MID WEST (LIMERICK/CLARE)

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 IRELAND ECONOMIC IMPACT STUDY: MID WEST DERRY MID WEST DONEGAL ANTRIM (LIMERICK/CLARE) TYRONE

FERMANAGH ARMAGH DOWN

MONAGHAN REGIONAL SUMMARY SLIGO

LEITRIM 1,225 Direct, indirect CAVAN and secondary MAYO LOUTH ROSCOMMON employment LONGFORD

100,673 Attendees MEATH at racing WESTMEATH DUBLIN

€109m Total direct and GALWAY stimulated OFFALY

expenditure KILDARE

€25m Bloodstock sales LAOIS WICKLOW by vendors CLARE

CARLOW

LIMERICK TIPPERARY KILKENNY LIMERICK WEXFORD

KERRY

WATERFORD

CORK

Racecourses

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST 3 FOREWORD

BREEDING AND RACING ENJOYS A RICH TRADITION OF SUCCESS IN THE MID WEST OF IRELAND. AS WELL AS SUCCESS ON THE TRACK AND IN THE BREEDING SHEDS, THE INDUSTRY PROVIDES OVER 1,200 JOBS IN THE MID WEST AND ALMOST €110m IN ANNUAL EXPENDITURE. OVER 40 TRAINERS CARE FOR AROUND 400 HORSES IN AN AREA OF THE COUNTRY ALSO RENOWNED FOR A STRONG NETWORK OF HORSE BREEDERS AND A THRIVING RACECOURSE AT PATRICKSWELL IN LIMERICK.

4 ECONOMIC IMPACT STUDY: MID WEST MID WEST

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 Mid West, for the first the rural economy of the Mid West region, to the counties of Clare and Limerick. This is time capturing the contribution this industry contributing over 1,200 jobs in direct, indirect followed by an overview of the Irish Breeding makes to life – social and economic – in and secondary employment, and almost and Racing industry including the economic counties Clare and Limerick. €110m of 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 the Mid West This document up-to-date economic impact of Irish Breeding should feel very proud of, and that tradition of incorporates and Racing, and Deloitte’s report confirmed excellence has fuelled a vital rural industry. summarised findings the incredible dividend provided by the from the Economic industry with almost 29,000 direct and indirect It all makes more relevant the issue of a long- Impact of Irish Breeding jobs across the country, and over €1.8 billion term and sustainable funding structure for and Racing 2017. in expenditure. the industry, which can allow it develop to its full potential, increasing both the economic The full report can be From that report in 2017 – a summary and social dividend for the Mid West region, downloaded at https:// of which is contained at the back of this and to that end we would politicians from www.hri.ie/press-office/ document – we were able to measure the all parties to provide the necessary policy economic-impact/ phenomenal international success of Irish- support for this to happen. bred horses and its export reach. Brian Kavanagh Domestically, the report calculated that 92% Chief Executive of the 6,777 registered breeders in the country Horse Racing Ireland 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: MID WEST 5 REGIONAL SUMMARY: MID WEST

1,225 100,673 DIRECT, INDIRECT AND SECONDARY ATTENDEES AT RACING EMPLOYMENT

€109m TOTAL DIRECT AND STIMULATED EXPENDITURE €25m BLOODSTOCK SALES BY VENDORS

6 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST MID WEST

THE MID WEST REGION COVERS THE COUNTIES OF LIMERICK AND CLARE AND HAS A RICH HISTORY IN THE BREEDING AND RACING INDUSTRY, BEING BEST RECOGNISED FOR THE BREEDING AND TRAINING OF NATIONAL HUNT HORSES.

The presence of Limerick racecourse in In predominantly rural regions such as the This includes Shannon Airport in County Clare, the region provides the opportunity for the Mid West, the Breeding and Racing industry an important international transport hub for local community to regularly attend fixtures, does not only contribute directly to the local Irish trained horses travelling overseas. A whilst the Point-to-Point industry is also economy through the c.500 full time jobs total direct expenditure of €53m is estimated represented, both in terms of racing staged that it supports, but also through the many to be generated in the Mid West each year, and the production of horses that develop into ancillary suppliers that rely on the industry for the majority of which comes from Breeding top quality National Hunt horses. the majority of their business. operations €26m (49%) and racecourse off- course expenditure €9m (17%).

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST 7 MID WEST

Indirect Direct The Christmas Racing Festival attracts racegoers from all over Ireland with highlights 9 including the traditional St. Stephen’s Day racing, with a Grade 1 race, Ladies Day on 4 the 28th of December and a Family Fun Day 56 €109m 53 €53m 26 on the 29th December. The festival attracts 6 approximately 40,000 attendees and is the primary contributor to the €9m of off-course 8 expenditure generated by racing in the Mid West as racegoers visit locals pubs, bars and restaurants in the locality before and after Breeders Betting racing. Owners Off-course Racecourse RACECOURSE Limerick Racecourse The €53m of direct expenditure in turn leads RACECOURSE to an additional indirect expenditure of €56m, Limerick Racecourse hosts both Flat and CODE composed of the secondary business-to- National Hunt racing all year round, but is Flat and Jumps business spending of suppliers to the core best known for its summer evening meetings Breeding and Racing industry and secondary and the annual four-day Christmas Racing ATTENDANCES 2018 consumer expenditure, as those people Festival. The racecourse attracts over 100,673 working in the core industry spend their 100,000 racegoers p.a. to its 18 fixtures, wages on local goods, services and amenities. with an estimated expenditure of €6m FIXTURES 2018 This results in a total economic impact on the attributable to their on-course activities. The 18 Mid West of €109m. main components of this are the general admissions and catering spend of racegoers AVERAGE ATTENDANCE 2018 The core racing industry is estimated to alongside media rights payments for provision 5,593 employ approximately 500 people (FTE) in the of pictures to the betting industry. Mid West. MAJOR FESTIVALS Christmas Racing Festival

8 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST LIMERICK RACECOURSE Manager Pat O’Callaghan says: “We have Then you have all the knock-ons of Limerick Racecourse, situated outside catering and bar staff to the tune of 200 on electricians, plumbers, staff from nearby Patrickswell, will host 18 racedays in 2019, the student day; these are contractors, not towns if we cannot do it all ourselves – featuring four fixtures throughout its iconic employed directly by the racecourse. mending the track, for example, can take Christmas Festival and a hugely popular a week’s work after Christmas when the spring fixture for students particularly. “At Christmas we would also have around ground needs to be repaired.” 200 of these each day; on an ordinary day we In the years following the establishment would have 20 to 30 catering and bar staff. The track runs shuttle busses during its St. of the first Limerick racecourse in 1790, Caterers tend to be in three days in advance Stephen’s Day meeting and O’Callaghan seven different local venues were used. getting set up for the meeting. They would notes that on student day the track had Limerick Racecourse found a new home at have a team in here working for maybe a “7,500 students travelling by various means” Greenmount Park when it was purchased fortnight before Christmas. – 25 buses, 20 private-hire buses and Taxis. in 1996. It employs ten full-time staff and On around ten days a year, the track hosts approximately 40 on an average race-day. “IRIS, which provides integrity services, events unrelated to racing. brings around 12 staff to every meeting.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST 9 MID WEST

There is also significant point-to-point racing in the Mid West with eight point-to-point courses hosting nine fixtures (c.10% of the national total) over the season. The estimated Stallions Mares Foals Bloodstock Sales direct economic impact of point-to-point 5 827 450 €25m racing in the Mid West is close to €2m when both on-course and owners expenditure on keeping pointers in training is included. BREEDING as foals or yearlings, a proportion will also The primary contributor to the direct remain in the region as they progress into economic impact of the industry in the Mid racing and/or breeding careers. Limerick Racecourse hosts West region is the Breeding sector. Total both Flat and National breeding revenue of €26m constitutes nearly Although the majority of Breeding revenue in 50% of direct economic impact, with the the region is generated from bloodstock sales, Hunt racing all year round, vast majority of this revenue derived from the Mid West is also home to five stallions, but is best known for its bloodstock sales (€25m). estimated to generate thousands of euros in nomination fees p.a. summer evening meetings The Irish Breeding industry is the first step and the annual four-day in the ‘production line’ of racing and is well represented in the Mid West. More than 400 OWNERS AND TRAINERS Christmas Racing Festival. breeders are registered in Limerick and Clare, Racehorse owners represent the largest representing approximately c.6% of the Irish single contributors to the Breeding and Racing total. industry via their purchase of bloodstock and subsequent expenditure on keeping horses The registered broodmare population of in training. As well as supporting trainers c.830 (6% of the Irish total) generates and jockeys, other industries throughout the further expenditure in the region and will Irish rural economy such as vets, farriers and include some mares owned not only by transport companies also ultimately rely on individuals from elsewhere in Ireland but also the expenditure of Owners. internationally. The region’s mares produce around 450 foals p.a., 6% of the Irish crop. Whilst the majority of these will likely be sold

10 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST MID WEST

Horses in Training Of the c.8,700 horses in training in Ireland, approximately 380 (4%) are trained in the Mid West. This number represents the number declared in training at some point of the year, so the total number of horses based at training and pre-training yards is likely to be higher than this as horses are only required to be registered in training just before being entered for a race.

There are around 40 trainers located in the region, representing c.7% of registered trainers in Ireland. Trainers in the Mid West are predominantly National Hunt focused, with some of the best known being Festival and Royal Ascot winning trainer Charles Byrnes, Enda Bolger, Eric McNamara and Richard O’Brien (all Limerick) The total owners’ expenditure for horses in HORSES IN TRAINING with Brian McMahon based in Clare. Well training in the Mid West, including point- c.380 known point-to-point handlers in the region to-point, is estimated at €9m p.a. Financial include Patrick Hassett (Clare), John Gleeson. return is not the main driver of racehorse TRAINERS ownership, however prize money plays an 41 Owners’ cost and prize money important role in both attracting new owners After bloodstock purchases, the majority of and keeping existing ones by ensuring owners OWNERS TOTAL EXPENDITURE the expenditure of racehorse owners keeping feel they are being fairly treated, the sport €9m horses in training goes to trainers. The largely being built on their investment. Total trainers then pass it on to other stakeholders owners expenditure on horses trained in TOTAL PRIZE MONEY WON both within the core racing industry and the Mid West net of prize money received is €1m elsewhere in the local economy. estimated at c.€8m.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST 11 MID WEST

The most notable owner and racing EMPLOYMENT reliant on the Breeding and Racing industry, industry figure in the region is Limerick’s The core industry is estimated to employ c.500 will also serve other economic sectors. J.P. McManus. One of the most successful people (FTE) in the Mid West. These are split Estimated at c.310 FTE positions in the Mid National Hunt owners of the last 35 years approximately as below: West, these will include roles such as vets and with his instantly recognised green and gold farriers in addition to those working in other hooped silks, McManus has won all the Role FTE sectors such as leisure and hospitality. leading National Hunt races on both sides Trainers and stable staff 190 of the Irish Sea, with multiple Cheltenham A considerable number of international horse Festival winners and an Aintree Grand Jockeys (inc. agents and valets) 10 movements from Ireland transit through National winner. Shannon Airport, including all those of Breeders 255 Coolmore and the Ballydoyle training facility McManus is well known for having horses Racecourses 20 of Aidan O’Brien, which is another example in training with a large number of different of the industry creating employment in the On-course betting (bookmakers and Tote) 15 trainers across the country, meaning the region. benefits of his expenditure are felt all across Racecourse catering 10 Ireland. He also has a sizeable breeding Secondary employment represents those jobs TOTAL 500 operation based out of his Martinstown Stud which are supported by the spending of the in County Limerick. core industry participants in other areas of the economy, commonly known as the ‘ripple Whilst the 500 roles described above are FTE, effect’. This will include, for example, people due to the seasonal nature of the Breeding employed in the service industry in Mid West industry and event-focused nature of racing who serve racing’s participants as they spend these include a considerable number of their wages in shops, bars and restaurants. part-time roles. As such the total number of Secondary employment is estimated to equal individuals with some form of employment in approximately 415 FTE positions. the core industry is likely to be considerably more than this. Around 275 individuals are also employed in LBOs (Licensed Betting Offices) in the two In addition to the core industry workforce, counties. Whilst the staff in LBOs also take there are a significant number of individuals bets on other sports, racing remains the employed in activities which, whilst being primary product.

12 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST Irish Breeding and Racing Industry core, directly related, secondary and betting employment

600

500 Total 500 1,500 415

400 BRIAN McMAHON – SPANCIL HILL Brian’s landlord Noel Glynn supplies him 310 Based in Spancil Hill, County Clare, Brian with hay, while straw is delivered from 275 300 McMahon has been training for almost five Killura Agri Ltd in Killavullen, County Cork. years and has eight horses under his care. A McMahon spends in excess of €350 a week

200 graduate of NUI Galway, Brian is a Research on feed from Littleton Animal Feeds in Tulla, and Development Biochemist by profession. County Clare and says, “I might not sound like a whole lot, but that would be typical 100 “My horses have a different routine to of the spend of a small trainer like me and most others in training, but it’s one that it is replicated so many times around the 0 Core Directly Secondary Betting works for us. I’m with them first thing every country. Industry related morning before I leave for work and again Source: HRI; Deloitte analysis. every afternoon with help from a part-time “Our main vet is local to us and our farrier employee who comes in at lunchtime six comes from County Limerick which is also days a week,” says McMahon. where we source our rugs and other tack Secondary employment at Orchard Equestrian on the Ennis Road. represents those jobs “We exercise them in the evening time and Much of the equipment we use around the could be out and about until nine o’clock at yard comes from Dan McInerney’s in Ennis. which are supported by night. They are exercised at home and we It’s all local really.” the spending of the core are regulars at Paul O’Neill’s Kilnacandry Horse Training Facility in Quin, County Clare, industry participants in which really is top-class.” other areas of the economy.

HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST 13 MID WEST

Breeding and Racing industry capital expenditure 2007-2016 (€m)

1 0.5

€12.5m

11

Racecourse BreedersTrainers

A considerable number CAPITAL EXPENDITURE Source: HRI; Deloitte analysis. of international horse Approximately €12.5m is estimated to have been invested in capital projects in the Mid movements from Ireland West in the last 10 years, predominantly by maintenance costs as the infrastructure transit through Shannon Breeders (€11m), with smaller amounts is suitable for the training of top quality of expenditure from Trainers (€1m) and on thoroughbreds. Airport, including all racecourse improvements (€0.5m). those of Coolmore and the The predominantly rural location of breeding The Kilnacrandy Horse Training facility in and racing facilities within the region also Ballydoyle training facility. County Clare is one of only a handful of private means that capital projects provide significant gallops in Ireland, established by amateur opportunities, and subsequent employment, jockey Paul O’Neill. Facilities such as this for local construction and development firms. will incur considerable refurbishment and

14 HORSE RACING IRELAND ECONOMIC IMPACT STUDY: MID WEST THE ECONOMIC IMPACT BREEDERS OF ONE RACEHOURSE 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: MID WEST 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: MID WEST 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: MID WEST 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: MID WEST 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 Ireland and bloodstock auctioneers and agents. 3. Includes Public Trainers, Restricted Licence Holders and point-to-point Handlers.

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

www.hri.ie