Irish Breeding And Racing The Most Prominent Of Any Major Racing Nation

The fact that the horse racing and breeding industry supported 28,900 jobs and generated €1.84bn in total expenditure in 2016, are amongst key findings of an Economic Impact Study conducted by Deloitte for Horse Racing Ireland, which is published today.

The report, launched by Minister for Agriculture, Food, and the Marine, Michael Creed TD, highlights the scale and success of the sector in Ireland but also the breadth of an industry that is prominent across the island, with breeders and trainers located in virtually every county.

The €1.84bn total direct and stimulated expenditure of Irish breeding and racing is comprised of €914m core industry expenditure with secondary expenditure of €927m as the initial expenditure filters through the economy.

Breeding and Racing play a vital role in the rural economy, providing significant employment both directly in the 9,500 FTEs in the core industry and in a further 5,700 directly-related roles including those in equine science and veterinary, farriers and horse transport.  When off-course betting and secondary employment are included the total number of jobs supported comes to 28,900 FTEs.   

The popularity of racing is demonstrated by the 1.3m who attended the 356 fixtures at the 26 racecourses in Ireland in 2016 (second only to the GAA championship in terms of sporting attendances). In excess of 7,000 Irish people have an involvement in horse ownership and 25% of the Republic of Ireland’s adult population say they have an interest in racing.

Global standing
The industry also has a significant global impact.  Alan Switzer, Director at Deloitte, commented: 
“Our research identifies that Breeding and Racing activities in Ireland are the most prominent and important of any country on a per capita basis, having 50 thoroughbred horses per 10,000 people – many multiples more than most racing nations. Ireland was second only to the USA as the biggest seller of bloodstock at public auctions in 2016 by value, and more than 20% of the top 100 Flat horses in the world were Irish bred. Ireland also boasts many of the world’s leading breeders, trainers and jockeys.”

The industry’s international standing is further highlighted by the investment of many of the world’s largest thoroughbred breeders and owners (2,300 horses in training being owned by international owners), providing significant direct investment to the island.

Development of the Industry

Joe Keeling, Chairman, Horse Racing Ireland, said:
“The headline figures in this new report back up the assertion that breeding and racing in Ireland is a unique industry with a wide rural reach and a sizeable economic impact at home, but also one that continues to set global standards on many of the most important measures for our sector.  Notwithstanding our success, and the popularity of racing, the most important issue that needs to be addressed is to put in place a long-term and sustainable funding structure for the industry which can allow it to be developed to its fullest potential, increasing both the economic and social dividend for the country.”

Alan Flanagan, Partner at Deloitte, commented:
“The global nature of racing brings competition between the top racing nations for owners, breeders and horses. It is therefore important that the Irish Breeding and Racing industry continues to invest in its infrastructure, whether that is continuing the programme of capital investment in racecourses, ensuring prize money remains competitive, the education and development of its skilled workforce or retaining high class bloodstock, particularly stallions, in Ireland. ”

Other points of interest:

• Close to €200m of bloodstock was sold overseas at public auction by Irish vendors, which when taken together with private sales, nomination and keep fees, results in effective exports of over €370m, larger than many other forms of agriculture.
• Despite the recession of the past decade, the report estimates that more than €330m has also been invested in Breeding and Racing facilities and infrastructure, nearly €100m of this from racecourses, with substantial future investment in progress.
• A significant proportion of the €52m revenue generated by Ireland’s 26 racecourses is from commercial sources, the majority of this being media rights whose importance has increased significantly over the last decade.
• Major festivals are the key drivers of racecourse attendance and direct economic impact, the seven largest forming 39% of total attendance in 2016. Off-course expenditure – such as in local bars, restaurants and hotels, often by international visitors – at these festivals also provides substantial economic impact.
• The Breeding and Racing industry in Northern Ireland is estimated to generate £32m of direct and indirect expenditure, driven by its two racecourses and network of trainers and breeders.  The limited contribution received from the betting industry is currently hindering growth prospects here.

Minister for Agriculture, Food and the Marine, Michael Creed TD, commented:
“The Economic Impact Study of Irish Breeding and Racing 2017 carried out by Deloitte on behalf of Horse Racing Ireland clearly demonstrates the significance of the indigenous thoroughbred industry to the Irish economy and our position as global leaders. On behalf of the Government, my aim is to support the continued development of the industry’s world-class position and reputation.”

Full report available for download at www.hri.ie
 

About Deloitte
At Deloitte, we make an impact that matters for our clients, our people, our profession, and in the wider society by delivering the solutions and insights they need to address their most complex business challenges.

As one of the largest global professional services and consulting networks, with 244,400 professionals working in more than 150 countries, we bring world-class capabilities and high-quality services to our clients.

In Ireland, Deloitte is the second largest professional services firm with over 2,700 professionals providing audit, tax, consulting, and corporate finance services to public and private clients spanning multiple industries. Our people have the leadership capabilities, experience, and insight to collaborate with clients so they can move forward with confidence.