The Jockey Club, the largest commercial group in British horseracing, which owns famous racecourses such as Cheltenham, Aintree, Epsom Downs and Newmarket, today launched the first retail bond in British sport, offering investors a competitive headline rate of 7.75% gross interest per annum.
The Jockey Club Racecourse Bond
invites investments of between £2,000 and £100,000 over a minimum five-year term for a fixed annual return of 4.75% gross interest paid in cash and a further 3% in ‘Rewards4Racing Points’, which can be used to buy or gain discount against purchases such as tickets and food and drink at any of The Jockey Club’s 15 racecourses nationwide.
The Jockey Club Racecourse Bond has been launched in a bid to raise at least £15m in capital to put towards an iconic new £45m Grandstand development at the Group’s flagship Cheltenham Racecourse, which last month welcomed more than 230,000 people for the 2013 Cheltenham Festival. The Jockey Club is governed by Royal Charter, so reinvests all profits back into its sport.
The launch coincides with The Jockey Club, which was founded in 1750, releasing a second consecutive year of record annual results. In 2012, the Group generated its largest ever turnover (£150.3m) and operating profits (£19.8m), while making a record contribution to prize money (£16.5m). The Group’s turnover grew 8% year-on-year, while operating profits were up 3%. In the last ten years, it has successfully invested more than £155m in its venues.
Paul Fisher, Group Managing Director of Jockey Club Racecourses
“Several million people every year enjoy a day at the races, whether you are lifelong fan of the sport or just love a great day out. Our racecourse bond offers you generous cash returns at a time of rock-bottom interest rates, with a racing rewards element that can pay for your racing experience at any of our 15 courses nationwide.
"For 263 years, The Jockey Club has been at the heart of Britain's second biggest sport and today we are doing very well commercially, with an excellent outlook ahead. In 2012 we achieved another year of record financial performance, despite no resurgence in the economy.
"The money we raise from The Jockey Club Racecourse Bond will go straight into British racing through the iconic £45m development we are planning at Cheltenham Racecourse, so if you take up the bond, you get a generous return and you will be making a difference to our fantastic and growing sport."
Applications for the bond are due to close on 17 May and will be considered on a first come, first served basis.
For more information on this investment opportunity please visit www.racecoursebond.com