Straight Up – Cutting their cloth – The demure reality for racing’s administrators

In this edition:

• Deficit days – Racing Victoria slips into the red as it absorbs new reality
• Funding ‘top-ups’ for under-pressure ATC as wagering woes hit home
• Departing Racing SA boss warns of ‘challenging’ wagering picture despite record revenue
• ‘Encouraging trends’ – Sportsbet grows revenue and customers despite softness in turnover and racing
• ‘Unaccountable’ – Parliament considers greater scrutiny on Racing NSW as Rosehill questions persist
• De Kock returns home amid ‘renewed confidence’ in South Africa’s thoroughbred industry
• Home Affairs to make a Magic impression as Gold Coast catalogue is released
• A Brazen opportunity – stakes winner Bold Bastille to go under the Digital hammer
• Divine glory – the rise of WA’s most sought-after sire Playing God
• Straight Talk Podcast – Ep 4

There is a clear theme among the annual reports of both the Principal Racing Authorities and the racing clubs as to the funding challenges facing Australian thoroughbred racing industry.

The wagering growth which powered the post-pandemic bubble is now a distant memory and there are concerns about how PRAs and clubs can sustain the higher costs of doing business.

Given prize money has nearly doubled over the past decade, it would seem the most vulnerable to reduction, but the political implications of such a move, at a time when participants say they are also feeling the strain, makes that a very hard sell.

So, the cost of putting on the show is what is coming under the microscope.

Since Aaron Morrison took over as CEO, Racing Victoria has been reviewing its costs very closely, with the media business under particular scrutiny. All of this in a time when its wagering funding model has undergone a huge change. A $11.8 million reported loss revealed this week, only puts that in sharper focus.

The ATC has reported a $2.4 million operating loss – albeit recording a small profit overall – and embattled chairman Peter McGauran pointed to the decline in returns from wagering as his biggest concern moving forward.

Racing SA put up a positive $1.4 million figure but is predicting a deficit in the realms of $3 million this financial year as it too looks to cut its cloth amid diminishing wagering returns.

What we are also seeing is the major wagering companies getting better at profitability, despite declining turnover. Flutter reported its Sportsbet business in Australia was showing encouraging signs, growing both revenue and number of customers in the most recent quarter, as staking continues to drop.

The political fight in New South Wales racing is firmly back in the spotlight, with a Bill introduced into parliament this week to provide greater oversight into the operations of Racing NSW. That came as Racing NSW board notes reveal the regulator wanted its own oversight, in this case over the bulk of the funds derived from the potential sale of Rosehill.

The Magic Millions catalogue for its January sale is live and Tim Rowe has taken an extensive look at the key trends and most anticipated lots of the 1401 on offer.

On the track, the WA carnival is ramping up and we’ve taken the opportunity to look at the west’s leading sire Playing God, with Jesse Dart speaking to a range of key figures about the emerging force of WA breeding.

Meanwhile, Mathew De Kock has announced he is headed back to South Africa to train with his father Mike. Tim Rowe looks at the improving state of racing in the country.

Don’t forget to check out our Straight Talk podcast this week, where Tim and I talk about the financial challenges facing racing, the boost in Melbourne Cup ratings, the Magic Millions catalogue and Yulong’s dominance. Also available on Apple, Spotify and Podbean.

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Regards

Bren O’Brien

Managing Editor and Founder

The Straight