dubbledee
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 2012-Feb-09, 04:40 PM
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Bob sounding off:
Mr Mark Oberhardt
Columnist
The Courier Mail
Dear Mark
I write regarding your Courier Mail column piece in The Ear (6/2/12) which suggests:
"BB would be better putting his considerable effort and money into developing the Eagle Farm-Doomben precinct. Most racing boards, anywhere in the world, would be happy to have two tracks, metres apart, which are beside railway lines, near domestic and international airports, and handy to roads linking the other train centres. And having a specialist training centre at Deagon is also a big plus."
Whilst this is no doubt faithful reporting of what metropolitan racing club executives (BRC) have on their LNP ‘to do’ list for racing, it is a spectacularly simplistic view of the needs of the combined industry in Queensland.
For allmost two years those keen to advance racing in this State have been investing in the development of an Industry Infrastructure Plan (IIP). In 2010 Racing Queensland Limited (RQL) opened dialogue on behalf of the industry with the State Government identifying the need for ongoing infrastructure to sustain racing throughout Queensland.
The Queensland Government responded by making $110 million available via wagering tax redirection to renew and renovate industry tracks and infrastructure.
In anyone’s language this represents an unrivalled display of support for the racing industry, delivered in the form of non-repayable grants.
Your suggestion RQL would have been better developing Eagle Farm and Doomben warrants closer examination.
The statement in your column would suggest that funds directed to provincial and country clubs from the IIP should be diverted to the Brisbane Racing Club (BRC) to develop metropolitan racing. This is obvious as this is the only source of funds to renew infrastructure.
The amended IIP makes available the following allocation to provincial and country clubs.
Gold Coast $35.4 million
Beaudesert $ 8.2 million
Ipswich $ 6.0 million
Cairns $ 2.1 million
Townsville $ 6.4 million
Townsville greyhounds $ 6.0 million
Mackay $ 8.1 million
Rockhampton $ 1.8 million
Country racing $ 2.3 million
A view that the development of the metropolitan precinct should take precedence fails to comprehend the structure of racing in Queensland.
The allocation of IIP funding to the provincial clubs is of critical importance to each region, as the main provincial club is the key support and focal point for the numerous country clubs throughout Queensland. Failure to support the ongoing structure and viability of the provincial clubs will see the rapid demise of country racing. Country racing must be strong but not through handouts. It needs to be strong as a result of clear strategic direction and investment.
Could your column piece herald the start of an ‘ill wind’ blowing towards country and provincial racing, possibly lulled into a false sense of security by the LNP’s announced $1 million grant to country prizemoney?
While it would be disingenuous to suggest that the powerful few who have the ear of the LNP are recommending funding be withdrawn from the provincial clubs and redirected to the BRC/Watpac Eagle Farm development project, many who read your column will jump to that very conclusion.
Why would industry money need to be put toward the Eagle Farm-Doomben precinct when it has long been heralded as an entirely self-funding project?
Barrett, C 2009, Brisbane racing’s $1.2 billion makeover, Brisbane Times, 15 April.
“Mr Dixon said the project, to be developed by the construction company Watpac, will come at no cost to the tax payer.
“This project is entirely self- sufficient relying on no funding or grants from any agency or government level”, he said.
“The money raised from the proposed developments will be pumped back into racing.
2009, Brisbane Racing Club Masterplan for Doomben and Eagle Farm, innernorth.com.au, 15 April.
Despite the million dollar price tag, Mr Dixon says the project will not require government funds.
“This project is entirely self-sufficient, relying on no funding or grants from any outside agency or government level.”
The incoming Brisbane Racing Club has announced a bold, self-funded $1.2 billion development of the racing precinct covering the Eagle Farm and Doomben racecourses, to be developed over the next 10 years.”
An undated BRC fact sheet details the project economics stating:
· A totally self-funded development costing in excess of $1.2 billion dollars with $400 million dedicated to upgrading racing facilities.
· No requirement for government funding of any kind
· No requirement of funding from Queensland Racing Limited.
As of today’s date, February 7, 2012, the BRC website states:
The Brisbane Racing Club Master Plan is to be totally self-funded.
The upgrade and retention of both Eagle Farm and Doomben are dependent on revenue generated by the development.
Inquiring minds might also wonder if there is a message here about the BRC’s future plans for Doomben?
Regardless, the RQL message remains unchanged - it would not approve the sale of Doomben.
The case for any funds to be allocated to the Eagle Farm project is extremely hard to justify on current circumstances, considering the history of the amalgamation and the projected returns from the ‘grand plan’.
Independent consultant reports indicate that following the completion of the development, and all the upgrades and additions required by the BRC to racing infrastructure and facilities, there will be a surplus remaining of upwards of $250Million available to the BRC as the club’s share of the development profit.
This should leave the industry in no doubt as to why RQL did not see it necessary to allocate funds to the metropolitan club for development when it is clearly in such an advantageous position.
The ongoing trading position of the BRC does give rise to some concern, despite the club having the best race dates, racing almost every Saturday and having the premier opportunities to gain sponsorship and attendance. The BRC races just about every Saturday only because the control body allocates the BRC the metropolitan Saturday date. The Sunshine Coast Turf Club, and the Gold Coast Turf Club when upgraded, could easily fill the Saturday metropolitan timeslot. These two clubs, no doubt, would jump at the opportunity to host the main event. The upgrade to the Gold Coast track and facilities to a metropolitan standard is long overdue and will provide a viable alternative.
The amalgamation of the Queensland Turf Club and the Brisbane Turf Club was a long drawn out saga following the appointment of Kevin Dixon to head a committee on the recommendation of the then Racing Minister , Robert Schwarten. RQL supported the amalgamation, however, in hind sight RQL may well have taken a different view. The amalgamation promised the industry a “Brave new world” of development and savings.
The “Brave new world” has not started development and has produced less than stunning results.
2008/2009 loss $2.4 million (combined losses BTC and QTC
2009/2010 loss $3.17 million BRC
2010/2011 profit $ 271,000 due to increase and media and sponsorship of $4.6MBRC
2011/2012 loss $????? Confidential BRC budget
The profit recorded for the year ending June 2011 was achieved only after a massive rise in the sponsorship and media rights of $4.63 million. The one off media rights sign on fee will not be available for the 2011/2012 year.
The BRC received an administration subsidy of $1.2 million, a training track subsidy fee of $120,000, and sponsorship and media rights fees of $10.23 million in 2010/2011. In addition, RQL pays 100% of the prizemoney distributed at Eagle Farm and Doomben.
Mark, the BRC should not need assistance, they have a generous income stream, there are profits to be derived from the development of the assets and their attention should be directed to increasing non-racing income.
The Bligh Government’s is committed to the funding of $110 million to the IIP. RQL is committed to the implementation of the projects, unfortunately we continue to read negativity from sections of the Brisbane media. The LNP are giving mixed messages and there has been no commitment to the provincial clubs projects.
A firm commitment is absolutely necessary from the LNP for provincial thoroughbred racing as well as a firm commitment to proceed with Logan, rather than have the funds directed to building new grandstands at Albion Park.
The greyhound industry has a firm commitment from the Queensland Government and RQL on the Logan project to commence construction by June 30, 2012, and it would be a travesty of justice if the greyhounds were once again relegated to secondary status in the middle of Albion Park track.
Regards,
Bob Bentley
Chairman
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