Paddy Power and betting tax

Paddy Power and the betting tax

By Stephen Dwyer

In a time when the eyes of millions are upon us with the visit of the Queen and Barack Obama, we are reminded of Ireland’s contribution to the world throughout the centuries. Aside from our rich cultural history which includes Joyce, Yeats, Wilde and Beckett, we are famous for punching above our weight. But over the past few decades, we have become just as famous for our brand names.

Guinness, Waterford Crystal, Riverdance, U2, and Ryanair are recognised in almost every country. Another brand name, the ubiquitous green betting shops of Paddy Power is fast becoming another symbol that signifies Ireland. They are seen as light hearted rogues, bucking the trend of the old-fashioned scrooge-faced bookmaker. But financially there is no doubt that Paddy Power plc. are trailblazing their way through the world of betting.

The first thing you need to know about Paddy Power is that they dance to their own tune. They were founded in 1988 at a time when opening a bookmakers shop in Ireland was much easier to do that in the UK. The business was not founded by a single Paddy Power but by the merging of three bookmakers. This consolidation grew rapidly through shrewd management and they hired their namesake, Paddy Power who was a graduate of business studies from DCU, to become their head of communications and public spokesperson. Clever stuff.

The second thing you need to know about them is that they are shameless self-promoters. Habitually offering odds for controversial events and tongue-in-cheek promotions is centric to their business model. However, when you dissect their marketing drives, many are borderline insensitive and inflammatory.

Shamelessly, Paddy Power has offered odds that the Pope would sign for Glasgow Rangers and that Barack Obama “would not finish” his first term on office (i.e. that he would be assassinated). They ran advertising campaigns following the death of Pope John Paul II featuring Leonardo da Vinci’s Last Supper with Jesus and his apostles surrounded by roulette wheels and betting chips. Most recently, a TV commercial by Paddy Power featuring a cat being kicked into a tree by a blind soccer player became the most complained about advert in the UK in 2010 and the third most complained about advert of all time. Patrick Kennedy, the CEO of Paddy Power defended the ad, shrugging off the criticism by simply saying that it got people talking.

All of this leads us on to point number three; Paddy Power are admittedly, very good at what they do. They have become Ireland’s largest bookmakers with over 200 shops nationwide. As of May 15th, their bank balance is €113 million. €47 million of this is comprised of customer accounts. It would seem Paddy Power have more money in their coffers than many of our banks.

To their credit they have pioneered the world of online betting and their latest financial report notes that online revenues have increased by over one-third. In this year alone they opened 14 shops in the UK. Despite this growth on the back of a record year, their CEO is up in arms about the Governments plans to double betting tax to 2 per cent.

Betting tax in Ireland is used primarily to fund prize money for horse and greyhound racing as well as supporting the racing industry. Understandably, the Government have reduced the funding available. The reduction to Horse and Greyhound Racing Fund is dramatic, from €76m in 2008 to €57m this year. This is a serious shortfall and simply has to be clawed back through the raising of betting taxes.

Irish punters do not pay the betting tax; it is absorbed by the bookmakers. This should continue to be the case as without the industry, their existence would be threatened. In the UK, this year’s budget brought in sweeping changes to the betting tax system.

Chancellor Gordon Brown announced that bookmakers would be taxed on their gross profits at a flat rate of 15%. As of January 2010, he is scrapping the system in which the Government collects betting tax of 6.75% from bookmakers; this is then passed on to punters in a 9% tax.

You cut your cloth to measure as they say, so Paddy Power should do exactly what their cleverly-spun adverts suggest, just grin and bear it.

Hurricane Fly

Hurricane Fly

By Stephen Dwyer





Now there can be no doubt, Hurricane Fly is horse of the year. His performance in the Irish Champion Hurdle at Punchestown will live long in the memory. He is five wins from five starts this season and finishes out the year as an unbeaten Champion. Willie Mullins, trainer of Hurricane Fly noted after his rout in the Irish Champion Hurdle “That was just awesome, the best I’ve seen from him”.

His five length victory and the manner in which he destroyed the small but select field was truly remarkable. He turned a race featuring last year’s Champion Hurdler and Supreme Novice’s winner into a cakewalk. Not often does that happen in a Grade 1 at the end of the season in a race worth €160,000 and the rarity of this occurrence typifies the class of Horse Hurricane Fly is, an indisputable superstar.

Just before the Irish Champion Hurdle was off, my phone received a text from a racing colleague, “there’s a hurricane warning at Punchestown” it read. How right my weatherman friend was. The race was settled in a few short strides between the second and last hurdle, Hurricane Fly jumps hurdles with such speed and prowess that very few can live with him.

This season, Hurricane Fly answered every question asked of him. He is not the biggest horse in the world and prone to injury. Suspensory ligament problems resulted in him missing the last two Cheltenham festivals before claiming the Champion crown last March, at the first time of asking.

Hurricane Fly is by Montjeu, himself a world Champion. One of the top sires in the world for flat horses, his progeny has produced two Irish and two English Derby winners as well as the Prix de l'Arc de Triomphe and St. Leger. Montjeu’s speed has been passed on to Hurricane Fly and he is by far and away his most successful son on the national hunt circuit.

Hurricane Fly was bred in Ireland and sold as a yearling at Goffs for €65,000. He was sent to France and subsequently bought out of the Jean-Luc Pelletan yard for an undisclosed sum on the advice of bloodstock agent Richard Hobson. The acquisition by Hobson (who is also responsible for the purchase of Golden Silver and Pomme Tiepy) was on behalf of retired Belfast construction worker George Creighton and Rose Boyd who runs an equestrian centre in Co. Down. The horse previously won three times in France and was sent to trainer Wille Mullins. Hurricane Fly won at the first time of asking in May 2008 at Punchestown. Since then, he has been beaten only once in eleven starts and is still a seven year old and may improve again next season as he is filling out all the time.

In what could be seen as a passing of the hurdling mantle, Istabraq was honoured at Punchestown this year when a 13ft x 10ft painting was unveiled. The canvas, the largest horse painting in Europe was entitled 'Istabraq - Ireland's Favourite'. By the end of the week, Hurricane Fly was rapidly advancing on that title.

The imperious Istabraq was six when he won the first of his three Champion hurdles, Hurricane Fly is a best priced 7/4 chance for repeating his Cheltenham win next year and if he stays injury free, his ability and turn of foot will see him home. Ruby Walsh said yesterday "He'd win a Group One on the Flat, too, if you wanted"
Long before thoughts of returning to Cheltenham should be entertained, we should reflect a on the achievements of Hurricane Fly this season. When running at Cheltenham this year, he had already won seven Grade 1 races; this was more than all of his Champion Hurdle rivals put together. He became the first horse since Hardy Eustace in 2004 to complete the Champion Hurdle double at Cheltenham and Punchestown.

His win at the Cheltenham Festival under Ruby Walsh was particularly special. This victory means that Ruby is now one of only four jockeys in the past four decades to have completed the treble of Champion Hurdle, Cheltenham Gold Cup and Grand National.

With the season now wrapped up, he is Ireland’s highest rated National Hunt horse. He will have a deserved break.

On a final note, Hurricane Fly’s groom, Gail Carlisle, says his guilty pleasure is carrots.

I feel there will be no shortage of them around Closutton this summer.

Whip Rule

Whip Rule

By Stephen Dwyer

The weather in 1974 was truly woeful. 200 km/h winds were recorded in Co. Down and there was a sparse harvest later in the year. The agricultural industry was on its knees, the cattle market had collapsed and buyers for livestock could not be found. There were stories that farmers would have to lock their trailer at the mart or they might come out and find that someone had dumped a few calves in your trailer while you were inside.

This is an example of a real problem facing an industry. The much-maligned question over the use of the whip in horse racing is not. The issue of the whip in racing has surfaced following this year’s Aintree Grand National which won by Ballabriggs. The horse’s jockey, Jason Maguire was banned for five days after the race for “excessive use” of the whip. Acres of column inches and hundreds hours of interviews have been dedicated to this debate over the past month. At this stage, it must be said that there really is no room for argument, the whip stays.

Only last week a prominent animal rights campaigner wrote in a national newspaper that the whip used in horse racing is a “medieval-style flogging instrument”. At best, this statement is downright disinformation, at worst; it is shallow sensationalism. If you examine a modern day whip, it is not a cat o' nine tails; you will understand that is merely a “persuader” as Ted Walsh rightly describes it.
Visit any tack shop and you will find that a riding whip costs about €50. The “flogging instrument” weighs less than 160 grams, the same as a wheel pump attached to a mountain bike. It certainly does not resemble any type of torture implement. It has a leather handle and the rules of racing state the whip must not exceed 70cm in length. The whip is heavily padded and features throughout a shock-absorbing material which helps to protect horses from injury or discomfort. The notion that jockeys relentlessly beat a horse with an Indiana-Jones style bullwhip is nonsensical and untrue. The specification of modern-day whips has been set in place following on-going consultation with animal welfare groups, including the RSPCA.
These featherweight instruments are used for safety, correction and encouragement, nothing more. And they don’t work all of the time. When Denman ran in the Punchestown Gold Cup last year, he simply didn’t want to know about it. Punchestown is a right-handed track, Denman prefers left. The greatest jockey of all time tried to cajole him around Punchestown but not even Tony McCoy or his whip could encourage Denman. He just said no.

A horse’s skin is a quarter of an inch thick in places, over twice that of a human. Horses are hardy animals; yes they have delicate areas, weak points, like any animal. Even the mighty elephant has a weak neck joint, their Achilles heel. But horses cannot be reasoned with; the very rules of racing dictate that a jockey is required to carry a whip. Sometimes a young colt will need to be kept up to his work to run straight and there are very distinct rules in place about using the whip, designed to protect horse and rider.

Jockeys cannot hit horses with their whip above shoulder height, they cannot use excessive force and they cannot whip horses who are either clearly winning or out of contention. There are a plethora of terms and conditions in place when a jockey attaches a whip to their wrist with a thick rubber band.

In an era where media coverage is so prevalent, slow motion TV shots of jockeys using their whips on horses looks worse than it is. The reality is that jockeys have trouble using their whips in high winds and will gladly demonstrate to you how little discomfort the whip emits. This fact has not stopped some quarters from taking excessive measures and in England, Towcester racecourse had planned to ban jockeys from using the whip in races at the track. This decision was overruled by the British Horseracing Authority.

It is said in racing circles that proper use of the whip is an art form; Lester Piggott spent countless hours practicing on a wooden saddle horse with a pair of reins and a whip. As much as a golfer practises a shot over and over, so too does a jockey, refining the hold on the whip until it becomes subconscious.

There are bigger fish to fry in the world of horse racing than the whip rule.

It’s time to move on.

Townend

Townend

By Stephen Dwyer

It was Winston Churchill who famously said that continuous effort - not strength or intelligence - is the key to unlocking our potential. Champion-jockey-elect, Paul Townend is a young man who knows the former and is gifted with the latter.

Townend, a Cork native, will celebrate his 21st birthday this September and despite his fresh faced appearance, he has been around horses more than most. When Townend was a boy, his father Timmy trained point-to-pointers. Keeping it in the family, his uncle Bob Townend was a prominent jockey in the 1970’s and 1980’s and his uncle Gerry Townend was another top amateur. Paul’s first cousin is Davy Condon, former stable jockey to Nicky Richards and now closely affiliated with Noel Meade. Little wonder then since Paul left school at 15, the die was cast for his life as a jockey.

A precocious talent on the Pony Racing circuit, where he gained invaluable riding experience, Townend quickly progressed through the pony ranks. He then began riding as an apprentice on the flat; his debut was in the summer of 2007 in Ballinrobe on a nondescript Wednesday evening. Claiming a full 10lb allowance, Townend finished third on the Willie Mullins-trained Temlett. From that humble starting point, Townend quickly showed his ability as a horseman and started to win races. The most notable of these was when steering the heavily gambled favourite and top-weighted Emily Blake to a valuable handicap at the Galway Festival in 2007. Following this win, he closed a successful first season by winning on the last day of the flat.
Townend, even for a jockey, is not small. Like many of his former colleagues on the flat who battled in vain against their weight, he switched codes to the National Hunt arena. In doing so he followed the example set by Tony McCoy and Paul Carberry who can now manage their weight more easily than on the flat.

Success over jumps did not elude him for long and at the 2008 Galway Festival; Townend won the Galway Hurdle on the John Kiely-trained Indian Pace. Aside from the Galway win, it was at Closutton and through the opportunities presented by Willie Mullins, a man who knows a thing or two about talent that Townend’s career began to reach unprecedented heights.

In 2008, Willie Mullins was giving a pre-season interview when a boyish-faced stable lad walked past. The lad, replete with body protector and riding hat was carrying a brush and bucket. "See him," said Mullins when he was out of earshot of the lad, "Mention that young fella in your article. Paul Townend is his name. I think he is going to be good. He's bred to be anyway”

Since that day, Mikael D'Haguenet, Hurricane Fly, Golden Silver, Quevega and Zaidpour have all enjoyed Grade 1 success for Mullins and Townend, if you are old enough, you are good enough.

For a 20 year old, Townend riding style is very seasoned. In races, he settles horses early and has a quietness, an assurance about his business. There is an inner confidence which is matched by his work rate. To date, Townend has ridden 487 times this season; Andrew McNamara on 550 is the only National Hunt jockey to have ridden more.

Three weeks ago, a fall in a Handicap Chase at Navan resulted in a broken collarbone for Townend. This fall was on his sixth ride of the day, less than 18 hours previously he had ridden a winner on the flat at Dundalk. Townend is expected to be back riding this weekend at the Fairyhouse Easter Festival, with 76 winners this season, Davy Russell with 67 is his closest rival for the jockey’s title. With a top class book of rides ahead of him and Fairyhouse and Punchestown, Townend is likely to take the champion jockey title.

Incidentally, do you remember Temlett, the horse that Paul had his first ride? Now trained by Arthur Moore’s son, JD, he was the subject of a massive gamble last month in a handicap hurdle at Cork. Backed from 25/1 into 11/2, he overcame a 1061 day absence to make all and win comfortably.

His jockey? Paul Townend of course.

Funny how the wheel turns full circle.

The Irish Cheltenham

The Irish Cheltenham

13 is considered to be an unlucky number for many reasons. For instance there are 13 steps on a gallows and some people are so superstitious they will not leave their house on Friday the 13th. For the Irish at Cheltenham this year, 13 was the luckiest possible number. It was the total amount of Irish winners at the festival, a new record. Irish horses won almost half of all the races at Cheltenham and many of these superstars will be on show for their season finale at Punchestown in a little over two weeks time.

Unquestionably the Punchestown Festival is the highlight of the racing calendar. Considered by many to be “The Irish Cheltenham” Punchestown is certainly not a poor relation to its English counterpart. There are no less than 11 Grade One races over the five days and the quality of racing is unrivalled in Ireland. When Hurricane Fly pipped Solwhit by a neck in the Champion Hurdle last year, it galvanised his status as a Cheltenham champion-in-waiting. Hurricane Fly makes a reappearance at the track this year, preferring it to Aintree and the break will suit him will. We are likely to see Quevega too, she stepped up to 3m to win the World Series Hurdle in 2010 and taking on the boys will be no problem this year again for this wonder mare.

Baby Run will return to the track too, he won a Champion Hunters Chase there in 2009 and has no fear of the big fences on a track that features the only cross country banks course in Ireland. One horse that will draw the crowds more than any other though will be the mighty Kauto Star. The best chaser in a generation will line up for the Guinness Gold Cup on May 4th, a race his stable mate Denman could only finish fourth in last year. It is possible that Kauto will finish his career at Punchestown. Clive Smith, Kauto Star’s owner is on record to have said "It would be a great way to round off the season if he could win in Ireland. Any decisions on his future will be made after that.” If Kauto Star wins the Guinness Gold Cup, the racecourse owners will need a new roof because the crowd will have lifted it off.
The Punchestown Festival is welcomed too with open arms by the locals around Naas. Since it was extended to five days in 2008, attendance is steadily in the region of 100,000 with 20% of this originating from overseas. The local economy benefits to the region of €50 million and the extension of the race week to include a Saturday was a very shrewd and welcome move.

Cheltenham is a left-handed track, Punchestown is right-handed. This difference though is not unique. The culture around the Punchestown festival in Ireland is on a more local, grass-roots level than in Cheltenham. 14 racecourses including Cheltenham, Aintree and Newmarket are owned by a conglomerate called the Jockey Club, the 466 acres at Punchestown are owned by The Kildare Hunt Club and not HRI. Credit must go to The Kildare Hunt Club for their flexibility and innovation in running the meeting.
As it is a mid-week meeting, the race times at Punchestown are scheduled around work times, the first race starts at 3.40pm, the last around 7.15pm which lends the opportunity for race-goers to attend without taking the full day off work. Many local schools close for racing and numerous organisations in the area adopt a laissez-faire approach to the week, including the well-documented case of Kildare County Manager receiving one privilege day to attend the Punchestown races.

The meeting receives huge local support and the interest of owners and trainers is due to the prestige and €2.2 million prize fund. This year’s Punchestown Festival has been moved back one week and will take place from Tuesday May 3rd to Saturday May 7th. Due to a late Easter, this is the first time in ten years that the meeting will be held in May.

Racing was first held in Punchestown in 1868, which was also the year of a British Royal Visit. The Queen will not be in attendance this time around but Kauto Star, Hurricane Fly and Quevega will be. Isn’t that enough royalty for anybody?

Cheltenham 2011 Festival Preview

Cheltenham 2011 Festival Preview

By Stephen Dwyer

The Cheltenham festival, described annually by those in the racing world as “The Equine Olympics” celebrates its centenary this year. Starting on Tuesday next, 28 prestigious races will be run over four days and all involved will be hoping to share a total prize fund of €4 million (£3.38 million).

Cheltenham communications manager Andy Clifton expects an attendance of over 220,000 for the festival, which will contribute £50 million to the local economy. Over €500 million will be gambled in the course of four days, which is one of the highest valued betting events outside of the World Cup.

10,000 Irish racing fans will descend upon the track at Prestbury Park to witness first-hand the illustrious meeting. The very best of Irish, British and French horses will be pitted against each other, each race having an average value of £125,000.

The Irish invasion of Cheltenham began in earnest in the late 1940’s when Cottage Rake trained by the great Vincent O’ Brien, won three consecutive Gold Cups (1948,1949,1950) and Hatton’s Grace also won three Champion Hurdle’s in a row (1949,1950,1951). The Gloucestershire track has since become a mecca for the Irish, many of whom save year-round for the pilgrimage.

The gambling stories about Cheltenham are legendary, one Irishman won enough on Istabraq in the Champion Hurdle of 1998 to pay off his mortgage, then he proceeded to lose his house on Doran’s Pride in the Gold Cup a couple of days later. “It was only a small house anyway,” he is reputed to have said.

Irish and English alike know by now that “there is no such thing as a sure thing” in Cheltenham. Since 2006, fifteen horses were beaten there at odds of under 2/1. The track itself is carved out of cleeve hill and its undulating dips and rises do not suit every racehorse.

At maximum capacity the grandstand at Cheltenham will hold nearly 70,000 spectators; it will swell with anticipation at 1:30 on Tuesday as the starting tapes go up for the first race, the Supreme Novice’s Hurdle.

The world-famous Cheltenham roar marks the moment when the festival really begins but even that does not escape the betting frenzy. Paddy Power once rigged up a decibel recorder and offered 5/1 that the noise will be between 130-140 dB, same as that of a jet engine.

If you are lucky enough to be at the festival do not be surprised to see racegoers donning unusual headwear on the first day. The racecourse is giving away thousands of free bowler hats to honour those who started the meeting in 1911.

With the wait almost over, we will keep you updated with tips, advice and the inside track on all the runners and riders for the most popular horse race meeting in the world.

Out of the past 72 races run in Cheltenham, 24 of them were won by Irish horses. With St. Patrick’s Day taking place on day three of the festival, Irish eyes may well be smiling around the Cotswolds and beyond.

Star Neuville

Star Neuville

By Stephen Dwyer

When the Champion Bumper was first run at Cheltenham, many traditionalists heralded it as the “beginning of the end of the festival”. What they meant by this was of course the inclusion of an all-flat race into jump racing’s annual Olympiad would somehow dilute it. As is often the case with the old guard when faced with new ideas, they were merely fearful of the unknown. Such is the popularity of the Champion Bumper nowadays that winning it is seen as a major stepping stone in the career of a young horse.

Indeed since its first running in 1992, three Champion Bumper winners have returned to the Cheltenham the next year to win their Festival race (Montelado won the Supreme Novice Hurdle, Florida Pearl won the RSA Chase and Monsignor won what is now the Neptune Investment Novices' Hurdle). There have been of course major upsets, Dunguib last year and Cousin Vinny in 2009 both lost the Supreme Novices Hurdle when favourite. Cue Card bids to set the record straight this year.
The Champion Bumper is the race in which the Irish boast the highest strike rate of winners at Cheltenham. 14 out of 18 runnings have been won by Irish-trained horses. From his base on the Kilkenny-Carlow border, John “Shark” Hanlon is dearly hoping to continue the Irish stranglehold on the race this year with Star Neuville.

A former cattle dealer, it was only a few short years ago that Hanlon took out a trainer’s license; he was kicked by a bullock in 2001, an incident which kept him low for a year. Along with that year’s foot and mouth crisis, he eventually changed profession in 2006 when taking the plunge into horse racing on a full-time basis. A trickle of horses flowed into his yard, many from contacts he had made in the cattle business but one owner in particular; Barry Connell has brought many fine horses to Shark’s stables including Luska Lad and Star Neuville.

Star Neuville has raced five times, second in his first point to point; he duly obliged next time out when winning by ten lengths at odds of 4/6. He was an £80,000 purchase at the Cheltenham sales last April and has since progressed to become one of Ireland’s leading hopes in the Champion Bumper.

He boasted a very good time at a Galway bumper in August when unsuited by the fast going and his latest run was when beating a Willie Mullins trained hotpot, Champagne Agent at Leopardstown over Christmas.

It is worth noting that the Leopardstown bumpers over Christmas are a significant signpost for Cheltenham hopefuls. Wither or Which, Florida Pearl and Total Enjoyment all won bumpers at Leopardstown before taking their respective Champion Bumpers in Cheltenham.

Shark has admitted "I think the world of this horse and he's improved loads since he won at Leopardstown". Looking closely at his last run in Leopardstown, he put the race to bed in a matter of strides. He did idle slightly when the front but perhaps this was boredom as the race was wrapped up at this stage, It was 4 lengths back to Champagne Agent and 22 lengths back to the third horse.

Star Neuville is currently fourth in the betting for the Champion Bumper, hovering around the 12/1 mark (from 25/1) he represents solid each-way value in the race. Did I mention that Champion jockey Tony McCoy also looks set to take the ride? McCoy will be bidding for his second Champion Bumper victory, following on from Liberman in 2003. His authoritarian style of riding will suit the five year old gelding. Star Neuville is also Shark Hanlon’s only Cheltenham runner.

Hanlon had intended on running the five year old gelding in a Grade 2 bumper in Newbury last month but instead his connections opted to complete his festival preparations with a racecourse gallop at Leopardstown on Sunday last. This may have been a boost to the chances of Star Neuville as horses that do not run in the same calendar year as the Champion Bumper have an excellent record in the race. Many trainers put their best bumper horses away for the race and five of the last eight winners had not run after New Year’s Day.

Ever honest, Hanlon has stated that Star Neuville would probably start favourite if trained by bumper king Willie Mullins. In less than two weeks we will see just how good he is, but as a progressive, experienced horse, he goes to Cheltenham with every chance.

In the end, stars always shine, we will hope that this one lights up the sky for the Shark.