THE recruitment and retention of racehorse owners is perhaps the single most important challenge facing Irish racing.

A recent report commissioned by Horse Racing Ireland and compiled by Deloitte painted in very clear terms the steep drop in the number of individual owners and horses in training over the past 10 years.

The current figure of registered owners (3,663) is almost exactly half the number we had in 2008. In the same period, the number of horses in training has dropped by one-third from a peak of 12,000 to 8,500. This and other statistics confirm that it is the small owners who have disappeared while, in fact, the number of bigger owners (with 20 horses or more) has actually increased.

Of all the stakeholders in the industry, it is the racehorse owners who put the most in and, on average, get the least return. According to the Deloitte report, Irish-based owners spend over €150 million per year on training and associated fees, plus as much again on actually buying the horses in the first place.

Ownership levels and horses in training have experienced significant declines since the global financial downturn. Owning thoroughbred horses is a discretionary spend for most owners, and the industry is therefore particularly vulnerable to such economic shocks.

There were 8,561 horses declared in training with HRI at some point in 2016, an increase of 4% on 2015 but down 7% from 2012 and nearly 30% since the peaks of 2008.

Registered owners decreased by nearly 50% since 2008, but the pace of decline has slowed significantly, and increased slightly in 2016.

Across both codes, a total of 2,300 horses, owned by over 500 non-Irish owners, were trained in Ireland in 2016. These horses generated training fees and associated expenditure of over €35 million. Basic training fees are typically charged on a daily rate. The average daily rate is assumed to be €45 but does vary by code, with flat horses typically attracting higher charges. Owners are estimated to have incurred training fees of over €100 million in 2016.

Veterinary and medical fees have been estimated as an average of €1,500 per horse. Jockeys are paid per ride, €147 for a flat ride and €169 for jumps. In addition, they earn 9% of prize money, as do trainers.

Owners pay entry fees and additional fees for registration and colours. Overall owners are estimated to have spent €162 million on training and related expenditure, with an average cost per horse of approximately €18,800.

Owners recouped €42 million (26%) of their expenditure in domestic earnings, with an additional €21 million from international sources, although it should be noted that this will not be spread evenly, with the majority of owners earning significantly less than this in prize money.

It is important that an owner has the prospect of a reasonable return from a successful horse, providing the aspirational aspect of horse ownership. Owners also need to feel that they are being fairly treated as the sport is largely built on their investment.

Total prize money of €57 million was paid in 2016, and in 2017 this is expected to be €60 million, back to 2008 levels but still representing a real decline over the period.

The industry has been able to steadily grow prize money since 2011 following four years of decline, caused by a combination of reduced HRI funding, a challenging sponsorship market and falling entry fees as horse numbers reduced.

Prize money comes from three main sources. The single biggest source, representing nearly two thirds in 2016, is HRI’s contribution of €36 million, having increased by circa 30% since 2012. Owners, via entry fees, represent the second biggest source at €14 million (25%). This is the highest proportion of any other major racing nation.

The reduced numbers of horses in training means prize money per runner was a record in 2016, at close to €2,000.

In this report we talk to some industry figures and owners about the pros and cons of being a racehorse owner.