Racing

HRI estimating €7.5m losses in its racecourse division in 2020

Overall losses at the 26 courses in Ireland forecast to be €15m

Leopardstown Racecourse during the recent Longines Irish Champions Weekend. Photograph: Laszlo Geczo/Inpho

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Brian O'Connor
Fri Sep 25 2020 - 16:14

Horse Racing Ireland (HRI) has estimated the cost of the coronavirus pandemic on its racecourse division this year could be up to €7.5 million.

Irish racing’s ruling body owns four tracks – Leopardstown, Navan, Tipperary and Fairyhouse – as well as having stakes at both the Curragh and Cork.

Likely losses at the 26 racecourses in Ireland for 2020 has been forecast at nearly €15 million in total due to lockdown and racing having to take place behind closed doors.

Since Monday a maximum of 200 people have been allowed go racing but they have been mostly owners and HRI's chief executive Brian Kavanagh conceded on Friday that no significant change appears likely anytime soon in relation to spectator attendance at sports.

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“Looking at what was in the Government’s six- to nine-month roadmap, bar some sort of special arrangements for special events, you’re looking at a maximum of 500 people at events potentially up to the middle of next year,” Kavanagh said.

It makes for a grim outlook for racecourses, including those under the HRI banner, and Kavanagh stressed the real problem for tracks could yet be to come in 2021.

“The Curragh has had no customers all year. But Leopardstown has not crystallised yet because their biggest meeting is at Christmas, followed quickly by the Dublin Racing Festival. So it’s ahead of them,” he said.

“We’ve said all along racecourses can survive a single year’s shock but not a second one.

“It’s very hard to be precise but the impact on racecourses generally will be in the region of 10 to 15 million euro in terms of lost revenue [in 2020].

“It depends on different issues such as media rights deals, insurance and stuff like that. The two biggest affected are Punchestown and Galway which are not directly owned by us. But in terms of tracks owned by HRI, €7.5 million wouldn’t be far away.

“The real problem will be if this goes on, as seems likely now, into next year. While racecourses have been able to sustain the industry this year, the loss of that level of commercial revenue is not sustainable going forward ,” Kavanagh added.

HRI received €67.2 million from Government for this year and has made pre-budget submissions to the Department of Finance for 2021.

“We’re in regular engagement with Government. We are facing the twin challenges of Brexit and Covid but the industry has proved resilient. It’s all about protecting jobs in rural Ireland,” Kavanagh said.

Brian Kavanagh