News

Guaranteed prizemoney a massive boost for racing industry

31st May 2009

The Daily Telegraph - Ray Thomas - Monday, 1 June 2009

RACING NSW has moved to alleviate owners' fears of widespread prizemoney cuts by guaranteeing minimum stakes until the end of next season.

Alan Brown, chairman of Racing NSW, said last night funds would be provided to financially troubled NSW race clubs to ensure there were no prizemoney reductions.

Racing NSW's funding pledge shows real leadership and a timely confidence boost to NSW racing that should help dissuade owners considering moving racehorses to Victoria.

"I can give a guarantee there will be no prizemoney cuts until the end of the 2010 season," Brown said last night. "Racing NSW will provide any necessary funding to help clubs like the STC. Some of these funds will come from the payments we have already received under the race fields legislation."

Racing NSW has collected almost $30 million since the race fields legislation was enabled last September but has not distributed those funds to NSW race clubs as it was subject to two separate legal challenges from a corporate bookmaker and betting exchange organisations.

Racing NSW chief executive Peter V'landys hinted last week that the board would move to use some of the race fields legislation money rather than allow the racing industry to suffer irreparable damage and possible job losses while the court cases continued.

Brown confirmed he would make some funding available after the STC last week announced a revenue shortfall had left the club with no alternative but to introduce prizemoney cuts from July 1.

STC chief executive Michael Kenny had planned to cut minimum Saturday stakes from $70,000 per race to $65,000 and save $1 million a year rather than lop prizemoney from the club's flagship races such as the Golden Slipper.

This would have been the first time in decades a Sydney race club had reduced minimum prizemoney levels.

There were also fears the AJC was likely to follow suit and cut prizemoneym while the tough economic times had left a $5 million funding shortfall in country racing. NSW's five provincial clubs had already confirmed prizemoney levels would be maintained until next May.

Brown said Racing NSW wanted to do what it could to maintain income levels for participants and race prizemoney incentives for owners.

"There are two reasons NSW racing is in this predicament: the global economic crisis and the impact (leakage of betting turnover) to interstate corporate bookmakers," Brown added. "I know the shortfall (revenue) at STC and we (Racing NSW) can help them.

"The AJC is still doing their figures and unless their audit shows something out of left field, I am confident we can cover them. As for the country racing, Racing NSW will help to keep their minimum prizemoney at $9000 per race."