Not great money Kev.
Racing for near that at Tuesday Menangle day meeting.
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Not great money Kev.
Racing for near that at Tuesday Menangle day meeting.
This is the second half of all Victoria's important kindred bodies (Trainers, Breeders, etc) open letter on the state of HRV
It addresses whether we no longer have the Melton land asset
In the first half they suggest prizemoney is going to further reduce
from the low $4,500 - $15,000 (Metro!) to $3,000 - $10,000
Here is the whole thing
Joint Statement by the Presidents of the Victorian Harness Racing Kindred Bodies
We, the Presidents of the Victorian Harness Racing Kindred Bodies, are issuing this urgent and united statement to express our profound concern over the future of Harness Racing in Victoria.
A meeting we requested last week with Harness Racing Victoria (HRV) has confirmed a series of devastating developments that threaten the very existence of our beloved Industry:
• HRV has incurred a catastrophic $24 million loss for the 2024 financial year, following heavy losses in 2022 and 2023.
• There will be additional cuts to stakemoney of between $10 million (22%) and $18 million (40%) over the next three years that will devastate participants and the sport.
• HRV’s financial mismanagement has rendered it virtually insolvent and unable to meet its debt obligations.
• It’s loan borrowings from government using our vacant land asset at Melton as collateral has all but forfeited a vital industry asset valued at $100M.
• HRV’s contract with SKY Channel is nearing its end, with a very real risk of Victorian harness racing being relegated to SKY2.
Since 2018, HRV has engaged in reckless spending, dramatically inflating administrative staff and employment costs. Despite this, the industry has seen little benefit, with HRV funneling vast sums into marketing, integrity, and costly consultancies. Instead, stakemoney was cut 12 months ago and low-stakes races have proliferated.
Over the past five years, HRV's employment costs have ballooned by an astonishing 71%.
These disastrous strategies have failed, and now it is the hardworking participants in our industry who will bear the brunt of further drastic cuts to stakemoney and the provision of services. An anticipated reduction in stakes of about 33% over the next three years could mean:
• Current $4,500 races in the country reducing to $3,000.
• Current $6,000 races in the country reducing to $4,000.
• Current $15,000 races at Melton reducing to $10,000.
This represents a monumental failure of governance at HRV, compounded by its secrecy in keeping industry stakeholders in the dark. HRV has put the future prospects of harness racing in Victoria plus the livelihoods of around 5,000 industry workers in grave jeopardy. In so doing, HRV has also undermined the $670 million economic contribution provided by our industry to the State.
We find it inconceivable that the Board of Harness Racing Victoria could have been so irresponsible and failed so profoundly in their governance responsibilities that they may have effectively forfeited the industry’s $100 million vacant land asset at Melton.
The 93-hectare land parcel at Melton, purchased by the industry for $3 million two decades ago, was intended to be a future fund for harness racing; a valuable asset that would generate ongoing returns, much like the sale of Harold Park in Sydney. Experts now value the Melton land at over $100 million. Yet, due to HRV's poor policy decisions and escalating debt, it is now doubtful that our industry will be able to capitalize on that shrewd investment in our future.
In 2020, HRV's loan balance with the Government stood at $13.7 million. By 2023, this amount had surged to $42.3 million and with a projected $24 million loss in 2024, the loan balance is now expected to be in the region of $66 million.
We believe it is vital that Harness Racing retains equity in this land, or at least a portion of it, to assist the industry’s recovery through future revenue streams from its ongoing development and appreciation.
This abject failure in governance and financial bungling by the Board and senior management has worsened the situation year on year. And HRV’s glaring lack of transparency and reluctance to communicate with industry participants must be strongly condemned. At no time has HRV advised the Industry that the Melton land asset was under threat or could be lost. This is a betrayal of every individual in this State who depends on the harness racing industry for a livelihood.
We have no confidence in the Board of Harness Racing Victoria. It is irrational to expect the same individuals who led us into this crisis can now navigate us out of it.
We believe that Harness Racing in Victoria can recover from the confronting situation it currently faces. However, this requires urgent intervention from the Minister, including the appointment of a new, capable, and competent Board and ensuring Harness Racing retains an equity interest in the Melton land for a critical future revenue stream for the Industry.
Emmy Mazzetti - President Victorian Harness Racing Club
Paul Rowse - President Trots Clubs Victoria
Anthony Butt - President Victorian Harness Racing Trainers and Drivers Association
Anne Maree Conroy - President Victorian Square Trotters Association
John Coffey - President Harness Breeders Victoria
I have read a suggestion (which we actually discussed on here many years ago) to sell not only the excess land but also the Track complex itself and rotate the Metro races around our leading country tracks
It has merit - provided we actually get the money (after we pay our debts) for there was a suggestion that with us being a Statutory Body the money would all go to the government
This week, the CEO needs to instill some confidence that there will be no more prizemoney cuts and that he/the Board have a feasible recovery plan
If he does not convince the masses this week then there will be negligible breeding in Vic this season and we will be in a complete downward spiral from which there will be no recovery
Kev.
HRV need to work something out yesterday.
There will be no HRV if this continues.
It's a sad time for all involved in harness racing down there
There is BIG merit in selling Melton & racing each week at the other venues. Maybe its the only way to save the industry & HRV.
Would selling up get them back to square or would they have money in the bank do you think?
I am trying to find that out. We probably have to sell regardless if it will stop the decline in prizemoney - nobody is going to stay for less
No, they are not. A lot CAN not.
Maybe Kevin Seymour can help out like he did with SA but maybe not.
This is the CEO's rubbish reply - "you weren't supposed to tell anyone"
https://www.thetrots.com.au/news/art...int-statement/
Really.
So no one is going to find out.
So I suppose no one will ever question the drop in prizemoney?
Maybe they could recoup some of the money if they start charging $48 for a hamburger. At least its not $50.