THE DECREE FOR THE SUBSIDES TO RACECOURSES: LA PIETRA, AN INNOVATIVE MEASURE

‘This is a further acceleration of the horse racing reform process, a measure that is in some ways momentous and innovative, changing and revolutionising the relationship between the Ministry and the companies that manage the more than 35 national racecourses. We started with the Classification of Italian racecourses, which has been awaited for years now, then we appointed the Quality Assessment Commission, introducing the concept of quality starting from this year (for the determination of the 2026 ranking). This aspect is becoming fundamental. Now we also have the Decree that establishes the guidelines and parameters by which the subsidies will be assigned.’

With these words, the Undersecretary of the Ministry of Agriculture, Food sovereignty and Forestry, Patrizio Giacomo La Pietra, introduced the new ‘Subsidies Decree’, published just a few hours ago (CLICK HERE TO READ) which puts an end to an anxious wait for the racing companies, obviously in the process of defining their strategies.
The approximately 44 million euros allocated by the various chapters to subsidise Italian racecourses are divided into two fundamental categories. On the one hand, the actual subsidy (37 million) and on the other, the investment subsidy (the remaining 7 million)

‘We have worked on the new relationship with the racecourses thinking above all of the future,’ said the Undersecretary, ’The investment fund replaces the 4% item that was already present in previous contractual agreements with the racecourses, but which was rarely used for the purposes for which it was established. Today we allocate about 15% of the total amount available for subsidising racecourses to structural investment, but be aware that this contribution can cover up to a maximum of 80% of the expenditure incurred. It won't be money spent just for the sake of it, but rather it must be part of a project in which the racing company must also believe, and which will in turn have to invest the remaining 20% of the total. It may involve structural work, grandstands, stables, tracks, etc., but also technological modernisation. Let's say that the concept that the Racing Company/Ministry relationship no longer translates into the allocation of a ‘horse racing welfare income’ must be abandoned and that, since it is public money, all expenses must be accounted for.

But how will the remaining 37 million be distributed in detail?
‘At Masaf we have been working hard over the last few months, also taking on board some suggestions from the racing companies themselves, on how to set up the new contractual relationship. Well today we can say that the plan is quite detailed, but that it offers a good starting point.’

In practice, apart from the investment fund, four other items have been identified and each has been assigned a percentage of economic value. In detail:

1) Cost of a Racing Day 
2) Distribution based on Classification
3) Bonuses
4) Institutional Activities

COST OF A RACING DAY – is in fact the real novelty of this subsidy scheme. A fixed cost has been determined for each racecourse for a day of racing, with the appropriate differentiations for weekdays/holidays, daytime/night-time, Grand Prix days, etc. The average should be around less than twenty thousand euros a day, with the appropriate variances, and therefore the total amount will cover about 55/60% of what is available. In this way, on the one hand the concept of seasonality is eliminated, and on the other hand the phenomenon is curbed whereby some racecourses, even in the recent past, preferred to have a few fewer racing days in order to save on costs by being able to count on fixed fees. Now it will also be easier to transfer days from one racecourse to another due to force majeure, as these will be paid. It should be noted that the annexes specify the maximum amounts for each item, including the ceiling for the remuneration of managers.

DISTRIBUTION BASED ON RANKING – Of what remains available, once the 7 million from the investment fund and the cost of the days have been deducted, the allocation based on the ranking will be applied for a minimum of 35% and a maximum of 45%. MASAF has identified four categories into which the racecourses can be divided: ‘Strategic, National, Regional and Promotional.’ ‘All of them - the Undersecretary reiterated - will obviously receive a decreasing percentage based on their position in the ranking which, as has been said several times, may change from year to year based on the evaluation of “quality”.’

BONUSES – Precisely based on the ‘dynamic’ ranking, there is an additional parameter that accounts for between 45 and 55% of the above-mentioned residual quota and rewards the position in the classification, but it will be reserved only for two categories of racecourses: Strategic and National. The division foresees three strategic racecourses for each speciality (trot and gallop), while there will be nine National ones for trotting and five for galloping. The others will remain outside this subsidy, but may be able to access it in subsequent years, if they climb the rankings. Be careful with ‘multi-speciality’ racecourses: they can only maintain one of the rankings. Let's take the example of Milan, which would be strategic for both gallop and trot classification (first and second respectively). It would maintain its strategic status for gallop races, while dropping to National level for trotting, thus freeing up a place among the strategic tracks, which in any case must be six different racecourses.

INSTITUTIONAL AND PROMOTIONAL ACTIVITIES – Rome Capannelle deserves a separate discussion: Masaf's plans include the objective of making it the ‘capital's’ racecourse and therefore the reference point for national horse racing, obviously not with the current management which is in fact a ‘custodian’, but above all in a future plan. For this reason, the Decree includes an item called Institutional and Promotional Activities, which accounts for 2 to 20% (again of the residual amount minus Investments and Cost of Days) and which, in addition to the capital's racecourse, will be allocated according to the Promotional and Institutional Activities carried out by the various companies (e.g. Palio delle Regioni). ‘This is an item that looks to the future,’ the Undersecretary commented, ’it's clear that we want Rome to become the reference racecourse for national horse racing, but clearly this is an incentive for those companies that wish to participate in the management tender that will be issued by Roma Capitale. In any case, in order to access this part of the Subsidy, the Rome racecourse must have acquired a strategic racecourse classification.’

The classification level for the following year must be defined by the month of October in order to prepare the calendar and distribution of days by the end of the year. This will also allow for faster stipulation of contracts for the following year. To this end, Undersecretary La Pietra and Director General Dr Chiodi illustrated another new feature of the Decree: ‘We have also provided for the possibility of stipulating multi-year contracts. This could avoid the classic “vacatio” period of the first months of the year. In any case, racetracks that want to access it will obviously have to demonstrate that they are the owners of the facility for the indicated period and in any case there will be a safeguard clause that allows for the economic amounts to be remodelled in case of variations in the ‘available’ deriving from the Budget Law.’

Now that the guidelines and parameters have been issued, all that's missing is the Decree of the Director General that will precisely establish the calculations (although those interested can already get an idea). It's a matter of a few days.