KILDARE THE ECONOMIC IMPACT OF BREEDING AND RACING IN YOUR COUNTY - Horse Racing Ireland
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KILDARE THE ECONOMIC IMPACT OF BREEDING AND RACING IN YOUR COUNTY
CONTENTS FOREWORD 04 REGIONAL ANALYSIS 06 THE ECONOMIC IMPACT 15 OF ONE RACEHORSE ECONOMIC IMPACT OF 17 BREEDING AND RACING IN IRELAND SUCCESS OF IRISH 20 BREEDING AND RACING REPORT PREPARATION 22 METHODOLOGY AND LIMITATIONS 2 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE
KILDARE DONEGAL
TYRONE
DERRY
ANTRIM
FERMANAGH
ARMAGH DOWN
REGIONAL SUMMARY SLIGO
MONAGHAN
LEITRIM
4,735 Direct, indirect CAVAN
and secondary MAYO
LOUTH
employment ROSCOMMON
LONGFORD
229,682 Attendees MEATH
WESTMEATH DUBLIN
at racing
GALWAY NAAS
€421m Total direct and
OFFALY CURRAGH
stimulated
expenditure KILDARE
PUNCHESTOWN
€79m Bloodstock sales LAOIS WICKLOW
by vendors CLARE
CARLOW
TIPPERARY
KILKENNY
LIMERICK
WEXFORD
KERRY
WATERFORD
CORK
Racecourses
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 3
FOREWORD
THERE ARE FEW PLACES IN THE WORLD WITH A BREEDING
AND RACING TRADITION AS RICH AS THAT IN COUNTY KILDARE.
AS WELL AS SUCCESS ON THE TRACK AND IN THE BREEDING
SHEDS, THE INDUSTRY PROVIDES OVER 4,7OO JOBS IN THE
COUNTY AND OVER €420m IN ANNUAL EXPENDITURE. IN
ADDITION TO BEING THE HOME OF SOME OF THE MOST ICONIC
STUDS AND TRAINING ESTABLISHMENTS IN EUROPE, THE
COUNTY FEATURES WORLD-FAMOUS RACECOURSES AT THE
CURRAGH, PUNCHESTOWN AND NAAS.
4 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE
KILDARE
It is a great privilege to introduce Deloitte’s Deloitte estimate in this new report that This document first provides a specific
Economic Impact Study into the Breeding and Breeding and Racing is an integral part of the overview of the contribution of horseracing
Racing Industry in County Kildare, for the first economy of County Kildare, contributing over to the county of Kildare. This is followed by
time capturing the contribution this industry 4,700 jobs in direct, indirect and secondary an overview of the Irish Breeding and Racing
makes to life – social and economic – in this employment, and over €420m of expenditure industry including the economic impact of
county. per annum. the industry and the success of the industry
on an international scale.
Two years ago, in spring 2017, Horse Racing There is a rich history of Breeding and Racing
Ireland commissioned Deloitte to quantify the in this area, one that the people of Kildare This document
up-to-date economic impact of Irish Breeding should feel very proud of, and that tradition incorporates
and Racing, and Deloitte’s report confirmed of excellence has fuelled a vital industry, summarised findings
the incredible dividend provided by the predominantly rural in nature. from the Economic
industry with almost 29,000 direct and indirect Impact of Irish Breeding
jobs across the country, and over €1.8 billion It all makes more relevant the issue of a long- and Racing 2017.
in expenditure. term and sustainable funding structure for
the industry, which can allow it develop to its The full report can be
From that report in 2017 – a summary full potential, increasing both the economic downloaded at https://
of which is contained at the back of this and social dividend for Kildare, and to that end www.hri.ie/press-office/
document – we were able to measure the we would ask politicians from all parties to economic-impact/
phenomenal international success of Irish- provide the necessary policy support for this
bred horses and its export reach. to happen.
Domestically, the report calculated that 92% Brian Kavanagh
of the 6,777 registered breeders in the country Chief Executive
have fewer than five mares, and with breeders Horse Racing Ireland
in every county, trainers in most counties and
26 racecourses dotted around the country,
it made sense to dig deeper and assess the
impact of Breeding and Racing in counties
and regions across Ireland, and explore the
spread of that economic reach.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 5
REGIONAL SUMMARY:
KILDARE
4,735
DIRECT, INDIRECT AND SECONDARY
229,682
ATTENDEES AT RACING
EMPLOYMENT
€421m
TOTAL DIRECT AND STIMULATED
EXPENDITURE
€79m
BLOODSTOCK SALES
BY VENDORS
6 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE
KILDARE
COUNTY KILDARE, All five Irish Classics are run at the Curragh It is not only Flat racing that Kildare is
racecourse and with extensive new facilities renowned for, however, with the County also
‘THE THOROUGBRED COUNTY’, operational from 2019, its worldwide hosting the leading National Hunt festival in
ENJOYS A WORLD RENOWNED reputation will be further enhanced. Ireland at Punchestown in April each year.
The Punchestown Festival attracts
REPUTATION AS THE The Curragh training grounds, the largest considerable international interest from both
SPIRITUAL HOME OF IRISH public training centre in the country, also play the racing industry and racegoers alike, in
a pivotal role in the sport, with thousands turn generating considerable expenditure
FLAT RACING AND CONTAINS of horses being trained on the gallops each both on and off-course.
THREE RACECOURSES – year. Numerous ancillary businesses such
as farriers and vets are also located in the The breeding industry is particularly strong
THE CURRAGH, NAAS AND County as a result. in the county, with considerable expenditure
PUNCHESTOWN being generated from a world class roster
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 7
KILDARE
Indirect Direct RACECOURSES
Curragh, Naas, Punchestown
53 CODE
Flat and Jumps
215 €421m 206
3
€206m
ATTENDANCES 2018
14 112
24
229,682
FIXTURES 2018
Breeders Betting
56
Owners Off-course AVERAGE ATTENDANCE 2018
Racecourse
4,101
of stallions and a strong population of Breeding and Racing industry and secondary MAJOR FESTIVALS
broodmares producing €80m of bloodstock consumer expenditure as those people Punchestown Festival, Irish Derby
each year. The Irish National Stud and working in the core industry spend their Festival (Curragh)
Gardens is also located in Kildare, drawing wages on local goods, services and amenities.
over 125,000 visitors each year alongside This results in a total economic impact on
standing several world leading stallions. Kildare of €421m.
The main components of this are the general
A total direct expenditure of €206m is admissions and catering spend of racegoers
estimated to be generated in Kildare each RACECOURSES alongside media rights payments for provision
year, the largest components being Breeding Kildare’s three racecourses host both Flat and of pictures to the betting industry.
€112m (54%) and off-course racegoer National Hunt racing of the highest quality,
expenditure €53m (26%). comprising the Curragh (Flat), Punchestown The Curragh
(National Hunt) and Naas (Mixed). Together The Curragh is Ireland’s premier Flat
This €206m of direct expenditure in turn these racecourses attract approximately racecourse, hosting 11 Group 1 races
leads to an additional indirect expenditure of 230,000 attendees at over 55 fixtures, with an each year including the five Irish Classics.
€215m, composed of the secondary business- estimated expenditure of €14m attributable to The Curragh has undergone a significant
to-business spending of suppliers to the core their on-course activities. redevelopment, completed in 2019, and now
8 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE
KILDARE
houses world class facilities including a major
new grandstand, arrivals and reception area, MONGEY COMMUNICATIONS – NAAS
parade ring, weighing room and stable yard. Mongey Communications is a family-owned
business, based in Naas, County Kildare,
The Curragh has a number of feature which was established in 1986 by David and
meetings, beginning with the Guineas Cyril Mongey. The brothers have grown and
Festival in May, the Dubai Duty Free Irish developed the business into a cutting-edge
Derby Festival in June and the Sunday of communications technology operation
Irish Champions Weekend in September, the which has a long association with the Irish
pinnacle of the Irish Flat racing season. horse racing and breeding industries. Communications. Services provided to
their horse racing customers include event
Punchestown The company employs 40 full-time staff, control, radio communications, audio visual
Punchestown racecourse hosts the leading 80% of whom are County Kildare-based, equipment, large LED screens and CCTV
National Hunt Festival in Irish racing in April and 20 sub-contractors. Clients in horse solutions.
each year, attracting in excess of 125,000 racing industry include the three Kildare
racegoers over the five days. A significant racecourses of the Curragh, Naas and Mongey Communications is also a high-
portion of attendees come from overseas, with Punchestown. Leopardstown Racecourse is profile sponsor of Irish horse racing,
estimates in the region of 20% (mostly from also on the books as are Fairyhouse, Sligo, backing races at the Curragh, Naas,
Britain). This therefore represents c.20,000 Ballinrobe, Roscommon, Galway, Navan, Fairyhouse and at the annual Irish National
people incurring expenditure not just at the Kilbeggan and Wexford. Hunt Festival at Punchestown Racecourse
racecourse but also in local restaurants, bars where David Mongey has been involved for
and hotels in the county. Goffs in Kill and Newbridge-based Horse 20 years and currently holds the role of
Racing Ireland are also clients of Mongey Chairman.
Due to the scale of the Punchestown Festival
and its international appeal, the majority of
the estimated €53m of racegoer off-course
expenditure in Kildare (almost 40% of the Naas the home to the Grade 1 Naas Novice Hurdle
Irish total) is attributable to this Festival, Naas racecourse also represents an in January and a number of important trial
with accommodation, food and beverage, important part of Kildare’s racing industry, races for the biggest National Hunt racing
transport and attire being the main areas of staging 18 quality fixtures a year, both Flat festivals. On the Flat, the Group 3 Blue Wind
expenditure. and National Hunt. Many of the biggest equine Stakes and the Group 3 Lacken Stakes are two
names come to race at Naas as the course is of the most import races held at Naas.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 9
KILDARE
Stallions Nominations Mares Foals Bloodstock Sales
41 €30m 2,183 1,355 €79m
BREEDING population, contribute over 34% of the total
Kildare is the second largest contributor to nominations income received, the higher than
the direct economic impact of Breeding in average nomination fees reflecting the high
Ireland with total breeding revenue of €112m, quality of stallions based here.
approximately 23% of the total. This revenue
is generated primarily through bloodstock The registered broodmare population of As the epicentre of the Irish breeding industry,
sales €79m and nominations €30m. c.2,200 (17% of the Irish total), considerably Kildare has played an important role in
more than any other county, will also attracting overseas investment. After Britain,
Over 820 breeders (14% of the total in Ireland) generate a significant amount of expenditure the Middle East is the main source of overseas
are registered in Kildare, with leading global in the region. Mare owners not only from investment to the country and Kildare hosts
bloodstock entities having a significant elsewhere in Ireland but also internationally a number of leading international breeding
presence, although there will be a significant opt to keep their mares in Kildare due to operations including Darley, owned by the
number of smaller breeding operators which the ready availability of high quality facilities ruler of Dubai Sheikh Mohammed Bin Rashid
collectively also form an important part of and easy access to world leading stallions. Al Maktoum, and Shadwell, owned by Sheikh
Kildare’s local economy. Kildare’s mare population produces c.1,400 Hamdan Al Maktoum.
foals p.a., 17% of the Irish crop and the most
Kildare is home to over 40 stallions – more of any county.
than any other county in Ireland – including Kildare is home to over
several world leaders based on the success
of their progeny. Notable stud farms include
Goffs, located in Kildare, is the leading
bloodstock auctioneer in Ireland in terms of
40 stallions – more than
Darley’s Kildangan Stud (home to leading the value of bloodstock sold per annum. In any other county in Ireland
stallions Shamardal and Teofilo), the Aga
Khan’s Gilltown Stud (Sea The Stars) and the
2018, €109m of Flat and National Hunt bred
bloodstock passed through the sales.
– including several world
Irish National Stud (Invincible Spirit). Kildare’s leaders based on the
stallions, although forming 18% of the Irish
success of their progeny.
10 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDAREOWNERS AND TRAINERS
Racehorse owners represent the largest
single contributors to the Breeding and
Racing industry via their purchase of
bloodstock and subsequent expenditure on
keeping horses in training via payments to
trainers, jockeys and supporting industries
throughout the Irish rural economy such as
vets, farriers and transport companies. As
the county with the most registered horses NIALL KENNEDY’S EQUESTRIAN Considering the racehorse as an athlete,
in training, Kildare receives a significant LAUNDRY – THE CURRAGH trainers and owners are very conscious of
proportion of the expenditure of owners The Equestrian Laundry was founded by their horse’s wellbeing. The professional
both purchasing, and subsequently training, Niall Kennedy in 1989. Located close to attention provided by Niall’s service, and
thoroughbred horses in Ireland. The Curragh racecourse, it is a dedicated ancillary services like Niall’s, maintains
service to the broad Equestrian community the high standards required in the area of
Horses in Training catering for all sectors – Flat and National health, hygiene and comfort. The laundering,
Of the c.8,700 horses in training in Ireland Hunt trainers, showjumpers, stud farms, disinfection and repair of all horse garments
over 20% (c.1,800) are trained in County veterinary practices and others in the – rugs, saddle pads, girth sleeves, exercise
Kildare. This number represents the number Industry. sheets, etc. are all catered for a skilled staff
declared in training at some point of the of six, and many local trainers avail of the
year, so the total number of horses based at Niall is involved in racing all his life and ‘daily laundering’ service.
training and pre-training yards is likely to be comes from a family with a long tradition
higher than this as horses are only required in the racing world, from his grandfather, ”It can be a challenge to be in a business so
to be registered in training just before being to his dad Vivian, a professional jockey and dedicated to the equestrian world but we
entered for a race. trainer. Niall was an amateur jockey before are very proud of and committed to the Irish
founding the Equestrian Laundry. Equine Industry, which plays such a vital
There are c.80 trainers registered in Kildare part in our locality and our heritage.”
forming c.14% of the total Irish population. “From my experience, I identified the
This is significantly lower than the proportion importance of providing a specialist
of horses in training due to the fact that a service. It has now developed to become an
number of the larger yards with more horses integrated support service to the sector.”
in training than the average are based here.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 11HORSES IN TRAINING
1,840
TRAINERS
81
IRISH NATIONAL STUD Established in 1971, the Irish National Stud OWNERS TOTAL EXPENDITURE
An internationally celebrated stud farm and
tourist attraction on the outskirts of Kildare
Thoroughbred Breeding Course, a full-time
residential course, is renowned for providing
€33m
town and the world-famous Curragh, the world-class training for young people TOTAL PRIZE MONEY WON
Irish National Stud was founded in 1945. interested in a career in the equine industry.
€11m
The company combines four separate but Other educational elements to the Irish
interlinked business operations of stallion National Stud are the Horse Museum, which
services, tourism, education and horticultural features the skeleton of the great Arkle, Trainers in Kildare tend to be Flat focused
activities and employs a full-time staff of 50 and the newly created Irish Racehorse and whilst yards are found across the county
and a permanent part-time staff of two. Experience which will launch in 2020 with the there is a geographical concentration around
backing of Fáilte Ireland and the Department the Curragh. This is mainly due to this being
This number rises between April to October of Agriculture, Food and the Marine. the location of the Curragh training grounds,
each year when approximately 10 temporary the largest public training grounds in Ireland.
tour guides are hired to cater for in excess In 2018 the Irish National Stud Mare Administered by the Curragh racecourse,
of 125,000 visitors to the stud, the famous Syndicate was launched for those who have the training grounds comprise approximately
Japanese Gardens and St. Fiachra’s Garden. dreamed of owning, breeding and selling 1,500 acres including 70 miles of grass
The vast majority of staff are living in Kildare. high quality bloodstock. More recently, gallops as well as artificial surfaces. They are
INS Racing was rolled out with the aim of used on a daily basis by approximately 1,000
Seven stallions will stand at the Irish introducing the sport of horse racing and horses in the care of c.60 trainers.
National Stud in 2019 including Invincible racehorse ownership to a wider audience in
Spirit, one of the leading sires in the world. conjunction with the Ownership Department
The farm is renowned as a major foaling of Horse Racing Ireland.
centre, with close to 250 mares sent to
board at the stud to foal each year.
12 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDAREKILDARE
Horses trained on the Curragh have won EMPLOYMENT In addition to the core industry workforce,
many of the world’s most prestigious races, The core racing industry is estimated to there are a significant number of individuals
both Flat and National Hunt, including the employ up to 1,960 people (FTE) in Kildare. employed in activities which, whilst being
Irish Derby, Epsom Derby, Melbourne Cup, These are split approximately as below: reliant on the Breeding and Racing industry,
Prix de l’Arc de Triomphe, Aintree Grand will also serve other economic sectors.
National, Irish Grand National, Breeders Cup, Role FTE Estimated at c.1,185 FTE positions in Kildare,
Belmont Stakes, Cheltenham Gold Cup and these will include roles such as vets and
Trainers and stable staff 680
Champion Hurdle. farriers in addition to those working in other
Jockeys (inc. agents and valets) 50 sectors such as leisure and hospitality.
Owners’ costs and prize money
Breeders 670
Financial return is not the main driver of
racehorse ownership, however prize money Racecourses 50 Irish Breeding and Racing Industry core,
plays an important role in both attracting new directly related, secondary and betting
Governance and Administration 360
owners and keeping existing ones. employment
On-course betting (bookmakers and Tote) 30
The total owners’ expenditure for horses in 3,000
Bloodstock auctioneers 60
training in Kildare p.a. is estimated as €33m, Total
however an estimated €11m is recouped Racecourse catering 60 2,500 4,930
as prize money (from both domestic and
TOTAL 1,960 1,960
international racing) of the total returned to
2,000
the owners of Irish trained horses.
1,590
After bloodstock purchases, the majority of Whilst the c.1,960 roles described above 1,500
1,185
the expenditure of racehorse owners keeping are Full Time Equivalents (FTE), due to the
horses in training is to trainers. The trainers seasonal nature of the Breeding industry and 1,000
then pass it on to other stakeholders both event-focussed nature of racing these include
within the core racing industry and elsewhere a considerable number of part-time roles.
500
in the local economy. As such the total number of individuals with 195
some form of employment in the core industry
is likely to be significantly more than this. 0 Core Directly Secondary Betting
Industry related
Source: HRI; Deloitte analysis.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 13KILDARE
Secondary employment represents those jobs Ireland, has been at the Curragh. The Curragh
which are supported by the spending of the redevelopment has been funded from a
core industry participants in other areas of combination of the HRI Capital Development
the economy, commonly known as the ‘ripple Scheme and private investment, with a
effect’. This will include, for example, people total cost of €81.5m. It is estimated that the
employed in the service industry in Kildare project, which took place over two years,
who serve racing’s participants as they spend resulted in direct and indirect employment of
their wages in shops, bars and restaurants. c.800 people in the construction industry, with
the majority from the local area. Punchestown
Around 195 individuals are also employed in racecourse has also undergone a recent
LBOs (Licensed Betting Offices) in Kildare. redevelopment, with c.€5m being invested in
Whilst the staff in LBOs also take bets on a new reserved stand enclosure and owners Breeding and Racing industry capital
other sports, racing remains the primary and trainers facility. expenditure 2007-2016 (€m)
product, especially in counties such as Kildare
where the sport is deeply ingrained in the The eye-catching Circle building, is
6
local community. the feature piece at Naas’s extensive
recent redevelopment, a project that has
transformed the enclosure. Renovation works
CAPITAL EXPENDITURE has extended to a number of levels in the 33
Around €114m is estimated to have been
invested in capital projects in Kildare between
main grandstand.
€114m
2007 and 2016, split between Racecourse Estimate of breeders’ capital expenditure
improvements €75m, Breeders €33m and in Kildare over the last decade, to ensure 75
Trainers €6m. The predominantly rural facilities are of the highest standard and
location of breeding and racing facilities within sufficient farm land is available, is €33m.
the county means that capital projects provide This excludes the much larger expenditure on
significant opportunities, and subsequent bloodstock as discussed above.
employment, for local construction and Racecourse Breeders Trainers
development firms. It is estimated that c.€6m has been incurred in
the last decade on training facilities in Kildare, Source: HRI; Deloitte analysis.
More recently, the most significant racecourse with more than €5m of this expenditure on the
development, not just in Kildare but in all new Curragh Training Grounds.
14 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARETHE ECONOMIC IMPACT BREEDERS
OF ONE RACEHORSE TRAINERS
SALES HOUSE EMPLOYEES
OWNERS
FARRIER
EXERCISE
RIDER
JOCKEYS FEED AND
BEDDING
RACECOURSE
STAFF
JOCKEY’S GROOMS AND HORSEBOX
AGENT DRIVERS
VETERINARIANS
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 15The Breeding and Racing industry supports a diverse workforce encompassing the core industry, directly related industries such as vets and farriers and secondary employment. This workforce has a broad geographic spread, with breeders drawn from every county and racecourses and trainers also spread across the island, all supporting jobs in the rural economy. 16 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE
ECONOMIC IMPACT OF
BREEDING AND RACING
IN IRELAND
THE TOTAL DIRECT AND Overall economic impact – total impact
STIMULATED EXPENDITURE Racegoers off-course
expenditure
OF THE IRISH BREEDING Breeding
€145m
AND RACING INDUSTRY WAS Gross €583m Secondary
Net €489m expenditure
ESTIMATED AT €1.84 BILLION B2B
IN 2016, AND WILL BE HIGHER €611m
Core Irish Total direct and
IN 2018. Owners
Breeding and Racing stimulated
Economic impact expenditure
Gross €176m
Gross €1.05bn
The core industry is estimated to generate
Net €134m
Net €914m
€1.84bn
€914m of expenditure into the Irish economy
€86m Secondary
made up of the following components:
consumer
Racecourses
• Breeding contributes €489m through
€316m
public and private sales of bloodstock, €60m
nomination fees and keep costs for mares; Gross value
Government/ Gross value added
added
• Owners incurred gross expenditure
off-course betting
€378m €803m
of €176m, but received €42m back in
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 17domestic prize money, resulting in a net • Secondary consumer expenditure of Overall economic impact of racing consists of:
contribution to the economy of €134m €316m as people working in the core
(not including expenditure on bloodstock); industry spend their wages on other goods • Core industry – expenditure generated
and services within the Irish economy. by Racing’s participants and consumers,
• Racecourses, via the spending by including other administrative media
racegoers, sponsors and commercial organisations which work exclusively in
partners contribute €80m to the core 2016 2018 +/- the Breeding and Racing Industry
industry. Additionally HRI receives direct
Bloodstock sales €318m €352m 10.7%
media and data rights income of €6m; • Other direct impacts – primarily off-course
Horses in Training 8,561 8,688 1.5% expenditure of racegoers e.g. on food,
• Government, via betting tax from off- accommodation, transport. For economic
Owners 3,663 3,817 4.2%
course betting and the subsequent annual modelling purposes this expenditure is
Horserace and Greyhound Fund payment Attendances 1.32m 1.27m -3.5% included in the core industry; and
to HRI, represents a €60m contribution;
Off-Course Betting €51m €52m 3.2%
• Indirect and induced – Indirect = business
Duty Receipts
• Off-course expenditure by racegoers to business expenditure of suppliers
(e.g. on food and drink, accommodation related to the racing and breeding
and transport) is estimated to contribute industry; Induced = additional expenditure
€145m. The data used in this report is from 2016 from consumer spending e.g. individuals
to ensure consistency with the previously working in the Breeding and Racing
This core Breeding and Racing industry input released Economic Impact of Irish Breeding industry spending their wages.
of €914m is then augmented by secondary and Racing 2017. Analysis of changes in key
input of €927m as the initial expenditure metrics from 2016 to 2018 indicate that the • Gross value added – an alternative
filters through the economy, via: economic impact of Irish Breeding and Racing measure of the industry’s contribution
in 2018 would be at least as large as that that can be compared to national
• Secondary business-to-business (B2B) calculated in 2016 with all key metrics, bar indicators such as Gross Domestic Product
expenditure of €611m as businesses attendances, increasing over this period. (GDP), based on data from the Central
supplying the core Breeding and Racing Statistics Office.
industry source their own goods and
services from other providers;
18 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDAREThe Breeding and Racing industry is also a Irish Breeding and Racing industry direct, indirect and secondary employment (FTE) – 2016
significant employer across all regions of
Ireland. Core industry employment of 9,500 is
supplemented by an additional:
Bloodstock
2
Total: c.28,900
administration Media
Governance and Administration 88 101 Betting
- 5,700 directly related roles (i.e. heavily (inc. Education)
340
c.6,000
reliant on Breeding and Racing but also On-course betting
1
serving other sectors) Racecourses
175
333 Caterers
- 7,700 secondary roles (supported by the Jockeys, agents 370
and valets
spending of racing’s participants in other
225 Trainers 3
areas of the economy)
883
- 6,000 betting industry employees, primarily Secondary Stable staff
Directly related
in Licensed Betting Offices (LBOs). c.7,700 2,816 c.5,700
The economic impact of Breeders
Irish Breeding and Racing c.4,100
in 2018 would be at least as
large as that calculated in
2016 with all key metrics
CORE INDUSTRY
Notes:
1. Includes Tote and on-course bookmakers. c.9,500 Source: HRI; Deloitte analysis.
2. Includes Weatherbys Ireland and bloodstock
auctioneers and agents.
3. Includes Public Trainers, Restricted Licence
Holders and point-to-point Handlers.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 19SUCCESS OF IRISH
BREEDING AND RACING
THE IRISH BREEDING Public auction bloodstock values, live foals and standing stallions – 2016
USA
AND RACING INDUSTRY IS Public auction bloodstock sales
IRELAND GBR
EXTREMELY COMPETITIVE AT Foals Stallions
€703m
A GLOBAL LEVEL, DESPITE €258m FRA
€338m
JPN
OTHER MAJOR RACING €127m
4,663
AUS
NATIONS HAVING MUCH 155
4,874
€138m
20,600 9,381
LARGER POPULATIONS AND 246
309 6,564 €323m
ECONOMIES. 1,789 218
12,638
655
Source: Weatherbys; IFHA; HRI; Auction Houses; Deloitte analysis.
20 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDAREBREEDING Percentage of Top 100 rated horses by breeding and training location (%) 2016
Irish thoroughbred breeding is highly
25%
successful and influential on the global stage
in terms of production levels and, more
importantly, quality. 20% 21.1
19.3 19.3
17.4 17.4
Ireland is the second largest producer of 16.5
15% 15.6
bloodstock by value, at approximately €338m 13.8
12.8
in 2016, making up c.18% of bloodstock 11.9
11.0 11.0
auctions from major racing nations. 10%
6.4 6.4
In 2016, the progeny of stallions standing in 5%
Ireland earned in excess of €43m in prize
money, approximately 21% of the global top
0% Ireland USA Japan Great Britain Australia France Other
100 sire earnings, led by the “super sire”
Galileo (€19.9m, 1st overall). Bred Trained Source: IFHA; Deloitte analysis.
RACING
In the 2016 racing season, Irish trained horses While Ireland hosts significantly fewer races
won a total of 29 Group 1 races (Flat) and 47 in a year than other major racing countries,
Grade 1 races (Jump), while taking home and is the only major racing country where
approximately €79m across all races globally. there are more Jump than Flat races, it is still
Examining the top 100 rated Flat horses for well represented in the top rated Flat races
the 2016 season demonstrates the Ireland with the QIPCO Irish Champion Stakes being
is the most successful breeding nation with the equal second highest rated race in the
more than 1 in 5 of the top 100 rated Flat world in 2016.
horses being Irish bred, with approximately
13% also being trained in Ireland.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 21REPORT PREPARATION,
METHODOLOGY AND LIMITATIONS
INTRODUCTION AND SCOPE OF OUR REVIEW publication of this report to persons other the specific region in 2018. Therefore if a region OUR RELIANCE ON INFORMATION
Horseracing Ireland (“HRI”) commissioned than HRI is for information purposes only contained 5% of the horses in training in 2018, In preparing this Report, we have used
Deloitte to produce this Report, which has been and no person other than HRI should place 5% of Owners expenditure was allocated to that information and data extracted from various
prepared in accordance with the contract dated any reliance on this Report; and region (values based on 2016 expenditure). published reports, which we assume to be
8 January 2019. The Report sets out the results reliable, to obtain the inputs into the economic
of research and analysis of the Economic · We do not assume or accept or owe any Racecourses – Expenditure related to on- model which we used to estimate the economic
Impact of the Irish Breeding and Racing responsibility or duty of care to any person course racecourse spend was apportioned to impact of the Breeding and Racing Industry.
Industry on a specific region in the Republic of other than HRI. Accordingly, any person the region in which the racecourse is located. In addition, we have used information and data
Ireland. Separate reports for 13 regions were other than HRI who, contrary to the above, which have been provided to us by a wide variety
prepared in total. chooses to rely on this Report, does so at Betting – The industry’s income from betting of organisations including HRI, other Irish
their own risk and we will not be responsible has been apportioned based on the population racing organisations, overseas Racing bodies,
Details of the methodology of preparing these for any losses of any such person caused by of each region – the more people that live the betting industry and Government sources.
13 regional reports are set out below, but the their reliance on this Report. in a region, the more betting will take place The case studies included in this Report have
overarching principle is to allocate the national there. The population of each region is closely been prepared by HRI.
results of the Economic Impact of Irish Breeding correlated to the number of betting shops in
and Racing 2017 report prepared by Deloitte for METHODOLOGY TO APPORTION NATIONAL each region, which provided another proxy to In all cases, we have relied upon such
HRI between the 13 regions determined by HRI ESTIMATES INTO REGIONS validate this apportionment method against, information and data as being true, correct
(and which exclude Northern Ireland). As noted above this report apportions the albeit not factoring in remote betting which and complete and have not audited, tested or
metrics reported in the Economic Impact of now forms a significant proportion of total checked any such information or data.
Details of the methodology of how the national Irish Breeding and Racing 2017, which reported betting turnover.
economic estimates were derived are set out data relating to 2016, into a specific region.
in the Economic Impact of Irish Breeding and The data in this report therefore related to 2016 Off-course expenditure – the expenditure of SPECIFIC LIMITATIONS OF OUR REVIEW
Racing 2017 (available at www.hri.ie) hence are unless otherwise stated, and the approach racegoers away from the racecourse has been In accordance with our terms of engagement,
not replicated in this Report. to apportionment below has been taken for apportioned according to the proportion of total or due to our findings when performing our
the following areas of expenditure and other racecourse attendance in that region, adjusted work, the following specific limitations should
economic metrics: for the major racing festivals where enhanced be noted. As a simplification of any industry
USE OF THIS REPORT AND LEGAL expenditure per attendee associated with these an economic model of this type can only ever
RESPONSIBILITY Breeding – An analysis of the location within festivals takes place. be expected to represent an approximation
Some of the matters discussed in this Report Ireland of the ultimate vendor of all Irish sales of a real-life outcome. The model relies upon
are by their nature technical. The intended at Tattersalls sales in Great Britain and Ireland Due to the nature of these festivals attracting information provided by stakeholders as well
recipient of the report, HRI, is familiar with the and the major French sales was carried out, racegoers from significant distances (including as data published by the Central Statistics
issues, facts and other matters addressed and so that the proportion of total sales for each overseas) some of this expenditure will actually Office. It is possible that industry linkages have
the Report was written with that in mind. region could be estimated. The proportion was take place in other regions as racegoers travel changed since the publication of the Domestic
then applied to the total Irish sales figure for into transport hubs and stay in hotels etc. Use Matrix, but as the latest available data on
This Report is prepared for the sole and 2016 to give an estimated bloodstock sales However, the level of information available which to base our analysis the data used is the
confidential use of HRI and for the purposes figure for that region. For example if the sales means that analysis to this further level of most appropriate.
set out in the terms of engagement. In analysis showed that the proceeds from 20% detail has not been possible.
preparing this report our only responsibility of Irish horses sold went to a specific region,
and duty of care is to HRI. We did not, and do that region was allocated 20% of the total Irish Indirect expenditure – total indirect EXCHANGE RATES
not by consenting to publication of this Report, sales figure. expenditure calculated in 2016 has been For the purpose of the international analysis
assume or accept or owe any responsibility or apportioned to the specific region in the same and comparisons we have converted the figures
duty of care to any other person. The only exception to this is private sales, where proportion as the direct expenditure of that into euros using the average exchange rate for
known values were allocated to specific regions. region compared to the total expenditure for the respective year ending 31 December.
HRI has asked for our consent to making this The remainder was then apportioned as per the the industry in the Republic of Ireland. For The sterling to euro exchange rate used for
report publicly available by posting it on HRI or public sales methodology described above. example, if a region constitutes 10% of the 2016 was (€1 = £0.79).
other Racing websites, and other appropriate Stallion nomination income was apportioned total direct expenditure of the industry in
distribution methods as agreed with Deloitte. to the region in which the stallion was standing the Republic of Ireland then 10% of the total
We have agreed to provide such consent on the in 2016. indirect expenditure for the country has been
following conditions: apportioned to it. It is therefore possible that for
Owners – The expenditure of Owners on some regions this indirect expenditure may be
· This report may not be suitable for the use keeping horses in training was apportioned significantly over or under stated depending on
of any person other than HRI. Accordingly, based on the number of horses in training in the nature of the local economy.
22 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDAREHORSE RACING IRELAND ECONOMIC IMPACT STUDY: KILDARE 23
HORSE RACING IRELAND
Ballymany, The Curragh, Co. Kildare.
Telephone: 045 455 455
Fax: 045 455 456
Email: info@hri.ie
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