MEDIA RELEASE
Following the decision taken by the SAHRC Committee on Wednesday 29 July to not allow HRSA to conduct race meetings at Globe Derby Park, the HRSA Board wishes to provide the following background information in relation to this matter.
The decision taken by the Club to not allow HRSA to conduct harness racing at Globe Derby Park relates to an ongoing dispute from the Club regarding the level of meeting fees paid to the Club. HRSA pays the Club a fee for each race meeting to assist in defraying the cost of conducting race meetings.
This fee has increased significantly over the past nine years:
- $2 million has been paid to the Club since 2006.
- Since 2006 meeting fee payments have increased by 400%.
- In 2006, $92K was paid in meeting fees to the Club.
- In 2014 $350K was paid to the Club in meeting fees.
- In 2006, meeting fees represented 2.5% of total income for the Club.
- In 2014 meeting fees represented 11.7% of total income for the Club.
In 2014 the Club Committee advised that the current meeting fee payment is deficient by around $225K approx. In 2015 HRSA offered to pay the Club $240K per annum which was rejected by the Club Committee.
HRSA Additional Support to Club
- Over the past four years, HRSA has been extremely pro-active in providing financial assistance and offering expert advice to the Club regarding improvements to its operations as follows:
- Cash grant of $228K in 2011
Management Support valued at $350K per annum. However in March 2014, the Club terminated its management agreement with HRSA.
- Offer to take responsibility for all racing operations at Globe Derby Park at a cost saving for the Club of around $750K per annum. This was offered to reduce the Club’s financial burden, and also to ensure that HRSA could meet its legal obligations to conduct racing at Globe Derby Park. This was rejected by the Club. This proposal was subsequently rejected by the Committee, and since that time the Club’s financial position has further deteriorated.
- On 26 March 2015 the Board formally offered the Club $240K per annum in return for a head lease for use of the racing facility at Globe Derby Park. This offer was made not only to assist the Club, but also related to the code’s principal concern regarding the Club’s financial situation and the scenario where the Club could be placed into either voluntary administration or receivership, and therefore racing may cease at Globe Derby Park. This was also rejected by the Club
Therefore despite several offers of genuine financial assistance from the HRSA Board to the Club over many years, the SAHRC Committee have rejected them all. Therefore the decision taken by the SAHRC Committee to not allow the controlling body to conduct racing at Globe Derby Park is extremely disappointing.
In addition, despite several requests from, the Board, the Club has refused to provide information regarding the Clubs financial position.
More information:
John Lewis, CEO – Ph: 0417855300
