Oxx hits out at Paddy Power chief
The meeting to discuss the future funding of the horse and greyhound racing industries blew up as it drew to a conclusion, when Kennedy claimed that Irish racing was “not world class”.
The CEO of Horse Racing Ireland, Brian Kavanagh, rejected the claim as “absurd”, stating that the last two world champion racehorses (Sea The Stars, New Approach) were Irish, seven of the winners at the recent Cheltenham festival were trained in Ireland, 18 of them were ridden by Irish jockeys and Aidan O’Brien had been champion trainer in the UK on two occasions.
One committee member shouted across at Kennedy, asking if he wanted “to be the Michael O’Leary of the racing industry”.
In response, Kennedy reiterated his assertion that Ireland was “absolutely world class in breeding and training but not in racing facilities”.
The addition of the word “facilities” failed to placate the chamber and Oxx, who was the last speaker, made his displeasure very clear.
“It’s a big worry to see the disdain Mr Kennedy has for Irish racing.
“He doesn’t care if I go out of business and my staff are of out of jobs. All he cares about is Paddy Power.”
Oxx, who trained Sea The Stars to win the 2000 Guineas, Epsom Derby, Eclipse Stakes, International Stakes, Irish Champion Stakes and Prix de l’Arc de Triomphe from the Curragh last season, also dismissed claims that prize money in Ireland was too high.
“The owners produce €275-300m for prize money of €50m. So they’re losing up to €250m to pay guys like me and keep my staff in a job. In no other industry would the investors be told that they could lose €200-250m and do it anyway. That’s because we’re selling a dream.
“It’s two and a half to three times more difficult to win a race in Ireland than in England. If you look at the statistics you can see that. So in order to compete with England, you have to have higher prize money.”
Submissions were made by Paddy Power plc, Betfair Ireland, Boylesports, Ladbrokes Ireland, the Irish Bookmakers Association, Irish Independent Betting Offices Association, Bord na gCon and Horse Racing Ireland yesterday as the future funding of horse and greyhound racing were discussed. Under 2001 legislation, horse racing and the greyhound industry received significant funding from the exchequer but there has been a growing consensus that the industries should be self-financed, with a tax on betting revenue the most obvious method of doing so.
Most bookmakers agree with a framework where all operators marketing in Ireland would be subject to tax but there is no unanimity about how to do that with the development of telephone and online betting.
“Paddy Power has consistently said that it does not have an issue paying betting tax on Irish internet betting,” said Kennedy. “But we do have an issue if we have to pay it solely because we employ people in Ireland… in effect, a tax on Irish jobs.”
He added that an automatic link between a tax on bookmakers and the funding of the HRI was not in the State’s interests.
“It is clear that the link between betting operations and Irish racing is increasingly without substance” he concluded. “The issue is that the government cannot justify granting €540m over 10 years directly to Irish horse racing when hospitals and schools are crying out for funding.’’
David O’Reilly, legal counsel for Betfair, echoed Kennedy’s commitment to paying tax if the regime is fair, adding that Betfair had made a voluntary payment of €4.5m to HRI between 2006 and 2008 but that the offer to continue that contribution had been rejected last year.
He claimed the company had received correspondence from HRI “three or four weeks ago” asking what their plan was in relation to that funding. He also claimed that HRI had stepped in to ensure that Punchestown would refuse Betfair’s offer to continue a €100,000 sponsorship.
The chairperson of the Irish Bookmakers Association, Sharon Byrne, was also speaking on behalf of Ladbrokes and Boylesports. She said that only 12% of the bookies’ turnover was generated by Irish horse racing and warned that an increase in turnover tax was unfair, especially if offshore operators were paying none.
“In the UK, betting shops pay 10% on their UK horse racing business only, and not on the turnover, on the profits” she revealed before saying that the HRI had done “too little too late” to secure payments for its product from offshore operators.
Liam Cashman, president of the Irish Independent Betting Offices group, proposed a 5% charge on all deposits made to offshore accounts, with another 5% charge for Irish residents making deposits and the abolition of the 1% on Irish bookmakers who were “in jeopardy”.
