Sheikh Mohammed, the driving force behind Godolphin, has launched an impassioned plea to racecourses to increase their prize money.

The breeder told the Gimcrack Dinner in York that unless racecourses were willing to work with the rest of the industry, owners would continue to leave the sport.

"Prize money is the lifeblood of the industry and the more it increases, the better for everyone - not just the owner," he said.

The fact that we are still involved in racing does not mean we are happy with the state of the industry Sheikh Mohammed

"The livelihoods of tens of thousands of people depend on it. Yet every year owners are being driven out of the sport because they just can't stop the tide of racing's financial realities sweeping over them."

Sheikh Mohammed described the pay and conditions of stable staff as "immoral", and warned that if racecourses did not take action his family "stands willing to join with other owners in taking action".

Discussing the progress made in improving British racing's finances in the past year, he said: "A significant amount of that extra income is being paid direct to the racetracks.

"It is to be hoped that owners, and all of the other people who depend so heavily on prize-money, will quickly see a corresponding benefit."

Sheikh Mohammed spoke out about the parlous financial state of British horseracing five years ago and on Tuesday accepted that progress had been made.

But he added: "The fact that we are still involved in racing does not mean we are happy with the state of the industry."

Posturing

Sheikh Mohammed said he was particularly disappointed that the Racecourse Association had complained to the Office of Fair Trading about the British Horseracing Board's decision on minimum prize-money levels.

"The posturing of some racecourses leads me to think that they feel they run the sport and can operate in isolation from owners and others," he said.

"Take it from me, that is not the case - it would be a mistake for racecourses to attempt to put that to the test by going it alone.

"I sincerely hope they don't end up finding this out the hard way, having done untold damage to themselves and to racing."