Strategic plan for Victoria to survive and recover

One of Victoria’s key harness racing participant bodies maintains there is a way out of the sport’s $66M crisis – but it will need decisive and supportive action from the Allan Government and Racing Minister Anthony Carbines.

Harness Racing Victoria this week outlined a “pathway to sustainability” – a plan to savage the State’s foundation VicBred futurity scheme and to further reduce prizemoney at the bread-and-butter end of the industry.

Both the Victorian Harness Racing Club (VHRC) and Harness Breeders Victoria (HBV) are “bitterly disappointed” at HRV’s solution to its financial crisis, both expressing alarm at the lack of consultation, and the fact that the cuts appear to have been hatched without long-term strategy.

The VHRC said it deeply empathized with its members and the broader harness racing community following the devastating announcement – but identified a strategic approach that, if implemented, would allow the industry to survive and recover.

“While the VHRC acknowledges that stakemoney cuts were, unfortunately, inevitable given the financial mess that HRV has got the industry into, we strongly condemn the lack of meaningful consultation by HRV with the very stakeholders most affected,” the VHRC said in a statement released tonight.

“At no stage did HRV engage with the VHRC, the kindred body that represents owners. Owners are critical to harness racing and make the decision to invest in and race standardbred horses. This lack of consultation and communication continues a troubling trend under the current regime at HRV.”

The VHRC said after reviewing the latest stakemoney cuts, it has serious concerns that many small owners and breeders, who form the backbone of the industry, may be forced to leave the sport.

“We believe the cuts disproportionately impact and seriously hurt the base of our industry, while the higher end remains less affected,” the VHRC said.

“Notably, the metropolitan minimum stake level of $15,000 has not been reduced whilst a large portion of the racing population in the NR49 and below classes face further cuts, racing for only $4,000 from January 1, 2025. The reduction in Vicbred bonuses will also further erode potential earnings to base level participants.”

Prior to October 2023, horses rated NR49 and below (half of the State’s current horse population) could race for $7,000 at most country meetings in an up to NR50 race. Since then, these races have largely been replaced with up to NR49 races offering just $4,500 in stakes. Under the HRV announcement, the stake on these races will further be reduced to $4,000 from 1 January – a reduction of 43% ($3,000).

“This is a severe cut for the large number of horses, owners and participants that race in these classes, making it increasingly difficult for many base level participants to sustain their involvement in the sport,” the VHRC said.

“Eroding the base of the industry will inevitably end up impacting participants higher up the pyramid into the future.  In addition, the loss of a large number of smaller owners and breeders could lead to a significant horse welfare issue across the industry.”

The VHRC said it had consistently urged HRV to address inefficiencies in its administration and reduce excessive expenditure over the past 16 months.

“HRV has been too slow to respond to changing market conditions and streamline its administrative structures. We maintain that there remains significant areas of inefficiency within HRV’s operations that need to be addressed. Cutting stake money should always be a last resort.”

Following on from the recent Harness Racing Industry Rally at Bendigo on August 25, attended by nearly 500 industry participants calling for leadership and governance reform, VHRC said it believed leadership changes at HRV were imminent.

“Furthermore, we are aware that HRV has received a substantial commercial offer to purchase 30 hectares of the 93-hectare Melton land parcel owned by the harness racing industry. If accepted, this offer would allow HRV to repay its outstanding government debts while retaining the remaining 60 hectares as a future fund for the industry.

“This represents a vital opportunity for the racing minister and the Government to support harness racing in this time of crisis. By allowing HRV to accept this commercial offer, the financial pressures on the industry would be eased, enabling HRV to resolve its debt issues and secure a future fund for harness racing. Projections indicate the larger 60-hectare parcel if retained by HRV and sold in four years’ time, could provide a sizeable return and potentially add an extra $3,000 on to the stake of each race conducted in Victoria.

“This would provide much-needed hope, stability and optimism to harness racing participants, many of whom are now questioning their future involvement in the sport after this week’s devastating cuts.”

From Harnesslink Media