Sad day for HRV – shockingly $66m in debt?

The current Harness Racing Victoria Board is as follows;

Chairman – Adam Kilgour

Deputy Chair – Catherine Ainsworth

Jane Brook

Judy Rothacker

The previous Chairman was Dale Monteith who recently finished up with HRV in March of this year. Dale was replaced by Dennis Bice. In fairness to Dennis he has only been on the Board for two months so the problems we have are not of his makings. The other five Members including Dale Monteith have been there for five years.

These five members need to resign immediately and an Administrator needs to be appointed!

The current Minister Of Racing is Anthony Carbines. He has been in the job for two years.

We, the Presidents of the Victorian Harness Racing Kindred Bodies, are issuing this urgent and united statement to express our profound concern over the future of Harness Racing in Victoria.

A meeting we requested last week with Harness Racing Victoria (HRV) has confirmed a series of devastating developments that threaten the very existence of our beloved Industry:

• HRV has incurred a catastrophic $24 million loss for the 2024 financial year, following heavy losses in 2022 and 2023.
• There will be additional cuts to stake money of between $10 million (22%) and $18 million (40%) over the next three years that will devastate participants and the sport.
• HRV’s financial mismanagement has rendered it virtually insolvent and unable to meet its debt obligations.
• It’s loan borrowings from government using our vacant land asset at Melton as collateral has all but forfeited a vital industry asset valued at $100M.
• HRV’s contract with SKY Channel is nearing its end, with a very real risk of Victorian harness racing being relegated to SKY2.

Since 2018, HRV has engaged in reckless spending, dramatically inflating administrative staff and employment costs. Despite this, the industry has seen little benefit, with HRV funneling vast sums into marketing, integrity, and costly consultancies. Instead, stake money was cut 12 months ago and low-stakes races have proliferated.

Over the past five years, HRV’s employment costs have ballooned by an astonishing 71%.

These disastrous strategies have failed, and now it is the hardworking participants in our industry who will bear the brunt of further drastic cuts to stake money and the provision of services. An anticipated reduction in stakes of about 33% over the next three years could mean:

• Current $4,500 races in the country reducing to $3,000.
• Current $6,000 races in the country reducing to $4,000.
• Current $15,000 races at Melton reducing to $10,000.

This represents a monumental failure of governance at HRV, compounded by its secrecy in keeping industry stakeholders in the dark. HRV has put the future prospects of harness racing in Victoria plus the livelihoods of around 5,000 industry workers in grave jeopardy. In so doing, HRV has also undermined the $670 million economic contribution provided by our industry to the State.

We find it inconceivable that the Board of Harness Racing Victoria could have been so irresponsible and failed so profoundly in their governance responsibilities that they may have effectively forfeited the industry’s $100 million vacant land asset at Melton.

The 93-hectare land parcel at Melton, purchased by the industry for $3 million two decades ago, was intended to be a future fund for harness racing; a valuable asset that would generate ongoing returns, much like the sale of Harold Park in Sydney. Experts now value the Melton land at over $100 million. Yet, due to HRV’s poor policy decisions and escalating debt, it is now doubtful that our industry will be able to capitalize on that shrewd investment in our future.

In 2020, HRV’s loan balance with the Government stood at $13.7 million. By 2023, this amount had surged to $42.3 million and with a projected $24 million loss in 2024, the loan balance is now expected to be in the region of $66 million.

We believe it is vital that Harness Racing retains equity in this land, or at least a portion of it, to assist the industry’s recovery through future revenue streams from its ongoing development and appreciation.

This abject failure in governance and financial bungling by the Board and senior management has worsened the situation year on year. And HRV’s glaring lack of transparency and reluctance to communicate with industry participants must be strongly condemned. At no time has HRV advised the Industry that the Melton land asset was under threat or could be lost. This is a betrayal of every individual in this State who depends on the harness racing industry for a livelihood.

We have no confidence in the Board of Harness Racing Victoria. It is irrational to expect the same individuals who led us into this crisis can now navigate us out of it.

We believe that Harness Racing in Victoria can recover from the confronting situation it currently faces. However, this requires urgent intervention from the Minister, including the appointment of a new, capable, and competent Board and ensuring Harness Racing retains an equity interest in the Melton land for a critical future revenue stream for the Industry.