Pain ahead for Victorian harness racing industry

After weeks of speculation and rumor, the reality of the financial position facing harness racing in Victoria has been laid bare in HRV’s severe cost-cutting announcement this week (August 2).

HRV’s budget scenario confirms $10 million in cuts – $6 million in operational efficiencies and $3.9 million in prizemoney reductions effective October 1.

And while social media channels have been white-hot with anger, cynicism and blame, headlined by calls for boycotts and sackings, as the dust settles the reality of the challenge ahead sinks in.

The stake money numbers will add up – although exactly how the “linear tiering” is structured (where horses race for more prizemoney as their national rating increases) is yet to be revealed. However it lands, there will be shared pain across an industry whose foundation businesses and operators already face huge challenges to remain sustainable.

Also yet to be revealed is the detail of the $6 million in operational efficiencies.

Undoubtedly, they will not be achieved simply by rationalising HRV operations from Moonee Ponds to the Melton headquarters (a popular theme on social media), through staff cuts or streamlining operations.

Six million is a lot of coin.

Finding those savings, and, more importantly, putting the industry on a sustainable platform for the future will involve some extremely painful industry restructure.  Again, the details have not been shared, but it almost certainly involves a rationalisation of tracks and Statewide operations at some level – aka track closures.

It’s a pivotal moment for the future of our industry.

But the overriding reality is that we are all in this together – our futures, whether as hobbyists or the State’s top commercial stables, as owners, trainers and drivers, staff, punters and fans, depends on the careful, astute and informed handling of the real financial challenges the industry faces now.

For most participants, the news, aside from a few weeks of speculation, has come as something of a “bolt out of the blue”, but the challenge now, for both the industry grassroots and the hierarchy, is to find a way forward.

Victorian Trainers’ and Drivers’ Association chairman Anthony Butt acknowledges any stakemoney cuts are “not a great situation”.

“But we understand the position that we are in and that cuts need to be made across the board not only prizemoney but in the cost of running the industry,” Butt said.

“We are disappointed that it’s got to this, but it is what it is – and unless we take steps to rectify it we will all be in some serious trouble.  I think we have got to have faith in (HRV CEO) Matt Isaacs – he’s walked into a storm, but I don’t have any criticisms about his communication with me over the past few weeks as they’ve been working on this,” he said.

“What is unfortunate is that our Association, as the representative body, has not had a chance to have a full committee meeting and to form a clear position since this information’s come to us.”

Butt said there were clearly questions to be asked about HRV administration over consecutive years, its transparency and its communication levels with industry.

“I’ve only recently taken over as VTDA president, but questions have got to be asked about what has been going on (at HRV) for the past four or five years, because until recently it’s been a pretty rosy picture that’s been painted. I think there’s probably got to be a good look at that.”

Butt said he hoped the current administration would be taking a more inclusive style in its industry engagement as it worked towards resolving the current challenges.

“What I have found is that as the word has got around people are accepting if they know the facts – we see the situation we are in, and the more you communicate and have two-way conversations, people are a lot more understanding that you perhaps might expect.

“We are in this together and we need to get out of it together, and since Matt has taken over he has been quite good with his communication and openness – I hope that continues.”

The Victorian Government has implemented “skills-based” boards to its Statutory Bodies (including HRV), in favor of the previous industry-based structure and Butt said the lack of industry representation at board level was a concern.

“Racing, and harness racing particularly, is such a unique sport and industry – it’s awfully hard for an outsider coming in, no matter their credentials, to get their heads around the industry and how it works.  It’s an unusual industry and we have to cater for the person with one horse and large stables and businesses who have 100 horses.  It’s a challenge.

“You definitely don’t want to go back the other way, but a balance would be helpful.  I know in other countries the kindred bodies are represented on the industry boards and I think that would be a positive step.”

He said the key challenge was harnessing the knowledge and passion within the industry to ensure a sustainable future.

“There are a lot of a great minds out there who are passionate about the industry and we need to find a way to give that a voice and to use that knowledge to ensure we do find a way out of this,” he said.

“I hope this can be the turning point of the industry and in a positive way.  We obviously can’t go on the way we have been going and hard decisions have to be made that will upset some people, but I hope there might be light at the end of the tunnel and some good might ultimately come out of it.”

by Terry Gange, for Harnesslink