Annual Report 2006
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annual report 2006 MISSION VALUES – To develop Flemington as a world- – Integrity in our decisions and actions class racing venue – The highest standards in service and – To build upon the pre-eminence of value for our customers and business the Melbourne Cup Carnival partners – To maximise fi nancial returns from – Competitiveness in our markets our racing and non-racing activities – Effi ciency in the management of for the benefi t of the Club, its our assets Members, the Racing Industry – The commitment and the contribution and racegoers of our people – To provide fi rst-class entertainment – A safe working environment for and wagering opportunities for our employees and industry participants customers – To maintain the highest integrity in all of our dealings and activities Our vision is to be a leader in world racing CONTENTS 2 Chairman’s Report 5 The Committee 8 Victorian Racing Industry Review 10 Chief Executive’s Report 15 Senior Management 17 Membership Department 21 Racing 25 Flemington Racecourse 29 Strategic Marketing 33 Sponsorship and Corporate Development 35 Sponsors 37 Catering 39 Business Development 42 Human Resources 43 Finance 44 Corporate Governance 46 Report of the Committee 47 Financial Statements Phar Lap THE STORY OF PHAR LAP IS TRULY The wonder horse then travelled to Mexico ONE OF LEGEND for what was to be his last race. Taking on Born during the era of the Great Depression, America’s best horses in the Agua Caliente Phar Lap was the ‘people’s horse’ and the Handicap, Phar Lap scorched over the dirt public, desperate for a hero in those trying track in record time to blitz his opposition. times, followed his every move. He was the toast of the US but tragically, He raced 50 times in Australia for 36 wins just days later, the horse died in mysterious and during the 1930 Melbourne Cup circumstances in California. Carnival was to achieve what no other horse Seventy-four years later, the legend of had done either before or since when he won Phar Lap remains as strong as ever and his races on each of the four days. The highlight statue greets visitors at the main entrance was his win in the Melbourne Cup when he to Flemington Racecourse. started the shortest priced favourite in Cup history – 11 to 8 on – and treated his rivals with contempt. Phar Lap and Makybe Diva – Australian racing legends Makybe Diva MAKYBE DIVA – The pair had proven a devastating A CHAMPION BECOMES A LEGEND combination, winning race after race at Flemington’s race caller Greg Miles said it Group 1 level from 1,400 metres to 3,200 all – ‘A champion becomes a legend.’ Miles’ metres. As well as her three Cup wins, her call captured a moment in history as the Flemington record included victories in magnifi cent mare Makybe Diva went the Australian Cup, Turnbull Stakes and where no other had, winning a third Queen Elizabeth Stakes. Melbourne Cup. A handful of horses had Following her win in the 2005 Emirates done it twice, but no other had even come Melbourne Cup, Makybe Diva was retired close to winning it a third time, yet Makybe as the highest ever prizemoney winner in Diva was to do it with ease, jockey Glen Boss Australian racing. A statue in her honour simply shaking his head in disbelief. has been commissioned by the Victoria Racing Club (VRC) and will stand in the horse stall area at Flemington. Above: Jockey Glen Boss and champion mare Makybe Diva after winning the 2005 Emirates Melbourne Cup. Above: Jockey Jim Pike and the mighty Phar Lap 1929 winning the Victoria Derby. 1 Chairman’s Report “ Flemington played host to some world-class racing this season and the Club distributed a record amount in prizemoney” On behalf of the Committee, I am pleased It is regrettable that a satisfactory outcome to report to Members of the Victoria Racing could not have been achieved earlier, Rod Fitzroy Club for the year ended 31 July 2006. During however, the shareholders of TVN were the year, the ongoing dispute between committed to ensure that the settlement Tabcorp and ThoroughVisioN (TVN) adversely terms did not compromise TVN’s capacity impacted on betting turnovers and, as a to play a vital role in the future development consequence, distributions to all Victorian of thoroughbred racing. racing clubs. It is therefore pleasing that I We now look forward to TVN establishing am able to report to Members that the Club itself as the dedicated thoroughbred channel, generated a net surplus from its operations providing not only a comprehensive coverage 0.909 for the year of $ million. of Australia’s premier race meetings, but The Club distributed in prizemoney 136% also international racing. The VRC believes of the revenue received by way of the there is great scope to generate additional Racing Victoria Limited (RVL) shareholder revenues through reciprocal co-mingling or distribution agreement, a record since the common betting pools, which would operate benchmarking of returns to owners was on premium racing around the world. 10 instigated some years ago. I would like to place on record my Prior to the commencement of the Season, appreciation for the outstanding a distribution review was undertaken by contribution made to the resolution of RVL and its shareholders. The new model this dispute by our Vice Chairman – Peter will determine distributions for the next Barnett, Committee Member – Michael Burn, three years. Whilst reducing the VRC’s and other representatives of the shareholder entitlements, the revised distribution Clubs from Victoria and Sydney. system was agreed on unanimously by RVL, During the year, the VRC formed strategic the three metropolitan clubs and Country alliances with a number of the world’s Racing Victoria (CRV). leading racing clubs, providing opportunities The resolution of the TVN/Tabcorp dispute for our Members when travelling to have emerged as the number one priority for access to premium facilities at racecourses the Club during the year. The impact on operated by our alliance partners. Other wagering turnover through the ‘split screen’ benefi ts of the alliances are facilitating picture delivery at pubs, clubs and agencies staff exchanges and the sharing of was of concern, but of equal concern was the intellectual property. We expect to build our inability of so many people to view Victorian international affi liation program during the and Sydney racing on their pay television 2006/2007 Season. network, particularly those in regional and As detailed in our General Manager’s rural Australia. Racing Report, Flemington played host to some world-class and exciting racing during this Season. 2 It was, however, the achievement of • A highly competitive and quality Winter We were most gratifi ed that the Australia’s Champion Racehorse – the jumps series featuring eight premium Government fully recognised the need to mighty mare Makybe Diva – that has races collectively offering total prizemoney ensure a smooth transition of the Club’s left those who were privileged to be at of $1.2 million. operations. The enabling legislation, the 2006 Flemington on Emirates Melbourne Cup I would like to congratulate the Australian Victoria Racing Club Act , passed Day with memories that will surely be with Jumping Racing Association and RVL through both Houses with bipartisan them for life. Her dominant win and the support enabling the Club to commence for their leadership in restructuring the manner in which she accepted the plaudits operations from the start of the 2006/2007 programming of jumps racing in Victoria of the crowd in front of The Members’ Stand Season as an incorporated body. and, in doing so, providing substantial are images that set this day apart from all incentive for more owners and trainers to We are indebted to the Offi ces of both the others in recent racing history. become involved in this traditional and Premier and the Minister for Racing for In recognition of Makybe Diva’s record- exciting component of Autumn and Winter guiding the legislation through both Houses. breaking achievement in winning three racing in Victoria. It was most satisfying to read in Hansard the consecutive Melbourne Cups, the Committee, individual contributions of those who spoke The VRC is fortunate to have a collection in partnership with the State Government, to the Bill recording the important role that of documents, paintings and trophies that has commissioned a statue of the mare that the VRC has played in public life in Victoria record not only the history of the Club, but will be located adjacent to the new horse for well over a century, together with their also those who have become part of racing stall precinct, which will be completed prior confi dence in the current administration history through their deeds on the track. to the return of racing to Flemington in and our continuing conduct of the affairs This year, we were delighted to have the September 2007. It is intended that the of the Club. 1955 statue of Makybe Diva will strike a pose opportunity to acquire the Melbourne 30 2006 OAM, Cup Trophy from the Kerr family, who owned On June , Mr Douglas Hugh Reid that has her overlooking the track where in accordance with the Rules of the Club, 2003, 2004 2005 the winning horse, Toparoa. Toparoa’s victory she created history in and . retired from the Committee after 28 years will be remembered as much for the trainer Other racing highlights this year were: of outstanding service. and jockey, as they were to go on from • The 2005 Melbourne Cup Carnival, which this victory to become two of the greats in During his term, Mr Reid served the Club attracted the highest ever four-day Australian racing history – (TJ) Tommy Smith as a member of the Australian Stud Book attendance of 383,784, with record crowds the trainer, and Neville Sellwood, the jockey.