YOUR ENTRY FEES & PRIZE MONIES EXPLAINED
March 2020 – AME
The cost of competing at graded/registered shows is continually rising, and our sport is becoming increasingly unaffordable for many people, especially when, in addition to the entry fees, competitors also often have to pay for trucking the horse to shows, feeding of grooms, etc.
For the very short time spent in the competition arena, sometimes just 4 or 5 minutes over 2 competitions, our discipline must be the most expensive competition sport out there!
Show holding bodies (SHB) try to show a breakdown of the costs involved in an entry fee to be transparent with their customers as to why the prize money often seems so low compared to the amount of money received from entry fees.
Firstly, only a couple of venues are registered for VAT (e.g., KPC & Burlington Stables), whilst most are not. This can make a significant additional amount in cost. For example, a venue that must pay VAT and charges R375 for an entry fee nets just under R320 after taking off 15% and before all the levies.
Levies are charged by SASJ at R65 per entry for Open horses and R45 for horses competing at 1.25m and down. This adds up to a whopping R130 per horse per day! Now, SAEF requires an additional R11.50 payment per horse per day for dope testing (previously a cost borne by SASJ or the Show Holding Body).
There is an EDS levy of R5.13 per entry to be deducted from the total entry fee, as well as a ground levy, usually between R50 – R70 per class. This ground levy goes to the venue to assist with costs incurred during the running of a show, such as staff, arena and grounds preparation, maintenance and cleanup, jump equipment maintenance and repairs, electricity, secretarial services, etc. However, this amount is never enough to cover any capital costs of the venue.
Officials need to be paid. If the SHB offers a complete judges’ box, there should be a judge, an announcer, a secretary, and two timekeepers in the box, as well as a marshall to assist riders in getting into the arena timeously. The fee for this is usually R20 – R30 per entry, depending on how many officials are booked by the SHB. At national and FEI shows, there are additional judges, stewards, etc., which means this cost will be higher.
Some venues charge a course designer or ambulance/medics levy, while other SHBs include these fees in their ground levy. An ambulance service or paramedics set the SHB back between R1800 – R2500 per day. Some events may require a JOC certificate, which costs around R6000 per show.
When one deducts all these levies from the total entry fee, usually the net entry fee is only between R125 – R150 per class. For unsponsored shows, the SHB must give 40% of this net amount out in prize money, while at sponsored events, the minimum amount is 60%. Most venues put the additional revenue from the difference between the higher R65 and the lower R45 SASJ levies charged for different heights into the prize money pot, although they can opt to charge R20 less for the lower height categories instead.
So, around R50 from each entry fee paid fills the prize money pot, which is divided between the 25% of horses placed in the competition. The other R75 – R100 (60% of net entry fee at unsponsored shows) is supposedly the SHB “profit” per entry. In reality, this is not the case, as venues pay huge amounts of money to create their venue, arena surfaces, equipment, facilities, etc. It takes a very long time to recoup this financial outlay.
A club such as Kyalami Park Club (KPC) is a non-profit organisation with large overheads. Big grounds are expensive to maintain (e.g., tractors, mowers, rakes, watering, grass cutting, staff expenses, rubbish and sewerage, security, fencing, painting, etc.). All “profits” allow the club to make improvements to its facilities, show equipment, and venue. While some venues choose to give away 50% or more in their normal show prize giving, if KPC sticks to the 40%, the club accumulates a little more funds to improve their offerings to members going forward.
Refund Policy
When it comes to refunds, the following normally applies:
If the show is too full to accept your entry, even if this happens before the advertised closing date for entering, the venue must refund your entire entry fee.
If the show or part of it is cancelled due to bad weather or other factors making it dangerous to continue, the judge has the final decision. The SHB can either carry your entry forward to another show they are hosting or offer a refund.
Most venues follow the SASJ allowance of refunding 80% of the entry fee in this case, due to doubled secretarial work (refunds to be paid, show accounts to be balanced, prize monies recalculated, perishables wasted in catering, etc.).
Venues like KPC, which host many events each month, need to close books on each show promptly and thus do not offer to “postpone” your entry. Losses occur when riders first ask for their entry to be carried forward and then change their minds just before the next show, when the venue may already have completed their new programs.
The Role of Sponsorship
Sponsorship plays a huge role in enabling venues to present major shows and enhance the competition experience for both competitors and visitors. That’s why it’s essential for competitors to show interest in sponsor products and to thank sponsors for their generous contributions.
Sponsors who invest in our sport expect a return on their investment. The more spectators, social media coverage, product sales, and development opportunities offered, the more likely we are to attract bigger sponsorships in the future. This will result in the growth and popularity of our discipline, which, in turn, will bring more sponsorships to events and allow for better prize monies to be paid out.
The authorities managing our sport should look for ways to encourage riders at all levels and make our discipline more affordable—not just at the entry levels, but also for riders competing at the top levels who serve as the “shop window” and attraction at major events. Riders who compete with multiple horses at a high level bear huge costs, which are usually not covered by prize winnings. This may be why many riders are opting for smaller, less regulated shows, where costs are lower, and the fun aspect of the sport is encouraged.