BC Losing Betting Race to Kentucky Derby
Nov 11, 2014 0:42:55 GMT -5
Post by Jon on Nov 11, 2014 0:42:55 GMT -5
BC nees to go back to 8-9 races and 1 day!
Breeders’ Cup Losing Betting Race to Kentucky Derby
by Ray Paulick
According to figures released immediately after the Oct. 31-Nov. 1 Breeders Cup, a total of $128,215,643 was wagered on the 13 Breeders’ Cup races. That’s down from the $139,418,666 wagered on 14 races in 2013 and the lowest total handle since 2005, when the Breeders’ Cup was held at Belmont Park on one afternoon and $116,434,571 was bet on eight races. (Note: 2014 figures do not include all non-commingled wagers, so that figure could grow marginally in the coming weeks.)
By contrast, annual U.S. wagering on all Thoroughbred racing has fallen by 25 percent over the last decade, from $14.6 billion in 2005 to $10.9 billion in 2013. At least Breeders’ Cup is doing better than the national trend.
However, the sport’s biggest one-day event, the Kentucky Derby, has shown significant growth in 10 years. The 2014 Derby Day handle of $186.6 million is 20 percent higher than in 2005, when Churchill Downs reported $155.8 million in wagers on the card (wagering on the Derby itself grew from $104 million to $129.2 million).
For most of the 1990s, more money was wagered on the Breeders’ Cup than on the Kentucky Derby day card. Both programs hit $100 million in total handle for the first time in 2000 ($101,455,291 for the Derby and $101,283,427 for Breeders’ Cup), but since then the springtime classic has steadily pulled ahead of the autumn championship.
Handle is important to the Breeders’ Cup. Here’s why.
According to the latest Breeders’ Cup IRS Form 990 for 2012, $15.3 million of the organization’s annual revenue of $40.9 million came from “simulcast fees and host track contributions.” That’s more than the $14.3 million in revenue from stallion and foal nominations, and the $8.3 million in entry fees.
It’s hard to make the case that stallion and foal nominations are going to grow, and the only way to increase entry fee revenue is to charge more to owners to run their horses.
This year’s Breeders’ Cup had the largest average field size (12.2 starters per race for 13 races) since 2006, when the average field size for eight races was 13 starters. Weather in Southern California on Oct. 31-Nov. 1 was perfect, there was no storm to blame on the East Coast as there was in 2012, when Hurricane Sandy devastated several states and heavily impacted all kinds of commerce, including pari-mutuel wagering.
This year’s Breeders’ Cup Classic was a very compelling race with the unbeaten Shared Belief taking on Kentucky Derby and Preakness winner California Chrome for the first time.
Everything seemed to be in alignment for a huge day.
Yet total wagering (with one less Breeders’ Cup race than in 2013) declined, as did the average bet per race and the average number of dollars in bets generated by each of the 159 starters.
The event itself is becoming more attractive to patrons who desire an upscale experience. Food, fashion and entertainment play a bigger role at the Breeders’ Cup than ever before. Ticket prices have gone up to reflect that.
Still, pari-mutuel handle on a two-day, 13-race Breeders’ Cup is lower than it was in 2006 on a one-day, eight-race event. Something about that doesn’t seem right. If the Kentucky Derby can grow by 20 percent over the same time frame, shouldn’t we expect the Breeders’ Cup to keep pace?
Breeders’ Cup Losing Betting Race to Kentucky Derby
by Ray Paulick
According to figures released immediately after the Oct. 31-Nov. 1 Breeders Cup, a total of $128,215,643 was wagered on the 13 Breeders’ Cup races. That’s down from the $139,418,666 wagered on 14 races in 2013 and the lowest total handle since 2005, when the Breeders’ Cup was held at Belmont Park on one afternoon and $116,434,571 was bet on eight races. (Note: 2014 figures do not include all non-commingled wagers, so that figure could grow marginally in the coming weeks.)
By contrast, annual U.S. wagering on all Thoroughbred racing has fallen by 25 percent over the last decade, from $14.6 billion in 2005 to $10.9 billion in 2013. At least Breeders’ Cup is doing better than the national trend.
However, the sport’s biggest one-day event, the Kentucky Derby, has shown significant growth in 10 years. The 2014 Derby Day handle of $186.6 million is 20 percent higher than in 2005, when Churchill Downs reported $155.8 million in wagers on the card (wagering on the Derby itself grew from $104 million to $129.2 million).
For most of the 1990s, more money was wagered on the Breeders’ Cup than on the Kentucky Derby day card. Both programs hit $100 million in total handle for the first time in 2000 ($101,455,291 for the Derby and $101,283,427 for Breeders’ Cup), but since then the springtime classic has steadily pulled ahead of the autumn championship.
Handle is important to the Breeders’ Cup. Here’s why.
According to the latest Breeders’ Cup IRS Form 990 for 2012, $15.3 million of the organization’s annual revenue of $40.9 million came from “simulcast fees and host track contributions.” That’s more than the $14.3 million in revenue from stallion and foal nominations, and the $8.3 million in entry fees.
It’s hard to make the case that stallion and foal nominations are going to grow, and the only way to increase entry fee revenue is to charge more to owners to run their horses.
This year’s Breeders’ Cup had the largest average field size (12.2 starters per race for 13 races) since 2006, when the average field size for eight races was 13 starters. Weather in Southern California on Oct. 31-Nov. 1 was perfect, there was no storm to blame on the East Coast as there was in 2012, when Hurricane Sandy devastated several states and heavily impacted all kinds of commerce, including pari-mutuel wagering.
This year’s Breeders’ Cup Classic was a very compelling race with the unbeaten Shared Belief taking on Kentucky Derby and Preakness winner California Chrome for the first time.
Everything seemed to be in alignment for a huge day.
Yet total wagering (with one less Breeders’ Cup race than in 2013) declined, as did the average bet per race and the average number of dollars in bets generated by each of the 159 starters.
The event itself is becoming more attractive to patrons who desire an upscale experience. Food, fashion and entertainment play a bigger role at the Breeders’ Cup than ever before. Ticket prices have gone up to reflect that.
Still, pari-mutuel handle on a two-day, 13-race Breeders’ Cup is lower than it was in 2006 on a one-day, eight-race event. Something about that doesn’t seem right. If the Kentucky Derby can grow by 20 percent over the same time frame, shouldn’t we expect the Breeders’ Cup to keep pace?