On June 22, 2012, AQHA National Directors across the country received an email where they were notified that the Executive Committee approved to increase horse show approval fees to help pay for new awards and shows.
According to the AQHA press release (republished below), starting January of 2013, instead of shows having a flat approval fee of $100, approval fees will now be based on the number of entries by event code.
For example, up until this point, shows had to pay $100 for each show number/set of points they offer at a show. If a weekend show has two judges where two sets of points are offered, it would cost the show $200 to have the show approved. Now, if that same show has 1000 to 4,999 entries, then, their show approval fee would be increased to $1,000 starting in 2013.
Bottom line: Starting next year, the bigger the show the higher the show approval fee. Many show managers feel that they are being penalized for working hard to increase their numbers. In return, they will now have to charge the exhibitors more money to make up the costs.
GoHorseShow talked to several show managers and show secretaries about this issue including Pat Kress, Diane Olson, Debbie Wall, Mary Hannagan, George Kane, Barbara Fisher, and Cody Fisher.
Show secretary Pat Kress of Knoxville, Tennessee is concerned how these increases in fees will change the landscape of a weekend horse show. Kress is well known for being the show secretary for shows like the Dixie Nationals and Lucky 7.
“I called state directors from five different states and not one of them knew of this increase…they found out when the email went out,” Kress says. “Also I spoke with several people on the AQHA Show Committee who did not know anything about this until the email. When did our membership or committee members get a vote? Who proposed this huge increase?”
Kress continues, “The average weekend show is just trying to get along. Not making money but just trying to break even and bring new exhibitors in with flat fees for the weekend. With flat fees, exhibitors can try classes that they might not have tried with an additional entry fee. AQHA is asking us to include Rookie classes and the leveling program–this is only going to increase the numbers, hours of a show, etc. Are we to be charged with this increase also? It appears shows are now going to be penalized for trying to increase entries. What use to be a $400 approval fee is now going to be $600 to $1000.00.”
Kress’ solution to the problem is simple. “You don’t offer so many programs if you can’t pay for them,” Kress says. “AQHA has never had a Novice World Show. In 2012, we are having two–both held on the same weekend in Tennessee and Nevada. Guess the increase is paying for them, but they have a flat fee of $250 per horse. Let them live within their budget just like the rest of us do. When the times get tough, you tighten up….not expand. Give your existing customers more to show for so that they can pass the word on.” (Kress pictured right)
Mary Hannagan, who runs the Gordyville Shows in Gifford, Illinois is also worried about this increase in fees. “Especially for the smaller shows—they are either going to become smaller or won’t be held any longer,” Hannagan says.
Show secretary Diane Olson agrees with Hannagan and told GoHorseShow that if the fees remain the same, there will be several shows in Nebraska and Iowa that won’t be held next year. Olson said she will not apply to get these shows approved because with this new fee structure, several of these shows couldn’t break even let alone make a profit.
“There is a huge difference between a weekend show with 1,000 entries and the Congress which is the largest show in the world,” Olson says. “Yet, the fee difference is only $500. There needs to be a greater breakdown in the fee structure. There is a drastic difference between what a show with a 1,000 entries can make profit-wise versus a show with over 4,000 entries. AQHA needs to rethink these fees.”
Debbie Wall, who is the show secretary for many shows in states like Alabama and Florida, states that she is also apprehensive about the increase.
“I kind of understand why they are increasing the fees, but I also feel like they do not want the shows to grow. With the new fee schedule, it is probably going to make it too expensive for the smaller clubs to afford the shows especially if they had big numbers last year.”
GoHorseShow talked to George Kane who is the show manager for several shows in Mississippi. “I am very concerned with AQHA doing this as we all are trying so hard to rebuild after the slump in the economy. I can tell you about one organization that made a $300 profit at their show which now means they will lose $1200 for trying to do the same show next year. After all, have we not seen enough people exit the business because of money problems. Time to get smart and work with people that are in the industry,” Kane says.
Kane states that AQHA should work towards getting new sponsors to pay for the awards, new shows and related expenses due to the implementation of the leveling program and the Novice Championship Shows– not pass the responsibility onto the horse shows who already have enough on their table.
Barbara Fisher who has been the show secretary for the Tennessee Quarter Horse Association for over 30 years, says that she is also concerned about the newcomers in the industry.
“The flat fee AQHA will impose on shows next year will certainly have a negative impact on my five day circuit. I feel sure the grassroot exhibitors will not understand an increase in their show fees to take care of AQHA awards they never receive.”
Fisher mentions that maybe just like a jackpot–certain exhibitors interested in vying for particular awards can pay AQHA an extra fee in order to be eligible. “I think that would be a lot better than increasing the fees across the board and hurting the small shows and newcomers wanting to show with AQHA.”
Cody Fisher who runs the Circle G Classic every year in Tunica, Mississippi says that AQHA fails to mention the revenue they receive from drug fees they collect from shows when discussing the amount of revenue they receive versus what they spend on the shows. However, Fisher says he understands why AQHA is increasing their fees. “Price adjustment is a necessary evil due to inflation and other factors, but I do not agree with linking the awards program with the increase of show approval fees.”
According to AQHA, once the show managers have paid their show approval fees, events paying more than $500 in approval fees will receive a credit with AQHA’s new trophy company, Awards Recognition Concepts (ARC). Three award packages–valued at $250, $500 and $750–will be available to show managers.
“I want to see what awards ARC is going to offer. If they have great prices and cool stuff, it will soften the blow. However, AQHA is a business and I suspect ARC will price its awards ‘in line with industry standards’, thus negating any potential good will from show management,” Cody says.”Forcing show management to buy a certain amount of awards was a step too far,” Cody says. “Perhaps AQHA needs to allow exhibitors the option to purchase show awards from AQHA instead of forcing the shows to buy them up front. This passes the cost down without penalizing the shows when the economic environment is already tough. De-link the two programs. Allow fair market competition to determine whether ARC is a needed and complementary business for AQHA.”
Let us know what you think about this topic!
Check out the full press release from AQHA below.
For Immediate Release:
A new show approval fees structure goes into
effect January 1, 2013; eligible AQHA show managers will receive credit
for customizable awards packages.
A new show approval fees structure goes into effect January 1, 2013; eligible AQHA show managers will receive credit for customizable awards packages.
From the new AQHA leveling program to the inaugural AQHA Novice championship shows, AQHA is improving the competition landscape for exhibitors, and in turn, for show managers. As a result, AQHA now offers more showing opportunities, which also means more results to process and more awards to provide, and to balance these improvements, AQHA needs to create more revenue.
In 2011, 2,703 total AQHA shows and special events were held. With the current show approval fee of $100, the revenue of show approval fees totaled only $270,300, which pales in comparison to the cost of 5,239 open awards, 6,794 amateur awards and 5,167 youth awards, plus the results that were processed for the 849,437 total show entries, including special events.
“AQHA budgets $8,500,000 annually for shows, judges, amateur, AQHA Professional Horsemen and regional shows,” says AQHA Executive Vice President Don Treadway Jr. “We have income of approximately $1,300,000 annually collected from show processing fees. Basically, we spend $7,200,000 each year ‘related to shows’ for some 25,000 AQHA exhibitors.
“When you do the math, that’s $288 that the Association spends per show member, or exhibitor, every year. The only requirements for an exhibitor to participate in an AQHA-approved show is that he or she must be a current member, pay a $5 per-horse show processing fee and exhibit a registered American Quarter Horse.”
Show approval fees from AQHA-approved shows are the real source of revenue for the AQHA Competition Department, Treadway explains.
“Originally, the show approval fee started at $25. In 1997, it was increased to $50, and in 2005 it increased to $100,” explains AQHA President Gene Graves of Grand Island, Nebraska. “Whether it is the largest circuit show of the year or a small one-day show, the fee has been the same across the board.”
However, as of January 1, 2013, show approval fees will increase. And rather than a flat fee, which has been protocol since the fee’s inception, approval fees will now be based on the number of entries by event code.
“Individual shows and special events are tied together by an event code,” Treadway explains. “For instance, if there is a circuit with six different show numbers and two special events, they are linked by the event code. By doing that, the individual shows are linked together so that when statistics are pulled for the circuit, all shows in that circuit are grouped together. To calculate the entries on which to base the approval fee, AQHA will refer to the previous year’s number of entries by event code.”
Show and Special Event Approval Fees*
Events with 5,000 and more entries–$1,500
Events with 1,000-4,999 entries–$1,000
Events with 500-999 entries–$500
Events with 250-499 entries–$250
Events with 249 and fewer entries–$150
*Beginning January 1, 2013
These fee changes were approved this spring by the AQHA Executive Committee.
“An important thing to keep in mind is that AQHA’s reason for changing approval fees is not to gouge show managers, but it’s to have a leveled pay schedule and to help the competition department financially, so AQHA can continue to provide more recognition and implement more programs,” Graves says.
“This new fee schedule actually brings AQHA in line with industry standards and with similar approaches executed by AQHA alliance partners,” Treadway adds. “The approval fee schedule isn’t the only avenue that the competition department plans to use to create revenue, but it’s certainly one of the first.”
Additionally, a single late application fee will be applied to late show approval applications.
Late Show/Special Event Application Fees*
Shows/special events application received 90-119 days prior to show– $200
Shows/special events application received 60-89 prior to show– $400
If received less than 59 days prior to show date– $1,000
*Beginning January 1, 2013
“Part of AQHA’s mission statement is ‘to provide beneficial services for its members that enhance and encourage American Quarter Horse ownership and participation,’ ” Treadway says. “As a steward of the breed and its membership, AQHA needs to start examining means for its departments to stand financially responsible on their own; a leveled approach to show approval fees is the first financially responsible step for the AQHA Competition Department.
“What AQHA wants to do is create even more activities and opportunities, giving more people more reasons to get horseback,” Treadway adds. “That’s really what the change in fee structure will do – it will help us continue to aggressively bring programs to the marketplace that get people showing their horses across disciplines and divisions.”
Customizable Awards Packages
Paired with the new show approval fees structure will be three new customizable awards packages for eligible events.
Once show managers have paid their show approval fees, events paying more than $500 in approval fees will receive credit with AQHA’s new trophy company, Awards Recognition Concepts. Three awards packages – valued at $250, $500 and $750 – will be available to show managers. Keep in mind, however, that a show manager must spend more than $500 on their event’s show approval to be eligible.
For instance, if an event is assessed $1,000 in show approval fees, the show manager will have a $500 credit with ARC to use for awards at that event. If an event is assessed $1,500 in approval fees, the manager will receive a $750 credit with ARC.
Credits with ARC that are accrued through show approval fees must be applied only to the event by which the credits were earned. A show manager may not apply credits from more than one event code; the event code through which the credits were earned must be the event code where the awards are presented.
ARC is the new AQHA business venture housed at AQHA headquarters in Amarillo and is responsible for the assembly and shipping of AQHA trophies and awards, as well as assisting in the creation and design of new awards that will further enhance AQHA’s awards program. Bringing AQHA awards in-house to AQHA’s newly developed ARC department allows the Association to continue to provide members and competitors with quality, economical awards that come with AQHA’s first-class customer service.
Keep an eye out for more details about ARC, how to use your credit and the services they provide.
