THE Brisbane Racing Club has reported a loss of almost $1.2 million for the financial year 2011-2012 compared to a profit of over $270,000 for the previous period.

Chairman Bill Sexton in his annual report noted ‘that before depreciation of almost $2.5 million, the earnings before interest, tax, depreciation and amortization recorded by the club was a profit of almost $1.3 million.'

“The financial results of the club continue to be challenged by reduced attendances, the standard of facilities, competition for discretionary entertainment spend and the existing economic climate.

“Also the inadequate funding model of Racing Queensland does not cover the cost to this club of providing the very considerable racing product it does for the benefit of the entire racing industry in this State,” Mr Sexton said.

“Hopefully the new Board of RQ will develop a funding model that enables every club, big or small, to strive to be independently profitable.

“Despite these challenges the club has continued to develop non-racing products and events to diversify its financial revenues. These include music festivals, polo tournaments, Sunday markets, can shows and the activities of the Gallopers Sports Club (formerly the Hamilton Bowls Club then Brisbane Racing Sports and Social Club).

Not surprisingly the annual report bags the previous Bentley Board and pays tribute to the new RQ Board, headed by the former BRC chairman Kevin Dixon.

“Following the State election in March 2012, thankfully the interaction between BRC and RQL has improved significantly. The new RQL board is far more consultative and represents and rregulatory body that BRC can work and partner with on a range of racing initiatives.

“Already RQL has reinstated much needed funding previously provided to QTC and BTC before the merger but removed by the former Bentley regime.

“The Board remains concerned at the previous regime’s allocation of infrastructure priorities and its haste to enter the industry into binding agreements prior to the state election.”

The BRC lists as the key priority for racing in Queensland the negotiation of a new TAB wagering agreement with the current one due to expire on June 20 2014.

The financial statements record an increase in the RQL subsidy to the BRC from $1.18 million in 2011 to $3.05 million in 2012 and a drop in broadcast, television rights and sponsorship from $10.23mn in 2011 to $6.97 in 2012.