‘Future-proofing’ of industry behind racecourse deals: V’landys

Racing NSW insists its acquisition of racecourses around the state is a strategy aimed at securing the long-term future and viability of the racing industry.

Amid a growing conjecture over a proposed transfer of the Goulburn racecourse, chief executive Peter V’landys revealed Racing NSW had previously struck similar deals with three other race clubs.

Goulburn and District Racing Club members will vote on April 2 on a board proposal to hand over its 40-hectare freehold racecourse to Racing NSW.

In return, the Goulburn club will receive $9.5 million in funding to build new stables and upgrades to its existing training facilities.

“Racing NSW has a policy to future-proof the NSW thoroughbred racing industry by ensuring that racecourses are not sold for the wrong reasons in the future,” V’landys said in a statement provided to The Straight.

“Racing NSW’s sole interest in transferring ownership of the land is to ensure that the land remains a racecourse for the industry in perpetuity and is never at risk of being sold or converted for another purpose.

“This strategy is purely about future-proofing the industry.”

Since it was opened in 1999, Goulburn’s profile has increased to the point where leading city stables have regular representation at the racetrack that has a 1750m circumference and a 400m straight.

Frequent runners from trainers such as Gai Waterhouse and Adrian Bott, Ciaron Maher, Annabel Neasham, Joe Pride and John O’Shea have helped make Goulburn a leading country NSW racetrack.

Their presence followed the late Group 1-winning trainer Guy Walter’s decision to operate a satellite operation from Goulburn to support his base at Warwick Farm.

Goulburn is a two-hour drive from Sydney allowing easy access for metropolitan stables while its southern tablelands location also attracts trainers from Canberra, the NSW south coast and the Riverina region.

V’landys says race clubs operating from freehold properties are disadvantaged.

“Ownership of the land is of no benefit to the club if there is no intention to ever sell it,” he said.

“In fact, retaining ownership of the land is a poor use of the club’s capital assets as construction of stabling through this funding provides the club an opportunity to generate significant recurring revenues.

“Accordingly, the application from Goulburn Race Club has been considered in line with that policy, which will see Racing NSW provide funding of $9.5 million for the construction of 80 stables and associated infrastructure following the submission received from the club.

“Ownership of the land is of no benefit to the club if there is no intention to ever sell it.” – Peter V’landys

“As has been the precedent set with other race clubs, including Newcastle, Gosford and Tuncurry-Forster, this funding comes with a requirement that the club transfer ownership of land to Racing NSW.

“The club will receive a long-term peppercorn lease to ensure that the club continues to operate as it currently does, with no additional costs or obligations.

“The construction of the stables will generate additional revenue for the club going forward from stable rent and track fees.

“Further, the club will receive additional funding from Racing NSW which is provided to race clubs based on the number of horses trained at the track which will increase for Goulburn with the new stables.

“This proposal has been met with the unanimous support of the Goulburn Race Club board.”

Racing NSW also owns two other racetracks apart from the three deals with clubs mentioned above with Newcastle, Gosford and Tuncurry-Forster.

“Racing NSW has also acquired Moruya racecourse from the local council and Scone racecourse from a third party, with both of these clubs receiving long-term peppercorn leases following the transfer,” V’landys said.

An acquisition of the Goulburn freehold would be the latest in a string of real estate deals Racing NSW has completed during the past seven years.

The regulatory body’s diverse property portfolio was revealed in The Straight last month.