The concept of micro-ownership has never been more to the fore in thoroughbred racing than the past week with miEverest selecting Rothfire (Rothesay) as its candidate for its first Everest slot, and then Authentic (USA) (Into Mischief {USA}) winning the G1 Kentucky Derby for a syndicate which included 4500 global members of the MyRacehorse platform.
Capitalising on the momentum behind micro-ownership, miRunners on Thursday launched a concept called The Racing League, which it hopes will connect the joy of ownership with the tribalism which has driven massive growth in engagement of sports around the world.
On a simple level, it allows micro-owners in miRunners horses to join state-based teams which compete for pride and points as the horses they own accumulate success along the way. The Racing League will kick off from March 1 next year, with micro-owners involved in the selection of horses purchased by miRunners in a draft-style system.
For miRunners CEO Steve Brown, the Racing League concept is one the company has been building towards all along, having established its innovative ownership model in Australian in recent years.
Steve Brown | Image courtesy of miRunners
"This is the big one, and this is the one we have been working on for five years. There is an incredible amount of investment and work that has gone into this," he told TDN AusNZ.
"The last five years we have been testing micro-ownership in a view that racing can't take its future for granted. It can't assume it has a future. If you look at the trends in attendances, TV audience, the growth in sports betting versus racing and the like there is a case to say the next generation is not interested in the sport."
"Racing can't take its future for granted. It can't assume it has a future." - Steve Brown
At the heart of the concept is inclusivity, something thoroughbred racing has often struggled with, especially in the ownership space.
"There are some red flags for this industry going forward. We think it's important to start ruling people into the sport, rather than just ruling them out. Price is one of those things which has ruled people out," Brown said.
"That's what we have tested with miRunners over the years. We've been in discussions with a few of the PRAS in a bid to bring tribalism into racing. Leagues and tribalism operate in every global sport except racing, and that's the concept of The Racing League.
"What it does, it provides affordable ownership in a league format, in that tribal environment."
'Racing's greatest asset '
Brown is understandably a passionate advocate for the benefits of the ownership experience and believes it is the one asset which racing has over so many other sports.
"We've seen over the last five years what ownership does for Australians. We have had people say it has changed their life. It gives them something to look forward to on the weekend. It gives them a social outlet where they can meet new people, and it allows them to participate at the top end of the sport," he said.
Connections of miRunners horse Zoushack
"That passion that racing has got, is what we have to unleash. Because with technology you can communicate from the moment you buy that horse, all the way through to when the trainers have got them, people fall in love with those horses.
"That's evident through the engagement we have had in miRunners. Any subscription business would dream of having the one per cent churn rate that miRunners has. That's because of the animals and that's what we have to unleash."
Key to the launch of The Racing League has been the support of the state-based PRAs, who Brown says see the value of what micro-ownership in this format can bring the industry.
"Peter V'Landys has said he sees micro-ownership as the future of racing. Brendan Parnell has been a big supporter for a long time. These guys are seeing the concerning trends in racing and they realise that the sport has to innovate and it can’t take its future for granted," Brown said.
Peter V'Landys has said he sees micro-ownership as the future of racing
Four teams to fight for glory
The inaugural league will feature four state-based teams, the New South Wales Tycoons, the Queensland Rogues, the Victorian Husslers and the WA Black Hearts. Each team feature an ambassador who will help drive the profile and engagement with each of the teams.
Rugby League great Laurie Daley will fulfil the ambassador role for the New South Wales Tycoons, while another NRL superstar, Billy Slater, a face very familiar to racing fans through his involvement as an ambassador for Magic Millions, will be the front man for Queensland Rogues.
Brownlow Medallist and Hawthorn AFL champion Shane Crawford heads up the Victorian team, while racing media identity Brittany Taylor will guide WA as its ambassador.
"They will help drive the tribal aspect. They have been great, because they get it. They love the sport, they love to compete, and this will be pretty competitive," Brown said.
Billy Slater (left) will be one of the leagues ambassadors
For a $200 investment, plus an ongoing cost of $20 a month, The Racing League members get to race six horses as part of their team, four selected from a draft of yearlings, and two which are tried or Ready To Race horses.
"Once the units are sold, we will then go to the yearling sales and buy four yearlings, and two tried horses and those horses will get selected by the team owners out of a draft," Brown explained.
"The first horses will be bought at Magic Millions through to the Easter Sale next year and the competition begins March 1, where those tried horses will start to earn points. The points system is based on the class of race.
"It’s really important that the team owners are constantly involved and making decisions along the way. They will select in the draft their horses and their trainers. It will be their decision not ours."
As well as the points system, owners are able to earn prizemoney from the horse as they normally would, and should a horse be opted to be sold, then that would be returned to the owners.
Horses taken from top end
With 10,000 units for sale at $200 piece, there will be a significant pool of money to spend.
"These are expensive animals and of the salary cap pool, 100 per cent goes to buying horses. There is no mark-up or margin, everything is managed in a trust account, and all those funds are used to buy horses," Brown said.
"There is no mark-up or margin, everything is managed in a trust account, and all those funds are used to buy horses." - Steve Brown
"That means on average, where we are buying horses, we are buying a $330,000 animal. That price doesn't guarantee outcomes, but it increases chances."
That will also provide a small boost to the yearling market in what most are expecting it to be a tough sales season in light of COVID-19.
Brown has promised further innovations from The Racing League as the concept evolves and will look to add further teams in the future. He anticipates a strong response to something he believes can prove transformative to the ownership experience.
"We want to get a racehorse owner to feel like a sports fan and sports fans to see the value of being a racehorse owner, and if we can do that, we think the whole industry can benefit," he said.
