Tony McDonough meets RICHARD THOMAS, chief executive of the Chester Race Company

MANY of the country’s top racecourses now belong to larger corporate groups, but it is perhaps fitting that the oldest of them all – Chester – retains its independence.

This, says Richard Thomas, chief executive of the Chester Race Company, is a strength, as it allows him and his management team the freedom to make decisions and act upon them more quickly.

“I believe independent courses are in a stronger position because they have much greater flexibility,” said the 37-year-old. “Courses that are part of the bigger groups are more constrained over what they can spend.”

And Thomas and his team certainly make use of that flexibility; they have spent the last few years ensuring the business is much more than just a racecourse.

Thomas took the helm in August, 2000, and at that time the company was turning over around £400,000 a year. Today, that figure stands at more than £13m, with a profit fast approaching £3m.

The Chester Race Company was established in 1892, but it wasn’t until 2002 that the company’s growth really started to take off. In that year, it acquired Bangor-on-Dee – a jump racing course in North Wales.

The following year, it took on the franchise for the Express Holiday Inn Hotel at Chester Racecourse.

The latest phase of its expansion is well under way; a multi-million pound revamp of the course has included £1m spent improving the paddock facilities, a £1m upgrade and extension of the County and Tattersalls stands, and a £2m investment in the Old Port Stable development.

A swish new restaurant has also just opened at the course – just in time for its biggest race meeting of the year in May.

The eaterie – 1539 – is named after the year racing first took place and is a joint venture with Heathcotes Outside.

Said Thomas: “We are in a fantastic location and believe the racecourse really lends itself to a restaurant of this calibre. We are proud to have been able to turn this project around so quickly.

“We are providing something which is really unique here for both race-goers and the dining public of the North West.

What makes 1539 so special is the fact that it will be open all year and not just on race days.

“This is a big investment for the racecourse, but we believe that it will provide significant future growth for the business. It is important we have a diversity to our income streams.”

Horse racing, of course, is the company’s raison d’etre and in this area, too, there has been significant growth, with the number of annual meetings at Chester – also known as the Roodee – growing from just three to 14 over the past decade.

Chester’s racing is exclusively on the flat (the nags don’t jump fences) and is a Group 1 course, which means it regularly attracts top-class horses and jockeys. Another advantage it has over other courses it that it is situated within the city centre.

“Our fixture list is a very good one,” said Thomas. “Our biggest meetings are May, where we are averaging crowds of around 20,000 a day, and July.

“The May meeting is our showcase event of the year and that has a very strong corporate market.”

Thomas, who is married with two children, was born in Wrexham but did most of his growing up across the border in Cheshire. He joined the Royal Marines straight from school and spent five years as a military man. His career in the racing industry began shortly after he left.

He added: “I knew very little about racing, but I applied for and got the job as operations manager at Aintree racecourse. I spent two years there and then moved to another course, Huntingdon, to be its general manager.”

Thomas later took the helm at Haydock racecourse and eventually landed at Chester almost eight years ago.

The way forward, he believes, is to see the job as being responsible for a leisure operation rather than just a racecourse.

But, in common with all UK racecourses, a significant part of Chester’s income comes from two sources – the Bookmakers’ Levy and TV rights.

In 2004, Chester joined forces with a number of other top courses across the country to form Racing UK (RUK), a subscription satellite and cable channel. Coverage of the sport on terrestrial TV was declining, and the industry felt it was vital to keep horse racing in people’s living rooms.

Thomas said: “Channel 4 has done a fantastic job with racing over the years, but we now live in a digital age. There is room for more than one channel now, because there are days when one channel would not be able to show all the racing available.”

High street bookmakers across the country depend on live racing coverage to keep their punters happy. For several years, this was provided by a satellite broadcaster called SIS, but that monopoly is now broken with the emergence in 2007 of rival TurfTV.

At first, the big three bookmakers – Ladbrokes, William Hill and Coral – resisted signing up but, one by one, they have agreed to take the service.

Collectively, they estimate it costs them around £35m a year and they are not happy. They are putting pressure on the Government to reform the “levy” which sees 10% of their gross profits handed over to the horse racing industry. This is currently worth around £90m a year, but the bookies want to see it cut.

Predictably, racecourses think the opposite and believe the levy should actually be increased. The Government is promising reform but is dragging its feet.

Thomas’s view is clear. He said: “The levy is very important to the industry and the racecourses do rely on it.

“The bookmakers are benefiting from the use of our product and I don’t think they pay enough for it. This issue does need to be resolved.”

Thomas is keen to expand the company’s general leisure offering and reduce its dependency on things like the levy. Polo tournaments at the course are proving a success, with Thomas himself a keen player. “My main hobbies are all horse-related,” he adds, although he also confesses to being a Manchester United season ticket holder.

“My main ambition here is for us to become the main host for leisure activities in and around the Chester area, to add to the major events we are already bringing to the city.

“With Aintree and Haydock also in the North West, we have a great offering here – other regions are very envious of us.”

tonymcdonough

Age: 37

Highest educational qualification: Marketing degree

Biggest achievement: Getting Chester to where it is now

Biggest regret: Manchester United not buying Berbatov (he plays for Tottenham)

Best advice received: Make sure you work hard and play hard

Main unfulfilled ambition: To win the Victor Ludorum Polo Championship