Breeders' Cup Expects To Sell Portion Of Investment Portfolio
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Breeders' Cup Has Had To Freeze Salaries,
Eliminate Positions And Trim Marketing Budget |
Breeders' Cup officials last week indicated that organization "expects to sell a portion of its investment portfolio this year in order to plug what is expected to be" a $10M operating deficit in its $50M budget, according to Matt Hegarty of DAILY RACING FORM. The sales, which "would likely raise $5[M] or more in cash, are being combined with dramatic cuts to the Breeders' Cup's marketing budget because of the organization's forecast that nomination revenues this year will shrink by at least" 20%, or approximately $4M. Breeders' Cup also expects to be $6M "below budgeted revenues in other areas, including sponsorships and its year-end championship event." Revenues for the Breeders' Cup are "drying up in other ways" as well. Bessemer Trust, the private wealth-management company chaired by Breeders' Cup trustee Ogden Mills Phipps, has "dropped its sponsorship of two races." Bessemer has sponsored at least one Breeders' Cup race for eight years. Other sponsors including Emirates Airlines, Grey Goose, Sentient Flight Group and TVG "will almost certainly re-evaluate their agreements this year." Breeders' Cup President & CEO Greg Avioli said that the organization has already "frozen salaries and suspended bonuses and incentive payments for senior managers, eliminated several positions, and trimmed $4.5[M] from its marketing budget." Avioli said that the marketing budget "includes money for television buys for national racing broadcasts, and a number of stakes races that have been telecast live on ESPN or ABC will not be seen on those networks this year." However, Hegarty noted it is likely that those stakes "will still be broadcast on TVG or HRTV." Avioli said that compensation for all personnel has been cut 13% "because of the measures" (DRF.com, 1/30).
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