The perilous state of the New South Wales racing industry has been laid bare with the Australian Jockey Club forced to slash over $4 million in prizemoney from its feature races over the next 12 months.
In contrast to Victoria, which announced earlier in the week that it intended to maintain prizemoney levels and expected further funding increases from TABCORP, the AJC said a shortfall of revenue had forced it to drastic measures, including seven redundancies as well as cutting prizemoney for its main races.
Prizemoney for the Doncaster Mile, arguably Australia's greatest mile race, will drop from $2 million to $1.5 million, while the AJC Derby slips $300,000 to $1.3 million. The Sydney Cup's prizemoney has dropped nearly 50 percent to $400,000, while it's a similar story for the Epsom Handicap, which is now worth just $300,000.
A statement from the AJC said that while internal issues at the club have caused some shortfall, the main blame can be levelled at the influx of corporate bookmakers and Betfair.
"Recent instability at the Club has not helped the current financial situation, however, we now have a united and proactive board and management who are fighting hard to keep the Club viable in the face of wagering income challenges imposed by Corporate Bookmakers," Australian Jockey Club, Chairman Ron Finemore said.
"I had hoped that given time and a positive race fields outcome we could bring about noticeable change to both racing and the business of the AJC,"
The club has opted against raising track fees to trainers as a means of protecting revenue, a move which it said would have had untold consequences on the future of the club.
"The AJC was faced with a lose-lose situation. Our choice was, however, increasing track fees or reducing base prize money which effects all AJC stakeholders, whereas reducing elite prize money effects a much narrower group of stakeholders," Finemore said.
"The AJC continues to operate its business in the best interests of its members and stakeholders and these actions are separate and coincidental to any discussion about a merger with the Sydney Turf Club."
NSW Trainers Association board member, Anthony Cummings said the effect of corporate bookmakers on the industry needed to be addressed.
"The leakage of crucial revenue to Corporate Bookmakers is the biggest challenge facing the NSW racing industry, and it is having a devastating effect on the operations of the clubs," he said.
"It is disappointing that these prize money reductions have had to be made by the AJC, but with its revenue stream being undermined by current circumstances I can see how they have been left with little choice."
Prizemoney changes: (Brackets is previous prizemoney level)
Doncaster $1,500,000 (2,000,000)
Derby $1,300,000 (1,600,000)
Listed Races (7 races from $110,000 to $100,000) $1,000,000 (1,070,000)
Sydney Cup $400,000 (700,000)
Delete 9th Race 8 Saturdays (incl 2 Autumn Carnival) 0 (620,000)
Epsom Hcp $350,000 (600,000)
The Metropolitan $350,000 (600,000)
T J Smith Stks $350,000 (500,000)
AJC Oaks $350,000 (500,000)
QE Stakes $350,000 (500,000)
Sires Produce $300,000 (500,000)
George Main $300,000 (400,000)
Champagne Stks $300,000 (400,000)
All Aged Stakes $300,000 (400,000)
Flight Stks $300,000 (400,000)
Spring Champion $300,000 (400,000)
The Galaxy $300,000 (350,000)
Stan Fox Stks $150,000 (200,000)
Warwick Stakes $150,000 (200,000)
Chelmsford Stks $150,000 (200,000)
Chairmans Hcp $150,000 (200,000)
Villiers Stks $150,000 (200,000)
The Shorts $150,000 (175,000)
Summer Cup $125,000 (150,000)
Craven Plate $125,000 (150,000)