This leads us to look at the other side of racing, namely the breeding of a racehorse as it is an activity that qualifies for the tax incentives.
The breeding industry report undertaken in the last few years by PriceWaterhouseCoopers (PwC) concludes that the breeding industry contributes some £425m to the rural UK economy with over £150m of annual foreign investment in Thoroughbreds.
Britain has also always been an epicentre of thoroughbred racehorse breeding and the major auction house, Tattersalls, has been based in Newmarket since 1766. They had a turnover of £328.1m in 2018 , £331.5m in 2017 and £265.5m in 2016, an increase of 24%, with over 60% being foals and yearlings from 2016 to 2017.
This growth is repeated in other markets with Keenland in the USA achieving sales of $1,075m in 2018 compared to $997m for 2017 against $908m for 2016.
Arqana in France recorded sales of €134.3m in 2018, €133.8m in 2017 against €127.7 in 2016, a more modest increase of 4.8%.
The other major market is Goffs, in Ireland, whose 2018 was €108.9m, €121.2m in 2017 and similar 2016 at €120m.
With the growing popularity in horse racing around the world the demand increases on the bloodstock industry to provide the foals needed to become racehorses around the world. Of the total around 4,000 foals a year will be trained in the UK.
Owners strive for their share of the £160m of prize money offered each year in the UK and greater involvement in the “Sport of Kings”.
Racing is a hobby for those passionate about racing where most don’t expect any profit but want to try to live the dream.
This passion and our location gives as a great opportunity to build a successful bloodstock company supporting the owners quest for success.
Cill Dara Bloodstock is well positioned to take advantage of the continued growth in the market and has identified several interesting trends that we expect to further benefit from.