QUEENSLAND Racing today confirmed it had appointed the same accountancy firm which is looking at the Melbourne Storm to independently assess the books of major turf clubs across the State.
Chairman Bob Bentley said Deloittes will investigate a number of turf clubs in June including Brisbane, Gold Coast and Townsville to see if they are managing their finances properly.
“If the Melbourne Storm has taught us anything, it is that Rugby League’s control body knew too little of the operations at its clubs,” Mr Bentley said.“Queensland Racing Limited (QRL) has worked very hard over recent years to ensure it keeps a watchful eye on the books of the State’s horse racing clubs. Our major clubs are used to the auditing process and shouldn’t be surprised by this announcement.”
Mr Bentley said previous audits revealed more than 50% of TAB racing clubs currently operating in Queensland posted losses in the 08/09 financial year.
“Around 30% are in financial difficulty having delivered consistent losses and they are now feeling the effects of poor liquidity,” he said.
Mr Bentley said the racing public should not be fooled by some turf clubs crying poor and blaming Queensland Racing for their shortcomings.
“The arguments put forward by some, such as the Gold Coast Turf Club (GCTC) simply do not stack up,” he said.
“For example, the GCTC says it needs to more than double its track fees (from $45 to a whopping $100) to maintain the Bundall facility. This is an example of a desperate club funding a fundamentally flawed business model.
“QRL has put forward a multi-million dollar redevelopment proposal to the GCTC, should this be accepted all fees will be similar to Caloundra including track fees at just $15 per week.”
Mr Bentley also set the record straight about turf club funding.
“Each TAB club in Queensland receives an administration subsidy, training track subsidy, on course tote revenue, integrity services and 100% of prizemoney,” he said.
“Unfortunately many of those, including racing administrators, who are calling for higher prizemoney to be paid, are currently active account holders with corporate bookmakers or betting exchanges.”
“The QRL cannot increase prizemoney and in turn suffer lower returns from ‘free riding’ on the Queensland product.
“QRL must be fiscally responsible and will not bankrupt the state’s racing industry.”
Mr Bentley said turf clubs needed to embrace change and the reform process the industry is currently undertaking.
“There has been some wild statements made by some vested interests in the industry about the Racing and Other Legislation Amendment Bill which will soon be debated by Parliament,” he said.
“This Amendment simply ensures any disposal of race club land is for the benefit of the racing industry as a whole. Importantly, it also ensures that clubs cannot sell racing assets to prop up under-performing business models.”
“Only a few clubs have any capacity to invest in the asset they hold and this is why the Government and QRL is committed to a program to upgrade industry assets to the tune of more than $80 million.”
Mr Bentley said the Amendment is about creating a strong, accountable industry that protects the interests of the people who rely on it for their livelihood.
“It must also protect the huge investment that will be made by the taxpayers of Queensland, via redirected wagering tax, over the next four years,” he said.
“The taxpayers of Queensland will demand and will deserve nothing less than full accountability and they will want to know their investment is being used to grow an industry that currently contributes $1.44 billion to Gross State Product and employs around 30,000 people.”
Major Racing Club finances 08/09 financial year:
Queensland Turf Club (now merged with BTC) - $990,908 in the red
Gold Coast Turf Club - $497,189 in the red
Townsville Turf Club - $390,641 in the red
Brisbane Turf Club (now merged with QTC) - $380,012 in the red
Toowoomba Turf Club - $148,187 in the red
Sunshine Coast Turf Club - $44,609 in the red (New Business Model to operate from May 1 2010 and will produce a profit of $220,000 in the black)
Mackay Turf Club - $117,095 in the black
Ipswich Turf Club - $108,376 in the black
Rockhampton Jockey Club - $876,856 in the black (due to inclusion of $1,047,484 Capital amount relating to track upgrade recognised in RJC books). Excluding this amount the club would have posted a loss of $170,628.
QUEENSLAND RACING MEDIA RELEASE
Media Contact: Shaun Rigby at Sequel Communications on 07 3251 8140 or 0438 021 936.