Horse Racing Ireland (HRI) have announced a series of budgetary measures for 2009.

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HRI respond to economic crisis
Thursday, 20 November 2008 12:29
Horse Racing Ireland (HRI) have announced a series of budgetary measures for 2009.

These are in response to the challenging economic environment and the reduction in funding to the industry announced in Budget 2009.

The measures include a range of cost saving initiatives, a reduction in prize money, a freezing of grant aid to organisations supported by HRI, a pay freeze for HRI staff and restrictions on racecourse capital development projects.

HRI's Chief Executive, Brian Kavanagh stated: 'Irish racing and breeding has shown consistent growth in recent years. Today Ireland's breeding industry is the third largest in the world and Irish trained horses have won two thirds of the Group 1 flat races run in Britain and Ireland this year.

'Central to this growth and success has been the long term security of funding provided by the Horse and Greyhound Racing Fund.

'The Irish horse racing and breeding industry employs over 16,500 people directly and indirectly and 1.5 million people go racing in Ireland every year.

Brian Kavanagh continued: 'While cutbacks are regrettable, they are unavoidable in the current climate. An improvement in the economic environment and the continuation of secure, long term funding are central to a return to growth in the industry. HRI is already working with Government to achieve this aim and in particular to ensure the resumption of the Racecourse Capital Development Programme as soon as possible. '

The key features of the 2009 HRI budget are as follows:-

Prize Money

Total prize money will be reduced by €4.2 million to €56.5 million in 2009. On a like for like basis this represents a 7% reduction from 2008, which will be applied across all categories of races. Funding for point to point racing will also be reduced.

Racecourse Capital Developments

The Racecourse Capital Development Fund will be curtailed. Any projects on which work has already commenced will be concluded, but no new projects will be approved in the short term.

The Racecourse Capital Development Fund is financed by long term borrowings and until the issues surrounding the future of the Horse and Greyhound Racing Fund are addressed, borrowings to cover necessary future developments cannot be put in place.

Cost Savings

Cost savings of €1.3 million will be achieved within HRI through reductions in central overhead and administration costs, and reduced activity in marketing.

Pay Freeze

A ten month pay freeze will be applied to all staff employed by HRI, Tote Ireland and HRI Racecourses Ltd, with the implementation of the first phase of the National Wage Agreement deferred for seven months.

Integrity Costs

The funding of integrity costs incurred by the Turf Club will be reduced by 5.8% in 2009 with most of the savings to be achieved from greater efficiencies rather than a reduced level of activity.

Racecourse Support Schemes

A number of racecourse support schemes including the sponsorship incentive scheme, the winter racing grant, the share of tote betting and the big screen support scheme will be restricted or amended.

Grants to Industry Bodies

All grants paid by HRI to industry bodies such as RACE, the Irish Equine Centre, the Blue Cross, the Order of Malta, the Irish Farriery School and the Irish Horse Welfare Trust will be frozen at 2008 levels.

HRI Charges

In view of the difficulties being faced by clients, all charges levied by HRI including race entry fees, registration charges, bookmakers' permit fees and the Thoroughbred Foal Levy will be held at 2008 levels.

Breeders Prizes Scheme

In view of the anticipated decrease in income from the Thoroughbred Foal Levy next year the Breeders Prize Scheme will be discontinued with effect from 1st January 2009.

Sponsorship

HRI recognises the importance of sponsorship to Irish racing in recent years and in order to protect the historically healthy levels of race sponsorship, HRI will work together with racecourses and their sponsors to tailor packages to reflect the current difficult environment.


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Story from RTÉ Sport:
http://www.rte.ie/sport/racing/2008/1120/hri.html

Cantoris

A few items here:

The pay freeze is a red herring as we all know. They will do very well for themselves next year compared to the private sector.

They should not cut marketing. This is always the first thing cut by businesses and if they can't get advertsie themsleves, whether it is for racecourse attendance or syndicates, then we will take a huge step back. Marketing needs a phased reduction but a minimum level to promote the game.

Sponsorship needs to be seriously reviewed as the likes of Punchestown could get decimated as the builders and banks pull out. This links into prizemoney. At this time, they should drastically reduce the bottom level of prizemoney to get rid of all the bad horses. I've advocated this for a long time. Secondly, they should drop the top level. They should try to maintain the levels in the mid bracket as this is where your 100-130 rated NH horses earn their crust.

A bigger problem is that the link between betting turnover and horserace funding has been broken and it is now a "grant" which will be reduced over time.

Just some of my thoughts at a very worrying time for our industry.

knighted_1

the old question -is racing a bussiness a sport or an industry -

look back thru history and thru every recession depression and world wars one thing was certain ,there was always horse racing going on somewhere

the sport will survive ,dont know about the business but now would be a good time for hri to review their business model -

big trainers are the ones going to be hardest hit as the numbers dwindle but it might be a good thing in the long run ,

hri are a product of there own incompetence ,for example they were going to ban all hurdle horses rated 77-80 from running but i heard that might be changed now -when you look at it from a financial point of view why ban the **** when you are getting fees off them all weather they good or bad -that has to be addressed

biggest cost saving they should make is to stop giving that spanner hector any more money he would actually make you stay away from the racecourse