Analysis of the economic impact of the Irish Thoroughbred ... - Itba.info

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2. Horse Racing 2.1 Employment 2.2 Expenditure by Owners on Horse Training Fees 2. Horse Racing This section outlines the contribution of the racehorse training sector to the equine industry and the broader Irish economy. This sector is the key part in the equine industry. A decline in the racehorse training sector would have a direct impact on the other sectors of the equine and supporting industries. Table 2.1.1 shows the number of people employed directly in services related to the horse racing sector. Table 2.1.1 : Employment related to the Horse Race Training sector 2008 Sub Sector Number Per Sub Sector Number Per Sub Sector (Full Time) (Part Time) Licensed Trainers * 784 Jockeys and Apprentices 261 Qualified Riders † 117 482 Stable Staff * 1,784 1,751 Administration support staff 378 Educational Institutes † 151 Point-to-Point training yards 492 Breaking Yards / Breeze ups 172 Pre-Training 215 Total 4,354 2,233 Total(using1PT=0.5FT) 5,471 Source: HRI Fact Book 2008 *, ITBA Survey see Appendix B † In the following section, the total expenditure by race horse owners on training fees is calculated. These training fees are funded from the discretionary income of race horse owners. Based on the ITBA confidential survey of race horse training operations, the following assumptions have been made. • 3 categories of horse race training operations - Category 1 : €100/day training fee -Category2:€50/day training fee - Category 3 : €40/day training fee • The distribution of the number of horses in training (12,122, HRI Fact Book 2008) in the 3 categories is -Category1: 900 - Category 2 : 5,900 - Category 3 : 5,322 • Horses are in training for an average of 260 days per year • Horses are in livery for the remaining (105 days) of the year. • Cost of keeping a horse in livery per day is - Category 1 : €50/day - Category 2 : €35/day - Category 3 : €25/day 7
8 Table 2.2.1 : Expenditure by owners on basic horse training fees Using the above assumptions, the amount of money spent on training and maintaining race horses in 2008 was €196 million. This figure is broken down below Table 2.2.1. Trainer No. Training Livery No. days No. days Training Livery Total (€) Category Horses Costs Costs Horses in Horses in Expenditure Expenditure (€) per category per day (€) per day (€) Training Livery (€) 1 900 100 50 260 105 23,400,000 4,725,000 28,125,000 2 5900 50 35 260 105 76,700,000 21,682,500 99,267,500 3 5322 40 25 260 105 55,348,800 13,970,250 69,319,050 Total 196,711,550 Source: ITBA estimates based on confidential survey, HRI Factbook 2008 2.3 Importance of Prize Money The above table covers basic training fees. Expenses and Other fees attributable to the horse owners but not included above, include: • Entry fees • Insurance • Gallops / Schooling • Transport • Jockeys’ Fees • Veterinary / Farrier etc. Table 2.2.2: Total Expenditure by Owners on Horse Training and Racing fees (euro €) Section Value (€ million) Total from Table 2.2.1 196,711,550 Entry Fees * 17,224,000 Insurance (‡) 6,200,000 Veterinary/Farrier ‡ 14,542,800 Jockeys Fees ‡ 5,372,971 Transport ‡ 9,695,200 Point to Point ‡ 20,868,000 Prize money % going to Trainers, Jockeys, etc ‡ 14,496,240 Gallops \ Schooling fees ‡ 4,700,000 Total 289,810,761 Source: HRI Fact book 2008 *, See Appendix C for a description of how the ‡ figures were calculated 2.3.1 Prize money analysis This section analyses the relationship between prize money, on the one hand, and training fees expenditure and stable staff employment on the other. Over the period since 1999, expenditure on training fees and stable staff employment averaged about five times the total prize money available. In 2008, for example, €289 million was spent on training fees to win available prize money of €60 million. In 1999, €130 million was spent on training fees to win available prize money of €20 million.
Page 1 and 2: Analysis of the economic impact of
Page 4 and 5: 1.1 Introduction 1.2 Salient Points
Page 6: 1.6 Research This report was prepar
Page 11 and 12: 10 Figure 2.3.1.1 : Relationship be
Page 14: 3. Betting 3.1 Employment 3.2 Racec
Page 18 and 19: 4. Breeding 4.1 Employment 4.2 Stal
Page 20 and 21: 4.3 Cost of keeping mares, foals, y
Page 22: 4.5 Economic Contribution of the St
Page 25 and 26: 5.3 Prize Money 5.4 Comparison with
Page 27 and 28: 26 The second example is Enniscorth
Page 30: Cheltenham Gold Cup winner Denman w
Page 33 and 34: 32 Derivation of Racecourse Employm
Page 35 and 36: Appendix C Training and Racing Fee
Page 37 and 38: 36 © ITBA 2009 All rights reserved

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