H A R N ES S R ACI N G V I C TO R I A
S T R AT E G I C P L A N
2020
INDEX
Planning Process.................................................................................................. 3
Executive Summary ............................................................................................ 4
Key Victorian Industry Statistics 2011 to 2015 ........................................ 5
Key Victorian Financial Indicators 2011 to 2015 ..................................... 6
Revenue / Profit 2011 to 2015........................................................................ 7
Stakemoney 2011 to 2016................................................................................ 8
Challenges / Objectives / Strategies
Horse Population .......................................................................................... 9
Racing Product............................................................................................ 10
Integrity and Animal Welfare.................................................................. 11
Wagering........................................................................................................ 12
Participation .................................................................................................. 13
Financial Sustainability............................................................................. 14
Communication / Consultation ........................................................... 15
Aspirational Targets .......................................................................................... 16
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
PLANNING PROCESS
The Harness Racing Victoria (HRV) Strategic Plan 2020
is the blueprint to take Victorian harness racing into the future.
The final product is the result of an extensive consultation process with industry participants.
In August 2015, HRV released a Consultation Paper on its website as the first stage of the planning process.
Industry feedback on the Consultation Paper was sought as per below:
On line written submissions via the HRV website. 38 submissions were
received by HRV responding to the Consultation Paper.
‘Face to Face’ sessions were held at several locations around Victoria:
• Sessions at Melton with various industry groups representing owners,
breeders, trainers, drivers and clubs
• Public consultations at Shepparton, Bendigo and Melton
• Forums for industry sponsors at HRV offices
Feedback from all of the above consultations has been recorded
and where relevant incorporated into the Strategic Plan 2020.
HRV would like to thank all those who took the time to make a contribution
to the consultation process.
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
3
EXECUTIVE SUMMARY
The Strategic Plan 2020 identifies 7 key challenges facing the industry in coming years.
For each challenge an objective is set out to meet the challenge as well as high level strategies
to achieve the objective. Finally the Plan has several aspirational targets for each challenge.
The 7 key challenges
identified are:
»»
Horse Population
»»
Racing Product
»»
Integrity and Animal Welfare
»»
Wagering
»»
Participation
»»
Financial Sustainability
»»
Communication/Consultation
Some of the major strategic projects include:
»»
Feasibility study into a Training Complex and Academy at Melton
»»
Master Planning for Stage 2 of Tabcorp Park complex
»»
Continued internationalisation of our product
»»
Renewed focus on ownership, breeding and participation
»»
There are a number of highlights in the Strategic Plan 2020
which are listed as the Aspirational Targets
The following pages provide data and figures used to guide the planning process.
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
4
KEY VICTORIAN INDUSTRY STATISTICS
Several of the key racing statistics have
been in decline as per these charts:
Number
of Racesof Races
Number
Foals
Foals
4000
4200
3000
4000
2000
3800
1000
0
3600
2011
2012
2013
2014
2015
HorseHorses
Racing Racing
10
4000
9.5
2011
2012
2013
2014
2012
2013
2014
2015
Field SizesField Sizes
4500
3500
2011
2015
9
2011
2012
2013
2014
2015
As of 2015, Victoria has 41% share of the of National Foals population.
This is an increase from 39% in 2011.
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
5
KEY VICTORIAN FINANCIAL INDICATORS 2011 TO 2015
Harness Wagering Turnover on Victorian Product
Harness Wagering
Turnover on Victorian Product by Operator
by Operator 2011 - 2015
2011 - 2015
450,000
880,000
860,000
400,000
840,000
350,000
$
'
0
0
0
s
820,000
$
'
780,000 0
760,000 0
0
740,000
s
300,000
800,000
250,000
200,000
150,000
720,000
100,000
700,000
50,000
000’s
-
680,000
2011
2012
2013
2014
2015
Total
763,319
733,329
754,066
801,940
857,770
Vic Tab
221,124
198,842
184,576
196,156
192,631
Interstate Tab
392,194
371,673
327,395
323,800
320,877
Corporates
86,478
95,409
150,965
178,608
223,240
Betting Exhanges
39,456
41,605
41,375
42,965
43,622
International
24,067
25,800
49,755
60,411
77,400
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
660,000
6
REVENUE / PROFIT 2011 TO 2015
HRV has experienced a period of strong
revenue growth and profitability.
HRV Historical
Financial
Performance
HRV
Historical
Financial
Performance
90,000
6,000
85,000
4,000
80,000
2,000
70,000
-
65,000
-2,000
$'000s
$'000s
75,000
60,000
-4,000
55,000
-6,000
50,000
45,000
2011
2012
2013
2014
2015
HRV Revenue
74,706
73,027
76,646
80,086
84,970
Wagering Revenue
54,094
52,319
55,548
57,949
62,030
97
-6,631
2,006
1,307
4,058
000’s
Profit
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
-8,000
7
STAKEMONEY 2011 TO 2016
Stakemoney
43,000
Up $2.1m
41,000
Up $1.9m
39,000
Up $2.7m
$'000s
37,000
35,000
33,000
31,000
29,000
27,000
25,000
000’s
Stakemoney
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
2011
2012
2013
2014
2015
2016
33,989
34,516
33,634
36,341
38,283
40,300
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CHALLENGES / OBJECTIVES / STRATEGIES
HORSE POPULATION
The supply of horses to fill race fields is likely to be impacted by
Challenge
the declining horse population (refer to the earlier graph on foal
numbers). The future funding of the industry is directly linked to
maintaining the racing program in Victoria.
Objective
To focus on breeding incentives and horse ownership as the key stimulants to the breeding
industry by creating demand and therefore increasing the horse population.
Strategies
»» Engage new resources dedicated to the promotion of ownership, including syndication;
»» Enhance the ownership experience on and off the track;
»» Continue to enhance the Vicbred and Vicbred Platinum programs, such as increase 1st win bonus,
extend beyond 4YO, increase opportunities for lower priced stallions;
»» Increase incentives for broodmare owners to breed;
»» Strengthen the owners’ peak body;
»» Support trainers in attracting and servicing owners;
»» Educate trainers to be ambassadors for the sport;
»» Review distribution and spread of stakemoney. More allocation to ‘career class’;
»» Continue to support the trend in trotting growth.
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
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CHALLENGES / OBJECTIVES / STRATEGIES
RACING PRODUCT
Challenge
Market research indicates harness racing is viewed by many as not
engaging or vibrant. There is a demarcation which needs to be resolved
between the traditional presentation of the sport and the need to
innovate to attract a younger audience and increase wagering.
Objective
To present a vibrant, innovative and engaging racing product to existing and new customers.
To enhance brand awareness and appeal of the harness racing product.
Strategies
»» Promotion of industry ‘Heroes’. For example, more profile for top drivers/trainers/owners;
»» Critically review handicapping and programming to create more even fields
(eg, reduce the number of short priced favourites);
»» Investigate options to encourage high speed, up tempo entertaining racing that better
captures public interest;
»» Attract international quality horses for racing and breeding;
»» Work with vision provider to improve broadcast appeal, eg, virtual reality;
»» Streaming on website, eg focus on crowds, different camera angles;
»» Continue to reinforce “The Trots” campaign;
»» Tailored marketing campaign aimed at new and existing customers;
»» Effective use of new media and technology;
»» Review standing start racing.
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
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CHALLENGES / OBJECTIVES / STRATEGIES
INTEGRITY AND ANIMAL WELFARE
Challenge
The actual and perceived issues associated with the conduct of races
and the use of prohibited substances, together with community
concerns over animal welfare in the racing industry.
Objective
To maintain a strong integrity jurisdiction and be regarded as a world leader in harness racing
regulation, enforcement and detection in both integrity and animal welfare.
Strategies
»» Implement a communication strategy to impart knowledge of the integrity processes
and the conduct of racing;
»» Development of a HRV integrity career path;
»» Sharing intelligence with the 3 racing codes and other harness jurisdictions nationally
and internationally;
»» Increased resources including use of technology in the integrity department of HRV;
»» Develop a rehoming program to ensure horses have a meaningful life after racing;
»» Develop a Horse Welfare Code of Practice establishing minimum standards
based on ethical treatment of horses, including a review of the use of whips;
»» HRV’s HERO program becomes widely accepted as a leader in the field.
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
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CHALLENGES / OBJECTIVES / STRATEGIES
WAGERING
The racing industry is in the midst of a changing profile of wagering
Challenge
service delivery, away from the dominance of a single tote provider to
fixed odds and tote derivative products provided by a variety of WSPs.
Competition for the wagering dollar is increasing not only within racing
but from local and international sports.
Objective
To present a harness racing product that encourages all wagering service providers (WSP) to market
the sport to their wagering customers to maximise HRV’s product fees.
Strategies
»» Engage new resources dedicated to relationships with WSPs;
»» Work with WSPs to develop wagering products (bet types) and incentives (jackpots) specific
for the harness racing product;
»» Work with WSPs to improve fixed odds yields;
»» Conduct punter consultation forums;
»» Recognise Punters as a group to be represented on Harness Racing Advisory Council;
»» Expand the international export of HRV’s racing product.
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
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CHALLENGES / OBJECTIVES / STRATEGIES
PARTICIPATION
There is an ongoing challenge to achieve growth
in participation across all areas of the business, such as:
1. Breeders and owners, which is impacting on the demand for horses;
2. Trainers/drivers to supply the racing product;
3. The volunteer network, impacting the viability of Clubs;
4. Patrons at race meetings.
Challenge
Objective
To have a viable and sustainable harness racing club network which promotes
attendance and engagement.
To reduce the barriers to entry which will lead to increased levels of participation
across all segments of the industry.
»» Conduct a feasibility study into creating an Academy, including a multi-purpose training and education
»»
Strategies
»»
»»
»»
»»
»»
»»
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
complex on the HRV owned land at Melton;
Investigate measures which focus on expanding participation in the eastern suburbs of Melbourne, such as
metropolitan meetings at Cranbourne;
Continue to enhance the racing calendar to create industry events and grow attendances;
Provide resources that will assist Clubs in improving Club administrative skills and knowledge as well as
promoting professionalism across the network;
Attract and retain high calibre people to roles in Club administration and HRV. Provide development
opportunities for those new staff who will work collaboratively towards achieving industry objectives;
Licensing arrangements to include accreditation for participants in the industry;
Provide support for new and younger participants in the industry, such as training centre graduates and
young entrants. This will include expansion of pony trots amongst other initiatives;
Explore the creation of a ‘grass roots’ community race meeting circuit at appropriate venues.
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CHALLENGES / OBJECTIVES / STRATEGIES
FINANCIAL SUSTAINABILITY
Challenge
Whilst the financial position of HRV has improved significantly in
recent years, the issues of wagering revenue and participation levels
represent a threat to long term financial sustainability of the entire
industry. Also, despite having offsetting and appreciating assets,
HRV still has a significant debt.
Objective
To generate financial returns through revenue generation and cost
control that will enable increased stakemoney, debt reduction and
investment in infrastructure.
Strategies
»» Work with the relevant authorities to capitalise on the HRV owned land at Melton;
»» Engage experts to prepare a master plan for Stage 2 of Tabcorp Park development to
generate greater attendance and financial returns;
»» Work with WSP’s to determine the optimum race field fee structure to maximise income
returns to HRV (the right pricing regime);
»» Continue to use technology to improve efficiency and reduce costs;
»» Expand the range of shared services provided by HRV to improve financial management,
governance and efficiency of Clubs;
»» Continue to invest in the internationalisation of our product;
»» Continue investment in the industry’s regional infrastructure.
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
14
CHALLENGES / OBJECTIVES / STRATEGIES
COMMUNICATION / CONSULTATION
Challenge
The level of consultation and engagement with the industry
needs to be improved so that stakeholders are fully informed and
participate in the identification of issues facing the industry and
the development of solutions.
Objective
To ensure stakeholders are engaged and informed, and have a
shared understanding of the objectives of the Board and HRV.
Strategies
»» Execute a detailed communication program that promotes engagement and enhances participation;
»» To be at the cutting edge of digital technology to communicate with stakeholders;
»» Provide professional development for HRV management to enhance leadership capabilities.
HARNESS R ACING VIC TORIA
S T R AT E G I C P L A N
2020
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ASPIRATIONAL TARGETS
HORSE POPULATION
OWNERSHIP
RACING PRODUCT
These targets should be
regarded as indicative
only. Management will
continue to refine these
target measures as the
Plan evolves.
INTEGRITY & ANIMAL WELFARE
2020
»»
»»
»»
»»
Horses easily identified on television
Less than 10% of races have short priced favourites (currently 17%)
$2m revenue from international product (100% increase)
Trotting growth rate maintained (currently 21.5%)
» » Best practice race day and out of competition testing
» » Additional resources, eg, investigative stewards, head on cameras
at all tracks, control room
» » Recognised as leaders in the ethical treatment of horses
» » HERO Program widely accepted
» » Growth of wagering income of 5% p.a. from 2015
PARTICIPATION
» » Training Complex and Academy at Melton
» » Licensing accreditation program in place by 2018
COMMUNICATION/CONSULTATION
S T R AT E G I C P L A N
» » Stakemoney $50m by 2020 (currently $40.3)
» » Total number of owners 20% higher than 2015
» » Vibrant ownership representative body
WAGERING
FINANCIAL SUSTAINABILITY
HARNESS R ACING VIC TORIA
» » A race horse population above the existing level of 4000
» » Reverse foal number decline – trend line to be increasing by 2020
» » Increase market share from 2014/15 level of 14% to 15%
»»
»»
»»
»»
Implementation Plan for development of HRV owned land at Melton
Tabcorp Park Stage 2 Master Plan Development complete
Debt reduced to $10m by 2020 (currently $25m)
Capital investment of at least $10m over 5 years in the regional network
» » Best practice industry consultation and engagement measures
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