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WAIKATO RACING CLUB INC Ken Browne Drive, Te Rapa, 3200 PO Box 10050, Te Rapa, 3241 07 849 2839 Teraparacing.Co.Nz BOARD of DIRECTORS

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WAIKATO RACING CLUB INC Ken Browne Drive, Te Rapa, 3200 PO Box 10050, Te Rapa, 3241 07 849 2839 Teraparacing.Co.Nz BOARD of DIRECTORS WAIKATO RACING CLUB INC Ken Browne Drive, Te Rapa, 3200 PO Box 10050, Te Rapa, 3241 07 849 2839 teraparacing.co.nz BOARD OF DIRECTORS Karyn Fenton-Ellis MNZM (Chairman) Geoff Buchan, Marcus Corban, Bruce Darby, John Estob, Glenn Holmes, David Kneebone, Steve Rowe, Gilbert Southworth CHIEF EXECUTIVE OFFICER Andrew Castles AUDITORS Crowe Howarth (Crowe NZ Audit Partnership) COVER (L) TE AKAU SHARK (R) TIPTRONIC WAIKATO RACING CLUB INC CONTENTS Ken Browne Drive, Te Rapa, 3200 3 - Chairman’s Report PO Box 10050, Te Rapa, 3241 7 - CEO’s Report 07 849 2839 teraparacing.co.nz 11 - Statement of Comprehensive Revenue & Expense 12 - Statement of Cash Flows BOARD OF DIRECTORS 15 - Consolidated statement of changes in Net Assests/Equity Geoff Buchan, Marcus Corban, Bruce Darby, John Estob, Karyn Fenton-Ellis, 16 - Statement of Financial Position Glenn Holmes, David Kneebone, Steve Rowe, Gilbert Southworth 18 - Major Partners 19 - 2019/20 Group Race Roll of Honour CHIEF EXECUTIVE OFFICER Andrew Castles AUDITORS Crowe Howarth (Crowe NZ Audit Partnership) COVER (L) TE AKAU SHARK (R) TIPTRONIC 3 GRP2 LEGACY LODGE WAIKATO GUINEAS TWO ILLICIT CHAIRMAN’S REPORT This time last year, I quoted Charles Dickens – the WRC’s day to day operations – as a racing club, opening paragraph of “The Tale of Two Cities” as a commercial landlord, as a property developer. At the national level, our industry was in financial “It was the best of times, it was the crisis and the crucial injection of a $72 million worst of times. It was the season of support package, driven by the Minister for light, the season of darkness.” Racing, Rt. Hon Winston Peters, staved off impending disaster. There can be no expectation None of us then, could have foreseen the year of any further such level of support in the future that was to come. This past season has been one – the future is now entirely the industries to make like no other, certainly in our lifetimes. For many or break. reasons, all of which you are acutely aware, it has been an extraordinary period – not only in the However, in any part of life, it’s our reaction to history of the Waikato Racing Club (WRC) but adversity – not adversity itself – that determines also in the history of our nation and indeed our how our story will develop. world. Leadership has never been more critical than it is THE BIGGER INDUSTRY PICTURE … today. We are only as strong as the leaders we provide to the industry, the people we encourage The Messara Report set a framework for the and support to assume pivotal roles at every future of our industry – and COVID-19 threw level of racing. Identifying leaders of quality, a spanner in those works, creating operational to appoint to key industry roles, must be a top and commercial havoc for our industry as well as priority for us all looking ahead almost every other business in New Zealand. THE LOCAL LANDSCAPE … The uncertainty and the unpredictability of unchartered COVID-19 waters saw the racing In late December, the Board appointed Andrew industry close its doors and cease to operate Castles as the Club’s new Chief Executive, during New Zealand’s enforced lockdown period replacing Ken Rutherford who had accepted a and beyond. With that came a raft of domino-like similar role in Australia. As we bade farewell to effects, not least of all the severe impact on the Ken and thanked him for his service, we were 5 delighted to welcome Andrew, his wife Tess and foster closer regional relations between the recommendations and decisions of this magnitude their two children to the Waikato. three Clubs and also investigate the Greenfields’ must be based on facts, not emotion, and well proposition, as well as all viable alternatives. researched and robust information. Andrew is recognised as one of the most PricewaterhouseCoopers was commissioned to effective, intelligent and experienced racing undertake this independent research. DAY TO DAY LIFE MUST GO ON ... administrators in the Southern Hemisphere Your Board’s position throughout this process Our Chief Executive has commented further on In the period before Andrew was able to join was always very clear: we would not make a number of key operational achievements and the WRC, Director John Elstob assumed the recommendations to our Members on any future projects in his report. role of Acting CEO and was superb in keeping direction, including disposal of our significant the organisation functioning seamlessly. We are assets, without accurate, well-researched and As you will read, industry challenges and the indebted to John for taking on this responsibility independent information that investigated all COVID-19 landscape with its subsequent loss/ for some three months in a voluntary capacity, options available to this Club. reduction of race meetings, sponsorship and ensuring a smooth transition was achieved. rental income made this year a tough one The final report from PricewaterhouseCoopers financially. In light of this, to deliver a small Lockdown and Andrew arrived almost has clearly identified a shortfall in the vicinity of operating profit prior to depreciation and financial simultaneously at the Club! A true ‘baptism of $50 million for a Greenfields’ development – this servicing is satisfying. fire’ for our new CEO. The WRC was indeed was taking into account the sale of all assets of fortunate in having a CEO of such competence at the three Clubs. That figure in our view made a When racing resumed after lockdown, the WRC the helm during the tumultuous COVID-19 and current Greenfields’ proposition a high-risk option was one of a small and select number of Clubs to the lockdown/alert level times. and at a meeting of the three Clubs, the decision stage the industry’s ‘return to racing’, with racing was made to postpone discussions around any held initially behind closed doors. We gratefully The Messara Report contained a number of such concept for 12 months. acknowledge that some essential emergency recommendations that impacted the local industry funding was distributed by RITA to the clubs and, in turn, the WRC. The PricewaterhouseCoopers’ report did however involved in the ‘return to racing’. identify positive aspects around the further Members will be very aware of the on-going development of the current Te Rapa property. In Our property holdings continue to be vital to discussion around a potential Greenfields’ tandem, a high-level master plan has identified our operation as a racing club. The planned development. The WRC Board, supported by significant future opportunities and value around development of a new childcare facility will have Members, has always believed that we need our WRC property holdings. Your Board will be in a positive financial impact in the future and this to determine our own destiny. We know that a position to provide its thoughts on this topic in project has now been given the green light by the we have the capacity to achieve this and the the New Year. Hamilton City Council. fortitude to deliver on it. At that time, we will look forward to having a THE TE RAPA TEAM & SUPPORTERS… The steering group “Thoroughbreds Waikato” serious and informed conversation with you compromising three representatives from each about what our future can be. As mentioned, Andrew’s contribution since his of the Cambridge, Waipa and Waikato Clubs appointment has been exceptional. continued to meet during the year. The aim The process has been a somewhat costly one of this group, as I mentioned last year, was to however it has been ‘money well spent’ – To our other key senior members of the team – for the faith and confidence you have placed in To my husband, past WRC Chairman and Life Charlotte Mooney and Bart Cowan, your skill, me. It is a role I have taken very seriously and Member David Ellis CNZM – we were proud to determination and adaptability during such a always approached with diligence and integrity. learn of your Royal Honour in this year’s Queen’s trying year has been outstanding. Birthday Honours’ List. Usually you are not The WRC occupies a huge part of my heart and mentioned in these dispatches, but as I stand I wish to formally thank this trio, led by Andrew, these years will remain among my most treasured down as Chairman, it is appropriate. for unilaterally deciding to forego a significant lifetime memories. I have been proud to lead a percentage of their salaries during the COVID-19 dynamic and truly passionate Board. You have dedicated your life to this industry and time to assist and support the Club. I know how proud you are of this Club. We have Like everything in life – there is a time for change, that deeply in common. The WRC has occupied I have said it before - the WRC team would be and I believe that time is now. The next chapter so much of my thinking and life over the past the most streamlined to be found for a Club is ready to be written under new leadership for decade and the support that you, and our two of our size, with the race day licenses we hold, we grow through change. daughters and their husbands have given me anywhere in the country. means the world. The past is precisely what it is and that does not To our loyal family of sponsors – many individuals change. However, we can direct the future and They say “effective leadership is not simply as well as businesses – your contribution is that future looks bright. about making good speeches or being liked – it is greatly valued by the WRC.
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