Racehorse grooms get a seat in the sport of kings’ throne room

Handing 26% of the ownership of South African racing operator 4Racing to grooms and company employees is surely a world first in the industry.

The humble men and women who get up well before dawn each day to feed, water, medicate, soothe and saddle up their equine charges, ready for morning gallops, will soon have a say in the game’s elevated boardroom discussions.

A press release on Tuesday revealed that 4Racing had started “a major transformation initiative to improve the working conditions and welfare of grooms”. In addition to upgrades to their accommodation, medical benefits and funeral cover, they get shares in the company via a Grooms Trust.

Grooms and stable hands are, of course, employed by privately operating trainers, so 4Racing has also cut its employees – grounds and office staff, drivers etc – in on the deal.

Grooms get a 16% stake in 4Racing and employees 10%.

‘Massive moment in history’

“Grooms are one of the most crucial parts of the horse racing industry,” said 4Racing CEO Fundi Sithebe. “They are also traditionally the most marginalised stakeholders.

“This landmark approval by the 4Racing Board of the funding for the Grooms Trust initiative is a massive moment in the history of South African horseracing. The Grooms Trust will genuinely empower grooms and stable hands and we are extremely proud of the progressive steps being made to improve the holistic living standards of these very important stakeholders, as well as by the formation of the Employees’ Trust,” said Sithebe.

The deal is a collaboration between 4Racing, trainers and owners, and the Racehorse Owners Association (ROA), which has committed considerable funding.

‘Transforming lives’

ROA CEO Natalie Turner said the welfare initiatives were critical.

“We need to strike a balance between stakes maximisation for owners and playing a meaningful role in bringing about change and transformation in the industry,” said Turner, adding, “This partnership is a powerful message of change… We look forward to … transforming lives.”

Most observers will agree it’s a “powerful message”.

Recent years have seen growing global awarness of the importance of stable hands and other workers at lower levels of racing’s value chain – with monetary incentives and greater profile being accorded grassroots horse people in places as diverse as Royal Ascot in the UK, Seoul in South Korea and Fairview in Gqeberha.

Inequality is an international preoccupation like never before. But no-one in racing has gone as far as handing over a chunk of equity.

Of course, South Africa is a special case, with reparations and transformation permeating everything. Many a major company long ago made large “empowerment” gifts to black people and groups.

But that’s not so easy for small and medium-sized businesses – of which the recently bankrupt Phumelela/4Racing is now one.

Politics

Racing can thank its lucky stars it has stayed largely out of the orbit of government scrutiny and interference over decades – possibly because its cash-flow is mercurial and there are not large amounts of money lying about waiting to be looted. (The case of KwaZulu-Natal’s impoverished provincial government planning a betting tax grab is an exception.)

Nonetheless, there has been quite a bit of “political” upheaval on the ground, notably rebellious grooms striking and even going on rampages.

In an unstable and skewed political and economic environment, this was to be expected. And, after years of hand-wringing inaction, the penny finally dropped for the powers-that-be in racing – a cohort notoriously disconnected from the so-called real world.

When the Competition Commission approved the transaction between Phumelela and 4Racing on 31 March 2021, 4Racing made a commitment “to contribute to the transformation of not only the organisation, but the horse racing industry as a whole”.

This week’s announcement looks a generous start for 4Racing’s Highveld and Eastern Cape operations, but “the horse racing industry as a whole” is another matter. Will Cape Racing and Gold Circle in KwaZulu-Natal match the deal?

Western Cape racing is in resurgence in terms of fan, owner and trainer interest and betting turnover, though the situation in Durban is a lot gloomier.

New alignments to further this transformation push might be on the cards.