The Victoria Racing Club has confirmed a $24.2 million loss for the 2023/24 financial year as the cost of running Australia’s biggest race club increased by $9 million, while revenue remains flat compared to the previous financial year.
While the club boasted a record 34,320 members, it is the fifth straight financial year of operational losses, with those losses since the start of the pandemic in 2020 now totalling $87 million.
Total revenue for 2023/24 was flat when compared to 2022/23 at $216.6 million, with a $1.2 million drop in thoroughbred industry distributions and a $1.3 million decrease in wagering and other racing revenue.
But the real issue of the balance sheet was the rise in costs, from $231.8 million to $240.8 million.
Members services and administration jumped by $4.5 million, catering, dining and hospitality by $2.8 million, while racecourse and facilities costs leapt by $2.2 million.
The $24.2 million loss saw the club’s retained earnings fall from $99.8 million to $75.1 million.
The financial result will only heap more pressure on chief executive Kylie Rogers, who took the role in September, to make substantial changes, with reports in other media outlets suggesting a significant reduction in headcount by as much as 40 per cent.
The VRC currently employs 235 staff permanently and another 2200 on a casual basis through the spring carnival.
VRC chairman Neil Wilson did not specifically mention the financial loss in his introduction to the annual report but did back in Rogers to guide the club strongly into the future.
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“We believe Kylie’s career experience and leadership qualities are extremely well aligned to our strategy and the delivery of the next exciting chapter for the VRC,” Wilson wrote.
“Kylie brings fresh perspectives and a strong commitment to the VRC’s future, including a clear vision that honours the club’s proud heritage. She is dedicated to placing the horse at the heart of all we do and transforming Flemington into a vibrant, year-round racing and entertainment destination.
“With a dedicated VRC team that is clear on the strategy for our club and the unwavering support of our members, we are well-positioned to continue our legacy of racing excellence and providing outstanding experiences for all who engage with the VRC and visit Flemington.”
Bren O’Brien
As a means of comparison, 10 years ago the VRC reported $150.9 million in revenue and $147.5 million in expenditure.
The VRC will hold its annual general meeting on December 17 at 3pm, where the annual report will be presented, and the result of board elections will be announced.
Six candidates are competing for three spots on the board.
Current directors Neil Werrett, Michael Ramsden and Sophie O’Kane are standing again, while Stephen Hewitt, Paula O’Sullivan and John Wise are also standing. Voting closes on December 13.
