With the Moonee Valley dream over, what’s next for Victorian harness racing?
The single most important thing is what happens to the Melton track and its surrounding area.
Simply, some or all it will need to be sold to not only secure the future of the sport in Victoria, but also provide funds to increase prize money.
This MUST be a big win for the industry.
Last week there was a State Government legislation change which paved the way for Harness Racing Victoria to switch from a binding statutory body to an entity of its own.
Simply, to put HRV in charge of its own destiny.
That’s also a must.
But, and this is the key, sources say whatever happens with Melton must be decided BEFORE any switch from a statutory body.
It means the State Government will have an enormous, almost controlling say, over how the sport’s one real Victorian lifeline plays out.
Knowing the challenging financial state of the Government, that’s a big concern.
Despite the challenges, the Government must look at the bigger picture and importance of harness racing throughout the state … for jobs, local communities, wagering revenue, etc.
There are so many peoples’ livelihoods at stake here.
Let’s go back a step to set the scene a bit more.
Depending on who you talk to, the entire Melton site could be worth about $250-300 million.
HRV owes the State Government a serious chunk of money from loans, reported to be about $85 million.
That is broken down into $45million long term debt to purchase the Melton land and build the complex, plus $40 million of solvency funding as part of HRV returning to profit this financial year.
While HRV remains a statutory body, the Government could do anything from a supportive reduction on the payback amount to asking for much more than that $85 million.
Remember, that Melton valuation is based on selling the entire site.
There is another option to retain just the racetrack space and sell the rest of the land.
How much would that get? $100-150 million.
Is that enough?
The answer seems to be that it depends on how much the State Government wants to take from the sale.
While Melton is no Moonee Valley, surely the preferred option (if financially) possible, is to keep the Melton racetrack? At least for as long as possible.
But there is a world where, to have financial viability, HRV may have to sell the entire site.
Then tracks like Ballarat, Bendigo, Cranbourne and Shepparton would share the “metro” class Saturday night meetings.
That begs a bigger question … does HRV need to own a metropolitan track? Is that the best way to tie-up crucial funds?
There is another consideration with Melton as a long term home, too.
As the area continues to grow and property values grow, the region’s long held tag as the home of harness racing will diminish.
We’ve seen numerous trainers sell their properties and more will follow in time, when the lucrative offers come in.
The epicentre of harness racing will unquestionably spread and change over time.
What’s crucial here is a strategic decision based on commercial realities – now and longer term – to ensure the sport we love has a viable future.
And, hopefully, a sensible, understanding and supportive State Government.
