The financial challenge facing new Victoria Racing Club chief executive Kylie Rogers was laid bare on Tuesday after the Flemington-based club announced a $24 million loss for the past year.
The financially stricken home of the Melbourne Cup has now lost more than $70 million across the past four years, following losses of $14.9 million in 2023, $16.9 million in 2022 and $14.9 million in 2021.
The biggest crowd since 2018 attended this year’s Melbourne Cup Carnival. Credit: Chris Hopkins
Rogers, a former AFL executive, has been tasked with turning the club’s fortunes around, following her appointment as the VRC’s first chief executive on September 1.
The VRC released its annual report on Tuesday, which revealed that the club’s revenue had remained stagnant at $216.6 million, but expenses had jumped by $7.7 million to $222.2 million.
“The club has been subject to increasing costs of doing business, as experienced throughout the broader economy, including Melbourne Cup Carnival-related entertainment, temporary infrastructure and event delivery costs,” the director’s report said.
“The club remains cognisant of keeping membership and retail prices at a level to ensure we continue to provide value for money experiences.”
The annual report also revealed the VRC had an outstanding loan of $62.5 million with ANZ. It separately owes Racing Victoria $10 million.
The Age reported last week that the VRC is looking to cut between 30 and 40 per cent of its workforce as it attempts to cut costs. The VRC did not acknowledge this figure when approached for comment.
VRC chairman Neil Wilson did not reference the loss in his annual chairman’s report, but said hosting the Melbourne Cup Carnival cost the club $65 million.
Flemington has continued to carry huge debt since borrowing heavily to open a $128 million grandstand in October 2018. It was then hit by a crowd-free Cup week in 2020 because of the COVID-19 pandemic.
Victoria Racing Club chief executive Kylie Rogers.Credit: Eamon Gallagher
The club said it “maintains a positive outlook for the future” as it entered the first year of a lucrative Melbourne Cup week broadcasting deal with the TAB and Channel Nine, the owner of this masthead.
Flemington crowds were also up by eight per cent to 285,675 during this year’s Cup week – Victoria Derby day (81,612), Melbourne Cup day (91,168), Oaks day (50,873) and Champions day (62,022).
Rogers this year became the VRC’s 14th CEO following the resignation of Steve Rosich.
“We believe Kylie’s career experience and leadership qualities are extremely well aligned to
our strategy and the delivery of the next exciting chapter for the VRC,” Wilson says in his chairman’s report.
Outsider Knight’s Choice – pink silks with green sleeves and green hat – wins the 2024 Melbourne Cup.Credit: Getty Images
“Kylie brings fresh perspectives and a strong commitment to the VRC’s future, including a clear vision that honours the club’s proud heritage.
“She is dedicated to placing the horse at the heart of all we do and transforming Flemington into a vibrant, year-round racing and entertainment destination.”
The VRC had 34,240 members for the past financial year, 19 resident trainers, up to 600 horses and employed 2535 permanent and contracted staff.
It hosted 22 meetings, created $1.598 billion in wagering turnover and its races paid out $60.85 million in prizemoney.
Wilson said the 2023 Melbourne Cup Carnival delivered more than $468 million to the Victorian economy.
“From pubs and clubs to fine-dining restaurants, independent designers, department stores, primary producers, and winemakers, countless industries benefit from those four days of exceptional racing at Flemington in the spring,” Wilson said.
The Flemington racecourse will host 21 race days this financial year, including the permanent return of the All-Star Mile in 2025.
“Our master plan and vision for the Flemington precinct continues to evolve, and we eagerly anticipate taking our members along on this journey in 2025,” Wilson said.
The VRC is part of a larger racing industry looking to embark on major cost-cutting as the state’s three codes – gallops, harness and dogs – feel the financial squeeze.
This masthead reported last week that the cost-of-living crisis and a drop in wagering turnover had resulted in the three codes losing a combined $58 million in the past financial year.
Racing Victoria chief executive Aaron Morrison said his industry would be looking to save $10 million over the next 12 months by streamlining its media businesses as well as reviewing race programming.
He said Racing Victoria was in talks with the trainers’ association about the possibility of more race-free days, and was speaking to clubs about sharing resources, such as marketing, catering and back of house.
Racing Victoria is also conducting an in-depth review of the more heavily subsidised jumps racing, which will be finalised by the end of November.
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