Chairman s Foreword. We are systematically working our way through these

Transcription

1 ANNUAL REPORT 2008

2 Contents Chairman s Foreword 3 New Independent RVL Board 4 New Wagering and Gaming Licence Structure 5 Racing to 2020 Open for Business 7 Integrity 8 Horse Welfare and Drug Testing 9 Equine Influenza Outbreak 10 Prize Money Plan 11 Jumps Racing Review and Plastic Running Rail 12 ThoroughTrack and Cranbourne Training Centre 13 Spring Racing Carnival An Economic Triumph 14 Awards and Events 15 Australian Racehorse of the Year Awards and Hall of Fame Inductions 16 Results of Victorian Group 1 Races 17 Champions Australian Racing Museum and Hall of Fame 18 Owners, Breeders and Super VOBIS 19 Education, Training and Welfare 20 OH&S Initiatives 21 Victorian Thoroughbred Racing Industry Structure 22 TABCORP Joint Venture Structure 23 Racing Victoria Limited Financial Performance 2007/08 24

3 Chairman s Foreword As detailed in this annual report, Racing Victoria Limited faced many challenges throughout the year past. The outbreak of equine influenza; the restructuring of the post 2012 wagering and gaming licences; integrity issues associated with the resignation of the former Chief Executive Officer and the commissioning of the Lewis inquiry; concerns about the safety of jumps racing; the enhancement of the Victorian race fields publication and use legislation; and the advancement of the industry s governance reforms were amongst the many serious and complex matters that demanded RVL s attention. We are systematically working our way through these challenges and with the recent release of the Racing to 2020 strategic vision, RVL is striving to lead the Victorian thoroughbred racing industry to a viable and growing future. This vision cannot be achieved without the cooperation and support of RVL s Members and we look forward to working with each of them in a positive and collaborative manner. A productive engagement with government, business partners, customers and the broader Victorian community is also vital for securing the industry s success. Des Gleeson, Victoria s long serving Chairman of Stewards, retired this year and I would like to place on record my appreciation for the unparalleled contribution Des has made to racing in our State. I would also like to thank my fellow Board directors and in particular David Karpin for his contribution as Chairman of the Licensing Sub-committee, our new Chief Executive Officer Rob Hines and the dedicated staff of RVL for their outstanding contribution to the industry over the past year and for their continuing effort in ensuring Victorian racing retains its hard earned status as one of the world s great racing jurisdictions. We are systematically working our way through these challenges and with the recent release of the Racing to 2020 strategic vision, RVL is striving to lead the Victorian thoroughbred racing industry to a viable and growing future. Michael Duffy Chairman 3

4 New Independent RVL Board Racing Victoria Limited s 2007 Annual General Meeting ushered in a new era of governance reform for the Victorian thoroughbred racing industry with the official handover to a new independent board and the appointment of Hon Michael Duffy as the new Chairman. As a result of the Thoroughbred Racing Industry Review completed in May 2007, seven positions on the 11 member RVL Board became vacant for appointment by a Special Nominations Committee. The appointments were announced on 15 November. Six new directors officially took their place on the RVL board along with Duffy, who was reappointed after serving as Deputy Chairman since RVL s inception in The new directors appointed were Pamela Catty, Robert Cooke, John Harvey, Peter McMahon, Naseema Sparks and Tim Warren. The seven joined the remaining appointed directors Prof. David Karpin, Mark Ewing and Barbara Saunders, whose terms had not expired. Professor David Karpin was appointed as Deputy Chairman. The board also determined the rotation of terms for directors, on the following basis: 3 years Michael Duffy, Peter McMahon, John Harvey 2 years Pamela Catty, Robert Cooke, David Karpin*, Barbara Saunders* 1 year Naseema Sparks, Tim Warren, Mark Ewing* * - continuing terms Robert Cooke resigned as a director of the company effective 14 July Mr Cooke s resignation arose from his appointment to a senior position in the United Kingdom. The RVL Board did not exercise its power to fill the casual vacancy given the relatively short period of time before this year s Annual General Meeting in December. NEW CHIEF EXECUTIVE APPOINTMENT Rob Hines was appointed the company s new Chief Executive Officer in July. Rob has wide experience internationally and in senior roles within Australia, including as the Chief Executive of AWA Limited and Jupiters Limited. After holding senior international executive positions at Unisys and playing a key role in Optus Vision s formative years in Australia, Mr Hines was responsible for restructuring AWA and returning the company to profitability after a decade of decline. Rob Hines was Managing Director of Queensland based wagering and gaming company Jupiters Limited from , negotiating a $1.7 billion merger agreement with TABCORP that saw shareholders realise a 38% increase in value in just two years. His most recent position has been as Chief Executive of VeCommerce UK (a subsidiary of the Australian based Salmat Group). VeCommerce develops speech recognition systems for many businesses including wagering operators around the globe such as UNITAB and TABCORP in Australia and Ladbrokes in the UK. 4

5 New Wagering and Gaming Licence Structure On 10 April 2008, the Victorian Government announced a new wagering and gaming licence structure to take effect in 2012 when the current licences expire. From the perspective of the Victorian Racing Industry, the key points within the announcement were: an exclusive 12 year wagering licence (with a Government option to extend the licence for 2 years for any transitional purposes) will be awarded, but due to the VRI s significant role in providing advice throughout the licence awarding process, the Government has decided it would not be appropriate for the VRI to directly or indirectly bid for the licence; as a result of the Government s decision to abolish gaming machine operator licences after 2012, the VRI will no longer receive its 25% share of gaming profits it presently receives under the joint venture agreement with TABCORP; the Government has committed to putting into place funding arrangements for the VRI that are no less favourable than the VRI s funding entitlements under the current joint venture with TABCORP (a commitment subsequently reflected in the Gambling Regulation Amendment (Licensing) Act 2008); the Government has a further policy objective of ensuring that future funding arrangements will secure a viable and growing racing industry (an objective also reflected in the amending legislation as one of the criteria upon which the new wagering licence is to be awarded). TURNOVER $M THOROUGHBRED WAGERING TURNOVER (TABCORP) 2,478 03/04 04/05 05/06 06/07 07/08 On-course Off-course Total 5

6 New Wagering and Gaming Licence Structure More recently, the Government has announced reduced wagering tax rates which are to apply from 2012 and which are intended to offset the VRI s loss of gaming revenue. The Government has given a commitment to legislate to provide for a review and adjustment process of the pari-mutuel tax rate in 2012 to account for the prevailing performance of the wagering and gaming market at that time. The announcement coincided with the Government s decision to allocate approximately $30 million of capital funding for regional racecourse infrastructure improvements over the next four years. The VRI is working closely with the Government in the course of preparing the partnership agreement between the VRI and the new licensee and the terms of the review and adjustment legislation. RACE FIELDS LEGISLATION In December 2007, amendments to the Victorian race fields legislation were passed by Parliament as part of the Gambling Legislation Amendment (Problem Gambling and Other Measures) Bill These provisions came into effect on 4 September 2008 and have significantly strengthened the process by which RVL grants approvals for wagering service providers to publish and use Victorian thoroughbred race fields. $M BOOKMAKER TURNOVER 451 Registrations of Interest for the wagering licence close in mid January 2009 with invitations to apply for the licence expected to be issued by mid 2009 ahead of the licence being awarded by the end of /04 04/05 05/06 06/07 07/08 On-course Off-course Total 6

7 Racing to 2020 Open for Business Apart from implementing a new constitution and independent board, another of the major recommendations of the Industry Review was for RVL to develop an industry strategic vision for the future. Racing To 2020 has now been released as a roadmap for the industry and a public statement aimed at establishing a vibrant and growing future that will not only maintain Victoria s leadership position in the Australian racing industry but also create an environment whereby racing can play a major role in the sports, entertainment and wagering marketplace on the international stage. To deliver this vision will require a collaborative approach involving all participants in the industry, along with government, business and the communities within which we operate. It is a vision by which RVL will live over the coming years. The vision lays out some exciting opportunities for the industry to move towards a less protectionist and more independently sustainable position, particularly in the context of the impending wagering relicense process. It includes some exciting initiatives that are already in the process of being implemented by clubs and others, reflecting that this is a vision for the industry, not just RVL. The vision requires a collective enthusiasm and united approach to the future and to that end we will need to work closely with each of our members and stakeholders to fine tune and implement it. We will provide regular updates to the industry on the progress made as we implement the various initiatives contained within this vision. To deliver this vision will require a collaborative approach involving all participants in the industry, along with government, business and the communities within which we operate. 7

8 Integrity The report on Integrity in the Victorian Racing Industry completed by Judge Gordon Lewis AM was released by the Minister for Racing Rob Hulls MP in August. RVL agrees with Judge Lewis determination that the existing internal integrity services and systems should remain a function of the controlling bodies of each of the three codes and the recommendation not to advance the alternative option of excising these functions to a separate body. Implementing the recommendations will be a complex task and RVL Chief Operating Officer Bernard Saundry has been appointed to the Government/VRI working party to examine the detail of the recommendations for implementation. The working party will lodge its final implementation plan with the Minister in December. INTEGRITY SERVICES RESTRUCTURE Following the announcement by long-serving Director of Integrity Services and Chairman of Stewards Des Gleeson of his intention to resign at the end of the season, a restructure was undertaken of Integrity Services to recognise the changing demands and requirements for the future. Two senior roles were created and the appointments of Dayle Brown and Terry Bailey to the two key integrity leadership roles with RVL were announced in June. Dayle Brown has an extensive background in racing, wagering, gaming, corporate risk and law and has been appointed to the new role of General Manger Integrity Services. Terry Bailey was promoted from Deputy Chairman of Stewards at RVL and has more than 25 years experience in the racing industry in Queensland, NSW and Victoria. He has been appointed to the position of Chairman of Stewards. Two senior roles were created and the appointments of Dayle Brown and Terry Bailey to the two key integrity leadership roles with RVL were announced in June. 8

9 Horse Welfare and Drug Testing RVL Stewards are cognisant of the current concerns surrounding whip use by jockeys and are taking the following action: Strictly enforcing the current rules of racing regarding whip use; Ensuring over use of the whip is policed strictly; and Penalising jockeys for any subsequent breach. The recommendations and draft rules that have flowed from the National Chairman of Stewards conference concerning whips have been reviewed and are supported by RVL Stewards. RVL Stewards are currently drafting new local rules which will provide them with wider powers to take samples and conduct research. This will provide RVL Stewards with greater intelligence and this approach will compliment the current sampling and analytical methods. RVL Stewards are also working more closely with law enforcement authorities, ensuring all investigative methods are used to track the supply and subsequent use of illegal substances. SAMPLE COLLECTION RATES SAMPLE CATEGORY NUMBER COLLECTED CHANGE ON 06/07 POSITIVES % Pre-race urine for post-race analysis % Pre-race blood for pre-race analysis (LCMS/TCO2) 4,993-2% Pre-race blood for post-race analysis (TCO2) 5,308 7% % Post-race urine/post-race blood for post-race analysis 5,422-6% % EPO 6,695 3% Elective testing 16-30% Out of competition testing (stables, trials, jump-outs) % Reinstatement/Test (AR.177A) 65-19% % Race morning TCO2 sampling in stables % Resting TCO2 sampling in stables 25-32% Other (feed samples, pharmaceuticals etc) 15-44% Source RVL RVL has commenced a research project analysing data collected relating to injuries sustained by racehorses and assessing any correlations associated with racing and training on synthetic surfaces such as the ThoroughTrack at Geelong, Bendigo, Seymour, Ballarat and Warrnambool and other artificial surfaces at training venues. 9

10 Equine Influenza Outbreak The outbreak of Equine Influenza from the Eastern Creek Quarantine station on 25 August 2007 was the worst seen in Australian Racing s 200 year history. The economic impact of the EI outbreak on the Victorian racing industry is estimated at more than $15 million and over $1 billion nationally. The week long Australia-wide shutdown of all race meetings brought the industry to a standstill. Racing Victoria played a lead role in co-ordinating the industry s response to the crisis, getting the horse movement bans lifted quickly and having racing back up and running within a week. It goes without saying that this was a highly volatile time for the entire industry and its effects will be felt for many years to come. Emergency vaccination of the thoroughbred racing population was introduced along with strict bio-security protocols, both of which played a vital role in ensuring Victoria remained free of the disease. During this period the industry suffered significant loss of wagering income Australia-wide due to the absence of NSW and Queensland racing until early December. A key factor in the quick return to racing after seven days in Victoria was the development five years earlier of Horse Alert Victoria, an operational plan which was tested with a simulation exercise called Operation Pegasus in Horse Alert Victoria and Operation Pegasus assisted greatly in the establishment of a containment line around Victoria, with horse movement halted and every trainer contacted in an extensive communications exercise. Racing resumed with an 11-race card at Caulfield on 1 September and the Spring Racing Carnival proceeded without horses from the infected areas and with biosecurity measures which caused only relatively minor inconveniences. A vaccination program was successfully initiated although RVL maintains its belief that vaccination alone is not the answer to maintaining an environment free of EI. All licensed persons, RVL staff and stakeholders and the Federal and State Governments can be proud of the way the industry responded to this dire circumstance but with every congratulation comes a caution that we must be ever-vigilant. All licensed persons, RVL staff and stakeholders and the Federal and State Governments can be proud of the way the industry responded to this dire circumstance but with every congratulation comes a caution that we must be ever-vigilant. 10

11 Prize Money Plan In July, the RVL Board approved a plan to accelerate returns to industry participants with a phased implementation over the next two years. Country minimums rise to $12,000 and to $15,000 for Thursdays and P1 Sundays; Metropolitan midweek/night races rise to $30,000 and Saturday/feature night races to $70,000. $M 400 THOROUGHBRED PRIZEMONEY (INCLUDING TROPHIES AND BONUSES) The plan represents an additional $23.6 million in prize money funding over the next two years which will be allocated for country and regular metropolitan races. This represents a 15% increase on current funding levels. Phase 1 of this plan commenced from 1 August 2008 and was directed to meet the industry s key objectives to increase prize money levels in country races and midweek/night metropolitan races. Key highlights of the increases applying from 1 August 2008 include: Country minimums rise from $9,000 to $10,500 and from $12,000 to $13,500 for Thursdays and P1 Sundays; Metropolitan midweek/night races minimums rise to $27,500. Phase 2 is based on RVL forecasts and is subject to the performance of the Joint Venture. The following increases will apply from 1 February 2009: Further increases will be assessed based upon wagering performance up to and including the 2009 Spring Racing Carnival and will also be directed by RVL to meet key industry objectives, particularly further lifting country race minimums. We have directed the recent efficiency savings announced in May to prize money and have paid special attention to bolstering funding for country racing, where nearly 60% of the additional money is being allocated to lift race minimums. While RVL is cognisant of the changing wagering landscape, this plan is an important indication of the Board s determination to ensure the continued growth of Victorian racing in both the metropolitan and country areas /04 04/05 05/06 06/07 07/08 Victoria Australia 11

12 Jumps Racing Review and Plastic Running Rail In July the RVL Board appointed former Judge of the County Court His Honour David Jones to conduct an independent review into the safety of Victorian jumps racing. The terms of reference for the review require: 1 an evaluation of the effectiveness of safety related recommendations implemented as a result of the 2002 and 2005 reports of the previous review panels particularly in respect to the safety record of the current jumps racing season; 2 an assessment of what is an acceptable level of risk in relation to the safety and welfare of both riders and horses participating in jumps racing; 3 a determination of whether it is practicable for jumps racing to operate within the acceptable level of risk and, if so, what measures should be implemented to achieve that outcome; 4 without limiting the types of measures, consideration should be given to the suitability of individual racing venues for jumps racing; the preparation of racing surfaces; the design and placement of obstacles; methods for controlling race speed; and the training and qualification of trainers, riders and horses; 5 an analysis of the scope and economic value of the existing jumps racing sector; and 6 an estimation of the economic implications of any recommendations arising from the review. The Board received Judge Jones report in mid November and is in the process of considering its response. PLASTIC RUNNING RAIL Racing Victoria installed a revolutionary new plastic running rail, initially on the inside of the course proper at the Cranbourne Training Centre, followed by Caulfield and Flemington racecourses in time for the 2008 Spring Racing Carnival. The rail was developed through extensive research and consultation in Victoria specifically for Australian racing conditions, taking into account the need for regular rail movements on turf tracks. The first step was to gain a greater understanding of safety issues associated with running rails, both the crash mechanisms at play during rail incidents and the options available to engineer a better safety system. The result is an entirely new running rail system that we believe is the safest in the world. The new system, which features no steel above the ground, is made of high UV resistant PVC. It is a continuous rail and includes an innovative jointing system that ensures the rail remains intact during impacts. A unique pivoting system enables the post to rotate clear out of the path of a falling jockey and yet remain securely attached to the rail such that the impact produces no debris to cause harm to following riders. The post is gently curved to minimise or eliminate contact between jockey and post in a typical over the rail crash scenario. Plans are underway to expand the rail s use across the state over the coming years. 12

13 ThoroughTrack and Cranbourne Training Centre The installation of the synthetic track ThoroughTrack at Geelong as the first venue to conduct racing on such a track in Victoria has proven to be a wise and valuable investment for the industry. The ThoroughTrack surface has provided a terrific back-up to be able to transfer meetings at short notice in wet weather conditions but, given the current widespread drought and restrictive water usage conditions affecting nearly the entire state, it has proven a valuable asset for racing in the warmer months also. It was originally considered the track would not be suitable for racing in hot weather, but it has performed well under extreme heat conditions as well as in the wet. Following consultation with local trainers, RVL announced the installation of a new synthetic track at the Cranbourne Training Complex, as part of the upgrade of the State s busiest thoroughbred training venue. CRANBOURNE TRAINING COMPLEX 2002/ / / / / /08 Victorian starters produced 6,798 6,344 6,265 6,635 6,867 7,043 Percentage of total Victorian starters 13.80% 13.40% 13.29% 14.07% 15.06% 15.49% Trainers registered at CTC Average starters produced per CTC trainer Total trials conducted (including flat, hurdle, steeple) Total starters trialed 2,864 3,179 3,191 3,185 3,930 2,822 Average starters per trial Percentage of trial starters trained outside CTC 81% 80% 82% 79% 80% 68% Source RVL & CTC. It was initially proposed that the new track would replace the existing outside turf track which is currently used for around 700 trials per season (flat and jumps). Consideration is also now being given to alternatives, including placing the track inside of the two existing grass tracks. Before proceeding to construction, reports from around the world are being analysed on the impacts of racing and training on synthetic tracks along with analysis of data pertaining to the Geelong installation. The future track layout at the Cranbourne Training Centre is being reviewed to take into account the feedback provided by trainers and riders using the facilities, industry needs and the potential to conduct future race meetings at the venue. 13

14 Spring Racing Carnival An Economic Triumph The 2007 Victorian Spring Racing Carnival was the second most successful in history despite the outbreak of Equine Influenza in New South Wales and Queensland just six weeks prior to its official start on 1 October. $M GROSS ECONOMIC IMPACT OF THE SPRING RACING CARNIVAL $541M ATTENDANCE AT VICTORIAN THOROUGHBRED RACE MEETINGS 1,575 The independent economic impact report prepared by IER found that the carnival generated $541 million in Gross Economic Benefit to the Victorian economy. This figure reveals just how crucial it was for the industry, the state and the economy that the carnival was able to be staged. The total Gross Economic Benefit was down 13.8% on 2006, the first time in seven years the carnival has shown an economic down turn, but was still the second highest contribution in that period The 80 race meetings conducted throughout Victoria during the 50 days of the Spring Racing Carnival still attracted more than 729,000 people. The amount spent on Corporate and Race Day packages grew for the fifth straight year. Corporate customers spent $65.7 million in 2007, an increase of more than $17 million Metropolitan area Regional area Total /04 04/05 05/06 06/07 07/08 Spring Racing Carnival attendance (Nine major metropolitan race days) Overall attendance for the year dropped to 1,574,604 from 1,604,726 the previous year, primarily as a result of lower Spring Racing Carnival attendance and the restrictions applied during the EI outbreak. Gross economic impact from spending by visitors to the Spring Racing Carnival Source: IER Consulting Attendance at all other meetings Total 14

15 Awards and Events Champion jockey Craig Williams won his third straight Scobie Breasley Medal presented by TABCORP, at the 2008 Victorian Thoroughbred Racing Awards night at Crown. Williams polled a total of 73 votes to defeat champion apprentice Sebastian Murphy (54) and six-time Scobie Breasley Medal winner Damien Oliver (44). Star galloper Weekend Hussler s meteoric rise was enhanced when he was named Eliza Park Stud Victorian Racehorse of the Year. In nine starts in Victoria in , Weekend Hussler won seven races including four at Group 1 level. He took The Age Caulfield Guineas (1600m) and Coolmore Stakes (1200m) in the spring before returning during the Melbourne Festival of Racing to capture the nation s premier sprint double, the Ultra Tune Oakleigh Plate (1100m) and Newmarket Handicap (1200m). The Fred Hoysted Medal for Victoria s most outstanding training performance was won by Mark Kavanagh. Kavanagh dominated the 2007 Spring Racing Carnival with four Group 1 victories, preparing star mare Devil Moon to V I C T O R I A N T H O R O U G H B R E D R A C I N G A W A R D S - P R O U D L Y S P O N S O R E D B Y T A B C O R P Scobie Breasley Medal presented by TABCORP CRAIG WILLIAMS Eliza Park Stud Victorian Racehorse of the Year Award WEEKEND HUSSLER Parnell s Dual Joint Care Program Fred Hoysted Medal MARK KAVANAGH Tommy Corrigan Medal STEVEN PATEMAN Direct Air Country Club of the Year Award YARRA VALLEY RACING No Fuss Solutions Country Horse of the Year Award DIAMONDS AT DAWN Thoroughbred Country Apprentice Award SEBASTIAN MURPHY VJA Outstanding Apprentice Award SEBASTIAN MURPHY ATA Trainer of Apprentice Award DARREN WEIR Mantra Hotels & Resorts Special Achievement Award LANCE HUEBNER Camp Australia Country Racing Event Award DUNKELD CUP DAY win the Turnbull Stakes (2000m), Divine Madonna to win the Toorak Handicap (1600m) Myer Classic (1600m) double and grand stayer Maldivian to win the Yalumba Stakes (2000m). Leading jumps jockey Steven Pateman capped another outstanding season with his second straight Tommy Corrigan Medal. Pateman took overall honours in the Victorian Jumps Jockey Premiership with 18 winners including the Crisp Steeplechase (3900m) at Flemington aboard Geeorb. Three feature Country Racing Victoria awards were also presented. Courageous country cups campaigner Diamonds At Dawn was named the No Fuss Solutions Country Horse of the Year, Yarra Valley Racing was named Direct Air Country Racing Club of the Year for the second straight year, and Dunkeld Cup Day won the Camp Australia Country Racing Event Award. 15

16 Australian Racehorse of the Year Awards and Hall of Fame Inductions Six-time Group 1 winner Weekend Hussler was named the Australian Racehorse of the Year presented by Sky Channel. In two amazing months in the spring of 2007, the Ross McDonald-trained superstar raced away with a Group 1 double The Age Caulfield Guineas (1600m) at Caulfield and the Coolmore Stakes (1200m) at Flemington. But it was earlier in the year that the world took notice of the Hussler, when he won four straight Group 1s the Ultra Tune Oakleigh Plate (1100m) and the Newmarket Handicap (1200m) in Melbourne, followed by The Randwick Guineas (1600m) and George Ryder Stakes (1500m) against Sydney s best weight-for-age stars. In a memorable night for connections, the Hussler was also crowned the New Zealand Thoroughbred Marketing Champion Three-Year-Old Colt/Gelding. The other highlight of the evening was the elevation of 80-year-old Cups King Bart Cummings to Legend status in the Australian Racing Hall of Fame. Cummings joined last year s inaugural Hall of Fame Legend Phar Lap. A U S T R A L I A N R A C E H O R S E O F T H E Y E A R A N D H A L L O F FA M E - P R O U D LY P R E S E N T E D B Y S K Y C H A N N E L Australian Racehorse of the Year presented by Sky Channel WEEKEND HUSSLER Yallambee Stud Champion 2YO SEBRING New Zealand Bloodstock Champion 3YO Filly HEAVENLY GLOW NZ Thoroughbred Marketing Champion 3YO Colt/Gelding WEEKEND HUSSLER Inglis Champion Sprinter APACHE CAT Mitty s Champion Middle Distance Performer EL SEGUNDO Eliza Park Stud Champion Stayer EFFICIENT IRT Champion International Performer TAKEOVER TARGET Crown Towers Champion Jumper SOME ARE BENT Carrazzo Consulting CPA s Champion Sire ENCOSTA DE LAGO Champion Group 1 Jockey COREY BROWN Champion Group 1 Trainer ROSS MCDONALD Cummings has re-written the record books in Australian racing since winning the first of his 12 Melbourne Cups with Light Fingers in Bart has also trained the Cup quinella five times and his Group 1 tally of winners now stands at 251. Seven racing icons were also officially inducted into the Australian Racing Hall of Fame. Champion mares of the past Tranquil Star and Wenona Girl were joined by associate Percy Miller, trainers Bob Hoysted and David Hayes and champion jockeys Frank Dempsey and Damien Oliver. 16

17 Results of Victorian Group 1 Races R E S U L T S O F V I C T O R I A N G R O U P 1 R A C E S F O R / 0 8 Race Distance Prizemoney Winner Jockey Trainer Cleanevent Manikato Stakes 1200 $400,000 Gold Edition Stathi Katsidis Ron Maund Dubai Duty Free Underwood Stakes 1800 $350,000 Rubiscent Danny Nikolic Mick Price Sir Rupert Clarke Stakes 1400 $350,000 Bon Hoffa Vlad Duric Wendy Kelly Turnbull Stakes 2000 $500,000 Devil Moon Corey Brown Mark Kavanagh The Age Caulfield Guineas 1600 $1,000,000 Weekend Hussler Brad Rawiller Ross McDonald Yalumba Stakes 2000 $400,000 Maldivian(NZ) Michael Rodd Mark Kavanagh Toorak Handicap 1600 $350,000 Divine Madonna Michael Rodd Mark Kavanagh Vinery Stud Thousand Guineas 1600 $500,000 Serious Speed Danny Nikolic Leon Macdonald BMW Caulfield Cup 2400 $2,500,000 Master O Reilly(NZ) Vlad Duric Danny O Brien Tattersall s Cox Plate 2040 $3,100,000 El Segundo(NZ) Luke Nolen Colin Little Myer Classic 1600 $500,000 Divine Madonna Michael Rodd Mark Kavanagh AAMI Victoria Derby 2500 $1,500,000 Kibbutz(NZ) Craig Williams David Hayes L OREAL Paris Mackinnon Stakes 2000 $750,000 Sirmione Peter Mertens Bart Cummings Emirates Melbourne Cup 3200 $5,000,000 Efficient(NZ) Michael Rodd John Sadler VRC Crown Oaks 2500 $750,000 Arapaho Miss Corey Brown Pat Carey The Age Classic 1200 $500,000 Miss Andretti Craig Newitt Lee Freedman Emirates Stakes 1610 $500,000 Tears I Cry Nikita Beriman Ciaron Maher Coolmore Lightning Stakes 1000 $500,000 Apache Cat Corey Brown Greg Eurell C.F. Orr Stakes 1400 $400,000 Shinzig Stephen Baster Mick Price Timbercorp Australia Stakes 1200 $400,000 Apache Cat Corey Brown Greg Eurell Oakleigh Plate 1100 $400,000 Weekend Hussler Brad Rawiller Ross McDonald Arrowfield Stud Blue Diamond Stakes 1200 $1,000,000 Reaan Dwayne Dunn David Hayes Futurity Stakes 1600 $700,000 Niconero Craig Williams David Hayes Newmarket Handicap 1200 $1,000,000 Weekend Hussler Brad Rawiller Ross McDonald Darley Australian Cup 2000 $1,000,000 Sirmione Peter Mertens Bart Cummings Cadbury Australian Guineas 1600 $750,000 Light Fantastic Craig Newitt Mick Price Source: RVL 17

18 Champions Australian Racing Museum and Hall of Fame Champions, the Australian Racing Museum (ARM) and Hall of Fame, will move from its current location at Federation Square to become part of the National Sports Museum (NSM) at the Melbourne Cricket Ground. Agreement in principle has been reached with the Melbourne Cricket Club for the ARM to be part of a proposed extension to the NSM, subject to the feasibility study for the refurbishment of the Great Southern Stand. The move will allow us to continue to protect, preserve and display racing s rich heritage and allow for the implementation of a cost-effective business model that will deliver savings in line with those recommended in the RVL Racing Industry Review. This will place racing amongst Australia s most popular sporting exhibitions, including the Australian Football Hall of Fame, Australian Cricket Hall of Fame, MCG, MCC Museum, Olympic Games and the Sport Australia Hall of Fame. The Australian Racing Museum has had over 400,000 visitors since opening, including in excess of 40,000 school children who have taken part in the museum s schools program. The Australian Racing Museum will remain at Federation Square until 2010 and the move will be a staged process starting with the inclusion of a display into the existing NSM gallery in March next year. The Australian Racing Museum has had over 400,000 visitors since opening, including in excess of 40,000 school children who have taken part in the museum s schools program. 18

19 Owners, Breeders and Super VOBIS Racing Victoria s Owners Gold Card continues to be a popular innovation with more than 18,000 owners now signed up to the card and receiving a range of benefits for owners who race horses in Victoria. The annual Owners & Breeders Awards night acknowledges feats of excellence by Victorian owned and bred horses in the 2007/2008 season. T H O R O U G H B R E D B R E E D E R S A W A R D S John Ingleton Memorial Champion Stallion Bel Esprit (Eliza Park) Stable Financial Champion Freshman Sire Statue of Liberty (Blue Gum Farm) Champion Victorian Broodmare Sire Last Tycoon (Blue Gum Farm) Gallagher Bassett Leading Victorian Breeder Makybe Racing and Breeding TBV Leading Small Breeder Paul Radford and Robyn Lawrie & Steven Dick and Partners Winning Edge Presentations Champion Broodmare Tennessee Blaze T R O A A W A R D S Metropolitan Owners of the Year Ms J Kewish, J Bath, Stoneworkz Racing Syn, Mrs S Rush, Mrs W Stewart, Mrs G O Donoghue, Mrs L O Connell, Mrs P Troedel, Ms J Stosius & Mrs M Moloney (Weekend Hussler) Bill Collins Media Excellence Award Patrick Bartley and Nick McKenzie (The Age) Country Owner of the Year Jonathon Munz (20 wins) William Inglis Outstanding Contribution to Ownership Fred Fox (former MVRC Racing Manager) S U P E R V O B I S A W A R D S Leading Trainer Leading Owner Leading Nominator Super VOBIS Horse of the Year Super VOBIS leading Bonus Earner Super VOBIS Country Horse of the Year Super VOBIS Country Trainer of the Year Super VOBIS Country Owner of the Year David Hayes Contract Racing Contract Racing Apache Cat Princess Gisella Dabero s Jag Darren Weir Kevin & Tanith O Brien Super VOBIS is the Victorian thoroughbred racing industry s owners and breeders incentive scheme. The principal purpose and objectives of VOBIS are to: encourage broodmare owners to breed mares to Victorian based stallions; increase and/or maintain consistent field sizes in Victorian races; increase prize money paid to owners in Victoria; encourage an increase in the quantity and quality of stallions standing in Victoria; encourage improved sales prices for Victorian bred horses; and encourage increased participation and investment in owning and breeding. During the 2007/08 season, Super VOBIS paid $4.9 million in bonuses from a total of $10.7 million in bonuses on offer. RVL is currently undertaking a detailed review of the scheme with the objective of re-invigorating its composition. This review will be conducted in consultation with the major stakeholder bodies involved in the scheme, TBV, TROA, ATA and the clubs. 19

20 Education, Training and Welfare RVL is working with the Australian Trainers Association (ATA) and the Australian Workers Union (AWU) to implement a wide ranging program to improve the health and welfare of trainers and stable employees, following a research study undertaken by Victoria University. The study was commissioned by RVL in response to a need to identify ways in which the racing industry can better support trainers and stable employees, enhance the overall quality of their day-to-day lives and attract and retain this core industry participant group. A number of initiatives are being implemented over the next three years including: the linking of competency standards to the licensing and registration system for stable employees; introduction of a dispute resolution and complaint service for trainers to reduce ownership disputes and aid in debt recovery; the introduction of education programs, on-line services and other resources to inform trainers and stable employees of their rights and responsibilities; work place training and practical tools to improve OH&S compliance in racing stables; the introduction of formal processes and education initiatives to reduce harassment and bullying in the work place; access to a professional counselling advisory service for all trainers, stable employees and their families; the establishment of a representative body for stablehands; the involvement of the ATA and AWU in disseminating up to date and relevant information relating to employment conditions and compliance; and improved support services to trainers including business advisory services. The RVL Board has endorsed the action plan and will commit over $500,000 to fund it. Our objective is to make the Victorian Racing Industry an employer of choice for people of all ages and backgrounds within three years. The RVL Board has endorsed the action plan and will commit over $500,000 to fund it. Our objective is to make the Victorian Racing Industry an employer of choice for people of all ages and backgrounds within three years. 20

21 OH&S Initiatives StableSafe is a risk management and OH&S improvement plan for the Victorian thoroughbred racing industry, with over $500,000 in State Government funding allocated to the industry to implement a number of initiatives designed to improve workplace safety across Victoria s 1178 thoroughbred racing stables. Features of the StableSafe project include: Appointment of two project officers; OH&S training targeted towards the stable sector; Development of OH&S programs; Provision of consistent and specialised OH&S advice; Education of stable sector employers/employees on OH&S; and Enhanced consultation throughout the stable sector. As part of StableSafe, WorkSafe Victoria has produced and distributed the booklet Horse Stables and Track Riding Safety to assist stable employers and employees to comply with their duties and obligations under the Occupational Health and Safety Act 2004 and associated regulations. Through the introduction of StableSafe, we expect to facilitate a sustainable change in behaviour and culture towards pro-active risk management within thoroughbred training stables. Another safety program being conducted, known as RaceSafe, has been designed to significantly improve the understanding and capabilities of racing clubs across the state in dealing with workplace safety. The program covers the implementation of safety systems, reporting, evaluation, practical exercises, advice and training. Through the introduction of StableSafe, we expect to facilitate a sustainable change in behaviour and culture towards pro-active risk management within thoroughbred training stables. 21

22 Victorian Thoroughbred Racing Industry Structure NEW CONSTITUTION On 21 June 2007 the Company announced that agreement had been reached with its four members (Country Racing Victoria Limited, Melbourne Racing Club, Moonee Valley Racing Club Inc and Victoria Racing Club Limited) with respect to changes to the Company s governance which required amendment to the Company s Constitution. As a consequence, a Special General Meeting was held on 24 September 2007 passing special resolutions to adopt a new Constitution subject to certification by the Minister for Racing. The principal changes to the Constitution provide that: the membership of the Company is expanded to include RVL s ten stakeholder bodies subject to those new members satisfying minimum qualification criteria before being eligible to vote; the Company s membership and associated voting rights are as follows Country Racing Victoria ten votes Melbourne Racing Club five votes Moonee Valley Racing Club five votes Victoria Racing Club five votes Thoroughbred Racehorse Owners Association three votes Thoroughbred Breeders Victoria two votes Australian Trainers Association two votes Victorian Jockeys Association one vote Australian Jumping Racing Association and Victorian Bookmakers Association one vote exercisable jointly Australian Services Union, Australian Workers Union, Liquor, Hospitality & Miscellaneous Workers Union and Media and Entertainment Arts Alliance one vote exercisable jointly. a vote of 66.66% is required to pass all resolutions at a general meeting other than a special resolution (which will continue to require a vote of 75%); a new independent board was appointed with effect from the close of the 2007 Annual General Meeting; and with effect from the 2008 Annual General Meeting directors be required to retire by rotation and be subject to appointment by direct election of the members in the event of any member nominating candidates in addition to candidates proposed by the Company s Board. The new Constitution came into operation on 29 November 2007, being the day upon which the Victorian Government Gazette published a certification by the Minister for Racing that the special resolution had not been disallowed by either House of the Victorian Parliament. 22

23 TABCORP Joint Venture Structure THOROUGHBRED RACING INDUSTRY REVENUE AND DISTRIBUTIONS The racing industry in Victoria has entered into joint venture and information supply agreements with the TABCORP Group of Companies. Under a Racing Industry Deed of Operations executed on 25 May 1994, the thoroughbred, harness and greyhound racing codes have determined arrangements between themselves including the allocation of joint venture profits and information supply fees. This income is received by the thoroughbred racing industry in the form of a racing program fee, a product supply fee, a marketing fee and the joint venture profit share. Following the adoption of the new Constitution the Company and the Clubs agreed to terminate the Members Agreement as it operated between them and a new Club Members Deed was entered into for the purpose of providing for certain arrangements in relation to the governance of the TABCORP Joint Venture, the making of grants to the Clubs and the re-licensing process. In relation to the Company making grants to the Clubs, the following principles apply: the Company will from time to time make grants to participants in the Victorian thoroughbred racing industry for the purpose of encouraging thoroughbred horse racing; in making grants, the Company will seek to: (i) adequately support the objectives of the Victorian thoroughbred racing industry; (ii) provide incentives for Club performance and achievements of industry objectives; and (iii) encourage and optimise participation in the ownership of thoroughbred race horses throughout Victoria by maximising returns to owners through statewide prize money strategies and other incentives. the Clubs further acknowledge that, consistent with the Constitution of the Company, no portion or amount of the income or assets of the Company may be distributed, paid or transferred directly or indirectly by way of dividend, bonus, or otherwise by way of profit to or amongst the Clubs in their capacity as Members. Following the adoption of the new Constitution the Company and the Clubs agreed to terminate the Members Agreement as it operated between them and a new Club Members Deed was entered into for the purpose of providing for certain arrangements in relation to the governance of the TABCORP Joint Venture, the making of grants to the Clubs and the re-licensing process. 23

24 Racing Victoria Limited Financial Performance 2007/08 NET PROFIT RVL s underlying result from general operational activities recorded a profit of $2.3 million for the 2007/08 year which, when consolidated with related entities/operations, remained at a reported profit of $2.3 million as follows: $M General Operations Profit 2.3 Plus: Share of RISA profits 0.3 Bookmaking Development Fund (BDF) 0.1 Less: Accident Insurance Fund Loss (0.4) Reported Consolidated Profit 2.3 REVENUE Revenue from operating and non-operating activities totalled $231.8 million in 2007/08, an increase of $0.4 million on the previous year. Racing program, product and marketing fees received from the joint venture operation with TABCORP totalled $143.4 million, a decrease of $0.5 million reflecting primarily the impact of EI on the joint venture operations. The joint venture profit share was $64.3 million, a decrease of $1.1 million. Revenue from sponsorship increased by $1.7 million compared to the previous year. Other operating revenue totalled $20.5 million, a decrease of $0.3 million from the year prior. Shareholder grants totalling $1 million were received during the year and have been disclosed in the accounts as non-operating revenue. EXPENSES Total RVL expenditure excluding distributions to shareholders amounted to $93.6 million in 2007/08 and consisted of $37.6 million in RVL operating expenditure and $56.0 million in industry-related expenditure. Operating expenditure increased by $0.5 million and industry expenditure increased by $5.4 million compared to last year. Grants to the Australian Racing Museum at Federation Square totalled $1.5 million, including $0.4 million in debt reduction funding. Training track development and maintenance funding totalled $12.7 million, an increase of $1.9 million, and reflects RVL s commitment to provide first class training facilities. Jockeys WorkCover expenses totalled $2.8 million in 2007/08, a decrease of $0.3 million compared to the previous year, primarily as a result of a decrease in the WorkCover premium for jockeys which resulted from reduced claims and improved claims management. Costs related to the direct management and control of the Equine Influenza outbreak totalled $0.7 million for RVL alone. The EI outbreak in Australia during August 2007 had a major financial impact on both revenue and expenditure for RVL and the industry, and totalled in excess of $11.0 million. EI revenue impacts totalled $8.3 million and net expenditure costs (after savings from returns to owners and grants to members) totalled $0.5 million. Estimated club income and expenditure impact was $3.3 million. 24

25 Racing Victoria Limited Financial Performance 2007/08 To assist member shareholders in the restructure of ThoroughVisioN, RVL has entered into a funding agreement with the member shareholders to borrow up to $2 million. The member shareholders have agreed to collectively guarantee a credit facility and fund the interest payments and RVL will be entitled to retain $1 million per annum out of future distributions for the purpose of discharging the facility. GRANTS TO MEMBERS (DISTRIBUTIONS) Grants to members (before prize money stabilisation) totalled $116.5 million, a decrease of $2.2 million compared to the prior year. After taking into account the write-back of the full prize money stabilisation amount of $2.9 million in 2007/08 to support the loss of revenue as a result of EI, grants to members totalled $136.3 million for the year. Grants to members were as follows: GRANTS GRANTS 2007/ /07 $ 000 $ 000 (i) Priority Grants: Region Services Thoroughbred Country Assistance Fund 8,978 9,043 Picnic racing Program variation payments 2,552 2,618 Capital funding 10,064 10,064 Other ,650 22,890 (ii) Prize money Grants: Country Racing Victoria 42,170 42,307 Melbourne Racing Club 30,546 31,055 Moonee Valley Racing Club 16,514 16,502 Victoria Racing Club 27,307 28, , ,721 CASHFLOW Cash at the end of the financial year totalled $9.6 million, an increase of $4.2 million compared to the previous year. Net cash used by normal operating activities was $7.4 million, an increase of $12.4 million, whilst net cash used in investing activities decreased by $12.3 million to $1.4 million, due to lower levels of investment in improvements for Plant and Equipment and Thoroughtrack facilities. Net cash used in financing activities increased by $5.7 million, reflecting lower proceeds from borrowings primarily related to joint venture and Thoroughtrack facilities developments of $5.5 million and higher proceeds in advance for sponsorship and product fees of $11.3 million. Download the full RVL 2008 Financial Report from the RVL Website. (iii) Prize money Stabilisation (2,904) 2,904 Total Grants to Members: 136, ,245 25