In 2012, Italy, a leading Thoroughbred racing country, found itself in the midst of a country wide financial crisis. With major economic problems and the fall of the Italian government, the country was in a dismal situation. The racing industry was hindered by the crisis when the Italian Ministry of Agriculture blocked payment of all prize money from September to December. In addition, the Italian government reduced the Agency for the Development of the Horse Racing Sector’s budget by nearly 50 percent. The Ministry of Agriculture made this decision based on the need to ‘prioritize’ money and those owed payment from the September - December time period, including owners, jockeys and trainers were not expected to see any funds until 2014.
This situation nearly caused the end of the Italian racing industry but it was kept alive by industry employees working regardless of the fact that they were not receiving their salaries. However, the consequences of Italy’s actions towards the racing industry in light of its financial state were large. Employment rates have gone down. The value of foals have decreased. Agriculture companies have been forced to shut down. Horses have been sold overseas. Trainers have left the country taking their business with them. Owners have pulled their horses out of Italian training, and stallions have been shuttled to other countries to stand at stud.
Concerns surrounding Italy’s financial issues are no longer focused on “will Italian racing survive?” but rather “will Italian racing be able to return to its once present glory?” The Italian Ministry of Agriculture has yet to pay out the funds owed to those in the industry for the 2012 time period. There is no doubt that Italian racing will suffer for years even after financial stability is restored to the country. With little reassurance of what the future holds, Italians will be reluctant to get into the business and investors will no longer feel secure.
This situation nearly caused the end of the Italian racing industry but it was kept alive by industry employees working regardless of the fact that they were not receiving their salaries. However, the consequences of Italy’s actions towards the racing industry in light of its financial state were large. Employment rates have gone down. The value of foals have decreased. Agriculture companies have been forced to shut down. Horses have been sold overseas. Trainers have left the country taking their business with them. Owners have pulled their horses out of Italian training, and stallions have been shuttled to other countries to stand at stud.
Concerns surrounding Italy’s financial issues are no longer focused on “will Italian racing survive?” but rather “will Italian racing be able to return to its once present glory?” The Italian Ministry of Agriculture has yet to pay out the funds owed to those in the industry for the 2012 time period. There is no doubt that Italian racing will suffer for years even after financial stability is restored to the country. With little reassurance of what the future holds, Italians will be reluctant to get into the business and investors will no longer feel secure.