Harness Racing Victoria sets out future strategy with no room for complacency

Harness Racing Victoria laid bare the issues facing Harness Racing in the State at their annual Strategy meeting held at Bendigo on Monday evening.

Chief Executive Matt Isaacs and Chairman Bernard Saundry both spoke in presenting the existing situation and what the future might hold. Both didn’t hold back in outlining the challenges facing the industry.

A summary of the key issues were:

Harness Racing Victoria — Annual Performance Overview

Financial Turnaround

HRV went from a forecast $34M loss in financial year 24 to a $1M profit in financial year 26, removing approximately $33M in costs over three years of a structure turnaround plan.

Workforce & Efficiency

Staff headcount was reduced from 128 to 68, with online licensing management and split payment processing introduced to digitize and streamline operations.

Melton Performance

Melton venue went from annual profitability (~$3M including rent), driven by gaming, bistro, sports bar, and functions.

Integrity & Welfare

507 stable inspections, a new betting intelligence unit, 4,000+ swabs (14%+ of starters tested), and best-in-class data capabilities across Victoria’s three racing codes.

Wagering & Revenue

Turnover down 13% due to fewer race days and economic headwinds, but a new race field fees model generated ~$1.1M additional revenue from the largest wagering supplier. Summer of Glory delivered 888K digital impressions and 5,000+ on-course at Victoria Cup night.

Strategic Outlook

The Forecast for financial year 2026/27 indicates a $1M group loss. This will be mainly due to the effects of inflation. Critical priorities include the Melton land transaction (valued at around $120M) and transition to a private entity by 2028.

There’ll be 3 million breeding vouchers to address declining foal numbers.

This particular issue raised major concerns from those present as to how to stem this rapid decrease and the dilemma that studmasters face.

Bernard Saundry in his opening address indicated

Over the last 12 months Harness Racing has gone through a financial reset. Moving from a deficit position to a modest surplus. We want to reinforce from a Board and Management decision that our aim is about sustainability for the future.

When we’re- as we develop that change and push for new revenue streams and push for increases in wagering, it won’t come at the expense of the, the industry’s core purpose.

Isaacs explained

Wagering has softened and, and our result is in line with what’s happening with the other codes and, and across the other states. So it’s just more of a, a broader economic challenge that we’re all facing. The insured bonus that we introduced to re- reinvigorate the Summer of Glory.

Isaacs added

So being a private entity, we need to ensure that we have the appropriate asset base and cash flow to be able to ensure that, we’re meeting the obligations for ASIC (the financial regulator) and ensuring that our industry is fit and financially fit.

Ultimately what we’re trying to do there is ensure that we’re getting the right value for that land exchange with government. We’re trying to fight for the right to be able to sell that land ourselves and pay government back our obligations.

There’s a lot of costs that sit with us as a government statutory body. There’s a lot of reporting and masters that we have with different commissioners that can get involved in harness racing in Victoria and soak up a lot of time and energy and, and focus that could be spent on other things. So, this will be a very good outcome for harness racing in Victoria once we can do it. And as we look beyond, F28, assuming that we can get the outcome that we, we want with our land, we want to build the pathways for the next generation, of harness racing participants. Uh, we want to innovate our product to maximize revenues. That’s where we race, when we race, how our races look. We need to become more exciting. We need to be able to find a way to engage a younger audience that wants to bet.

We aim for the right outcome through the Melton Land transaction. We can then make the right investments into, businesses or initiatives that can help generate money for harness racing that can be reinvested back into capital, prize money and, and other areas of the sport.

Saundry then made an important point regarding moving to the future.

One is taking the steps the board and the management team have taken in reducing the current headcount at HRV. The next phase will be how do we restructure HRA to take national business processes and put them in a national body to be more efficient? That’s the second one. The, and the third one is how do the states then work together? So we’re looking at it all the time. There are… We’re saying to the team, “Bring forward the next 10 things that have got to come out.” Prize money’s not on that list.

The above represents only part of what was discussed and a great deal of debate ensued on lower breeding numbers and levels of prizemoney in harness racing.

Clearly the immediate to medium term will be crucial to the fortunes of harness racing not just in Victoria but nationally as well as all State bodies face challenges in balancing their books.

After going through a relatively parlous financial state, there is a sense of stabilisation at HRV but no one is underestimating to scale of the tasks ahead to maintain viability.

The move to private entity status will require HRV to stand on its own feet without any Government support. Maintaining strong financial prudence and accountability will be key to making that successful transition.

 

By Tony Milanese for Harnesslink