Money Matters

Money Matters

By Stephen Dwyer



€169.21 is the riding fee for a professional National Hunt jockey in Ireland. Out of that amount, €8.97 is deducted for the Jockeys’ Accident Fund. A further €1.65 goes to the provision of medical and ambulance services at race meetings. Not too many people pay for the privilege of an ambulance following them at their place of work, the riding fee is well earned.

Last season, Paul Carberry rode 263 horses in Ireland, his combined riding fees amounted to €44,502. Supplementing this, his 10% share of prize money won totalled €60,568, taking his yearly earnings on the track to around €105,000. For the toils he exerts on his body, it is a small amount. He must take daily medication for his missing spleen following a fall at Noel Meade’s gallops in 1999 this resulted in a five month layoff. His body has suffered a litany of injuries, a punctured lung, multiple rib fractures, collar bone. It’s a long list for someone who turns 37 next week.

Throughout his career, Paul Carberry has always represented the grass roots of horse racing in Ireland. His forthcoming autobiography is entitled “Swinging from the Rafters”. The apt naming of the book is a reference to the time he caught and swung from the rafters of the winning enclosure at Aintree when he won the Grand National aboard Bobbjo.

Another time in Fethard, he rode a horse into the snug of McCarthy’s bar, just for a laugh, he admitted. You get the inkling that Carberry is a likeable rogue who answers to no-one. His graft and honesty are the seat of his popularity among punters and fans of the sport.

On the other end of the scale, Horse Racing Ireland is the governing body of horse racing in Ireland. It is somewhat of a unique entity. It is one of the only commercial semi-state organisations in existence whose remit extend into Northern Ireland. The two racecourses in Northern Ireland, Down Royal and Downpatrick, are under the control of the HRI and not the British Horseracing Authority.

HRI also owns Fairyhouse, Leopardstown, Navan and Tipperary racecourses. The HRI group also operate the Irish Thoroughbred Marketing and the Tote.

Like most of us, HRI did not escape the consequences of the budget, a €1.6 million reduction in their funding resulted in a drop in prize money, but they are still an expensive organisation to run.

The salary of Brian Kavangh, current CEO of HRI is €175,200. On the face of it, this is about four times as much as a staff nurse. Granted, his responsibilities are significant. He is responsible for the overall administration of horse racing in Ireland and the promotion of the sport internationally. Still, his salary is greater than that of the CEO is Bord Bia, or indeed the Health and Safety Authority or the Higher Education Authority.

For a key position, Kavanagh is well compensated. In 2008 he earned €313,000. He received massive bonuses worth €65,000 for 2008 and €57,000 in respect of his performance in 2009. To his credit, Kavanagh took a voluntary pay reduction of just over 8 per cent in 2010. That said, he still earns a gross figure a shade under €3,370 per week.

The Irish Bookmakers Association recently called for a reform of the way revenue is spent at HRI. Whether or not the HRI represents value for money is of course subjective. There are many top-class facilities for jockeys and trainers at racecourses, yet until recently there were race courses that did not even have separate changing rooms for female and male jockeys.

From a regulatory perspective, HRI are subject to an annual audit by the Comptroller and Auditor General. The administration costs have reduced by over 28% since 2008 and the group has shed 33 staff, from 177 to 143.

Ireland enjoys an enviable position as a leading horse racing nation worldwide.HRI do have a long term funding program in place to boost growth within the industry. Whether it is a case of spending more wisely, frugally or creating new initiatives to protect the industry, only time will tell.

All eyes are now on you Mr. Kavanagh. Don’t let us down.

The Quiet Man

The Quiet Man

By Stephen Dwyer

Adorning the mantelpiece in Colm Murphy’s sitting room are two slightly dulled sliver trophies. Angular in shape, it is only on closer inspection that the inscriptions read “Supreme Novices' Hurdle Winner 2004 - Brave Inca” on one and “Smurfit Kappa Champion Hurdle 2006 Winner - Brave Inca” on the other. Whereas other trainers might frequently shine such awards, you get the impression Colm Murphy has higher priorities on his agenda.

Aside from the mantelpiece, his dormer house at Ballinadrummin, eight miles south of Gorey is dotted inside with crystal cups and trainers prizes, most "of no intrinsic value" Murphy is quick to point out at his leisure. The house is adjacent to a collection of impressive and carefully-planned training facilities. Among these are separate sand and fibre gallops, a collection of horse walkers and an indoor lunging ring for schooling younger horses. All features are part of in a yard that averages fifty horses in training at any one time. It is a meticulous operation, an extension of the mind of an individual who is systematic and precise. Little wonder he is a qualified accountant.

Colm’s father Pat, kept horses and was a former jockey. Around the horse sales and races from a young age, Colm was a successful amateur jockey, 27 racecourse winners and some 50 point-to-point successes followed a humble start work-riding local Wexford owner Bert Allen's 'pointers' on his weekends off from studying at Waterford IT.

Throughout his amateur career, Colm rode several bumper winners for Aidan O’ Brien. While working for O’ Brien at Rosegreen for a shade over six years, his undertakings included handing the accounts, race entries and declarations. This was to prove invaluable in time to come. Recalling the years he spent in Tipperary, Murphy notes "I went to work for Aidan for a summer and I ended up staying for six years, and when you're around someone like that you can't help but learn”. During that time Murphy swore he would never become a trainer, a promise that was broken in 2000 when he took out a trainer’s license.

Still in his mid-thirties, Colm Murphy is one of the few trainers to train the winner of a championship race at the Cheltenham Festival while still in their twenties. Aidan O'Brien immediately springs to mind as another who achieved this accomplishment when Istabraq claimed the Royal & Sun Alliance Hurdle in 1997. The parallel does not end there; both men are softly spoken, natural horsemen and very shrewd judges at the sales.

At Listowel in April 2000, Colm made his racecourse debut as a trainer. A Mandalus mare, Alottalady finished eighth of seventeen in a maiden hurdle in Listowel when Colm also rode the mare. It was to be two years until he would taste success as a trainer. In March 2002, on his first start for Murphy, Anvil Lord would be a 20/1 winner in a maiden hurdle at Cork. Anvil Lord was an injury-prone sort and the young trainer demonstrated skilful handling when the gelding won two of his next three races.

Previous to the success of Anvil Lord, Colm had paid €18,000 for a son of Good Thyne out of a Commanche Run mare. The gelding went through the sales ring four times before Murphy acquired him on behalf of the Novice’s Syndicate. On his first start, Brave Inca, as the gelding was named, finished well down the field. He was then eighth to future Cheltenham Gold Cup winner Kicking King. Unusually, Brave Inca’s first three runs at the racecourse were over hurdles, Murphy’s faith in the ability of the gelding never wavered and when he filled into his frame he won his next two starts in a bumper.

The career of Brave Inca was phenomenal, he would become the outstanding hurdler of his generation and it would catapult Murphy into the public arena through the winner’s enclosure in Cheltenham. By the time his career ended, Brave Inca had a 44% strike rate, winning fifteen races including the two major Cheltenham hurdles and numerous Irish Champion hurdles.

When asked about the exploits of the horse, “Brave Inca built this house” divulged Murphy, almost retiringly. Not much more needed to be discussed.
At the height of Brave Inca’s exploits, Pat Redmond, a Wexford-based hotelier, instructed Colm to acquire a chaser at the Goff’s sales in 2004. Parting with €34,000, Redmond recalls: “I was at the sales with Colm Murphy and his father (Pat). We had looked at a lot of horses and Big Zeb was a big, scopey looking horse who just caught the eye; he looked a nice animal on the day.” In agreement, owner and trainer, Big Zeb was put into training and he soon became a top class chaser. Prone to the odd jumping clanger, Colm admitted “he’d run his race before he got to the track but this year he is a proper horse”.

Now unbeaten since winning the Champion Chase in Cheltenham last year, Big Zeb is Irelands highest-rated chaser in training. He was also crowned “horse of the year 2010” and is joint favourite for this year’s renewal of the Champion Chase, a race he has every chance of winning.

When questioned Big Zeb and Brave Inca running in the Purple and Gold colours of the Wexford flag, Murphy shrugs his shoulders and smiles knowingly. Colm has a way of giving you an answer without the urgency for words.
In Ireland last season he turned out 23 winners, earning over €400,000 in prize money for his owners

It may be a long time before those mantelpiece trophies are polished; it’s almost a guarantee many more are on the way.

Thyestes 2011

Thyestes 2011

By Stephen Dwyer

Whatever the weather, January is always good to Gowran Park. If it survives a 7.30am inspection, this Saturday, January 22nd will see the annual renewal of the Thyestes Chase, the busiest days racing of the year at the Kilkenny track. Forming the centrepiece of a seven race card, the valuable Grade A Handicap Thyestes Chase features a prize fund of €90,000 which is supplemented by local sponsors Connolly’s Red Mills.

First held in 1954, the Thyestes Chase is a race steeped in history. Amongst a host of exalted names, previous winners of the race include Arkle and Aintree Grand National champions Hedgehunter and Numbersixvalverde. It is the highlight of the season for Gowran Park and the most prestigious race of the year in the South East.

Each year, the inevitable question is asked about how the race was named. In Greek Mythology, Thyestes was the son of Pelops, King of Olympia (where the first Olympic games were held). But Thyestes was also a flat horse who was bred by Mount Juliet-based Major Victor McCalmont. Thyestes was a sprinter, rated the third best 2-y-o of 1930, winning both of his only starts. Retired to stud due to injury, he lent his name to The Thyestes trophy, which was presented to the Kilkenny Horse Show. The trophy was won by a horse owned by Mr. John McEnery of Rossenarra Stud in Kells, Co. Kilkenny. The McEnery Family presented it to Gowran Park for the first running of the Thyestes Chase in 1954 and it has been perpetual ever since.

In keeping with the valuable prize on offer, the Thyestes is a trappy event which is difficult to win. Entries from the bottom of the handicap have dominated in recent times. The 3m, 16 fence course is challenging and takes no prisoners. Margaret Fogarty, Gowran’s racecourse manager concurs “it takes a very good horse to win this fiercely competitive event”.

A closer look at the trends of the race reveals some useful pointers. Since 2000, no winner of the race has carried more than 10st 11lb and ever since official ratings were published, no horse has won off a mark higher than 133.

The current 5/1 favourite for the race is Pomme Tiepy. The mare is owned by USA-based banker Rich Ricci (who also owns Mikael D'Haguenet and Zaidpour) and trained by Willie Mullins. Pomme Tiepy is well weighted, and without a win in almost three years, she also finished 12th in the 2010 renewal. She was recently a gallant third in the Paddy Power Chase at Leopardstown and a repeat of that performance should see her make the frame.

Champion trainer Willie Mullins is seeking his fourth success in ten years in the race. He also saddles The Midnight Club and Ballytrim, but both appear to have it all to do at the weights. Mullins ran no less than five of his horses in the race last year and given his current stable form his runners are sure to make a good account of themselves, so much so that some bookmakers are offering 7/4 about Willie Mullins to train the winner of the race.

The Thyestes is recognised as the trial for the Aintree and Irish Grand Nationals and repeat victories in the race are rare. Since 1954, only five horses to win the race more than once. The most recent of these was Priests Leap in 2008/2009. Last year’s winner, the Jimmy Mangan trained Winstone Boy is not without a chance. The subject of a massive on-course gamble in 2010 (backed from 14/1 into 5/1) the Mallow-based handler’s 10-y-o is proved on heavy ground and reported to be in good order.

Vying for second favouritism and trading at 10/1, Agus A Vic trained by Pat Martin is a former winning hunter chaser who has won over 3m 1f. Stamina is not an issue and his trainer notes “He goes on pretty much everything, although a bit of ease helps and he doesn’t like gluey ground, I would hope that he goes to the Thyestes with a good chance”

Gowran Park are expecting a crowd of about 8,000 on Saturday. Ever experts at implementing initiatives to racegoers, the management team are offering a free shuttle bus and reduced €10 entry to OAP’s and the unemployed for the second consecutive year. This is in keeping with innovation ever since 1952 when Gowran became first ever racecourse in Ireland to feature a live commentator.

Times and technology may have changed since then, but Thyestes day continues.

You can’t keep a good thing down.



Race Day Notes:

Thyestes Day 2011 takes place on Saturday, January 22nd. The racecourse will open at 11am. Tickets are available at Gowran Park on the day, priced at €17 for adults and €10 for OAP/ students/unemployed. Group discounts are available by contacting Gowran Park on www.gowranpark.ie or contact 056-7726225.

Betting Notes:

Pomme Tiepy 5/1, Agus A Vic 10/1, The Midnight Club 10/1, Alpha Ridge 10/1,Siegemaster 12/1, Ten Fires 12/1, Hangover 12/1, Sam Adams 12/1,Whinstone Boy 14/1, 16/1 BAR

Willie Mullins to train the winner of the Thyestes: 7-4
The Thyestes winner to win at the 2010 Cheltenham Festival: 16-1
The Thyestes winner to win the 2010 Irish Grand National: 14-1
The Thyestes winner to win the 2010 Aintree Grand National: 25-1

Celtic Collapse

Celtic Collapse

by Stephen Dwyer



You have to feel sorry for Ivan Yates. Elected a TD at just 21, he served in the Dáil for 21 years.During his tenure he was minister for Agriculture and dealt with the BSE crisis. When he was 28, Yates, along with his wife, Deirdre Boyd, established Celtic Bookmakers.

From the time Celtic opened their first bookmakers premises at Tramore in 1987, the business would expand rapidly. At its peak, 300 staff would work between 60 shops. Now it owes €6 million to AIB, €200,000 to the Revenue Commissioners and the Yates faces financial ruin.

Of the €6 million debt owed to AIB, €5.1m is backed by a personal guarantee in Yates's name. If this debt is not repaid, all of Yates's assets, including the family farm at Enniscorthy and a house he built for his 78 year old mother are liable to be sold. AIB may even be able to take his €49,000 a year ministerial pension. It is a harsh reality but one that he has taken on the chin.

A current snapshot of Celtic shows that the business operates 47 shops in Ireland. Celtic made a loss of €1.5 million in the year to July 2010.

How is this case you might ask?

As with a lot of businesses, during the heady days of the Celtic Tiger, Yates expanded too fast. He bought out rival bookies at top-dollar prices at the height of the boom (he paid €5m for 10 shops in 2006). Many of these deals included “upward only” rental agreements. Exacerbating the situation, Celtic was hit with both massive cuts in consumer spending and the increase in popularity of online
gambling over the past few years.

Celtic was trying to compete in a shrinking market. The major firms of Paddy Power and Ladbrokes have the advantage of an online presence. Yates admitted that he could not develop an online presence and thus lost valuable market share.

Restrictively, the costs of setting up an online betting operation are very high, advertising and maintenance are also astronomical and this may have acted as a disincentive to set up such a service. Since 2007, revenue at Celtic has fallen by 50%, the smaller firms are exposed and at risk. William Hill are closing 20 shops in Ireland, adding to the 150 betting shops have been forced into closure over the past two years.

Like a lot of us, he thought that the growth would have continued. He over-stretched, he took a gamble, he lost and now he must pay the price.

By ways of comparison, Paddy Power was established a year after Celtic. Unlike the sole-trading Celtic, Paddy Power was a triumvirate of three bookmakers that joined together in 1988. Paddy Power now operates 212 shops in Ireland (including 3 shops at race courses) and 107 shops in the UK. Their business model was very different to Celtic and particularly evident after the emergence of the Internet. The onset of internet and betting exchanges have revolutionised the betting industry
and those that do not adapt risk being left behind.

To his credit, the former minister has provided employment for over twenty years and attempted to turn the business around. About 30 firms went bust in Ireland every week last year but Celtic Bookmakers may yet be saved. Boylesports has emerged as a possible bidder for some of the Celtic shops and perhaps jobs may yet be saved.

Admirably, amidst the walls of debt, Yates has stood up and said said that he takes full personal responsibility for the business' failure and can't blame anyone or anything else. His very words are “Let’s face up to this, deal with and get on with it”

Keen your chin up Ivan Yates. Fall seven times, stand up eight.

King Kauto

Camberley Heath Golf Club is located about 40 miles west of London, the hundred year old course is said to be as challenging as it is visually stunning. Clive Smith, better known as the owner of Kauto Star, was a captain of Camberley Heath and it was from there that he drew the inspiration for the purple, green and yellow colours that Kauto Star races in. The distinct colours represent the sprinkling of heather and pine on the golf course.

Smith, 59, is a racehorse owner for over twenty years. He set out to acquire a top class chaser in 2004 and his original target had been Garde Champetre. He bid some €560,000 for this horse but JP McManus topped Smith’s offer by €60,000 and in doing so, set a record for the most expensive national hunt ever purchased. Through his bloodstock agent, Anthony Bromley (who is also responsible for the procurement of Binocular, Albertas Run and Celestial Halo) Smith parted with €400,000 for Kauto Star, following a recommendation from Paul Nicholls who saw clips of the horse running in Auteuil where he was a Grade Three winner over hurdles.

In France, Kauto Star was a precocious, prodigious talent, known fondly as 'L'Extraterrestre' ('The Extraterrestrial') predominantly for his otherworldly ability; he has since become the outstanding staying chaser of his generation. Twice a winner of the Tingle Creek, Champion Chase, Gold Cup and a three-time winner of the Betfair Chase, he is seeking an unprecedented five-timer in the King George VI Chase at Kempton.

Over the past six seasons, he has run in 25 races, winning 17 of these (a 68% strike rate) and placed second in 5, he has fallen twice and unseated just once. In 2007 his owner collected a £1 million bonus following a promotion by the Betting Exchange Betfair, who offered the prize money to the connections of the winner of the Betfair Chase, King George and Cheltenham Gold Cup. Kauto Star claimed all three at his ease and the Betfair Million scheme was dropped a year later.

Smith’s costly investment has paid considerable dividends. When Kauto Star topped the Order Of Merit in 2007, (an initiative designed to reward horseracing excellence and participation) his owner collected £200,000 from the British Horseracing Authority. Since then he has progressed further and become the first National Hunt horse in history to win over £2m in prize money.

Kauto Star is the highest rated national hunt horse throughout the past fifty years. Timeform have allocated the ten year old gelding with a rating of 191, alongside Mill House, this is the third highest rating of all time Only Flyingbolt (210) and the peerless Arkle (212) surpass him.

On St .Stephen’s Day, despite the arctic weather conditions, the organisers of Kempton Racecourse are expecting a crowd of 20,000 to witness Kauto Star write himself into the history books. In doing so he aims to beat Desert Orchid’s joint record of four wins in the race. In all likelihood it will be his penultimate start, only the Gold Cup remains as his solitary target after St. Stephen’s Day.

Reports from many quarters believe that Kauto Star is simply too old to win another Gold Cup. This was substantiated amid reports around Cheltenham this year that no 10 or 11 year old horse has ever won the Gold Cup. This is untrue, on no less than eighteen occasions have horses between the ages of 10 and 12 won the Cheltenham Gold Cup, notably Desert Orchid (10), Cool Dawn (10 & 11) and Silver Fame (12).

Notwithstanding, plenty around this age bracket have also won the King George. Desert Orchid won the race as both a 10 and 11 year old, Wayward Lad (10) and Edredon Bleu (11) further bolster the claims of Kauto Star.

Trainer Paul Nicholls has yet to report signs of decline in the gelding. His jockey for the King George, freshly-crowned and BBC Sports Personality of the year, Tony McCoy noted before his recent run at Down Royal that “Kauto Star is as good a horse as I have ever seen”. Coming from a 15-times Champion jockey who won a King George on Best Mate, who also won three Gold Cups, this is the highest endorsement that can be bestowed.

Kauto Star has a compelling style over fences, his jumping has improved year on year and it culminated in a staggering performance in the King George. Winning by 36 lengths, Kauto was imperious and set a new record in the race, breaking Arkle's 44 year old record of 30 lengths.

At a recent press day at Manor Farm stables, Kauto Star faced the reporters and cameras coolly, comfortably, like the professional he is. Adorned in a warm blue blanket blazoned with the words ““I Will Make History” he looked every inch a champion. Making history for Kauto Star is second nature, he is already the first horse in history to win a Gold Cup, lose the title and then reclaim it.

Will he become the first horse to win five King George’s?

Without a doubt, remember he is not of this world and so he makes his own path among the stars.

Kauto Star Facts:
Foaled: 19 March, 2000
Breeding: Village Star (FR) - Kauto Relka (FR) (Port Etienne (FR))
Breeder: Mme H Aubert
Owner: Mr Clive D Smith
Trainer: P F Nicholls
Career placings: 21/11F2353/112/21F/111111/211122/1U11-11F-1
Prize Money to date: 2.45 million Euros (excluding a £1 million Betfair bonus and £200,000 order of merit prize)

Joyeux Noël

Here’s a question, what happens in France every Christmas Eve that does not happen in either Ireland or England? No, it’s not Santa Claus exclusively visiting the land of Les Bleus. Would you believe; perish the thought, that there is horse racing in France on the 24th of December. Unless the likes of Willie Mullins, Noel Meade and Barry Geraghty have taken full advantage of the recent cold snap to carry out some early Christmas shopping, it is likely for those involved in National Hunt racing that Christmas Eve is the day when many last-minute gifts are hastily acquired for their loved ones.

Over the Christmas holidays, while many of us put our feet up and watch racing from the comfort of our living rooms, the trainers and jockeys of Ireland undergo one of their busiest times of the year. For instance, between Ireland and the UK, there were ten scheduled meetings on St. Stephen’s Day last year. In 2009 the racecourses were not even playing catch-up like is the case of late with race meetings being abandoned unceasingly due to the prevalent snow and ice.

In an effort to clear the backlog of postponed races, Fairyhouse racecourse staged a stellar midweek card recently. It was a superb all-Grade affair, the type normally reserved for showcase Saturdays. It featured no less than four Grade One races alongside a Grade Two and a Grade Three. With trainer Willie Mullins a major player on the day, it whetted the appetite for his Christmas assault on the Leopardstown festival and further afield.

Make no mistake; the standard of racing around Christmas is first rate. For years now, the big races run around this time of year have become trials for the major Cheltenham races in March. For instance, this year's Arkle winner, Sizing Europe, won the €90,000 Grade 1 Bord Na Mona Novice Chase on St. Stephen's Day at Leopardstown. RSA Winner Weapon's Amnesty was a short head second to Pandorama in the Knight Frank Novice Chase at the same meet. With Kauto Star aiming for his fifth King George in Kempton on St. Stephens’s day, beating the record of Desert Orchid, this is a peak in the racing season and a true showcase for the best of equine and human talent and what that partnership entails.

The organisers of the Leopardstown Christmas festival expect a crowd of 55,000 to attend over their four day meet. Given that just over 3,000 appeared at Fairyhouse for their all-Grade card, it gives the racing public an opportunity to make up for lost time and turn out en masse and view the superstars of Irish racing before many of them will be put away until Cheltenham.

Looking at the racing calendar for the week between St. Stephen’s Day and New Years is akin to picking up the Christmas RTE Guide and seeing that all your favourite films are on at different times. You are not left disappointed with the fare that is served up. There are so many highlights to choose from, The Long Walk Hurdle at Newbury, The Christmas Hurdle and Feltham Chase at Kempton, the reappearance of "horse of the year" Big Zeb taking on Golden Silver in Paddy Power Dial - A - Bet chase, the rematch of Hurricane and Solwhit. The racing is prestigious and the rewards are immense.

A quick snapshot of the prize money shows that The Paddy Power Chase is worth €190,000, the future Champions Novice Hurdle €80,000, The Lexus Chase €150,000, little wonder racing around this time of year attracts the very best of Irish and UK runners. For some trainers and jockeys, there this represents a nice Christmas bonus, for others it represents a learning curve.

Such was the case after a poor performance in last year’s King George, where trainer Nigel Twiston-Davies’ star jumper Imperial Commander was beaten 63 lengths by Kauto Star. A lesson was learned, ability is nothing without realisation and this was a turning point in the horses career. From that point on, Twiston-Davies conditioned the horse to the point where he was described as “a ball of muscle” when taking on Kauto Star in The Gold Cup and we all know the result. We will see examples of such progression this year, from unexpected quarters perhaps.

Often it is the improvements you see in horses from Christmas to March that makes watching racing at this time of year so special. Horses are like athletes, they peak at various points in their careers and if you can time these peaks, the results can be spectacular.

For the past few weeks, amidst the frozen ground and arctic climate, horses fitness has to be maintained, novices must undergo schooling sessions, work in the training yard carries on, uneasy, unending. When the silks are donned and the hats are tilted in victory in the winner’s enclosures over the next few weeks, it is such thoughts that make for a Happy Christmas for all.

In France they say “Snowy Christmas, wonderful summer”, there will be plenty of time for fresh green pastures for horses once the season is over, but for the horses now there is work to be done and races to be won, and maybe an extra carrot or two as a treat, left behind by Rudolph.

E = mc2

E = mc2

2005 was not all that long ago, five short years, yet it seems like an age. At Cheltenham that year, Kicking King won the Gold Cup, Hardy Eustace the Champion Hurdle and in Aintree Hedgehunter claimed the Grand National. In all there were nine Irish winners at Cheltenham and eight at Aintree A good year for the Irish then but an even better one for Horse Racing Ireland (HRI).

It was amidst the halcyon days of the Celtic Tiger that long-since-lost phenomenon, when CEO of HRI, Brian Kavanagh reported the attendance at Irish racecourses was 1.43 million; betting was up, the Tote grew and value of horse sales at public auction flared from €113 million to €146 million. In 2005, 16,500 people were employed in the racing industry and the breeding sector alone contributed €330 million to the economy.

Amidst all the back-slapping and cheap money, there were surprisingly striking changes in the taxation structures of the racing industry. The stallion taxation exemption was ended and betting tax was reduced from 2% to 1% and in turn, absorbed by the bookies. Now where are we five years later? Without a palpable need to be rhetoric, we are languishing in the chaos caused by a collapsed countrywide cocoon; as every radio and television station is affirming, the party is well and truly over.
A recent report by UCD based economist, Colm McCarthy stated that c.14,000 people are directly employed in the breeding and horse industries. The most recent figures for Britain are 18,500 employed directly with 52,000 employed in betting, the overall figures are 100,000 full time equivalent jobs being supported, directly or indirectly in racing.

In Ireland, the figure of 14,000 stated in the McCarthy report does not include those people employed in betting, nor should it. Paddy Power stated of late that the majority of their betting revenue does not stem from racing; this is not surprising given their marketing engine and website which has diversified heavily into soccer and sports betting.

The Tallaght-based firm have become Ireland’s eighth largest company, not just in the gambling or online betting market but in a list of every single Irish company. They are exempt from inclusion as they do not shoe horses; they offer 50/1 for Brian Lenihan to pose as Santa Claus when delivering his 2011 Budget.

Novelty aside, there are stark figures to contend with. There has been a cut in Government funding in the region of 22% over the past two years to the industry. As racing and gambling are yin and yang, the minister for finance does not believe he is getting a big enough slice of the betting pie, and he may be right.

In 2002, €68 million in tax was generated from €1 billion of betting turnover in the industry, in 2009 the tax take has more than halved to €31 million despite a 550% increase in betting turnover to €5.5 billion. This is not an anomaly; it is an errant failure in the financial management of betting tax, despite the 1% reduction in 2005.

Simply put, with betting tax generating just €31 million from €5.5 billion of turnover, (that’s a lot of zeroes, €5,500,000,000) that’s a tax return of 0.18% on your turnover. Unsustainable from the Governments perspective and as such, it was addressed in yesterday’s budget.

Before delivering the 2011 budget, the Minister for Finance had already announced that the Government would double the current 1% levy on bookies' turnover. This will net the exchequer €40 million. During the Budget speech, the Minister announced that bets placed on the internet by domestic customers will be subject to same level of betting duty as high street betting shops, meaning a resultant injection of betting tax which can be fed back to HRI.

The racing industry is on-course to face a €28 million gap in its finances and the measures taken by Brian Lenihan will take time to trickle down to actual capital in terms of those employed by the industry. The measures will also no doubt result in calls from within the industry that it will put bookmakers out of business and lead to job losses, but for the sake of the industry as a whole, they must be taken, there will come a time when the seed will sprout.

With the ultimate goal of Horse Racing Ireland to create an industry that is self-funding, any pain that must be felt is to ensure that we maintain our deserved reputation as one of the greatest breeding, training and horse racing countries in the world.

Amidst all this we could all do with some words of encouragement; those that come to mind are that “In the middle of difficulty lies opportunity”. Spoken by an educated man who, when trying to make a career could not find a job as a teacher, he knew a thing or two about enduring hardship before success. He was Albert Einstein.