Nick Rust Admits Mistakes Made in Face of Challenges

British Horseracing Authority chief executive Nick Rust has admitted the body has made mistakes as British racing's regulator, a remit he said has been "challenged on multiple fronts."

Rust also called on the sport not to "retreat into bunkers" in the face of the challenges to its income caused by betting shop closures.

He was speaking in the foreword to the BHA's annual report and accounts for 2018, which were published Sept. 26.

Looking back at what he described as a "mixed picture" in 2018, Rust said the challenges to the BHA had come "from within the sport, which sometimes feels the BHA is too remote from the sport it serves, and from outside it, by those who feel the BHA is too close to racing's stakeholders to be sufficiently robust and impartial." 

"There is a balance to be struck, clearly, and this balance is best achieved, quite simply, by doing what is right, using a strong evidence base to underpin our regulation, bringing people with us whenever we can, while also being mindful that the burden of regulation remains proportionate, manageable, and makes a tangible positive difference," Rust said.

"I freely admit that, during the past 12-18 months, we have not always got this right," he added. "Sometimes we have moved too fast, sometimes not fast enough. We have worked hard to learn from this, and I restate our commitment to working with others in our sport, understanding their challenges and harnessing their expertise, to make sustained, continuous improvements."

A survey carried out last year for the BHA by ComRes, a market research consultancy headquartered in London, cited that 79% of stakeholders believed the BHA performed well as the governing and regulatory body of British racing, down from 82% in 2017.

One area Rust specifically mentioned in terms of shortcomings was the introduction of the sport's new stewarding model.

"I know we could have communicated the changes better at the outset, but people from across the sport are now working with us to make this a success," he said.

Looking ahead, Rust called on the sport to work together in the face of pressure on income caused by betting shop closures following the government's crackdown on fixed-odds betting terminals, which he said was "certain to have knock-on financial implications for racing, which need to be appropriately forecast and mitigated."

"The early months of 2019 gave an indication of the challenges to come, with considerable debate around prize-money levels, followed by the sobering news that the 2018-19 levy yield was lower than forecast," he added. "The sport must avoid the temptation to retreat into bunkers when the going gets tough, instead working together to confront this shared financial challenge.

"We must all adapt where necessary, while becoming more creative and innovative in our commercial thinking."

The report also featured a first statement from new chair Annamarie Phelps.

Phelps, who joined the BHA in June, reiterated a number of themes from her speech to the Racehorse Owners Association annual meeting in July, describing changing public views on animal welfare as "a profound ethical challenge," identifying women jockeys as "a huge asset" to the sport, and calling for "unity, not division."

She also said the sport should reach out to new audiences among the public.

"I want the BHA to play its part in building the profile of racing and championing innovation to attract new customers," Phelps said. "I don't believe in change for the sake of it, but where it can help move the sport and industry to be even more successful, financially sustainable, and future-proofed, we will be willing to back it."

Phelps also said the sport should widen its contacts among parliamentarians.

"It's important we branch out beyond our core support group to promote the social and economic benefits of our sport," she said. "We're much more likely to achieve our objectives with government if we can widen our circle of friends and reassure any doubters."

The BHA said its financial performance in 2018 was better than budgeted, recording a surplus of £132,000 compared to £341,000 in 2017 and a deficit of £175,000 in 2016.

The BHA's income of £34.4 million—more than 90% of which comes from charges paid by racecourses and owners—was 3.5% higher than the previous year.

The accounts also revealed that Rust's remuneration in 2018 totaled £394,000, up from £380,000 in 2017.