2011 REPORT ANNUAL - Racing NSW

Chief Executive’s
Report
Whilst the end of year result is satisfying for the The Kempsey Club's difficulties originated with track
organisation it has come at some cost to the industry. problems and with an adequate recovery time as well as
At a glance the industry indicators look solid.
application of the correct maintenance program it is
envisaged that racing will recommence before the end of
• The total number of race meetings funded and the calendar year and similarly the management structure
conducted 483, has remained consistent with previous of the club will also change.
years and incorporated conversions of non-TAB
Conversely it was necessary to appoint an Administrator at
meetings to TAB status for Sky 2 coverage.
the Queanbeyan Racing Club for managerial and financial
• Average prizemoney per race has increased from reasons, with 2010/11 being approached as a stabilising
$9,092 to $9,458 year to secure the club's future.
• Total returns to owners have increased from Unfortunately the task of reversing the club's position will
$38,207,150 to $38,642,871 be more long term and influenced by the facility which is
• Average field sizes have increased from 10.7 to 10.9
ageing and in need of major repairs and maintenance.
However beneath these statistics is the realization that
In both the above instances the work of the
payments to clubs to finance this level of activity would not
Administrators, Perry McNally and Brendan Comyn is
have been possible without a subsidy of $10.7 million from
acknowledged in enthusiastically approaching difficult
Racing NSW by advance payments from race fields
circumstances.
revenue.
The other major change with race club administration on
Cancelled or transferred race meetings as a result of the
the horizon is with the Golden West Race Club, which has
consistent wet weather also affected funding, with the
operated since 2004 conducting racing at the Orange and
compounding affect of the cancellations being the lost
Bathurst venues. For a variety of reasons the merger has
opportunity for clubs to raise additional revenue and
not been as successful as envisaged and the club will
profits.
demerge into two entities during 2011/12.
The other major influence on industry funding during the
In conjunction with that demerger, a new administrative
year was the reduced revenue from totalisator wagering of
structure will be trialled at Orange and possibly Bathurst,
$39,176,794 which was not offset by an approved and
where an agreed number of independent committee
regulated revenue stream from corporate bookmakers.
members will be appointed rather than elected by the
membership.
It is now left to the High Court to be the final arbitrator in
this dispute.
Generally clubs still continue to have difficulties meeting
liquor licensing conditions imposed by police or OLGR.
The significance of the Court's findings will also be evident Whilst recognising and supporting the need for country
at NSW country venues, where presently Tabcorp hold clubs to carefully control this part of their operations, a
exclusive advertising rights. The initial agreement with TAB point was reached through the year where the
was extended until October 2011 and the value of Murrumbidgee Turf Club took the view that they had taken
advertising oncourse for television coverage (and all reasonable steps to comply with RSA requirements, but
wagering sponsorship) will be tested during the coming yet still incurred breaches under their licence.
year irrespective of whether or not Racing NSW is
successful in the High Court.
At Appeal the MTC's position was upheld and hopefully
that will lead to future licensing conditions that meet
More on the race club scene, Kempsey Race Club and community expectations, particularly with the pending
Queanbeyan Racing Club have each been managed by introduction of the three strikes legislation.
Administrators during the year.
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