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8EEL8C I<GFIK 8EEL8CI<GFIK J\Xjfe)''-&'. SAJC BOARD MEMBERS Ê >vwi /À>ÛÃÊVi> Ê À>LLÊÞ - >ÀÊÀÀiÃÌiÀiÃ/À>ÛÃÊVi>Þ Chairman ViceÊChairman Deputy Vice Chairman *iÌiÀÊiÜà - >ÀÊÀÀiÃÌiÀiÃ Ê À>LLÊ 7>ÞiÊÀ>Và Retired 22nd May 2007 >Û`Ê,>à ii` ÃÌ>ÀÊV>À>i Ê-«i>À 2 CONTENTS South Australian Jockey Club Inc. Chairman’s Message 4 Chief Executive Offi cer’s Report 6 Racing Review 8 Group One Winners 10 Group and Listed Winners 2006/2007 11 Marketing Report 14 Financial Report 16 Notes to the Financial Report for 2006/2007 22 Report by the Board 36 Statement by the Board 36 Independent Audit 37 Five Year Statistical Summary 38 Her Excellency Marjorie Jackson - Nelson AC, CVO, MBE Governor of South Australia, SAJC Patron Robert Gerard AO SAJC Patron 3 CHAIRMAN’S MESSAGE and will soon complete the wind break and air into a new three storey facility for members locks in front of the fi rst fl oor doorways to the and the public. The building cost to the SAJC Chairman viewing stand area. of $10M for both options is similar but of ne course we do not have the signifi cant benefi ts The Adelaide Cup was the highlight of the year of the larger more exciting new $30m+ building in which we benefi ted from the move to March and infrastructure that the Government would with admissions increasing by 10.3% compared provide. Under this option the SAJC will not John Naffi John to last year. The only negative to this great day be compelled to redesign and build a new track of racing was that our tote betting revenue was as would be the case under option one. down 5.7%, as compared with an increase in Dear Members bookmaker revenue of 22.7%. Most members would be aware of the Bentley Report which came out in April this year. In I am pleased to present to you, on behalf of the Our Super Sunday, while providing essence this recommends a rationalisation of Board, the Annual Report and Statement of outstanding quality fi elds and the best racing of the Industry, particularly at the provincial Accounts for our Club for 2006/2007. the year suffered from inclement weather and level, with a revised TRSA Principal Body and the attendance was disappointing. However, Board with a charter to manage the operations This year has certainly been a defi ning and we still believe that this day will continue to and assets of the SAJC and provincial with indeed a trying one for the Club and the Board grow and be a very important part of our racing estimated savings to the Industry of in excess of with many projects brought forward from year in the future. $1M, which will fl ow through to prize money. last year still not fi nalised and a number of unforeseen one-off issues that have affected our This year the Cheltenham sale progressed Most importantly and perhaps the most profi tability with the result that our year ended positively, albeit slowly due to the many signifi cant issue is that the government, as an with a net operating loss of $312K. regulatory complexities, to the point where we incentive to the Industry to adopt the report’s were able in July to go to the marketplace for initiatives and associated savings as an outcome, The details behind this are fully covered in formal Expressions of Interest to be submitted will eliminate off course betting turnover tax. the Chief Executive Offi cer’s report and the by developers. In essence this represents an increase of TAB fi nancial report, and it is suffi ce for me to distribution over time to thoroughbreds of identify the key factors. These were: the Expressions of Interest are due to be received approximately $5M per annum, most of which continuing downturn in our on-course raceday in August and the evaluation process will will go into prize money. tote revenue; a substantially increased excess be conducted under the strict scrutiny of an water cost; the continuing downturn in betting independent probity offi cer in association As a result of all the above initiatives, owners in our Anzac Highway Junction wagering with our appointed property adviser Realty can reasonably expect at least an average auditorium; and a signifi cant blow-out in our Solutions Australia and legal adviser Minter $10,000 increase in all open races on a prize money support for the Magic Millions Ellison, together with a sub-committee from Saturday and at least $5,000 on restricted races. Race Day and the Allan Scott races each week. the South Australian Jockey Club. These increases are essential to maintain the health of our Industry and certainly justify the However, we also achieved some very positive The fi nal recommendation of the Board in efforts of many people and especially the South results in our functions and catering areas with regard to identifying the successful bidder, Australian Jockey Club to ensure these become a net contribution just over $1M and our net after a comprehensive evaluation process, will a reality. gaming venue contribution at both venues was then be tabled for approval on behalf of the nearly $2.2M. membership by Robert Gerard AO, Robert Without prize money growth we will also risk Hill-Smith, Wolf Blass AM and Harry Perks. losing Black Type racing status as the quality Without this non-racing surplus it is clear that The Board will only execute the sale process of horse competing reduces. We have already our Club would be seriously unprofi table and upon these gentlemen, as representatives of the had our Adelaide Cup down-graded and we unable to support the continuous improvement Club’s membership, agreeing to the offer and now have at risk the SA Derby, the Australasian of its facilities for members, trainers and conditions of sale. Oaks and the Yallambee Classic, together with owners. a number of listed races. For so many reasons Should the sale proceed the SAJC will then be the importance of achieving prize money Last year the Club spent $2.4M on capital in a position to fi nalise negotiations with the growth cannot be over emphasised. improvements and this year a further $1.5M, Government for the new building and track which included the renovation of the mounting development at Victoria Park. Members are Your Board continues to look at infrastructure yard to give increased room and safety to the reminded that should the master development capital development which can either owners and trainers, plus more room in front of plan for Victoria Park fail the SAJC will revert benefi cially reduce costs or gain in new revenue the Diva Lounge. We also have just completed to its second option, as outlined to members, growth. One such development approved and a new kitchen to service the Tapestry Pavilion to totally renovate the existing members stand which will hopefully be in place in time for the 4 CHAIRMAN’S MESSAGE Adelaide Cup in March is a new permanent to grow this Group 3, 1600 metre race into benefi ciary today. As a result it will be fi tting pavilion along the Derby straight, which has Group 2 in the future. that Peter is elected to life membership by been demolished. Members at our Annual General Meeting. This 45 metre wide structure will be similar to At this point I must again pay tribute to our I wish to also acknowledge the most valuable but bigger than the successful Tapestry Pavilion major sponsor Mr Allan Scott AO OAM. The contribution of all the Board members in and hold over 600 people upstairs and a similar SAJC and indeed the racing industry at large this especially active year and in particular a number downstairs. This building will save are indebted to Mr Scott and the Scott Group special thank you to Wayne Francis who led the need for temporary marquees to be erected of Companies for his very valued sponsorship negotiations with new sponsor Lion Nathan for the Adelaide Cup, Melbourne Cup and pertaining to the naming of Allan Scott Park with increased benefi ts to our Club and to Magic Millions, consequently alleviating the Morphettville. Mr Scott’s generosity has far David Rasheed as our Chairman of Finance need for excessive hire costs. However, the real reaching benefi ts, not only the viability of whose unselfi sh and untiring input in all areas, income benefi t will be the ability to host the the SAJC but also to the many owners who and in particular the Cheltenham tender growing demand for functions of more than have been fortunate to be the recipients of negotiations, were invaluable and of enormous 500 people which we cannot accommodate in increased prize money as a consequence of benefi t to the Club. the Tapestry Pavilion or for that matter in the this sponsorship to the tune of $250,000 over main grandstand. the course of this year. To you Mr Scott, your Similarly, I wish to thank Travis McLeay, family and management of the Scott Group of Sharon Forrester-Jones, and Bill Crabb as We also plan an extension to the Trackside Companies, on behalf of all of us at the SAJC Chairpersons of our respective Infrastructure, Dining area to capitalise on the growing and the greater racing industry, a sincere Marketing and Track sub-committees for demand and reduce the push rearward into the thank you. further contribution within their portfolios and member’s area to accommodate this demand. to myself in this demanding year.
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