Five types of weapons of the warrior
The Republican Public Union «The Federation of equestrian sport industry» (FESI) of the Republic of Kazakhstan.

THE PROJECT: «The conception matters of equestrian sport industry creation in the Republic of Kazakhstan»

Kazakhstan people traditionally are fascinated with horse competitions. However, this spiritual requirement was not organizing realized until the present time. Moreover, it was not achieve the level of equestrian sport industry.

The Olympic sport types as well as the horseracing are in germ despite of presence of republican federation of equestrian sport. The public equestrian competitions and games were realized only due to lots of enthusiasts from all parts of the country and due to the Association of national sport types of the Republic of Kazakhstan. In the same time, there are not organization legal unity and system.

This became possible in the result of absence of mind on the part of the state. Concerned ministries and departments do not have a deal with this. It’s important to underline that development of equestrian sport answers to the most deep  requests of our people, improves health and spirit of nation and it is a high-power of business activity. For example in developed countries only horseracing rakes together a thousands of successful, high-up and super-rich people who enjoy competitions of pure-blooded horses. Tens of millions of foreign currency enter to the state sponsor. The sales volume of horse races is the fourth item of income in budget in France and UAE. “France gallop” jockey club receives 9 billion euro per year.

As you can see from these examples, exactly the horse races in developed countries became not only the elite sport type but also the profitable business. The equestrian sport industry is comparable with manufacturing industry in its sales volume, but at the same time it is ecologically clean. It must be special note that international horse races of pure-blooded and roadster breed horses were not organized in the countries of former USSR, China (except for Hong Kong), India and South Korea. It is about 3 billion people. If horse races would be organized in Kazakhstan on international level then almost whole Asia will bring horses here for horse races and for sale. Such profitable business is practical in our country and low absorbed expenses will turn over in multiply high incomes, investments, taxes and other incomes to the budget.

Some trials to organize horse races as type of sport and tourism were earlier undertaken in Kazakhstan. However all of them met failure due to the following reasons: absence of support from the part of the state,  absence of hippodromes and training centers with  racetrack answers to international standards,  absence of stabile allocated resources for state tests of horses for friskiness (prize founds) and absence of public motion that can involve thousands of henchmen in this sector. 

How it is known, the different perspective and necessary projects could not be realized due to notorious human-factor aspect. Some managers did not catch the idea and went to the wrong place, some turned out to be mercenary and some were just not competitive.

Therefore lots enthusiast among whom are the majority of competent in horse races people have get together in public union « he Federation of equestrian sport industry» to make a trial to move this question from the death point.

FESI take upon itself all organization lawful work: to develop the conception, step-by-step plan (roadmap) and necessary proposals in legislation, to appear as experts, advisors, sponsors and judges on state tests, to lease or to take in administration the hippodromes, training centres etc. Like this, we all together will resolve any problem in this sphere through state and individual partnership. Our fathers of old were the first ones who saddled up a horse. Creation on a world’s map a new Equestrian Sport Empire is very hard but honourable task.

The most important and top priority is resolving of the following problems:

1.  Some hippodromes and training centers have to be built in the state. It should not be privatized otherwise the principal sense of sport horse-breeding (the availability of hippodromes for sponsors and participants of the horse races as well as for fans) would be lost.  No one private investor or rich businessperson would not risk to build good hippodrome with the appropriate infrastructure (it always costs more than 20 million USA dollars) because there is no guarantee it would be paid off. Only the state can pay this amount of money for building of two-three hippodromes in the boundaries of big south cities (Almaty, Shymkent, Taraz and Taldykorgan). Because the state is interesting in increase of tax base, number of work places and investments in economic. For example, each of 6 velayat in Turkmenia has built one hippodrome with running track answers to international standards. It is necessary to repurchase (nationalize) the one useful for horse races Almaty hippodrome, where it is possible to organize the regular horse races after insignificant and fast adaptation to not be at a stop.  The state hippodromes and training centers could be transferred for lease or administration to the specialized public unions recognized abroad (like international jokey club). For example, there is not any private hippodrome in France, Turkey and many other countries, where horse races bring multimillion incomes to the budget.

2.  Allowing of annual budget resources for «test on quality and friskiness of horses».

In all countries the government subsidize the agriculture and allows resources for governmental test on friskiness of horses (prize founds for horse races) where horseraces were organized. Perhaps only in Kazakhstan, horse races are not included in the range of interests and competence nor the Department of Agriculture nor the Agency of Physical Culture and Sport or Equestrian Federation. At the same time, experts believe that the amounts of money invested in the prize funds of the equestrian industry involve ten times of the investment. There are continually investment amounts of money in buying and selling, care, treatment, breeding, training and feeding of the horses, production of feeds, veterinary drugs, saddler and sport ammunition, construction of stables and hotel - restaurant facilities, training of jockeys, trainers, veterinarians, osteopaths, nutritionists, farriers and grooms, and so on and so forth. Moreover, that is not counting the incomes coming from the very wealthy foreign horse owners and fans. The total annual expenditure on state tests (prize money) for all regional and final horse races shall be not less than three million dollars. It has to be growing with the positive development of the situation. For example, the prize fund of the World Cup on the horse races, which held on March 26, 2011 in Dubai, has exceeded 26 million dollars.

3. Creating a legal framework for financing. Even if the previous two conditions were met, we should not immediately expect big incomes to the budget without changing the legislation. For example, in France, with all bets on the tote once the state takes at least 30 percent of the money, part of which goes directly to the budget incomes, while the other goes on the development of the horse races. This is not only economic but also a clear moral sense. Cash excitement as a vice and an element of luxury shall be the subject of high taxes. Therefore it is necessary to make more rigorous in the tax and budget legislation, not only for the totes (which need to be replaced with the instruments on the experience of Arab countries), but other bookmakers and gambling houses (casinos). It should take into consideration that a fan at the horse races does not make blind bets, but he examines and evaluates the experience of jockeys, horses and pedigree features, even covering of the track. Thus, in some degree to get a win, one must work hard and love the sport. There is no blind money gambling which destructives the personality.

4. Improving of the image and rating of Kazakhstan in the equestrian sport world. Partiality for horses and equestrian excitement is in our genes. In contradistinction from the good projects like «Astana» cycling team or participation of «Astana» team on KAMAZ in rally, performance of horses under the flag of Kazakhstan on the most prestigious races will cause the real interest of the majority of the population and thus a wave of investment in the sport from the people. If specifically, it is necessary to invest founds in purchase of promising one-year-old colts, their cultivation and training at a training center abroad (and later in the created centers in Kazakhstan). When they start winning at the horse races under the flag of Kazakhstan, the part of them shall be sold for cost recovery and the rest of them shall be imported into the country to participate in horse races and breeding reproduction. To be honest it should be noted that a number of wealthy citizens of Kazakhstan acts exactly like this when they buy, train and send horses for races abroad. However, they act as individuals. Figuratively if Kazakhstan will has its own stable abroad consisting of the best horses, trainers and managers, we would declare ourselves as equestrian power. It would allow to faster and more successfully organize world-class races directly in Kazakhstan. There are many companies in the world involved in the management in this area. For example, a member of our Federation Mr. Hervé Bargau is well known in the world of top managers. A colt bought by him for 300 thousand pounds was sold for 16 million euros after four victories. Another one colt was bought by him for 5 thousand dollars and then sold for 2 million euro. It is require 12-15 million dollars to purchase 30 one-year-old colts from elite and promising parents, grow and train them for participation in the races. The project would pay off and start to bring net income within 3-4 years if there is proper management and control.  

5. Organizing of auctions of horse selling is also a high profitable business and subject to high taxes. However, it is possible if we became the real power of equestrian sport. Time does not stand still. Over the years, it will be harder to break into the elite world of the big races, which revolve around the hundreds of billions of foreign currency. Having made a step towards the development of equestrian industry today, we can increase the national spirit and pride of our nation by the way of such economic method.

We are confident that the above-mentioned vectors will lead to the creation of environmentally safe, high profitable and responsive to the interests of national industries and sport. The price of this question is 100-150 million dollars for expenses in general for 3-4 years and then there will be several billion dollars of income annually.

On behalf of the equestrian sports enthusiasts,

The Chairman of the Republican Public Union “The Federation of equestrian sport industry” Mr. B. Bulgakbayev and the Members of the FESI Council

February 12, 2012.

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