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REPORT 2013 Mission & Objectives

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REPORT 2013 Mission & Objectives Harness Racing NEW SOUTH WALES ANNUAL REPORT 2013 Mission & Objectives Mission • Maintain an effective regulatory and governance framework • Maximise the opportunity for reinvestment • Provide a platform for increased participation Objectives • Increase prizemoney • Develop a more sophisticated funding model • Maximise the income earned from wagering • Invoke consumer confidence and lift the industry’s profile • Expand animal welfare strategies • Implement the optimal racing schedule • Showcase country racing • Introduce regional concepts • Stimulate the breeding sector • Improve efficiencies and maximise cost savings 2 Contents Chairmans Message Page 4 Chief Executive’s Report Page 8 Racing Highlights Page 11 Review of Operations Page 14 Finance Page 14 Racing Page 22 Integrity Page 33 Marketing Page 36 External Relations Page 42 NSW Mini Trotting Association Page 44 NSW Standardbred Owners Association Page 47 Harness Breeders NSW Page 51 United Harness Racing Page 53 Corporate Structure Page 55 Corporate Governance Page 57 Financial Statements Page 60 Design & Production Availability PMG Media Pty Ltd The 2013 Harness Racing NSW Annual Report is Text & Photography available on the Harness Racing NSW website All text & photography copyright of Harness Racing NSW 2013 www.hrnsw.com.au 3 GRAEME CAMPBELL 4 Chairman’s message The new fiscal year and subsequent racing season last in a field of 14 was, indeed, incredibly special. brought with it an air of optimism following the integrity Of course the Inter Dominion was just one of seven challenges we confronted during the previous 12 Group 1 events decided on the day. In all, a record months. breaking $2 million in prizemoney was distributed. With the fullness of time Harness Racing NSW The Inter Dominion meeting also provided us with a (HRNSW) can be well satisfied with the way these fascinating insight into shifting betting trends and the unfortunate actions were managed as we set out evolution of customer preferences. to not only fully investigate them, but to ensure the correct protocols and procedures were put in place In all, just over $9 million was invested with Australian so that such fraudulence is never repeated. wagering operators across the program’s 10 races. Naturally this was a very pleasing result, but it is the In addition to the comprehensive HRNSW breakdown of these figures that created the most investigation, NSW Police initiated Strike Force Tairora interest. which resulted in numerous arrests, convictions and, in some instances, custodial sentences. Turnover on the NSW TAB equated to 25% of the total turnover; fixed odds turnover was 30% of the total The importance of the relationship between HRNSW turnover through the NSW TAB; total turnover from and NSW Police cannot be overstated. This, when all wagering operators was a massive 44% higher combined with a doubling of our integrity budget to than the corresponding Inter Dominion Grand Final $1.4 million, provides the platform for the strongest meeting in 2010. and most far reaching regulatory outcomes. Of course the NSW TAB remains HRNSW’s The additional funding was used for various integrity predominate funding source. In FY13, total turnover strategies including the appointment of a dedicated on our product through the NSW TAB increased by form analyst, surveillance, external investigations, $5.56 million or 3%. This was achieved by an increase additional staff, out of competition testing, frozen in fixed odds betting of $22.61 million which more sample storage and, most importantly, an increased than offset the decline in pari-mutuel turnover of number of race day swabs. $17.05 million. On a more inspiring note, the 2013 Inter Dominion Meantime our female participants continued to was a superb event. be more than just competitive against their male counterparts. The revamped series was 18 months in the making and the result of a tripartite commercial accord Amanda Turnbull surged to a comprehensive win between Destination NSW, the NSW Harness Racing in the state-wide Drivers Premiership, while Lauren Club (NSWHRC) and HRNSW. Panella had an amazing run of success in the second half of the season to finish runner-up. Ms Panella also The new format provided two significant television honed her talents with a polished riding display to win broadcasts – the Sky 2 coverage of the Qualifying the International Monte race on Breeders Challenge Heats and the Channel 9, Wide World of Sports, day. national telecast of the Grand Final. It was the first time an Inter Dominion Grand Final had been seen In the metropolitan area the husband and wife live on free-to-air television for 25 years. team of Luke and Belinda McCarthy dominated the driving and training ranks with easy victories in the While the structure of the 2013 series didn’t please respective premierships at Tabcorp Park Menangle. everybody, there was no disagreement about the Steve Turnbull claimed a runaway win the state-wide astonishing winning performance by the West Trainers title. Australian champion Im Themightyquinn in the “decider”. To see a horse romp home to victory from The Breeders Challenge continued to grow as a 5 brand and its worth can be measured, in part, by Most positively, total prizemoney paid in FY13 was the increased success of locally bred horses on the $31.34 million. This compared extremely favourably national stage. with the total prizemoney paid in FY12 of $27.21 million or an increase of 15.2%. Unsurprisingly it was For the first time the Alabar Breeders Challenge the first time total prizemoney in NSW climbed above Finals carried $100,000 divisions for both 4yo entires/ $30 million. geldings and 4yo mares. We look forward to the introduction of the Breeders Challenge Nominator’s This major boost became possible as a result of the Bonus next season which, once fully rolled out, will new income stream achieved by the NSWHRC from return $1 million per year to breeders. the sale of Harold Park and the availability of Race Fields income following the High Court victory in 2012. In the 2012/13 season HRNSW developed a partnership with the well known Australian rock artist Shannon HRNSW finished the year with an interim surplus Noll. It proved to be a great success and provided of $205,000 despite the fall in interest rates which strong awareness for the meetings he performed at are important to supplement our income through and was matched by increased attendances. We look investments. forward to announcing a similar venture in 2013/14. In summary, FY13 was a pleasing period, however Additionally, Shannon starred alongside Ashlee Siejka many challenges remain. HRNSW will release its in a television commercial which was well received Strategic Plan during FY14 outlining our future locally and won an award at the World Trotting objectives and identifying the strategies designed to Conference in Paris. achieve them. It has been well documented that HRNSW received In closing, I would like to acknowledge the Hon $25 million from the sale of Harold Park. That money George Souris, the Minister for Racing, for his efforts has been set aside for an infrastructure program which and support of the harness racing industry. includes new facilities at Bathurst, Wagga, Tamworth and Menangle Park (training centre) and upgrades I would also like to thank my fellow Board Members, at Goulburn (completed), Penrith, Newcastle and Mr Chris Edwards, Mr Graham Kelly, Mr Alex Smith potentially Hawkesbury (as a training centre). and Mr Rod Smith as well as the management team and staff at HRNSW under the leadership of Chief The first “sod” of soil has been turned at Bathurst Executive Sam Nati. with the project likely to be completed in June 2014. It is a very exiting outcome for the western districts region which represents a significant percentage of the overall industry. The Menangle Park Training Centre will complement the World class racing precinct developed “next door” GRAEME CAMPBELL by the NSWHRC. CHAIRMAN 6 7 SAM NATI 8 CHIEF EXECUTIVE’s REPORT The positive resolution of the Race Fields litigation in Prizemoney in the Hunter increased by more than March 2012 provided the platform for greater fiscal $400,000, in the metropolitan/provincial area by certainty and allowed Harness Racing NSW to prepare more than $3 million (predominantly as a result of the a meaningful FY13 budget which ultimately delivered Principal Club’s investment income from the sale of a $205,000 surplus. Harold Park), in the North West by more than $60,000, in the South West/Riverina by more than $200,000 This was indeed a major step forward for the industry and in the Western Districts by more than $200,000. on the back of declining real terms income from our traditional funding source since FY06. The average prizemoney return per starter was $7,724 in FY13 up from $6,882 in FY12 while the number of Notwithstanding that, the wagering landscape horses that earned $10,000 and above increased from remains in a state of flux with significant, but unique, 19.4% to 21.2%. year on year events. The viability of the racehorse population is an The TVN blackout, equine influenza, the growth of important measurement and imperative to future corporate bookmakers, Sky 2 and the introduction handicapping and programming strategies. and expansion of fixed odds have all significantly impacted turnover trends and outcomes over the past Working on the Inter Dominion with Destination eight years. NSW and the NSW Harness Racing Club was extremely rewarding as was the development of the And fresh challenges are ever present with offshore two broadcast events associated with the revamped operators posing a genuine threat to our future revenue Championship. streams although Tabcorp’s PGI international pooling arrangement in the Isle of Man has the potential to To see the great race live on Channel 9’s Wide World of deliver HRNSW $1 million in revenue in FY14.
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