By John Considine
Reflecting the slowdown in the Irish economy, sponsorship of Irish horse racing by industry declined dramatically between 2007 and 2010. The Horse Racing Ireland factbook shows that the 2010 figure for race sponsorship by all industries is down almost 60% on the 2007 figure. The collapse in sponsorship by the construction sector is more dramatic with the 2010 figure showing a 95% decline on its 2007 amount. The construction industry contribution peaked at 13.3% of the total sponsorship in 2005 but it has been below 1% for both 2012 and 2013.
Exchequer tax revenue over the same 2007-2010 period also showed a dramatic decline with the 2010 figure down 33% on the 2007 figure of over €47bn. It also seems that the contribution of the construction/property sector to the Exchequer showed an even greater decline. One of the sources of Exchequer tax revenue is Stamps (a charge for "stamping" official documentation). In 2007 the vast majority of tax revenue under this heading arose from property conveyancing. As the demand for property declined so to did stamp duty (although not all property transfers are subject to the tax). Exchequer tax revenue from stamps dropped by 70% between 2007 and 2010.
It would be nice to believe that the recovery of race sponsorship in 2012 and 2013 is due to a turnaround in the economic fortunes of the Irish economy. Unfortunately this may not be the case as the majority of the increase comes from media sponsorship. Media sponsorship was €107,250 in 2011. It jumped to €737,494 in 2012 and was €736,438 in 2013. A note on the 2012 amount says it contains SIS sponsorship. The improvement may be smaller than it looks in the chart below but it is heading in the right direction.
Exchequer tax revenue over the same 2007-2010 period also showed a dramatic decline with the 2010 figure down 33% on the 2007 figure of over €47bn. It also seems that the contribution of the construction/property sector to the Exchequer showed an even greater decline. One of the sources of Exchequer tax revenue is Stamps (a charge for "stamping" official documentation). In 2007 the vast majority of tax revenue under this heading arose from property conveyancing. As the demand for property declined so to did stamp duty (although not all property transfers are subject to the tax). Exchequer tax revenue from stamps dropped by 70% between 2007 and 2010.
It would be nice to believe that the recovery of race sponsorship in 2012 and 2013 is due to a turnaround in the economic fortunes of the Irish economy. Unfortunately this may not be the case as the majority of the increase comes from media sponsorship. Media sponsorship was €107,250 in 2011. It jumped to €737,494 in 2012 and was €736,438 in 2013. A note on the 2012 amount says it contains SIS sponsorship. The improvement may be smaller than it looks in the chart below but it is heading in the right direction.
RSS Feed