2020 ANNUAL REPORT CONTENTS Victorian Thoroughbred Racing by the Numbers 4 Chairman’s Report 6 CEO Report 9 Member Stakeholders 12 Strategic Framework 13 Racing and Programming 15 Racing Snapshot 18 Prizemoney 21 Owners and Breeders 22 Participants 23 Equine Welfare 25 Integrity 29 Infrastructure 32 Community 34 Diversity and Inclusion 36 Clubs 37 Wagering 40 Media 42 Racing.com 44 Investments and Industry Sustainability Fund 46 Directors’ Report 48 Lead Auditor’s Independence Declaration 62 Independent Auditor’s Report 63 Directors’ Declaration 66 Consolidated Statement of Surplus or Deficit and Other Comprehensive Income 67 Consolidated Statement of Financial Position 68 Consolidated Statement of Cash Flows 69 Consolidated Statement of Changes in Equity 70 Notes to the Financial Statements 71 Racing Victoria Limited ACN 096 917 930 Annual Report for the financial period ended 30 June 2020 2 3 VICTORIAN THOROUGHBRED RACING BY THE NUMBERS VICTORIAN THOROUGHBRED RACING BY THE NUMBERS ECONOMIC IMPACT ECONOMIC BENEFIT TO VICTORIA IN REGIONAL AREAS $3.20 $1.55 BILLION BILLION PRIZEMONEY TOTAL WAGERING EQUINE WELFARE & BONUSES PAID TURNOVER COMMITMENT JOCKEYS FULL-TIME STABLE EQUIVALENT JOBS EMPLOYEES $251 $7.1 $25 MILLION BILLION MILLION 271 25,157 3,408 RACE MEETINGS RACETRACKS INDIVIDUAL TRAINERS RACES COMPETING HORSES OWNERS 540 67 4,367 8,761 72,249 953 4 5 CHAIRMAN’S REPORT CHAIRMAN’S REPORT I commend to you Racing Victoria’s 2020 Annual This has been a remarkable achievement by our carnival would make the difference in relation to Report which provides a comprehensive overview industry and I want to acknowledge the efforts of crowds being able to attend. of our performance across the 12 months ending every single person within Victorian racing and 30 June 2020, as well as an update on the overall thank them for their dedication, cooperation and Through prudent management and the successful health of the Victorian thoroughbred racing understanding. continuation of racing under strict biosecurity industry. protocols, RV has reported a net operating surplus I also want to particularly thank our 72,249 owners of $10.7 million. This report details an extraordinary year for our who have missed out on the opportunity to see sport, with two contrasting periods, prior and post their horse in the flesh since March. You have This comes despite the impacts of COVID-19, the the commencement of the COVID-19 pandemic in maintained your investment in the sport and, as a payment of record prizemoney and the distribution March 2020. result, kept people in work right across the state of additional club funding support to help our 69 and enabled our equine athletes to receive the care Clubs in their time of need. This remains a challenge like no other. It has and attention they deserve. Your loyalty has been brought many industries to a halt throughout greatly appreciated by all. That surplus was underpinned by better than Victoria, including other professional sports. We’ve expected wagering performance throughout the also seen its impact more broadly, with racing Whilst we were able to continue racing in Victoria, final quarter of FY20, as customers turned to racing Brian Kruger stopped for extended periods in most international it wasn’t without pain. Racing Victoria had to stand in the absence of other sports and entertainment Chairman jurisdictions from Asia to Europe. down 40% of our workforce for an extended period, options both here and abroad. whilst our Racing Clubs were forced into more Our objective from the start was to protect the dramatic shutdowns. The initiative to work with the Seven Network to health of industry staff, participants, and the wider deliver a national free-to-air broadcast over nine community, maintain 25,000 full-time equivalent Our participants shared the load too, with consecutive weekends in May and June 2020, jobs and ensure daily care and exercise can be temporary reductions in prizemoney from April reaching over 830,000 people every Saturday, was afforded to all thoroughbred racehorses. through until the conclusion of the 2019-20 racing particularly successful. season in July. These were unchartered waters that required This valuable partnership with the Seven Network difficult decisions to be made from day one. However, we were still able to pay record has been extended since the conclusion of Beyond the Government directives and guidelines, prizemoney for the financial year with significant FY20 with a five-year agreement to continue we moved quickly to introduce a series of strict increases, ranging from country minimums through broadcasting Racing.com on Channel 78 and to biosecurity protocols which included an immediate to the 2019 Lexus Melbourne Cup, delivered across showcase 21 premium racedays annually on their ban on owners, members and the public attending the first three quarters of the year. main channels until 2025. race meetings, stables and trackwork. One of the great challenges the pandemic The enhanced engagement with Victorian racing Temperature tests and health screening became presented was an enormous degree of uncertainty throughout the pandemic extends beyond our the norm. Training centres were locked down and that made planning for the immediate future and wagering results and free-to-air broadcasts interstate travel restrictions imposed. Field sizes FY21 extremely challenging. to Racing.com’s digital platforms, which have and the number of races were capped, and trials witnessed record numbers and growth throughout cancelled. Riders were segregated into teams The 2020 Spring Racing Carnival was an important the year. and a ‘bubble’ introduced on racedays to keep case in point. There was considerable debate participants free of potential risks. throughout the end of FY20 regarding the structure Putting COVID-19 to one side, a primary focus and timing of our showpiece event, together with throughout FY20 was on enhancing our equine Through the diligence of all within Victorian the prizemoney to be offered. welfare program and ensuring the ongoing integrity racing and the incredible support of the Victorian of the sport. Government, led by Minister for Racing Martin The views were many and varied, but one thing that Pakula, we have been able to safely and successfully was common was the passion for our greatest races In July 2019, we launched a new three-year equine continue racing and training throughout the and the desire for them to shine. welfare strategic plan focused on outcomes before, pandemic. during and after racing. Post-racing wellbeing The Board ultimately decided that any case for garnered national attention months later off major change did not outweigh the benefits of the back of media reports into the activities at retaining the existing structure, particularly with interstate abattoirs and knackeries. the uncertainty around whether pushing back the 6 7 CHAIRMAN’S REPORT CEO REPORT In October 2019, we committed to accelerate the Our achievements over the past 12 months would I’m pleased to provide an overview of how Racing implementation of our strategic plan through a not have been possible without the valuable Victoria and the Victorian thoroughbred racing minimum $25 million spend across three years and commitment that each and every participant industry performed in the 2019-20 financial have got to work on achieving that. makes, and I want to thank them for their passion year (FY20). and dedication. Our internal equine welfare team was boosted; Victorian thoroughbred racing has successfully audits performed to gain a better understanding On behalf of the Board, I also want to thank our navigated through two contrasting periods prior of horse movements; welfare checks conducted on Chief Executive Giles Thompson, his executive team and post the commencement of the COVID-19 close to 1000 current and retired racehorses; our and all the staff who have worked tirelessly in the pandemic in March 2020. Off The Track program expanded and the RESET best interests of the industry throughout the year. program introduced for those retired racehorses The first period’s challenge was to continue who have struggled to transition to a second I also wish to thank Martin Pakula and the Victorian with increased investment in the industry while home; and an independent advisory council has Government for their unwavering faith in the economic and wagering softness prevailed. This been formed. thoroughbred racing industry which is a valuable was then taken over by the all-encompassing focus contributor to the state of Victoria delivering over on ensuring the very survival of the sport as the FY21 will see the rollout of a foster program $3.2 billion in annual economic benefit and the world shut down. for thoroughbreds in need; an on-site humane equivalent of 25,000 full-time jobs. Giles Thompson euthanasia program to reduce unnecessary Chief Executive Officer It is therefore with great pride that, in the face of suffering; as well as an online post-racing platform As an industry, we are set to face a number of the COVID-19 challenge, not only have we kept to better track horses once they leave racing. challenges in the 12 months ahead as we navigate racing, but we are in a strong position to thrive as the uncertainty that hovers due to COVID-19 and the community and economy seeks to recover. There is still much to be done though, particularly continue to deliver ongoing improvements in in our efforts to reduce catastrophic raceday equine and participant welfare, along with our We have been able to achieve a net operating injuries as the 2020 Melbourne Cup has shown with integrity reforms. surplus of $10.7 million, pay record prizemoney, the fatal injury sustained by international visitor provide additional club funding support and ensure Anthony Van Dyck. It will be a critical year for our funding streams with our key initiatives have been funded.