South Australian Jockey Club Annual Report 2007-2008 Race Sponsors Race Sponsors
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SOUTH AUSTRALIAN JOCKEY CLUB ANNUAL REPORT 2007-2008 RACE SPONSORS RACE SPONSORS SAJC BOARD MEMBERS RACERACERACE SPONSORS SPONSORSSPONSORS RACERACE SPONSORSSPONSORS Ê >vwi Ê Ê À>LL >vwiÊ /À>ÛÃÊVi>Þ Ê À>LLÊ /À>ÛÃÊVi>Þ Chairman ViceChairmanÊChairman DeputyVice ÊViceChairman Chairman Deputy Vice Chairman RACE SPONSORS Ê Ê Ê >vwi >vwi>vwi Ê À>LL Ê Ê Ê À>LL*iÌiÀÊiÜÃ Ê À>LL >vwi>vwiÊ ÊÊ /À>ÛÃÊVi>Þ- >ÀÊÀÀiÃÌiÀiÃ/À>ÛÃÊVi>Þ/À>ÛÃÊVi>Þ*iÌiÀÊiÜÃ Ê À>LL Ê À>LLÊÊ - >ÀÊÀÀiÃÌiÀiÃ/À>ÛÃÊVi>Þ7>ÞiÊÀ>VÃ/À>ÛÃÊVi>Þ 7>ÞiÊÀ>Và ChairmanChairmanChairman ViceViceÊViceChairmanChairmanChairmanÊÊChairmanChairman DeputyDeputyDeputy ViceViceVice Vice ViceÊÊChairmanChairmanChairman ChairmanChairman DeputyDeputy ViceVice ChairmanChairman MEDIA PARTNERS MEDIA PARTNERS *iÌiÀÊiÜÃ*iÌiÀÊiÜÃ*iÌiÀÊiÜà - >ÀÊÀÀiÃÌiÀiÃ- >ÀÊÀÀiÃÌiÀiÃ- >ÀÊÀÀiÃÌiÀià >Û`Ê,>à ii` Ê*iÌiÀÊiÜÃ*iÌiÀÊiÜà >vwi - >ÀÊÀÀiÃÌiÀiÃ7>ÞiÊÀ>VÃ- >ÀÊÀÀiÃÌiÀiÃÃÌ>ÀÊV>À>i7>ÞiÊÀ>Và >Û`Ê,>à ii`7>ÞiÊÀ>VÃ Ê À>LLÊ ÃÌ>ÀÊV>À>i/À>ÛÃÊVi>Þ7>ÞiÊÀ>VÃ7>ÞiÊÀ>Và Ê-«i>À Ê-«i>À ResignedChairman December 2007 ViceÊChairman Deputy Vice Chairman MEDIAMEDIAMEDIA PARTNERS PARTNERSPARTNERS MEDIAMEDIA PARTNERSPARTNERS Greg Le Poidevin * It is with great regret that Greg Le Poidevin >Û`Ê,>à ii` >Û`Ê,>à ii` >Û`Ê,>à ii` ÃÌ>ÀÊV>À>iÃÌ>ÀÊV>À>iÃÌ>ÀÊV>À>i >Û`Ê,>à ii` >Û`Ê,>à ii`*iÌiÀÊiÜà - >ÀÊÀÀiÃÌiÀiÃÃÌ>ÀÊV>À>iÃÌ>ÀÊV>À>i Ê-«i>À Ê-«i>À Ê-«i>À passed away7>ÞiÊÀ>Và on Ê-«i>À Ê-«i>À the 27th of August 2008. 2 MEDIA PARTNERS >Û`Ê,>à ii` ÃÌ>ÀÊV>À>i Ê-«i>À South Australian Jockey Club Inc. Chairman’s Message 4 Chief Executive Officer’s Report 6 Racing Review 10 Group One Winners 11 Group and Listed Winners 2007/2008 12 Marketing Report 14 Financial Report 16 Notes to the Financial Report for 2007/2008 23 Report by the Board 37 Statement by the Board 37 Independent Audit 38 SAJC PATRONS Robert Gerard AO His Excellency Rear Admiral Kevin Scarce AC CSC RANR Governor of South Australia 3 CHAIRMAN’S MESSAGE Motor Sports Board on behalf of the We are also in the final planning stage State Government. of a number of renovations to the 2nd floor and ground floor at Allan Scott Park Unfortunately in November a new Morphettville. These will be outlined Adelaide City Council was elected with to members at a special information the majority against this development, meeting planned in October. We will then which meant we would have to put these out to open tender, after which reconsider our options of remaining at your Board will decide on their further John Naffine Chairman Victoria Park and the costs of upgrading implementation. the existing facilities to the standard required for Saturday metropolitan racing. Another significant project which was Dear Member Further the SAJC was not prepared commenced in June to be completed in to invest in Victoria Park and still be time for the Melbourne Cup Race Day is It is my pleasure on behalf of the Board exposed to the same interference from the new Pavilion on the mound near the to present to you the Annual Report motor sport. We also had to consider the old Derby stand location. and Statement of Accounts of the South possible less favourable terms of a new Australian Jockey Club for 2007/2008. tenancy with the Adelaide City Council. This new two storey pavilion which can hold up to 1,200 people will enable us This year has without doubt been the Substantial financial modeling was to achieve significant function revenue most significant one in the history of undertaken which clearly showed the beyond its racing participation. our Club, and it has certainly been a negative cost to operating at both Victoria bittersweet one as you will appreciate Park and Allan Scott Park Morphettville At the same time I must acknowledge from this report. (ASPM) compared to the positive the ongoing support of our Patron and result of operating at Allan Scott Park sponsor of our Tapestry Pavilion, Mr. The year commenced with the Equine Morphettville only, even given the cost Robert Gerard AO who again increased Influenza epidemic in August which allowance of adding a second track at his support for the Gerard Corporation initially cost us a race meeting and then Allan Scott Park Morphettville. Stakes of 1600 metres. This year it many months of reduced attendance became a $170,000 race and will again and on-course turnover in betting, dining, Therefore your Board unanimously increase in 2009 hopefully to $200,000, bars etc. The bottom line cost to the resolved that we should withdraw making it one of the most significant Club is estimated to be a minimum from racing at Victoria Park, and this “metric mile” races in Australia and one of $270,000. was outlined to members at a special which should move to Group 2 status in information meeting in March. For many the near future. We were just putting this behind us and of us and most members I am sure this looking forward to a great Adelaide Cup was a sad moment and an emotional Members will recall the prominent Carnival in March when we suffered a 40 one to leave such a superb location after discussion of the Bentley Report last degree heat wave on the day causing an more than 160 years of racing at the year which finally received the full attendance loss of 10,000 plus people Park. However, it was the right decision support of the Racing Minister, Hon and a cost to the Club of $250,000. and one which will ensure the strength Michael Wright, who implemented its and growth of our Club and the industry adoption and requirement of a new This was then compounded by a similar into the future. independent Thoroughbred Racing SA heat affected Magic Millions Raceday Board in return for significant relief from with a further below budget result. Subsequently a request to the the Betting Tax paid to the Government. Government for financial assistance On a positive note for both the Club to the redevelopment of Allan Scott Park As a result the two shareholders and the industry in November we Morphettville was approved and of Thoroughbred Racing SA, viz. concluded our negotiations for the a $5,000,000 grant received. the South Australian Jockey Club disposal of Cheltenham. The successful We again express our appreciation and South Australian Racing Clubs tenderer was the Jennings/Urban Pacific to the Hon Mr Kevin Foley and his Council approved a new Constitution consortium with a tender of a Land Government for their invaluable support. and appointed a new Board of the Facilitation Agreement with a minimum Thoroughbred Racing SA in November. value to the Club of $85M. As I have As those members who have been Mr. Phillip Bentley became Chairman promised members the first payment to Allan Scott Park Morphettville recently and Mr. Greg Boulton became his will be used to extinguish the existing will have seen the new Pro-Ride training Deputy. They now have the onerous club debt. track and the grass racing track are responsibility of implementing the well under construction, with completion basic recommendations of the Bentley With this agreement in place and due in October 2008 and February Report which in principal requires a knowing we had to vacate Cheltenham 2009 respectively, and through the rationalization of the industry and in by February 2009 we moved our attention year we completed an upgrade to our particular the duplicated administrative to Victoria Park and the new facility we saddling enclosure. and operating functions of all the major were planning to undertake with the Clubs in South Australia. 4 The first significant result to date was rights sponsorship of Allan Scott Park I also wish to acknowledge and thank Bill an increase in prizemoney early in the Morphettville. As a result of Mr. Scott’s Crabb as Chairman of the Racing and year. This will be followed by a further benevolence the viability of the South Tracks Sub-Committee. A very important increase in November 2008 and thereafter Australian Jockey Club is enhanced input this year with our new as income from the investment of the and owners have received increased track development. proceeds of the sale of Cheltenham prizemoney as a direct consequence of becomes available. this sponsorship. On behalf of my Board Special appreciation must go to Wayne and all of us at the South Australian Jockey Francis who became chair of Marketing As noted earlier we have had a very Club I extend our sincere thanks to you last month, but who valuably contributed difficult year financially with a number of Allan Scott, your family and your Scotts all year to the Operations, Infrastructure, large unbudgeted and unexpected costs. Group of Companies Management. Racing and Tracks Sub-Committees. In addition to the effects of EI and the heat affected Adelaide Cup we also suffered All our sponsors are extremely important Similarly to Alistair McFarlane who also the withdrawal of a $325,000 budgeted to us and vital to our successful operation gave inestimable support to me and every grant by Thoroughbred Racing SA. of the Club. To each sponsor as featured area of activity of the club throughout the on the cover of this report, our thanks and year, and especially for his work on the However as a result of excellent cost appreciation is extended, and I would ask Finance, Operations and Racing Sub- control by our management and a every member to consciously support our Committees. significant above budget result in our sponsors products at all times.