We have recently finalised our 2017-18 financial year accounts with our auditors and the Annual Report will soon be published. It’s worth looking at some of the key industry measures that highlight our improvement and the challenges still ahead of us.
Prizemoney! Understandably, it’s what most people want to talk about. As discussed in roadshows in early 2017, we set out to distribute “more prizemoney than ever before”, and have achieved that by delivering a record financial year total of $39.8m, just shy of our $40m target. That will be exceeded in 2018-19 with the running of trotting and pacing Inter Dominion Championships heats and finals. As discussed last edition, we have also increased prizemoney for restricted races from $3500 to $4000 effective from September 1 2018.
Wagering turnover grew 8 per cent to also reach a record level at $929 million, reversing the prior year decline. Corporate turnover growth was strong at 24 per cent, whilst TAB wagering was marginally lower. The increased number of races, combined with races being run in preferred timeslots, contributed significantly to the 8 per cent turnover growth. With 140 (or 4 per cent) more races run compared to the prior year, the total of 3863 was the highest number of races run since 2011-12.
Aside from paying out $670,000 more in prizemoney in 2017-18, all other expenses were kept under control. Despite receiving $1.8 million less revenue from the Tabcorp Joint Venture, industry revenues grew largely due to the corporate turnover growth mentioned above. The net outcome was a dramatic improvement from the $1.7 million loss in 2016-17 to deliver a respectable $500,000 profit in 2017-18.
The signs indicate that we have started to turn the corner, but there is still a lot more work to do. The numbers of foals and individual horses competing have declined and we need to invest to encourage breeding. We are therefore grateful for the Victorian State Government’s inclusion of funding for HRV in the 2018-19 State Budget, which has enabled us to waive or discount various foal registration costs for our 2018-19 season.
Any industry in decline for a sustained period will take time to turn around, and HRV is no exception, particularly given HRV’s debt levels, which constrain our ability to invest in these critical areas. We know we need to put more money into addressing a number of critical club infrastructure projects and to increase marketing and ownership initiatives.
The good news is that, as we have been saying for some time now, the industry’s financial position is improving. Undoubtedly people are also aware that fewer horses competing for a larger total prizemoney pool means a greater opportunity for those remaining in the industry or those looking to join. In 2017-18, there were 140 more races won, which means more opportunities for owners, trainers, drivers and breeders of horses to experience that winning feeling.
Gordon Rothacker Medal and Hall of Fame
On Sunday October 21 there will be no trots race meetings in Victoria, as the whole industry takes time to recognise the achievements of current and former champion horses and participants.
For the first time, the Gordon Rothacker Medal night will incorporate the Hall of Fame, and build on the success of previous year’s events. It was a fantastic night last year and the run-sheet has been updated to increase time for people to mingle and enjoy a dance. This is our night of nights to celebrate the fantastic clubs, breeders, drivers, trainers, owners and horses that make our sport so special.
Open-age C0 races
A matter raised at a recent Harness Racing Advisory Council (HRAC) meeting was that of open age races being won by three-year-olds. An analysis of open age C0 only races in the 2017-2018 racing season reveals that from 162 races run, 74 comprised one or more 3YO starters (45.68 per cent). Of those 74 races, 52 were won by a 3YO (70.27 per cent). Furthermore, a 3YO started favourite in 62 of those 74 races (83.78 per cent), winning on 42 occasions (67.74 per cent). Of those 42 wins, 36 were as an odds-on favourite (85.71 per cent), whilst 30 were at $1.40 or shorter.
It is apparent that the practice of 3YO pacers competing in, and more often than not, winning open age C0 only races is detrimental to our racing product from a wagering perspective, whilst also impacting on the ability of a 4YO and older horse to win a C0 only race. Therefore, effective as of November 1 2018, all C0 class races in Victoria will be restricted to 4YO and older pacers.
This means that a 3YO pacer, having won two 3YO races and then being assessed C0/3C2, will be required to have its first open age start in a C1 class race. Under Australian Handicapping Rules, a horse only incurs one career penalty for a win, therefore, a C0/3C2 pacer will become a C1/3C3 pacer after winning a C1 class race. Such horse will remain eligible to again contest a C1 class race, now as a C1/3C3 pacer.
A 3YO pacer will still be able to win four races and be assessed C2/3C4, now in most cases by winning two 3YO races and two C1 class races, whereas in previous seasons it will have won two 3YO races, a C0 class race and a C1 class race.
The analysis also highlighted that 22 open age C0 only races were deleted, 18 of which contained one or more 3YO nomination. This programming amendment will provide more competitive racing in 4YO and older C0 only races, whilst enhancing the prospects of 4YO horses winning their $7000 Vicbred First Win Bonus.
Country cups season
It seems like only yesterday that we wrapped up last year’s Trots Country Cup season and now we’re into it again with the Kilmore, Swan Hill and Cranbourne Cups in September and October along with the Pryde’s EasiFeed Victoria Cup. They’ll be quickly followed by Yarra Valley, St Arnaud, Gunbower and Geelong Cups in November. Recent changes to the points for the Cup series, timing of Cups and preferential barrier draws are aimed at enlivening this important series.
2018 Inter Dominion (ID18)
As recently announced, we are pleased that Tabcorp will be the major sponsor for ID18 and that Channel 7 will be showing both the pacing and trotting finals free-to-air in five capital cities. That means that people who aren’t able to attend Melton on December 15 can watch live on Sky Channel, Channel 7 or HRV’s Trots Vision (via www.thetrots.com.au).
It is shaping up as a great series, with Tabcorp Park, Cranbourne and Ballarat Clubs going to great lengths to prepare and promote their nights of heats. There’s some great entertainment and fantastic offers, so if you haven’t already, I would suggest you have a look at the id18.com.au website for dining packages, race day information, race history and programming, transport and accommodation. There’s a variety of options with something for all tastes and budgets ranging from $10 General Admission tickets through to all-inclusive premium hospitality packages.
Kind Regards,
David Martin