A racing uncertainty
The value of horseracing sponsorship in Ireland has dropped by almost half since 2007, according to figures from Horse Racing Ireland (HRI).
Sponsorship peaked in 2007 at €9.2 million. Since then, it has fallen steadily - to €8.7million in 2008, €7.5 million in 2009 and €5 million last year.
John Trainor, the managing director of the sports sponsorship firm Onside Sponsorship, said: ‘‘This suggests a sharper decline than the wider sponsorship industry generally in recent years, and perhaps reflects in part the profile of sponsors in horse-racing traditionally, as well as a different structure of deals that were perhaps more year-on-year, rather than multi-year deals.
‘‘Developers and builders were the leading category of sponsor, but with the collapse of the building industry, there will naturally be a new sector of sponsorship.
‘‘Bulmers has innovated, for example, with a racing and music festival at Leopardstown, rather than just putting a sign on a racetrack for the final furlong."
Trainor said sponsorship decision making today was driven by consumer reach and appeal.
Onside’s annual research of Irish consumers shows that horseracing remains the fourth-largest sport sector in terms of appealing to sponsorship.
‘‘As a sporting interest, horseracing is generally just behind the big three sporting passions in Ireland [GAA, soccer and rugby]," said Trainor.
According to Onside, more than one in three adults claims to have an interest in horseracing.
Today is the final day of the renowned Galway Racing Festival, which has also seen a change in sponsors over recent years.
The organisers received a major boost earlier this year, when Ladbrokes bookmakers signed up to sponsor six of the seven races on yesterday’s card.
This included the feature race, the €70,000 Ladbrokes Biggest Names Best Prices Handicap and the €40,000 Ladbrokes Handicap Hurdle.
Tote Ireland sponsored the Galway Plate last year for the first time to the tune of €200,000, and did so again this year.
In 2009 six Galway hotels grouped together to sponsor the race card for the Monday meeting after long-term sponsor GPT Plant & Tool Hire ended its association with the racing festival.
Anthony Ryan’s department store in Galway city remains on as the stalwart sponsor of Best Dressed Lady and Best Hat, providing €20,000 in prizes.
Onside consumer research shows that horseracing sponsorships that score particularly highly include Budweiser’s sponsorship of the Irish Derby, Guinness whose sponsorships include Listowel Races, and Hennessey and the Gold Cup.
But many firms don’t want to be seen to be sponsoring races.
‘‘You might call it the ‘Galway tent factor’," said one racecourse owner. ‘‘Most races were sponsored by the construction industry, developers, builders, suppliers.
But how can they sponsor races when they are laying people off?" Managers of race tracks have had to come to terms with this drop in traditional sponsorship, and develop new ways of attracting race goers.
Mike Todd, general manager of Down Royal racecourse near Lisburn, Co Down, said: ‘‘As the market has changed, it was up to us to adapt and innovate and offer packages which are appealing.
We are up 12 per cent on attendances in the last six meetings - our Derby Day attendance was up by 900, and we are thrilled with that."
Of Down Royal’s annual 12 races, two are now sponsored by shopping destinations.
Victoria Square, the largest shopping centre in the North, has sponsored a race day for the past two years and is having its third on Friday September 9.
House of Frazier, the centre’s anchor tenant, is a race day sponsor, as are other tenants including TM Lewin, Lunn’s Jewellers, Cruise fashion retailers and Victoria Square itself. Lisburn Road shopping centre also sponsors a day’s racing at Down Royal.
‘‘The two biggest events for women to buy dresses are weddings and races," said Todd, ‘‘and the shopping centres have recognised that, if they have a best-dressed lady competition with a decent prize and promote it properly, they will see an upturn in the sales of dresses, shoes, hats and jewellery.
‘‘The best-dressed lady competition is great for PR, and it drives footfall to retailers. Some professional women even choose venues, such as races or agricultural shows, specifically to win prizes.
‘‘Last year, our top prize was a South African safari for two worth £15,000. This year, the Victoria Square day has a prize of £7,000-worth of vouchers."
Down Royal is using Facebook, e-zines and digital media like Twitter and YouTube to promote itself and its new offerings, and the campaign is proving successful.
But some of the old sponsors have moved on. Specsavers, which was a Down Royal sponsor for seven years and won a PRII gold award for brand sponsorship, has ‘‘gone in a different direction’’.
There’s also a decline in sponsorship by drinks companies, which are focusing more on emerging markets. But others have replaced them. ‘‘This year, I have telecoms companies, studs, taxi companies, bookies, retailers, wine merchants and construction companies sponsoring meetings," said Todd.
Online gambling has also affected the courses.
‘‘We’ve noticed that the old fashioned punter, who was a fairly committed gambler, can now stay at home, watch the races on TV and bet on Betfair and Paddy Power offshore," said Todd, who is a member of the marketing committee of the Association of Irish Racecourses.
There are 26 racecourses on the island of Ireland (excluding Laytown, which races on the beach).
Some are recovering from the downturn. ‘‘Naas has had a good increase in attendance, and Ballinrobe and Sligo are seeing an upturn because racing is still part of the fabric of rural society," said Todd. ‘‘The reality is that race course management are proactive, putting together packages, such as punters’ packs, which include entrance, a pint and something to eat."
Down Royal has also produced a ‘‘little black book’’ which is available on its website (www.downroyal.com), advising newcomers to racing about what to wear to the races and how to bet.
But despite some signs of recovery, there’s no doubt that margins have slipped.
‘‘The market will never pick up," said Todd. ‘‘It’s changed, it’s totally different. ‘‘There’s still a deal to be done, but it’s just about the way you structure it."
Source – Sunday Business Post by Kieran Woods
Date – 01/08/2011
