Racing Victoria Update.

[Chief Stipe]

Kruger opens up on racing's big issues

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A decision on whether prizemoney in Victoria is reduced, including a possible purse cut to the All-Star Mile, is imminent, outgoing Racing Victorian Chairman Brian Kruger says.

 

Country club mergers and a new funding deal that should see increased funding for the sport regardless of the wagering licence outcome, were also key takeaways from the wide-ranging interview which will air at 7pm (AEST) on racing.com.on Wednesday night.

 

He also questioned whether prominent breeders, who recently criticised changes to Victoria's Spring Carnival, should be targeting pop-up races that have impacted the pattern.

 

Highlights of the interview include:

 

ALL-STAR MILE CASH REDUCTION

 

"Nothing's off the table. I would note, though, that we have been really happy with how the All-Star Mile has performed since its inception. We had some specific objectives there about creating a new marquee race day during the Festival of Racing, and I think we've done a great job at that," Kruger said.

 

"I can honestly say we don't look at this as a pet project. We're very objective people sitting around the table. If we think that was the right outcome, we'd make it happen.

 

"But there's no pet project. As I say, we don't have egos that go, if we got it wrong, we wouldn't admit it."

 

 

 

RACING'S NEW FUNDING DEAL

 

Kruger confirmed the State Government had guaranteed crucial funding, on top of recent POCT announcements.

 

"Together with the POC change, I'm talking about from a Victorian racing industry perspective now, we'll see something like $200 million per annum coming into the racing industry, and that's relative to something like $170 million for all three codes we'd expect to see from similar sources this year," he said.

 

"So, that's going to help solve a lot of that funding gap that we've got. The problem, as I said, that we have, is it doesn't kick in for another 14 or 15 months."

 

 

 

COUNTRY CLUB MERGER

 

Kruger addressed a study commissioned by RV that looks at cost savings across the three metropolitan clubs. He was also asked about whether RV is looking at merging two country clubs.

 

"There may be ways that things can be run more efficiently. You might have a cash-rich, asset-poor club with an asset-rich, cash-poor club, and it makes a lot of sense to look at putting those together. So they're the sort of things that we need to, as an industry, be looking at to see if we can get a better outcome," Kruger said.

 

 

 

METROPOLITAN CLUB REVIEW

 

Kruger said the review into how the three metropolitan clubs operate identified significant savings, but any merger hadn't been discussed.

 

"We commissioned Ernst and Young to work with the clubs to see if there are opportunities to get savings and that might be in areas like procurement, or back-office things, or technology or whatever," Kruger said.

 

"And I think there are some opportunities there and the clubs have now seen that report and we'll work together on implementing those initiatives. And it's not going to save the industry, but the money's still significant. The question around club consolidation, I've been in this role for six years. It comes up every year. It'll keep coming up, no doubt. There are pros and cons, I think."

 

Kruger also said the financial health of the three metropolitan clubs varies.

 

"All of the clubs are doing different things to try to improve their own financial position. Some of them are in better positions than others. But as I say, I think generally, they're all doing okay," he said.

 

 

 

COUNTRY TRACKS

 

Asked if there are too many country tracks, Kruger said while some may lose money, they remain of vital importance to local communities and remain a priority for the State Government.

 

"If I was running this just as a business, the answer to your question is probably, yes, we have too many. But Racing Victoria's got an obligation to the communities," he said.

 

"We get support from the government because of those things that we do. So I don't think we've got any interest in breaking away from that, actually supporting the communities that we operate in that might have a once or twice-a-year race meeting. Maybe we lose a bit of money on that, but the joy that we give back to people in those communities is also very, very valuable and that's not something that's lost on us."

 

 

 

SPRING CARNIVAL CHANGES

 

Not moving the Cox Plate was a financial decision, not a political one according to Kruger. He said now that racing's financial future is somewhat clearer, it would make sense to revisit a change to the Spring Carnival.

 

"I think it would be reasonable that we look at … are there more things we can do? We'll learn from the move of the Thousand Guineas, and how successful that is, but I know the team will keep looking at options on how we can keep getting better," he said.

 

He also addressed recent criticism from Thoroughbred Racehorse Owners Association chairman Jonathan Munz regarding moving key spring races.

 

"Jonathan's obviously the chairman of TROA, but he is also a very big breeder and a very big owner. But we've also got fans and other punters and others to think about when we're making these decisions. So again, coming back to the basic premise, what we were trying to do is to push extend our spring carnival into that what we see as very fertile ground," he said.

 

Asked for his view on members of TROA campaigning for the preservation of the pattern but entering runners in pop-up races, Kruger said: "Seems a little bit hypocritical, but I probably should let Jonathan [Munz] answer."

 

 

 

RACING AUSTRLIA

 

Kruger said he had not witnessed such an unwillingness to compromise from some of the RA board during his career.

 

"I've been in business a long time. I've been in all sorts of different industries. I've never had a situation where other parties aren't willing to either compromise on an issue or indeed, if there's a strong disagreement on a matter, you go, okay, we'll park that. We're never going to agree on it. But what about all these other things that we need to work on together for the betterment of the industry or whatever the issue is. We haven't been able to achieve that with New South Wales," he said.

 

Asked if the current impasse on RA can be fixed with the current RNSW leadership, Kruger said: "I think if we get constitutional change, it could be. Otherwise, I doubt whether it will happen. Leopards don't change their spots."

 

 

 

See the full interview on Wednesday night on racing.com at 7pm AEST.

[Chief Stipe]

2 minutes ago, Chief Stipe said:

"We get support from the government because of those things that we do. So I don't think we've got any interest in breaking away from that, actually supporting the communities that we operate in that might have a once or twice-a-year race meeting. Maybe we lose a bit of money on that, but the joy that we give back to people in those communities is also very, very valuable and that's not something that's lost on us."

Different approach!