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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

SUCCESS OF IRISH 20 BREEDING AND RACING

REPORT PREPARATION 22 METHODOLOGY AND LIMITATIONS

2 IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN DERRY MEATH/DUBLINDONEGAL ANTRIM

TYRONE

FERMANAGH ARMAGH DOWN

MONAGHAN REGIONAL SUMMARY

LEITRIM 3,300 Direct, indirect CAVAN and secondary MAYO LOUTH ROSCOMMON employment MEATH 280,292 Attendees WESTMEATH DUBLIN at racing FAIRYHOUSE

€215m Total direct and stimulated OFFALY LEOPARDSTOWN

expenditure KILDARE

€21m Bloodstock sales LAOIS WICKLOW by vendors CLARE

CARLOW TIPPERARY LIMERICK WEXFORD

KERRY

WATERFORD

CORK

Racecourses

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN 3 FOREWORD

BREEDING AND RACING ENJOYS A RICH TRADITION OF SUCCESS IN MEATH AND DUBLIN. AS WELL AS SUCCESS ON THE TRACK AND IN THE BREEDING SHEDS, THE INDUSTRY PROVIDES OVER 3,3OO JOBS IN MEATH AND DUBLIN AND GENERATES €215m IN ANNUAL EXPENDITURE. THE FEATURE SOME OF THE MOST ICONIC STUDS AND TRAINING ESTABLISHMENTS IN ALONG WITH A DIVERSE AND POPULAR SET OF RACECOURSES.

4 ECONOMIC IMPACT STUDY: MEATH/DUBLIN MEATH/DUBLIN

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 Breeding and Racing is an integral part of overview of the contribution of horseracing and Racing Industry in Meath and Dublin, for the rural economies of Meath and Dublin, to the counties of Meath and Dublin. This is the first time capturing the contribution this contributing over 3,300 jobs in direct, indirect followed by an overview of the Irish Breeding industry makes to life – social and economic – and secondary employment, and €215m of and Racing industry including the economic in those counties. expenditure per annum. impact of 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 Meath and This document up-to-date economic impact of Irish Breeding Dublin should feel very proud of, and that incorporates and Racing, and Deloitte’s report confirmed tradition of excellence has fuelled a vital rural summarised findings the incredible dividend provided by the industry. 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 to develop to The full report can be From that report in 2017 – a summary its full potential, increasing both the economic downloaded at https:// of which is contained at the back of this and social dividend for Meath and Dublin, www.hri.ie/press-office/ document – we were able to measure the and to that end we would ask politicians from 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 , 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: MEATH/DUBLIN 5 REGIONAL SUMMARY: MEATH/DUBLIN

3,300 280,292 DIRECT, INDIRECT AND SECONDARY ATTENDEES AT RACING EMPLOYMENT

€215m TOTAL DIRECT AND STIMULATED EXPENDITURE €21m BLOODSTOCK SALES BY VENDORS

6 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN MEATH/DUBLIN

AS THE MOST POPULOUS REGION IN IRELAND DUE TO THE PRESENCE OF THE CAPITAL CITY OF DUBLIN, THE MEATH AND DUBLIN REGION IS A SIGNIFICANT CONTRIBUTOR TO THE BREEDING AND RACING INDUSTRY.

Not only does the region contain five The significant proportion of the country’s A total direct expenditure of €105m is racecourses, close to a fifth of all in Ireland population based in the region – 1.5m, over estimated to be generated in Meath and including the homes of the Dublin Racing 30% of the – to not Dublin each year, the largest components Festival, opening day of Irish Champions only significant racecourse attendances and being racecourse and related off-course Weekend, and the Irish Grand National, but investment in thoroughbred breeding and expenditure €39m (37%), owners expenditure it also contains over 20% of all horses in ownership, but also interest in the sport as €26m (25%), and Breeding €20m (19%). training and several of the country’s leading a whole with associated betting and industry trainers. funding via the Horse and Greyhound Fund.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN 7 MEATH/DUBLIN

Indirect Direct RACECOURSES There are five racecourses spread across Meath and Dublin, including two of the most 20 22 important racecourses in Ireland, namely Leopardstown (Dublin) and Fairyhouse 110 €215m 105 €105m (Meath). Together these five racecourses attract over 280,000 attendees over the 20 26 c.70 fixtures held in the racing season with an estimated expenditure of €17m 17 attributable to their on-course activities. The main components of this are the general Breeders Betting admissions and catering spend of racegoers Owners Off-course alongside media rights payments for provision Racecourse of pictures to the betting industry.

The Leopardstown Christmas and Fairyhouse There are five racecourses The €105m of direct expenditure in turn Easter festivals are two of the largest in the spread across Meath and leads to an additional indirect expenditure of Irish racing calendar, contributing significantly €110m, composed of the secondary business- to the €22m of off-course expenditure Dublin, including two to-business spending of suppliers to the core generated by racing in the two counties. of the most important Breeding and Racing industry and secondary consumer expenditure, as those people Leopardstown racecourses in Ireland, working in the core industry spend their The only racecourse in , namely Leopardstown wages on local goods, services and amenities. Leopardstown plays host to many of the This results in a total economic impact on biggest races in the Irish racing calendar, (Dublin) and Fairyhouse Meath and Dublin of €215m. both Flat and Jump. Both Grade 1 (Jump) and (Meath). Group 1 (Flat), the highest quality races in The core racing industry is estimated to either code, are staged at the racecourse. employ approximately 1,375 people (FTE) in Meath and Dublin.

8 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN MEATH/DUBLIN

RACECOURSES Fairyhouse Leopardstown, Fairyhouse, A historic and traditional venue, many of the Navan, Bellewstown, Laytown most famous races of the Jump season are held at Fairyhouse including the biggest betting CODE race and one of the most important sporting Flat and Jumps events in the country, the Irish Grand National, which forms part of the Easter Festival. ATTENDANCES 2018 280,292 Another major festival at Fairyhouse is the Winter Festival which features major Grade 1 FIXTURES 2018 events including the Hatton’s Grace Hurdle 69 and Drinmore Novice Chase. Fixtures are held at Fairyhouse throughout the year with AVERAGE ATTENDANCE 2018 summer highlights on the Flat including the 4,062 Group 3 Brownstown Stakes and the Listed Bellewstown Belgrave Stakes. Known as one of the most picturesque MAJOR FESTIVALS racecourses in Ireland, racing has taken place Dublin Racing Festival, Irish Navan on ‘The Hill of Crockafotha’ for centuries, with Champions Weekend, Irish Grand stages racing in every views of the Mountains of Mourne to the north National month of the year bar August, both Flat and and the to the east. Jump. It is probably best known for the latter, hosting many top Jump races including the Holding both Flat and Jump races, The most significant meetings staged are the Troytown Handicap Chase, the Fortria Chase, Bellewstown races on six days a year – a four Dublin Racing Festival (Jump) in February the Lismullen Hurdle, the Boyne Hurdle and day Festival in July and a two day Festival in – at which the Irish Champion Hurdle and the Monksfield Novice Hurdle. The Group 3 late August, both of which draw in good crowds Irish Gold Cup take place – the opening day of Stakes and the Listed Salsabil and are significant events in the local area. Irish Champions Weekend (Flat) – when the Stakes are the feature events of the Flat Irish Champion Stakes is staged – and the season. four day Christmas Festival (Jump). Due to the proximity to Dublin city significant crowds also Two Ladies Days and a Family Fun Day mean attend evening meetings throughout Navan attracts a diverse crowd, both from the the summer. local area and further afield.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN 9 MEATH/DUBLIN

Laytown Racing on the beach at Laytown takes place just once every year and the spectacle draws crowds from all over the world. Laytown races Stallions Nominations Mares Foals Bloodstock Sales occupies a unique position in the Irish racing 13 €1.4m 1,279 700 €18m calendar as it is the only racing event run on a beach under the Rules of Racing, and indeed one of only a handful in the world. stallions at Tara Stud, the birthplace of Arkle OWNERS AND TRAINERS Ballymacoll Stud, and the Irish facilities of Racehorse owners represent the largest The majority of racegoers watch the action Prince Khalid bin Abdullah’s global bloodstock single contributors to the Breeding and Racing from an elevated field above the strand which operation Juddmonte. industry via their purchase of bloodstock and is set up for the day with temporary marquees subsequent expenditure on keeping horses providing facilities for owners, trainers and The registered broodmare population of in training. As well as supporting trainers jockeys with further facilities being provided 1,279 (9% of the Irish total) will also generate and jockeys, other industries throughout the for racegoers in the form of bars and a significant amount of expenditure in the Irish rural economy such as vets, farriers and restaurants. The fixture regularly attracts region. This mare population produces c.700 transport companies also ultimately rely on around 6,000 attendees. foals p.a., 9% of the Irish crop. the expenditure of Owners.

The direct economic impact of breeding Horses in Training BREEDING operations in Meath and Dublin is estimated Of the c.8,700 horses in training in Ireland, Close to 600 breeders (9% of the total in as €20m, generated primarily through more than 20% are trained in Meath and Ireland) are registered in Meath and Dublin, bloodstock sales of €18m. Dublin, the second most in the country after with a combination of both leading global Kildare. This represents the number declared bloodstock entities and a number of smaller Another important breeding industry in training at some point of the year, so the breeding operators collectively forming an component, Tattersalls Ireland, is located in total number of individual horses based at important part of Meath and Dublin’s local Meath, being the second largest bloodstock training and pre-training yards is likely to be economy. auctioneer in the country in terms of the value higher than this as horses are only required of bloodstock sold per annum (see case study to be registered in training just before being Meath and Dublin are home to 13 stallions, on page 11). entered for a race. approximately 6% of the total in Ireland. Notable operations include leading National Hunt stallions at Boardsmill Stud, Flat

10 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN There are c.75 trainers located across the two counties, representing c.12% of registered trainers in Ireland. This is significantly lower than the proportion of horses in training due to the fact that a number of the larger yards with more horses in training than the average are based here. TATTERSALLS IRELAND – Tattersalls Ireland calls on a panel of Trainers in Meath and Dublin have Situated on a 200-acre farm opposite local suppliers for all day-to-day services traditionally been Jumps focused, with the on the outskirts of and operates from a list of local builders, largest Jumps training yard in the country, Ratoath, , Tattersalls Ireland is surveyors, engineers and architects for that of Gordon Elliott, being based in Meath an employer of 26 full-time staff. larger capital development projects. alongside other leading trainers such as Tony Martin. However there has been an In 2018, a total of 300 casual staff were The importance of being involved in the emerging Flat racing presence in the region employed by Tattersalls Ireland across a local community is not lost on Roger Casey, in recent years, headed by leading handlers range of activities from bloodstock sales Finance Director and Company Secretary, Ger Lyons and Eddie Lynam (Meath) and Ado days, point-to-point race days, hunter trials who said, “Everyone at Tattersalls Ireland is McGuinness (Dublin). and other equestrian activities. Close to 60 very proud of our association with Ratoath concession holders operate at Tattersalls and surrounding areas in particular and Point-to-point racing is also strong in the during the year, employing between 180 and County Meath in general. We take our region and will result in further horses in 200 people. responsibility to support the local community training and associated expenditure, with seriously and strive to provide local the Meath and Tara Hunt being a leading An internationally renowned sales venue, employment via our various sales and events meeting in this sphere. Notable point-to-point Tattersalls Ireland hosts eight individual at every opportunity. We also support the handlers in County Meath include Peter Flood horse sales from February to November local community in various sporting, social and Dermot McLoughlin. every year. These sales are held over 17 and cultural activities when appropriate and days and in 2018 the overall value of the events like our International Horse Trials bloodstock sold at Tattersalls was in excess Event held annually in June help to showcase of €51.3m. In all 2,550 horses were sold at the equine heritage in the area and all that the venue in 2018 with many buyers coming the vibrant Royal County has to offer.” from overseas.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN 11 HORSES IN TRAINING 1,760 TRAINERS 74 OWNERS TOTAL EXPENDITURE €33m GORDON ELLIOTT – LONGWOOD won with the Gigginstown House Stud- Based in Cullentra House Stables, just owned General Principle last year, as his TOTAL PRIZE MONEY WON outside Longwood, County Meath, Gordon biggest domestic success. €9m Elliott is one of the leading Jumps trainers in Ireland. A former amateur jockey, Gordon Gordon has a staff of 40 full-time and 20 took out his trainer’s licence in 2006 and part-time employees. The vast majority Owners’ cost and prize money before he had even trained a winner in live locally and many have relocated having After bloodstock purchases, the majority of Ireland, he won the Aintree Grand National secured employment with the team. A the expenditure of racehorse owners keeping with Silver Birch the following year. He won number of Gordon’s employees travel from horses in training goes to trainers. The the biggest Jumps race of them all for a Kildare and Carlow/Kilkenny areas. trainers then pass it on to other stakeholders second time in 2018 with his stable star, both within the core racing industry and , who sensationally repeated the Alfco Farm Services in Trim, County elsewhere in the local economy. feat in 2019. Meath are major suppliers to Gordon as are Robinsons Haylage in , The total owners’ expenditure for horses in Gordon runs the busiest training . Also in County Kildare, TRI training in Meath and Dublin is estimated as establishment in the country. He trains Equestrian is the main source for tack and €33m p.a. including point-to-points. Financial over 200 horses and in 2018, they ran 1,376 gear for the busy yard. Animal bedding return is not the main driver of racehorse times in Ireland, winning 195 races across comes from Macroom Haulage LTD which is ownership, however prize money plays an both codes, National Hunt and Flat. Gordon based in Macroom, . Veterinary important role in both attracting new owners was the leading trainer at the Cheltenham services are supplied by the Veterinary and keeping existing ones by ensuring owners Festival in 2017 and 2018 and can count the Clinic in Ratoath, County Meath and Lisadell feel they are being fairly treated, the sport BoyleSports Irish Grand National, which he Equine Hospital in Navan, County Meath. largely being built on their investment. Total prize money earned by horses trained in Meath and Dublin was approximately €9m.

12 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN MEATH/DUBLIN

EMPLOYMENT The core industry is estimated to employ c.1,375 people (FTE) in Meath and Dublin. These are split approximately as below:

Role FTE

Trainers and stable staff 660

Jockeys (inc. agents and valets) 50

Breeders 390

Racecourses 65

On-course betting (bookmakers and Tote) 40

ADRIAN McGUINNESS – SKERRIES “I am hoping to build a lodge on the yard as Media 95 Trainer Adrian McGuinness works near a means of accommodating the staff as a Racecourse catering 75 Skerries and one of the challenges he faces house to rent around here could be €2,000.” is keeping on high-quality staff and being The yard, close to that of Karl Thornton, is TOTAL 1,375 able to accommodate them due to rental long established in North County Dublin. rates in the County Dublin area. “We’ve a co-op nearby and do nearly all our shopping there,” McGuinness adds. “We buy A successful dual-purpose handler, he all the oil and fuel for our machinery locally. Whilst the c.1,375 roles described above employs five staff full-time and three part- We also contract a local to maintain the are Full Time Equivalents (FTE), due to the time. “We generally try to do the admin gallops during the year. seasonal nature of the Breeding industry and ourselves but we have one full-time guy in event-focused nature of racing these include the yard looking after that. The other full- “Unfortunately, despite the relative a considerable number of part-time roles. time staff are all riders who ride out here in abundance of hay in the area, we’d be reliant the yard. They tend to live local. “I pay a good on a more specific type, so we get ours in As such the total number of individuals with wage and the challenge is to attract staff in Monasterevin. GAIN supplies our feed. Our some form of employment in the core industry this part of the country. bedding for the horses comes from Thurles.” is likely to be considerably more than this.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN 13 MEATH/DUBLIN

Irish Breeding and Racing Industry core, Secondary employment represents those jobs Breeding and Racing industry capital directly related, secondary and betting which are supported by the spending of the expenditure 2007-2016 (€m) employment core industry participants in other areas of the economy, commonly known as the ‘ripple 2,500 effect’. This will include, for example, people 5 Total employed in the service industry in Meath 2,000 5,000+ and Dublin who serve racing’s participants 1,700 as they spend their wages in shops, bars 17 1,375 and restaurants. Secondary employment is 1,500 €39m 1,100 estimated to equal approximately 1,100 FTE positions. 1,000 830 17 Around 1,700 individuals are also employed 500 in LBOs (Licensed Betting Offices) in the two counties. Whilst the staff in LBOs also take bets on other sports, racing remains 0 Core Directly Secondary Betting Industry related the primary product, especially in counties Racecourse BreedersTrainers such as Meath and Dublin where the sport is Source: HRI; Deloitte analysis. ingrained in the local community. Source: HRI; Deloitte analysis.

In addition to the core industry workforce, CAPITAL EXPENDITURE there are a significant number of individuals Approximately €39m is estimated to have The predominantly rural location of breeding employed in activities which, whilst being been invested in capital projects in Meath and racing facilities within the region also reliant on the Breeding and Racing industry, and Dublin in the last 10 years, split between means that capital projects provide significant will also serve other economic sectors. racecourse improvements €17m, Breeders opportunities, and subsequent employment, Estimated at c.830 FTE positions in Meath and €17m and Trainers €5m. for local construction and development firms. Dublin, these include roles such as vets and farriers in addition to those working in other The most significant racecourse project in the sectors such as leisure and hospitality. region in recent years has been the enclosure redevelopment at Leopardstown which was completed in 2016.

14 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN 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: MEATH/ 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: MEATH/DUBLIN 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: MEATH/DUBLIN 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: MEATH/DUBLIN 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: MEATH/DUBLIN 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: MEATH/DUBLIN 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: MEATH/DUBLIN 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 ). 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: MEATH/DUBLIN HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MEATH/DUBLIN 23 HORSE RACING IRELAND Ballymany, The Curragh, Co. Kildare. Telephone: 045 455 455 Fax: 045 455 456 Email: [email protected]

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