Border (Cavan/Monaghan/ Louth)

BORDER (CAVAN/MONAGHAN/ LOUTH)

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: BORDER DERRY BORDER DONEGAL ANTRIM (CAVAN/MONAGHAN/LOUTH) TYRONE

FERMANAGH ARMAGH DOWN

REGIONAL SUMMARY SLIGO MONAGHAN

LEITRIM 450 Direct, indirect CAVAN DUNDALK and secondary MAYO LOUTH ROSCOMMON employment LONGFORD

49,998 Attendees MEATH at racing WESTMEATH DUBLIN

€25m Total direct and GALWAY stimulated OFFALY

expenditure KILDARE

LAOIS WICKLOW

CLARE

CARLOW TIPPERARY KILKENNY LIMERICK WEXFORD

KERRY

WATERFORD

CORK

Racecourses

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER 3 FOREWORD

BREEDING AND RACING ENJOYS A RICH TRADITION OF SUCCESS IN THE BORDER. AS WELL AS SUCCESS ON THE TRACK AND IN THE BREEDING SHEDS, THE INDUSTRY PROVIDES AROUND 450 JOBS AND €25m IN ANNUAL EXPENDITURE. THE BORDER COUNTIES ALSO HOST IRELAND’S FIRST ALL-WEATHER TRACK IN DUNDALK, WHICH PLAYS A KEY ROLE IN THE NATIONAL FIXTURE LIST.

4 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER BORDER

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 Border counties, for the rural economy of the Border counties, to the counties of Cavan, Monaghan the first time capturing the contribution this contributing around 450 jobs in direct, indirect and Louth. This is followed by an overview industry makes to life – social and economic – and secondary employment, and almost of the Irish Breeding and Racing industry in counties Cavan, Monaghan €25m of expenditure per annum. including the economic impact of the and Louth. industry and the success of the industry on There is a rich history of Breeding and Racing an international scale. Two years ago, in spring 2017, Horse Racing in this area, one that the people of the Border Ireland commissioned Deloitte to quantify the should feel very proud of, and that tradition of This document up-to-date economic impact of Irish Breeding excellence has fuelled a vital rural industry. incorporates and Racing, and Deloitte’s report confirmed summarised findings the incredible dividend provided by the It all makes more relevant the issue of a long- from the Economic industry with almost 29,000 direct and indirect term and sustainable funding structure for Impact of Irish Breeding jobs across the country, and over €1.8 billion the industry, which can allow it develop to its and Racing 2017. in expenditure. full potential, increasing both the economic and social dividend for the Border counties, The full report can be From that report in 2017 – a summary and to that end we would ask politicians from downloaded at https://www. of which is contained at the back of this all parties to provide the necessary policy hri.ie/press-office/economic-impact/ document – we were able to measure the support for this to happen. phenomenal international success of Irish- bred horses and its export reach. Brian Kavanagh Chief Executive Domestically, the report calculated that 92% Horse Racing Ireland of the 6,777 registered breeders in the country have fewer than five mares, and with breeders 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: BORDER 5 REGIONAL SUMMARY: BORDER

450 49,998 DIRECT, INDIRECT AND SECONDARY ATTENDEES AT RACING EMPLOYMENT

€25m TOTAL DIRECT AND STIMULATED EXPENDITURE c.100 HORSES IN TRAINING

6 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER BORDER

THE BORDER REGION While the Border region currently has a small Ireland and the main link between the local Breeding and Racing industry compared to population and thoroughbred racing. It is the COMPRISES THE THREE other parts of Ireland, it does however have most significant economic contributor to the COUNTIES OF CAVAN, activities across all segments of the industry breeding and racing industry in the region indicating clear scope for development. apart from expenditure generated from betting. MONAGHAN AND LOUTH, WITH The industry is responsible for close to 200 THE LATTER CONTAINING THE full-time roles in the region, with more A total direct expenditure of €12m is individuals involved when part-time positions estimated to be generated in the Border REGION’S ONLY RACECOURSE are also included. region each year, the largest components AT DUNDALK. being racecourse and related off-course The presence of Dundalk racecourse is expenditure €5m (42%) and betting related particularly important, being the busiest expenditure €3m (25%). racecourse in terms of fixtures staged in

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER 7 BORDER

Indirect Direct RACECOURSES Dundalk 1 1 CODE 2 3 Flat 13 €25m 12 €12m ATTENDANCES 2018 49,998 5 FIXTURES 2018 39 Breeders Betting Owners Off-course AVERAGE ATTENDANCE 2018 Racecourse 1,282

The €12m of direct expenditure in turn leads RACECOURSES Christmas), providing consistent racing for to an additional indirect expenditure of €13m, Opening in 2007, Dundalk Stadium, located domestic and international markets. composed of the secondary business-to- in County Louth, is Ireland’s first all-weather business spending of suppliers to the core racecourse and also the first with floodlights. Not only does the provision of an all-weather Breeding and Racing industry and secondary The racing surface at Dundalk is known as racecourse mean that more horses are likely consumer expenditure, as those people ‘polytrack’ which is a wax-coated synthetic to be trained or kept in training for longer working in the core industry spend their surface. periods due to the increased opportunities to wages on local goods, services and amenities. race, but the increased number of races also This results in a total economic impact on the The racecourse comprises a combined horse provides additional betting opportunities to Border region of €25m. and greyhound racing facility that is used generate revenue for the industry. throughout the year. It is during the winter when the facility is of greatest value to the The facility is also regularly used by trainers racing industry, Dundalk hosting Flat racing for racecourse gallops, allowing training over on at least one occasion each week from longer distances than trainers’ own facilities late September to mid April, including 28 usually permit. consecutive Friday nights (excluding one at

8 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER BORDER

BREEDING The Irish Breeding industry is the first step in the ‘production line’ of racing. There are more than 100 breeders located in the Border region, with any bloodstock sale proceeds flowing back to the region each year. Breeders are spread across the three counties, and their expenditure and associated employment form an important part of the local economy.

The region has almost 200 broodmares, producing more than 100 foals p.a., with the majority of these sold as foals or yearlings unless remaining in the region for breeding purposes.

Breeding revenue in the Border region is mainly generated from bloodstock sales, estimated at approximately €1m in direct economic impact p.a. Dundalk attracts almost 50,000 racegoers In addition to the direct on-course across 39 fixtures a year, this one racecourse expenditure, racing at Dundalk also alone hosting the third most fixtures of generates approximately €1m of racegoer any region in Ireland. Racing at Dundalk off-course expenditure in the Border region. generates an estimated expenditure of €5m This incorporates the increase in trade in attributable to on-course activities, the main the locality on racedays as racegoers incur Mares Foals components being the general admissions expenditure in local shops, pubs, bars and 195 108 and catering spend of racegoers alongside restaurants, with connections of runners media rights payments for provision of from elsewhere in Ireland also often staying pictures to the betting industry. overnight in local hotels.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER 9 RITA SHAH – CASTLEBLAYNEY Shah says: “It is very pivotal if you want to Shah adds: “School kids come in during Rita Shah’s Shabra Plastics and Recycling share nationally the interest of people. holidays. We have a minimum of ten people in Castleblayney, which started trading in “After Oliver’s passing, he said what will you here at all times. All the workers are locals 1986, is the only company recycling and do? We have all the facilities to train: a pool, from the Monaghan/Cavan border region. re-processing plastic waste film and post- stables, an all-weather gallop and exercising To get stable staff is difficult, so to retain staff consumer bottles in Ireland and has been a ring; I didn’t want to waste it and I didn’t is important and we have managed that.” leader in this field. want to waste the farmland. I gave Anthony McCann an opportunity as I am heavily Shabra employs 90 people and it accounts Her links with racing are exceptionally involved in other businesses. He is seriously for almost half of the 35 horses that are in strong. The company owes its name to both dedicated. I was giving an opportunity to training with McCann. “It is totally a company Rita and Oliver Brady, the late Castleblaney younger people.” that is local and growing. We are the leading trainer who put County Monaghan on the industry in Ireland for recycled bottles. Given map as a racing power. Since Brady’s death, The role of the yard in the Castleblaney area the opportunity, he can grow the yard even young trainer Anthony McCann has taken – it has five full-time staff and three part- more.” over the training operation and has had time staff – is difficult to overstate. considerable success.

10 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER BORDER

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 transport companies also ultimately rely on the expenditure of Owners.

Horses in Training There are almost 100 horses in training in the Border region, mostly Jump focused. This number represents the number declared in training at some point of the year, so the total number of horses based at training yards is likely to be higher than this as horses are Owners’ cost and prize money HORSES IN TRAINING only required to be registered in training just After bloodstock purchases, the majority of 95 before being entered for a race. the expenditure of racehorse owners goes to trainers. The trainers then pass it on to TRAINERS With three trainers operating in the region, other stakeholders both within the core racing 3 the average number of horses in the yard industry and elsewhere in the local economy. in the Border region is relatively high at OWNERS TOTAL EXPENDITURE approximately 32, the most prominent being The total owners’ expenditure for horses in €2m Anthony McCann. McCann’s yard is backed training in the Border region is estimated as by the local business figure and key racing €2m. Financial return is not the main driver TOTAL PRIZE MONEY WON personality in the region Rita Shah (see case of racehorse ownership, either in the Border c.€0.5m study). region or any other region, with most owners not expecting to recoup their acquisition or training costs. However, prize money plays an important role in both attracting new owners

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER 11 BORDER

EMPLOYMENT In addition to the core industry workforce, The core industry is estimated to employ c.200 there are a significant number of individuals people (FTE) in the Border region. These are employed in activities which, whilst being split approximately as below: reliant on the Breeding and Racing industry, will also serve other economic sectors. Role FTE Estimated at c.115 FTE positions in the Border region, these will include roles such as vets Trainers and stable staff 35 and farriers in addition to those working in Jockeys (inc. agents and valets) 5 other sectors such as leisure and hospitality.

Breeders 60 Secondary employment represents those Racecourses 35 jobs which are supported by the spending of the core industry participants in other areas On-course betting (bookmakers and Tote) 15 and keeping existing ones by ensuring owners of the economy, commonly known as the feel they are being fairly treated, the sport Racecourse catering 30 ‘ripple effect’. This will include, for example, largely being built on their investment. people employed in the service industry in the TOTAL 180 Total prize money earned by horses Border region who serve racing’s participants trained in the Border region is estimated at as they spend their wages in shops, bars approximately €500,000 p.a. and restaurants. Secondary employment is Whilst the 180 roles described above are FTE, estimated to equal approximately 155 FTE due to the seasonal nature of the Breeding positions. The core industry is industry and event-focused nature of racing estimated to employ c.200 these include a considerable number of Around 385 individuals are also employed in part-time roles. As such the total number of LBOs (Licensed Betting Offices) in the three people (FTE) in the individuals with some form of employment in counties. Whilst the staff in LBOs also take Border region. the core industry is likely to be considerably bets on other sports, racing remains the more. primary product.

12 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER HORSEWARE IRELAND – DUNDALK Its staff are based primarily in County jumps trainer Willie Mullins, Jessica A leading producer of branded equestrian Louth with many having moved to the Harrington’s Commonstown Racing Stables goods, Horseware Ireland is known all area having secured employment with the and Yeomanstown Stud, situated just outside over the world and has its headquarters in ever-expanding company. As an employer, Naas in County Kildare, are also customers Dundalk, County Louth where it employs Horseware Ireland reaches deep into the of Horseware Ireland. a workforce of 172 in sales, marketing, local community with their work force research and development, manufacturing originating from Ireland, Sweden, Spain, Horseware Ireland is to develop a and warehousing. Brazil, China, Croatia, and New Zealand. It comprehensive strategy for the Irish racing enjoys a commercial sponsorship deal with and breeding industries, outlining customer Horseware Ireland was established by Tom its local racecourse, Dundalk. requirements and sourcing specific McGuinness in 1985. It created the iconic products that satisfy those needs. The Irish Rambo Original which continues to set the The company’s retail arm, The Equine market is to be of special focus, with the standard for modern horse rug design. The Warehouse, has a number of customers aim of developing a more Ireland-specific company has grown to become one of the from within the Irish racing and breeding marketing campaign. world’s most trusted producers of horse industries, including the Ballydoyle Racing rugs and is a leading manufacturer of horse Stables of champion trainer Aidan O’Brien, therapies, horse accessories and clothing for Coolmore Stud and Joseph O’Brien’s ever- horses and riders. expanding Carriganóg Racing. Champion

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER 13 BORDER

Irish Breeding and Racing Industry core, The predominantly rural location of breeding directly related, secondary and betting and racing facilities within the region also employment means that capital projects provide significant opportunities, and subsequent employment, 500 for local construction and development firms.

Total 385 400 835 Breeding and Racing industry capital expenditure 2007-2016 (€m) 300

180 1 200 155 2 115

100 CAPITAL EXPENDITURE Approximately €19m is estimated to have 0 Core Directly Secondary Betting €19m Industry related been invested in capital projects in the Border region in the last 10 years, predominantly on Source: HRI; Deloitte analysis. racecourse improvements at Dundalk (€16m), with smaller amounts of expenditure from Breeders (€2m) and Trainers (€1m). 16 Were the initial construction of Dundalk to Were the initial construction of Dundalk to be included in this capital investment Racecourse BreedersTrainers be included in this capital total it would increase to over €30m, with a investment total it would significant proportion of this cost going to Source: HRI; Deloitte analysis. locally based construction and development increase to over €30m. firms and their employees.

14 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: BORDER 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: BORDER 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: BORDER ECONOMIC IMPACT OF BREEDING AND RACING IN IRELAND

THE TOTAL DIRECT AND

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