Hey there, partner. This is The Oxer by Pegasus. The newsletter that takes you out of your tack room and into the global equestrian industry.
🐴 Here’s what we’ve got for you today:
- 🌞 We need to talk about WEF: About how it’s enriching South Florida’s economy.
- 👩⚖️ Will equestrian workers have their employment reclassified?: The U.S. Department of Labor might make that happen.
- 📸 How photography can economically stimulate equestrian: Read why on last week’s special edition and listen to the full podcast about this featuring global equestrian photographer Morgan FROMENT.
- 🎬 Final Foals: Check them out after the second story of this edition.
Before we get into it, have you signed up to try out Pegasus’s beta?
If not, head to Pegasus, click “get early access,” and sign up today!
Alright, let’s get into it! 📸
🌴 How WEF Ones-Up Other Industries in Palm Beach County
- The Winter Equestrian Festival (WEF) is one of the largest equestrian festivals in the world, based in Wellington, Florida (Palm Beach County).
- WEF recently came out with its economic impact findings for their 2023 run and it includes some impressive stats. 👇
Attracting athletes from over 34 countries and all 50 U.S. states for 13 weeks of top-tier competition, WEF generated a massive $352 million increase in the region’s GDP.
This support spanned 3,364 jobs and resulted in $103 million in labor earnings, primarily driven by horse-related expenditures and boosted by nonresident participant spending. The festival’s appeal is highlighted by the enthusiastic spectator turnout, reflecting its vital role in both the equestrian world and the local economy.
It plays a crucial role in supporting local businesses and provides a significant uplift to the hospitality and service sectors, thanks to the influx of visitors and participants who spend on accommodations, dining, and entertainment in the area.
WEF, which spans 13 weeks, serves as a magnet for world-class talent, drawing competitors and horses from across the globe, such as Chilean show jumper and Pegasus partner Gabriela Reutter.
Gabriela Reutter on Instagram
An interesting statistic from the study is that, of the $352 million that contributed to Palm Beach’s GDP from WEF, almost 75% of that—so $262.5 million—came from “direct expenditures related to horses.”
It goes to show that the money that flows into equestrian is very heavy on horses and athletes. Shopping at shows is important, but is financially not the main event!
If we were to compare WEF with other industries in Palm Beach County based on employee count, this is what that would look like…
- 💸 Finance: 73,989 employees = WEF labor makes up 4.6%
- 🏡 Real Estate: 66,144 employees = WEF labor makes up 5.1%
- 👷 Construction: 50,232 employees = WEF labor makes up 6.7%
- 🛍️ Retail: 83,037 employees = WEF labor makes up 4.1%
- 🏥 Health Care: 99,726 employees = WEF labor makes up 3.4%
This is significant because the Winter Equestrian Festival only operates 13 weeks a year. The others in the list above? All 52 weeks.
One more fascinating stat from WEF’s study is that 95% of spectators reported a “high degree of enjoyment” and 65% of those spectators had been to WEF the year before.
This means that approximately 35% of spectators were either brand new to WEF or had seen it years before. This demonstrates that horse shows can indeed grow their spectator base.
It also brings to question how many of these spectators were already equestrian people. WEF is an equestrian festival yet has amenities that make it attractive to people who have never been to a horse show before.
There isn’t data on how many of them have ever been to a horse show before, but it is possible to conclude that amenities can bring more non-horse people to your show.
We can all learn how to make more money from our horse shows by studying WEF.
🐎 Will Grooms Go From Being Independent Contractors to Full-Time Employees?
- A new rule by the American Department of Labor could lead to reclassifying employee-employer relationships in the equestrian industry.
- See below for what the American Horse Council has to say about it.
The new rule by the Labor Department, effective March 11, 2024, revises the classification criteria between employees and independent contractors, aiming to protect gig economy workers by ensuring they receive employee benefits.
The American Horse Council warns this could significantly impact the horse industry, affecting roles like trainers, farriers, and vet technicians, necessitating adjustments in employment practices and payroll systems to comply with the new standards.
A broad array of roles, including shippers, braiders, stall cleaners, press and media personnel, jockeys, farriers, trainers, and vet technicians, potentially facing reclassification from independent contractors to employees.
The rule’s aim is to extend protections and benefits, typically reserved for employees, to a wider segment of the workforce, aligning with the goal of safeguarding gig or freelance workers.
According to the AHC, the rule will use the following six factors to judge the worker’s and employer’s relationship with each other:
Any opportunity for profit or loss a worker might have; the financial stake and nature of any resources a worker has invested in the work; the degree of permanence of the work relationship; the degree of control an employer has over the person’s work; whether the work the person does is essential to the employer’s business; and a factor regarding the worker’s skill and initiative.
The rule is receiving pushback from businesses and members of Congress, so we will update you in the future on whether or not it will be implemented.
As of now, it is common practice in the equestrian industry to be paid as an independent contractor. This makes sense considering the seasonal nature of horse shows.
Per our discussion with the founders of ShowAssist, we found that many independent contractors do turn into full-time employees. It is not certain whether these full-time employees get paid with benefits or have full-time responsibilities and maintain an independent contractor/vendor relationship.
As mentioned before, a variety of positionsare often designated for independent contractors, such as veterinary professionals, horseshoeing experts, coaches, jockeys, and various service providers for stables. These individuals usually enter into contractual agreements, bringing their own gear and assuming responsibility for their tax obligations.
Conversely, job titles like head of barn operations, stable hands, deputy barn managers, competitive riders, track exercisers, and general stable employees tend to be filled by individuals in employment relationships.
Such employees are typically engaged on a consistent basis by an employer who supplies all necessary equipment and materials, handles tax deductions, and might extend employment benefits, including coverage under workers’ compensation insurance.
🐴 This Week’s Final Foals
🤘 The top three college equestrian teams are all based in Texas, less than three hours away from each other.
Will a Danish royal run the country’s equestrian federation?
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Tally-ho,
The Oxer by Pegasus
