Business in Ireland

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Helena Deane Group moderator
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Horse racing faces cost cuts
(BizWorld)

Horse Racing Ireland, the governing body for the industry, has announced a programme of major cost cuts, including a pay freeze for staff, reduced prize money and a claw-back on racecourse expansion plans.

It said the cuts are in response to the "challenging economic environment and the reduction in funding to the industry announced in Budget 2009".
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.

Total prize money will be reduced by E4.2 million to E56.5 million in 2009. On a like for like basis this represents a 7pc reduction from 2008, which will be applied across all categories of races. Funding for point to point racing will also be reduced.

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 of E1.3 million will be achieved within HRI through reductions in central overhead and administration costs, and reduced activity in marketing, it said.

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.

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

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.

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'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".
- 20 Nov 2008, 7:26 pm
Helena Deane wrote: > (BizWorld) > > Horse Racing Ireland, the governing body for the industry, has > announced a programme of major cost cuts, including a pay freeze for > staff, reduced prize money and a claw-back on racecourse expansion > plans. > > It said the cuts are in response to the "challenging economic > environment and the reduction in funding to the industry announced in > Budget 2009". > 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. > > Total prize money will be reduced by E4.2 million to E56.5 million in > 2009. On a like for like basis this represents a 7pc reduction from > 2008, which will be applied across all categories of races. Funding > for point to point racing will also be reduced. > > 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 of E1.3 million will be achieved within HRI through > reductions in central overhead and administration costs, and reduced > activity in marketing, it said. > > 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. > > The funding of integrity costs incurred by the Turf Club will be > reduced by 5.8pc in 2009 with most of the savings to be achieved from > greater efficiencies rather than a reduced level of activity. > > 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. > > 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'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".
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Helena Deane Group moderator
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Re^2: Horse racing faces cost cuts
Did you see the prize money? Am totally in the wrong business.....
- 21 Nov 2008, 10:54 am
Helena Deane wrote: > Did you see the prize money? Am totally in the wrong business.....
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Business in Ireland

Horse racing faces cost cuts

Re^2: Horse racing faces cost cuts