SOUTH AUSTRALIAN JOCKEY CLUB Annual Report 2019/2020 THERE’S SO MUCH MORE TO MORPHETTVILLE Contents Chairman’s Report 4 Chief Executive Officer’s Report 8 Chief Financial Officer’s Report 18 Club Operations 24 Our Partners 26 Season Review 30 Feature Race Day Winners 32 SAJC Board of Directors 34 Audited Financial Statements 37 Notes to the Financial Statements 40 Report and Statement by the Board 56 Auditor’s Report 58 Chairman’s Report 2019/20 CHAIRMAN Bob Holton 2019/20 has been a year of contrast for the South Australian Jockey Club (SAJC). Like all involved in the racing industry, the Club has been required to navigate the significant challenges of COVID-19, which has seen necessary restrictions placed on our daily lives and social activities. However, in the face of these challenges, the Club and the industry has endured with great persistence and fortitude. While this has required the Board and management to make some difficult decisions, we are confident that these actions, combined with our continued focus on our strategic plans, positions us well for the future. Whilst recently we have not been able Government Funding Financial Performance to entertain members in the traditional The Point of Consumption (POC) SAJC management, led by CEO Grant fashion due to necessary restrictions on Tax remains a key issue that TRSA is Mayer, has continued to work tirelessly to social activities, your continued support has committed to working through with the SA restructure the Club’s business model with also been integral to ensuring our ongoing Government. In 2019/20, TRSA prepared a a strong focus on cost efficiency and future viability. The industry’s many participants, submission to the Department of Treasury viability. A key aspect of this has been under the auspices of Thoroughbred Racing and Finance highlighting the importance working toward increasing profitability SA (TRSA), also deserves credit for quickly of the racing industry in generating $360M across our hospitality operations, adapting to the new reality and keeping of economic benefit and employing more particularly on racedays. Pleasingly, despite racing going while other sports were forced than 3,000 people across South Australia. the financial pressures of COVID-19, to cancel or postpone. This has been of Subsequently, as part of the 2020 Budget, it the Club’s prudent approach to financial enormous importance to the more than is vital that the State Government lifts the management has seen it record a 38% 3,000 South Australians working in the distribution of revenue generated by the reduction in Earnings Before Interest, Tax, industry and to Morphettville as the State’s POC Tax to a considerably higher percentage Depreciation and Amortisation (EBITDA) premier racing club. of the circa $36M in net wagering revenue loss for 2019/20, down from $714K in generated across South Australia. Whilst 2018/19 to $445K. In spite of COVID-19, there were plenty of this would be a welcome increase, it is highlights. The Autumn Carnival boasted imperative that it does not fall short of what On the track, TRSA made the unavoidable arguably the best racing for 25 years and the is required to provide the short to medium- decision to reduce prizemoney across all SA three weeks of coverage across Channel 7 term stimulus SA racing needs to progress races from April in response to COVID-19. was a fantastic advertisement for our venue to a largely self-supporting position. As a result, Carnival prizemoney in May and our racing product. The SAJC has also Whilst we recognise the financial pressures was heavily impacted leading to a significant continued to invest in facilities that improve endured by the State Government as a result fall in acceptance revenues. The SAJC’s the raceday experience for our members and of COVID-19, a reduction of the 15% POC conference and events operations were provide participants with access to a first- Tax to interstate levels remains one of the brought to a halt in response to COVID-19 class racing and training establishment. priorities for TRSA and the SAJC. restrictions, as was The Junction, which was closed for 10 weeks and has only recently SAJC ANNUAL REPORT 2019/2020 | 4 reopened in a limited form. Despite tirelessly to ensure our racing renaming of six feature races after this, revenue produced by The Junction surfaces remain of superlative quality, the SAJC approved recommendations has been impressive, which is a while construction on the highly made by a panel formed by TRSA. testament to the venue’s management. anticipated 90 on-course stables is These races now recognise outstanding We look forward to seeing these close to commencing. Our $1M infield contributors to racing in our State: important retail contributions ramp up screen remains a key piece of raceday Clare Lindop, Leon Macdonald, John as South Australia continues to move infrastructure that adds significantly to Letts and the late David Coles AM, beyond COVID-19 restrictions. the on-track experience and thanks go along with Tobin Bronze and Without to Eagle Eye Image for their expertise Fear. Morphettville in formatting the screen to perfection. The Diva Patio has been upgraded with For the first time in its history, the The SAJC remains committed a fresh artificial lawn surface plus new TRSA annual Racing Awards were to maintaining the facilities at tables and fencing. presented virtually over three nights Morphettville to an exceptional in late August. These awards continue standard. In 2019/20, the Club took a proud tradition of celebrating exciting steps in progressing its Master Racing the achievements of our year’s top Plan. Following approval from the We continue to witness strong results performers. Todd Pannell won the Government, we have rezoned our from our stable of locally-trained Glennon-Johnson Award for SA excess land to ‘Urban Core’, which horses. Amongst others, Gytrash, Metropolitan Jockey of the Year enables us to move to the next stage Bella Vella, Dalasan, Behemoth, Bold and the SA Jockey of the Year, Kayla of planning. We continue to explore Star and Garner have flown the SA Crowther won the SA Metropolitan new opportunities to improve facilities flag proudly and we look forward to Apprentice Jockey of the Year and available to the industry and enhance cheering on all SA horses that are on the Leon Macdonald SA Apprentice the raceday experience for patrons. the verge of breaking through on the Jockey of the Year. Tony and Calvin Racecourse Operations Manager Ian big stage. McEvoy won the SA Provincial and Ricardo and his team have worked A highlight of the year was the Country Trainer of the Year, the SA Metropolitan Trainer of the Year and the CS Hayes award for SA Trainer of the Year. SAJC ANNUAL REPORT 2019/2020 | 5 Life Members thank Bodelle for her years of devotion I look forward to TRSA being able to and application to the SAJC and we also elevate our stakemoney to pre COVID-19 The Club’s Constitution provides for congratulate her and partner Mitch on the levels, which would be greatly assisted by admission to life membership for those arrival of their son Hunter. John Caruso eagerly anticipated improvements in State members that have rendered valuable also resigned in May and we thank him Government funding. The revenue generated service to the Club, achieved 50 years for his contribution. This year, we also by our wagering partners, TABCORP and continuous membership or been a filled two casual vacancies with industry the Corporate Bookmakers, is crucial to member of the Club and been involved in veterans Judith Jones and John Girvan being able to fund both the industry and thoroughbred racing for more than 40 years. being welcomed to the SAJC Board. To my prizemoney. TRSA has addressed the issue At the 2019 Annual General Meeting, it was fellow Board members, I thank you for your of small fields being experienced earlier this the Boards great pleasure to recognise Brian continued commitment and diligence – the year by significant programming changes Thompson as a Life Member for his 50 years strong working relationship between the linked to the horse population. Wagering of Membership. Board and CEO is a credit to both parties turnover has improved greatly and the and a major reason for our progress this addition of a ninth race has had the desired Vale year. effect. This increase in wagering turnover On a sad note, the Club acknowledges the is great for the industry, however the SAJC passing during the year of Life Member I would also like to put on record our thanks would like to see more of these funds flow Gerald Schlink, Member for Life Graham to Premier Steven Marshall, Treasurer Rob through to the Clubs. Burns as well as former SAJC Chairman and Lucas and Racing Minister Corey Wingard Board member Dr Richard Morton. for continuing to support racing and we look To our members, we thank you for your forward to further constructive dialogues continued support of South Australia’s Summary around key issues impacting the Club and premier racing club. We pride ourselves on As we look ahead, I am confident in the the industry. We are also fortunate to have delivering an unmatched patron experience future of the SAJC. The way in which outstanding Club Patrons in His Excellency and believe that the steps we have taken this the Club has withstood the significant the Honourable Hieu Van Le AC and Mrs year further solidify this commitment. challenges of 2019/20 speaks volumes Le, together with Robert Gerard AO and about our management and the strength Fay Gerard and we sincerely thank them for As we move into the latter part of 2020, I am of the racing industry as a whole.