The following interview appeared on January 14^th, 2023 in Czech language on the Fitmin & Turf Magazín website Fitmin & TURF Magazín - S prezidentem Jockey Clubu Josefem Bečvářem nejen o financování českých dostihů.

In the interview below, Miloslav Vlček poses a series of questions to Josef Bečvář, who has been president of the Jockey Club since 2019, about the state of Czech racing, especially about its financial situation, after the Covid crisis impacted Czech horseracing very seriously in 2020 and 2021.

The editor-in-chief of the Fitmin & Turf Magazín website, Miloslav Vlček, has since a young age been writing about Czech horseracing and editing first TURF Magazín, a printed magazine, and then the Fitmin & Turf website.  He has studied and written in particular about Thoroughbred breeding in the Czech Republic.

General Josef Bečvář is very distinguished retired Czech army officer who served as the Chief of the General Staff of the Armed Forces of the Czech Republic from 2015 to 2018. He then retired, and took on new responsibilities as president of Glomex Military Supplies, a supplier of military technology equipment. He became president of the Jockey Club of the Czech Republic late in 2019, shortly before the Covid 19 pandemic broke out.

Josef Bečvář, president of the Jockey Club of the Czech Republic answers questions about the finances of Czech horseracing, and other issues

Josef Bečvář, the current president of the Jockey Club of the Czech Republic, has not had an easy time. Shortly after he took over the leading post in Czech horseracing he had to face a crisis such as none of his predecessors had ever had to deal with. There was a complete shutdown of Czech horseracing due to the Covid-19 pandemic for periods of time that were very important for the business of horseracing. The measures had a fundamental impact on the 2020 and 2021 seasons. Thank goodness, that is now in the past, but the pandemic has again shone a light on the deep problems in the finances and in the future of Czech horseracing. This was one of the main themes discussed with the president of the Jockey Club.  

In December 2022, according to a published report, the Council of the Jockey Club, had to deal, among other things, with some gaps in the fixture list!

Yes, that was a big issue. In 2022 there were 51 race days, but in the fixture list for 2023 there are only 48. Karlovy Vary, Most and Prague, category A racecourses, each announced one race day fewer. It has to be said that the reasons provided by the private racecourse owners were to do with finance. In addition, the newly-elected mayor of the community has informed me in writing that the racecourse at Světlá Hora is currently not planning to organise a race meeting.

The greatest problem is that cancellation of the September meeting at Karlovy Vary would mean that there is no date for the Winter Queen Stakes [a top race for 2-y-os]. This could be resolved by offering a financial contribution to one of the racecourses. However, the members of the Council of the Jockey Club all agreed that we should not break the Council’s earlier decision not to support racecourses from the budget of the Jockey Club. We really do not want to break that decision, and we are not in a position to break it due to the current budget situation. We are still looking for a way to support and to organize one of the key races of the season, which is firmly anchored in the Breeding Programme of the Jockey Club of the Czech Republic.

As far as I know, a minimum of 50 race days is one of the conditions in the agreement with Tipsport [the leading Czech-based betting company]. How are you going to deal with that?

It is true that our agreement with Tipsport stipulates a specific number of races, which we are currently not covering. The agreement between BPA/Tipsport and the Jockey Club does not include the dates or the numbers for Pardubice racecourse, which set up an agreement of its own in 2021. We will be discussing this problem with the representatives of Tipsport, our main partner, and we believe that everything will be agreed for this season in a spirit that is positive for Czech horseracing. However, we are completely dependent on the benevolence of the other party. An agreement is an agreement, after all. 

This is a warning for us that we must not deflect the pendulum, and we must try to be a steady partner. Let us talk about the way the state funding that we receive favours steeplechasing at the expense of flat racing. We adjusted the original 1:1 funding ratio, which seemed unfair to some of the racecourses, and that was a mistake. Even at the time it was clear to me that there would be a reaction, and now we are facing the consequences. If we look for the causes, I think the basic problem lies in the present situation in the Council of the Jockey Club, which is not well constituted. Steeplechasing is well represented, but there is no association to defend the interests of flat racing. I do not want to say anything against steeplechasing, which has a great tradition here, but flat racing comes first as far as tests of performance are concerned. 

The key problem in present-day horseracing is finance. For a number of years, it has been clear that the ability of the racecourses to get sponsorship has hit a ceiling, and attention has now turned to public and state sources, and to money from betting. The Jockey Club receives state funding every year, as you have already mentioned. Is there any chance that it could be raised?

We have been negotiating for some months with the Ministry of Agriculture specifically about raising the amounts with which the ministry supports horseracing within the framework of national funding. We have submitted all the details that the Ministry of Agriculture has required from us, and we have explained how expensive things are, and all the things that are in the funding package, and what the package will be used for, and we are in contact with the relevant department at the Ministry of Agriculture. I do not want to mention specific sums of money that we are applying for, because we are surely not going to receive all the amounts that we have in mind. However, the current sum of 6.8 million crowns [annually] has been unchanged since at least 2008, and we will be very pleased with any increase that we get. We would like to have some funding, for example, so that we could in case of need rent a racecourse and handle the financial aspects of the races ourselves. For example, so that we could in cases like the Winter Queen Stakes be able to say that the Jockey Club is able to pay for organising such a race. However, when we look at the state of public finances, I am not under any great illusion that we will be successful and that the grant will be any higher.

Let us look at another source of funding, which is fairly new for Czech racing - the agreement with Tipsport that you have already mentioned.

As regards Tipsport, we have started working on a new agreement. By the end of June we have to have an upgrade of the present agreement, and negotiations are currently taking place. The truth is that even in the Council of the Jockey Club there is a whole range of different views, some of which are not completely realistic. Tipsport is not under any obligation to collaborate with us – it is up to them. Tipsport works with other sports, and when they came to us in 2021, we managed to set up an agreement to collaborate. They told us that they were entering a sport that they had not been involved in before, and that they would be investigating the reality of betting on horseracing. By the way, it should be added that this agreement does not just bring in money, it also provides an opportunity to get into the business of betting on horse races. In 2022, according to our information, the betting market here exceeded 80 million crowns, and we hope that this amount will continue to grow with further collaboration. A part of this agreement with our main partner is financial, and another part is more in the form of advertising, paid for by our partner. We consider that this is also very important, and we want to continue to work on raising the awareness of Czech society about Czech horseracing. The Jockey Club passes on most of the income from this agreement to the racecourses, according to a formula. From the rest of the income, it pays for providing a video signal for the horseracing commission, and for streaming and recordings. In reality, unfortunately, no funding is left over for the Jockey Club, and everything is used up in the ways that I have mentioned. I believe that the amounts will rise, but we should not expect any dizzying sums. It is just a pity that we have needlessly been weakened by being divided due to Pardubice’s decision to go its own way. If we had been together, I think that the financial outcome could have been considerably more interesting.

How do you personally see the future funding of Czech horseracing?

It is clear that everything begins and ends with finances. It is also a fact that, in some countries, the horseracing authorities do not get involved in the finances of horseracing. This has to be said. Here, however, a blind eye cannot be turned, because that could get us into a situation where there would no racing, because the racecourses could say that there is no money for it.

The fact is that, with the arrival of Tipsport in 2020, the Jockey Club provided our racecourses with new income and, of course, with a strong company to organise betting on horseracing itself. Nevertheless, there is a certain tension among the racecourses, which seems to be growing in connection with the current economic and social situation. The costs are rising for all of us, and new sponsors will be even harder to find. It is a long time since the Jockey Club has been able to implement a rise in the level of prizemoney for our racing. It is not surprising that more and more owners and their horses are competing at racecourses abroad, where the economic environment is much more interesting, and where there are in some cases higher-quality racecourses.

We also have other weak points. At a number of racecourses there is a lack of facilities where families with children can have a nice day out. We need to pay attention to the quality of refreshments and services. It often happens that most of the ordinary people in and near the town are not aware that there will be a race meeting taking place. This needs to be changed, and it would be enough to learn from countries where racing is better established.

At this point, I should express my thanks to all organisers of horseracing for their efforts and commitment. It is very important to speak with them about the future of their racecourse, to unify some approaches, and to come together to attract the general public, and to talk about looking for new sources of funding for horseracing. I also want to thank all faithful long-term supporters and sponsors of our races for the fact that we are still racing here in the Czech Republic,

And how do you see the role in this of the Jockey Club?

To support betting, and to create synergies between the Ministry of Agriculture and the Jockey Club, so that we can get more money for horseracing. To collaborate more closely with those racecourses that want to help each other and fight for their cause. Together.

However, the Jockey Club should not use its relatively modest budget to partially fund races. Yes, the Jockey Club carries out various small activities to raise its income and to help racing, which is its mission. Apart from the agreement with Tipsport, I  would mention for example the streaming of our races, which we distribute abroad. Marek Šimák does a lot of work on that. This activity brings in more than CZK 200 000 per year.

What else can we do? I think we still do not take fully into account that it is of fundamental importance to behave well and respectfully towards sponsors. I have the feeling that many people just take them for granted, and I would like to see a much more welcoming attitude toward them from everyone in racing. It is a shortcoming that we have. We must not forget that horseracing is part of a market, and sponsors can decide to go somewhere else. 

Let us keep our feet on the ground, let us behave correctly, and let us also admit that our environment is not completely healthy. We are not used to facing criticism. I cannot imagine someone saying on television, like when talking about football or ice hockey, that such and such a jockey should not be on such and such a horse, and that there should be some other rider. Or asking why a trainer ran his horse in a certain race. We are not used to that. Then we act abruptly, and that is not good for our sport.

 
In the minutes of a meeting of the Council there was a mention of your negotiations with PMU. Is this French pool betting office going to re-enter Czech horseracing?

It is true that I spoke after the Prix de l’Arc de Triomphe with the vice-president of France Galop, and I said that we would like to collaborate with them again. He was not against it, but it certainly will not be in 2023. He told me to write to him in the spring about the races that we would like to offer. We compared them in terms of the prize money in Germany. He said that the start must be orderly, so that the races would start at the times that were allotted. This would be fine, but it will be quite a complicated matter.

How are the preparations going for the Gala Evening?

The Council has been dealing with this, too. We have discussed how to finish the season, and whether or not we should organise a Gala Evening. It did not take place in the Covid years. The last event was in Prostějov in 2020. The Council agreed that it should continue to take place, and that each year should close with an event of this kind. However, it is not easy. We did a market survey on where we might hold  it, and the prices are now rather high for our situation. It was decided that we should reduce the whole budget allotted for the event to not much more than one half of what we paid for previous events. The Gala Evening will be in Prague on Saturday, February 25th at the Olšanka Hotel. This will be a single event, at which the champions will receive their awards and the results of the opinion polls will be announced. For the future, it would be good to consider separating these ceremonies, maybe presenting the awards for the champions at the end of our season, and to present the other prizes at some social event. The Council of the Jockey Club has decided that for this year there will be just the one event.

The Council of the Jockey Club discussed the Jockey Club Foundation Fund, and everyone agreed that it is a good thing that it exists. Last year, sadly, the cases of Ivan Kub and Tamara Křídlová [who both suffered life-changing injuries while working with horses in their care] showed how important it is to have such a fund. I would like to take this opportunity to thank again everyone who contributed to it.

The Council has been dealing with improving the quality of the streaming, as called for by Tipsport’s chief, Petr Knybel, at the press conference before the Velka Pardubicka, when he was  talking about the possibility of raising Tipsport’s contribution!

As far as streaming is concerned, we are carrying out a market survey to see if we can do it differently and, perhaps, more cheaply. Nobody is saying that it is being done badly, but we are looking for the best way. However, I personally doubt whether we can bring the price down below the present level. And it is not just a matter of money. In my opinion, it needs to be done by people with experience, who can do it properly. Yes, we will negotiate  with Tipsport about this item in our agreement. It is all a matter of money.

This is somehow connected with the transmissions on Czech Television. Our agreement with Tipsport stipulates 8 direct transmissions per year of race days on Czech Television, which costs us quite a lot of money, about 1 million crowns per year. It is a question whether, in the days of social networks and on-line transmissions on the internet, direct television transmissions have the same impact as before. That is another question that we are discussing with Tipsport.

What about breeder’s prizes?

On  February 3^rd last year, we agreed on a new methodology for distributing these prizes, basically by having this money set into the budget of the Jockey Club. Of course, certain criteria will have to be met. We hope that this will be a long-term criterion. As far as breeding is concerned, we are worried about what has been happening for example at Napajedla [the Napajedla stud farm in Moravia is historically the most famous in the Czech Republic, and continued to be our biggest stud farm for racehorses after the Changes in 1989. However, the post-1989 period has been quite problematic for Napajedla and for Czech racehorse breeding in general]. We do not know what the situation is there. I want to contact the owner, and to find out exactly what is happening, and what we can expect in the future. However, we believe that clear and transparent rules on breeder’s and owner’s prizes will at least to some extent help our domestic breeders and owners of horses of Czech origin.

Another problem that you have been dealing with concerns renewing and replacing the information system of the Jockey Club. That is certainly not going to be a simple or cheap matter...

This question has been under discussion in the Council for more than a year, and the truth is that a warning went out several years ago about the state of our information system. I am sure that the support for riders, trainers and owners provided by the information system is very good, and the accounts centre functions whether you are running in the Czech Republic or abroad. I personally think that at least a part of our information should be gated off with limited access, because we provide some information that is not for general use. But everything is standing on software that is almost 20 years old, and only one person, Tomáš Hora, administrates it. It is a worrisome state of affairs. Unfortunately, I am unable to convince  some members of the Council of the Jockey Club that it is already high time to take some action. I do understand that it would cost a great deal, but a situation threatens to arise when it all crashes, and then there will be a huge problem. At the Council of the Jockey Club, this is an evergreen topic. Last year, we allocated 1 million crowns, but none of it was drawn on, as we had not made the necessary preparations. I raise a finger in warning: if our system stops functioning it will cause enormous problems for all of us. It is not just a matter of dealing with payments, but also of disruption of all the data that we have about Czech horseracing.

Apart from funding, the next biggest problem for Czech racing is recruiting staff. This is a particular problem in the case of work riders  and race riders. Are there any ideas on how to deal with this?

It is a big problem, and I admit that I do not know what to do about it. On the Council, we have at least approved an increase in riders’ fees, but that will not solve the problem. The question of recruiting enough staff is currently being faced in almost all sectors in the Czech Republic.

When I was elected to the office of president of the Jockey Club of the Czech Republic, one of the main tasks in my agenda was to create a concept for the future functions and activities of the Jockey Club. After agreeing and appointing the team leaders for each aspect of the concept, Covid arrived and brought with it a series of non-standard, unknown situations and special solutions. A group of people was set up, and thanks to them we got through those times fairly well. We did have to cancel some meetings, but all the classic races were run, and few people can imagine how much work lay behind that. I have good memories of how the people around me really helped to make sure that things were not allowed to collapse.

The whole of 2020 took quite a lot of effort, and there was no time for conceptual planning. There was not even time and space for the meetings and discussions that such a project must have. Not to mention the wishes of the horseracing community as a whole for measures of that kind. The concept should include an overall staffing policy, with attention given to the introduction of new faces into the world of horseracing.

Nevertheless, I think that a number of steps have been taken that are of a distinctly conceptual character. This year, in connection with our activities that I have been speaking about, several proposals will be put forward at meetings of the Council of the Jockey Club in the course of the season about the business and organisational processes in the work of the Jockey Club. We also have some volunteers available who are helping us in these activities and who want to continue with it.

To capture the interest of the potential workforce for horseracing, which is in such short supply, it is essential to offer interesting and attractive conditions. Otherwise we will not be successful against the competition in the employment market. The fact is that there are very limited numbers of people in the professional associations, which ought to be platforms where viewpoints are refined, experience is handed down and solutions are sought. However, there is no interest in this. Younger people are not presenting themselves with new colleagues and with the desire to get involved. Everywhere there are only old boys. Each president writes a chapter and wants to write something in capital letters. I have at least tried to write the name of Tipsport.

In December, your mandate comes to an end. Will you again be a candidate for the post of  president?

That is an open question at the present time. For me personally, the most important thing in the coming months is to concentrate on finalizing some ongoing tasks, such as a new, hopefully slightly more favourable agreement with Tipsport, negotiations with the Ministry of Agriculture on the amount of funding that we will receive in future, agreements with the racecourses to ensure that racing will take place, etc. The decision on whether I remain in the post depends on proposals made by the Czech Association of Thoroughbred Breeders and Racehorse owners (ČSCHPMDK), and the Czech Steeplechase Association (ČASCH) and other members of the Council of the Jockey Club of  the Czech Republic [who will have votes in the presidential election], and also on matters around these proposals. And, last but not least, I will speak with the racing community, because their views are and will remain very important for me.

Miloslav Vlček