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PARTICIPANTS BULLETIN

(Friday, 5 April 2024)

CHAIRMAN'S REPORT

Dear NSW Racing Industry participants,

I would firstly like to express my sincere condolences to the family, friends and colleagues of young jockey Stefano Cherchi who so sadly passed away this week after a race fall at Canberra on 20th March 2024.

Our thoughts and prayers go out to the Cherchi family and we know the entire racing family will support in any way we can at this tragic time.

Funding of the NSW Thoroughbred Racing Industry

In my first Participants Bulletin as Chair, I believe it is an appropriate time to provide an update on the current status of industry funding.

As a result of a series of initiatives from Racing NSW such as Race Fields, Wagering Tax Parity, Point of Consumption Tax and improved media rights agreements, more than $2 billion of additional funding has flowed directly to the NSW Thoroughbred Racing Industry in the last 10 years. This has enabled the following:

- Returns to owners and participants for this year will be over $410 million, more than doubling in a decade, to now be the highest of any state in Australia. This increase in prizemoney has ensured that NSW has the most competitive races and maximum field sizes, which is what has driven the recent growth in wagering revenues

- Funding for NSW Race Clubs has also increased significantly in this time due to Racing NSW securing multiple new revenue streams for Race Clubs in addition to the distributions from TAB. In total, these revenue streams set out below now see $52 million flowing through to NSW race clubs per annum, with the equivalent figure in 2014 being just $17 million:
> Sponsorship and oncourse exclusivity payments
> Digital wagering revenues
> International wagering revenues
> Media rights

- Racing NSW continues to ‘top-up’ Race Clubs where TAB distributions have declined in recent years, to ensure that Clubs do not experience any reduction in these revenues. A total of $17.5 million was paid to Clubs last financial year in ‘top-up’ payments, following $10 million of payments in FY22

- Increased prizemoney for aspirational races are also providing Race Clubs with opportunities to grow non wagering race day revenues through the increased profile and awareness of these race days. The Country and Provincial-Midway Championships, Big Dance Eligible races, Hunter, Gong and Coast race meetings and the Everest Carnival events have all provided Clubs with new and improved opportunities to generate non wagering revenues.

The collective impact of the above additional revenues from Racing NSW and the benefits of increased prizemoney are seeing Country and Provincial Race Clubs more profitable and financially stable than ever before:

- Collectively, the combined revenues of all NSW Race Clubs has increased by over $250 million annually over the past decade. This has substantially strengthened the financial performance of Race Clubs.

- The combined net current assets across all Provincial and Country Clubs during this same period has more than tripled, with combined net current assets at 30 June 2023 totalling $47 million, as compared to $17 million in 2014. This net current asset figure is a reflection of the solvency and financial health of an organisation and such an increase is encouraging to see as it shows clubs are profitable and well funded

The Australian Turf Club’s (‘ATC') operational restructure last financial year has allowed our Metropolitan club to return to profitability in FY23 and continue to improve its net asset position with a more efficient and productive operating model.

The ATC has also received significant additional funding from Racing NSW in recent years, including funding for the $46 million Winx stand which is now a major revenue generating asset. Further funding has been provided, such as for training infrastructure and cladding remediation works totalling a further $30 million.

Infrastructure funding

In February this year, Racing NSW announced a further $20 million infrastructure funding package for Country and Provincial Race Clubs across NSW. This funding will see improved racing and training facilities for participants with works including new stabling, training tracks, drainage improvements and new irrigation systems.

Over $150 million of Race Club has been invested over the past decade in Race Club infrastructure across the state, which is in addition to the $67 million of Government funded projects currently in progress. A further provision of $116 million has been set aside by Racing NSW for further investment in infrastructure and capital projects.

These works have included construction of new all weather Polytrack training surfaces at all Metropolitan and Provincial racecourses, as well as upgrades to racing and training tracks across the state.

Some of the recent completed and upcoming projects include:
- Replacement of sand training track at Bathurst Racecourse, completed in January 2024
- A fully reconstructed inner turf track at Kembla Grange is currently under construction, with these works designed to allow racing on the inner track in future. A major refurbishment of the course proper will then follow, similar to what was done at Newcastle
- A major redevelopment of the Gosford home turn to install a camber which will improve competitiveness of racing, with these works commencing after The Coast race meeting in May
- New sand training tracks at Dubbo, Albury and Grafton which will greatly improve the volume of horses that can be trained at these venues
- Construction of 80 stables in Goulburn, following the approval of members of the sale of the Racecourse land to Racing NSW

Equine Welfare

Equimillion
In partnership with Equestrian Australia, Racing NSW conducted the inaugural Equimillion competition at the Sydney International Equestrian Centre on the October 2023 long weekend.

With over $1 million of prizemoney on offer, this event attracted 310 retired Thoroughbred racehorses entering from right across NSW to compete in four equestrian disciplines - Show Horse, Show Jumping, Dressage and Eventing and over 36 individual classes.

One of the major successes of the inaugural competition was the extensive support provided by the NSW Thoroughbred Racing Industry through the sponsorship of competitors. Race clubs sponsored riders from their local regions, Thoroughbred studs sponsored riders competing on their progeny and many trainers sponsored riders competing on horses they formerly trained.

It was most encouraging to see this industry support and we look forward to Equimillion 2024 in October.

Equine Welfare Fund
Racing NSW has established a comprehensive Equine Welfare Program to ensure that all NSW Thoroughbreds are provided with a suitable new home when they retire. This program includes:

- The 1.5% share of prizemoney deducted to fund equine welfare initiatives, with Racing NSW being the first state to introduce such an initiative

- Local Rule 114 which is in place to ensure that NSW Thoroughbreds are cared for during and after their racing careers and specifically prohibits any Thoroughbred being sent to an abattoir or knackery upon their retirement from racing. Under the rule, owners are obliged to find a suitable new home for their thoroughbreds on retirement.

- Equine welfare veterinarians who, in conjunction with the stewards undertake retired horse audits to verify that owners are meeting their obligations under the Rules

- Direct retraining and rehoming operations on Racing NSW properties who care for those horses whose owners are unable to find them a suitable new home. Branded Team Thoroughbred NSW, this department retrains and rehomes the horses, as well as partnering with the Industry Training Department to work with Pony Club and other young riders to get them engaged with thoroughbreds and the racing industry for future employment.

- In addition to the annual finding of Equine Welfare initiatives from the 1.5% of prizemoney, Racing NSW has also spent over $34 million acquiring and developing properties for the exclusive use of the Equine Welfare department.

- An End of Life Welfare Program has been established to ensure that all NSW Thoroughbreds have access to humane euthanasia when a veterinarian determines that it is in their best interests on welfare or safety grounds

I will provide a further Participants Bulletin in the coming weeks with regards to the ATC’s proposed sale of Rosehill Gardens Racecourse and other matters.

Dr Saranne Cooke
Chairman Racing NSW