10 AnnuAl RepoRt 2010 10 HRI ANNUAL REPORT 2010 HORSE RACING IRELAND ANNUAL REPORT 2010 10 01 10 02 HRI ANNUAL REPORT 2010 CONTENTs 04 MIssION Statement 06 CEO, Board MEMBERs & COMMITTEEs Of HRI 08 CHAIRMAN’s REPORT 10 CHIEf ExECUTIvE’s REPORT 12 fINANCE REvIEW 14 MARkETINg REvIEW 16 TOTE REvIEW 17 HRI racecoursEs 19 IRIsH THOROUgHBREd MARkETINg REvIEW 20 2010 racing REvIEW 25 audITEd gROUP fINANCIAL statementS 57 PHOTOgRAPHy details ▼ 03 MISSION STATEMENT To develop and promote Ireland as a world centre of excellence for horse racing and breeding. In identifying its mission statement, Horse Racing Ireland (HRI) has placed emphasis on Ireland’s position in both the international horse racing and breeding industries and the quality of the product being offered to the racegoing public. The continuity of funding necessary to develop strategies to achieve the mission is the key 2010 element of the HRI Strategic Plan. REPORT The claim to be a world centre of excellence is a realistic one and the benefits of the strategies pursued to achieve the mission will be reflected in the economic, cultural and social environment of the country. HRI ANNUAL This mission gives expression to the values and sense of purpose of the organisation. 10 04 ▼ 05 CEO, board MEMBERs & COMMITTEEs Of HRI 2010 REPORT HRI ANNUAL briaN KaVaNagH FR aNCIS HYLaND MICH aEL HICKEY JOHN M cSTaY JOHN M OLONEY WILLI aM FLOOD Denis B rosnaN 10 CEO, bOard mEmbErs & AppoiNtmENts & RemuneratiON COmmittEE committEEs Of hri denis brosnan Chairperson John Power Roddy Ryan HRI bOARD audit COmmittEE denis brosnan Chairperson Jim Nicholson Chairperson John mcstay Vice Chairperson Francis Hyland Racing Regulatory Body Liam Madden Mary O’Connor bernard Caldwell Representative of persons employed directly in the industry BookmakErs COmmittEE mary O’Connor Chairperson Noel Cloake Representative of persons employed Bernard Caldwell in the industry Raymond Horan William flood Racing Regulatory Body fairyhOusE COmmittEE Joe hernon Breeders Pat byrne Chairperson Michael J Murphy michael hickey Racing Regulatory Body Noel Meade francis hyland On-course Bookmakers Bernard Caldwell Eamon Duignan Noel meade Trainers Joe Keeling John moloney Racecourses Dara Mullen Jim Nicholson Representative of persons in the fiNance COmmittEE industry in Northern Ireland denis brosnan Chairperson John McStay mary O’Connor Racing Regulatory Body John Power John Power Owners Roddy Ryan John Moloney roddy ryan Racing Regulatory Body Brian Kavanagh 06 NOEL MEaDE JOE HERNON JOHN POWER BERN aRD CaLDWELL RODDY RYaN M aRY O’CONNOR NOEL clo ake JIM NICHOLSON ▼ Foal lEvy COmmittEE John Osborne tOtE COmmittEE bernard Caldwell Chairperson Michael Hickey Jim Nicholson Chairperson Roddy Ryan Brian Kavanagh James Murphy lEOPardstown COmmittEE Pat garvey Joe Foley dave mcGrath Chairperson Pat Kenny Ignatius geraghty gerry Magee Pat Keogh Edmund Loder Tom Taaffe Imelda Hurley William Flood John Oxx Noel Meade Liam Madden HRI NOmiNATIONs / aPPOiNTMENTS David allman fixturEs COmmittEE Mary O’Connor COrk John mcstay Chairperson Jim Mulqueen Joe Walsh Chairperson Noel Cloake Raymond Horan Noel Meade mEdia riGhts COmmittEE Sue Phelan John moloney Chairperson duNdalk John Power Mary O’Connor Philip Furlong John Moloney John Power Ciaran Kennelly William Flood Eamon McIlroy NAVAN COmmittEE HRI RACECOURSEs bOARD William flood Chairperson irish Equine CENtrE denis brosnan Chairperson Noel Cloake Joe Hernon William Flood Janet Williamson Margaret Davin Joe Walsh Michael Cunningham Marcus Swail Pat Byrne Jimmy Owens Dave Mcgrath Donal Matthews PuNChEstown Tim Hyde Deirdre McFadden david mongey Chairperson Brian Kavanagh Ruairi O’Coileain Sandy Persse Dick O’Sullivan ITM COMMITTEE PrOGRAMMEs COmmittEE Nyall Speirs Joe hernon Chairperson John mcstay Chairperson Joe Osborne Noel Cloake RACE David O’Loughlin Joe Hernon Bernard Caldwell Janet Williamson Noel Meade Margaret Davin Jim Martin William Flood David Wright Joe Foley John Power Noel Meade John Moloney all details correct as of publication date 07 CHAIRMAN’s REPORT I am pleased to present the 2010 annual Report for is precisely the kind of industry which Ireland needs to Horse Racing Ireland. as in 2009, we are faced with the sustain and develop as part of the economic recovery. cold reality of the downturn and its continuing effects on the industry. Most of the key performance indicators This industry can only develop, if it has the certainty of continued to show declines: prize-money, sponsorship, funding and planning which Horse Racing Ireland was ownership and the number of horses in training were established to deliver. at its establishment date, the amongst the worst affected. The slight improvement duty on betting was 5% which fully financed the Horse in racecourse attendances together with the slight and greyhound Racing Fund. The reduction of that lift in bloodstock sales and inward investment was duty to 1% and the duty lost due to migration of bets 2010 welcomed. This good news however is still far from a to off-shore bookmakers and betting exchanges has true sign of recovery. meant the exchequer subvention to the Fund cannot be sustained in the longer term. REPORT Irish horse racing and breeding - one of Ireland’s oldest and most productive industries - remains under We welcome the government’s commitment to betting threat from the combined effect of the recession and duty as the basis of the Horse and greyhound Racing continuing reductions in the Horse and greyhound Fund and to addressing the imposition of duty on online Racing Fund. The fund, split 80:20 between horses and and off-shore betting on an equal basis with high street € € HRI ANNUAL dogs, has been reduced to 57.3m (2011) from 76.3m in bookmakers. Horse Racing Ireland supports this position 2008. The resultant cuts across the board in the industry and will assist Ministers and Department officials with have had knock-on effects, including an estimated 2,000 the implementation of that plan in any way possible. job losses. The fall in prizemoney has seen Ireland’s attractiveness as a place to train and race horses drop In presenting these financial statements I would like 10 down the world rankings and the racecourse sector has to thank all of my colleagues on the Board of Horse had no capital development funding support to improve Racing Ireland, together with those who have given its infrastructure over the last two years. generously of their time to serve on subsidiary Boards and Statutory and advisory Committees. I also thank The Dukes Report in 2009 established that the chief executive Brian Kavanagh and his executive team, thoroughbred industry was contributing over €1 billion who carry out the day to day tasks of the management annually to the Irish economy, with at least 16,000 and administration of Irish Horse Racing. The Board jobs and a national network of racecourses, breeders, and executive team have shown great dedication to trainers and farms which sustain a unique skills base, the task of carrying the industry through these difficult mostly in rural Ireland. It is one of the things we are and challenging times and in planning for the future best known for internationally and Irish horses are growth and vitality of our industry encompassing both now exported to 40 countries worldwide, notably breeding and racing. with growing awareness and interest from the fast developing economies of Russia, India and China. This denis brosnan 08 ▼ 09 CHIEf ExECUTIvE’s REPORT The year 2010 began and ended with harsh weather year. Despite the downturn, we remain Europe’s leading conditions, bringing about a number of major race producer of thoroughbred foals and export up to half cancellations, which added to an already challenging of our produce, underlining the fact that thoroughbred environment for racecourses. Despite some tentative horses are one of the most dynamic aspects of Ireland’s signs of levelling out, the drop in participation in racing livestock industry, with an earning potential of up to which we saw in 2008 and 2009 continued in a number €200 million annually. of important sectors. We have worked with representatives of all political The two figures which gave some small cause for parties to convey the very real threat to the industry optimism were racecourse attendances and bloodstock as a result of reducing funds continuously. There has 2010 sales. The attendances average of 3,586 was the same been and is still broad acceptance that the fall-off in as the previous year and bloodstock sales at €68 betting duty revenues and the resultant need for direct million were marginally ahead of 2009. exchequer support for the Horse and greyhound Racing REPORT Fund is untenable over time. a realistic tax regime is the areas where we saw declines were: goal of all parties. This can only be based on a solution • On-Course Betting, down 10% to €164 million which needs to have betting duties for both online and • Prize Money, down 13% to €47 million telephone betting as well as exchange betting on an • Sponsorship, down 32% to €5 million equal basis to how the high street shops are charged. HRI ANNUAL • Average number of horses in training, down This should secure a situation where racing is self- 11% to 5,769 financing for the future and all sectors of the betting • Total Number of Owners, down 9% to 4,667 industry are giving a return to the Irish Exchequer. The fall in participation was most evident in the Despite the air of gloom which racing felt as keenly 10 number of new owners, which has now almost halved as the rest of the nation, 2010 was a year of great since 2007 from 1,449 to 776 and the total number of achievement on the racecourse at home and abroad. horses in training figure which was down from 12,188 in Willie Mullins had a remarkable year, being crowned 2007 to 11,136.