1 Annual Report HORSE RACING IRELAND HORSE RACING IRELAND ANNUAL REPORT 2013 01 CONTENTS MISSION STATEMENT 02 CEO, BOARD MEMBERS & COMMITTEES OF HRI 03 CHAIRMAN’S REPORT 05 CHIEF EXECUTIVE’S REPORT 07 FINANCE REVIEW 09 MARKETING REVIEW 11 TOTE REVIEW 15 HRI RACECOURSE DIVISION 17 IRISH THOROUGHBRED MARKETING REVIEW 21 RACING REVIEW 23 AUDITED REPORTS & GROUP FINANCIAL STATEMENTS 29 HORSE RACING IRELAND ANNUAL REPORT 2013 02 MISSION STATEMENT TO DEVELOP AND PROMOTE IRELAND AS A WORLD CENTRE OF EXCELLENCE FOR HORSE RACING AND BREEDING. In identifying its mission statement, The claim to be a world centre of Horse Racing Ireland (HRI) has placed excellence is a realistic one and the emphasis on Ireland’s position in both benefits of the strategies pursued to the international horse racing and achieve the mission will be reflected breeding industries and the quality in the economic, cultural and social of the product being offered to the environment of the country. racegoing public. This mission gives expression to the The continuity of funding necessary to values and sense of purpose of the develop strategies to achieve the mission organisation. is the key element of the HRI Strategic Plan. HORSE RACING IRELAND ANNUAL REPORT 2013 03 CEO, BOARD MEMBERS & COMMITTEES OF HORSE RACING IRELAND Horse Racing Ireland BOARD Joe Keeling Chairperson Neville O’Byrne Vice Chairperson Representative of the Racing Regulatory Body Bernard Caldwell Representative of persons employed directly in the horse racing industry Noel Cloake Representative of persons employed in the industry William Flood Representative of the Racing Regulatory Body Michael Hickey Representative of the Racing Regulatory Body Francis Hyland Representative of authorised bookmakers Noel Meade Representative of racehorse trainers John Moloney Representative of authorised racecourses Eimear Mulhern Representative of racehorse breeders Jim Nicholson Representative of the horse racing industry in Northern Ireland Mary O’Connor Representative of the Racing Regulatory Body Meta Osborne Representative of the Racing Regulatory Body John Power Representative of racehorse owners HORSE RACING IRELAND ANNUAL REPORT 2013 04 APPOINTMENTS HRI RACECOURSES BOARD TIPPERARY COMMITTEE & REMUNERATION Joe Keeling Chairperson Tim Hyde Chairperson COMMITTEE William Flood John Power Joe Keeling Chairperson Pat Byrne Michael Ryan Neville O’Byrne Dave McGrath Ciaran Conroy Tim Hyde Matty Fogarty AUDIT COMMITTEE Brian Kavanagh Daniel O’Connell Con Haugh Chairperson Paul Shanahan Bernard Caldwell ITM COMMITTEE Peter Roe Francis Hyland John Oxx Chairperson Meta Osborne David O’Loughlin TOTE COMMITTEE Nick Wachman Noel Meade Jim Nicholson Chairperson John Osborne Brian Kavanagh BOOKMAKERS COMMITTEE Michael Hickey Pat Garvey Mary O’Connor Chairperson Richard Pugh Pat Kenny Bernard Caldwell Derek Iceton John Flannelly Raymond Horan Eimear Mulhern Nathaniel Lacy Neville O’Byrne John Byrne Dairine Walsh FAIRYHOUSE COMMITTEE LEOPARDSTOWN COMMITTEE HRI NOMINATIONS / Pat Byrne Chairperson Dave McGrath Chairperson APPOINTMENTS Noel Meade David Allman Cork Dara Mullen Mary O’Connor John Murphy Paul Grimes Jim Mulqueen Mary Wallace Eimear Mulhern Dundalk David Robinson Chris Jones Philip Furlong Dermot Weld Ciaran Kennelly FINANCE COMMITTEE Joe Collins Joe Keeling Chairperson MEDIA RIGHTS COMMITTEE Neville O’Byrne John Moloney Chairperson Irish Equine Centre William Flood Mary O’Connor Margaret Davin John Moloney John Power John Malone Eimear Mulhern Meta Osborne Jim Nicholson NAVAN COMMITTEE Joe Kiernan John Power William Flood Chairperson Brian Kavanagh Noel Cloake Punchestown Deirdre McFadden David Mongey Chairperson FOAL LEVY COMMITTEE Ruairi O’Coileain Sandy Persse Jim Beecher Chairperson Eamon Duignan Dick O’Sullivan William Flood Ger Lyons Nyall Speirs Noel Meade James Murphy PROGRAMMES COMMITTEE RACE Derek Iceton William Flood Chairperson Bernard Caldwell Bernard Caldwell Noel Cloake Margaret Davin Joe Foley Noel Meade David Wright John Power FIXTURES COMMITTEE John Moloney William Flood Chairperson Meta Osborne Noel Cloake Eimear Mulhern Noel Meade Sue Phelan John Power John Moloney Meta Osborne HORSE RACING IRELAND ANNUAL REPORT 2013 05 CHAIRMAN’S REPORT showed increases across racecourse Support for improved prizemoney will and off-course operations. However, continue to be a priority. Prizemoney racehorse ownership has fallen each in Ireland has dropped by 24% year since 2008 and remains one of since 2008 while, at the same time, our greatest concerns as this is the improving in both France and the UK, real bedrock of the industry. so we face growing competition in a rapidly globalising market for racing. I have prioritised increases in prizemoney to reinforce the Growth in bloodstock sales and a ownership base and encourage surge in exports to over €200 million potential owners with a reasonable are the real high-points of 2013. This prospect of a return on investment. is excellent news for the industry During 2013 we announced a 5% and confirms that the reputation of I am pleased to present the 2013 increase in prizemoney combined Irish bloodstock is creating vibrant Annual Report for Horse Racing with a 10% reduction in administrative demand internationally. We now Ireland. Although we have not yet left charges for owners and trainers and have an opportunity to increase the recession behind, there are many also approved increased resources our standing in existing and new encouraging signs of recovery in key for the promotion of ownership in the markets for thoroughbreds but that areas of Irish racing. Bloodstock domestic and international markets. opportunity may be missed if we fail sales were once again the star All of these measures will go some to secure funding and administrative performer of the Irish thoroughbred way to retaining horses in training structures appropriate to our role industry, racecourse attendances and encouraging new owners to get as a leader in the international returned to growth and the Tote involved with the sport. thoroughbred scene. HORSE RACING IRELAND ANNUAL REPORT 2013 06 We are still awaiting the Turf Club and Horse Racing Ireland In presenting these financial implementation of the Indecon and as a result, a streamlining group statements, I would like to thank all Report, produced by independent was established as a joint committee of my colleagues on the Board of economic consultants, which of the Turf Club and Horse Racing Horse Racing Ireland together with identified the need to introduce Ireland. The aim is to streamline those who have given generously measures to secure a significant the administration of racing which of their time to serve on subsidiary increase in taxation from the betting remains fragmented between the boards and statutory and advisory sector. The Betting (Amendment) two organisations and we are still committees. Bill 2013 was published in July last working towards achieving that goal. and was subject to a three-month I also thank Chief Executive Brian standstill period under the EU Improving racecourse facilities is also Kavanagh and his executive team, Technical Standards Directive. The of the upmost importance. The Horse who carry out the day to day tasks of Bill is still progressing through the Racing Ireland Racecourse Capital the management and administration Dáil and is expected to be enacted Development Scheme saw new and of Irish horse racing. The Board by mid-2014. It represents the upgraded facilities at 22 of Ireland’s and executive team continue to first step to a sustainable funding 26 racecourses. In 2013, Kilbeggan, show great dedication to the overall system, which will ensure that Killarney, Roscommon, Sligo and administration, promotion and racing continues to generate a high Tipperary racecourses carried out development of the industry and in economic return. major upgrades to their racecourse trying to plan for future growth facilities. Each of these developments and vitality. Another key recommendation of was 40% funded through the Horse the Indecon Report related to the Racing Ireland Racecourse Capital Joe Keeling integration of functions between the Development Fund. Chairman HORSE RACING IRELAND ANNUAL REPORT 2013 07 CHIEF EXECUTIVE’S REPORT is a real concern for the future of Bloodstock is highly mobile and if the sector. It must be hoped that we are to attract foreign owners to imminent betting legislation will breed, train and race in Ireland, we create a more level playing field in must have a racing infrastructure the betting market. that will stand up to international comparison. Thankfully, the new Key 2013 figures included: betting legislation, set to progress in 2014, represents the first step to • Bloodstock Sales - a sustainable funding system which up 42% from €93.8m to €133.4m will ensure that racing continues to • Export Sales - produce an economic return to the up 17.8% from €174.3m to €205.4m country and that we can re-build • Horses in Training - employment levels in an industry The year ended on a more positive down 0.4% from 9,238 to 9,199 in which Ireland has great national note than we have seen since the • Number of Owners - advantages. country entered into recession in down 5.8% from 4,195 to 3,953 2008, with our end of year figures • Total Tote Betting - The horse racing and breeding sector demonstrating upward trends in up 8.2% from €47.7m to €51.6m is an industry which contributes c. many areas. Racecourse attendances • On-Course Bookmakers - €1bn annually to the Irish economy, were up, which is a good sign of down 6.8% from €76m to €70.8m employs in excess of 16,000 people recovery, the Tote reported increases and is responsible for exports worth on and off-course and 2013 was the There are many positives in the €205m. Ireland remains the largest third consecutive year of double-digit 2013 figures but we remain acutely producer of thoroughbred foals in growth in bloodstock sales at public aware of the underlying threats Europe and is fourth in the world. auction in Ireland, which at €133.4 to the future of the industry. With million is now worth almost twice the overall funding cuts of almost 30% The demand for Irish bloodstock still 2009 figure.