As we draw towards Christmas and the end of the 2017 calendar year, I thought it an opportune time to reflect on a year of significant change for the harness racing industry in Victoria.
After taking on the role of HRV CEO in January, I made no secret of the fact the industry was in the midst of an extremely difficult period. To put it bluntly, the sport was in decline in more ways than one. Victoria and Australia weren’t alone either, with the trots facing similar challenges internationally. But here in Victoria our situation looked particularly grim, with shrinking revenue from a reduced Joint Venture market share over several years, combined with a debt of $29 million.
The first step towards turning things around is always for the Board and leadership team to be open and honest about the hurdles facing the industry and the situation at hand. For me, visiting people from all harness sectors and listening to their feedback was an important task. Equally important was communicating with them on the need for all of us, as an industry, to do things differently.
Step two was to move quickly and decisively to develop and implement strategies so that we can steer the ship back on course. Change is never easy and tough decisions had to be made. But I am immensely proud of HRV employees and the industry for the resilience they have shown during this time, and for their willingness to embrace a new way forward.
The current board and I have demonstrated in a variety of ways over the last 12 months our commitment to listening to the industry’s views, with plenty of examples where we have made change in response to industry trends, views and feedback. And together we have achieved a good deal of progress in a short space of time.
Initiatives implemented included the $750 bonus races in September and October that stimulated race fields and the horse population during a traditionally difficult period, supplementary and 2:02 mile rate races both worked and will continue to feature on the calendar, while 1100m sprint races were trialled but didn’t work. A $3.1 million boost to the HRV integrity department over two years from the State Government will see a doubling of post-race swabs, more stewards, vets and investigators, whilst our Employee Assistance Program was expanded to become an Industry Assistance Program, looking after the wellbeing of our trainers, drivers and club staff.
Stakemoney was increased to over $40 million for the first time (noting that at the end of October HRV has spent $700,000 more in stakemoney than the same time last year) with a commitment to program as many or more $10,000 races as last year. The DNA fee for breeders was waived, Victoria became the first Australasian harness jurisdiction to announce the introduction of a minimum bet policy, and we collaborated with New Zealand and New South Wales to bring the Inter Dominion back to Victoria for the first time since 2008.
Also of note was the Victoria Cup's move to October, and despite the difficult decision to reduce stakemoney to $200,000 for that race, total wagering on the event was up 5%. More broadly, HRV oversaw 10 straight months of year-on-year wagering growth, with the last seven months all being double-digit growth (e.g. Nov 17% year-on-year, with only 3 more races being run), and from May to October (a six-month period) Victoria had an average of 6% more starters each month.
Reflecting HRV’s continued decline in market share from the Tabcorp JV, HRV announced a $1.7 million loss in 2016-17. The outlook for the current 2017-18 financial year is brighter, with the refreshed strategy being implemented that will deliver a substantially better outcome compared to 2016-17.
On the racetrack this year we were in awe as Chris Alford (the Australian Drivers' Championship winner) and Gavin Lang both notched their 6000thwinners, world record holder Kerryn Manning continued her ascent as the greatest woman in racing and legendary horseman Jim O’Sullivan was honoured with the Gordon Rothacker Medal.
Bling It On’s win in the A.G. Hunter Cup was awesome in February, we celebrated two Victoria Cup winners in Lazarus and of course our own people’s champion Lennytheshark, and let’s not forget Lenny’s amazing Miracle Mile win, which helped judges award him Victorian Horse of the Year honours. We also saw Glenferrie Typhoon take out the richest trotting race in Australasia, the Great Southern Star.
Looking ahead to 2018, the industry has reason to be optimistic. We still have a mountain to climb, but together we are working hard to build a foundation upon which the industry can grow and maximise returns to participants into the future.
With prizemoney in excess of $40 million, the return of the Inter Dominion (three rounds of heats with two rounds to be held at non-Melton Victorian tracks), an updated club funding model, a refreshed HRV leadership team with Andrew English (Marketing) and Luke Spano (Finance) the two most recent additions, there is plenty happening.
My invitation is for the industry to continue working together to turn things around. Let’s make 2018 a year to remember and the Inter Dominion a truly magnificent event.
Thank you to everyone busily preparing for the annual New Year’s Eve meeting at Tabcorp Park Melton, and the exciting Country Cups and 2018 Summer of Glory carnival that follow soon after.
I wish every one of you a Merry Christmas and a safe and prosperous New Year.
See you in 2018!
David Martin, HRV CEO