Alarm bells ringing as turnover bottoms out

TheDiva · August 2014

Before I post the article that was published in the West... the part in red is completely untrue.

I posted on another thread the paragraph from the policy document from RWWA which states that the clubs get "a direct contribution from on course bookmakers"

In fact, they always have, but it hasnt been completely transparent until about 18 months ago.

Stating that the club receives NOTHING from bookmakers IS NOT TRUE.

From the RWWA Thoroughbred Distribution Policy Document:

ON-COURSE BOOKMAKERS BETTING LEVY

The product fee payable by Bookmakers wagering on-course is rebated to Race Clubs each year.

This amount is based on the actual amount of levy paid by bookmakers for the previous full

financial year, ie the amount collected for fiscal year 2012-13 is paid to Clubs at the beginning of

2014-15.

Article below:

TheDiva · August 2014

Chairman Ted van Heemst believes Perth Racing faces one of the biggest challenges in its 150-year history to turn around an alarming 30 per cent drop in on-course tote turnover over the past three seasons.

PR is facing a $1.5 million operating loss for the 2013-14 season which ended last week.

Turnover has dropped from $7.2 million in 2011-12 to a forecast $5 million last season at Belmont Park and Ascot. At its peak of the boom turnover reached $8.4 million in 2007-08.

For the first time in the club's history there will be no income from on-course bookmakers.

Revenue from bookmakers has been on a steady decline for the past 14 years, falling from a peak of more than $3 million to $150,000 last year and nothing this season.

All betting turnover produced on course is free of State Government taxes. Any fall hits the bottom-line income of the club.

PR has sought out two of Australia's biggest consultancy firms, Deloitte Australia and Metrix Consulting, to improve its business strategies and marketing effectiveness.

Deloitte delivered its first report to the PR committee last Friday, revealing it was possible for the club to build a second track at Belmont and develop a "Morphettville-like" course and race all year on the Burswood peninsula.

Perth racing is currently split into two seasons of six months, with the summer racing at Ascot and winter at Belmont.

Establishing a single track would dramatically cut costs and a potential sale of Ascot would raise capital for the creation of a new training centre at either Jandakot or West Swan and for the club to turn Belmont into a state-of-the-art racing and entertainment centre.

The club needs State Government approval before it can begin any redevelopment of Ascot because under the current tenure the land is Crown Land.

Van Heemst admitted he was alarmed at the declining figures.

"We are in the middle of a process to see how we can reinvigorate turnover and patronage," van Heemst said.

"This is why we have employed these firms because our current business model is unsustainable.

"Everything needs to be put under the microscope, so it is too early to make any comment. I still see us as being in a fantastic position to expand into markets in Asia, South Africa and Europe."

"We are in the middle of a process to see how we can reinvigorate turnover and patronage."" *Ted van Heemst *

DamienWyer · August 2014

Nothing more than disinformation. Statements made on radio this week by Eddie Rigg in relation to who owns the land at Ascot have now been called into question by the above media release.

RIO · August 2014

I can not read this farking lieing piece of shits crap anyomre without popping a valve in the side of my chest..This is the lying self effacing crap that everyone in this industry has put up with for the past decade.

IMO he really should be put on a cable car at the top of San Franciso Bay and given a gentle push.. He is that stupid he wouldn't realise it wasn't attached to a cable until he was swimming with the fishes!!!

They had 40mil in the bank earning interest and still ran at an operating loss???? This is all their dumb way of justifying what they want to do...Selling more land to pay off for the inefficient running of this once great club.

Okay, just took a breathe, will stop there.. Fancy talking to the media about our clubs finances before discussing it with members..... Sorry stopped now..as with other threads on the operational dealings with this board I will refrain from commenting more.....

We need administrators put into this club for 12 months...no-one is going anywhere. Get some clear direction and a good investigation of why we lose money, then go forward. Once again this club is trying to be the driving force of the industry..They are JUST a sporting club!!!

AndrewCarter · August 2014

Maybe stop launching false and unnecessary legal actions against people as they have continually done in the past would be a good starting point for a saving a heap of money, legal fees tend to get very expensive especially with the legal people they use.

paraletic · August 2014

this has been a bad news week for PR!! Got to say, I wouldn't trust any of them to administer a chook raffle let alone a race club with 40M in the bank.

They are losing money and not following thru on their promises. Ummmm, hello, if they were employees they would be sacked already!!!!! And that is a fact!

SuperSnoop · August 2014

who did robert edwards call to confirm this fact that PR receive no income from bookmakers?

pretty average piece of journalism if he just quoted without checking.

AndrewCarter · August 2014

Par for the course for Edwards he's never been in any danger of letting inconsequential details like the facts get in the way of a good story or a disgusting, vile and utterly false tale.

youknowit · August 2014

As well as the Product Fee paid by bookmakers on course bookies also pay a stand fee. From 1st august 2013 to 31st dec 2013 it was $275 in the main ring and $150 per head outside the main ring.Since 1st january 2014 it has been $150 main ring and $100 out. And my understanding is that West Australia is the only state where bookies still pay stand fees.

theduke · August 2014

Perth Racing is embarrassing.

The spokesperson should be the CEO and/or Chairman on all matters. Why they let Eddie Rigg go onto Racing Radio with "workshopping" opinions was a grave error of judgment and has led to exacerbating this mess.

The fact remains that PR's financial situation is dire and at least that is on the table.

Perth Racing need to live within their means, just like any individual, family or business. Hopefully the first thing to go with the free wining and dining in the Committee Room, and maybe no travel and accommodation expenses for the visitors.

Although the above items may not amount to much in a dollars sense, they do give you a great insight into how the organisation tries to fool itself and others into thinking they are a superior entity.

thefalcon · August 2014

I wish Michael Chaney had a vested interest in racing...now that would be interesting.

DamienWyer · August 2014

Wouldn't it be a better start for The Minister For Racing to fulfill his job title ?

Radman · August 2014

Wasn't it obvious that racing in this state has been hemorrhaging for years?

I see PR's imminent demise as positive news. The current clowns will be forced to step aside and a solid long term business plan will necessarily be developed. No more fingers in the dyke.

Things may be uncomfortable for industry participants in the short term but in the words of Australia's greatest ever Prime Minister, 'this is the recession Perth Racing had to have'....

brady · August 2014

Radman said:
Wasn't it obvious that racing in this state has been hemorrhaging for years?

I see PR's imminent demise as positive news. The current clowns will be forced to step aside and a solid long term business plan will necessarily be developed. No more fingers in the dyke.

Things may be uncomfortable for industry participants in the short term but in the words of Australia's greatest ever Prime Minister, 'this is the recession Perth Racing had to have'....

Vote 1
RADMAN

IntoIt · August 2014

Wouldnt it be dreadful if that "solid long term business plan" included selling Ascot. Any thing could happen. At least its advanced beyond dress code, free entry,free racebooks etc.

Wonder what that deleted user must be thinking? He must blowing a gaskit, not being able to contibute

=))

thefalcon · August 2014

thank goodness for small mercies..... [-O<

Legless · August 2014

Into It said:
Wouldnt it be dreadful if that "solid long term business plan" included selling Ascot. Any thing could happen. At least its advanced beyond dress code, free entry,free racebooks etc.

Wonder what that deleted user must be thinking? He must blowing a gaskit, not being able to contibute
=))

and

of course =)) :-\"

mailman505 · August 2014

BEEN SAYING IT FOR YEARS U CHEAT THE PUNTERS FOR LONG ENOUGH THEY LEAVE IT SEMS THE PEOPLE WITH MINING DUST IN BRAIN DONT GET IT.Well oneday u will get it when no one wants to play any more the day is coming and fast.

Voodoo · August 2014

mailman505 said:
BEEN SAYING IT FOR YEARS U CHEAT THE PUNTERS FOR LONG ENOUGH THEY LEAVE IT SEMS THE PEOPLE WITH MINING DUST IN BRAIN DONT GET IT.Well oneday u will get it when no one wants to play any more the day is coming and fast.

NFI.......

cheers

mailman505 · August 2014

TELL TED I SAID HI DIPSHIT.

DustyCarpet · August 2014

Guys this just not a PR problem this is Australia wide, this whole industry needs a change. Randwick spent 180mil and they aren't getting anymore people to the races, I think it is what is been offered on race days that needs to change. 20/20 Cricket is a great example of what can be done to boost attendances but unfortunately the "sport of kings" cant or wont change because they don't want to or because SKY calls the shots for race scheduling. I wouldn't be surprised if Mr Riggs is our new chairman come the next AGM. I also think that a lot of people don't like change because it is how they have also done it, and that is everyone in this industry, if we don't change there will be nothing to enjoy and that include trots and dogs. I think it is about time the government maybe sold the TAB (1billion) and told all codes that they need to adapt or get nothing, which means consolidate, move, amalgamate etc. The past was great but if all codes keep going they way they have there will be nothing to watch,

Voodoo · August 2014

mailman505 said:
TELL TED I SAID HI DIPSHIT.

Again....NFI

cheers

DamienWyer · August 2014

DustyCarpet said:
Guys this just not a PR problem this is Australia wide, this whole industry needs a change. Randwick spent 180mil and they aren't getting anymore people to the races, I think it is what is been offered on race days that needs to change. 20/20 Cricket is a great example of what can be done to boost attendances but unfortunately the "sport of kings" cant or wont change because they don't want to or because SKY calls the shots for race scheduling. I wouldn't be surprised if Mr Riggs is our new chairman come the next AGM. I also think that a lot of people don't like change because it is how they have also done it, and that is everyone in this industry, if we don't change there will be nothing to enjoy and that include trots and dogs. I think it is about time the government maybe sold the TAB (1billion) and told all codes that they need to adapt or get nothing, which means consolidate, move, amalgamate etc. The past was great but if all codes keep going they way they have there will be nothing to watch,

Well one thing he can do is read a prepared script.

DustyCarpet · August 2014

I want to know how all of you think that it is viable for PR to have two facilities and make money when the industry is in decline. IMO it is time to have one facility and two tracks, which is Belmont. Yes there has been a few mistakes made but I do think that they had the best interest of the local industry in mind. I don't think PR is the only business in the world to have financial issues, but if they can consolidate they just might come through this a very profitable business and not collapse like a lot of other large corporations have. Maybe we should vote to change the committee and like Mr Riggs said, have half voted in and the other half industry experts like the AFL clubs do. We all need to contribute and forget the past and think of what we can do for the future, because as a owner I would love nothing better than to go to the races in a new facility with great views, great races and great prize money. Change, Change, Change

Legless · August 2014

100% with you @DustyCarpet

Have listened to the interview a few times now and agree with nearly everything Rigg suggests.

Maybe it was his way of starting a brainstorming session - if so it has certainly worked!

thefalcon · August 2014

I have a feeling dustycarpet is closely connected to PR.
'fess up DC....

Legless · August 2014

@the falcon - will end up in the same queue as the IT dude that had a decent go here [-X

DustyCarpet · August 2014

No just a passionate owner that is sick of the bullshit that is said from PR, members and everyone else. Maybe the state government should show some balls and tell all codes to relocate. consolidate and benefit from the sale of the TAB.

RIO · August 2014

don't log all PTT posters together....there are many who see merit in one track.,,but not too many who see merit in allowing PR to be solely responsible for making that decision....a lot more than the clubs interests to be considered...but being an owner i agree with your last sentence.

TheFunkster · August 2014

Why don't they engage a few people who are with the times, rather than 50+ people making antiquated decisions about the future

therealkramer · August 2014

Sounds to me like PR REALLY want this Belmont property development to go ahead and are willing to do anything to make it happen including selling Ascot. SA has one metro track and look how they are going X_X

G'day Punter!

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