WHAT is the biggest problem in Irish racing?

It’s not insufficient prize money, shortage of stable staff or falling racecourse attendances. It’s not even non-triers.

The biggest problem is the polarisation of the sport between those at the top and the rest.

The big operations are getting bigger - sucking up all the equine and human talent – making it increasingly difficult for small and middle-ranking owners, trainers and jockeys to compete.

Irish racing is the best in the world, we are constantly told. That claim can be justified in some ways but it is not a true reflection of the entire industry. In this report we ask those at the coalface of the sport to tell the real story of survival in Irish racing.

A number of trainers and jockeys asked not to be identified as they revealed shocking stories of how they and their colleagues struggled to make ends meet.

We were told examples of new and established trainers aggressively chasing clients by offering to train horses free of charge for a period of time.

Jockeys told us of how they would frequently travel over 100km for €50 riding out fee in the hope of securing racecourse rides

Trainers told us that they felt it was too easy to get a trainer’s licence and that the numbers should be restricted. The consensus was that, to do the job properly – maintain facilities and employ a racing secretary – a trainer needs a minimum of 30-35 horses. However, there now exists a raft of trainers who previously had 40-50 horses in training but now only have 10-15.

One trainer said: “I would be better off giving up and taking a job with one of the top yards, with a fixed salary. You need a second wage-earner in the family to put bread on the table.”

OWNERS

There are 3,600 active racehorse owners in Ireland. This is down from 5,588 in 2007. Last year there were 8,214 horses in training in Ireland. This is down from a peak of 12,188 in 2007.

Irish Thoroughbred Marketing has contacted owners who have dropped out of the industry and will soon publish their findings.

“It was by far a financial issue but there is not a single factor,” said ITM’s ownership manager Aidan McGarry. Lack of communication from trainers, confusion over HRI administration and poor racecourse facilities were among the problems cited.

“For a lot of people they’re still only just coming out of the recession and the slow recovery is not the biggest surprise,” he added. “The figures of 2016 are showing a slight increase and there are positive signs over a short period so far.”

He noted that a handful of owners are “recession-proof” and, as syndicates and owners who were not competing at the higher level dropped out, it heightened the difference between the dominant and smaller owner.

It is generally acknowledged that ownership numbers in jump racing have suffered more than the flat.

HRI chief executive Brian Kavanagh said: “The small National Hunt trainer is under pressure at one end from the point-to-point scene and at the other by the major owners and trainers.

“There is a good spread of trainers taking each other on in flat racing. You would just like to see it being spread around a bit more over jumps. The wealthy owners are dominating at the top level.”

Last year ITM launched a website initiative, entitled Your Own Share, designed to allow clubs and syndicates to promote shares available for public purchase.

Further increases in prize money and reductions in administrative costs for owners and trainers were top of the agenda in HRI’s plans for 2016. Minimum race values increased from €8,000 to €9,000. There is also increased percentages of prize money for placed horses, payments out to six places in races worth €40,000 or more and to five places in all other races.

TRAINERS

The number of full licence holders has dropped from a peak of 465 to about 370, says Irish Racehorse Trainers Association chief executive Michael Grassick.

“The number of trainers who have left the industry is considerably bigger as there are 20-25 new trainers coming on stream each year,” he said. Restricted trainers are down approximately 40%, he added.

Asked to explain why trainers are struggling to survive, Grassick said: “The recession was the main thing. A lot of trainers were left with significant bad debts from that time and some have never fully recovered from that.

“Other trainers were forced to reduce their fees to retain owners and have not been in a position to raise them again.”

Basic training fees are estimated to be €50 a day or €1,500 per month, though some trainers are charging even less. The danger of raising training fees was highlighted this week when Willie Mullins lost 60 horses in one stroke following his first fee increase in 10 years.

Grassick continued: “In that time costs have gone up, especially labour and training is a labour-intensive business.”

Retaining staff to work in racing stables has proven difficult. “There are two points here – the hours are long and unsociable, and the wages can be lower than you would get elsewhere. Trainers are caught between a rock and a hard place as, in real terms, they are not receiving enough in fees to pay staff what they are worth.”

Research conducted by The Irish Field suggests that small trainers typically pay staff €500 per week. The leading yards are believed to be paying key staff €1,000 per week, plus there is the lure of prize money bonuses if you are attached to a top yard.

Although Colm Murphy cited financial reasons when announcing his decision to cease training, it is understood he has been frustrated in securing high quality work riders despite offering attractive pay rates.

Grassick acknowledged that there was some evidence of staff moving from small yards to the bigger operations “but in most cases workers want to stay in their own area.”

The IRTA investigated the possibility of introducing minimum training fees but was advised this would breach competition laws. “We also looked at introducing a system whereby trainers could be paid through the owners’ HRI accounts,” Grassick said.

“Cashflow is a huge thing. Even when good owners pay their bills on time it means trainers have carried the cost for six or seven weeks since it was first incurred.”

Although the IRTA has an owner-trainer agreement form available, Grassick believes that not a single trainer has used it, possibly fearing that their clients would be insulted and move their horses.

Grassick acknowledged that HRI has helped by increasing prize money and dividing it amongst more owners, and reducing entry costs. “We would like to see more done to keep the cost of competing down,” he said.

This year HRI introduced reductions of 8% in administrative charges for owners and trainers. This follows even bigger cuts in costs the year before.

JOCKEYS

Unless a jockey is attached to a leading trainer or owner, the chances of getting on a good horse is very slim.

A jockeys’ agent asked: “Where are the jobs here? Adrian Heskin and Jonathan Moore were quick to take jobs in Britain when it came up and I’m sure other lads would dive at opportunities like those.”

This season’s leading jump jockey Jack Kennedy broke into the top ranks but he came with a big reputation from the flapping circuit and was snapped up by the Gordon Elliott yard.

Among freelances, Andrew Lynch remains the standout example of what can be done without a retainer – he took 694 rides last season, almost double Ruby Walsh’s mounts – but he also had made his name in previous campaigns.

Further down the foodchain, journeyman jockeys are facing a bleak winter. “A few jump jockeys went to work for the leading flat stables during the summer and they are staying on for the winter as at least they are guaranteed a wage. You have to work seven days a week, but it is good money.”

NATIONAL HUNT RACING

Of the 1,400 jumps races staged last season, 320 (23%) were won by the top three owners – Gigginstown House Stud, J.P. McManus and Mrs Susannah Ricci.

Of the €26 million in prize money for jump racing, the top three owners won €6.7 million or 26%.

The top two trainers – Willie Mullins and Gordon Elliott – won 22% of the races (308) and 27% of the prize money (€7 million).

FLAT RACING

So far this flat season, 21 trainers have had 10 or more winners. That compares favourably with the situation at this time in 2010 when 19 trainers had reached that figure.

The names O’Brien, Weld and Bolger remain in the top positions but Ger Lyons is now a close fourth and that is without the support of a dominant owner.

Willie McCreery has made huge strides, with significant backing from Godolphin, and there is ample evidence to suggest that new trainers can make an impression on the flat – as long as you have good owners.

Joseph O’Brien, admittedly, is not a typical first-season trainer, but the success enjoyed by Adrian Keatley, Johnny Murtagh and Michael O’Callaghan in recent seasons indicates that it is possible to compete with the established trainers with relatively modest budgets.

ATTENDANCES

Officially attendance levels have held up reasonably well in recent years. From a peak of 1.5 million racegoers in 2007, the total had dipped to 1.28 million last year.

However, it is widely acknowledged that the growth in popularity of festival meetings is hiding a sharp fall in numbers attending ordinary fixtures. A recent Saturday (flat) meeting at a metropolitan track attracted not much more than 1,000 paying customers.

SPECIAL REPORT CONTINUED