HRV Under AttackHarness & Greyhounds

Chariotsonfire

Demanding action following catastrophic $24m loss

August 16, 2024 National Trotguide

WE, the Presidents of the Victorian Harness Racing Kindred Bodies, are issuing this urgent and united statement to express our profound concern over the future of Harness Racing in Victoria.

A meeting we requested last week with Harness Racing Victoria (HRV) has confirmed a series of devastating developments that threaten the very existence of our beloved Industry:

• HRV has incurred a catastrophic $24 million loss for the 2024 financial year, following heavy losses in 2022 and 2023.

• There will be additional cuts to stakemoney of between $10 million (22 per cent) and $18 million (40 per cent) over the next three years that will devastate participants and the sport.

• HRV’s financial mismanagement has rendered it virtually insolvent and unable to meet its debt obligations.

• It’s loan borrowings from government using our vacant land asset at Melton as collateral has all but forfeited a vital industry asset valued at $100million.

• HRV’s contract with SKY Channel is nearing its end, with a very real risk of Victorian harness racing being relegated to SKY2.

Since 2018, HRV has engaged in reckless spending, dramatically inflating administrative staff and employment costs. Despite this, the industry has seen little benefit, with HRV funnelling vast sums into marketing, integrity, and costly consultancies.

Instead, stakemoney was cut 12 months ago and low-stakes races have proliferated.

Over the past five years, HRV’s employment costs have ballooned by an astonishing 71 per cent.

These disastrous strategies have failed, and now it is the hardworking participants in our industry who will bear the brunt of further drastic cuts to stakemoney and the provision of services. An anticipated reduction in stakes of about 33 per cent over the next three years could mean:

• Current $4500 races in the country reducing to $3000.

• Current $6000 races in the country reducing to $4000.

• Current $15,000 races at Melton reducing to $10,000.

This represents a monumental failure of governance at HRV, compounded by its secrecy in keeping industry stakeholders in the dark. HRV has put the future prospects of harness racing in Victoria plus the livelihoods of around 5000 industry workers in grave jeopardy.

In so doing, HRV has also undermined the $670million economic contribution provided by our industry to the State.

We find it inconceivable that the Board of Harness Racing Victoria could have been so irresponsible and failed so profoundly in their governance responsibilities that they may have effectively forfeited the industry’s $100 million vacant land asset at Melton.

The 93-hectare land parcel at Melton, purchased by the industry for $3million two decades ago, was intended to be a future fund for harness racing; a valuable asset that would generate ongoing returns, much like the sale of Harold Park in Sydney. Experts now value the Melton land at over $100million.

Yet, due to HRV’s poor policy decisions and escalating debt, it is now doubtful that our industry will be able to capitalize on that shrewd investment in our future.

In 2020, HRV’s loan balance with the Government stood at $13.7million. By 2023, this amount had surged to $42.3million and with a projected $24million loss in 2024, the loan balance is now expected to be in the region of $66million.

We believe it is vital that Harness Racing retains equity in this land, or at least a portion of it, to assist the industry’s recovery through future revenue streams from its ongoing development and appreciation.

This abject failure in governance and financial bungling by the Board and senior management has worsened the situation year on year. And HRV’s glaring lack of transparency and reluctance to communicate with industry participants must be strongly condemned.

At no time has HRV advised the Industry that the Melton land asset was under threat or could be lost. This is a betrayal of every individual in this State who depends on the harness racing industry for a livelihood.

We have no confidence in the Board of Harness Racing Victoria. It is irrational to expect the same individuals who led us into this crisis can now navigate us out of it.

We believe that Harness Racing in Victoria can recover from the confronting situation it currently faces. However, this requires urgent intervention from the Minister, including the appointment of a new, capable, and competent Board and ensuring Harness Racing retains an equity interest in the Melton land for a critical future revenue stream for the Industry.

Emmy Mazzetti – President Victorian Harness Racing Club
Paul Rowse – President Trots Clubs Victoria
Anthony Butt – President Victorian Harness Racing Trainers and Drivers Association
Anne Maree Conroy – President Victorian Square Trotters Association
John Coffey – President Harness Breeders Victoria

warrenrobinson

Hello everybody in WA  grab a Bex Powder and a cup of tea  replace HRV with RWA (Harness) and this mirrors our situation which has been posted on many occasion's.

JayJay

WA Harness almost certainly incurring very similar losses based on FY 22/23 figures with the 23/24 figures almost certain to show even further decline. These circumstances don't just happen  overnight, and the elephant in the room, linked to the obvious question, is:

How do the people who oversea and manage the Industry, and are thus responsible for the business trading at such huge losses, how do they keep their jobs? Should they not be called in Monday morning and given half an hour to clean out their desks and handover the keys?

Tell me of one corporate entity (BHP or Woodside or Woolies?) that would tolerate trading insolvently to this degree. In Victoria, huge amounts of unsustainable stakes increases were thrown to the top end of town for those Breeders Crown "self funding" (not)  fiascos, in much the same way it has been done in WA with the funding clearly directed to the already high stake metro races, and the outcome is that the base of the industry will be going round for a projected $3,000 per race? 

After taking the Bex Powder, take another one and then listen for the unmistakable sound of a mass exodus out the Industry Door. Racing for $3,000 is simply unsustainable, either in Victoria or WA or anywhere for that matter.

Hands up if you are fed up with "the future looks bright", "cracking nights racing coming up" (which no one bets on), these decisions or this new business plan will "future proof" the Industry, or this injection of Funds into the Slot Race will "reinvigorate the Industry" types who either wear endless supplies of rose colored glasses or just make stuff up and tell monstrous porkies. Their defense is to apportion blame to others, usually the Industry Participants themselves and deflect, weave and dodge.....but as appears to be the case in Victoria, deflecting, weaving and dodging only gets you so far, as is clearly evident from this Victorian Industry call of no confidence in their board.

Chopchop43

I think the giant elephant in the room is the fact we have 2 absolutely dog crap 'handicapping' system to pick from , neither of which serve up fair , good to watch racing and rather than go to their participants to look for feedback they try jamming the systems down our throat feeding us absolute garbage to make it seem like said systems are going to pump life back into a lifeless industry

warrenrobinson

No Handicap No Turnover No Future

Markovina

Victoria what a disaster 

Who was the CEO , who was the board members and who was the senior Accountant who presided over that 

Like they say a break even business isnt a bad business - pisssed away the $100 million nest egg at Melton

Reading that , the striking same thing with WA , is like they say the secrecy , the participants aernt being told the changes in the  state of  the  Balance Sheet , until it is basically insolvent 

Its amazing what some racing boards do , remember TVN with the gallops , they bought Best Bets ( the pocket size form guide ) for about 300k -400k  and about 9 months later closed it 

JayJay

The response from HRV CEO Matt Issacs is a beauty.....deflecting, weaving and dodging on a Phil Krakour like scale, complete with every weasel word imaginable,  along with the obligatory "blame the Industry Groups".

It would seem that member organisations of  Victoria's equivalent of the Harness Racing Consultative Group have cried enough is enough. I wonder if they publish minutes of their deliberations for ALL participants to read and digest. Asking for a friend.

Jasper

Surely the Board didn’t authorise such a response? (ie taking aim at the stakeholders). How will they ever work together in the future?

JayJay

When announcing the 8% cut in stakes last month, Matt Issac's claimed that there had been "extensive consultation" with the Industry Bodies, in fact going so far as to offer his thanks to those bodies for being so generous with their time.

Alas, the industry representative bodies issued a statement fundamentally calling out Issac's claims as not being remotely accurate and that Industry consultation actually consisted of more than having some discussions with a few select individuals. Sound familiar?

Not too big a stretch to say that a civil, or perhaps not so civil, war has or is about to erupt. Even the Victorian Minister got involved ordering meetings to occur. A proactive Racing Minister? Now there is a rare occurrence.

Jasper

I have been back as a hobby trainer for about 18 months and I don’t think I can recall anything from our Racing Minister. That might be on me however as I don’t follow politics..

With respect to Victoria it will be interesting to see their Minister’s response if the story is picked up by the mainstream media. You would think the Shadow Racing Minister would be all over this.

warrenrobinson

The WACHRA submission said it all about our industry and the reason why it's in the position it is totally based on facts.

savethegame

Forget about Racing Ministers, once they changed the Racing Act. With the formation of RWWA, and the CEO'S. salary eventually climbed to approx 840 k in charge of 500 people. The premier his boss was on 370k. in charge of 1. 8 million people plus; Government try to distance itself from Gambling. Families impacted
The last time a Racing minister intervened was when Nick. Griffiths 2002 made W.AT.A. give back meetings to Country Clubs prior to RWWA inception

If Gambling Ads are removed from Football Racing, other sports etc Do you think Corporate Bookmakers, will still offer Sponsorship for the three codes if their growth is affected.

Harness Racing been in the decline one of the biggest reasons is the Intergrity , Genuine participants just quietly walked We had 762 drivers 1057 trainers. 87/88. ,they lasted a bit longer then the punters.

Interesting to see H.R V had in 2022 100 full time employees costing 14.1million dollars -----. W hile HRNSW had 45 fulltime employee's costing 5.6million-----. 8.5 million more with H.R NSW paying 9k. Country 6.9 -----H R.V. 7k Country 4.5 Base Stakes. Who's tickling the peter.

Markovina

Watched an interview on facebook with Issacs a couple of months back , didnt impress me at all , alot of umming and aahing , got similar mannerisms and body language as M Radley when being interviewd 

I like executives even if they are a little bit aggressive , even if they bang the table , and they say these are the FACTS 

Issacs went to great lenghts to explain , point out whatever , that if you add all the states Aust wide re Harness racing , then it amounts to very little of the racing /gambling code 

JayJay

A document purporting to be the new stake levels in Victoria has been leaked, not circulated for "transparency" from HRV, but regardless, the purple circle Geckos have reason to rejoice.

Maidens will cop a 14.3% stake reduction (from $7,000 to $6,000) but NR 89 and NR 105 escape scott free, no reduction in stakes whatsoever, 0%. Open Metro NR 120 races get away with just a 6.25% reduction ($24,000 down to $22,500) but still racing for a half decent stake.

Once again, it is the vast majority of the industry, those semi dependent on the Soup Kitchen, that cop it right up the blurter whilst the Geckos sail on unimpeded by story water.The drive to shrink the industry even further just goes on and on and on.

lick

Just six of the eight races at Bunbury tonight are odds on.

warrenrobinson

Poor management make poor decisions, just don't understand how these people keep a job, as JAYJAY has posted many times it's time for a full on enquiry into Harness Racing is needed even maybe a Royal Commission.

warrenrobinson

Harness Racing Australia Management along with Harness Racing Victoria and Racing WA Management have failed our industry, can't name one KPI that has been achieved and we wonder why we are where we are. No hope unless a true handicap system is introduced.

JayJay

Standby for all the flannel ......."it's a softening wagering environment", "phone betting has taken over", "sports betting other than on racing has swamped us", "punters prefer betting from their couches", "the Casino has done us in", "country racing is a financial blight on the industry", "the breeding industry has collapsed", "it's all the fault of the participants".

Well, it is a softening wagering environment for the other two codes as well, phone betting affects the other two codes, sports betting bites into the other two codes, couch punters bet on the races and the dogs as well, the Casino doesn't only bite harness on the bum and so on.

Yet the other two codes continue to take market share off Harness hand over fist, to the extent that Harness can't muster more than 10% of market share.

So stop blame shifting, stop putting up smoke screens, stop rolling out distractions and previously failed policy again and again, stop trying to polish the various "turds" of failed handicapping systems and start looking within. For decades, management of the Industry by both HRA and the various State bodies has clearly failed (the figures never lie), and they have failed dismally. Government Ministers of all persuasions have watched it all unfold and unravel, as was pointed out on here last week, and done nothing. Hello Mr Papalia?. Nick Griffiths, pre - RWWA, was the last one to exert any authority.

What is happening in Victoria is not isolated. Same song, different band is about to start playing in just about all jurisdictions. Will there be any of the Administrators who have overseen this disaster be clearing out their desks tomorrow morning?  Because such a clear out may be the first action that may genuinely "reinvigorate", "revitalise" or "future proof" the Industry, terms that we are fed up to the back teeth hearing about. A proper bipartisan Parliamentary Inquiry, first called for years ago, is our only hope.

warrenrobinson

Has anyone successfully polished a turd

warrenrobinson

Would Mr Sheen polish a turd?

JayJay

When the sausages are past their use by date, they get turfed out. No amount of price cutting, relabeling or fancy recipes can save them. The Industry has been served up a lot of out of date snaggers over the journey. Mr Sheen was good but he wasn't that good.

Frog

V"Landys with NSW wagering down over 10% and increasing prize money.

Just to big dick Vic racing is to destroy NSW racing with decreasing turnover. 

Frog

Game over with increase prize money when turnover down so much. 

Frog

Same as the trots , there is a race coming with the biggest prize money in the world and many of the runners aint even FFA  class just a joke race. 

warrenrobinson

Heard it all before Frog  it's all to do with ego's by these grifters. What will a 2 Million dollar race do to grow the industry?.

JayJay

And it is a 2 million dollar race obscenely funded by a tax on breeders? So a few of the purple circle can strut their stuff in front of the hoi polloi for one night, exerting their superiority over the greater unwashed of the Industry? 

Meanwhile, let's cut maiden stakes by over 14% because they are the easiest target and we are out of dough because we have been massively subsidising so called "self funded" Breeders Crown races for the same purple circle for decades, and borrowing against the Industry nest egg, **** it up against the wall in the process. The Geckos have got the game by the balls but pretty soon, there will be no game.

savethegame

That twoyearold slot race in Queensland The Protostar (500k)would love to have futures bet Ladbrokes win three of first five runnings.

Ladbrokes (Entain) have first two slots,.

Then precedence is given to Queensland stables or Companies for next three slots if more then three apply a draw takes place

, Then what's left over unsuccessful Queensland bids, (redraw) plus all other Australian parties go into draw for remaining five slots.

With Adam Hamilton access to industry participants along with Dean Shannon C E O. they will have walk up start to the best two yearolds ..

This year's winner Fate Awaits was locked in April by Ladbrokes.

savethegame

Do remember reading , one stage if they didn't get 11,000 patrons to Harness meetings Melb showgrounds, or Moonee Valley per- meetings they would run those meetings at a loss to fees found that hard to believe, they then brought land to build on ,but that never eventuated it will come to me , it was early eighties, be worth a pretty penny now.

Bit like when G.P. there was strong push to go to Belmont with Multiplex 100 million touch , we dodged a bullet there , Plus even Larkhill was mentioned.
.
We got boys trying to play same games now.

W.A.T C. had three stories office in city Multiplex said we will take that and build offices across the road at Ascot for a million.

Was only Chairman of racing and owner of Multiplex

Hope these no naughty boys thinking like that in Harness.

JayJay

One of the comparisons being made in Victoria about HRV are employee numbers. HRV has 151 employees versus HRNSW 50 and this disparity is causing considerable angst among harness representative bodies in Victoria, such as the trainers association etc.

In WA, RWWA has 440 Full time equivalent employees as per the 2023 Annual Report, up from 367 in 2020, an increase of 20% in 3 years. Of course, RWWA administers all 3 codes and the TAB but employee growth of 20% in 3 years does seem quite extraordinary and in keeping with how semi autonomous government QUANGO's typically grow like topsy

savethegame

Jay Jay. Street corner mail few have received or about to receive redundancies .

warrenrobinson

A comment on Boards, Harness Racing Victoria- failed, RWWA-failed so why would a club believe changing from a Committee to a Board  benefit the club.