in Essex, providing an all-weather facility. A further new all-weather course is scheduled to open in the summer of 2009 at Ffos Las in Carmarthenshire. A list of racecourses is shown at Appendix 1. The racing industry is attempting to attract more racegoers and many racecourses have considerably improved their facilities in recent years to achieve this. Such improvements have been in part funded by the racecourses themselves, in some cases by benefactors, but most improvements have been funded out of the income from the Horserace Betting Levy Board. Racegoing remains a popular pastime and certain meetings have a social standing (Royal Ascot, Glorious Goodwood) which enhances patronage.

3. Description and classification of racecourses

Horse racecourses are no doubt sufficiently well known to need no detailed description, although the more famous courses have individual characteristics which are important to those taking part in the sport. From the point of view of attendances the effect of poor amenities has been referred to in Paragraph 2 and the aim today is to improve racecourses with the following points in mind:

a. To enable racegoers to see more of the racing and of the horses in the paddock without overcrowding or congestion.

b. To provide Totalisator windows in sufficient numbers in the right places and to site bookmakers’ pitches so that the view from stands and enclosures is not obstructed.

c. To provide adequate and hygienic catering facilities and toilet accommodation.

d. To provide adequate car parks with good access and egress.

On the racing side adequate accommodation should be provided for stable lads, and good stabling for horses. The track itself should be well cambered and should avoid sharp bends and turns. Some courses, e.g. Lingfield, now have all weather tracks.

A good deal of help in the form of grants and loans is being given by the Levy Board to help to bring courses up to satisfactory standards.

Apart from the question of amenities, and probably even more important in attracting good attendances, is the quality of the sport provided. Good prize money attracts good fields which provide the spectacle in racing and a good betting market. Here again the Levy Board helps, as do firms and interests which sponsor individual races.

4. Bodies concerned with racing

A number of bodies are concerned in one way or another with the administration of conduct of the racing industry and in 1968 a Committee of Inquiry set up by the Stewards of the Jockey Club and the Stewards of the National Hunt Committee recommended that these should be reduced in number and that a new Statutory Authority should be set up to control and develop the racing industry. Eventually in 1993 the Jockey Club handed over its role as racing’s governing body to the British Horseracing Board (BHB). In July 2007 the British Horseracing Authority (BHA) was set up which took over regulation from the Jockey Club and governance from the BHB. The main bodies in British horseracing are:

4.1 British Horseracing Authority (BHA)

The BHA has since July 2007 been the body responsible for the regulation of British Horseracing, flat racing, steeple chasing and hurdling. It is responsible for making and administering the Rules of Racing. Its responsibilities include the allocation of fixtures, the issue of licences to racecourses, officials, trainers and jockeys, the conditions of races, disciplinary matters, anti-doping precautions, security measures and equine welfare.

In the case of point-to-point racing the BHA delegated its governance powers to the new Point-to-Point Authority from 1 October 2008 whilst retaining direct regulatory control. The BHA also regulates Arabian Racing; Pony Racing is governed and regulated by the Pony Racing Authority with the overarching support of the BHA.

4.2 Jockey Club

The Jockey Club was set up under Royal Charter and its role is to secure the best interests of horseracing. It was the recognised Turf Authority for flat racing in England, Scotland and Wales and was responsible for making and administering the Rules of Racing, the code under which flat racing is conducted. The responsibilities of the Executive Stewards included the allocation of fixtures, the issue of licences to racecourses, officials, trainers and jockeys, the conditions of races, disciplinary matters, anti-doping precautions and security measures; all these matters are now the responsibility of the BHA.

Jockey Club Racecourses (the Racecourse Holdings Trust until 2007) run 14 racecourses including Aintree, Cheltenham, Epsom and Newmarket. They are also part of Racing UK which is a partner in Turf TV. Jockey Club Estates provides training facilities at Newmarket and Lambourn. From 2008 the Jockey Club will take on responsibility for the National Stud at Newmarket.

4.3 National Hunt Committee

The National Hunt Committee, which was in effect incorporated in the Jockey Club, was the recognised Turf Authority for steeple chasing and hurdle racing until these roles were taken on by the BHA.

4.4 Horserace Betting Levy Board

The Horserace Betting Levy Board (HBLB) established by the Betting Levy Act, 1961 and now operates under the Betting, Gaming and Lotteries Act 1963 (as amended) which consolidated previous betting legislation. It is charged with the duty of assessing and collecting contributions from bookmakers and the Horserace Totalisator Board (the Tote) and applying this money towards:

a. the improvement of breeds of horses;

b. the advancement or encouragement of veterinary science or veterinary education;

c. the improvement of horse racing.

The HBLB currently funds over 50% of the total prize money in racing and provides grants to racecourses to help cover the British Horseracing Authority’s costs of providing integrity services. It has a £51 million capital fund with which it supports the improvement of racecourses by the way of interest-free loans.

4.5 RaceTech (formerly Racecourse Technical Services Ltd)

Racecourse Technical Services Ltd was originally formed in 1946. Since 1998 it has been wholly owned by the Racecourse Association which meets the cost of services supplied. It provides such technical services as the photo finish, starting stalls, the camera patrol, race timing service, the public address system & communications facilities and provision of Outside Broadcast facilities.

4.6 Racecourse Association Ltd

The Racecourse Association Ltd. is a trade association incorporated in 1907 for the purpose of representing racecourses in discussions with the Turf Authorities and with other bodies in the racing industry. All racecourses are required to belong to the Association.

5. Background to Valuation and Method of Valuation

For many years it has been customary to value racecourses having regard to receipts and expenditure (R & E) and in the Sandown Park case Sandown Park Ltd. v Esher U.D.C. and Castle (VO) - (1954 R&IT 351), it was accepted by the parties that this method was appropriate. However, an R & E valuation is not considered to be mandatory and rental evidence in respect of a limited number of racecourses does exist. The case of Garton v Hunter (1969RA11) underlines the fact that all relevant evidence of value is admissible and this is important in the case of racecourses where, in the absence of support by the Horserace Betting Levy Board, many would not be economically viable.

As to the application of receipts and expenditure valuations reference should be made to Rating Manual: section 4 part 2 (https://www.gov.uk/guidance/rating-manual-section-4-valuation-methods/part-2-the-receipts-and-expenditure-method). Complications can arise over Levy Board contributions and care should be taken to distinguish between elements, if any, which are attributable to capital improvements, and not to be included in gross receipts, and amounts for the reduction of entrance fees, augmentation of prize money etc. which could properly be included. Sometimes racecourse accounts are kept in such a way as to separate prize money from other income and expenditure and it is necessary that care should be taken in considering comparisons of percentages of gross receipts. Also, of course, the amount of tenant’s share (where a formal R & E valuation is undertaken and tenant’s share is calculated as a percentage of gross receipts) requires careful consideration, having regard to the elements comprised in the receipts.

Where the valuer is confronted with an R & E valuation of a racecourse producing an unrealistic assessment a satisfactory valuation will often be achieved only as the result of negotiations involving the help of the limited rental evidence available.

Consideration of all available evidence has led to the practice of looking at racecourse assessments in terms of a percentage of gross receipts but it is emphasised that this can be done only after examining in these terms the assessments deduced from rents, or the results of R & E valuations of viable racecourses, or ultimately assessments negotiated by Valuation Officers.

Racing in this country has a history extending over more than four hundred years and long ago became an industry, as well as a sport, in which thousands of people are involved. It enjoys the most distinguished patronage and support and it is probably fair to argue that the factors influencing the mind of an occupier of a racecourse are often not wholly economic.

6. Valuation by Percentage of Gross Receipts

6.1 Racecourse Incomes

Where a valuation is carried out on the basis of a percentage of Gross Receipts care should be taken that only normal racecourse incomes are included in the gross receipts. These will be race day incomes including admissions, race cards, advertising, royalties and payments from satellite and bookmakers’ systems, car parking, bookmakers’ badges, catering, betting shop income, abandonment payments; fixed income from racing including membership, subscriptions, media income, advertising, catering and box rentals; other operating income including caravan sites and rallies, room hire fees for function rooms and other short-term ”letting” fees.

6.2 Non-racecourse Facilities

Where there is an hotel, golf course or similar facility which is part of the racecourse hereditament where the income is not dependent on racing this facility should be valued by the appropriate method for that type of hereditament bearing in mind that some of the income streams (such as catering) may be shown together with the racecourse income.

6.3 Licences and Concessions

Where the valuation is carried out on the basis of a percentage of gross receipts and a concession remains part of the hereditament, rental or licence payments should be considered separately from the trading turnover. Concession income should be valued at a percentage within the range of 25% – 50% depending on the level of the occupier’s expenditure. This will be at the higher end where receipts involve the landlord in minimal expense, and at the lower end where the rateable occupier is responsible for all repairing liabilities, provision of services or significant non-rateable items. The resultant figure should then be added to the rateable value calculated on the main part of the hereditament.

7. Totalisators

Totalisators are separately assessed see Rating Manual: section 6 part 3 - section 1080. Care should be exercised to exclude elements of receipts for totalisator rents from racecourse accounts for the purposes of valuation or analysis.

Appendix 1 : List of Racecourses

List of Racecourses * Aintree – Jump

Ascot - Mixed

Bangor on Dee - Jump

Bath - Flat

Beverley - Flat

Brighton - Flat

Carlisle - Mixed

Cartmel - Jump

Catterick Bridge - Mixed

Cheltenham - Jump

Chepstow - Mixed

Chester - Flat

Doncaster - Mixed

Epsom Downs - Flat

Exeter - Jump

Fakenham - Jump

Ffos Las – Mixed

Folkestone - Mixed

Fontwell Park - Jump

Goodwood - Flat

Great Leighs – Flat All Weather

Great Yarmouth - Flat

Haydock Park - Mixed

Hereford - Jump

Hexham - Jump

Huntingdon - Jump

Kempton Park – Mixed All Weather

Leicester - Mixed

Lingfield Park – Mixed All Weather

Ludlow - Jump

Market Rasen - Jump

Newbury - Mixed

Newcastle - Mixed

Newmarket – July Course - Flat

Newmarket – Rowley Mile - Flat

Newton Abbott - Jump

Nottingham - Flat

Plumpton - Jump

Pontefract - Flat

Redcar - Flat

Ripon - Flat

Salisbury - Flat

Sandown Park - Mixed

Sedgefield - Jump

Southwell - Mixed All Weather

Stratford upon Avon - Jump

Taunton - Jump

Thirsk - Flat

Towcester - Jump

Uttoxeter -Jump

Warwick - Mixed

Wetherby - Jump

Wincanton - Jump

Windsor - Flat

Wolverhampton – Flat All Weather

Worcester - Jump

York - Flat

Appendix 2 : Factors affecting profitability

Horse Racecourses Factors affecting profitability

Factors that may affect the profitability of Racecourses and therefore the rental value.

Factors likely to increase profitability

good quality racing

few abandoned days racing

the majority of racing days in Spring, Summer or Autumn rather than Winter

a greater proportion of Flat racing days rather than National Hunt

a large number of racing days on Friday, Saturdays or Mondays especially Bank Holidays

a few days racing only in a year

a relatively high proportion of adjusted gross receipts attributable to net income from non-racing activities and including catering

regularly featured on the television and radio

modern buildings with hospitality suites, good stabling, secure car parking and fully utilised

Factors likely to reduce profitability

poor quality racing

frequent abandoned days racing

a relatively large number of racing days in January and February

a greater proportion of National Hunt days rather than Flat racing; jump meetings being more costly to operate

a large number of racing days mid week, evening meetings, or Sunday meetings

many days racing in a year

a relatively small proportion of adjusted gross receipts attributable to net income from non-racing activities and catering

rarely covered by television and radio

old buildings under utilised in poor condition, poor stabling and car parking subject to vandalism

Many of the above factors are interconnected and the quality of the racing may also tend to over-rule some of the other factors.