2005ANNUAL REPORT 2005 RACING VICTORIA LIMITED ANNUAL REPORT ANNUAL LIMITED VICTORIA 2005 RACING Racing Victoria Limited Racing Victoria Limited 400 Epsom Road Flemington Victoria 3031 Telephone: (03) 9258 4258 Fax: (03) 9258 4707 Web: www.racingvictoria.net.au Email: [email protected] 2005 ANNUAL REPORT ACN: 096 917 930 400 Epsom Road Flemington Victoria 3031 Telephone: (03) 9258 4258 Fax: (03) 9258 4707 Web: www.racingvictoria.net.au Email: [email protected] Annual Report published by Harding Media Services Pty Ltd, designed by Scarab Blue Design and printed by Fineline Printing. Photography: Sam D’Agostino, Kristian Dowling, Andy Tavares. Photo by HWT, Melbourne RACING VICTORIA LIMITED 2005ANNUAL REPORT Contents Chairman’s Report 2 Board of Directors 6 Executive Team 9 Chief Executive Officer’s Report 10 Organisation 14 Integrity 18 Operations 28 Development 38 Services 50 Celebration 58 Corporate Governance 68 Financial Performance 74 Financial Report 77 racing victoria limited 1 2005 ANNUAL REPORT Chairman’s Report It is with great pleasure that I present Racing Another major milestone in 2004/05 was the Victoria Limited’s annual report and financial successful launch of ThoroughVisioN’s (TVN) statements for 2004/05. racing broadcast service. The expansion to a full live coverage of all thoroughbred racing events Victorian thoroughbred racing enjoyed a year of from Sydney, Melbourne and country Victoria great achievements, made possible by a highly from 4 May, 2005 heralded a new era in the constructive and cooperative relationship development of racing coverage. between RVL and its member shareholders – Country Racing Victoria, Melbourne Racing It is unfortunate that an earlier proposal for a Club, Moonee Valley Racing Club and Victoria joint venture with Tabcorp for the cooperative Racing Club. This positive collaboration across operation of both Sky Channel and TVN was not the industry was best illustrated by the historic realised and even more unfortunate that TVN decision by all parties to introduce a new system encountered so many problems in gaining for the distribution of thoroughbred racing’s access to distribution channels and outlets revenue from the joint venture with Tabcorp. required to make its service available to the widest possible audience. RVL is confident that The new system came into operation at the the TVN broadcast model will deliver the best start of the 2005/06 racing season and was long term outcomes for thoroughbred racing and the result of a mature and whole-of-industry its millions of patrons. The establishment of approach to identifying how best to allocate TVN has certainly been an experience for the racing’s primary income stream. It replaces a industry and could prove to be influential in how long standing distribution system that was racing elects to structure other spheres of its administratively complex and did not provide business in the future. flexibility to address innovation, development or capital needs. The new arrangements provide a Following the substantial consolidation of the fair and equitable scheme of distribution that national wagering marketplace last year as a supports the industry’s overall objectives and result of the Tabcorp-TAB Ltd merger, the promotes industry growth. In particular it is racing industry and wagering customers were expected to contribute to ongoing steady growth looking forward to quickly reaping the benefits in total returns to owners, as well as provide a of the co-mingling of the Victorian and NSW capacity for the industry to continue to support totalisator pools. Regrettably, unforeseen delays key industry activities such as international and complications arose to prevent the two racing development, enhanced integrity States’ wagering operations being combined measures and the operation of the Australian during 2004/05. Racing Museum. 2 racing victoria limited CHAIRMAN’S REPORT The regulation of wagering was the subject of a Bookmaking reforms were progressed during Savabeel wins the 2004 Carlton Draught Cox Plate landmark piece of legislation introduced during the year as RVL agreed to increase the number at Moonee Valley the Autumn 2005 Sitting of Parliament. The of available sports bookmaking licences, as part Racing and Gambling Acts (Amendment) Bill of the evolution of the Victorian sports was brought before Parliament by the Hon John bookmaking business within the national and Pandazopoulos MP, Minister for Racing, with the international market. RVL also worked in purpose of making a new offence that prohibits partnership with the Victorian government and wagering service providers not licensed in the Victorian Bookmakers Association to design Victoria from publishing Victorian thoroughbred and plan the introduction of an internet service race fields unless they have the approval of RVL. for race betting bookmakers. That service is on This legislation is a crucial tool in guarding target for commencement in 2005/06, subject against wagering service providers whose to satisfying a number of regulatory and operations pose an unacceptable risk to the commercial requirements. integrity of Victorian thoroughbred racing, or Victorian racing enjoyed an outstanding year on which fail to make an appropriate economic the world racing stage with Karasi winning the contribution to the industry. The legislation has Nakayama Grand Jump in Japan, Elvstroem attracted broad commendation from the winning the Group One Dubai Duty Free in international racing community, including the Dubai, Mummify winning the Singapore International Federation of Horseracing International Cup and Alinghi winning the Authorities and the Asian Racing Federation. Group Three Ballston Spa Breeder's Cup In the same Sitting, the Minister also introduced Handicap in the USA. This Victorian quadrella is the Racing and Gaming Acts (Police Powers) Bill a credit to our local participants and reinforces for the purpose of empowering Victoria Police to the value of the two-way street that the exclude certain persons – where it is in the internationalisation of racing presents. public interest – from attending race meetings at specified racecourses. This is another welcome measure to protect the integrity and probity of thoroughbred racing. racing victoria limited 3 2005 ANNUAL REPORT The inaugural Global Sprint Challenge – On the investment attraction side, the regular featuring premier racing in Japan, the United flow of trainers, owners and breeders migrating Kingdom, Victoria, and next year Hong Kong – into Victoria has continued and we are working is a perfect example of the promotion of our sport hard at maximising this important economic at the highest possible level. Congratulations contribution from international and interstate must go to the connections of the winner of the investors and participants. 2005 Challenge, the Hong Kong-trained Cape of The export performance and general economic Good Hope. Entered in five of the six Challenge value of the breeding sector has come under the races, the seven year old won the Timbercorp spotlight of the Victorian Parliament’s Economic Australia Stakes at Moonee Valley in February Development Committee. RVL commends this and the Golden Jubilee Stakes at York’s Royal review and has been an active contributor to the Ascot meeting in June. consultative process, in collaboration with RVL remains committed to supporting this Thoroughbred Breeders Victoria. We anticipate important series and helping to develop other that the Committee will formulate productive major international events, such as the Asian recommendations for the Victorian Government Mile Challenge. and industry to jointly implement – especially in relation to lifting the profile of the Victorian sales. Victorian thoroughbred racing enjoyed a year Sadly, March 2005 will always be remembered of great achievements, made possible by a highly for the tragic deaths of Victorian jockeys Adrian constructive and cooperative relationship Ledger and Gavin Lisk following race falls at []between RVL and its member shareholders. Corowa and Moe on consecutive days. Their loss was felt right across the industry with the racing community rallying around to provide In acknowledging the season’s international immediate and long term support to the Ledger highlights, it was tremendous to see the and Lisk families. Our deepest sympathies and Godolphin stable rewarded for its regular thoughts remain with these racing families. participation in the Spring Racing Carnival by Industry safety remains the highest priority of winning the Group Two Queen Elizabeth Stakes Victorian racing and there was solid progress at Flemington during the 2004 Melbourne Cup made by the industry, working closely with the Carnival with Fantastic Love. Victorian Jockeys’ Association, Australian Our international interests extend well beyond Trainers Association, WorkSafe and the race competition and include a concerted plan to Victorian Workers Union. Victoria is also a promote business connections that benefit participant in a National Jockey Safety Review Victorian racing’s export trade and investment- Steering Committee, which is examining a range attraction performance. RVL was selected by of measures for minimising riding risks. the Kingdom of Bahrain to prepare a feasibility Safety improvements in jumping racing continued study for a revamp of Bahrain racing. The into the 2004/05 season with the unveiling of a outcome could create any number of export third generation of the