Wagering key in prizemoney boosts
Ben Sporle @bensporle
Wagering results will determine any further prizemoney announcements and bonuses for the autumn carnival according to new RV CEO Andrew Jones.
RV announced an uplift of over $26 million to prizemoney levels in June but also flagged to review industry performance throughout the second half of 2022 before making a final determination on prizemoney for the 2023 Festival of Racing.
“We are distributing as much in prizemoney as we think the industry can sustainably afford,” Jones told After the Last.
“If we think wagering is going to fall off a little bit we will leave a margin of safety in our P and L (profit and loss).
“But once we are confident in our revenue we distribute a percentage as prizemoney and we allocate that across the spring carnival, autumn carnival but also the day-to-day racing and which is probably how the majority of trainers, owners and staff get feed.
“So it’s really important we keep the minimums healthy as well as the maximums.”
While Jones believes the sport to be in a healthy position, he said prizemoney increases to feature races should not be lead by state rivalry but rather when a benefit is to be achieved.
“Prizemoney is going up in both states because revenue is going up in both states,” he said.
“And one of the reasons is going up in both states is because more people are watching and betting on racing.
“And one of those reasons is because prizemoney is going up so it attracts interest to the sport.
“So to an extent its part of the marketing budget for racing, it’s quite healthy.
“I think were you get into issues is where you are funding the same type of race at the same time where you really are doubling the money and reducing the quality at the same time.”