Irish racing's dependency on Government handouts is not healthy for the sport The latest Irish Government Budget freeze on handouts to horse racing must be of real concern to the sport's administrators. While €79.3 million in Government funding remains a massive contribution to the sport in Ireland this status quo will ultimately mean that prize money levels on Irish races lag even further behind our international counterparts. Around one third of the Government money received by Horse Racing Ireland (HRI) is used to bolster prize money, but despite this massive subsidy the average level of prize money per race in Ireland is now amongst the lowest of the major racing jurisdictions. The widening international gap The gap at the top end of the sport is even more pronounced. British Champions Day at Ascot last Saturday saw over €5 million in prize money up for grabs across the seven races, an amount almost identical to the total prize money on offer for the two days of the Irish Champions Festival at Leopardstown and the Curragh last month. Even the €5 million on offer at Ascot pales into insignificance when compared to some of the major races abroad. Hong Kong has four races coming up on the one day in December with over €14 million in prize money and there was a prize fund of over €11 million for one single race in Sydney, Australia last weekend. When you take into account that the British prize money levels are also lagging way behind other racing jurisdictions, it becomes apparent that HRI faces a dilemma going forward. Article highlights: Government funding of €79.3 million makes up a significant portion of Irish racing's financial structure Despite massive subsidies, Irish prize money ranks among the lowest of major racing jurisdictions International racing events offer substantially higher prize money - with single races in Hong Kong and Australia offering millions in prizes The industry claims to be worth €2.46 billion to the economy yet depends heavily on government support The growth dilemma HRI has a stated ambition to increase the number of races run annually, but without growth in the number of horses in training this is not feasible. In order to stimulate an increase in the number of horses in training there needs to be more opportunities and greater prize money, neither of which are possible without finding additional money. The horse racing industry in Ireland has become so reliant on Government handouts that it is difficult to even envisage an alternative funding model, but this latest 'pay freeze' shows how precarious the situation actually is. We are repeatedly told that the industry is worth €2.46 billion to the economy in direct and stimulated expenditure, but seemingly a difference of €5m or €10m either way in Government funding can make or break it. Dependency versus sustainability These Government supports are often championed as a key reason for Ireland's continued success on the international stage, but when I see the levels of prize money abroad I do wonder if this long term dependency on free handouts is actually hindering the sport here. If you have an adult child living and working away from home and you take it upon yourself to help them out initially by paying part of their rent or other expenses, it is a good thing to be able to do. It helps them find their feet and eases them into adult life, but if you continue to cover a portion of their living expenses indefinitely you are probably doing them more harm than good. I do sometimes wonder what the Irish horse racing landscape would look like now if there had never been any direct aid from the Government. I'd imagine we would no longer have 26 racecourses in operation and the administrative and regulatory bodies would be somewhat leaner, but I'd be pretty sure Coolmore Stud, Aidan O'Brien, Willie Mullins and plenty of others would have still found a way to thrive.
