Straight Up – Foal crop drop, jobs cut and wagering in freefall

In this edition:

• Resilient breeders press on but 2025 Australian foal crop set to be smallest in 50 years
• What can we expect from the Rosehill Select Committee report?
• Minns-McMahon relationship set to be referred to ICAC by Rosehill Committee
• ‘Gillotine’ – Tabcorp cuts 200 jobs in quest to get fitter
• Rogers acts on VRC troubles with up to 40 jobs to be axed
• No spring in Victorian turnover as wagering slump drags on
• Straight Talk Podcast – Is racing in recession?

The end of 2024 is a good time for reflection on what state the thoroughbred industry is in.

It is arguable that like many industries, racing in Australia is in a recession, with a raft of job losses, negative financial results and costs in all aspects continuing to soar.

One measure of the confidence of the industry is the willingness of breeders to invest. There is a very practical metric to this, the foal crop. While Australia’s foal crop has been falling for several years, given the volume of mares served, we can expect 2025 to be the lowest in 50 years.

Tim Rowe has been busy speaking to every major stud in the country this week, getting an indication of what their stallion books have been like in 2024. While some have done better than others, the overall feeling is that numbers are down around 10 per cent.

It is interesting that that rough figure of a 10 per cent decline is consistent with what is happening in other parts of the industry.

Racing Victoria data has revealed that wagering turnover dropped 8.2 per cent across the spring carnival this year, as the post-pandemic wagering bubble has burst. Every time you seem to ask a racing or wagering figure about declines in turnover the reply is tends to be ‘about 10 per cent’.

Tabcorp, meanwhile, has cut its workforce by, you guessed it 10 per cent, with 200 jobs gone from the wagering giant in the past month as it seeks to ‘get fitter’.

The job cuts at the Victoria Racing Club were a little more significant, 15 per cent, with up to 40 positions to be lost after it reported a $24 million loss for the last financial year.

Interestingly, both Tabcorp and the VRC are helmed by former executives from the AFL, Gillon McLachlan and Kylie Rogers, who have recently stepped into roles where they need to make significant change.

These broader industry challenges, which impact racing, breeding and wagering, are centre stage in this week’s Straight Talk podcast as we ask ‘is racing in recession?’. Watch below or subscribe on You Tube, Apple, Spotify and Podbean.

Friday will be a significant day with the parliamentary Select Committee investigating the Rosehill proposal to hand down its report after an extensive inquiry.  

One recommendation already leaked is that NSW Premier Chris Minns is set to be referred to ICAC over his dealings with the Australian Turf Club executive Steve McMahon, who is a personal friend of the Premier.

We have taken a broader look at what to expect from the Committee Report, which will be published on Friday morning.

 Also in the news:

• Water shortage leaves Kalgoorlie racing industry high and dry
• Australian Dunshea’s rise up ranks of British racing administration continues
• Records smashed at Tatts as Amo Racing snaps up Irish Oaks winner for almost $10 million
• Pattern of discontent – Bloodstock agents united against changes

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Regards

Bren O’Brien

Managing Editor and Founder

The Straight