CARLOW/ KILKENNY
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: CARLOW/KILKENNY DERRY CARLOW/ DONEGAL ANTRIM
TYRONE
KILKENNY FERMANAGH ARMAGH DOWN
MONAGHAN REGIONAL SUMMARY SLIGO
LEITRIM c,2,400 Direct, indirect CAVAN and secondary MAYO LOUTH ROSCOMMON employment LONGFORD
48,468 Attendees MEATH at racing WESTMEATH DUBLIN
€123m Total direct and GALWAY stimulated OFFALY
expenditure KILDARE
€27m Bloodstock sales LAOIS WICKLOW by vendors CLARE
CARLOW TIPPERARY GOWRAN PARK KILKENNY LIMERICK WEXFORD
KERRY
WATERFORD
CORK
Racecourses
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY 3 FOREWORD
BREEDING AND RACING ENJOYS A RICH TRADITION OF SUCCESS IN CARLOW AND KILKENNY. AS WELL AS SUCCESS ON THE TRACK AND IN THE BREEDING SHEDS, THE INDUSTRY PROVIDES AROUND 2,400 JOBS IN THE REGION AND OVER €120m IN ANNUAL EXPENDITURE. THE COUNTIES FEATURE SOME OF THE MOST ICONIC STUDS AND TRAINING ESTABLISHMENTS IN EUROPE AS WELL AS A POPULAR RACECOURSE AT GOWRAN PARK.
4 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY CARLOW/KILKENNY
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 overview of the contribution of horseracing Racing Industry in Carlow and Kilkenny, for the rural economies of Carlow and Kilkenny, to the counties of Carlow and Kilkenny. the first time capturing the contribution this contributing around 2,400 jobs in direct, This is followed by an overview of the Irish industry makes to life – social and economic – indirect and secondary employment, and over Breeding and Racing industry including the in those counties. €120m of 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 There is a rich history of Breeding and Racing scale. Ireland commissioned Deloitte to quantify the in this area, one that the people of Carlow and up-to-date economic impact of Irish Breeding Kilkenny should feel very proud of, and that This document and Racing, and Deloitte’s report confirmed tradition of excellence has fuelled a vital rural incorporates the incredible dividend provided by the industry. summarised findings industry with almost 29,000 direct and indirect from the Economic jobs across the country, and over €1.8 billion It all makes more relevant the issue of a long- Impact of Irish Breeding in expenditure. term and sustainable funding structure for and Racing 2017. the industry, which can allow it develop to its From that report in 2017 – a summary full potential, increasing both the economic The full report can be of which is contained at the back of this and social dividend for Carlow and Kilkenny, downloaded at https://www. document – we were able to measure the and to that end we would ask politicians from hri.ie/press-office/economic-impact/ phenomenal international success of Irish- all parties to provide the necessary policy bred horses and its export reach. support for this 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: CARLOW/KILKENNY 5 REGIONAL SUMMARY: CARLOW/KILKENNY
c.2,400 48,468 DIRECT, INDIRECT AND SECONDARY ATTENDEES AT RACING EMPLOYMENT
€123m TOTAL DIRECT AND STIMULATED EXPENDITURE €27m BLOODSTOCK SALES BY VENDORS
6 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY CARLOW/KILKENNY
THE CARLOW AND KILKENNY The presence of Gowran Park racecourse in industry does not only contribute directly to the region provides the opportunity for the the local economy through the c.1,000 full REGION HAS A RICH HISTORY local community to regularly attend fixtures, time jobs that it supports, but also through IN THE BREEDING AND RACING whilst the Point-to-Point industry is also well the many ancillary suppliers that rely on the represented, both in terms of racing staged industry for the majority of their business. INDUSTRY, BEING RECOGNISED and also the production of horses that develop FOR THE BREEDING AND into top quality National Hunt horses under A total direct expenditure of €60m is Rules. estimated to be generated in Carlow and TRAINING OF BOTH FLAT AND Kilkenny each year, the majority of which NATIONAL HUNT HORSES. In predominantly rural regions such as comes from Breeding operations €34m (57%) Carlow and Kilkenny the Breeding and Racing and owners expenditure €20m (33%).
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY 7 CARLOW/KILKENNY
Indirect Direct Gowran Park also supplements its racing 2 1 income by running a golf course at the same 3 site, the horseracing asset thus creating further expenditure in the region.
63 €123m 60 20 €60m The course attracts almost 50,000 attendees at its 18 fixtures, with an estimated 34 expenditure of €3m attributable to their on-course activities. The main components of this are the general admissions and catering spend of racegoers, alongside media rights Breeders Betting payments for provision of pictures to the Owners Off-course betting industry. In addition to the direct Racecourse on-course expenditure, racing in Kilkenny generates approximately €1m of off-course expenditure as racegoers spend money in The €60m of direct expenditure in turn leads RACECOURSES local pubs, bars and restaurants before and to an additional indirect expenditure of €63m, Gowran Park in Kilkenny is renowned as one after racing. composed of the secondary business-to- of the most scenic racecourses in Ireland. It business spending of suppliers to the core regularly hosts high-profile races over Jumps Fixtures staged at the region’s three point- Breeding and Racing industry and secondary and on the Flat throughout the year, feature to-point tracks and owners’ costs of keeping consumer expenditure, as those people races including the Goffs Thyestes Chase, pointers in training will also incur expenditure working in the core industry spend their John Mulhern Galmoy Hurdle, Red Mill Trial across the two counties. wages on local goods, services and amenities. Hurdle and Red Mills Chase. This results in a total economic impact for Carlow and Kilkenny of €123m. The track also plays its part in signalling the start of the National Hunt season with a two- The core racing industry is estimated to day festival in October. Legendary National employ approximately 1,000 people (FTE) in Hunt horses Arkle and Flying Bolt are two of Carlow and Kilkenny. the many top class runners to have appeared at Gowran Park.
8 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY CARLOW/KILKENNY
RACECOURSES Gowran Park
CODE Stallions Nominations Mares Foals Bloodstock Sales Flat and Jumps 30 €6m 1,281 771 €27m
ATTENDANCES 2018 48,468 BREEDING a proportion will also remain in the region The primary contributor to the direct as they progress into racing and/or breeding FIXTURES 2018 economic impact of the industry in the Carlow careers. 18 and Kilkenny region is the Breeding sector. Total breeding revenue of €34m constitutes The majority of Breeding revenue in the region AVERAGE ATTENDANCE 2018 nearly 60% of direct economic impact, with is generated from bloodstock sales, Carlow 2,693 the majority of this revenue derived from and Kilkenny is home to c.30 stallions, over bloodstock sales (€32m). 13% of the Irish total. These stallions are MAJOR FESTIVALS estimated to generate c.€6m in nomination Thyestes Day The Irish Breeding industry is the first step fees p.a. in the ‘production line’ of racing and is well represented in Carlow and Kilkenny. More Notable breeding operations located in the than 500 breeders are registered in the region include Ballylinch Stud in Kilkenny, Gowran Park in Kilkenny region, representing c.8% of the Irish total. where leading stallion Lope de Vega stands. is renowned as one of the Owned by American businessman John The registered broodmare population of Malone, this represents significant foreign most scenic racecourses almost 1,300 (just under 10% of the Irish total) direct investment in the region. Ballyhane in Ireland. It regularly generates further expenditure in the region Stud in Carlow is another leading breeding and will include some mares owned not only operation, standing a number of top stallions hosts high-profile races by individuals from elsewhere in Ireland including Dandy Man and Elzaam. over Jumps and on the Flat but also internationally. The region’s mares produce more than 750 foals p.a., just under throughout the year. 10% of the Irish crop. Whilst the majority of these will likely be sold as foals or yearlings,
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY 9 OWNERS 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. As well as supporting trainers and jockeys, other industries throughout the Irish rural economy such as vets, farriers and GAIN EQUINE NUTRITION - KILKENNY Glanbia Ireland has a network of 53 retail transport companies also ultimately rely on Based in Kilkenny, GAIN Equine Nutrition stores and also sells to cooperatives, the expenditure of Owners. is the equine feed arm of Glanbia Ireland, wholesalers/private merchants and direct a global leader in nutrition. The company to both studs and racing yards. GAIN Equine Horses in Training produces a range of equine diets across all Nutrition is exported to over 20 countries Of the c.8,700 horses in training in Ireland, sectors, with a particular focus on premium including Britain, France, the Middle East approximately 1,400 (16%) are trained in feeds for horse racing, breeding and high- and Japan. Carlow and Kilkenny, the third largest training performance Sport Horses. region in the country (behind only Kildare and Joanne Hurley, Irish Country Manager Meath/Dublin). This number represents the Founded in 1980, Glanbia Ireland employs of GAIN Equine Nutrition, said, “The number declared in training at some point over 1,800 people across the country thoroughbred sector is vitally important for of the year, so the total number of horses with close to 30 people directly linked to GAIN Equine Nutrition. Racehorse trainers based at training and pre-training yards is GAIN Equine Nutrition portfolio across in Ireland have always been a valued likely to be higher than this as horses are formulation, quality control, manufacturing, customer. The global nature of the racing only required to be registered in training just marketing, sales team and administration. Industry and the success of our customers before being entered for a race. in Ireland and on a worldwide stage has GAIN Equine Nutrition has access to given us the platform to grow our business. There are around 50 trainers located in the some of the highest quality native cereals region, representing c.8% of registered through various contracts offered by Glanbia “We take great pride in providing nutritional trainers in Ireland. Trainers in Carlow Agribusiness to grain growers in their local support and feed for some of the best and Kilkenny train both National Hunt catchment area. GAIN Equine Nutrition is horses in the world. We strive to continually and Flat runners, with some of the best sold across the 32 counties of Ireland. provide a best in class service to trainers known being Willie Mullins – Champion and improve our product offering.” Jumps trainer for the last eleven years
10 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY CARLOW/KILKENNY
and multiple Cheltenham Festival winning trainer – and Joseph O’Brien, trainer of 2017 Melbourne Cup winner Rekindling and a dual Cheltenham Festival winner in 2019.
Legendary Flat trainer Jim Bolger is based in Kilkenny, and several of the leading trainers and jockeys in Irish racing have served as apprentices under him including Aidan O’Brien, AP McCoy and Paul Carberry. Champion racehorses and now leading stallions Teofilo and Epsom Derby winner New Approach were also trained by the Coolcullen handler. The point-to-point industry is also well represented in the region, notable handlers including Aidan Fitzgerald, William Murphy and Shark Hanlon. The total owners’ expenditure for horses in HORSES IN TRAINING Owners’ cost and prize money training in Carlow and Kilkenny, including 1,402 After bloodstock purchases, the majority of point-to-point, is estimated at €26m p.a. the expenditure of racehorse owners keeping Financial return is not the main driver of TRAINERS horses in training goes to trainers. The racehorse ownership, however prize money 50 trainers then pass it on to other stakeholders plays an important role in both attracting new both within the core racing industry and owners and keeping existing ones by ensuring OWNERS TOTAL EXPENDITURE elsewhere in the local economy. owners feel they are being fairly treated, the €26m sport largely being built on their investment. Total prize money earned by horses trained TOTAL PRIZE MONEY WON in Carlow and Kilkenny is estimated at €9m approximately €9m.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY 11 CARLOW/KILKENNY
EMPLOYMENT will also serve other economic sectors. The core industry is estimated to employ Estimated at c.600 FTE positions in Carlow c.1,000 people (FTE) in Carlow and Kilkenny. and Kilkenny, these will include roles such These are split approximately as below: as vets and farriers in addition to those working in other sectors such as leisure and Role FTE hospitality.
Trainers and stable staff 515 A good example of this is George Mullins Jockeys (inc. agents and valets) 40 International Horse Transport, based in County Carlow and regularly transporting Breeders 390 horses to the UK and further afield. Racecourses 15 Irish Breeding and Racing Industry core, Secondary employment represents those jobs directly related, secondary and betting On-course betting (bookmakers and Tote) 10 which are supported by the spending of the employment Racecourse catering 10 core industry participants in other areas of the economy, commonly known as the ‘ripple 1,200 TOTAL 980 effect’. This will include, for example, people 980 Total employed in the service industry in Carlow 1,000 2,515 and Kilkenny who serve racing’s participants 800 Whilst the 980 roles described above are FTE, as they spend their wages in shops, bars 800 due to the seasonal nature of the Breeding and restaurants. Secondary employment is industry and event-focused nature of racing estimated to equal approximately 800 FTE 600 these include a considerable number of positions. 600 part-time roles. As such the total number of individuals with some form of employment in Around 135 individuals are also employed in 400 the core industry is likely to be considerably LBOs (Licensed Betting Offices) in the two more. counties. The staff in LBOs also take bets on 200 135 other sports, but racing remains the primary In addition to the core industry workforce, product. there are a significant number of individuals 0 Core Directly Secondary Betting employed in activities which, whilst being Industry related reliant on the Breeding and Racing industry, Source: HRI; Deloitte analysis.
12 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY CAPITAL EXPENDITURE Approximately €24m is estimated to have been invested in capital projects in Carlow and Kilkenny in the last 10 years, predominantly by Breeders €19m, with smaller amounts on racecourse improvements. CONNOLLY’S RED MILLS – In 2012, Foran Equine, a market leader in Capital expenditure from Trainers is GORESBRIDGE equine healthcare products, was added to estimated to have totalled €4m, sizeable A family firm, established in 1908, Connolly’s the Connolly’s portfolio. yards such as that of Willie Mullins requiring RED MILLS has developed into one of regular upgrades and maintenance to ensure the world’s leading producers of high- Connolly’s RED MILLS houses one of the the facilities are of the highest quality, whilst performance animal feed, pet food and most advanced testing laboratories for considerable amounts will also have been agri products. It continues to be based in ingredient quality and Naturally Occurring incurred on new facilities at the yard of Goresbridge, County Kilkenny and prides Prohibited Substance. The company have Joseph O’Brien. itself on the fact that 50% of the grain used in developed exclusive, ground-breaking all feeds is grown locally in the South East. technology to build a Nutrient Fresh Management System which is key to its Capital expenditure from Since 2015, the global workforce of exporting model. Trainers is estimated Connolly’s RED MILLS has increased by 100, with 320 people currently employed “We remain heavily invested and committed to have totalled €4m, to across the business, 300 of them in Ireland. to our home county of Kilkenny. RED ensure facilities are of the The company’s horse feed products are MILLS is currently exporting to over 70 available in over 70 countries. All Connolly’s countries worldwide, but we remain rooted highest quality. RED MILLS feeds are developed and in rural Ireland and continue to invest in manufactured on site in Goresbridge. research and development at our plant here in Goresbridge, while our new retail In addition to the mill in Goresbridge, the store in Cillin Hill, Kilkenny, represents our business has expanded to include a state- commitment to the local community”, says of-the-art pet food factory and a 3,000 sq. Joe Connolly, CEO of Connolly’s RED MILLS. metre country living superstore in Kilkenny.
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY 13 The predominantly rural location of breeding and racing facilities within the region also means that capital projects provide significant opportunities, and subsequent employment, for local construction and development firms.
Breeding and Racing industry capital expenditure 2007-2016 (€m)
WILLIE MULLINS - CARLOW/KILKENNY Based in Closutton, just outside 1 From Goresbridge, County Kilkenny, Willie Bagenalstown in County Carlow, Willie 4 Mullins is one of the biggest names in Irish Mullins is a significant employer in the area. racing and one of Ireland’s greatest racing His staff count numbers 75, looking after ambassadors. He has been champion in excess of 150 horses all year around. National Hunt trainer in Ireland every year Significantly, approximately 85% of his since the 2008/2009 season and boasts an workforce are living in counties Carlow and €24m overseas record second to none. Kilkenny.
Willie is the winning-most trainer at the Local suppliers play a huge part in the Cheltenham Festival, celebrating at this operation with 90% of bedding supplies 19 year’s Festival his first success in the sourced nearby. Virtually everything else Cheltenham Gold Cup, the biggest race of that comes into the yard is also sourced the week. He has won the Aintree Grand from within the Carlow/Kilkenny region, Racecourse BreedersTrainers National, the Irish Grand National, enjoyed namely all the horse feed, all veterinary major success in France and won Japan’s services, tack and general yard equipment. Source: HRI; Deloitte analysis. biggest jumps’ race, Nakayama Grand The stable’s farrier is Paul Fahey from Jump, in 2013. In all, Willie Mullins has Monasterevin, County Kildare. trained more than 3,000 winners since taking out his trainer’s licence in 1988.
14 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY THE 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: CARLOW/KILKENNY 15 The 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: CARLOW/KILKENNY ECONOMIC IMPACT OF BREEDING AND RACING IN IRELAND
THE TOTAL DIRECT AND Overall economic impact – total impact
Racegoers off-course STIMULATED EXPENDITURE 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. Breeding and Racing stimulated Owners Economic impact Gross €176m expenditure Net €134m Gross €1.05bn The core industry is estimated to generate Net €914m €1.84bn €914m of expenditure into the Irish economy made up of the following components: €86m Secondary 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 off-course betting €378m €803m • Owners incurred gross expenditure of €176m, but received €42m back in
HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY 17 domestic 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: CARLOW/KILKENNY The 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 Bloodstock Total: c.28,900 supplemented by an additional: 2 administration Media Governance and Administration 88 101 Betting - 5,700 directly related roles (i.e. heavily (inc. Education) c.6,000 340 1 reliant on Breeding and Racing but also On-course betting 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 Stable staff - 6,000 betting industry employees, primarily Secondary 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: CARLOW/KILKENNY 19 SUCCESS 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 GBR EXTREMELY COMPETITIVE AT IRELAND Foals Stallions €703m A GLOBAL LEVEL, DESPITE €258m FRA €338m JPN OTHER MAJOR RACING €127m 4,663 €138m AUS NATIONS HAVING MUCH 155 20,600 9,381 4,874 309 LARGER POPULATIONS AND 246 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: CARLOW/KILKENNY BREEDING Percentage of Top 100 rated horses by breeding and training location (%) 2016 Irish thoroughbred breeding is highly successful and influential on the global stage 25% 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: CARLOW/KILKENNY 21 REPORT 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: CARLOW/KILKENNY HORSE RACING IRELAND ECONOMIC IMPACT STUDY: CARLOW/KILKENNY 23 HORSE RACING IRELAND Ballymany, The Curragh, Co. Kildare. Telephone: 045 455 455 Fax: 045 455 456 Email: [email protected]
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