The Board of Harness Racing SA (HRSA) has today advised the Committee of the South Australian Harness Racing Club (SAHRC), the principal club responsible for racing at Globe Derby Park, that it had lost confidence in the SAHRC Committee’s ability to properly oversee and administer the affairs of the club and harness racing at the states premier track.
In consequence, HRSA has requested that the current SAHRC Committee resign, to be replaced by a new interim Committee to HRSA’s satisfaction. In the event that the current Committee refuse to resign by the close of business on Friday 5th April 2019, HRSA will suspend racing at the venue indefinitely, effective Tuesday 9th April 2019.
The HRSA Board are particularly concerned with the direction being pursued by the SAHRC Committee over recent times through, firstly, their utilisation of HRSA’s contributions (race and meeting fees) to prop up a failing hospitality operation, being their bars and restaurant. And secondly by their promotion of the sale of the majority of club owned land to fund a highly speculative tavern venture which is proposed for club land adjacent to Port Wakefield Road.
Conversely HRSA believe the proper, and more appropriate, way for monies to be spent is that they should be applied for the general betterment of harness racing’s participants, namely breeders, owners, trainers and drivers. This should be by way of stake money and improvements to both the race and training tracks.
HRSA also hold significant concerns regarding the formidable operating losses reported by the club over the past decade. These total in excess of $5.5M in the period 2009 – 2018, however, even more concerning is that in the past three years alone the losses incurred exceed $2.2M. Last season the club reported an operating loss of in excess of $890,000.
The escalation in the losses recorded has now reached alarmingly and unacceptable levels and they must be contained.
These losses exclude the annual HRSA contribution which is in excess of $400,000 pa. Therefore, when the HRSA contributions are factored the industry losses for each of the past four years exceed $1M.
While HRSA has attempted to engage with SAHRC management over recent years, particularly with respect to an improved governance and cost structure through implementation of the `Cunningham Report’, these attempts have proved frustrating and ultimately futile. It is worth noting that the key recommendation of the report was “The Harness Racing industry accepts, and as an immediate priority, works towards achieving the optimal governance arrangement for the future for Harness Racing in SA which is to have one governing and racing body and that body is HRSA”
HRSA has now reached the point where it must intervene and arrest the distressing level of financial poor performance and protect the SA harness racing industry from further harm.
It is HRSA’s clear view that in order to move forward there should be one body which oversees harness racing at Globe Derby Park and that this be created through HRSA and SAHRC merging as recommended in the Cunningham Report. Given the rejection of this concept by the SAHRC Committee, it is appropriate that they resign and allow HRSA and the new interim Committee to work on a merger proposal for the betterment of all stakeholders in the SA harness racing industry.
It is also HRSA’s steadfast view that the monies currently utilised by the SAHRC Committee to subsidise an unprofitable bar and catering operation be directly applied for the benefit of the industry and its participants through increased stakes and updated racing and training tracks.
HRSA understands that the measures announced today will cause disruption and disappointment to some, however the situation of substantive and escalating losses cannot continue and changes must be enacted to arrest the very unsatisfactory performance of the SAHRC Committee.
For further information please contact:
ROSS NEAL | CHIEF EXECUTIVE OFFICER
(08) 8285 0723 • rneal@saharness.org.au
