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SA Funding Cuts

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    Posted: 22 Dec 2018 at 8:17pm
Queensland racing was bad enough but has taken steps to rectify the paucity of prizemoney etc. but the SA govt has taken it to a whole new level Shocked

SA racing faces drastic cuts

Andrew Eddy

21 December, 2018


South Australia is set to become the only mainland state without a $1 million thoroughbred race in the wake of a multi-million funding cut by the state government.

Thoroughbred Racing SA announced on Friday it would be forced to reduce prizemoney for both its marquee races which had been worth $1m - the Sangster Stakes and Goodwood in the autumn - as part of far-reaching prizemoney cuts as well as a $2.25m reduction in infrastructure funding for the state's 25 race clubs.

TRSA said the drastic action was due to the impact of a consumption tax imposed in the industry's operations - a tax that yields the SA Government about $16m a year.

Frances Nelson, QC, the chair of Racing SA and Thoroughbred Racing SA, described the cuts forced onto the industry as 'regrettable but unavoidable'.

"With the exclusion of Tasmania, every other state has now introduced a point of consumption tax. Each has recognised it is money generated by the racing industry, and all have returned funding to the industry - but not in South Australia," Nelson said.

Nelson also hinted that the cuts to infrastructure spending and to prizemoney might be the beginning of a tough time for SA racing.

"The cuts we have announced are the initial steps and we will have to consider removing some race dates as part of our longer-term strategy, and this will hit our regional areas hardest," Nelson said.

"While other states receive tens of millions from their governments to grow their industries, we receive none while also being forced to compete with one hand tied behind our back.

"All I want is a level playing field to ensure the South Australian racing industry can compete sustainably on its own terms and protect its own future."

South Australia was the first state in the country to introduce a point of consumption tax on bets made by SA racing and sports fans.

In a press release issued on Friday, TRSA claimed that because South Australia's POC tax rate of 15 per cent was significantly higher than Australia's two largest states (NSW at 10 per cent and Victoria at eight per cent) there was far less incentive for bookmakers to promote SA racing.

"In fact, they actively promote other states' racing ahead of SA due to the higher POC tax rate, resulting in a significant downturn in the local industry's revenues," the release said.

In June 2018, the SA Government announced a one-off return of $4.85m to the SA racing industry to 'protect local jobs and help offset losses incurred' - reimbursing the industry for its direct revenue loss, which, TRSA claimed, effectively went to the Government as a result of the POC tax.

"However, despite repeated lobbying of Treasurer Rob Lucas and Minister for Racing Cory Wingard and other members of the Liberal Government, racing has received no assurances as to the current financial year and/or future years' reimbursement of the industry's losses as a direct impact of the POC tax, nor any assurances of support in next year's budget," the release said.

Nelson said the decision to take the cuts was not an easy one.

"We have had no choice but to announce these significant cuts to infrastructure grants for clubs and reduction in prizemoney because of the way racing is being underfunded and unfairly taxed by the state government," she said.

"It is an extremely disappointing decision for our board to have to make because we know the hurt it will cause across the entire racing community - particularly in region areas where the infrastructure funding reductions will cut the deepest.

"The prizemoney cuts will also have an impact on the national standing of South Australia's major racing carnival and ability to attract trainers from NSW, Victoria and New Zealand as we have in the past.

"More importantly, it will also inhibit our ability to keep our trainers in South Australia, some of whom are already moving their operations interstate with the resultant loss of jobs in SA.

"Thoroughbred Racing SA works to grow racing on behalf of the entire racing community in SA - an industry that supports the full-time employment of more than 3600 people and generates $400 million every year in economic benefits for the state.

"It is also an industry where participants depend on prizemoney, which drives involvement and helps pay the wages of every participant at every level, while also stimulating external investment in the industry.

"We remain hopeful that the Treasurer will listen to the very real concerns of the industry."


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Post Options Post Options   Thanks (0) Thanks(0)   Quote troppo75 Quote  Post ReplyReply Direct Link To This Post Posted: 22 Dec 2018 at 9:29pm
wow.. and to think I was just thinking it'd be cool to maybe breed another horse (in SA)

seems like it'd be a hard sell.. for owners who aren't getting any real return or hope of any decent return

I've no major issue chopping the bigger races prizemoney down because the interstaters all just flock over and rob it blind. No one is mentioning the SA G1 races as jewels in their crowns for breeding barns etc.. its a shame but its how it is

making the grass roots country tracks lose out is a big kick in the pants


Now having passed 1000 posts I feel you are all so much the wiser for my having said... stuff!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Lord Hybrow Quote  Post ReplyReply Direct Link To This Post Posted: 22 Dec 2018 at 10:24pm
Goodwood Hcp - down from $1m to $750k
Robert Sangster Stks - down from $1m to $600k
SA Derby - down from $600k to $500k

Reductions to quite a few other feature races too.

Hopefully no reductions to bread & butter Saturday races. Their stakes at $40k-45k on Saturdays is already pretty paltry.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Bonjour Quote  Post ReplyReply Direct Link To This Post Posted: 23 Dec 2018 at 8:30am
Inevitable, a failed State, highest energy costs in OECD, someone has to pay for ideology that defies logic. It's a Ghost Town, Westfield Marion is like a time machine, pensioners flock there in summer to keep cool as they can't afford to run aircon, very little solar paneling, how surprising is that? a State where it should be a priority. Why would you race a horse there? I really feel for the racing stalwart in SA, wonderful trainers once, Leon M is about the senior statesman now, God Bless him, I hope he is still training in 100 years, but we know it's unlikely.......young fellas have bolted, so Weir and Price send their second stringers across to pick off the bone, shameful from consecutive Governments, pale, stale, males in most cases, dolts, but they [SA] have to fix it themselves, if they are too apathetic, then it is of their own doing, strike, revolt, whatever, but do something and we will all support you, promise!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote oneonesit Quote  Post ReplyReply Direct Link To This Post Posted: 23 Dec 2018 at 8:47am
No problem. Just double the consumption tax - give a bit to the SA Racing Industry to shut them up - & everyone a winner. Fantastic business model using this consumption tax - every time any state govt or racing authority wants a quid just agree together to increase it. Money for jam - dumb/stupid punters !
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Shawy38 Quote  Post ReplyReply Direct Link To This Post Posted: 23 Dec 2018 at 8:55am
Still only paying prizemoney to 4th in the Bush

What a disaster
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Post Options Post Options   Thanks (0) Thanks(0)   Quote oneonesit Quote  Post ReplyReply Direct Link To This Post Posted: 23 Dec 2018 at 9:03am
AND if all those greedy State Govts didn't privatise TABs all those years ago they would have a very nice little earner now wouldn't they. What happened to the statements at the time that privatisation was the savior to the on-going health of the racing industry. Same as V'landys saying the Field Legislation would guarantee similar for the next 100 years i suppose. Took all of about 2 years before the hands started to come back out again. Fact is the racing industry will never have enough money. With next to no one going to the track these days there needs to be a massive rationalization of their tracks / administration / across all states. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Balciano Quote  Post ReplyReply Direct Link To This Post Posted: 23 Dec 2018 at 1:03pm
Very true Oneonesit. The new Treasurer, Rob Lucas, was also Treasurer when the TAB was sold for peanuts here back in 2001.

Funding cuts not really surprising unfortunately.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 3blindmice Quote  Post ReplyReply Direct Link To This Post Posted: 23 Dec 2018 at 3:46pm
"Highest energy costs in the OECD". Total bullgelati. Please do some bloody reading before you post rubbish
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 3blindmice Quote  Post ReplyReply Direct Link To This Post Posted: 23 Dec 2018 at 4:00pm
Trust "Matrice" won't mind me appropriating his post on Racenet. Just one view but it's worth re-posting here. Seems a lack of half-decent racing administrators and govt inaction might be major contributors:


Matrice  2 days ago

I and many, many others here in Adelaide, fought long and hard to try and stop racing in this state from falling into the hands of various vested interests whose motivation was not about what was best for racing, it was about what was best for them.

When C.S. Hayes passed away in 1999, the spivs and the old boys network came out from the shadows they had been lurking in because they dare not tamper with racing whilst CS was around.

CS had always maintained that it was critical to have the TAB in South Australian hands with the majority of the proceeds it generated going to racing, indeed, CS advocated that there should only be a TAB and no bookmakers. He and those who loved and understood the sport in this state, understood the pivotal role the TAB played in the ongoing health of SA racing.

After his death, the State Liberal Government under John Olsen, privatised the TAB (2002) in the face of fierce opposition whereupon it was revealed that the sale was for less than half what the Government and the “urgers” said it would be and that $7 million was paid in “consultancy fees” - over $10.1 million in today’s money. The greatly respected journalist Dennis Markham wrote many articles warning against the sale and that the figures that the Government and others were talking about were “pie in the sky” and this lead to him being denigrated by the “chaps” but unfortunately and as predicted by those who didn’t have their heads in the sand or in the clouds, returns to racing started to plummet and so did the sport.

In 1998, Matt Benson became the CEO of the SAJC and he reckoned that racing should be like X-lotto and he was followed by another with strong ties to the South Australian National Football League, the notorious Steve Ploubidis who told SAJC members early in his reign that they could make much more money if they held phantom race meetings!

This latest darling of the chaps network just went on a wrecking spree that saw Victoria Park mothballed because of the incredibly flawed proposal for it’s “modernisation”, one of which was that the run through after the finish line of the new track would see horses career through the outside rail because of the severe bend just after the post!

Unfazed by this embarrassment and lacking no shame, this person with some other “prominent captains” in SA threw trainers and owners and other people involved in racing out of the game by selling Cheltenham to developers even though, after a FOI request revealed that the SAJC held a Trust Deed over the land that the racecourse occupied and which they refused to divulge publically. Many of the old timers and people who have lived in the area for generations reckoned that the land was given to the Port Adelaide Racing Club to be used as a racetrack and to never be sold.

Dennis Markham came out of retirement and wrote a couple of pieces pointing out the misinformation being peddled as the reason for selling of Cheltenham and again, many, many people fought long and hard to save the best wet weather track and some would argue, the best racing surface in Australia from being bulldozed and along with it, destroying racing forever but no, this time it was a Labor Government that sold out racing.

The member for Port Adelaide at the time and State Treasurer, Kevin Foley, had said that Cheltenham would be built on “over my dead body” but as we were to see later, he and the ALP betrayed racing and the mad keen punting and race going blue collar, working class people of the Western and North Western suburbs. A former Federal Labor politician, one Nick Bolkus, was the chief lobbyist for the SAJC and a little bit latter set up Bespoke Approach, a “a premier corporate advisory firm” and registered political lobbyists along with a chap called Ian Smith and another chap called Alexander Downer: such is the incestuous nature of things in SA, not to mention that Kevin, “over my dead body” Foley, did work for this outfit after he left parliament. I am not for one minute suggesting that there was anything untoward but what I am saying, is that racing in this state is just a plaything for the chaps and to hell with the people who love the sport, let alone those who try and make a living out of it. To show what kind of measures some will take to get what they want, Ploubidis and the SAJC tried to fiddle the membership numbers to get the result it wanted!

Well here we are, some 10 years after the bulldozing of Cheltenham, an action that was supposed to ensure racing’s future in South Australia and we see the majority of races on Saturdays having less than 8 horses in them (so much for X-lotto size fields) and prizemoney being slashed and racing is just withering away. For a lover of horse racing, I’m sorry to say that I don’t feel anything anymore for racing in this state. I have no desire whatsoever to step foot on the only race course left in metropolitan Adelaide and I really don’t care if racing just ceases to be here; that’s how much I and many others have been wounded by what’s transpired over the years – the war is lost.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Sir Gov Quote  Post ReplyReply Direct Link To This Post Posted: 24 Dec 2018 at 5:52am
Have stopped punting in SA - I know it hurts racing there, however will not support the SA Govt stripping of the racing industry.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Paul Hogan Quote  Post ReplyReply Direct Link To This Post Posted: 24 Dec 2018 at 2:26pm
SA racing just dying a natural death.

The prizemoney war between NSW & VIC must of had a influence in the government's decision.
They may foresee it will continue into the future and realise they will not be able to attract the same class of horse into these races.

***There's not that many top class horses going around you know.

Maybe their decision is sound, they can see the writing on the wall.
The only thing that may save them in the future is a national racing body.

There is a slice of the cake for all, VIC, NSW, QLD, SA, NT, TAS however as usual greed rears its ugly head.







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Post Options Post Options   Thanks (0) Thanks(0)   Quote Brudder_A Quote  Post ReplyReply Direct Link To This Post Posted: 24 Dec 2018 at 3:33pm
Originally posted by Paul Hogan Paul Hogan wrote:

SA racing just dying a natural death.



I disagree with you here that it is natural in any way. As someone from SA I remember and was present an massive attendances in the 70s and the success the industry was having...

The politically correct dogooders in the government saw this as a wonderful opportunity to take as much from the sport as possible so as to try and make as malignant as it is today.

The plan was long term....

Why should punting be profitable? Why should bookies enjoy the good life? The post above mention the crowd around CSHayes and his entourage was privileged beyond anything the common man at the time could want to imagine.

The government want to eliminate this industry to the point where it is insignificant blimp in the ekonomy.

Yes, dilute the ring,  tax the studs and horse owners so that its not worthy to even think of going into the game for newbies unless you've won the PowerBall lotto.

And that is what you have today three 2YOs showing up at Port Lincoln last Friday and pathetic fields in the city which no one seriously would want to be involved with except for the desperates. Oh, yes. I know there are those in SA that are desperate for any kind punt, but would they be enough to feed the industry?

Those brilliant planners who gave away historic jewels like Victoria Park and Cheltenham should be always remembered in SA Hall of Shame forever.



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Post Options Post Options   Thanks (0) Thanks(0)   Quote Luva Punt Quote  Post ReplyReply Direct Link To This Post Posted: 25 Dec 2018 at 7:52am
Merry Christmas Everyone.  Enjoy your day with your families.

I remember at the time the South Australian TAB was privatised, it was turning over $685 Million a year, and they sold it for $44 million.   Then it ended up the government stuffed up the conditions in the contract and had to pay $21 Million in compensation, so it only ended up costing only $23 million.

Add to that the $7 Million in consultancy fees that has been mentioned, and they have given it away for next to nothing.

You have to wonder whether governments don't have connections to organised crime links and corruption, because they continually sign contracts that blow out and go way over budget, and take taxes to the hilt, which end up providing little or no benefit.

I have always thought turnover should be the main driver for wagering, not taxes.

There should also be a National Body that receives all of the revenues, and distributes the funds.

Makes no sense whatsoever that Victoria and NSW, with there larger populations just go from strength to strength, and half of these ridiculous overvalued Group Races, are just another way of taking the funding straight back out of racing to the rich breeders and owners.

The focus should be on keeping the funding in racing.  Building up the Group Race Calendar Australia, and working to have major Group race Calendars all year round.

Instead we have NSW and Victoria thriving, throwing money around like there is no tomorrow, and the other states are left to fend for themselves.

At least QLD has now been pulled into the fold, courtesy of the TABCORP Monopoly.

 You have to admit, the prizemoney on offer is of far greater value than the horses that are actually winning these races.

Other than Winx, I cannot see a horse in Australia that is worthy of winning the obscene amounts of prizemoney being thrown around, and it is just a totally irresponsible way of managing the additional funding coming into racing, via wagering, to see it just handed out the back door, and providing little or no benefit to the industry.

And how about something for the punter??  Cheaper Drinks, Better meals, Better Internet and Wagering Facilities on track, Subsided Corporate packages, so that a day out at the races is enjoyable for all.

This is the one day of the year, I love, where there is no racing.

LP.






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Post Options Post Options   Thanks (0) Thanks(0)   Quote Paul Hogan Quote  Post ReplyReply Direct Link To This Post Posted: 25 Dec 2018 at 9:56am
The Triple crown of Australian racing.

Win the Everest (NSW) the Newmarket (VIC) and the final leg The Goodwood (SA) and win a lifetime supply of regumate.

Racing as an industry will be stronger if we stick together.
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*CONDITIONS APPLY. EXCL VIC, NSW, SA & WA. GAMBLE RESPONSIBLY
Trainer Lloyd Kennewell is to close his Adelaide stable and move all his horses to Melbourne in light of prize money cuts in South Australia.

Kennewell opened a stable at Caulfield last year and had planned to maintain a presence at Morphettville.

But on Thursday he issued a media statement saying it was not sustainable and he would concentrate solely on Caulfield.

Last month Thoroughbred Racing South Australia announced funding and prize money cuts, citing the state government’s failure to return money from the new Point Of Consumption tax to the racing industry.

“There is some very disappointing news coming out of Adelaide in regards to the funding and prize money cuts that the Government have made,” Kennewell said.

“We are already well below the prize money levels compared to the eastern states, and our costs are not much different which really hurts the industry.

“It is very sad to see this happen in such a historic state of racing and there is no doubt the future of racing in the state is in turmoil.

“With a heavy heart this has left me with no choice but to speed up my decision to close the Morphettville operation down which will be effective from the end of January, 2019.

Kennewell will move into a renovated 30-horse barn at Caulfield at the beginning of next month.

Phillip Stokes, a dual Adelaide premiership winner, has recently opened a stable at Pakenham in Victoria.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote djebel Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jan 2019 at 3:04pm
Has there been a race meeting in South Australia that a race in not won by a female jockey ?
reductio ad absurdum
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Post Options Post Options   Thanks (1) Thanks(1)   Quote crooked_gambler Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jan 2019 at 3:15pm
Naracoorte 30/12/2018 was the last all male victory
This space has been intentionally left blank
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Straight arrow Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jan 2019 at 3:18pm
Going the way of Tasmania. Only problem? Tassie might be healthier
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Brudder_A Quote  Post ReplyReply Direct Link To This Post Posted: 02 Feb 2019 at 5:56pm
First two races had 3 starters, next two had 5...

SA Great, Mate?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Prince of Penzance Quote  Post ReplyReply Direct Link To This Post Posted: 02 Feb 2019 at 6:14pm
Stokes McEvoy Kennewell all pretty much gone

Weir now gone

That’s half the fields
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Lord Hybrow Quote  Post ReplyReply Direct Link To This Post Posted: 02 Feb 2019 at 6:47pm
The prizemoney cuts to the big Black Type Carnival races were well publicised.

Are there also cuts to the standard bread & butter Saturday races too? Are they going to go down also?

Those 3-horse fields today were races offering $45k prizemoney. That’s nearly 30% more than the $35k that most VIC country & provincial meetings offer per race. Hopefully some of the trainers from western VIC realise this, do some border hopping and bolster fields.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Brudder_A Quote  Post ReplyReply Direct Link To This Post Posted: 25 May 2019 at 10:35pm
Pommy bred horse Dance of Heroes, today won the prestigious (non list and non graded) Hawker Cup on the dirt.

Obviously form held true for the 76th start.

Connections probably dreamt for such success after he won his third start on the synthetic at Lingfield back in 2014.

Galahs will not be quiet in the Flinders from here on in!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SkyDancer Quote  Post ReplyReply Direct Link To This Post Posted: 25 May 2019 at 10:41pm
I just saw a horse won earlier in the day by 16 lengths!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Brudder_A Quote  Post ReplyReply Direct Link To This Post Posted: 25 May 2019 at 11:04pm
Originally posted by SkyDancer SkyDancer wrote:

I just saw a horse won earlier in the day by 16 lengths!


Three horse maiden race where there were two odds-on....

Winner picked up $1950 for SABOIS...   Enuff for a p*ss up. And also just enuff to pay for the fine now on SA roads...



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Post Options Post Options   Thanks (0) Thanks(0)   Quote SkyDancer Quote  Post ReplyReply Direct Link To This Post Posted: 08 Jun 2019 at 1:17pm
Looks like SA are getting a funding boost
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Brudder_A Quote  Post ReplyReply Direct Link To This Post Posted: 09 Jun 2019 at 2:32am
Originally posted by SkyDancer SkyDancer wrote:

Looks like SA are getting a funIndentding boost


So its $24 million over 4 years for all three codes with $8 million up front.

With comments like this:

because it valued racing as a 'really important industry' that enjoyed 'a lot of upside and opportunity'

Johnson&Johnson produces better Band-Aid than this....

Let's face it - If the state government and the Racing administration had any moral ethics after flogging Cheltenham Park for the amount of money it was worth and really wanted to invest in the industry then they should of been thinking of the Resurrection of Victoria Park and the making the East Side full of life with night racing. That is what the industry in the Eastern States is formulating and also in the US and UK.

Adelaide has improved its River Torrens facade and with Adelaide Oval and North Terrace - but with a place like Victoria Park available in a prime location it would help a 'really important industry'.

But we will get a bit of investment for Gawler and Oakbank and maybe Jamestown can have an extra race carded.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Carioca Quote  Post ReplyReply Direct Link To This Post Posted: 09 Jun 2019 at 1:27pm
Do they need another Don Dunsten type Brudder ? it's a sad reflection of what I remember of SA racing in the fifties and sixties, the character has been ripped out of the joint imo.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Brudder_A Quote  Post ReplyReply Direct Link To This Post Posted: 09 Jun 2019 at 5:39pm
Originally posted by Carioca Carioca wrote:

Do they need another Don Dunsten type Brudder ? it's a sad reflection of what I remember of SA racing in the fifties and sixties, the character has been ripped out of the joint imo.


Hi Carioca, I, as with some our venerable forumees greatly value your historical insights which you bring to our attention!

I was only a teenager during the Dunstan years and even then only was in SA during the first part of his leadership as the family moved to the US in that decade.

But I do have vivid memories of the '60s and my old man (Bless his soul) was a avid punter (but not very successful) and Horse Racing was a massive part of life for us.

SA was quite progressive then but with the demise of racegoers and "Easy to punt in Pub" crowd racing had changed - except for one thing "How nice the gambling dollar as a tax was boosting the ekomony?"

The young crowd never got going and to get them in you need to make it attractive. The racing administrators were only bowing to the "C.S.Hayes and his royalty" and after they passed on the sport needed to get it attractive to sustain it longevity. Instead they chose contraction.

Vision is needed if sustainability is wanted!
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Joined: 01 Dec 2018
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Straight arrow Quote  Post ReplyReply Direct Link To This Post Posted: 09 Jun 2019 at 6:07pm
Town is full of rev heads and football mad! Should give them back the Grand Prix ? But the best cost saver straight away? Would be to get rid of jump racing!! What financial input does it have to a sinking ship?
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