MICHAEL O’Leary stunned the racing world this week when he revealed he will gradually divest himself of his approximate 300 horses in training over the next five years.

His Gigginstown House Stud operation has been the leading owner in National Hunt racing seven times in recent years. It spends approximately €6 million per annum in training fees and an estimated €5 million every year at public auctions in Ireland and Britain.

In an exclusive interview with The Irish Field, O’Leary explained in detail the background to the decision and he says he has not closed the door on re-entering the racehorse owner ranks in 10 years’ time.

Asked if criticism of Gigginstown’s dominant position played any part in his decision, O’Leary laughed: “What criticism? Honestly, it never entered my head. I get far more criticism in the business world and I am the least sensitive person I know. Was I upset by what people said? Not in the slightest.”

A desire to spend more time with his children is what’s behind the news, he said. “People keep asking ‘what is the underlying reason’ and it is this: I have almost been unable to go racing for the past year. I have four kids, one in boarding school and another heading there. The only time to see them is weekends or school holidays. One is involved in rugby, cross-country running and swimming at a high level and I am training two underage teams in Mullingar.

“I missed one day of the Dublin Racing Festival and I only attended one day of the Leopardstown Christmas Festival. I am not able to go racing much anymore. For years I never had a horse run in England because I couldn’t see them race. If I can’t go to see them here, why am I bothering?”

SPOILT BY SUCCESS

O’Leary also admitted that there was not much left for him to achieve in racing. “Eddie [his brother and racing manager] has me spoilt. We have won everything I wanted to win, in chasing anyway, with the exception of the Queen Mother. We’ve won three Grand Nationals, two Gold Cups, RSA Chases, every decent chase. Do I keep spending a lot on horses I can’t go and see?

“I had two choices – either cut back the string to a small number or phase it out completely. The problem with keeping a small string is that I couldn’t handle it as I have been spoilt for too long and allocating the horses between trainers would be a problem. So the simple thing to do was to stop completely over the next five years.”

The O’Learys hope to minimise the impact of their withdrawal on the industry by lowering numbers in an organised fashion. “The same number of horses will go back in training with our four trainers this autumn. I don’t envisage that we will be selling any more horses than usual in August. We will still have bumper runners next season. The only thing we won’t have is four-year-old hurdlers.

“This is the first year we won’t be buying store horses so we won’t have point-to-point runners in 2020. We’ll keep the current four- and five-year-olds until they are 10 but, between injuries and sales, we will be down to very small numbers five years from now.”

Returning to the family theme, O’Leary said: “When the kids were smaller I went racing to get away from them. Now they are bigger and going in different directions. They like racing but, like all kids, they like other sports too. They are at an age where I want to do things with them. In a few years all they will want from me is money.”

RETURN POSSIBLE

O’Leary said it’s possible he could return to racehorse ownership in 10 years. “I am still breeding flat horses at Gigginstown and in Plantation Stud [in Newmarket]. Maybe in 10 years’ time I will suddenly be bored at weekends but the next five years look busy.”

Asked to assess the impact of his decision on Irish racing, O’Leary said: “I think our decision will bring more people into racehorse ownership. I don’t think it will have a huge impact on the sales but it’s likely that more of the better horses will finish up in England. For the past few years it has mainly been J.P. McManus, Rich Ricci and I going at it at the top end. You could see Highflyer Bloodstock and some English trainers getting more of those horses now.

“We have been incredibly fortunate for the money we have spent. We’ve had great trainers, great jockeys and phenomenal days. But life changes and frankly I am just too busy to keep doing the same thing for the next few years.”

SALES SPENDING

Industry sources estimate Gigginstown’s annual spend at British and Irish public auctions at €5 million. It’s certain that another seven-figure sum is spent each year in France and on private purchases.

Henry Beeby, CEO of Goffs, said: “Gigginstown has been an enormously beneficial influence on bloodstock sales for a number of years. Both Goffs and our clients are very grateful for their custom.

“This is a remarkably resilient business and new buyers enter the market all the time. It will adapt and adjust.”

Asked how Gigginstown’s departure might affect the upcoming Land Rover Sale, Beeby said: “We will focus on the people who will be there. Yes, we will probably see more of the top horses going to England but the Irish economy has picked up too and there are renewed efforts to get new owners into the game.”

Matt Mitchell, CEO at Tattersalls Ireland, also acknowledged the “fantastic contribution” made to the company’s turnover by Gigginstown over the years, not just at the Derby Sale but at the Cheltenham sales.

“There will be a period of adjustment and there is undoubtedly an opportunity now for additional people to enter the market,” he said. “We would love to see partnerships and syndicates formed to target the €30,000-€40,000 stores. The racing programme has improved too.”