ANNUAL REPORT 2012HORSE RACING IRELAND CONTENTS PAGE MISSION STATEMENT MISSION STATEMENT 2 To develop and promote Ireland as a world centre of CEO, BOARD MEMBERS & COMMITTEES OF HRI 3 excellence for horse racing and breeding. CHAIRMAN’S REPORT 5 In identifying its mission statement, Horse Racing Ireland (HRI) has placed emphasis on Ireland’s position in both the CHIEF EXECUTIVE’S REPORT 7 international horse racing and breeding industries and the quality of the product being offered to the racegoing public. FINANCE REVIEW 9 The continuity of funding necessary to develop strategies to achieve the mission is the key element of the HRI Strategic Plan. MARKETING REVIEW 11 The claim to be a world centre of excellence is a realistic one and the benefits of the strategies pursued to achieve the mission will be reflected in the economic, cultural and social environment of the country. TOTE REVIEW 15 This mission gives expression to the values and sense of purpose of the organisation. HRI RACECOURSE DIVISION 18 IRISH THOROUGHBRED MARKETING REVIEW 22 RACING REVIEW 23 AUDITED REPORTS & GROUP FINANCIAL STATEMENTS 29 1 Horse Racing Ireland Annual Report 2012 Horse Racing Ireland Annual Report 2012 2 CEO, BOARD MEMBERS & COMMITTEES OF HRI HRI BOARD APPOINTMENTS & FIXTURES COMMITTEE PROGRAMMES COMMITTEE REMUNERATION Joe Keeling Chairperson COMMITTEE William Flood Chairperson William Flood Chairperson Noel Cloake Noel Cloake Noel Meade Joe Hernon Roderick Ryan Vice Chairperson Joe Keeling Chairperson Sue Phelan Noel Meade Representative of the Racing Regulatory Body John Power John Power Neville O’Byrne Roderick Ryan John Moloney John Power Bernard Caldwell Representative of persons employed directly in Neville O’Byrne John Moloney the horseracing industry AUDIT COMMITTEE HRI RACECOURSES BOARD TIPPERARY COMMITTEE Noel Cloake Representative of persons employed in the industry Jim Nicholson Chairperson Joe Keeling Chairperson Tim Hyde Chairperson Bernard Caldwell William Flood John Power William Flood Representative of the Racing Regulatory Body Con Haugh Joe Walsh Michael Ryan Francis Hyland Pat Byrne Ciaran Conroy Joe Hernon Representative of racehorse breeders Dave McGrath Matty Fogarty Tim Hyde Daniel O’Connell Brian Kavanagh Paul Shanahan Michael Hickey Representative of the Racing Regulatory Body Peter Roe BOOKMAKERS COMMITTEE ITM COMMITTEE Francis Hyland Representative of authorised bookmakers TOTE COMMITTEE Mary O’Connor Chairperson Joe Hernon Chairperson Noel Meade Representative of racehorse trainers Bernard Caldwell David O’Loughlin Jim Nicholson Chairperson Raymond Horan Noel Meade Brian Kavanagh Pat Garvey John Moloney Representative of authorised racecourses Neville O’Byrne John Osborne Michael Hickey Pat Kenny Richard Pugh John Flannelly Jim Nicholson Representative of the horseracing industry in Northern Ireland FAIRYHOUSE COMMITTEE Joe Osborne Nathaniel Lacy Dick O’Sullivan Dairine Walsh Neville O’Byrne Representative of the Racing Regulatory Body Pat Byrne Chairperson Eimear Mulhern Michael J Murphy HRI NOMINATIONS / Noel Meade LEOPARDSTOWN Mary O’Connor Representative of the Racing Regulatory Body Bernard Caldwell APPOINTMENTS Dara Mullen COMMITTEE CORK John Power Representative of racehorse owners Eamon Grimes Mary Wallace Dave McGrath Chairperson Joe Walsh Chairperson Tom Taaffe John Murphy FINANCE COMMITTEE John Oxx David Allman DUNDALK Mary O’Connor Philip Furlong Joe Keeling Chairperson Jim Mulqueen Ciaran Kennelly William Flood Neville O’Byrne Eamon McIlroy John Moloney John Power IRISH EQUINE CENTRE Roderick Ryan MEDIA RIGHTS COMMITTEE Joe Hernon Brian Kavanagh John Moloney Chairperson Margaret Davin Mary O’Connor Marcus Swail John Power PUNCHESTOWN David Mongey Chairperson FOAL LEVY COMMITTEE NAVAN COMMITTEE Sandy Persse Dick O’Sullivan Jim Beecher Chairperson William Flood Chairperson Nyall Speirs William Flood Noel Cloake Noel Meade Michael Cunningham RACE James Murphy Jimmy Owens Bernard Caldwell Derek Iceton Donal Matthews Margaret Davin Bernard Caldwell Deirdre McFadden David Wright Joe Foley Ruairi O’Coileain 3 Horse Racing Ireland Annual Report 2012 Horse Racing Ireland Annual Report 2012 4 CHAIRMAN’S REPORT I am pleased to present the 2012 Annual racing and we will continue to be active c. €1bn contribution per annum it One of the key recommendations of a loss of competitiveness through Board and executive team have shown Report for Horse Racing Ireland. Our in overseas markets, capitalising on the already makes to the economy. The the Indecon Report, to be acted upon budget reductions are holding back the great dedication to the task of carrying industry continues to feel the impact unequalled reputation of Irish bloodstock. report identifies the need to introduce as a priority, related to the integration development of the sector. This report the industry through these difficult and of the recession that has gripped the measures to secure a significant increase of functions between the Turf Club and confirms the economic potential of challenging times and in trying to plan country for the last number of years. The most significant development of the in taxation from the betting sector. The Horse Racing Ireland and as a result, a horse racing, echoing our contention for the future growth and vitality. Despite this, bloodstock sales grew for year was in July, when the Minister for Government has already published a Bill streamlining group has been established that thoroughbred racing and breeding the third year in a row and Tote turnover Agriculture, Food and the Marine, Simon to amend the Betting Act 1931 which as a joint committee of the Turf Club and is ready to play an important role in Joe Keeling improved, mainly through growth in Coveney TD, published the Indecon will provide for the extension of betting Horse Racing Ireland. Ireland’s economic revival. Chairman international co-mingling deals. On the Report, produced by independent duty to online and remote betting and other hand, 2012 saw a reversal in the economic consultants. This followed Minister Coveney is engaged with the Horse Racing Ireland welcomes the In presenting these financial statements, I attendance growth of the previous year, the completion of their review of certain Minister for Finance in this respect. Indecon Report and congratulates would like to thank all of my colleagues mainly caused by bad weather which saw aspects of the Irish horse racing industry Minister Coveney, his Department and on the Board of Horse Racing Ireland the cancellation of 20 fixtures, some of initiated by the Minister shortly after he The Irish horse racing and breeding Indecon on the work done. It addresses together with those who have given which were rescheduled during the year. assumed office. industry has been struggling with the the case for a betting levy regime to generously of their time to serve on The number of owners was down 11.7% annual reductions in the Horse and bring all betting providers into the subsidiary boards and statutory and and the number of horses in training The report calls for “additional and Greyhound Racing Fund. It undermines tax system and provide an adequate advisory committees. I also thank was down 6%, both of which are a cause sustainable funding for the development the basis of good planning which Horse and consistent level of funding for Chief Executive Brian Kavanagh and his for great concern, as ownership is right of the sector, accompanied by an Racing Ireland was established to the horse racing industry. Our current executive team, who carry out the day at the heart of the horse racing industry. equal priority to maximise efficiency, deliver and risks eroding the competitive inability to make long-term plans due to day tasks of the management and effectiveness and value for money”. advantage which has been painstakingly to variable exchequer supports and administration of Irish horse racing. The Although domestic demand for ownership This is based on the well-established built up over many years. remains depressed for now, overseas potential of the industry to aid national investment holds great promise for Irish economic recovery by increasing the 5 Horse Racing Ireland Annual Report 2012 Horse Racing Ireland Annual Report 2012 6 CHIEF EXECUTIVE’S REPORT Bloodstock sales provided a boost for by SIS and the racecourse. The apparent The summary of areas where we saw Horse Racing Ireland welcomed the While demand for Irish bloodstock There were many notable achievements by the overall industry in 2012, growing modest improvement in prizemoney declines were: publication of the Indecon Report and is continues to grow, the reality is that Irish-trained horses on the international for the third year in a row. However, the masks the fact that Ireland continues committed to working with the Minister the majority of that demand is from scene during the 2012 Flat season, with number of horses in training and the to lose ground to its international • Total Horses in Training down 6% to and his Department to assist the overseas and for export. We will work Aidan O’Brien winning the first four number of racehorse owners continued competitors, with prizemoney increases 9,238 implementation of the recommendations to encourage more international owners English Classics and only narrowly failing to fall, reflecting the impact of the for 2013 recently announced in both • On-Course Bookmakers’ Betting which will open up the prospect of to keep horses in training and breeding to be the first trainer ever to win all five depressed