NORTH WEST (SLIGO/LEITRIM/ DONEGAL) THE ECONOMIC IMPACT OF BREEDING AND RACING IN YOUR REGION - Horse Racing Ireland
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NORTH WEST (SLIGO/LEITRIM/ DONEGAL) THE ECONOMIC IMPACT OF BREEDING AND RACING IN YOUR REGION
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: NORTH WEST
NORTH WEST
(SLIGO/LEITRIM/DONEGAL)
DONEGAL
DERRY
ANTRIM
TYRONE
FERMANAGH
ARMAGH DOWN
SLIGO
REGIONAL SUMMARY SLIGO
MONAGHAN
LEITRIM
120 Direct, indirect CAVAN
and secondary MAYO
LOUTH
employment ROSCOMMON
LONGFORD
19,072 Attendees MEATH
WESTMEATH DUBLIN
at racing
GALWAY
€12m Total direct and
OFFALY
stimulated
expenditure KILDARE
LAOIS WICKLOW
CLARE
CARLOW
TIPPERARY
KILKENNY
LIMERICK
WEXFORD
KERRY
WATERFORD
CORK
Racecourses
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WEST 3
FOREWORD
THE NORTH WEST FEATURES ONE OF THE COUNTRY’S MOST
SCENIC AND PROGRESSIVE RACECOURSES IN COUNTY SLIGO.
IT’S THE CENTREPIECE OF THE RACING AND BREEDING IN THE
REGION AND HELPS FUEL AN INDUSTRY SUPPORTING OVER 120
JOBS AND OVER €12m IN ANNUAL EXPENDITURE. THE REGION IS
QUICKLY GAINING A REPUTATION FOR PRODUCING TOP QUALITY
RIDERS WITH A RECENT AINTREE GRAND NATIONAL WINNER
FROM SLIGO AND A YOUNG CHAMPION JOCKEY FROM DONEGAL.
4 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WEST
NORTH WEST
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 plays an important role overview of the contribution of horseracing
Racing Industry in the North West, for the first in the rural economy of the North West region, to the counties of Sligo, Leitrim and Donegal.
time capturing the contribution this industry contributing over 120 jobs in direct, indirect This is followed by an overview of the Irish
makes to life – social and economic – in and secondary employment, and over €12m of Breeding and Racing industry including the
counties Sligo, Leitrim and Donegal. expenditure per annum. economic impact of the industry and the
success of the industry on an international
Two years ago, in spring 2017, Horse Racing The popularity of Sligo racecourse continues scale.
Ireland commissioned Deloitte to quantify the to grow, backed up by an impressive period of
up-to-date economic impact of Irish Breeding improvements of the track and the enclosure, This document
and Racing, and Deloitte’s report confirmed and the growing popularity of Racing and incorporates
the incredible dividend provided by the Breeding in the North West can be seen by summarised findings
industry with almost 29,000 direct and indirect over 50 registered mares last year and local from the Economic
jobs across the country, and over €1.8 billion riders winning championship titles and even Impact of Irish Breeding
in expenditure. the Aintree Grand National. and Racing 2017.
From that report in 2017 – a summary It all makes more relevant the issue of a long- The full report can be
of which is contained at the back of this term and sustainable funding structure for downloaded at https://www.
document – we were able to measure the the industry, which can allow it develop to its hri.ie/press-office/economic-impact/
phenomenal international success of Irish- full potential, increasing both the economic
bred horses and its export reach. and social dividend for the North West region,
and to that end we would ask politicians from
Domestically, the report calculated that 92% all parties to provide the necessary policy
of the 6,777 registered breeders in the country support for this to happen.
have fewer than five mares, and with breeders
in every county, trainers in most counties and Brian Kavanagh
26 racecourses dotted around the country, Chief Executive
it made sense to dig deeper and assess the Horse Racing Ireland
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: NORTH WEST 5
REGIONAL SUMMARY:
NORTH WEST
120
DIRECT, INDIRECT AND SECONDARY
19,072
ATTENDEES AT RACING
EMPLOYMENT
€12m
TOTAL DIRECT AND STIMULATED
EXPENDITURE
6 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WEST
NORTH WEST
THE NORTH WEST REGION While the North West region currently has a The presence of Sligo racecourse is
small Breeding and Racing industry compared particularly important, being the main
COVERS THE THREE COUNTIES to other parts of Ireland, it does however, have link between the local population and
OF SLIGO, LEITRIM AND activities across all segments of the industry thoroughbred racing. It is the most significant
indicating clear scope for development. economic contributor to the breeding and
DONEGAL. SLIGO RACECOURSE racing industry in the region apart from
IS THE CENTRE OF THE The industry is responsible for over 50 expenditure generated from betting.
full-time roles in the North West, with more
INDUSTRY. individuals involved when part-time positions A total direct expenditure of €6m is estimated
are also included. In addition, there are a to be generated in the region each year, the
further 225 individuals employed in LBOs largest components being betting related
(Licensed Betting Offices) where racing expenditure of €3m and racecourse and
remains the primary product. related off-course expenditure of €2m.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WEST 7
NORTH WEST
Indirect Direct RACECOURSE
Sligo
1 1
CODE
Flat and Jumps
6 €12m 6 €6m 1
ATTENDANCES 2018
3
19,072
FIXTURES 2018
Owners Betting
8
Racecourse Off-course AVERAGE ATTENDANCE 2018
2,384
This €6m of direct expenditure in turn leads RACECOURSE The two-day meeting in early August shortly
to an additional indirect expenditure of €6m, Sligo Racecourse is a particularly scenic after the Galway Festival is one of the track’s
composed of the secondary business-to- racing venue in the North West. Traditionally busiest days. A series of theme days are also
business spending of suppliers to the core a summer venue, the majority of meetings staged to appeal to fans of other sports with
Breeding and Racing industry and secondary at Sligo are held in the evening making the days designated to the GAA, Sligo Rovers,
consumer expenditure, as those people racecourse popular with locals and tourists Sligo Rugby and the Ladies Gaelic Football
working in the core industry spend their wages alike. Sligo’s eight fixtures attract almost Association. Other notable fixtures include
on local goods, services and amenities. This 20,000 attendees each year, with an estimated the glamourous Belfry Day, a Family Fun Day,
results in a total economic impact of €12m. expenditure of c.€1m attributable to their Best Dressed Ladies Day and Students’ Day.
on-course activities. The main components of
The core racing industry is estimated to this are the general admissions and catering
employ around 50 people (FTE) in the North spend of racegoers, alongside media rights
West region. payments for provision of pictures to the
betting industry.
8 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WEST
The largest infrastructure project to have
taken place at Sligo in recent years is the
c.€100,000 track drainage upgrade, guarding
and soil racing surface.
With both Flat and National Hunt races taking
place, the racecourse provides important
opportunities for connections to run their
horses locally. Trade in the locality will also
increase on racedays as racegoers incur
expenditure in local shops, pubs, bars and
restaurants, with connections of runners
from elsewhere in Ireland also often staying
overnight in local hotels.
SLIGO RACECOURSE The numbers directly employed by the
Beginning in late April and running through racecourse rises to 41 on a raceday and
Sligo racecourses’ eight to mid-September, Sligo Racecourse is host the bar and restaurant concession holder,
fixtures attract almost to eight race meetings a year. August is the
racecourse’s busiest month with a two-
Michael O’Hehir of the Glasshouse Hotel and
O’Hehir’s Bakery, brings in an additional 25
20,000 attendees each year. day fixture hot on the heels of the Galway people to staff the restaurant and bars.
Festival complimented by a stand-alone
meeting two weeks later. Locals Michael Walsh and Durkin Brothers
Electrical provide raceday plumbing and
Kathryn Foley, as racecourse manager, electrician services while Leslie Farm
is the only full-time employee but she Supplies of Rathcormack, County Sligo
is supported by a grounds’ foreman and supplies stable bedding for each of the
an enclosure caretaker, two part-time runners, of which there were 520 in 2018.
positions. The racecourse provides further In all, County Sligo Races has in excess of
employment to four casual track workers. 100 suppliers to call upon.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WEST 9
NORTH WEST
Stallions Mares Foals
3 53 29
BREEDING
The Irish Breeding industry is the first step
in the ‘production line’ of racing. Nearly
40 breeders are located in the North West,
with any bloodstock sale proceeds flowing
back to the region each year. Breeders are
spread across the three counties, and their
expenditure and associated employment form
an important part of the local economy.
The region has over 50 broodmares,
producing c.30 foals p.a., with the majority Breeding revenue in the HORSES IN TRAINING
of these sold as foals or yearlings unless
remaining in the region for breeding
North West is generated 30
purposes. predominantly from the TRAINERS
Breeding revenue in the North West is mainly
bloodstock sales of 7
generated from bloodstock sales, but a c.40 breeders located in OWNERS TOTAL EXPENDITURE
small number of stallions also stand in the
region who will also generate expenditure via
the region. €1m
nominations. TOTAL PRIZE MONEY WON
€0.1m
10 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WESTNORTH WEST
OWNERS AND TRAINERS
Racehorse owners represent the largest MARK MCNIFF – STRANDHILL
single contributors to the Breeding and Racing Mark McNiff is based in Strandhill, County
industry via their purchase of bloodstock and Sligo and trains a string of 20 horses.
subsequent expenditure on keeping horses Working alongside him are two full-time
in training. As well as supporting trainers staff and the team also includes one part-
and jockeys, other industries throughout the time employee.
Irish rural economy such as vets, farriers and
transport companies also ultimately rely on “Our owners come from all over. We train
the expenditure of Owners. for a few based across the border in the
North, we have an English owner, a couple
Horses in Training of syndicates and the local racing club has
There are over 30 horses in training in the a horse or two with us,” says McNiff who
North West region, mostly National Hunt enjoyed his first winner, Allen Diamond, at
horses. This number represents the number Sligo Racecourse in early May 2008.
declared in training at some point of the
year, so the total number of horses based at The “keeping it local” theme remains to Our owners come from
training yards is likely to be higher than this
as horses are only required to be registered in
this day as the vast majority of the services
used by McNiff are sourced in County
all over. We train for a few
training just before being entered for a race. Sligo. He uses local veterinary surgeons in based across the border in
There is a direct correlation between the
Collooney and Dromore while bedding for
the stables comes from McHales Sawmills
the North.
number of horses in training and the number in Hazelwood.
of registered trainers, with c.7 trainers
registered implying an average number of Leslie Ward Farm Supplies in Rathcormack
horses in a yard in the North West of around is the source of the stable’s feed while tack
five. Due to the relatively small size of yards comes from the well-known regional co-
compared to other regions, trainers will often op, Aurivo. McNiff reaches a little further
supplement their income with agricultural afield for his farrier who is John McDaid in
activities due to their rural location. Letterkenny.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WEST 11NORTH WEST
Owners’ costs and prize money EMPLOYMENT The single largest industry employer is Sligo
After bloodstock purchases, the majority of The core racing industry is estimated to racecourse, which has both permanent office
the expenditure of racehorse owners goes employ around 50 people (FTE) in the North staff and a track team. On race days dozens
to trainers. The trainers then pass it on to West region. These are split approximately of other individuals are employed to operate
other stakeholders both within the core racing as below: turnstiles, sell race cards, provide security,
industry and elsewhere in the local economy. run bars and a restaurant and perform other
Role FTE important auxiliary roles.
The total owners’ expenditure for horses
Trainers and stable staff 15
trained in the North West is estimated as In addition to the core industry, there are
c.€0.5m, with the net amount reducing Breeders 15 individuals employed in activities which, whilst
slightly as some is recouped as prize money. being reliant on the Breeding and Racing
Racecourses 20
industry, will also serve other economic
(including on-course betting and catering)
Financial return is not the main driver of sectors. Estimated at c.30 FTE positions in
racehorse ownership, either in the North TOTAL 50 the North West, these will include vets and
West or any other region, with most owners farriers in addition to those working in other
not expecting to recoup their acquisition or sectors such as leisure and hospitality.
training costs. However, prize money plays an
important role in both attracting new owners Whilst the c.50 roles described above are Full Secondary employment represents those jobs
and keeping existing ones by ensuring owners Time Equivalents (FTE), due to the seasonal which are supported by the spending of the
feel they are being fairly treated, the sport nature of the Breeding industry and event- core industry participants in other areas of
largely being built on their investment. focussed nature of racing these include a the economy. This will include, for example,
considerable number of part-time roles. As people employed in the service industry who
such the total number of individuals with serve racing’s participants as they spend their
some form of employment in the core industry wages in shops, bars and restaurants.
is likely to be significantly more than this.
Approximately 225 individuals are also
employed in LBOs (Licensed Betting Offices)
in the three counties. Whilst the staff in LBOs
also take bets on other sports, racing remains
the primary product, even more so around the
time of Festivals such as Galway.
12 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WESTIrish Breeding and Racing Industry core,
directly related, secondary and betting
employment
250 225
Total
200 345
150
100 OISIN AND CONOR ORR – RATHMULLAN Orr began his career with Group 1 winning
50 Hailing from County Donegal, Oisin Orr trainer Eddie Lynam and rode his first
40 is an up-and–coming star in Flat race winner at the all-weather track at Dundalk
50 30
riding. Crowned champion apprentice at in early 2015. His first high-profile success
the conclusion of the 2017 Flat season, came at Leopardstown on Longines Irish
0 Core Directly Secondary Betting
Industry related
Oisin has since forged links with leading Champions Weekend in September of the
trainer Dermot Weld on the Curragh, an following year when he won the €150,000
Source: HRI; Deloitte analysis. association that has already provided Irish Stallion Farms EBF Petingo Handicap
him with his most notable success on the on the Tony Martin-trained Quick Jack. He
racecourse earlier this year. rode 20 winners in the 2017 season to be
The Breeding and Racing crowned champion apprentice and has not
industry contributes The 21-year-old Rathmullan man carried
the world-famous racing silks of Prince
looked back since.
approximately 120 jobs Khalid Abdullah to success on the four- Oisin’s older brother Conor is making a
in direct, indirect and year-old filly Imaging in the Group 3
Gladness Stakes at Naas in early April.
strong career for himself in the Jumping
sphere. His first winner came in England a
secondary employment in It was his first Group winner, a notable week before Oisin’s initial winner at Dundalk
the North West. milestone for every jockey. and his move back to Ireland late last year
continues to pay off as he cements links with
an ever-increasing list of trainers.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WEST 13NORTH WEST
CAPITAL EXPENDITURE These upgrades include the upgrading and Breeding and Racing industry capital
Up to €4m is estimated to have been invested remodelling of the first floor bar in the main expenditure 2007-2016 (€m)
in capital projects in the North West in grandstand to increase customer capacity
the last 10 years, primarily on racecourse by 40%. Other significant works include the
improvements (€3m). The predominantly renovation of the bar and restaurant, the
rural location of the racecourse and breeding creation of an indoor play area, upgrading 1.0
and racing facilities also means that capital of the Owners and Trainers bar and a new
projects provide significant opportunities, entrance building with turnstiles and toilets.
and subsequent employment, for local
construction and development firms. The most ambitious part of Sligo’s
€4m
development plans, is the construction
At Sligo racecourse the first stage of a capital of a new two-storey hospitality building
development project costing in the region of overlooking the parade ring and track, which 3.0
€2.5m was completed in 2013 comprising a will house a public restaurant on the top level
new Grandstand and several other ancillary and bar and hospitality facilities on the ground
facilities. floor with an extensive viewing area.
Racecourse Breeders
The racecourse is also planning a series of
upgrades costing up to €2m. At Sligo racecourse the Source: HRI; Deloitte analysis.
first stage of a capital
development project
costing in the region of
€2.5m, was completed
in 2013.
14 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WESTTHE 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: NORTH WEST 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: NORTH WEST
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: NORTH WEST 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: NORTH WESTThe 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: NORTH WEST 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: NORTH WESTBREEDING 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: NORTH WEST 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: NORTH WESTHORSE RACING IRELAND ECONOMIC IMPACT STUDY: NORTH WEST 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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