Q.G.B.O.T.A
24.09.11
GREYHOUNDS IN QUEENSLAND
Discussion Paper on the Future of Greyhound Racing in Queensland
ANDREW FRASER, QUEENSLAND TREASURER, ON THE CLOSING OF THE GOLD COAST GREYHOUND CLUB
 “We believe that it’s a generous level of compensation, along with their holding of 50% of Albion Park. That places the Greyhound Industry with the ability, the assets and the cash to be able to plan for their future as an industry by themselves”.
LYN KEEP, GREYHOUND PARTICIPANT, ON THE CLOSING OF THE GOLD COAST GREYHOUND CLUB
‘The Gold Coast Greyhound Racing Club was hoping the track could have been moved inside the adjoining trotting complex but it's understood the trots have been given notice as well with five years to consider their future options; no such luxury for the greyhounds who were only given twelve months notice or the 37 staff that worked at Parklands. Should the go-ahead be given for the Logan complex, even fast tracked it would take 18 months to be up and running”. July 2008
Introduction
It’s concerning when the major stakeholder in Racing in Queensland cannot see the big picture, nor show any empathy.
The current Treasurer would know that Greyhounds were locked into a fifteen year Product Co Agreement until 2014, so no increased revenue would be available to secure a loan with any financial institution for the building of a new racing complex.
The Harness Code did not have the money, and neither could support a long term mortgage of Albion Park to buy out Greyhounds in Albion Park. So how was it that the Greyhound Industry was going to be able to build a new facility to replace the Gold Coast Club?
It was the State Governments poor planning that took away the Gold Coast Greyhound Club, with little notice, nor planning for the industry.
While State Governments in other States have taken their responsibilities as stakeholders in racing seriously and allowed these partnerships in racing to grow and prosper through financial and capital support. In Queensland there has been no financial support or investment in Greyhounds throughout their long-term in office.
The attitude of the current Labor State Government in Queensland is highlighted clearly by the Queensland Treasurer Andrew Fraser, who’s planning saw the closure of one of the best Greyhound Tracks in Australia, for a car park. The current Queensland Government has thrown hundreds of millions of dollars at infrastructure at sports like Rugby League and Australian Rules, yet neither sport returns a tenth of the revenue that all the Racing Codes have.
Background
The TAB was set up by Governments to allow all racing codes a direct funding model for their sport.
Greyhounds by turnover are the second biggest racing code behind thoroughbreds in Australia, but in Queensland it is the only racing code that is given less than Harness, even though their turnover is higher.
Times have changed and the punter has changed with it. Greyhounds across Australia has steadily grown its TAB turnover to the point whereby States like NSW, Victoria and Western Australia where the State Government has supported the Greyhound Code seen TAB turnover figures of between 19 to 21%!
NSW Greyhounds are still locked into a 3-Code Agreement, yet are receiving 14.5%, which is 5% more than Queensland. This 5% equates to approximately an extra $15-20 million dollars more revenue going into Greyhounds in NSW compared to Queensland.
There are a lot of reasons why Queensland Greyhounds has been allowed to constrict and decay, some of which the industry has to take ownership for itself. However, despite no support from the State Government in Queensland it has turned over up to 18.5% in TAB turnover, double what it receives from Product Co, yet for all its positive wagering growth, not $1 of this has gone back into Greyhounds in Queensland.
In 2010, the current Queensland State Government announced a merger of the three codes of racing, and as an incentive, announced an $80million war chest re-directed from the wagering tax.
Although there was optimism amongst greyhound participants that finally some much needed money would be invested in capital expenditure for the industry, the newly formed Racing Queensland Limited board decided that $50million of this money would go into upgrading of the Gold Coast Racing Club, all to appease a couple of multi-millionaires.
Using the Treasurer’s analogy of the Gold Coast Greyhound Club’s closure, why wouldn’t Racing Queensland Limited leverage the Magic Millions owners, and get them to invest in the Gold Coast Racing Club? This is a clear indication of the State Governments position and who they are prepared to support as a stakeholder in Racing.
This discussion paper is hopefully going to lead to opening the eyes of not only the industry, but future State Governments in Queensland and how as a proper stakeholder in the racing codes they can help them grow and prosper.
It may be a surprise to the reader, but the Greyhound Industry in Queensland with a little help from State Government can financially support its own future if the proper TAB wagering turnover was attributed to Greyhounds. In the past 10 years greyhounds have seen approximately over $20 million dollars in wagering turnover go to both the other two Racing Codes, because of Product Co.
Government Planning
Future Queensland State Governments need to re-examine all financial arrangements affecting Queensland Racing. This is to ensure that adequate funding is provided through wagering licensing arrangements and State & Local Government Capital Grants for the future strong growth and development of all Three Racing Codes.
Government Planning – Identifying Financial Risks
The following is a list of major areas future State Governments need to plan for when identifying the Financial Threats to the Racing Industry:
Threat of Corporate Bookmakers
Sports Wagering
TattsBet Fixed Betting – Racing Industry receives less revenue from this type of betting
Achieving a fairer and more equitable distribution of funds from wagering
Identifying alternative revenue streams
Government Planning - Capital Expenditure
Future State Governments need to set aside a percentage of tax from wagering turnover annually, to go towards Capital Investment in Racing.
They also need to work closely with all Racing Codes to seek other revenue sources to go towards Capital Investment and financial assistance to the Three Codes of Racing, for example:
Unclaimed betting dividends from punters in Queensland, goes to TattsBets dividend to shareholders. In Victoria this money goes back to the Racing Industry.
Racing Queensland Limited
If Racing Queensland Limited are to continue as the Racing Industries parent body, then participants want to see a more open and transparent process with the management of the Three Codes of Racing.
The Three Codes of Racing to have an active say in both short and long term goals and objectives.
RQL - Policies
What are the policies to increase prize money?
Increase market share?
Better Tracks & facilities?
A healthy balance sheet with industry reserves?
Improved animal welfare?
Stronger links with communities?
Marketing?
Facilitating a cohesive industry?
Financial sustainability of the industry?
Provide facilities that represent standards compared to other professional sporting facilities
Maximise revenue opportunities from the industry’s intellectual property
To identify, attract, encourage, new and younger audiences and participants to Greyhound Racing
RQL – Key Performance Indicator’s
There are currently no KPI’s with regards to RQL’s management of the Three Codes of Racing
How do the Three Codes of Racing know that RQL have the best interests of the Racing Industry, and how can this be measured?
State Government through Industry Stakeholders and Participants to have a say in the KPI’s of RQL, and consequences agreed to, should they fail to reach industry targets, both long term and short term.
RQL - Board Members
More equitable distribution of board members per industry
Industry participants to elect their board members, not the State Government, nor the Board
Power to be returned to Industry Participants, not one individual on the Board
What should happen if RQL is abolished?
Management Committee set up with representatives from the Industry ie Trainer & Owner/Breeder, Government appointee, TattsBet appointee, 2 x Business appointees, President and elected person from QGBOTA.
All licensed persons to also be members of the QGBOTA.
Private Management Company to be tendered day to day running of Queensland Greyhounds, including financial, maintenance, capital works and project management
New Business Model
New Business Model
The appointment of a Private Company to carry out the day to day management of Queensland Greyhounds will see significant savings to Administration Costs
Clubs reporting to Private Company with regards to funding, maintenance and capital grants with monthly reports
Private Company to provide annual reports on clubs risks and potential hazards and impediments for Racing
Marketing taken away from clubs and given to external provider to ensure advertisement of marketing strategy, and that KPI’s are being met
Liaise with major stakeholders, Queensland Government, TattsBet, Local Councils etc to ensure that we are all working in the same direction
Autonomy of Integrity Services
First Business
Development of Funding and Plan for three new tracks, one on Northern Corridor, one in Western Corridor, one for the Southern corridor
Logistical survey by external company to be undertaken for placement of City 1 Track.
Minimum of two tracks to have both one turn and two turn tracks
Upgrading of Capalaba to TAB status
Funding to come from mortgage or share of sale in Albion Park, new State Government Funding for Capital Works, and long-term (20yr) loan against extra industry income from equitable share of wagering
It is estimated that Greyhounds could receive an extra $6.5 million in revenue, if their fair share of wagering from TattsBet was granted
This would cover any long term loans, future capital investment, increases to prize money, breeding scheme and funding reserves
Conclusion
Greyhounds in Queensland cannot see growth, while external forces are determining its future.
When an industries participants are not aware of the plans or business model for the sport, how can we work together to achieve growth in the sport?
Whatever happens in the future, there is an urgent need for transparency of the parent body, with clearly defined policies, objectives and outcomes for the future of Greyhound Racing in Queensland
No Sport or Business in history has ever been successful, without all stakeholders working together with the same mind set.
RQL can raise prize money and deliver a breeding scheme, but what is happening with the other $4-5 million per annum which is reflective of Greyhounds Wagering Turnover
RQL do not need to win a court case against Harness to start building new tracks for Greyhound Racing. They could mortgage Greyhounds 50% share of Albion Park tomorrow, and utilise the $10 million from the Gold Coast track and take out a long term loan to build a new Greyhound Complex
Because of this, the autonomy of RQL is also it’s weakness, and the weakness of the three code merger is the other two codes should not be the determining factor of a new Greyhound Track being built, the determining factor should be the urgency to the Industry, which RQL have failed to deliver
Closing Date for Submissions is 12th November 2011
Please send your Submissions to the QGBOTA either by Mail To
P.O Box 567
Capalaba 4157
or Email to The Secretary at
skinny05@optusnet.com.au
We will call an Industry Meeting to Discuss the Final Plan after the Submissions have closed and All Submissions will be placed on the Web Site.
Secretary P. Marchant
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NOTES ON THE QBOTA GENERAL MEETING HELD ON 24 JULY 2011
The Committee of the Association wish to offer an apology to the attendees of the above meeting for the rude abuse some members on arrival for the meeting were subjected to by a member affected by a substance. The matter will be dealt with at the next Committee meeting. There is no place in this Industry for this extreme behaviour either as a member of the Association or a licensed participant.
The first agenda item to be discussed was the recently introduced “Incentive Scheme.” Industry members and GBOTA Committee members had devoted considerable time to this project, only to find any recommendations presented to Racing Queensland for consideration have been rejected.
Queensland is now the only State in Australia without a Breeding Scheme resulting in our breeders being outpaced and overshadowed by all other States. Unfortunately the present scheme in its current form has fallen short of the Industry's expectations.
The meeting considered the placement of race tracks in South East Queensland. A member presented figures which were incomplete, but recorded the bulk of participants resided in and around the Ipswich-Gatton area.
This of course is correct and the Committee is well aware of these stats. It was however considered that other aspects of the Industry were involved in race track placement. Large numbers of trainers had previously been located in the Lawnton and Beenleigh arrears. On closure of both these tracks under past incompetent Administrations many trainers moved to the Ipswich-Gatton areas and others left the Industry. It is now imperative to correctly gauge where any new track placement
Is to occur, in order to grow the business into the future.
The mooted move to Logan was part of a policy to reducing Greyhound Racing in Queensland to three tracks, Townsville, Rockhampton and Logan. This down sizing exercise was never in the best interest of Greyhound Racing.
The meeting settled on race tracks at Ipswich (western corridor), northern corridor and southern corridor (between Beenleigh and Helensvale).
Logan was not a favoured option with a cost of $27k to $40k it is far too expensive.
The methane gasses level indicates the site is still `active' and will require years of remediation before activity will cease. This gifted site will require 3K, for ongoing gas monitoring estimated at $120.000 per annum. These figures quoted have been obtained from previous sittings on the internet.
The attitude of a small number of people that any new track to be built in “my backyard” or the northern corridor is too hard to get to, is not in the Industries best interests. Industry players have no difficulty getting to Albion Park, Tweed Heads, Ipswich, Lismore, Casino, and Bundaberg on a weekly basis.
The meeting acknowledged while Racing Queensland had consulted with the QGBOTA and Industry members who had put considerable time and effort into the process, and also Racing Queensland had been quick to advertise the fact, little or no account had been taken of the recommendations presented to them.
The present situation is unsatisfactory and the only hope for improvement is dialogue instigated with the Industry by Racing Queensland has some bearing on the outcomes, other wise the angst simmering within in the Industry will build, and the gains made to date will be lost.
R E CHANDLER
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