Cheltenham races provides a £100mn boost to the economy

IT’S one of the biggest spectacles of the sporting year – and a racing certainty that more than £100m will be ploughed into the local business economy as a result.

But as horse racing comes under starter’s orders for this year’s Cheltenham Festival, a high-profile insolvency case means that some runners won’t even be leaving their stables.

In just four days between March 12 and 15, Britain’s biggest race meeting will see more than £600m gambled; over 275,000 pints of Guinness sunk; and approaching 25,000 bottles of Champagne uncorked.

Not to mention an unpredictable number of lost shirts – including many from Yorkshire and the North East as part of the annual pilgrimage to the Cotswolds.

But as this year’s festival gallops ever closer, many horses will not get past the first fence. In fact, they won’t even make it into the horse box.

And that’s because all 23 racehorses that race in the line green colours of Layezy Racing have been banned from taking part, after the man behind the members’ club shut it down and filed for bankruptcy.

The collapse into bankruptcy followed a headline-grabbing investigation by sports journalists from the Daily Mail, which raised questions about how the money of more than 2,000 investors was being spent.

Many of the racehorses were trained in Yorkshire and the North, including York, Middlesbrough, Stockton-on-Tees and Doncaster.

Amid the insolvency, racing’s ruling body, the British Horseracing Authority, took immediate action, issuing this formal statement:

“The BHA was alerted on Thursday 14 February to the fact that Mike Stanley, owner of 23 horses through the Layezy Racing Owners Club, declared himself insolvent on Monday 11 February.

“Under the Rules of Racing, insolvent individuals or entities are not permitted to own and run racehorses. As such, those horses will not be allowed to run until further notice.”

Club members have claimed that they too now face the threat of insolvency and bankruptcy.

Around 2,000 people collectively invested millions of pounds – including life savings and pension funds. And they now fear it’s a long shot that they will see much of their money again.

News of the insolvency is a far cry from the boost to business finances that Cheltenham traditionally generates – handing a revenue lifeline to many High Street businesses and SMEs in particular.

Indeed, bankruptcy and insolvency are among the last words you would expect to hear from the lips of the 250,000 racegoers – including millionaire businessmen, top footballers, chart-topping singers and members of the Royal Family – who attend each year.

Like Harrogate, Cheltenham is a spa town. And the festival is big business and a much-needed cash injection for traders large and small in this rural part of Gloucestershire.

Business analysts predict that this year’s festival is worth upwards of a record £100m in economic terms to the district.

To place that into context, that’s double what the Tour de Yorkshire generated for the Yorkshire economy when men in a different kind of saddle pedalled around Leeds, Harrogate, Scarborough, Bradford, and Sheffield in 2017.

From hotels and guest houses to restaurants and pubs; chauffeur-driven cars to suit hire companies; from corporate hospitality agents to security guards – everyone’s a business winner. And not just the bookmakers!

The stats are staggering: over 150,000 passengers use the Cheltenham Spa train station; more than £2.3m is withdrawn from the on-course cash machines; and around 6,000 staff, including 400 chefs, are employed by the course.

There are more than 100 helicopter movements each day to and from the festival.

And the value that the meeting adds to the aviation business is underlined by the fact that Ryanair lay on around 25 extra flights between Dublin and Birmingham just for the week.

That’s a fleet of 737s carrying around 25,000 passengers from Ireland … all spending many of their Euros and Pounds with local businesses.

Cheltenham’s £7m pot of prize money attracts runners from all over the UK and Ireland, with stables across Yorkshire and the North East among those chasing – quite literally – a bumper payday.

Sue Smith – wife of show jumping legend Harvey – trains just a canter away from our Guiseley office, her windswept stables perched at High Eldwick on the top of Ilkley Moor between Leeds and Bradford.

She will be among those at Cheltenham flying the flag for Yorkshire, alongside Phil Kirby, Brian Ellison, Tim Easterby and Micky Hammond who all train near York.

Thankfully, none of them have been hit by the insolvency of Layezy Racing.

It is a bankruptcy which has led to calls for greater financial protection of those individuals and businesses who invest in the sport.

Given the negative publicity that the insolvency has brought to the sport on the eve of its showcase meeting – televised to millions around the world – that would seem to be an odds-on favourite course of action.

For more information on how our licensed insolvency practitioners and businesses recovery teams in Leeds, Bradford, Harrogate and Darlington can help, please call us on 03300  244 660 or email confidential@www.walshtaylor.co.uk

 

 

Mary Taylor
Director

Mary began working in insolvency for a national accountancy practice in Glasgow thirty years ago and worked in most divisions of the insolvency department.

She then moved to a smaller firm so she could advance her knowledge on a more hands on basis. She moved back to Leeds in 1987 and commenced working with a small firm of accountants and subsequently made partner.

She left in 1999 to set up her own practice, McCann Taylor.
McCann Taylor became involved with the consumer market both in England and Scotland.

Mary sold McCann Taylor in March 2007 and formed Walsh Taylor to concentrate on helping businesses experiencing financial difficulties.

Kate Ellis (neé Breese)
Insolvency Practitioner

Kate has worked in insolvency since 2001 starting out at a firm of solicitors in Leeds and latterly gaining positions within two national accountancy firms.

During this time Kate gained extensive experience in all aspects of personal and corporate insolvency, for the first part of her career specializing in personal insolvency and latterly corporate.

Kate has been with Walsh Taylor since its incorporation in September 2008.

Kate is CPI and JIEB qualified, is experienced in a variety of industries and sectors and is the firm’s joint appointment taker.

Meg Heath
Director

Meg has a background in supporting SMEs, including the raising of finance and advising on organisational change. She is a non-executive director of companies in the private and third sector, including Walsh Taylor.

Previously she was Deputy Fund Director of one of the largest CDFIs in the UK, and has experience of the social enterprise, charity and private sectors. Her experience of assisting companies to survive and thrive has been gained across a broad range of sectors and in companies of all sizes.

In addition to her work at Walsh Taylor she works for other private companies, including non-executive and trustee positions.

Emma Mifsud
Insolvency Practitioner

After graduating from Leeds University in 2005 with a BA Hons degree in Criminology, Emma worked for a regional law firm in both the property department and insolvency and banking department. Whilst doing so Emma gained a Graduate Diploma in Law at BPP University.

Emma then joined a national accountancy firm in 2009 gaining experience in personal insolvency before moving to a Leeds based firm. At this firm Emma specialised in bankruptcies, IVA’s and negotiating informal agreements with creditors. In 2013 Emma gained her CPI qualification.

Since joining the firm in December 2013, Emma has taken on a portfolio of personal and corporate insolvency cases to extend her knowledge and expertise in all areas of insolvency.

In December 2017 Emma become a licensed appointment taker under the Insolvency Practitioners Association, she is JIEB qualified.

Walsh Taylor Finding workable solutions for your financial problems
If you would like us to contact you by phone please include your phone number or call us on 03300244660.