Harness Racing Victoria (HRV) has today announced $10 million in operational efficiencies and prizemoney reductions following the finalisation of its annual planning and budget.
HRV has forecast a wagering reduction in the 2023/24 season, part of a revenue downturn that requires new cost-saving initiatives in line with its variable income model, which is geared at protecting the industry from further economic challenges.
The savings, to be spread across the industry, incorporate an eight per cent contraction in HRV’s prizemoney, which will return to 2021/22 levels.
The projected total prizemoney adjustment is $3.9 million and effective from October 1.
Prizemoney and bonuses next season have been set at just over $47 million alongside a remodelled harness racing structure. These changes will introduce a linear tiering, seeing horses race for more prizemoney as their national rating increases.
HRV consulted with industry kindred bodies and stakeholders regarding the restructuring of prizemoney in an extensive six-week review. The results of these led to the latest changes, which from October 1 appropriately reflect and reward incrementally the improved performance of the horse.
Prizemoney adjustments will also impact feature, metropolitan and regional racing but there are no plans to reduce prizemoney on our marquee events such as the Great Southern Star, A.G. Hunter Cup and Vicbred Super Series.
HRV CEO Matthew Isaacs said he was “thankful that industry bodies, including Victorian Trainers and Drivers’ Association, Harness Breeders Victoria and Trots Club Victoria, had provided not only their time but invaluable insights, guiding decision making during the consultation period”.
Isaacs said HRV would now also implement broad cost-saving measures within its business, targeting $6 million in operational efficiencies this financial year.
“HRV operates a variable income model earnt predominantly from wagering. The wagering market has softened and we must take the necessary financial steps to ensure harness racing is sustainable,” Isaacs said.
“HRV is committed to distributing more than half of all revenues into prize money and is laser focused on nurturing and supporting a viable industry with the highest levels of integrity, animal welfare and returns to participants.”
Isaacs said HRV was also preparing for the 2024/25 racing season when a new industry funding model and Victorian Wagering Licence would be formed alongside a renegotiation of media rights, vision and sponsorship.
“This will provide a valuable opportunity for HRV to work together with the other two racing codes, government and industry to ensure we can transition to a fully self-funded model. Even through times of change we are committed to doing the right thing for all our industry participants and are focused on securing and enhancing the sport’s future here in Victoria,” Isaacs said.