THIS is certainly not what I envisaged I would be doing on what should have been the week of the 2020 Punchestown Festival.

Instead, in these unprecedented times, the stands remain deserted, the roar of the crowd is a distant memory, the winner’s enclosure lacks excitement, the hustle and bustle of the betting ring is non-existent, and every seat is vacant as the racecourse lies motionless. I am taking some solace from the fact that, while everything else has changed, the unique weather pattern which Punchestown has become synonymous with has remained unaltered!

The cancellation of the 2020 Punchestown Festival has a significant financial impact on the business as it would equate to 85% of our annual turnover. The true extent of the economic impact of an event of this magnitude not taking place is unquantifiable. Its effect will be felt throughout the racing industry, amongst the various stakeholders and within the local community and beyond. However, the priority at this time is overcoming the battle against Covid-19 and I send my sympathy and best wishes to everyone who has been affected.

It would be remiss of me if I didn’t acknowledge our loyal clients and thank them for their support in recent weeks. After all, it is they who make the Punchestown experience what it is. You are always only as good as the people that you have around you and I’m extremely fortunate in that regard.

Dedication

Above all, it is my team in Punchestown that I’m most disappointed for this week. Despite their efforts and endless hours of hard work and dedication, they didn’t see that effort come to fruition. Instead, we must focus on ensuring that we safeguard, futureproof and adjust our business accordingly for the challenges that we will face going forward. The commercial sustainability of Punchestown Racecourse is our key priority as we work towards the 2021 Festival.

It is vital that the magnitude of this task is not underestimated. I’m under no illusion that the biggest challenges are yet to come, not just for Punchestown but for the entire industry. I believe it is the degree of uncertainty that we are faced with, combined with the impact on the economy, that pose the biggest threats.

These are extraordinarily difficult times for everyone from a commercial perspective, and the 26 racecourses throughout Ireland are no different in that regard.

We all wait with anticipation for horse racing to resume when it is deemed appropriate to do so by the relevant authorities. One thing that is certain is that it won’t resume as we previously knew it and will be staged behind closed doors for the foreseeable future.

It is fundamental for this to happen to protect the entire industry and the significant jobs it provides throughout Ireland, both directly and indirectly. I must emphasise that racecourses are widely supportive of this, although I can’t stress enough the financial pressures that they will come under if this continues for a prolonged period.

The core revenue streams of a racecourse will be decimated as a result of racing behind closed doors. From a media rights perspective, the current agreement is linked to the number of licensed betting offices (LBO) in Ireland and Britain. Should they remain closed it will significantly reduce the media rights income. Should some of them not reopen at all it will escalate the severity of that situation.

While you would expect an increase in the streaming element of the media rights income, it will not be sufficient to compensate for the loss of LBO income. The financial impact on racecourses is further exacerbated by the critical loss of admission, sponsorship, hospitality, bar, catering, Tote and on-course bookmaker revenue. There will be an element of cost-saving which racecourses can adopt, but they will be miniscule in the context of the loss of income.

This paints a pretty bleak picture and that is the reality of the impact on racecourses in the foreseeable future. In order to ensure that they remain viable and in a position to support the industry when it is needed most, a revised funding mechanism must be found. The Association of Irish Racecourses is working closely in a collaborative effort with Horse Racing Ireland and other stakeholders to support racecourses and the industry.

The racing and breeding industry in Ireland is renowned for being resilient, and we must rely on that quality to ensure that it thrives again. This is testament to the passion and dedication of the people who are involved in the various elements within the industry. As we are faced with the most monumental challenge, I’m confident that this too can be overcome.

Our health is our wealth, so stay safe, stay positive and I look forward to welcoming you back racing to Punchestown in better days ahead.