Perth Racing Cuts Prizemoney
- Tuesday, 01 February 2011 13:44
Perth Racing has announced a realignment of stake levels to ensure the Club meets it’s budgetary requirements for the 2010/2011 financial year. This measure is both prudent and necessary as a result of a set of circumstances which is placing the racing industry under considerable stress given the fact that the racing industry business model no longer adequately underpins industry funding requirements. “The continued growth in corporate bookmakers turnover which delivers only a fraction of the return to stakeholders provided by the offcourse TAB network will continue to erode stake levels as we know them today. To illustrate this point turnover in the Northern Territory alone now exceeds $5.5 billion," reflected Chairman of Perth Racing Ted van Heemst. In addition to this the recently enacted legislation to cater for the introduction of the racing bets levy tax has resulted in the Club no longer receiving its traditional income stream from bookmaker’s turnover tax. During the past decade income derived from on course bookmakers’ has reduced from $3.3 million to $0.5 million for the 2009/2010 year, which will be followed by a further significant reduction in the current trading year. The Club has also found it increasingly difficult to fund industry needs, particularly with respect to the provision of training facilities at Ascot which is costing the Club in excess of $1.9 million this year. Whilst RWWA recognise this burden only minimal financial support has been provided to this point of time. Spiralling government charges, compliance, insurance and other costs are also having a severe impact on the business as the magnitude of these increases are far outstripping any potential growth in income streams. The final nail in the coffin which made it imperative to reduce our stake levels has been the impact on our core business activities of a less than buoyant economy. For the first six months of the 2010/2011 racing year there has been a significant reduction in oncourse patronage and wagering which has had a negative impact on the income streams of all racing jurisdictions in the country of between 10 – 15%. From a Perth Racing perspective this has left us with no alternative but to amend our stake levels for the remainder of the racing year. Whilst these reductions are modest they represent a sign of things to come unless the key issues which underpin the broken business model are addressed. The amended stake levels will be effective from Wednesday 9th February, and it is important to recognise that whilst less than desirable Perth Racing is still returning in excess of 100% of its offcourse TAB distribution to stakeholders. Current Stakes Amended Stakes Midweek 0-64 $15 000 - Now $15 000
Prime Saturday $50 000 - Now $45 000
$40 000 - Now $40 000
Midweek 0-68 $17 500 - Now $17 000
Midweek 0-72 $20 000 - Now $19 000
