Statement by Presidents of Victoria kindred bodies

The following is a statement by the Presidents of the Victorian Harness Racing kindred bodies following their meeting with Harness Racing Victoria (HRV) yesterday.

All members of the HRV Board and Senior Management Team participated in yesterday’s meeting which went for more than three hours and involved robust but constructive discussion from all parties.

The CEO and Chief Financial Officer of HRV provided a very detailed presentation outlining the current financial position of HRV, how HRV have arrived here, relevant resource comparisons and future opportunities. The Victorian State Government has been providing considerable financial support to HRV in recent years but has in recent months directed that HRV must live within its own means moving forward.

Whilst disappointed at the financial position that HRV finds itself in, we understand and accept the fact that HRV has no alternative but to find $10M in annual operational efficiencies including $3.9M in prize money cuts effective from 1 October.

As an industry we need to follow the directive of government and pro-actively manage our situation. We cannot ignore the directive from government which would almost certainly result in government stepping in and ultimately making decisions for the Industry.

At the request of the Kindred Bodies, HRV have agreed to release the tiered prize money structure that they are proposing will apply from 1 October. Industry participants will have an opportunity to provide written feedback and input on the proposed tier levels and this will be done via the Kindred Bodies.

We will release further information on the proposed tiered structure and the process to provide written feedback to the Kindred Bodies in the next 24 hours.

Our Harness Racing Industry operates in a highly competitive wagering and entertainment market and there are revenue challenges that we currently face. HRV have advised that it is not their intention to close existing racing venues and they want all existing venues to continue to race. However, HRV has made it clear that the existing racing calendar and frequency of meetings at venues is being critically reviewed with changes likely so that Industry wagering revenues and in turn returns to Industry stakeholders are maximized.

At the conclusion of the meeting and after considerable discussion from all parties, the Kindred
Bodies advised HRV that:

1) We are supportive of new CEO Matt Isaacs and want to work with him to best position our sport in a highly competitive landscape and protect the future of our Industry;

2) Our Industry has every right to expect that HRV as the Controlling Body will have an efficient administration structure in place. We believe that there are opportunities to drive savings and efficiencies within the administration of HRV and expect the CEO and the Board to drive these opportunities.

3) We need HRV to have a far greater focus in the future on prioritizing returns to Industry stakeholders and do not believe that this has been their primary focus in recent times.

We expect that the CEO will drive this change so that Industry participants are at the forefront of scarce resourcing decisions.

From the Victorian Harness Racing Club