Recession plays its adverse toll on the Irish horse racing industry
Like various sectors around the world, the Irish horse racing industry is also not safe from the perils of recession that has played its adverse toll in the recent years. Where it has closed down several Off-Track-Betting parlours in the state of New York,
America, it has also caused the value of the Irish horse racing industry drop down drastically.
The commercial breeders and the training yards have faced the consequences of 500 million pounds decrease in the value of the racing industry. If the trend continues this way, it can have a bad affect on racing industries the world over, since Ireland is
one of the major producers of thoroughbred horses in Europe. It is estimated that one out of every 10 racehorses born in the world is bred in the country. However, in the previous three years the figure has lowered down considerably.
Colm McCarthy, in his recently published report for the racing and breeding industries has revealed that in 2007, 12,633 thoroughbreds were foaled in Ireland with a shocking decrease to 10,617 in 2009 from a total figure of 100,000 thoroughbreds that are
born world over.
The decline in the trend is expected to prevail with further decrease in 2010. According to Brian Kavangh, chief executive of Horse Racing Ireland, this drop may amount to as much as 15%. As of November 2010, the number of foals in training was 7,500. The
HRI will not be surprised if this number continues to lower. “The number of horses in training is tied to the numbers that are foaled,” Kavangh said.
The recession has caused a trickle-down effect that has engulfed the jockeys, trainers and the stable staff as well. Hundreds of people depend on the horse racing industry for their livelihood, which is now in jeopardy. According to Shane O’Dwyer, the chief
executive of the Irish Thoroughbred Breeders’ Association, there was a decrease in employment opportunities in the Irish horse racing industry from 22,000 to 17,000 in 2008. Not only that, there has been a significant decrease in the demand for racehorses
from 2008 onwards, which saw a decrease in the bloodstock auctions of 60%.
O’Dwyer also stated that since year 2008, the overall value of the racing industry saw a decline. From 1.4 million pounds, it has contracted to a figure of one billion pounds.
Ireland is unique to the horse racing world because the revenue generated from training thoroughbred horses is greater than that generated from the actual racing itself. Ireland also focuses on exporting its top quality horses. In his report, McCarthy states
that racehorses worth of 175 million pounds were exported in 2009. This adds a sizable chunk to the Irish economy. If appropriate steps are not taken to overcome the effects of recession, the economy of the country will suffer greatly.
Other than that, the owners of the thoroughbreds also make significant contributions in terms of revenue. They spend huge sums of money in order to equip their horses with the best training facilities. These owners range from commercial ones to small scale
syndicates.
The track owners also generate revenue by selling their sponsorship rights during the racing season. Again, tough economic conditions have made the buyers reluctant. They are only interested in buying if they see a considerable amount of relatively risk
free return in the bargain.
In light of falling revenues, the Irish government has decided to take some steps in order to save the horse racing industry. One such step is to tax the online betting. However, it has yet to work out a plan that would successfully attempt to do so.
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