WEXFORD/ WICKLOW

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: WEXFORD/WICKLOW DERRY WEXFORD/ DONEGAL ANTRIM

TYRONE

WICKLOW FERMANAGH ARMAGH DOWN

MONAGHAN REGIONAL SUMMARY SLIGO

LEITRIM 1,620 Direct, indirect CAVAN and secondary MAYO LOUTH ROSCOMMON employment LONGFORD

14,214 Attendees MEATH at racing WESTMEATH DUBLIN

€84m Total direct and GALWAY stimulated OFFALY

expenditure KILDARE

€27m Bloodstock sales LAOIS WICKLOW by vendors CLARE

CARLOW TIPPERARY KILKENNY LIMERICK WEXFORD

WEXFORD KERRY

WATERFORD

CORK

Racecourses

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW 3 FOREWORD

BREEDING AND RACING ENJOYS A RICH TRADITION OF SUCCESS IN THE SOUTH EAST. AS WELL AS SUCCESS ON THE TRACK AND IN THE BREEDING SHEDS, THE INDUSTRY PROVIDES OVER 1,600 JOBS IN WICKLOW AND WEXFORD AND OVER €80m IN ANNUAL EXPENDITURE. A THRIVING AREA FOR BREEDERS WITH OVER 1,500 MARES, THE REGION HAS BECOME A CENTRE OF EXCELLENCE FOR PRODUCING THE BEST YOUNG POINT-TO-POINTERS.

4 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW WEXFORD/WICKLOW

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 the South East, for the first the rural economy of Wexford and Wicklow, to the counties of Wexford and Wicklow. time capturing the contribution this industry contributing over 1,600 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 €80m of Breeding and Racing industry including the counties Wexford and Wicklow. 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 Wexford up-to-date economic impact of Irish Breeding and Wicklow should feel very proud of, and This document and Racing, and Deloitte’s report confirmed that tradition of excellence has fuelled a vital incorporates the incredible dividend provided by the rural 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 Wexford and Wicklow, 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: WEXFORD/WICKLOW 5 REGIONAL SUMMARY: WEXFORD/WICKLOW

1,620 14,214 DIRECT, INDIRECT AND SECONDARY ATTENDEES AT RACING EMPLOYMENT

€84m TOTAL DIRECT AND STIMULATED EXPENDITURE €27m BLOODSTOCK SALES BY VENDORS

6 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW WEXFORD/WICKLOW

THE WEXFORD AND WICKLOW REGION HAS A RICH HISTORY IN THE BREEDING AND RACING INDUSTRY, BEING BEST KNOWN FOR THE BREEDING AND TRAINING OF JUMP HORSES

The presence of Wexford racecourse in the In predominantly rural regions such as A total direct expenditure of €41m is region also provides the opportunity for the Wexford and Wicklow, the Breeding and estimated to be generated in Wexford and local community to regularly attend fixtures, Racing industry does not only contribute Wicklow each year, the largest component whilst the Point-to-Point industry is well directly to the local economy through the being Breeding €29m (71%). represented, both in terms of racing staged c.700 full time jobs that it supports, but also and also the production of horses that develop through the many ancillary suppliers that into top quality National Hunt horses under rely on the industry for the majority of their Rules. business.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW 7 WEXFORD/WICKLOW

Indirect Direct RACECOURSES Wexford 1 4 CODE Jumps 7 43 41 €41m €84m ATTENDANCES 2018

29 14,214 FIXTURES 2018 10 Breeders Betting Owners AVERAGE ATTENDANCE 2018 Racecourse 1,421

The €41m of direct expenditure in turn leads RACECOURSES The core racing industry to an additional indirect expenditure of €43m, The only racecourse in the region is Wexford, is estimated to employ composed of the secondary business-to- hosting Jump fixtures from March to October. business spending of suppliers to the core The course attracts in excess of 14,000 approximately 700 people Breeding and Racing industry and secondary attendees over 10 fixtures, with an estimated (FTE) in Wexford and consumer expenditure, as those people expenditure of over €1m attributable to their working in the core industry spend their on-course activities. The main components of Wicklow. wages on local goods, services and amenities. this are the general admissions and catering This results in a total economic impact on spend of racegoers, alongside media rights Wexford and Wicklow of €84m. payments for provision of pictures to the betting industry. In addition to the direct The core racing industry is estimated to on-course expenditure, racing in Wexford employ approximately 700 people (FTE) in generates approximately €0.3m of racegoer Wexford and Wicklow. off-course expenditure.

8 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW WEXFORD/WICKLOW

OWNERS AND TRAINERS Racehorse owners represent the largest single contributors to the Breeding and Racing Stallions Mares Foals Bloodstock Sales industry via their purchase of bloodstock and 20 1,459 906 €27m subsequent expenditure on keeping horses in training. As well as supporting trainers and jockeys, other industries throughout the BREEDING The registered broodmare population of more Irish rural economy such as vets, farriers and The contribution of the Breeding industry to than 1,450 (11% of the Irish total) generates transport companies also ultimately rely on the direct economic impact of horseracing in further expenditure in the region and will the expenditure of Owners. In the Wexford and Wexford and Wicklow is behind only Tipperary include some mares owned not only by Wicklow region this will include transport via and the Midlands in significance. Total individuals from elsewhere in Ireland but also the port of Rosslare, local companies such breeding revenue of €29m constitutes 71% of internationally. The region’s mares produce as Keating Horse Transport and horse feed direct economic impact, with the majority of over 900 foals p.a., 11% of the Irish crop. companies such as GAIN (see case study). this revenue derived from bloodstock sales Whilst the majority of these will likely be sold of €27m. as foals or yearlings a proportion will also Horses in Training remain in the region as they progress into Of the c.8,700 horses in training in Ireland, The Irish Breeding industry is the first step racing and/or breeding careers. approximately 375 (4%) are trained in Wexford in the ‘production line’ of racing and is well and Wicklow. This number represents the represented in the Wexford and Wicklow. Over While the vast majority of Breeding revenue number declared in training at some point 750 breeders are registered in the region, in the region is generated from bloodstock of the year, so the total number of horses 12% of the total in Ireland, with the focus sales, Wexford and Wicklow are also home based at training and pre-training yards is on National Hunt breeding. There are also to 20 stallions which collectively generate likely to be higher than this as horses are a significant number of smaller breeding approximately hundreds of thousands of only required to be registered in training just operators, predominantly located in Wexford, euros each year from nominations. before being entered for a race. which collectively form an important part of the local economy.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW 9 WEXFORD/WICKLOW

Envoi Allen, Samcro and Arkle winner Western Warhorse. There are many more like him from County Wexford producing top young horses including Donnchadh Doyle, Dennis Murphy, Sean Doyle, Liam Kenny and Cormac Doyle.

Owners’ cost and prize money After bloodstock purchases, the majority of the expenditure of racehorse owners keeping horses in training goes to trainers. The trainers then pass it on to other stakeholders both within the core racing industry and elsewhere in the local economy.

The total owners’ expenditure for horses in training in Wexford and Wicklow is estimated as €8m per annum (including point-to-point). HORSES IN TRAINING There are 53 trainers located across the two Financial return is not the main driver of 376 counties, representing c.9% of registered racehorse ownership, however prize money trainers in Ireland. Trainers in Wexford and plays an important role in both attracting new TRAINERS Wicklow are predominantly Jumps focused, owners and keeping existing ones by ensuring 53 with leading handlers from the region owners feel they are being fairly treated, the including Colin Bowe and Cheltenham sport largely being built on their investment. OWNERS TOTAL EXPENDITURE Festival winning trainer Paul Nolan. Total prize money earned by horses trained in €8m Wexford and Wicklow is estimated as c.€1m. The point-to-point industry is also well TOTAL PRIZE MONEY WON represented in the region. For example the €1m aforementioned Colin Bowe has rapidly become one of the country’s leading producers of young horses through pointing, including recent Cheltenham Festival winners

10 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW EMPLOYMENT The core industry is estimated to employ around 700 people (FTE) in Wexford and Wicklow. These are split approximately as below:

Role FTE

Trainers and stable staff 190 GAIN EQUINE NUTRITION – CLONROCHE Glanbia Ireland has a network of 53 retail Jockeys (inc. agents and valets) 10 GAIN Equine Nutrition is the equine feed stores and also sell to cooperatives, arm of Glanbia Ireland, a global leader in wholesalers/private merchants and direct Breeders 445 nutrition. The company produces a range to both studs and racing and Sport Horse Racecourses 10 of equine diets across all sectors, with a yards. GAIN Equine Nutrition is exported to particular focus on premium feeds for horse over 20 countries including Britain, France, On-course betting (bookmakers and Tote) 5 racing, breeding and high-performance the Middle East and Japan. Racecourse catering 10 Sport Horses. All GAIN Equine feed products are manufactured in Clonroche, County Joanne Hurley, Irish Country Manager TOTAL 670 Wexford. of GAIN Equine Nutrition, said, “The thoroughbred sector is vitally important for Founded in 1980, Glanbia Ireland employs GAIN Equine Nutrition. Racehorse trainers Whilst the 670 roles described above are Full over 1,800 people across the country in Ireland have always been a valued Time Equivalents (FTE), due to the seasonal with close to 30 people directly linked to customer; the global nature of the racing nature of the Breeding industry and event- GAIN Equine Nutrition portfolio across industry and the success of our customers focused nature of racing these include a formulation, quality control, manufacturing, in Ireland and on a worldwide stage has considerable number of part-time roles. As marketing, sales team and administration. given us the platform to grow our business. such the total number of individuals with GAIN Equine Nutrition has access to some form of employment in the core industry some of the highest quality native cereals “We take great pride in providing nutritional is likely to be significantly more. through various contracts offered by Glanbia support and feed for some of the best Agribusiness to grain growers in their local horses in the world. We strive to continually In addition to the core industry workforce, catchment area. GAIN Equine Nutrition is provide a best in class service to trainers there are a significant number of individuals sold across the 32 counties of Ireland. and improve our product offering.” employed in activities which, whilst being

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW 11 reliant on the Breeding and Racing industry, will also serve other economic sectors. Estimated at c.400 FTE positions in Wexford and Wicklow, these will include roles such as vets and farriers in addition to those working in other sectors such as leisure and hospitality. PETER AND ROSS DOYLE, Anna Doyle, a director of the company, BLOODSTOCK AGENTS explained: “We have three directors and Secondary employment represents those jobs Peter and Ross Doyle Bloodstock Ltd is two employees full-time, but we would which are supported by the spending of the a purchaser of top-class thoroughbred frequently use freelance employees for the core industry participants in other areas of racehorses spanning four decades. Its office busy sales. the economy, commonly known as the ‘ripple is based in County Wicklow. effect’. This will include, for example, people “When we are busy at the Tattersalls yearling employed in the service industry in Wexford Peter and Ross pride themselves on sales and foal sales, for example, we would and Wicklow who serve racing’s participants building working relationships with owners have two or three freelance workers as you as they spend their wages in shops, bars and trainers alike and have become are talking hundreds of horses. and restaurants. Secondary employment is synonymous, in particular, with the hugely “Our main client base would be in the UK but estimated to equal approximately 550 FTE successful Richard Hannon yard. They bring we do quite a bit of work with Scandinavian positions. in a great deal of money from British clients, clients. We export from Ireland and the UK to and are very busy at the sales. the Far East. We also do a VAT service for our Around 250 individuals are also employed in clients and that VAT comes to Ireland, rather LBOs (Licensed Betting Offices) in Wexford Peter and Ross Doyle Bloodstock Ltd than going to the UK.” and Wicklow. Whilst the staff in LBOs also attends all major sales (auctions). Usually take bets on other sports, racing remains the a racehorse trainer will have been selected Peter and Ross Doyle Bloodstock moved to primary product, especially in counties such prior to the sale; the Doyles will show the its present location around a decade ago, as Wexford and Wicklow where the sport is trainer the horses that have made the prior to which it was based in Greystones. ingrained in the local community. shortlist and value their input on the final Anna adds: “We work with an IT company, selection. In consultation with the client, a which is Dublin-based; we have various decision will be made on which horse he or stationary partners and we have auditors. she would like Peter and Ross to bid on. We deal with a local company of solicitors.”

12 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW WEXFORD/WICKLOW

Irish Breeding and Racing Industry core, directly related, secondary and betting employment

1,000

Total 800 1,870 670

550 600

400 400 250

200 JOHN ORMONDE, WEXFORD SAND LTD Curragh. They also upgraded the ‘canter The renowned John Ormonde Wexford down’ for the gallops which runs in front of 0 Core Directly Secondary Betting Industry related Sand Ltd, in business since 2000, has been the newly redeveloped stand at the Curragh involved in projects the length and breadth of racecourse. D’Arcy Sands of Blackwater was Source: HRI; Deloitte analysis. the country from its base near Enniscorthy, the source of the specialist sand used on the County Wexford. Curragh with local quarries supplying the stone to build the foundation of the gallops. Secondary employment Employing a full-time workforce of 15, 90% represents those jobs of the company’s activity is concentrated on Trainers Paul Nolan, Jessica Harrington, the horse racing and sport horse industries Michael Halford, Noel Meade and the which are supported by with racing responsible for 70% of all activity. well-known stud farms of Derrinstown and the spending of the core Moyglare in County Kildare are clients of The company was central to the recent John Ormonde Wexford Sand. The company industry participants in overhaul on the Curragh training grounds, offers a significant ‘aftercare’ service, other areas of the economy. completely refurbishing two of the gallops, providing maintenance plans for all the the nine-furlong ‘Free Eagle’ gallop and surfaces they install. the six-furlong straight gallop at Little

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: WEXFORD/WICKLOW 13 WEXFORD/WICKLOW

CAPITAL EXPENDITURE Breeding and Racing industry capital Approximately €24m is estimated to expenditure 2007-2016 (€m) have been invested in capital projects in Wexford and Wicklow in the last 10 years, 1 1 predominantly by Breeders €22m, with smaller amounts of expenditure from Trainers (€1m) and on racecourse improvements (€1m).

The latter included two furlongs being added €24m to the track at Wexford and the direction of racing being changed from right to left in early 2015. Stabling has also recently been improved and increased, whilst the jockeys 22 and valets area has been extended and upgraded. Racecourse BreedersTrainers Approximately €24m is John Ormonde Wexford Sand is a locally estimated to have been based company that has been involved in Source: HRI; Deloitte analysis. several capital projects in the industry, as invested in capital projects shown in the case study. in Wexford and Wicklow. 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.

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

www.hri.ie