Horse Racing Ireland announce Budget for 2021
- Minimum
prize money level increased to €10,000
- Strategic
capital projects at Equine Centre and new All Weather Track to be further
advanced
- Brexit
support scheme for breeding sector to be announced in early 2021
- Short-term
measures announced to counteract twin threat of Covid-19 and Brexit
- Extra
opportunities for horses at all grades with 14 extra fixtures in 2021
Horse Racing Ireland (HRI)’s budget for 2021, which was approved
at its Board meeting on Monday December 14, prioritises the reinstatement of minimum
prize money levels, increasing opportunities for horses at all levels,
incentives for breeders to meet the challenges posed by both Covid-19 and
Brexit and strategic investment in medium and long-term capital projects to
secure the growth of the industry and its contribution to the economy.
Brian Kavanagh, Chief Executive of Horse Racing Ireland,
said:
“The HRI budget for 2021 is set in the context of two
lifetime challenges hitting the sector simultaneously and the priority is to
shield the industry from the impacts of both Covid-19 and Brexit, while being
cognisant of the welfare of our horses and the people that work with them.
“Thanks to the effort of many, the finances of Horse Racing
Ireland are stable as we come to the end of one of the most challenging years any
of us will ever face. The Board wishes
to acknowledge the effort and sacrifices made within the industry this year and
is pleased to announce a progressive budget for 2021 which is aimed at giving some
clarity in an uncertain environment.
“In framing its budget, HRI is following the key objectives
set out in our Strategic Plan for the industry 2020-2024 which was launched
earlier this year. The quality of the Irish racing and breeding product remains
strong and, working within our Plan, I am confident that we can put 2020 behind
us and look forward with some optimism.”
HRI
welcomed the allocation of funding by the Government in Budget 2021 to the
redevelopment of the Irish Equine Centre in Johnstown, County Kildare and looks
forward to working with the Department of Agriculture, Food and the Marine to
progress this much needed project which will ensure the highest possible
standards of disease prevention and surveillance within the industry.
Recent
events have emphasised the demand for more all weather racing and the budget
makes provision to commence the project to construct Ireland’s second All Weather
Track at Tipperary, subject to a successful evaluation of the funding position
and business case in Quarter 1 2021.
The
budget also provides for a new racecourse grant scheme to enhance stable yard
capacity and to ensure the provision of one stable for every horse, an
important factor in welfare and disease prevention.
The racecourses and businesses which depend on them such as
bookmaking, Tote betting, catering were a sector which came under much
pressure. That said, with Government
supports, prudent management and better than expected media rights revenue,
Ireland’s racecourses showed their resilience in 2020.
- HRI provided
a series of financial supports to racecourses and will continue to work with
racecourses in 2021 on a case-by-case basis to assist them where necessary to
mitigate the impact of Covid-19 and racing behind closed doors on their
business activities. Budget provision
has also been made for a national awareness campaign for the safe return to
racegoing when that is deemed permissible by the Government.
- 2.Prize Money / Opportunities
Budgeted prize money for 2021 will be €60.7m, a reduction from
the original 2020 budgeted figure of €68.1m and the 2019 actual figure of €66m.
Cuts imposed in response to Covid-19, combined with 40 lost fixtures, will
deliver a lower prize money total of €50.9m for this year.
The key priority to support the grass roots of the industry
has been the restoration of the minimum prize money levels to €10,000 per race,
while Group and Graded races will see a partial claw back from their
significantly reduced 2020 levels in order to maintain the international
competitiveness and appeal of the major Irish races under both codes.
Investment is also being made in increasing opportunities
for horses of all grades with 14 extra fixtures already announced for 2021.
This takes the overall total to 384, reflecting both the demand for Ireland’s
high quality racing product and the number of horses in training in Ireland –
which, despite the challenges posed by Covid, has seen a 3.5% increase in 2020.
Horses in training remains one of the key drivers of employment in rural areas.
3. Industry
Training and Education
A
key focus of the budget is to ensure that educational and training
interventions in the racing and breeding industry are relevant, fit for
purpose, nationally accessible and support both the equine and people welfare
agenda.
HRI
will provide funding of €1.6m to industry training and education schemes in
2021, including €700k to RACE.
4. Ownership
Investment
has once again been committed to the recruitment and retention of owners in
Ireland in 2021, with further funding for the trainer marketing support scheme
and continued development of a CRM system. Extra promotional activity in 2021
will include podcasts and a new owners members club. The aim is to
increase the pool of owners for all levels of the industry, building on the
strong growth in recent years.
5. Industry Grants
Grants
of €1.31m and €1.1m in 2021 were approved for the Irish Equine Centre and Irish
Thoroughbred Marketing respectively, both of which also receive funds from the
Thoroughbred Foal Levy.
6. Point-to-Point Racing
There
will be an increase of €1,000 per fixture in funding levels for point-to-points
for 2021.
7. Integrity / Racecourse Services
The Board approved a €14m spend for integrity and racecourse
services, including provision for an increased level of out of competition drug
testing, with further innovations proposed in the recording and broadcasting of
racing.
8. Brexit Supports
While the breeding industry was able to continue to operate
at close to normal levels in 2020 and owners stayed loyal to their trainers, most
of the major Irish sales were either postponed, cancelled or moved abroad which
contributed to a very difficult year for Irish breeders, vendors and sales
companies.
The serious short and medium term risks posed by Brexit to
the breeding industry are reflected in the Board’s decision to set aside an
amount of €1.3m to support breeders and the sale of Irish-bred horses, with details
of a new scheme to be announced early in the New Year.
Irish Thoroughbred Marketing will increase its activities in
global markets such as the United States, Australia and the Middle East as well
as focussing on encouraging international buyers to safely return to purchasing
bloodstock at sales held in Ireland.
Brian Kavanagh, Chief Executive of Horse Racing Ireland,continued:
“2020 was a year when prudence with the industry’s finances
was an absolute necessity and the resilience of our sector enabled many to get
through the year. That said, 2020 was
anything but normal and the spectacle of high quality racing in front of empty
stands was a depressingly familiar sight. Regrettably this new normal will
continue to be the theme as we head into 2021, although recent developments
regarding vaccines and travel do allow some cause for optimism regarding a safe
return to more normal activity.
“The allocations in Budget 2021 have been guided by the HRI
Strategic Plan for the industry with growth in fixtures and prize money
targeting increased participation in the sector. HRI will ensure that our prize money remains
internationally competitive and we will announce a new scheme in early 2021 to provide
financial support to the breeding industry and assist Irish vendors in the post
Brexit environment.
“The Irish Tote alliance with the UK Tote Group will commence
from 1st January 2021 following the issue of a new seven-year Tote
licence by the Government in October, while the latest phase of redevelopment
of Leopardstown has just been completed, although unfortunately we will not be
able to showcase it to the public at the forthcoming Christmas Festival.”