Summary of Industry Rally
From HarnessLink -Monday 25 August 2024
More than 500 harness racing participants came from all corners of Victoria today (Aug 25) to unite behind industry bodies and take whatever action is necessary to save the sport in the State. Trainers, drivers, owners, fans, club representatives and even bookmakers gathered, with 200 apologies lodged, for a two-and-a-half-hour rally and crisis meeting at Bendigo.
They pledged to inundate the Racing Minister Anthony Carbines and Government and Opposition MPs with united appeals for them to step in where their sport’s Statutory Body Harness Racing Victoria has failed in its duty to the industry.
Participants travelled up to four hours to attend the rally, which packed the Bendigo Harness Racing Club, where Victorian Harness Racing Club Treasurer Shane Gloury stepped through the industry’s deepening financial hole.
The rally organized by the kindred bodies (Victorian Harness Racing Club; Trots Clubs Victoria; Victorian Harness Racing Trainers and Drivers Association; Victorian Square Trotters Association; Harness Breeders Victoria) came after the organisations released shattering details about the financial state of the sport last week.
The recently tabled HRV Annual Report detailed losses of $24M over the past financial year, and a crippling reported debt of $66M. But industry participants were galvanized by the devastating prospect of the loss of an industry “nest egg” established for the future of the sport 20 years ago – a 93-hectare landbank surrounding the Melton Entertainment Complex.
The orderly but impassioned meeting heard details including that HRV borrowings over the past five years to keep the sport afloat had resulted in a deal with the State Government to hand back the land to cover the debts.
The meeting heard:
Heavy losses at HRV had been building in recent years and HRV has confirmed a disastrous $24M loss in the 2024 financial year
There had been a 51% increase in the number of full-time employees since 2016
HRV employment costs have increased by $6.6M (72%) in the past five years
Marketing expenses grew by $1.43M (175%) between 2020 and 2023
Gloury said the kindred bodies had started raising sustainability concerns early in 2023 around the “head count” at HRV, and increasing expenditure, but could not achieve any announcements from HRV on how it was addressing the issues.
“There are twice as many staff at Harness Racing Victoria as in Harness Racing NSW, and every time we query them on it, we are told trust us, we’re efficient!” he said.
“If you look at the expense lines, employment costs at HRV are $15.7M. The equivalent line at NSW is $7.1M. So, for the year ending June 30, 2023 there is an extra $8.6M in employment costs to manage our sport at HRV than in NSW. And if you are wondering what $8.6M represents – it’s $2000 for every race that we run in this state.”
Gloury said a secure financial future for Victorian harness racing rested on a lean operating model, a strategic recovery plan and a leadership in which participants and punters could have confidence.
“Now we find out that HRV have cashed in the value of the Melton land under a secret deal with the Government in the first half of 2023 to get themselves out of the mess they created,” Gloury said.
“HRV has spent considerable sums on this land parcel over many years, it’s valued now at least at $100M and it’s gone. Cashed in by HRV without industry consultation, knowledge or communication,” he said.
After a one-hour presentation from Gloury, the floor was thrown open to questions and for input from attendees, with more than an hour of robust discussion from participants at all levels, from elite breeders to third-generation participants – all devastated at the outlook for the industry and angered by the lack of transparency from the Statutory Body running the sport.
Four resolutions were carried unanimously calling for Minister Carbines to understand:
Leadership and Governance Reform is needed at HRV to lead and oversee the Harness Racing Industry in Victoria.
A commitment is needed to fast-track HRV to a low-cost administration model
It is critical to ensure that HRV retains some form of equity share in the Melton Land to create a future fund for the Industry
Withdraw the request for HRV to sign over the Melton Land to enable critical consultation to occur with the Harness Racing Industry
Meeting organisers said they were overwhelmed by the response to the meeting but emphasized the need for participants to be part of the solution.
“You need to email your local MP, or even better, arrange a face-to-face meeting with them, and outline your concerns about the future of harness racing in Victoria,” Gloury said.
“Email the Racing Minister, email the Member for Melton Steve McGhie and re-iterate what it is we have called for today,” he said.
“Harness racing provides 5000 jobs and $670M in economic activity for Victoria – so let’s roll up our sleeves and get the sport back on track!”
Downloads for members:
Statement from Kindred Body Presidents