Chief Stipe Posted March 24, 2022 Share Posted March 24, 2022 ANALYSIS: Sandown decision critical Paul Tatnell@PaulTatnell 24 March, 2022 Racing is not all about money. But it sure goes a long way in our sport. Two clubs are currently set for significant redevelopments worth hundreds of millions of dollars. Prizemoney is at record levels, the breeding industry is producing colts in the seven-figure range and we have just witnessed a record wagering period. But how to sustainably meet these costs is the tough question. Racing Victoria will take care of the majority of the prizemoney, even if the expected wagering decline eventuates. But the three Melbourne clubs know running a racing club is not cheap. The traditionalists, let's call them, argue that the clubs should operate and make decisions that are about racing. And they are right - their core product is racing and they should be run to serve the sport and its members. But the kicker is, as per above, that it's a costly exercise. Clubs, in order to properly support their core product, have diversified their assets to ensure incomes away from a Saturday meeting. Every Melbourne metropolitan club has looked at its assets and sold businesses or land because it made business sense and inevitably helped its core racing operations. But no club has had an asset like Sandown and if sold, the windfall just not for the Melbourne Racing Club but the industry as a whole, could be huge. As far as a new-look housing estate looks, it's impressive. According to the MRC, a new Sandown development would be new homes, medical centres, schools and allowances for green space. It will cost an estimated $3.5 billion to develop and would take around 20 years to complete. As the literature supporting a new suburb notes, it's one of the last pieces of the southeast corridor left to develop. But it would replace one of Melbourne's most historic racing sites and would be cold comfort for those who adore Sandown as a racecourse. Historic and intrinsically linked to some of our greatest racing memories, there's plenty who will fight to keep Sandown. Others who want it to stay just believe it's the best-performing track in Victoria. There will be plenty of prominent racing figures who will likely speak up against the development. Trainer Peter Moody put it as only he can, asking 'why the bloody hell is it even being considered'? "It's a beautiful galloping track, every participant loves it." Fellow trainer Mick Price has publicly called for the MRC to investigate the partial development of the site but keeping the racetrack. It's unlikely, however, that that option will make economic sense. Price also asked the salient question that every club has been forced to ask of late: "Aren't we in racing? If they want to be in property development, then they should be in property development." The economics of racing at Sandown, according to the MRC, don't stack up. The club claims to lose $5 million a year racing there. Wagering in comparison to Caulfield is just over six per cent lower when the club holds race meetings at Sandown. Crowds don't turn up either [which could be argued might be because of the ageing facilities]. As RV takes a closer look at just how sustainable some clubs' financial models may be, the strength of a club's assets or income away from racing is important. RV's close relationship with the MRC in regard to Sandown is crucial. The slow shift from many at RV from being cautious to somewhat supportive of a sale is important and the two bodies signed a memorandum of understanding on Sandown. A significant amount of work by some at RV with strong ties to the Victorian Government has been crucial in securing tax exemptions. Undoubtedly linked to Sandown's future, RV will shortly launch a significant piece of work regarding the future of racing and what infrastructure it may need. That document, Racing.com is told, includes discussions of a huge new facility. Negotiations continue surrounding hundreds of acres of land in Melbourne's north. But It could be home to a new training facility, academy, equine welfare hub and potentially even a quarantine base. It could even include a new racetrack. Surely any sale of Sandown is dependent on a slice of the profits paying for this facility. As RV has always maintained, it will only support the sale of Sandown if it's in the interests of racing, not just the MRC. The kicker of selling Sandown could be a shiny new facility that would take racing into the future. It's a scenario, according to some involved in the process, that means at least some who were previously opposed to selling Sandown are now happy to watch this space. Regardless, the next 24 months will be the genuine test for the industry - are we ok to say goodbye to a loved yet ageing facility in order to take ownership of something that will be used for generations? Are we comfortable with clubs actively seeking alternative revenue streams from established assets to ensure its core racing products are modernised? Regardless, there will be no quick outcome for Sandown's future. Rezoning applications will take more than a year. An election cycle won't help, plus there will be a new Planning Minister post the election who will play a key role. Then once the politicians, bureaucrats, administrators and media have had their say, it will all come down to the MRC members to decide what's best for racing - should racing stick with Sandown or does it make sense to move on? Quote Link to comment Share on other sites More sharing options...
Racing is not all about money. But it sure goes a long way in our sport. Two clubs are currently set for significant redevelopments worth hundreds of millions of dollars. Prizemoney is at record levels, the breeding industry is producing colts in the seven-figure range and we have just witnessed a record wagering period. But how to sustainably meet these costs is the tough question. Racing Victoria will take care of the majority of the prizemoney, even if the expected wagering decline eventuates. But the three Melbourne clubs know running a racing club is not cheap. The traditionalists, let's call them, argue that the clubs should operate and make decisions that are about racing. And they are right - their core product is racing and they should be run to serve the sport and its members. But the kicker is, as per above, that it's a costly exercise. Clubs, in order to properly support their core product, have diversified their assets to ensure incomes away from a Saturday meeting. Every Melbourne metropolitan club has looked at its assets and sold businesses or land because it made business sense and inevitably helped its core racing operations. But no club has had an asset like Sandown and if sold, the windfall just not for the Melbourne Racing Club but the industry as a whole, could be huge. As far as a new-look housing estate looks, it's impressive. According to the MRC, a new Sandown development would be new homes, medical centres, schools and allowances for green space. It will cost an estimated $3.5 billion to develop and would take around 20 years to complete. As the literature supporting a new suburb notes, it's one of the last pieces of the southeast corridor left to develop. But it would replace one of Melbourne's most historic racing sites and would be cold comfort for those who adore Sandown as a racecourse. Historic and intrinsically linked to some of our greatest racing memories, there's plenty who will fight to keep Sandown. Others who want it to stay just believe it's the best-performing track in Victoria. There will be plenty of prominent racing figures who will likely speak up against the development. Trainer Peter Moody put it as only he can, asking 'why the bloody hell is it even being considered'? "It's a beautiful galloping track, every participant loves it." Fellow trainer Mick Price has publicly called for the MRC to investigate the partial development of the site but keeping the racetrack. It's unlikely, however, that that option will make economic sense. Price also asked the salient question that every club has been forced to ask of late: "Aren't we in racing? If they want to be in property development, then they should be in property development." The economics of racing at Sandown, according to the MRC, don't stack up. The club claims to lose $5 million a year racing there. Wagering in comparison to Caulfield is just over six per cent lower when the club holds race meetings at Sandown. Crowds don't turn up either [which could be argued might be because of the ageing facilities]. As RV takes a closer look at just how sustainable some clubs' financial models may be, the strength of a club's assets or income away from racing is important. RV's close relationship with the MRC in regard to Sandown is crucial. The slow shift from many at RV from being cautious to somewhat supportive of a sale is important and the two bodies signed a memorandum of understanding on Sandown. A significant amount of work by some at RV with strong ties to the Victorian Government has been crucial in securing tax exemptions. Undoubtedly linked to Sandown's future, RV will shortly launch a significant piece of work regarding the future of racing and what infrastructure it may need. That document, Racing.com is told, includes discussions of a huge new facility. Negotiations continue surrounding hundreds of acres of land in Melbourne's north. But It could be home to a new training facility, academy, equine welfare hub and potentially even a quarantine base. It could even include a new racetrack. Surely any sale of Sandown is dependent on a slice of the profits paying for this facility. As RV has always maintained, it will only support the sale of Sandown if it's in the interests of racing, not just the MRC. The kicker of selling Sandown could be a shiny new facility that would take racing into the future. It's a scenario, according to some involved in the process, that means at least some who were previously opposed to selling Sandown are now happy to watch this space. Regardless, the next 24 months will be the genuine test for the industry - are we ok to say goodbye to a loved yet ageing facility in order to take ownership of something that will be used for generations? Are we comfortable with clubs actively seeking alternative revenue streams from established assets to ensure its core racing products are modernised? Regardless, there will be no quick outcome for Sandown's future. Rezoning applications will take more than a year. An election cycle won't help, plus there will be a new Planning Minister post the election who will play a key role. Then once the politicians, bureaucrats, administrators and media have had their say, it will all come down to the MRC members to decide what's best for racing - should racing stick with Sandown or does it make sense to move on?
Chief Stipe Posted March 24, 2022 Author Share Posted March 24, 2022 Sandown currently loses $5m a year on primarily racing operations. However given the apparent disarray of the construction industry in OZ at the moment is redeveloping Sandown into a housing estate a very risky propostition? Quote Link to comment Share on other sites More sharing options...
Huey Posted March 27, 2022 Share Posted March 27, 2022 I'm surprised this is even an issue in Aus. Seems like Sandown is needed there I'd have thought, well Melbourne that is especially midweek. Personally Sandown one of my favourite tracks to punt at , so be a shame to see it go, that long straight is superb. Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted March 27, 2022 Author Share Posted March 27, 2022 23 minutes ago, Huey said: I'm surprised this is even an issue in Aus. Seems like Sandown is needed there I'd have thought, well Melbourne that is especially midweek. Personally Sandown one of my favourite tracks to punt at , so be a shame to see it go, that long straight is superb. The MRC (Melbourne Racing Club) want to invest more than $300m in redeveloping Caulfield into a racing, sporting and recreational hub. To enable that it will mean divesting of Sandown. Don't forget there are three clubs in Melbourne - the MRC (Sandown and Caulfield), the VRC (Flemington) and the MVRC (Moonee Valley). So it looks like there will be only 3 courses left in Central Melbourne with training devolved to outer areas e.g. Pakenham etc. Moonee Valley has been undergoing redevelopment with housing/apartments being built. Quote Link to comment Share on other sites More sharing options...
Huey Posted March 28, 2022 Share Posted March 28, 2022 2 hours ago, Chief Stipe said: The MRC (Melbourne Racing Club) want to invest more than $300m in redeveloping Caulfield into a racing, sporting and recreational hub. To enable that it will mean divesting of Sandown. Don't forget there are three clubs in Melbourne - the MRC (Sandown and Caulfield), the VRC (Flemington) and the MVRC (Moonee Valley). So it looks like there will be only 3 courses left in Central Melbourne with training devolved to outer areas e.g. Pakenham etc. Moonee Valley has been undergoing redevelopment with housing/apartments being built. I see , we appear to be doing the opposite here, devolving provincial facilities to race at major centres . Shame to see Sandown go , I think it provides great competitive racing. Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted March 28, 2022 Author Share Posted March 28, 2022 19 hours ago, Huey said: I see , we appear to be doing the opposite here, devolving provincial facilities to race at major centres . Shame to see Sandown go , I think it provides great competitive racing. I just can't see the sense nor the economic benefit of shifting training facilities away from the main centres. It is a secure source of revenue and less volatile than relying solely on entertainment and hospitality revenue streams. Quote Link to comment Share on other sites More sharing options...
holy ravioli Posted April 2, 2022 Share Posted April 2, 2022 Strathyr track at Ellerslie=laters!🙄 Quote Link to comment Share on other sites More sharing options...
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