A year ago today, we flicked the switch on a new thoroughbred racing platform called The Straight. It is fair to say a lot has happened in that time.
We have new chairs at the two biggest principal racing authorities (PRAs), Racing NSW and Racing Victoria as well as at the Melbourne Racing Club, new CEOs at RV, the Victoria Racing Club, the Brisbane Racing Club and Tabcorp and resignations of the CEOs of Racing SA, the Melbourne Racing Club and Thoroughbred Racing New Zealand.
To give some context, the only people who had heard of a proposal to sell off Rosehill racecourse when we launched on November 28, 2023 were the Australian Turf Club board and executive, select people at Racing NSW and a few members of the NSW government.
It has now become one of the biggest political issues in Australian racing of recent times, significant enough to prompt a parliamentary inquiry, which has extended its reach to the power and funding structures which underpin racing in the state.
Then there is the national politics of the Pattern, which looked like it was finally resolved in September, but which has since blown up spectacularly, with seemingly arbitrary upgrades drawing international concern and a lack of recognition.
In the wagering world, we are still waiting to hear what the federal government’s plans are for gambling advertising, while in the past 12 months Bluebet and Betr merged and other wagering service providers came and went. Tabcorp was mired in scandal and upheaval, having previously revamped its Victorian deal, while it is also looking to review its approach in NSW.
Bren O’Brien
Point Of Consumption remains front and centre, with a rise to 15 per cent in Victoria and suggestions NSW could adopt a 20 per cent rate, which most in the racing and wagering industry have decried as a bridge too far.
Turnover on racing has continued to decline as bookies put a sharper focus on margins, which is good news for their shareholders but not necessarily for punters.
The knock-on impact of all this upheaval for the PRAs has been combined losses of $78 million, which has put a sharp focus on the cost of running racing. Meanwhile, race clubs are also in a difficult spot, with many reporting heavy losses.
The bloodstock and breeding industry has tightened its belt, but we still had a $10 million yearling and a $6.6 million broodmare sell this year. We profiled Yulong as one of our first stories on The Straight and its continued rise has been one of the biggest bloodstock stories of 2024.
The concept of The Straight was built on the fact that all of the above is intrinsically linked and in order to properly cover the governance and commercial aspects of the thoroughbred industry in depth, we would need to discuss all these often quite complex subjects.
Bren O’Brien
If it impacted multiple industries, we aimed to report and discuss it.
It is no coincidence that such a period of upheaval occurs during a prolonged period of wagering decline. The pandemic betting boom hid a few structural issues for the broader industry, but as the tide has receded, more than a few have been caught short.
Because of that change in the wagering market, PRAs are having to chart a different strategy in terms of funding, while the financial situation of race clubs has become even more dire, raising questions as to their core function.
While prize money levels have remained at historic highs, the cost of operating training businesses has also increased significantly. The only way to counter this has been to operate at scale. The big stables get bigger – Ciaron Maher and Chris Waller banked $50 million in prize money each last season – while more and more smaller trainers opt out.
It’s a similar story for smaller breeders, many of whom have scaled back or have left the commercial market as the risk of buying and selling in a much more selective environment has become too great. The top end of the bloodstock market remains bullish, again favouring those who operate at scale.
Bren O’Brien
This two-speed economy has some of the industry’s biggest names worried and that is before we even start talking about what a possible cut in returns to owners might do to the bloodstock market.
Thoroughbred racing has long been a part of broader Australian society, and as such is far from immune from the macro-economic conditions. Ask any syndicator and they will tell you that interest rates and the cost of living have stopped the ‘mum and dad’ investors in their tracks.
Similar consumer behaviour is seen in the wagering space, where punters are simply spending less, because it is what they can afford. Combined with that, racing is losing its market share to sports betting.
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The specific challenges in New Zealand may be different, but the same themes remain. What goes on in the thoroughbred industry on one side of the Tasman always has an impact on the other, regardless of which way it flows.
It’s not all doom and gloom. The thoroughbred industry continues to play host to some amazing moments, from the fairytale Melbourne Cup win of Knight’s Choice to the story of Winx and her $10 million first foal. It remains the domain of the most extraordinary stories of any sport.
But as much as we celebrate the sport of racing, we also can’t leave aside the analysis and reporting of the industry which supports it.
It’s what we set out to do at the start of our journey and the response has indicated that what we cover and the way we do things resonates with those who are passionate and engaged.
Matt Stewart
We have had over 320,000 unique users visit The Straight’s digital platform in our first 12 months plus countless of other people reached whether that be through our social media channels or our presence on radio stations such as SENTrack. This audience has grown substantially over the past three months.
At the heart of that sits a core group of 6000 people signed up as free members and receive our Straight Up newsletter three times a week. Our stats tell us that this cohort of people constantly engage and re-engage with our content.
We are grateful for every person who has visited The Straight, but especially those who see the value in the way we cover this complex, extraordinary industry.
Initially, we intended to move relatively quickly to a subscription/membership model to help fund the business. But the reaction to our content, and the issues which arose soon after our launch, saw us pivot to keep all our content freely accessible.
Bren O’Brien
We wanted to showcase all that we are doing and thought it was important to keep this accessible.
We have leaned more heavily on an advertising/sponsorship model to sustain the business and thanks to brilliant partners, who not only value what we do, but value the importance of our independence, we have been able to keep The Straight open for all.
The next 12 months will bring plenty of more big stories to cover in racing, breeding and wagering, many of which are already developing and some of which we have no idea are coming.
Our plan in 2025 is to introduce a premium, paid membership for specific features and content, the details we will aim to provide early in the new year. The future viability and prosperity of The Straight, and our ability to sustain and develop the quality of our journalism, will depend on this hybrid commercial model.
Bren O’Brien
Finally, I just want to take a brief moment to reflect on those who have contributed so much to what The Straight has been able to achieve in our first 12 months. The contributors, the advertising/sponsorship partners, those who helped keep the business running and the people we have lent on for advice - both professional and personal.
A special mention goes to our senior journalist and editor, Warwick Barr, who has carried the load from the start. Also to Tim Rowe, whose involvement over the past three months has given us a new spring in our step, and Tahlia Mammone, who has extended the reach and scope of our brand through social media and other avenues.
Matt Stewart
I’m very much looking forward to working with these people and others, including our new partnership executive Gavin Corcoran, in the coming months and years to realise the potential of The Straight.
