Spring’s Obsession
How profit is masking the truth of the racing industry.
The governing body of Victoria’s favourite spring past time has seen near record profits in the last 24 months. Yet these statistics do not tell the whole story.
By Thomas Price
Spring has sprung in Melbourne; the cold days have made way for sunny afternoons, the football finals are upon us and as Victorian sports fanatics slowly shift their attention from the AFL their focus singles in on spring’s great attraction- horse racing.
It is true that the Spring Carnival in Melbourne is the world’s largest celebration of racing. The crowds are plentiful, the booze aplenty and the bets become larger as the attraction of lucrative prize money brings people from all around the globe to Melbourne’s three premier metropolitan tracks; Moonee Valley, Caulfield and of course Flemington.
Yet the attraction of the month long racing events is just that; a month long fascination. Come the first week in November, racing fever grips the nation with the Melbourne Cup, Australia’s favourite race. After the Cup, racing itself drifts into a distant memory for many of the sports crazed Melburnians and the attention focuses elsewhere. It would be not only ironic but also questionable to state the horse racing in Victoria is in the worst possible position at present but asking many patrons, trainers and staff you would find that it may be the truth.
In the 2014-2015 racing season the governing body of racing in this state, Racing Victoria, recorded a net profit of in excess of $53 million dollars, up a whopping $31 million on the previous season’s profit. This incredible statistic, due largely to wagering turn over, has led many pundits to believe that racing is in a financially healthy position. Yet outside of the famous spring carnival, crowd participation on track has diminished to virtually none, and many staff are seriously struggling to break even. Many believe this is due to the corporate bookmaker’s monopolization of the industry, with CEO’s of the state’s major racing tracks hedging their financial gains on a month of overwhelming turnover, the spring carnival.
Former TVN and current racing journalist Bruce Clark believes that corporate bookmarking has killed this one great sport. “In the 70’s, 80’s and even 90’s, people would flock to the track to be able to watch the racing, have a bet and enjoy a good day out with friends. In my early twenties when I first started working on course, there would be over 85 bookmakers on track at Flemington each and every Saturday, now you would struggle to find 10 outside of the Spring Carnival.” The introduction of mobile betting changed the landscape of the sport, with many preferring to watch and bet on racing from their home, which has rapidly diminished turnout on track. “Times have changed” Clark says, “It’s now racings job, it’s people involved with the industry’s job, to better promote punters to head back out to the track on a weekend. It really is the only way we can survive.”
And the statistics don’t lie. Turnout peaked in the 1995-1996 racing season in Victoria, long before mobile betting was a possibility for punters. As revenue at Racing Victoria (due to staking a share in the profits of the TAB, plus taxes on corporate bookmakers) has sky rocketed the attendance on track has diminished. Racing Victoria lays claim to a whopping 783% increase in annual revenue over a space of 25 years, yet seem to forget to mention an 80% decrease in attendance to metropolitan tracks. Much could be attempted to try to draw people back out to the track, yet little has been achieved. Something must be done before the great sport of spring is little more than a distant memory.
| Season | Net Profit ($’000) | Average Attendance (outside of Flemington Carnival) |
| 2014-2015 | 50,048 | 3,422 |
| 2013-2014 | 18,515 | 4,698 |
| 2012-2013 | 16,500 | 4,663 |
| 2011-2012 | 15,445 | 5,458 |
| 2010-2011 | 17,689 | 6,778 |
| 2009-2010 | 16,778 | 6,149 |
| 2008-2009 | 14,445 | 7,258 |
| 2007-2008 | 14,100 | 7,356 |
| 2006-2007 | 15,778 | 9,336 |
| 2005-2006 | 19,444 | 8,665 |
| 2004-2005 | 14,889 | 10,655 |
| 2003-2004 | 13,668 | 11,745 |
| 2002-2003 | 13,889 | 11,487 |
| 2001-2002 | 14,778 | 13,669 |
| 2000-2001 | 10,883 | 13,465 |
| 1999-2000 | 11,655 | 15,342 |
| 1998-1999 | 9,445 | 14,465 |
| 1997-1998 | 10,778 | 15,778 |
| 1996-1997 | 6,741 | 17,563 |
| 1995-1996 | 8,725 | 18,669 |
| 1994-1995 | 8,445 | 17,889 |
| 1993-1994 | 7,932 | 16,633 |
| 1992-1993 | 7,443 | 16,721 |
| 1991-1992 | 5,658 | 17,005 |
| 1990-1991 | 5,663 | 17,665 |
Source: All credit to Racing Victoria website for profit and attendance statistics
