Racecourse closures in Ireland a stark fear as cost of shutdown becomes clearer

Horse Racing Ireland chief executive Brian Kavanagh admits he is "very worried" about the viability of some racecourses as the governing authority continues to grapple with the multi-million-euro cost and ramifications of a sustained shutdown.

Officials within HRI are preparing to furnish next Wednesday's conference call board meeting with recommendations and data as emergency strategies are being explored to shore up an entire industry with an estimated economic value of almost €2 billion. Contingency plans for HRI's own staff are also a priority.

The possibility of rescheduling the major Easter festivals at Cork and Fairyhouse, where the BoyleSports Irish Grand National was scheduled for April 13, will be among the items for discussion, likewise the prospects for the 2020 Punchestown festival, which is due to get under way on April 28.

A packed parade ring area on Irish Grand National day at Fairyhouse last yearCredit: Caroline Norris (racingpost.com/photos)

As of now, all sports are banned until at least April 19 due to the coronavirus crisis.

However, as the death toll of people in Ireland with Covid-19 was revealed to have more than doubled from nine to 19 on Thursday, with the number of confirmed cases hitting 1,819, the likelihood is that the period of prohibition will be extended and behind-closed-doors options may remain similarly improbable.

Between March 25, when racing ceased, and April 19, there will be 23 fixtures lost to 12 racecources, with Cork and Dundalk the worst hit in terms of numbers. Both will lose four meetings in that timeframe.

Covid-19 claims Irish racing as all sporting events are cancelled in Ireland

Apart from forfeiting significant gate receipts – Fairyhouse's three-day Easter gathering attracted 23,000 racegoers in 2019 – media rights revenue works out at an average of approximately €50,000 per fixture. That comes to €1.15m across the 23 cards and illustrates the extent of six-figures losses that tracks will need to absorb when multiple fixtures are culled.

When corporate bookings and other impacted earnings such as sponsorship and its partnership with Tattersalls for the May 22 breeze-up sales that could be in peril, a major track like Fairyhouse could be facing an immediate funding shortfall of around €500,000.

Fairyhouse had been exploring capital development options including upgrading its watering system but those plans are now in jeopardy.

"I'd be very worried about the racecourses," Kavanagh said. "Apart from the media rights, Fairyhouse, for example, has lost its big pay day. The longer this goes on, the more racecourses will lose their big income earners."

Fairyhouse, along with Leopardstown, Navan and Tipperary, are controlled by HRI. However, Kavanagh expressed particular concern for provincial tracks.

Ruby Walsh celebrates winning the 2019 Boylesports Irish Grand National on Burrows SaintCredit: Patrick McCann (racingpost.com/photos)

"I've often said that the smaller racecourses have good business models because they have relatively low costs, they have media rights incomes and they have gate receipts. But they are going to lose all that the longer racing is off, so it is a real worry. We will sit down and look at the potential impact and the steps we can take.

"Our objective is to avoid closures, but there is a risk, same as there is for all other sectors in the economy. Tracks have been sensible over the years, and part of our role in working with them on developments is to ensure they haven't overstretched themselves. Generally racecourse financial positions before this weren't too bad, but this is just a catastrophic shock that nobody can prepare for."

According to a HRI-commissioned Deloitte report that was published in 2017, the core racing and breeding sectors sustain 15,200 full time jobs. Of those, 171 fall directly under HRI's remit.

The subsidiaries are the four racecourses, the Tote and Irish Thoroughbred Marketing (ITM), and the threat of significant job losses looms over each.

Briak Kavanagh, who says HRI will work to avoid track closures in the wake of the coronavirus crisisCredit: Patrick McCann (racingpost.com/photos)

"We will try to support the industry wherever we can and try to support the staff wherever we can, and we will work towards as swift resumption as possible, although there are clearly bigger issues for the country to be worried about now," Kavanagh said.

"But in that context we are also trying to scenario plan. Over time, as things become clearer, you have to take a further view on staff. Obviously we are trying to protect jobs if we can but that will become more difficult the longer the break is.

"While within the racecourses there is still maintenance work to be done and so on, a number of other parts of our organisation are completely racing related. ITM, for example, is grounded completely, so we are looking at all the options for staff in that respect."

Kavanagh also expressed his fears for the sort of industry that will be left when the coronavirus eventually relents.

"What worries me is the investment of people in different layers of the industry, be it point-to-point people, the breeze-up people or people with foals to bring to the market in the autumn. What will that market look like now?

"Many of those are already committed with coverings for 2020, so that equation is not attractive. Sales companies are having a complete look again at how they might operate in the future.

"All those elements are at risk, but our objective is to make sure as an industry we come through this episode intact and with the least damage done possible. The frightening thing for a lot of these business is that you are going from something to zero. It's not that your business is tailing off – it's disappearing."

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