0 1 0 2 – 2010
Contents
Chairman’s Foreword Chief Executive’s Report Race Fields Product Fees Productivity Commission Metropolitan Clubs Working Party Investment and Infrastructure Geelong Synthetic Track / Werribee International Horse Centre Wagering Performance Media Rights / Prize Money Racehorse Outplacement Program Night Racing Melbourne Festival of Racing Revamp Awards and Events Spring Racing Carnival Group Results Champions move to National Sports Museum Jumps Racing Financial Performance
– 2010
Chairman’s Foreword
The Victorian thoroughbred racing from interested parties and all stakeholders works and we look forward to the of this year’s AGM. I also formally welcome industry has enjoyed another are encouraged to contribute to this continuing support of the new Ross Dobinson, David Moodie and Graeme successful year. important review process. The findings are Government in completing further John who joined the Board during the expected to be reported in the first half of improvements including the installation of previous year and Michael Caveny who will The Victorian thoroughbred racing industry next year and will be fully considered in night racing lights at Cranbourne and the commence his tenure after the AGM. has enjoyed another successful year. setting future product fee policy. possible construction of a second synthetic May I also acknowledge the ongoing race track. I would like to particularly congratulate the The granting of the Victorian wagering support of my other colleagues on the clubs and participants for putting on an licence is another key plank in securing the We particularly welcome the new Board and the strong and effective outstanding Spring Racing Carnival in industry’s long term funding streams. We Government’s election policy commitment leadership of Chief Executive Officer Rob and the Carnival just past featuring the are engaging with the new Coalition to returning unclaimed dividends to the Hines and his dedicated management team th running of the Melbourne Cup. By Government to ensure that the “no less industry as well as on-course wagering tax and staff. any measure – be it attendances, tourist favourable” guarantee remains in place collections. These new funds will visitations, international participation, and we look forward to establishing a significantly bolster the current level of Michael Duffy media coverage or wagering revenue – the vibrant joint venture business with the assistance. Chairman Carnival is a massive event for the State and successful licensee. the cornerstone of the Victorian industry. The racing industry has traditionally There have been significant achievements enjoyed a productive partnership with the Complexities and challenges of the business in improving racecourse infrastructure over Victorian Government and we look forward side of racing have continued to occupy the the past year including the successful re- to continuing that relationship throughout industry’s administration across Australia opening of the Geelong synthetic track, the the new term. In that regard, I thank the notably due to the ongoing legal challenges return of racing to Werribee, the previous Government for its support of of race fields legislation and the ensuing establishment of the new international the industry. debate over the best product fee model. horse centre, major racing and training Finally, I wish to record my appreciation for track upgrades at Ballarat, Mornington and In relation to race fields product fees, the the contributions of Racing Victoria Cranbourne and the continuing roll-out of Board is in the process of commissioning an directors who departed during the previous plastic running rail. independent economic assessment of the year being Professor David Karpin, Pamela gross revenue and turnover models. The Capital grants from the Victorian Catty and John Harvey as well as Peter review team will be inviting submissions Government’s Regional Racing McMahon who will be retiring at the end Infrastructure Fund have been instrumental in achieving this extensive program of
– 2010
Chief Executive’s Report
Since the Racing to vision for Racing to looks at the current and the Victorian thoroughbred racing future trends shaping the business of industry was released in November racing and provides a set of shared , considerable progress has principles, priorities and actions focused on creating long-term sustainable growth been made towards achieving its and value. stated goals and objectives. Victorian racing is in a strong position and The Racing to vision remains the maintains its leadership in the racing same - to employ our collective resources industry in this country in terms of and forge partnerships with community, performance, innovation and popularity. business and government to ensure the Competition in the racing, entertainment continued growth, vitality and and wagering marketplace is strong. This sustainability of the Victorian competition is also healthy in ensuring that thoroughbred racing industry. we maintain a vibrant and popular sport of interest to the broadest possible audience. In the following pages I'm pleased to present the highlights of the / racing season.
Rob Hines Chief Executive Officer
Racing to looks at the current and future trends shaping the business of racing and provides a set of shared principles, priorities and actions focused on creating long-term sustainable growth and value.
– 2010
Race Fields Product Fees
During the year the Board The Board also resolved at that time to In October, the RVL Board accepted reaffirmed previous decisions to consider the policy applying for future management’s recommendation to extend adopt Race Fields Publication and periods during September . the arrangements with the Interstate Totes, Use Approval Fee policies based on Additionally, the Board agreed to schedule Corporate Bookmakers and Betfair on the further discussions on the matter once the basis of the % and % of gross revenue the wagering service provider’s decisions in the race fields related legal to August , the date of expiry of the gross revenue and also reaffirmed actions in NSW are delivered. current Victorian wagering licence. The the intention to review the fee purpose of this interim arrangement was to In November the full bench of the policy prior to the commencement provide certainty of income for RVL and Federal Court unanimously upheld appeals avoid litigation risk which was created by of the next approval period, by Racing NSW in its court cases against the legal challenges in NSW and taking into account the outcome Sportsbet and Betfair. The Court ruled that Sportsbet’s case against Harness Racing of current race fields related the NSW race fields legislation was valid and Victoria. These arrangements have been litigation. that Racing NSW could charge wagering completed with the Interstate Totes and operators .% of turnover for wagering on The Board had determined in April that Sportsbet but following the latest Federal NSW racing product and also ruled that a revised product fee policy be implemented Court decision have now been suspended Racing NSW could retain funds paid by for an interim period from August to indefinitely with the other Corporate corporate bookmakers since July . December on a similar basis to the Bookmakers and Betfair. previous policy of %, increasing to % The outcome is a good result for Racing in during the Spring Racing Carnival, of NSW and potentially for the Australian wagering service provider’s gross revenues. Racing Industry. It is important to note, This will also apply for the transitional fee however, that the Victorian race fields period from September . legislation is different to that in place in New South Wales. Our legislation specifically exempts in-state operators from the fee and is therefore more susceptible to challenge. Racing Victoria will be requesting the Victorian Government to amend the legislation to mirror NSW and thus provide Victoria with the same legal certainty.
– 2010
Productivity Commission
The Productivity Commission's role. More importantly, such a decline I There are also grounds for a harmonised It is Racing Victoria’s preferred position final report on gambling was would also adversely affect consumers of tax regime, based on a binding that a federal solution to race fields and released in June . The wagering and racing products. agreement among all jurisdictions. product fee payments should be adopted, whenever it is feasible and legally Commission’s recommendations, I The payment of product fees based on I There is a good case for retaining sustainable to do so. if adopted, would dramatically state and territory ‘race fields legislation’ totalisator exclusivity arrangements (i.e. transform the structure and is an attractive solution to the free rider the exclusive right to operate a dynamics of the Australian racing problem. However, it is not clear that the totalisator) and for permitting tote-odds instrument is legally robust, or will be betting. and wagering industry. used in such a way to promote efficient I Further research is required to determine The Principal Racing Authorities market outcomes. whether credit betting should be throughout Australia have been working I Improving the consultative process permitted in the wagering industry. In with the Australian Racing Board in through which racing bodies set product the interim, measures should be taken to adopting a united approach on these fees would strengthen the foundations of limit the growth of this practice. matters. The ARB made a submission to the racing industry funding model. Productivity Commission in response to the I There are grounds for permitting online draft report on behalf of the Australian I If it becomes apparent over time that the wagering operators to offer upfront racing industry. race fields legislation cannot facilitate a discounts to attract customers from fair and competitive wagering market, incumbent suppliers. But, regardless of The key points and recommendations made then a national funding model based on whether the practice is permitted or by the Commission include: federal legislation should be adopted. prohibited, governments should adopt a I Without mechanisms to prevent ‘free- This would best involve: consistent national approach on this issue. riding’, people could take bets on the I a single product fee paid by wagering I The arguments for retaining TAB retail outcome of races without having to make operators on a gross revenue basis; and exclusivity (i.e. the exclusive right to any payment to the racing industry. This provide off-course retail wagering poses a risk to the longer-run viability of I the creation of an independent national products) are not compelling. the racing industry and would have body, that would set and periodically detrimental consequences for the review the product fee, in consultation communities where racing plays a key with all relevant stakeholders. A key objective of this body would be to maximise the long-term interests of consumers.
– 2010
Metropolitan Clubs Working Party
In conjunction with the One of the key outcomes of this work will The cost of racing’s administration is being metropolitan clubs – the be the development of a Metropolitan addressed through a collective shared Melbourne Racing Club, Moonee Racecourse Training and Facilities plan. services working group. Changes have Valley Racing Club and the Victoria This will provide a rolling five year plan for already been implemented at various levels capital funding and maintenance of including IT, telecommunications, racing Racing Club – Racing Victoria has training facilities at Flemington and operations and finance, which are established a working party to Caulfield. delivering either cost savings, improved determine the future vision and outcomes or both. Each of the metropolitan clubs is well structure for metropolitan racing advanced in the development and It is critical that we collectively give all of in Victoria towards . implementation of some impressive capital these matters careful thought and The working party is in the process of development plans for their racecourses consideration. They are vitally important establishing a long term vision for and club-owned assets. It is vitally ingredients in ensuring that we have a metropolitan racing and its role in the important that each club has a clear vision growing and vibrant industry to encourage Victorian thoroughbred racing industry. for the future to ensure that the assets they on-going investment and participation in This will be an on-going project, have at their disposal are utilised to the the industry. dovetailing into the Racing to vision. maximum benefit of each of the club’s businesses, their members and the The process will address important matters Victorian racing industry. for the future including: In parallel with the activities of the I asset utilisation; metropolitan working party we will be I administrative efficiencies; looking at the development of a conceptual racing calendar that considers asset I training facilities in the metropolitan utilisation, event opportunities, wagering area; outcomes and participant impacts to I race programming; deliver the best possible metropolitan racing calendar for the future. I night racing; I synthetic racing; and I prize money structure;
– 2010
Investment and Infrastructure
Victoria’s country racetracks are METRO DEVELOPMENTS COUNTRY RENEWAL the focus of the largest capital MOONEE VALLEY NEW INFRASTRUCTURE spending program in Victorian I -tier grandstand with city views I Construction of new racing, community racing industry history. In co- and commercial facilities at Swan Hill, I New racetrack by . operation with CRV and the Yarra Valley, Horsham and Wodonga I Removal of harness & steeplechase Victorian Government, $ million I New racing facilities at Pakenham tracks. is being invested in regional by racecourse infrastructure over I Infield stabling complex. I Industry funded training track four years. CAULFIELD maintenance and capital investment Metropolitan club master plans are also in I Lakeside recreation precinct I Drought proofing and installation of various stages of development which will I New race day and events centre plastic running rails at the major country see a program of unprecedented venues around the state investment in infrastructure, world class I New community hub featuring residential racing facilities, new commercial accommodation and commercial developments and enhanced public spaces development. at Moonee Valley, Caulfield and Flemington FLEMINGTON over the next years. I Grandstands - construction and refurbishment I -person residential development I Railway station re-alignment I New hotel I New Visitor Information Centre
– 2010
Geelong Synthetic Track / Werribee International Horse Centre
The completion of the refurbished WERRIBEE INTERNATIONAL The initial feedback from the users of the synthetic track at Geelong has HORSE CENTRE facility have been very good with a vastly superior set of arrangements in place for a been a saviour for Victorian racing Completion of the $ million Werribee during the wettest winter in smooth transition through entry, International Horse Centre and the quarantine, training and racing. Melbourne for decades. With the reconstructed turf track are vitally volume of racing conducted on the important investments for the Racing will resume at Werribee in track, Racing Victoria is now in a internationalisation of Victoria’s racing December, providing another quality racing surface within close proximity of position to analyse the results and product. The record international the city and other regional training venues make a determination regarding contingent that took part in the Spring Racing Carnival was testament to in the west. the options for future synthetic the importance of this investment. track developments for training and racing. Following the departure of the horses that utilised the facility for their quarantine The overall performance of the track in its period in Victoria during the Spring, first full season was very good for the Racing Victoria will be conducting a scheduled meetings in terms of turnover, detailed post-implementation review to participation (field sizes) and feedback assess the performance of the venue, staff, from participants. Turnover increased by track and facilities. % on the corresponding turf meetings in the year prior. The scheduled meetings were well supported by leading trainers and jockeys. A detailed analysis will now be conducted of the options for a second synthetic racing track for Victorian racing and training in the first quarter of .
– 2010
Wagering Performance
Victorian wagering turnover racing. The net income from race fields THOROUGHBRED WAGERING BOOKMAKER TURNOVER conducted by the Joint Venture product fees from interstate wagering $M TURNOVER (TABCORP) $M with Tabcorp recorded its best ever operators for / was $.m (gross $.b return during / with .% revenues of $.m, less expenses of $.m), following the resolution of all growth recorded year-on-year to outstanding legal actions against Racing $.b. This outcome was achieved Victoria. Maintaining strong growth and $m in an increasingly competitive increased revenue streams for Victorian R national wagering market with a racing remains a top priority. E V
O significant contribution from the N
Racing Victoria is working closely with the R U expansion of fixed odds wagering Victorian Government, on commercial T into the retail network and from arrangements for the next wagering licence attracting premium customers. (which is to be issued for a year term commencing in August ). The This increasing competition, as well as the arrangements need to be no less than effects from the global financial crisis has favourable than those currently in place as contributed to a decline in the wagering well as support the future growth and turnover generated by Victorian / / / / / / / / / / viability of the industry. The Government bookmakers, to $m down from $m has indicated its intention to award the On-course Off-course On-course Phone Internet a % decline. We are continuing to assess licence during . the opportunities to ensure Victorian bookmakers remain viable and can continue to provide a competitive service to racing’s customers. Product fee arrangements with other wagering operators throughout Australia, including totalisators corporate bookmakers and betting exchanges, has ensured continued growth in punter investment on Victorian thoroughbred
– 2010
Media Rights / Prize Money
We are working closely with all clubs and COMPONENTS OF RETURNS TO OWNERS The future growth and vitality of $M Victorian thoroughbred racing our media partners in developing an $.M and wagering and the associated improved model for maximising the revenue streams is inextricably potential from the industry’s media assets into the future. linked to the vision that supports the racing. Without good PRIZE MONEY quality race vision, punters Total prize money paid to owners, simply won’t bet. trainers and jockeys in Victoria for the It is Racing Victoria’s intention to continue / season totalled $. million. to pursue all avenues to ensure the This was an increase of $. million or industry’s racing vision is highly valued and .% on the previous year. presented in the most customer friendly Total returns to owners increased by $. way that will encourage continued million year-on-year to $. million for investment by customers. the season including increases for jockey To do this it is essential that the riding fees of $. million and jockeys arrangements relating to how, where and Workcover payments of $. million. when Victoria’s races are broadcast and viewed is managed in a more collaborative / / / / / manner than is currently the case. Prize money and trophies Super VOBIS Riding fees Starters’ subsidies Jockeys’ WorkCover Media rights arrangements have been concluded with Country Racing Victoria and Moonee Valley Racing Club during the year, which will provide improved opportunities to better package Victorian racing for delivery to domestic and international audiences.
– 2010
Racehorse Outplacement Program
Racing Victoria has joined with completed and a sale price has been The program has horses under Cybehorse in an exciting two-year agreed on by a new owner the funds can management with a number of prospects partnership to launch an important be allocated in the following order: in negotiation. horse welfare initiative, the I Reimburse the outplacement service Cyberhorse has created the Racehorse Racehorse Outplacement Program. provider’s costs Outplacement alliance (ROA) which includes sponsors such as Horseland, The Racehorse Outplacement Program has I Refund the owner’s outplacement bond been established to offer trainers and Outplacement Consultants, racehorse owners a systematic approach for I Balance shared : between the trainers and strategic partners, Equestrian retraining and re-homing thoroughbred outplacement service provider and the Victoria and Mistable. Each of the alliance racehorses upon the completion of their owner members provides in kind support packages to promote the benefits of the racing career. A racehorse’s career on the racetrack is program. Once a trainer or owner has expressed relatively short in comparison to its life interest in outplacing their retired span. However, thoroughbreds are a highly Racing Victoria is committed to horse racehorse the Racehorse Outplacement sought after breed when it comes to welfare and wants to ensure the re-homing Program will organise for an accredited equestrian sports because of their agility process for retired racehorses is as easy and outplacement service provider to assess the and intelligence, making retired racehorses as cost effective as possible for trainers and horse’s suitability for retraining, conduct a the ideal candidates for a spot in the owners. All owners and trainers are retraining program and match the horse dressage arena, pony club, polo field or encouraged to give the program every with a new owner. many other equine pursuits. consideration as an option for their horses when the racing days are over. Once the racehorse has been assessed by The Racehorse Outplacement Program aims the outplacement service provider and the to bridge the communication gap between horse is deemed suitable for outplacement, the racing industry and wider equestrian the owner will lodge a bond agreed on by community to ultimately provide both parties to begin the retraining racehorses with a successful future well process. Once the retraining has been beyond their days on the track are complete.
– 2010
Night Racing
Night racing at Moonee Valley is With additional meetings now scheduled in now being positioned as a Sydney at Canterbury on Friday nights, the premium product across a number opportunity for quality thoroughbred of major night meetings. Group racing to be showcased during this important period is significant. racing is now being run under lights at Moonee Valley with a The Cranbourne Turf Club has submitted a number of other initiatives being planning application for the installation of lights for night racing. If successful it is implemented in conjunction with anticipated night racing can be scheduled the club aimed at growing the at Cranbourne from the first quarter interest and participation in the of . night racing product. This investment will allow up to Friday This is a key strategy not only for achieving night meetings to be run on a weekly basis growth in the domestic market but during the daylight savings period, increasingly in international markets, providing important continuity of racing including Asia. on these nights for owners, trainers and punters. Eighteen night meetings will be run at Moonee Valley between September and April in the / year. Each night racing meeting contributes approximately $ million in incremental wagering turnover, making night racing a very important contributor.
Eighteen night meetings will be run at Moonee Valley between September and April in the / year. Each night racing meeting contributes approximately $ million in incremental wagering turnover, making night racing a very important contributor.
– 2010
Melbourne Festival of Racing Revamp
Racing Victoria has worked The Clubs and Racing Victoria will join I The announcement of a $ million bonus We are keen for the wider community to together with the metropolitan forces in a co-operative marketing for any horse that can win all three races embrace the fact that there is more than clubs and CRV to revamp the race campaign to build public interest, during the Blue Diamond Stakes series at just one amazing carnival of feature racing program and the collective attendance, media coverage and wagering Caulfield as part of a new sponsorship in Victoria. The changes to the race that will highlight the Festival's key with Patinack Farm; program provide improved structure for marketing of the Melbourne attributes. horses to progress to primary targets I A series of new initiatives within the Festival of Racing to reinvigorate throughout the Melbourne Festival of Some of the important enhancements for Moonee Valley Night Racing program the interest, attendance and Racing and beyond that to the Sydney the Melbourne Festival of Racing including the Second Challenge and wagering during the late summer Autumn Carnival and Adelaide Cup include: Night Racing Rewards Program for Carnival. and early autumn. trainers and jockeys; I A significantly improved Blue Diamond Following a detailed review of the Festival's Stakes Day program at Caulfield on I Upgrades to Listed status for two feature performance over the past three years, a February which will now include three races taking the total number of Group set of revised race dates and a revamped Group races, three Group s and a and Listed races during the Melbourne program has been developed that provides Group ; Festival of Racing to for better race sequencing and more attractive feature race days, each with their I Feature race prize money increases I Five premier Country Cup days will own unique attributes. headlined by a boost of $, for the complement the metropolitan action opening leg of the Global Sprint during the Melbourne Festival of Racing The Melbourne Festival of Racing will Challenge, the $, Group and provide racegoers with an commence on Saturday February at Lightning Stakes (m), at Flemington opportunity to enjoy a great day out Caulfield and conclude at Moonee Valley and a % increase in prize money for within easy reach of Melbourne; and on Friday night March. It will include the Group Alister Clark Stakes (m) I The return of the Listed Werribee Cup on world-class racing, featuring five at Moonee Valley which will now be run Friday afternoon March and consecutive Saturdays of Group races and for $,; its culmination under lights at Moonee strengthening of the Mornington Cup Valley with the running of the Group Day program on Wednesday February. William Reid Stakes.
– 2010
Awards and Events
The formidable combination of with runaway wins in the two titles also. 1 2 3 / Peter Moody and Luke Nolen Nolen scored his first state jockeys title with Peter G Moody ½ ½ $,, . wins from fellow Caulfield jockey Craig gained appropriate reward for Darren Weir ½ ½ $,, . Newitt on . their outstanding efforts this Mick Price ½ $,, . season winning both the state and He was a comfortable wins clear of his Michael Kent ½ $,, . metropolitan trainer and jockeys nearest rivals Glen Boss and Jason Maskiell premierships for the first time. in the metropolitan premiership who both Robert Smerdon $,, . finished on winners for the year. Since moving from Queensland to set up a Maskiell was the leading apprentice jockey LEADING TRAINERS (METRO) 1 2 3 / permanent base in Victoria, Moody had in the state for the season with wins in Peter G Moody ½ $,, . built a reputation as a no nonsense high total. quality trainer and now has achieved the Robert Smerdon $,, . ultimate accolade in taking out the state Mick Price ½ $,, . GLEN BOSS WINS SCOBIE premiership with winners for the David Hayes $,, . season with a sizeable win gap to his BREASLEY MEDAL Mark Kavanagh ½ $,, . nearest rival Ballarat trainer Darren Weir Three-time Melbourne Cup-winning jockey on . Glen Boss won his first Scobie Breasley It was a similar story in the Metropolitan Medal at the Victorian Thoroughbred aboard brilliant three-year-old So You Think commitments, held on for third place on trainers premiership with Moody the Racing Awards presented by Tabcorp at in the Tatts Cox Plate at Moonee Valley at votes, with apprentice Jason Maskiell filling runaway winner on wins, clear of Crown’s Palladium in August. just his fifth career start. fourth on and Dwayne Dunn rounding out the top five on votes. fellow Caulfield trainers Robert Smerdon on In a dramatic vote count, the former Boss scored eight votes from the stewards and Mick Price on . Moody’s strike Queensland and NSW-based jockey who in July to finish on , five votes clear of Another racing icon, master trainer Bart rate of just over % winners to runners has now made Victoria his home, stormed four-time Medallist Craig Williams who Cummings, was to the fore claiming two of from his starters state-wide and nearly past six-time winner Damien Oliver in the amassed seven votes over the final four the night's coveted awards. % in the city was also testament to his final month of the season to claim meetings of the season after returning Cummings won a record third Fred Hoysted consistency with such a big stable. Victorian racing's highest honour for from a two-month riding stint in Japan. jockeys in his first full season since here. Medal presented by Sport for the most Moody’s number one stable rider Luke Oliver, who failed to secure a vote in the outstanding training performance of the Nolen showed why his trainer has showed The Medal victory capped a memorable final four months of the season due to season courtesy of his dominant some much faith in him over recent years season which included an historic victory interstate and international riding Spring Racing Carnival.
– 2010
Awards and Events
In the space of four weeks during October Like the Scobie Breasley Medal, the Tommy 1 2 3 / and November last year, -year-old Corrigan Medal presented by Luke Nolen ½ ½ $,, . Cummings won four Group races – BMW Thoroughbred Racing Productions Caulfield Cup (Viewed), Tatts Cox Plate (So produced a thrilling finish. Craig Newitt ½ $,, . You Think), Crown Oaks (Faint Perfume) Brad Rawiller ½ $,, . Awarded to the most outstanding jumps and David Jones Toorak Handicap (Allez jockey of the season in Victoria and South Chris Symons ½ ½½ $,, . Wonder). Australia, the Medal went the way of Linda Meech ½ ½ $,, . His achievements not only struck accord premier rider Steve Pateman for the third with the Hoysted voting panel but with the time in four years. LEADING JOCKEYS (METRO) 1 2 3 / public who selected his performance as the In the night's other awards, Peter Moody Luke Nolen ½ $,, . TVN Most Memorable Moment of the was recognised for his victory in the Victorian racing season. Glen Boss ½ $,, . Michelton Wines Metropolitan Trainers Jason Maskiell ½ $,, . There were no surprises in the race to Premiership ( wins), while stable jockey secure the title of Staging Connections Luke Nolen was acknowledged as the Craig Williams ½ $,, . Victorian Racehorse of the Year with winner of the BPA Print Group Damien Oliver ½ ½ ½½ $,, . Typhoon Tracy a popular winner. Metropolitan Jockeys Premiership ( wins). The Peter Moody-trained mare raced seven LEADING APPRENTICE (VIC) 1 2 3 / times in her home state during the - Linda Meech was awarded the inaugural Jason Maskiell ½ $,, . season for four wins including Group Neville Wilson Medal presented by Crown Jacob Rule ½ $, . triumphs in the Myer Classic (m), Promenade as the state's leading country Jake Noonan $,, . C.F.Orr Stakes (m) and Rokk Ebony jockey with wins, whilst Darren Weir Futurity Stakes (m). was the recipient of the George Hanlon Jack Hill ½ ½ $,, . Trophy presented by Crown Metropol for Nathan Rose $,, . Victoria's media lodged their votes for the training the most winners () in country Racehorse of the Year award on a three- Victoria during the season. two-one basis. Following the collation of votes Typhoon Tracy amassed , with Starspangledbanner (), So You Think (), Shocking () and Black And Bent () rounding out the top five.
– 2010
Awards and Events
The future stars of the sport were also acknowledged in the awards which cover VICTORIAN THOROUGHBRED RACING AWARDS - PROUDLY SPONSORED BY TABCORP recognised with Jason Maskiell taking all industries nationwide. The -year-old is The Andrew Gilbert Sports Science and Fitness Award sponsored home the Optus Business Metropolitan currently enrolled in the Certificate IV in by Exercise Research Australia ASHLEY THOMPSON Apprentice Award and Jacob Rule claiming Racing (Jockey) at the Racing Victoria Marianne Gilchrist Excellence in Training Award sponsored Optus COURTNEY PACE the Commotion Creative Country Apprentice Training Centre. Common Creative Country Apprentice Award JACOB RULE Apprentice Award. This award provides tremendous Optus Business Metropolitan Apprentice Award JASON MASKIELL The VRC Bert Wolfe Award was presented encouragement for young people to VRC Bert Wolfe (Media) Award TIM HABEL to veteran Herald Sun journalist Tim Habel undertake school-based apprenticeships for his outstanding contribution to the and continue their learning while Tommy Corrigan Medal presented by TRP STEVE PATEMAN sport. advancing a career in racing. Noonan, was Staging Connections Victorian Racehorse of the Year TYPHOON TRACY first licensed to ride in March and is George Hanlon Trophy presented by Crown Metropol NATIONAL HONOUR FOR steadily making a rise up the ranks of our (leading country trainer) DARREN WEIR talented apprentice riders. JAKE NOONAN Mitchelton Wines Metropolitan Trainer Premiership Award PETER MOODY The Victorian thoroughbred racing industry Jake has represented the Victorian racing Fred Hoysted Medal presented by Sport BART CUMMINGS proudly celebrated the success of industry, his family and himself with TVN Most Memorable Moment Award BART CUMMINGS apprentice jockey Jake Noonan at the distinction since commencing his Neville Wilson Medal presented by Crown Promenade Australian Training Awards. apprenticeship with Racing Victoria and we (leading country jockey) LINDA MEECH congratulate him on this wonderful Noonan was awarded the title of Australian achievement. BPA Print Group Metropolitan Jockey Premiership Award LUKE NOLEN School-based Apprentice of the Year at a Scobie Breasley Medal presented by Tabcorp GLEN BOSS function in Canberra hosted by the now Eighteen jockeys are currently enrolled at Prime Minister Hon. Julia Gillard. The the Racing Victoria Apprentice Training Australian Training Awards are the peak Centre with each educated on diet and national awards for vocational education exercise, financial management, and training, recognising innovation and communication, presentation and career excellence in the training sector. transition. Noonan was a Year student at Padua College in Mornington and is the first member of the racing industry to be
– 2010
Spring Racing Carnival
Racing Victoria again 5 GROSS ECONOMIC IMPACT OF THE SPRING RACING CARNIVAL commissioned IER Pty Ltd to $M 700 conduct an economic evaluation of 2009 2008 % % Total SCR Attendance , , (-.%) +.% the Spring Racing Carnival. 600 Non Local Attendees at the SRC , , +.% +.% This evaluation follows on from $M studies that have been conducted Total Direct Spending $. mil $. mil (-.%) +.% 500 each year since . As such, IER Fashion Spending $. mil $. mil +.% +.% has been able to provide detailed Net Wagering Revenue $. mil $. mil (-.%) +.% 400 comparisons of the economic Value Added Contribution to GSP $. mil $. mil +.% (-.%) performance of the Carnival over 300 Gross Economic Benefit (Output) $. mil $. mil (-.%) +.% many years. 200 The total Gross Economic Benefit (Output) The ability of the Spring Racing Carnival to The total direct spending generated by all for the state of Victoria attributed to the attract tourists to Victoria has been a major attendees at the SRC was $. million. In 100 Carnival was $. million, driver of the generation of economic , the SRC was responsible for adding maintaining its position as a highly benefits for Victoria. In , interstate and $ million in value added to Victoria’s 0 valuable contributor to the state and international attendances recorded their Gross State Product, This represented an national economy. second consecutive increase since , increase of .%. In part this was a Metropolitan area Regional area Total Attendance at race meetings conducted moving back towards , attendances. reflection of the Carnival’s ability to Gross economic impact from spending by visitors to the Spring Racing Carnival increase its attraction of interstate and over the days of the Spring Racing THE KEY FINDINGS Source: IER Consulting Carnival was ,. This represented a international visitors. The activities of the The economic benefits of the SRC arise fall of .% on the attendance at the Spring Racing Carnival continue to sustain from expenditures generated by people Carnival. Attendances at metropolitan race more than full time equivalent jobs attending the Carnival. The calculation of meetings were lower across the board in (FTE) in Victoria, with much of this direct expenditure identifies not only total , however country racing recorded a employment stimulated outside of race spending by all attendees at the SRC, but slight increase. tracks as a result of the increased demand also visitor spending by those whose visit on the retail, hospitality and to Victoria was motivated by the SRC. accommodation sectors.
– 2010
Group Results
1 2009/10 Race Track Age Sex Conditions Distance Prizemoney Winner Jockey Trainer Rokk Ebony Underwood Stakes Caulfield yo+ Open WFA $, Heart of Dreams Craig Newitt Mick Price Sir Rupert Clarke Stakes Caulfield Open Open Hcp $, Turffontein Glen Boss Anthony Cummings Sportingbet Manikato Stakes Moonee Valley Open Open WFA $, Danleigh Kerrin McEvoy Chris Waller Turnbull Stakes Flemington yo+ Open SWP $, Efficient(NZ) Nicholas Hall John Sadler The Age Caulfield Guineas Caulfield yo Open SW $,, Starspangledbanner Danny Nikolic Leon Corstens Yalumba Stakes Caulfield yo+ Open WFA $, Whobegotyou Damien Oliver Mark Kavanagh David Jones Toorak Handicap Caulfield Open Open Hcp $, Allez Wonder Michelle Payne Bart Cummings Schweppes Thousand Guineas Caulfield yo F SW $, Irish Lights Glen Boss David Hayes BMW Caulfield Cup Caulfield Open Open Hcp $,, Viewed Brad Rawiller Bart Cummings Tatts Cox Plate Moonee Valley yo+ Open WFA $,, So You Think(NZ) Glen Boss Bart Cummings Myer Classic Flemington yo+ F&M WFA $, Typhoon Tracy Luke Nolen Peter Moody AAMI Victoria Derby Flemington yo Open SW $,, Monaco Consul(NZ) Corey Brown Michael Moroney Mackinnon Stakes Flemington Open Open WFA $, Scenic Shot Shane Scriven Daniel Morton Coolmore Stud Stakes Flemington yo Open SW $, Headway Luke Nolen Peter Moody Emirates Melbourne Cup Flemington Open Open Hcp $,, Shocking Corey Brown Mark Kavanagh Crown Oaks Flemington yo F SW $,, Faint Perfume Michael Rodd Bart Cummings Patinack Farm Classic Flemington Open Open WFA $, All Silent Nicholas Hall Grahame Begg Emirates Stakes Flemington Open Open Qlty $,, All American Corey Brown David Hayes Coolmore Lightning Stakes Flemington Open Open WFA $, Nicconi Damien Oliver David Hayes Sportingbet Orr Stakes Caulfield Open Open WFA $, Typhoon Tracy Luke Nolen Peter Moody Pulse Pharmacy William Reid Stakes Moonee Valley Open Open WFA $, Turffontein Glen Boss Anthony Cummings Sportingbet Oakleigh Plate Caulfield Open Open Hcp $, Starspangledbanner Danny Nikolic Leon Corstens Arrowfield Stud Blue Diamond Stakes Caulfield yo Open SW $,, Star Witness Nicholas Hall Danny O'Brien Rokk Ebony Futurity Stakes Caulfield Open Open WFA $, Typhoon Tracy Luke Nolen Peter Moody Newmarket Handicap Flemington Open Open Hcp $,, Wanted Luke Nolen Peter Moody Darley Australian Cup Flemington Open Open WFA $,, Zipping Nicholas Hall Robert Hickmott Cadbury Guineas Flemington yo Open SW $, Rock Classic Michael Rodd Bart Cummings
– 2010
Champions move to National Sports Museum
Champions - the Australian Racing The National Sports Museum is focused on Museum and Hall of Fame, capturing the great moments in Australian officially closed its doors at sport – and exploring the history, emotion Federation Square on November and culture behind those moments. Anyone who has ever been to a race ahead of a move to the meeting knows that horse racing is more National Sports Museum (NSM) at than just a sport – it is a very important the Melbourne Cricket Ground part of the social history of Australia. (MCG) which was officially opened in October . Moving the exhibition to the NSM will assist the Museum’s aspirations to appeal to a wider audience. The NSM is the perfect and most logical fit for the ARM and will hopefully assist us in increasing our reach and visitation numbers particularly through youth and school markets. The Australian Racing Hall of Fame will now sit alongside the Australian Football Hall of Fame and Australian Cricket Hall of Fame, further cementing thoroughbred racing as one of Australia’s premier sports.
The Australian Racing Hall of Fame will now sit alongside the Australian Football Hall of Fame and Australian Cricket Hall of Fame, further cementing thoroughbred racing as one of Australia’s premier sports.
– 2010
Jumps Racing
The jumps racing season was Following the completion of the The Board considered that the dramatic I improving schooling and trialling conducted under a stringent set of season, the Racing Victoria Board reviewed improvement achieved in hurdle racing facilities at training venues; the performance of hurdle and justified a longer term commitment to new conditions and criteria aimed I reviewing the racing program; and at continuing to improve the safety steeplechase racing throughout the year provide certainty to owners investing in taking into consideration a number of horses and for jockeys, trainers and I and assessing the suitability of venues to and performance of the sport. In reports and submissions. workers who earn their livelihood from the conduct steeplechase races order to achieve these substantial sport. improvements in the performance Following that review the Board The analysis in relation to steeplechase determined that there would be a three However, the performance of steeplechase racing indicated that, given the of the sport the following changes year program of hurdle racing subject to racing was not as satisfactory with a higher season was a transitional year to new were made: the program meeting a Key Performance rate of incidents in these races. The Board obstacles, it was reasonable to expect the I A set of conditions and Key Performance Indicator (KPI) relating to fatalities. subsequently approved a one year program performance could be improved with a of steeplechase racing for the season. combination of further experience for Indicators (KPIs) relating to reducing the The KPI of not more than .% of fatalities The future of steeplechase racing beyond horses, trainers and jockeys and the series fall and fatality rates in jumps races; per starters will be measured as a rolling the program will be subject to of initiatives to improve safety. I three year average (including the Modifications to the hurdle to improve achieving a key performance indicator (KPI) season) at the end of the and The change in obstacles this season meant padding and increase the angle and of not higher than .% of fatalities per seasons (the hurdle racing fatality rate in that horses needed to be retrained to jump width of the brush starters. was .% and the steeplechase the new fences. We have made a I No jumps races to be conducted at racing fatality rate was .%). The KPI will be measured as a rolling two commitment to improve the schooling and Moonee Valley; year average (including the season) at training facilities where possible to assist There has been a substantial improvement I the end of the season. The fatality trainers in the preparation of horses for A deferred start to the jumps racing in the safety and performance of jumps rate for steeplechase racing in was jumping. season of April to enable horses to trial racing for the season with the fall and .%. over the modified hurdles; fatality rates dropping significantly from The Board has approved a jumps racing I A more stringent approach to jockey the year prior. The performance in hurdle This approval also includes the prize money and facilities improvement supervision and horse qualification by races was particularly good with a dramatic implementation of initiatives prior to the budget for the season of $. million the Jumps Review Panel; and improvement achieved due to a changed commencement of the season to that includes prize money for a program of obstacle, revised conditions and a strong improve the safety of the sport such as; jumps races, an owners’ incentive I Improved schooling and trialling facilities commitment to safety by jockeys and program and a contribution towards I improving sight lines on obstacles and trainers. improving the schooling and trialling reviewing the placement of wings; facilities for jumps horses at racecourses.
– 2010
Financial Performance
Racing Victoria’s underlying result Racing program, product and marketing EXPENSES time of the merger of TABCORP and TAB fees received from the joint venture Ltd, as well as an amount ($. million) in from general operational activities Total Racing Victoria expenditure excluding operation with TABCORP totalled $. relation to the settlement with Sportsbet. recorded a profit of $. million for distributions to shareholders amounted to million, a decrease of $. million. The the / year which, when $. million in / and consisted of Grants to the Australian Racing Museum at joint venture profit share was $. million, $. million in Racing Victoria operating Federation Square totalled $. million, consolidated with related a decrease of $. million. entities/operations, totalled a expenditure and $. million in industry- including $. million in make good reported profit of $. million for New revenue items include Regional related expenditure. Operating expenditure funding related to the relocation from Racecourse Infrastructure Funding totalling increased by $. million and industry Federation Square to the National Sports the period. $. million relating to grants associated expenditure increased by $. million Museum. with the roll out of the Infrastructure compared to last year. Training track maintenance funding REVENUE Program and Media Rights totalling $. The operating expenditure increase is due totalled $. million and continues to Revenue from operating and non-operating million relating to the consolidation of RVL to the revised accounting treatment of reflect Racing Victoria’s commitment to activities totalled $. million in /, Media Pty Ltd (fully offset by corresponding insurance recoveries which if treated on a provide first class training facilities. an increase of $. million on the industry expense). like for like basis year on year, would have previous year mainly due to the increase in Jockeys’ WorkCover expenses totalled $. Other operating revenue totalled $. resulted in a decrease of $. million in race fields fees paid by interstate wagering million in /, an increase of $. million, a decrease of $. million from the operating expenditure. operators. Revenue from race fields totalled million compared to the previous year, year prior. $. million ($. million from Interstate The industry expenditure increase is primarily as a result of an increase in the Totes and $. million from Corporate predominantly due to the roll out of the WorkCover premium for jockeys during the Bookmakers). These race fields revenues Regional Racecourse Infrastructure Program year. were offset by race fields expenses for the with expenditure increasing by $. Super VOBIS net returns to owners totalled year of $.m providing a net revenue million year on year, the consolidation of $. million, reflective of Racing Victoria’s position of $.m. RVL Media expenditure of $. million and ongoing commitment to the scheme. race fields expenditure of $. million, which predominantly relates ($. million) to the payment of race fields fees to TAB Ltd in respect of an agreement made at the
– 2010
Financial Performance
GRANTS TO MEMBERS CASHFLOW Grants to members totalled $. million, Cash at the end of the financial year an increase of $. million compared to the totalled $. million, a decrease of $. prior year. million compared to the previous year. Grants to members were as follows: Net cash provided by normal operating activities was $. million, a decrease of GRANTS GRANTS $. million, while net cash used in / / investing activities increased by $. $, $, million to $. million, largely reflecting Prize money and Priority Grants: the investment by Racing Victoria in regional racecourse infrastructure and the Country Racing new quarantine centre at Werribee. Victoria ,* , Net cash provided by financing activities Melbourne totalled $. million, reflecting the Racing Club , , requirement for additional funding to assist Moonee Valley with cash requirements associated with Racing Club , , investment activities. Victoria Racing Club , , Prize money subsidies Total Grants to Members: , ,
*Grants to Country Racing Victoria for the / year of $. million are net of an additional $. million contributed directly by Racing Victoria Limited on behalf of Country Racing Victoria towards expenditure on Regional Racecourse Infrastructure. In the comparative amount of $. million was inclusive of this amount.
RACING VICTORIA LIMITED 2010 FINANCIAL REPORT – 2010
Contents
Racing Victoria Limited ACN Financial report for the financial year ended July
Directors’ report -
Auditor’s independence declaration
Independent auditor’s report -
Directors’ declaration
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
Notes to the financial statements -
– 2010
Directors’ report
The directors of Racing Victoria Limited submit herewith the annual financial report of the company for the financial year ended July . In order to comply with the provisions of the Corporations Act , the directors report as follows:
The names of the directors of the company during or since the end of the financial year are as follows. Directors’ particulars and profiles can be viewed in the Annual Report.
The Hon Michael Duffy Chairman Appointed Director December & Chairman December Peter Sinn Deputy Chairman Appointed December and Deputy Chairman December Pamela Catty Appointed December and retired December Ross Dobinson Appointed December Bryan Gurry Appointed December John Harvey Appointed December and resigned February Graeme John AO Appointed April Prof David Karpin AM Appointed director December and resigned December Peter McMahon Appointed December David Moodie Appointed December Robert Roulston Appointed December Barbara Saunders Appointed December Paul Schauble Appointed December Robert Hines Appointed August Mark Close Company Secretary Appointed May
PRINCIPAL ACTIVITIES The consolidated entity’s principal activities in the course of the financial year were the administration of thoroughbred racing in the State of Victoria.
DIVIDENDS Under the consolidated entity’s constitution no dividends may be declared or paid.
REVIEW OF OPERATIONS The total revenue from operations (i) increased by .% to $. million in the twelve months to July . The net profit of the consolidated entity for the twelve months to July was $. million compared to a loss of $. million in the prior twelve months.
(i) Refer to page of the financial report for a full breakdown of joint venture and other operating revenue.
The profit from operations for the twelve months to July consisted of a profit from Racing Victoria Limited general operations of $. million, the share of profit from the equity accounting treatment of Racing Information Services Australia Pty Ltd (RISA) of $. million, loss from Bookmakers Development Fund of $. million and loss from the Accident Insurance Fund of $. million.
CHANGES IN STATE OF AFFAIRS During the financial year there was no significant change in the state of affairs of the consolidated entity other than that referred to in the financial statements or notes hereto.
– 2010
Directors’ report
SUBSEQUENT EVENTS In addition to the comments referred to in note to the financial statements, the consolidated entity received approval for an additional debt facility to fund the repayment of shareholder loans and to fund future capital expenditure under the regional racecourse infrastructure program.
FUTURE DEVELOPMENTS Disclosure of information regarding likely developments in the operations of the consolidated entity in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the consolidated entity. Accordingly, this information has not been included in this report.
DIRECTORS’ MEETINGS The following table sets out the number of directors’ meetings (including monthly and special meetings of the board and meetings of the audit committee) held during the financial year and the number of meetings attended by each director (while they were a director or committee member). During the financial year, monthly board meetings, special board meetings and audit committee meetings were held.
No. of No. of No. of No. of Monthly Monthly Special Special No. of No. of Meetings Meetings Meetings Meetings Meetings Meetings Directors Held (*) Attended Held (*) Attended Held (*) Attended
The Hon Michael Duffy Peter Sinn Pamela Catty Ross Dobinson Bryan Gurry John Harvey Graeme John AO Prof David Karpin AM Peter McMahon David Moodie Robert Roulston Barbara Saunders Paul Schauble Robert Hines
(*) The number of meetings held during the time the directors held office during the months to July .
– 2010
Directors’ report
INDEMNIFICATION OF OFFICERS AND AUDITORS During the financial year, the consolidated entity paid a premium in respect of a contract insuring the directors of the consolidated entity, the company secretary and all executive officers of the consolidated entity and of any related body corporate against a liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act . The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The consolidated entity has executed deeds of indemnity in favour of each of the directors. Each of these deeds provides for the consolidated entity to indemnify each director to the maximum extent permitted by law against:
• all liabilities incurred by the director as an officer of the consolidated entity and each subsidiary; and
• all legal costs and expenses arising from proceedings or an investigation incurred by the director as an officer of the consolidated entity or of a subsidiary.
The deeds also give the directors a right of access to board papers for a period of seven years after their retirement and require the consolidated entity to maintain insurance cover for the directors. A director’s right of access to board papers is subject to protection of the consolidated entity’s legal professional privilege rights and to the director keeping the board papers in confidence.
The consolidated entity has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or auditor of the consolidated entity or of any related body corporate against a liability incurred as such an officer or auditor.
AUDITOR’S INDEPENDENCE DECLARATION The auditor’s independence declaration is included on page of the financial report.
ROUNDING OFF OF AMOUNTS The consolidated entity is a consolidated entity of the kind referred to in ASIC Class Order /, dated July , and in accordance with that Class Order amounts in the directors’ report and the financial report have been rounded off to the nearest thousand dollars.
Signed in accordance with a resolution of the directors made pursuant to s.() of the Corporations Act .
On behalf of the Directors
The Hon Michael Duffy Chairman
Melbourne, November
– 2010
Auditor’s independence declaration
Deeloitteloitte TToucheouche TTohmatsuohmatsu ABBNN 7744 449090 112121 006060
555050 BBourkeourke SStreettreet Meelbournelbourne VVICIC 33000000 GGPOPO BoxBox 7878 MMelbourneelbourne VVICIC 33001001 AAustraliaustralia TheThe BoardBoard ofof DDirectorsirectors DDXX 111111 RRacingacing VictoriaVictoria LimitedLimited TTel:el: ++6161 ((0)0) 3 99671671 77000000 400 EEpsompsom RoadRoad FFax:ax: +61+61 ((0)0) 3 99671671 77001001 Fllemingtonemington VicVic 3031 wwww.deloitte.com.auww.deloitte.com.au
11 NovemberNovember 2010
DearDear BoardBoard MembersMembers
RRacingacing VictoriaVictoria LimitedLimited
IInn aaccordanceccordance withwith sectionsection 307C307C ofof thethe CorporationsCorporations ActAct 2001, I amam pleasedpleased toto provideprovide thethe followingffoollowing declarationdeclaration ofof independenceindependence toto thethe directorsdirectors ofof RacingRacing VictoriaVictoria Limited.Limited.
AsAs lleadead auditaudit partnerpartner forffoor thethe auditaudit ofof thethe financialffiinancial statementsstatements ofof RacingRacing VictoriaVictoria LimitedLimited forffoor thethe financialffiinancial yeayear eendednded 31 JulyJuly 20102010,, I ddeclareeclare thatthat toto thethe bestbest ofof mymy knowledgekknowledge andand belief,belieff,, therethere havehave bbeeneen nnoo contraventionscontraventions of:of:
( (i)i) t thehe auditorauditor independenceindependence requirementsrequirements ofof thethe CorporationsCorporations ActAct 2001 inin relationrelation toto thethe aaudit;udit; andand
( (ii)ii) anyany applicableapplicable codecode ofof professionalproffeessional conductconduct inin relationrelation toto thethe auditaudit
YoursYours sincerelysincerely
DELOITTEDELOITTE TTOUCHEOUCHE TTOHMATSUOHMATSU
DDavidavid A WWatsonatson PPartnerartner CCharteredhartered AccountantsAccountants
LLiabilityiability limitedlimited byby a schemescheme approvedapproved underunder ProfessionalProffeessional StandardsStandards Legislation.Legislaattion.
– 2010
Independent audit report
DeloitteDeloitte TToucheouche TTohmatsuohmatsu AABNBN 7744 449090 121121 006060
555050 BourkeBourke SStreettreet Meelbournelbourne VVICIC 33000000 GPOPO BoxBox 7878 MMelbourneelbourne VVICIC 33001001 AAustraliaustralia
DDXX 111111 TTel:el: ++6161 ((0)0) 3 99671671 77000000 FFax:ax: ++6161 (0)(0) 3 96719671 70017001 www.deloitte.com.auwww.deloitte.com.au
IIndependentndependent AAuditor’suditor’s RReporteport toto thethe mmembersembers ooff RRacingacing VictoriaVictoria LimitedLimited
WWee havehave auditedauudited thethe accompanyingaccompanying financialffiinancial reportreport ofof RacingRacing VictoriaVictoria Limited,Limited, whichwhich comprisescomprises thethe statementstatement ofof financialffiinancial positionposition asas atat 311 JulyJuly 2010,2010, andand thethe statementstatement ofof comprehensivecomprehensive income,income, thethe statementstatemenntt ofof cashcash flowsffllows andand thethe statementstatemenntt ofof changeschanges inin equityequity forffoor thethe yearyear endedended onon thatthat date,daatte, notesnotes comprisingcomprising a summarysummary ofof significantsigniffiicanntt accountingaccounntting policiespolicies andand otherother explanatoryexplanatory information,inffoormation, andand thethe directors’directors’ ddeclarationeclaraattion ofof thethe consolidatedconsolidated entityennttity comprisingcomprising thethe companycompany andand thethe entitiesentities itit controlledcontrolled atat thethe year’syear’s endend oror fromffrrom timetime toto timetime duringduring thethe financialffiinancial yearyear asas setset outout onon pagespages 8 toto 36.36.
Directors’Directors’ ResponsibilityResponsibilittyy forfor thetthhe FinancialFFiinancial ReportReeportport
TheThe ddirectorsirectors ofof thethe companycompany areare responsibleresponsible forffoor thethe preparationpreparaattion andand fairffaair presentationpresennttaattion ofof thethe financialffiinancial reportreport iinn accordanceaccordance withwith AustrAustralianalian AccountingAccounting StandardsStandards (including(including thethe AustralianAustralian AccountingAccounntting Interpretations)Interpretaattions) andand thethe CorporationsCorporations ActAct 2001. TThishis rresponsibilityesponsibility includesincludes establishingestablishing andand maintainingmaintaining internalinntternal controlcontrol relevantrelevant toto thethe preparationpreparaattion andand fairffaair presentationpresennttation ofof thethe financialffiinancial reportreport thatthaatt isis freeffrree fromffrrom materialmaatterial misstatement,misstatement, whetherwhether duedue toto fraudffrraud oror error;error; selectingselecting andand applyingapplying appropriateappropriate accountingaccounting policies;ppolicies; andand makingmaking accountingaccounntting estimatesestimates thatthaatt areare rereasonableasonable inin thethe circumstances.circumstances. InIn NoteNote 11,, tthehe ddirectorsirectors alsoalso state,staatte, inin accordanceaccordance withwith AccountingAccounting StandardStandard AASBAASB 101 Presentationresentatioon ofof FinancialFFiinancial StatementsStatements, thatthaatt compliancecompliance withwith thethe AustralianAustralian equivalentsequivalents toto InternationalInntternaattional FinancialFinancial ReportingReporting StandardsStandards ensuresensures thatthaatt thethe financialffiinancial report,report, comprisingcomprising thethe financialffiinancial statementsstatemenntts andand notes,notes, compliescomplies withwith InternationalInntternaattional FinancialFinancial ReportingReporrtting Standards.Standards.
Auditor’sAuditor’s RResponsibilityesponsibilittyy
OurOur rresponesponsibilitysibility isis toto expressexpress anan opinionopinion on thetthhe financialffiinancial reportreport basedbased on ourour audit.audit. WeWe conductedconnducted ourour aauditudit inin accordanceaccordance withwith AustralianAustralian AuditingAuditing Standards.Standards. TheseThese AuditingAuditing StandardsStandards requirerequire thatthaatt wewe complycomply withwith relevantrelevant ethicalethical requirementsrequirements relatingrelaatting toto auditaudit engagementsengagements andand planplan andand performperffoorm thethe auditaudit toto obtainobtain reasonablereasonable assuranceassurance whetherwhether thethe financialffiinancial reportreport isis freeffrree fromffrrom materialmaatterial misstatement.misstaattement.
AnAn aauditudit involvesinvvolves performingperffoorming proceduresprocedures toto obtainobtain auditaudit evidenceevidence aboutabout thethe amountsamounts andand disclosuresdisclosures inin thethe financialffiinancial report.report. TheThe proceduresprocedures selectedselected dependdepend on thethe auditor’sauditor’s judgement,judgement, includingincluding thethe assessmentassessment ooff tthehe rrisksisks ooff mmaterialaatterial misstatementmisstatement ofof thethe financialffiinancial report,report, whetherwwhhether duedue toto fraudffrraud oror error.error. InIn makingmaking thosethose riskrisk assessments,assessmenntts, thethe auditorauditor considersconsiders internalinternal controlconnttrol relevantrelevanntt toto thethe entity’sentity’s preparationpreparaattion andand fairffaair presentationpresennttaattion ofof thethe financialffiinancial reportreport inin orderorder toto designdesign auditaudit proceduresprocedures thatthat areare appropriateappropriate inin thethe circumstances,circumstances, but notnot forffoor thethe purposepurpose ofof expressingexpressing anan opinionopinion onon thethe effectivenessefffffeectiveness ofof thethe entity’sentity’s internalinternal control.connttrol. AnAn auditaudit alsoalso includesincludes evaluatingevaluating thethe appropriatenessappropriateness ofof accountingaccounntting policiespolicies usedused andand thethe reasonablenessreasonableness ofof accountingaccounting estimatesestimaattes mademade byby thethe directors,directors, asas wellwell asas evaluatingevaluaatting thethe overalloverall presentationpresentation ofof thethe financialffiinancial repreport.orrtt.
WeWe believebelieve thatthat thethe auditaudit evidenceevidence wewe havehave obtainedobtained isis sufficientsufffffiicienntt andand appropriateappropriate toto provideprovide a basisbasis forffoor ourour auditaudit opinion.opinion.
LiabilityLiability limitedlimited byby a schemescheme approvedapproved underunder ProfessionalProffeessional StandardsStandards Legislation.Legislation.
– 2010
Independent audit report
Auditor’s Independence Declaration
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
Auditor’s Opinion
In our opinion, the financial report of Racing Victoria Limtied is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the consolidated entity’s financial position as at 31 July 2010 and of its performance for the year ended on that date; and
(b) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.
DELOITTE TOUCHE TOHMATSU
David A Watson Partner Chartered Accountants Melbourne, 11 November 2010
– 2010
Directors’ declaration
The directors declare that:
(a) in the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and
(b) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act , including compliance with accounting standards and giving a true and fair view of the financial position and performance of the company.
Signed in accordance with a resolution of the directors made pursuant to s.() of the Corporations Act .
On behalf of the Directors
The Hon Michael Duffy Chairman
Melbourne, November
– 2010
Consolidated statement of comprehensive income for the financial year ended July
2010 2009 000 000 Revenue (a) , , Share of profit/(loss) of associates accounted for using the equity method () Expenses from ordinary activities (excluding grants) (b) (,) (,)
Profit from operations before distributions , , Grants to members (c) (,) (,)
Profit/(Loss) before income tax (,) Income tax expense (n) - -
Profit/(Loss) for the period (,) Other comprehensive income for the year ()
Total comprehensive income for the year (,)
Notes to the financial statements are included on pages to .
– 2010
Consolidated statement of financial position as at July
2010 2009 $’ $’ Current Assets Cash and cash equivalents (a) , , Trade and other receivables , , Other
Total Current Assets , ,
Non-Current Assets Other financial assets , , Property, plant and equipment , , Other intangible assets , , Investments accounted for using the equity method , ,
Total Non-Current Assets , ,
Total Assets , ,
Current Liabilities Trade and other payables , , Unearned revenue , , Borrowings , , Provisions , ,
Total Current Liabilities , ,
Non-Current Liabilities Borrowings , , Provisions , ,
Total Non-Current Liabilities , ,
Total Liabilities , ,
Net Assets , ,
Equity Issued capital - - Retained earnings , ,
Total Equity , ,
Notes to the financial statements are included on pages to .
– 2010
Consolidated statement of cash flows for the financial year ended July
Inflows (Outflows) Inflows (Outflows) 2010 2009 000 000 Cash flows from operating activities Receipts , , Grants to members (,) (,) Payments to suppliers and employees (,) (,) Interest received Receipts from other activities , ,
Net cash generated by operating activities (c) , ,
Cash flows from investing activities Payments for property, plant and equipment (,) (,)
Net cash used in investing activities (,) (,)
Cash flows from financing activities Repayment of borrowings () (,) Advance - Other related entities () - Advance - Racing Products Victoria - (,) Proceeds from borrowings , -
Net cash provided by/(used in) financing activities , (,)
Net decrease in cash held () (,)
Cash at beginning of financial year , ,
Cash at the end of financial year (a) , ,
Notes to the financial statements are included on pages to .
– 2010
Consolidated statement of changes in equity for the financial year ended July
000 000 000
Balance at August - , , Loss for the year - (,) (,) Actuarial loss on defined benefit plans - () ()
Balance at July - , ,
Balance at August - , , Profit for the year - Actuarial gain on defined benefit plans -
Balance at July - , ,
Notes to the financial statements are included on pages to .
– 2010
Notes to the financial statements for the financial year ended July
. Summary of Accounting Policies The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the consolidated entity consisting of Racing Victoria Limited and its subsidiaries.
Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements, other authoritative pronouncements of the Australian Accounting Standards Board and Interpretations and the Corporations Act .
Compliance with Australian Accounting Standards – Reduced Disclosure Requirements The consolidated financial statements of the Racing Victoria Limited consolidated entity comply with Australian Accounting Standards – Reduced Disclosure Requirements as issued by the Australian Accounting Standards Board (AASB).
Early adoption of standards The consolidated entity has elected to apply the following pronouncements to the annual reporting period beginning July :
• AASB - Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project
• AASB Application of Tiers of Australian Accounting Standards and AASB - Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements
This includes applying the revised pronouncement to the comparatives in accordance with AASB Accounting Policies, Changes in Accounting Estimates and Errors . The adoption of AASB and AASB - allowed the consolidated entity to remove a number of disclosures. There was no other impact on the current or prior year financial statements.
Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through profit or loss, certain classes of property, plant and equipment and investment property.
The consolidated entity is a consolidated entity of the kind referred to in ASIC Class Order /, dated July , and in accordance with that Class Order amounts in the Financial Report are rounded off to the nearest thousand dollars, unless otherwise indicated.
The financial report has also been prepared in accordance with the terms of various agreements with the Victoria Racing Club, the Members (as defined at (i) and (ii) below) and the racing industry in Victoria as follows:
(i) Establishment of Operations The consolidated entity was incorporated on December for the purpose of administering the Victorian thoroughbred racing industry which was previously the responsibility of the Victoria Racing Club (VRC).
On December the four thoroughbred racing bodies – Victoria Racing Club, Melbourne Racing Club, Moonee Valley Racing Club and Country Racing Victoria (collectively the Members) entered into a Members Agreement with the consolidated entity. Under this agreement the Members agreed to establish the consolidated entity as the new Principal Club and governing body for thoroughbred racing in Victoria, to be owned and funded by the Members. The VRC agreed to relinquish its status as the Principal Club and its role as governing body to facilitate the granting to the consolidated entity of that status and role.
– 2010
Notes to the financial statements for the financial year ended July
. Summary of Accounting Policies (continued)
(ii) New Constitution On June the consolidated entity announced that agreement had been reached with its four members (Country Racing Victoria, Melbourne Racing Club, Moonee Valley Racing Club and Victoria Racing Club) in relation to the outcomes of the Victorian Thoroughbred Racing Industry Review.
A number of the outcomes agreed with members related to changes to the consolidated entity’s governance and required amendment to the consolidated entity’s Constitution.
As a consequence a Special General Meeting was held on September at which a special resolution was passed to adopt a new Constitution.
The principal changes to the Constitution provided that:
• the membership of the consolidated entity be expanded to include RVL’s ten stakeholder bodies subject to those new members satisfying minimum qualification criteria before being eligible to vote;
• a vote of .% be required to pass all resolutions other than a special resolution (which will continue to require a vote of %);
• a new independent board be appointed with effect from the close of the Annual General Meeting; and
• with effect from the Annual General Meeting directors will be required to retire by rotation and be subject to appointment by direct election of the members in the event of any member nominating candidates in addition to candidates proposed by the consolidated entity’s board.
The new Constitution came into operation on November being the day upon which the Victorian Government Gazette published a certification by the Minister for Racing that the special resolution had not been disallowed by either House of the Victorian Parliament.
The new Constitution provides that consolidated entity’s membership and the associated voting rights are as follows:-
• Country Racing Victoria - ten votes;
• Melbourne Racing Club - five votes;
• Moonee Valley Racing Club - five votes;
• Victoria Racing Club - five votes;
• Thoroughbred Racehorse Owners Association - three votes;
• Thoroughbred Breeders Victoria - two votes;
• Australian Trainers Association - two votes;
• Victorian Jockeys’ Association - one vote;
• Australian Jumping Racing Association and Victorian Bookmakers’ Association - one vote exercisable jointly; and
• Australian Services Union, Australian Workers Union, Liquor, Hospitality & Miscellaneous Workers Union and Media and Entertainment Arts Alliance - one vote exercisable jointly.
(iii) Thoroughbred Racing Industry Revenue and Distributions The racing industry in Victoria has entered into joint venture and information supply agreements with the Tabcorp group of companies. Under a Racing Industry Deed of Operations executed on May , the thoroughbred, harness and greyhound racing codes have determined arrangements between themselves including the allocation of joint venture profits and information supply fees. This income is received by the thoroughbred racing industry in the form of a racing program fee, a product supply fee, a marketing fee and the joint venture profit share (refer Note (a)).
– 2010
Notes to the financial statements for the financial year ended July
. Summary of Accounting Policies (continued) Following the adoption of the new constitution the consolidated entity and the clubs agreed to terminate the Members’ Agreement as it operated between them and a new club Members’ Deed was entered into for the purpose of providing for certain arrangements in relation to the governance of the TABCORP Joint Venture, the making of grants to the clubs and the re-licensing process.
In relation to the consolidated entity making grants to the clubs the following principles apply:
• The consolidated entity will from time to time make grants to participants in the Victorian thoroughbred racing industry for the purpose of encouraging thoroughbred horseracing.
• In making grants, the consolidated entity will seek to:
(i) adequately support the objectives of the Victorian thoroughbred racing industry;
(ii) provide incentives for club performance and achievements of industry objectives; and
(iii) encourage and optimise participation in the ownership of thoroughbred race horses throughout Victoria by maximising returns to owners through statewide prize money strategies and other incentives.
• The clubs further acknowledge that, consistent with the constitution of the consolidated entity, no portion or amount of the income or assets of the consolidated entity may be distributed, paid or transferred directly or indirectly by way of dividend, bonus, or otherwise by way of profit to or amongst the clubs in their capacity as Members.
(iv) Retained Profits Under the terms of the Members agreement net profit and the ongoing retained profits of the consolidated entity cannot be distributed as dividends to the Members.
Significant Accounting Policies The following significant accounting policies have been adopted in the preparation and presentation of the financial report:
(a) Borrowings Borrowings are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, borrowings are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the borrowing using the effective interest rate method.
(b) Cash and Cash Equivalents Cash comprises cash on hand and demand deposits. Cash equivalents are short tem, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.
(c) Employee Benefits A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leave when it is probable that settlement will be required and they are capable of being measured reliably.
Liabilities recognised in respect of employee benefits expected to be settled within months, are measured at their nominal values, using the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of employee benefits which are not expected to be settled within months, are measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to the reporting date.
– 2010
Notes to the financial statements for the financial year ended July
. Summary of Accounting Policies (continued) Defined Contribution Plans Contributions to defined contribution superannuation plans are expensed when incurred.
Defined Benefit Plans For defined benefit superannuation plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at each reporting date. Actuarial gains and losses are recognised in full, directly in retained earnings, in the period in which they occur.
Past service is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight line basis over the average period until the benefits become vested.
The defined benefit obligation recognised in the statement of financial position represents the present value of the defined benefit, net of the fair value of the plan assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the plan.
(d) Financial Assets Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as at fair value through profit or loss which are initially measured at fair value.
Subsequent to initial recognition, investments in associates are accounted for under the equity method.
Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost as adjusted for post acquisition changes in the consolidated entity’s share of the net assets of the associate, less any impairment in the value of individual investments.
Loans and Receivables Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment interest is recognised by applying effective interest rates.
(e) Financial Instruments issued by the consolidated entity Debt and Equity Instruments Debt and equity instruments are classified as either liabilities or as equity in accordance with the substance of the contractual arrangement.
Interest Interest is classified as an expense consistent with the balance sheet classification of the related debt.
(f) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
• where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or
• for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.
– 2010
Notes to the financial statements for the financial year ended July
. Summary of Accounting Policies (continued) Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from or payable to, the taxation authority is classified as operating cash flows.
(g) Impairment of Other Tangible and Intangible Assets At each reporting date, the consolidated entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the consolidated entity estimates the recoverable amount of the cash generating unit to which the asset belongs. Where a reasonable and consistent basis can be identified, corporate assets are also allocated to individual cash generating units, or otherwise they are allocated the smallest group of cash generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.
(h) Intangible Assets Capitalised Software Capitalised software is recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight line basis over the estimated useful life of the software being five years.
(i) Leased Assets Leased assets are classified as finance leases when terms of the lease transfer subsequentially at the risks and rewards incidental to ownership of the leased asset to the leasee. All other leases are classified as operating leases.
Finance leased assets are amortised on a straight-line basis over the estimated useful life of the asset. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.
(j) Payables Trade payables and other accounts payable are recognised when the consolidated entity becomes obliged to make future payments resulting from the purchase of goods and services.
– 2010
Notes to the financial statements for the financial year ended July
. Summary of Accounting Policies (continued) (k) Property, Plant and Equipment Plant and equipment, buildings and infrastructure capital are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition.
Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is calculated on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life; whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method is reviewed at the end of each annual reporting period, with effect of any changes recognised on a prospective basis.
The following estimated useful lives are used in the calculation of depreciation: Buildings and Improvements years Plant and Equipment to years Infrastructure Capital to years
During the year the consolidated entity acquired assets through the completion of projects which are part of the Regional Racing Infrastructure Program. These projects are individually assessed for appropriateness of recognition as assets within the consolidated statement of financial position of the consolidated entity. The key elements for recognition of the capital expenditure as an asset are control and ensuring that future economic benefits will flow to the consolidated entity.
(l) Provisions Provisions are recognised when the consolidated entity has a present obligation (legal or constructive) as a result of a past event, it is probable that the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation, the future sacrifice for economic benefits is probable, and the amount of the provision can be measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Accident Insurance Fund Prior to September the Fund was an authorised insurer for the purposes of the Workers Compensation Act . The provision for outstanding claims is disclosed at Note . The provision is based on the last actuarial assessment of the outstanding claims of the Fund conducted as at July by Frank Funder, a fellow of the Institute of Actuaries of Australia and reviewed annually by management having regard for material events impacting the calculation of the provision.
(m) Revenue Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances.
Thoroughbred Racing Industry Revenue Revenue is recognised when receivable under the joint venture and information supply agreements with the Tabcorp group of companies.
– 2010
Notes to the financial statements for the financial year ended July
. Summary of Accounting Policies (continued) Sale of Goods and Disposal of Assets Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
• the consolidated entity has transferred to the buyer the significant risks and rewards of ownership of the goods;
• the consolidated entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction will flow to the consolidated entity; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of Services Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract. The stage of the contract is determined as follows:
• installation fees are recognised by reference to the stage of completion of the installation, determined as the proportion of the total time expected to install that has elapsed at reporting date;
• servicing fees included in the price of products sold are recognised by reference to the proportion of the total cost of providing the servicing for the product sold, taking into account historical trends in the number of services actually provided on past goods sold; and
• revenue from time and material contracts is recognised at the contractual rates as labour hours are delivered and direct expenses incurred.
Contributions of Assets Revenue arising from the contribution of assets is recognised when the consolidated entity gains control of the contribution or the right to receive the contribution.
Interest Revenue Interest revenue is accrued on a time basis, by reference to the principal outstanding and effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the assets carrying amount.
Government Grants Revenue from government grants relating to the roll out of the Regional Racing Infrastructure Fund (RRIF) is recognised in accordance with AASB “contributions”.
(n) Income Tax The consolidated entity is exempt from Income Tax under section - of the Income Tax Assessment Act.
(o) Critical Accounting Judgements and Key Sources of Estimation Uncertainty In the application of the consolidated entity’s accounting policies, which are described above, Management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
– 2010
Notes to the financial statements for the financial year ended July
. Summary of Accounting Policies (continued) Critical judgements in applying the consolidated entity’s accounting policies Judgements made by management in the application of A-IFRS that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.
Accounting policies are selected and applied in a manner that ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at balance date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Useful lives of Property, Plant & Equipment and Computer Software & Databases As described in note (k), the consolidated entity reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period.
(p) Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Racing Victoria Limited (“consolidated entity” or “parent entity”) as at July and the results of all subsidiaries for the year then ended. Racing Victoria Limited and its subsidiaries together are referred to in this financial report as the group or the consolidated entity.
Subsidiaries are all entities (including special purpose entities) over which the consolidated entity has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the consolidated entity controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Racing Victoria Limited established Racing Victoria Media Pty Ltd (a wholly owned subsidiary with a shareholding of one share) on May .
Intercompany entity transactions, balances and unrealised gains on transactions between consolidated entity companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of financial position respectively.
(q) Parent entity financial information The financial information for the parent entity, Racing Victoria Limited, disclosed in note has been prepared on the same basis as the consolidated financial statements.
(r) New accounting standards and interpretations In the current year, the consolidated entity has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations did not have any material financial impact on the amounts recognised in the financial statements of the consolidated entity, however they have impacted the disclosures presented in the financial statements.
– 2010
Notes to the financial statements for the financial year ended July
. Summary of Accounting Policies (continued) At the date of authorisation of the financial report, the following relevant Standards and Interpretations were issued but not yet effective:
(i) AASB Application of Tiers of Australian Accounting Standards and AASB Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements (effective for annual periods beginning on or after July but may be early adopted for annual reporting period beginning on or after July )
(ii) AASB Amendments to Australian Accounting Standards arising from the Annual Improvements Project (effective for annual periods beginning or after July )
(iii) AASB Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project (effective for annual periods beginning or after July )
(iv) AASB Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project (effective for annual periods beginning on or after January )
(v) AASB Amendments to Australian Accounting Standards – Group Cash-Settled Share based Payment Transactions [AASB] (effective from January )
(vi) AASB Amendments to Australian Accounting Standards – Classification of Rights Issues [AASB ] (effective for annual reporting periods beginning on or after February )
(vii) Revised AASB Related Party Disclosures and AASB Amendments to Australian Accounting Standards (effective for annual reporting periods beginning on or after January )
(viii) AASB Financial Instruments and AASB Amendments to Australian Accounting Standards arising from AASB (effective for annual reporting periods beginning on or after January )
(ix) AASB Interpretation Extinguishing financial liabilities with equity instruments and AASB Amendments to Australian Accounting Standards arising from Interpretation (effective July )
(x) AASB Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement (effective January )
The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material financial impact on the financial statements of the consolidated entity.
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Profit/(Loss) from Operations
(a) Revenue: Revenue from operations consisted of the following items: Racing program fee , , Product supply fee (i) , , Marketing fee , , Joint venture profit share , ,
Total joint venture revenue , ,
Regional racecourse infrastructure program , - Racing , , Publishing Education and training Race fields (Note ) , , SuperVOBIS , , Interest Media rights , - Regional services , Industry service recoveries , , Scratching fee income , , Sponsorship , , Rent received Super Screen , Bookmakers Levy - Other ,
Non-operating revenue: Profit/(loss) for the year has been arrived at after crediting: Shareholder grant , , Other
, ,
(i) Product supply fees are received from Racing Products Victoria Pty Ltd net of third party charges (race fields and international fees) incurred in accordance with the Product Supply Agreement.
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Profit/(Loss) from Operations (continued)
(b) Expenses: Profit/(loss) has been arrived at after charging the following expenses: Racing Victoria Limited Operating Expenditure Integrity services , , Racing , , Veterinary and swabbing , , Racing development , , Information services , , Legal , , Occupancy , , Services and administration , , Depreciation and amortisation , , Bookmakers development fund Fleet costs , , Other , ,
, ,
Industry Expenditure Marketing and promotion , , Race day services , , Special projects allocations Grants – Australian Racing Museum , , Stewards video and race telecasting , , Formguide , , Regional racecourse infrastructure program , , Training facilities maintenance funding , , Infrastructure operations - Jockey’s workcover expenses , , Media rights , - Contributions Sport , SuperVOBIS , , Provision for doubtful debts () Riding fees , , Jockey welfare , Legal and consulting , Super screen , Race fields , - Interest Expense - Commercial bills - Training tracks facility Other -
, ,
Total operating and industry expenditure , ,
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Profit/(Loss) from Operations (continued) Expenses from ordinary activities include: Contributions to defined benefit superannuation plan Depreciation of non-current assets: Property, plant and equipment Amortisation of non-current assets: Computer software and databases , , Operating lease rental expenses Operating expenses – other related party: Australian Racing Museum , ,
(c) Grants to members: Prize money and Priority Grants: Country Racing Victoria (i) , , Melbourne Racing Club , , Moonee Valley Racing Club , , Victoria Racing Club , , Prize money subsidies
Total Grants to members , ,
(i) The amount of $.m is net of an additional $.m contributed directly by Racing Victoria Limited on behalf of Country Racing Victoria towards expenditure on Regional Racecourse Infrastructure. In the comparative amount of $.m was inclusive of this amount. . Race Fields Following the Supreme Court of Victoria judgement handed down on August in the proceedings commenced by TAB Ltd (the operator of the NSW totalisator) against Racing Victoria Limited, the company reassessed all applications for race fields approvals effective September and required the payment of a fixed amount until July . On July , amending Legislation became operative which provided for the calculation of fees by formulae and also for a transitional fee for the period from September until July . Racing Victoria Limited has commenced determining the transitional fees, a number of which have been included in the financial statements for the year ended July . At July Racing Victoria Limited had an outstanding proceeding in the Federal Court in relation to race fields fees paid by a corporate bookmaker Sportsbet Pty Ltd. This proceeding was discontinued post year end and the settlement terms resulted in a favourable outcome for Racing Victoria Limited, which has been reflected in the financial statements for the year ended July .
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Current Trade and Other Receivables Trade receivables (i) , , Allowance for doubtful debts (ii) () ()
, ,
Joint Venture Fees and indexation receivable , , Joint Venture Profit share receivable , , Training Tracks Capital Receivable (Note ) Loan - ThoroughVisioN , - Receivable from Racing Information Services Australia - other related party - Media rights receivables , - Sundry receivables , ,
, ,
(i) The majority of trade receivables arise as a result of transactions with trainers and racing clubs. The credit period provided to trainers and clubs are days and days respectively. A provision has been made for estimated irrecoverable amounts from these receivables, determined by reference to past default experience. (ii) Reconciliation of doubtful debts Allowance for doubtful debts July - Bad debts written off - () - Movement in allowance account taken to profit and loss ()
Allowance for doubtful debts July
. Other Current Assets Prepayments – other
. Other Non-current Financial Assets At amortised cost: Receivable from Racing Information Services Australia – other related party , Training Tracks Capital Receivable , , Receivable from Australian Racing Museum - other related party , , - Less allowance for doubtful debts (i) (,) (,)
, ,
(i) Reconciliation of doubtful debts Allowance for doubtful debts July , , - Bad debts written off - - - Movement in allowance account taken to profit and loss - -
Allowance for doubtful debts July , ,
– 2010
Notes to the financial statements for the financial year ended July
. Property, Plant and Equipment Work in Progress Free-hold Infra- Infra- Land structure structure Plant & Buildings at cost Capital Capital Equipment Total 000 000 000 000 000 000
Gross carrying amount (at cost) Balance at July , --, , Additions , , , , Assets written off ------
Balance at July , , , , ,
Accumulated Depreciation/Amortisation Balance at July (,) ---(,) (,) Assets write-off ------Depreciation expense () - () - () ()
Balance at July (,) - () - (,) (,)
Net Book Value As at July , --, ,
As at July , , , , ,
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Property, Plant and Equipment (continued) Aggregate depreciation allocated whether recognised as an expense or capitalised as part of the carrying amount of other assets during the year. Buildings Infrastructure Capital - Plant and equipment
. Other Intangible Assets
Computer Software and databases Gross carrying amount (at cost) Balance at July , , Additions , Assets written off - ()
Balance at July , ,
Accumulated Amortisation Balance at July (,) (,) Assets written off - Amortisation expense (,) (,)
Balance at July (,) (,)
Net Book Value , ,
. Investments accounted for using the Equity Method Name of entity Principal activity Balance date Ownership interest Carrying amount Interest in associated entity: $’ $’ Racing Information Services Australia Pty Ltd Racing Information // % % , ,
Significant influence is derived over Racing Information Services Australia Pty Ltd through the Board’s appointment of a nominee director. Pursuant to a shareholder agreement the company has the right to cast % of the votes at a shareholder meeting.
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Investments accounted for using the Equity Method (continued) Movements in investments in associates
At the beginning of the financial year , , Share of profit / (loss) ()
At the end of the financial year , ,
Summarised financial position of associates: Current assets: Cash and cash equivalents , , Trade and other receivables , , Non-current assets: Property, plant and equipment Trade and other receivables , Intangibles , , Current liabilities: Trade and other payables () () Provisions () () Non-current liabilities: Borrowings () (,) Provisions () ()
Net Assets , ,
Net profit / (loss) ()
Dividends received from associates During the year, the consolidated entity received no dividends (: nil) from its associates. Capital commitments The consolidated entity’s share of capital commitments and other expenditure commitments of associates is nil.
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Current Trade and Other Payables Unsecured: Trade payables , , Stakes accruals , , Sundry payables , , Media rights payable , - GST payable , ,
, ,
Accruals and payables represent liabilities for goods and services provided to the consolidated entity, prior to the end of the financial year, which are unpaid. Amounts are normally settled within days and are carried at nominal value. Racing Victoria Limited has financial risk management policies in place to ensure that all payables are paid within the credit timeframe. . Current Borrowings Secured at amortised cost: Commercial Bills (i) & (ii) , , Shareholder Loans (iii) , - Training Tracks Facility (i) & (ii) (Note )
, ,
(i) Secured by a fixed and floating charge over the assets of Racing Victoria Limited. (ii) During the period there were no defaults or breaches on any of the loans. (iii) Shareholder loans are on day call and are not subject to any fixed repayment terms. . Current Provisions Employee benefits , ,
, ,
. Non-Current Borrowings Secured at amortised cost: Loans: Training Tracks Facility (i) & (ii) , , Land Facility (i) & (ii) , - Quarantine Centre Facility (i) & (ii) - Unsecured at amortised cost: Loan – Other , ,
, ,
(i) Secured by a fixed and floating charge over the assets of Racing Victoria Limited. (ii) During the period there were no defaults or breaches on any of the loans.
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Non-Current Provisions Accident claims (i) (Note (l)) , , Employee benefits , , Superannuation – Defined Benefit Fund (Note ) , ,
, ,
(i) Accident claims Balance at beginning of the year , , Additional provisions recognised - -
Balance at end of the year , ,
. Issued Capital The consolidated entity is a consolidated entity limited by guarantee. Every member undertakes to and must contribute an amount not exceeding $ in the event of the winding up of the consolidated entity. . Retained Earnings Balance at beginning of financial period , , Actuarial gains/(losses) () Net Profit/(Loss) (,)
Balance at end of financial period , ,
. Commitments for Expenditure (a) Non-cancellable operating leases: Not later than year Later than year but not later than years , -
,
Operating leases relate to the leasing of motor vehicles. The term of each individual lease is between one and three years. These lease agreements are not subject to rental adjustments. (b) Other (Broadcast Contract): Not later than year , , Later than year but not later than years , ,
, ,
Other relates to the supply of outside broadcasting services to the Victorian Thoroughbred Racing Industry by ThoroughVisioN Pty Ltd. The term of this contract is five years. (c) The consolidated entity has undertaken to provide financial support to the Australian Racing Museum to a maximum of $, thousand during /.
– 2010
Notes to the financial statements for the financial year ended July
. Superannuation Commitments
The employees of the consolidated entity are members of Victorian Racing Industry Superannuation Fund, which also includes employees of the Victoria Racing Club and Country Racing Victoria. The fund has a composition of defined benefit and accumulation membership.
The financial information of the fund disclosed in this report relates to the employees of the consolidated entity.
Under the defined benefit plan, employees are entitled to retirement benefits based on a multiple of their deemed final salary upon attainment of their retirement age of . No other post-retirement benefits are provided to these employees.
The defined benefit plans are funded plans. The superannuation plans compute their obligations in accordance with Accounting Standard AAS “Financial Reporting by Superannuation Plans” which prescribes a different measurement basis to that applied in this financial report. The net deficit determined in the plans most recent financial report, being the annual reports for the financial year ended June , was $, thousand (: $, thousand). The plan actuaries have not recommended that additional contributions beyond the current contribution level be made. Funding recommendations are made by the actuaries based on their forecast of various matters, including future plan assets performance, interest rates and salary increases.
The consolidated entity has a legal liability to make up a deficit in the plans but no legal right to use any surplus in the plans to further its own interests.
2010 2009 %% Key Assumptions used (expressed as weighted averages) Discount rate gross of tax . . Discount rate net of tax . . Expected return on plan assets . . Expected rate of salary increase . .
2010 2009 000 000
Amounts recognised in income in respect of these defined benefit plans are as follows:
Current service cost Interest cost Expected return on plan assets () ()
Total including employee benefit expense
Actuarial gains / (losses) incurred during the year and recognised in the statement of changes in equity ()
Cumulative actuarial gains / (losses) recognised in the statement of changes in equity , ,
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Superannuation Commitments (continued) The amount included in the statement of financial position arising from the consolidated entity’s obligations in respect of its defined benefit plan is as follows: Present value of funded defined benefit obligations (,) (,) Fair value of plan assets , ,
Net liability arising from defined benefit obligations (,) (,)
Included in the balance sheet: Non-current provision for employee benefits (Note ): Superannuation - defined benefit fund , ,
Net liability arising from defined benefit obligations , ,
Movement in the present value of defined benefit obligations in the current period were as follows: Opening defined benefit obligation (,) (,) Current service cost () () Interest cost () () Contribution from plan participants () () Actuarial (gains) / losses () , Benefits and tax paid ,
Closing defined benefit obligation (,) (,)
Movement in the present value of plan assets in the current period were as follows: Opening fair value of plan assets , , Expected return on assets Actuarial gains / (losses) (,) Contributions from the employer , Contributions from plan participants Benefits and tax paid () (,)
Closing fair value of plan assets , ,
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Superannuation Commitments (continued) Fair Value of Plan Assets: Equity Instruments , , Debt Instruments , , Property Other
, ,
2010 2009
. Key Management Personnel Remuneration The aggregate compensation of the key management personnel, including directors of the consolidated entity, is set out below: Other key management Short-term employee benefits ,, ,, Post-employment benefits , ,
,, ,,
Directors Short-term employee benefits , ,
, ,
. Remuneration of Auditors – Deloitte Touche Tohmatsu Audit of the financial report , ,
, ,
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Parent Entity financial information Assets Current assets , , Non-current assets , ,
Total assets , ,
Current liabilities , , Non-current liabilities , ,
Total liabilities , ,
Shareholders’ equity Retained earnings , ,
, ,
Profit/(loss) for the year (,)
Total comprehensive income (,)
. Segment Reporting The consolidated entity operates in the thoroughbred racing industry in the State of Victoria. . Related Party Disclosures (a) Equity interests in associates and joint ventures Details of interests in associates are disclosed in note to the financial statements. (b) Key management personnel compensation Details of key management personnel compensation including directors are disclosed in Note to the financial statements. (c) Transactions with key management personnel Certain directors participate in the thoroughbred racing industry via means of ownership of race horses either individually or through related entities. This involvement is on terms and conditions no more favourable than other participants in the thoroughbred racing industry. (d) Other Related party disclosures Transactions with key management personnel and their related entities The net profit reported in the statement of comprehensive income in includes expenses in relation to activities paid by Racing Victoria Limited on behalf of the Australian Racing Museum Ltd (director related entity) totalling $, thousand (: $, thousand). These expenses were incurred only after approval by the Racing Victoria Limited board. During the financial year the consolidated entity also provided administrative services to the entity on normal commercial terms and conditions as agreed by the parties. Aggregate amounts receivable from director related entities are disclosed in Notes and to the financial statements.
– 2010
Notes to the financial statements for the financial year ended July
2010 2009 000 000
. Notes to the Statement of Cash Flows
(a) Reconciliation of cash For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand and in banks and investments, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the balance sheet as follows:
Cash at bank , ,
(b) Financing facilities Commercial bill facility: - amount used , , - amount unused , ,
, ,
(c) Reconciliation of net profit to net cash flows from operating activities Profit/(Loss) from ordinary activities (,) Share of associates loss/(profit) () Depreciation & amortisation of non-current assets , , Defined benefit plan expense () () Receivable reduction – Training tracks , Interest income () Changes in net assets & liabilities: (Increase)/Decrease in: Receivables (,) (,) Prepayments () Increase/(Decrease) in: Payables , , Provisions Unearned Revenue , (,)
Net cash provided by operating activities , ,
– 2010
Notes to the financial statements for the financial year ended July
. Contingent Liability Under the Deed of Contribution and Indemnity with the Victoria Racing Club , the consolidated entity has indemnified the Victoria Racing Club against any claims against the Victoria Racing Club arising from its previous operation of the thoroughbred racing industry in Victoria. Racing Victoria Limited has guaranteed a loan facility of Australian Racing Museum of $, thousand. (: nil).
. Subsequent Events In addition to the comments referred to in note to the financial statements, the consolidated entity received approval for an additional debt facility to fund the repayment of shareholder loans and to fund future capital expenditure under the regional racecourse infrastructure program.
. Additional consolidated entity Information Racing Victoria Limited is a consolidated entity incorporated and operating in Australia. Principal Registered Office and Principal Place of Business Racing Victoria Limited Epsom Road Flemington Victoria Telephone: () www.racingvictoria.net.au