The Australian racing industry is reeling following massive job cuts in one of its largest markets.
The Victoria Racing Club (VRC), which organizes Australia’s biggest race, the Melbourne Cup at Flemington Racecourse, has eliminated 40 positions to dig itself out of a deep financial hole.
Affected staff were informed on Tuesday and around 15 per cent of the 235-strong workforce lost their jobs just weeks before Christmas.
VRC said it had not been “immune to rising costs across the supply chain required to deliver more than 20 days of racing at Flemington, including the four-day Melbourne Cup Carnival”.
“While the 2024 Melbourne Cup Carnival saw an increase in crowds and audiences, the VRC conducts regular reviews of its cost base to ensure we have the right long-term strategy and operational plan to generate future growth,” it said. reads in a statement to Seven News. .
The VRC suffered a loss of $24.2 million in 2023-24 following a $14.9 million deficit in the previous financial year, according to its most recent annual report.
The VRC was forced to borrow $75 million from ANZ Bank after losing a staggering $70 million over the past four years.
The main driver of the large financial losses was expenses, which skyrocketed from $3.6 million to $222.2 million.
The Victoria Racing Club, which organizes Australia’s biggest race, the Melbourne Cup, has begun cutting around 40 jobs.
VRC’s new boss, Kylie Rogers (pictured centre), faces a difficult task in turning around the company’s financial fortunes.
This came after the VRC spent $128 million on a grandstand which opened in 2018 and other capital works cost around $18 million over the past two years.
Revenue has declined despite rising memberships, which reached a record 34,240.
The news of the job losses was met with surprise and dismay by racing commentators and fans alike.
“Very sad to hear the news of major redundancies at VRC,” wrote Seven racing expert Jason Richardson.
“Unfortunately, we have lost great people in the club and in the racing industry in general.
‘(Love) to my friends and colleagues.’
Some racing fans blamed the VCR’s “reckless spending” for the job cuts.
VRC’s new chief executive, Kylie Rogers, who previously held senior positions at AFLhas been tasked with restructuring the business to return it to the winners’ circle.
The annual report strikes an optimistic note.
Despite big crowds and rising memberships, Victoria Racing Club finds itself in a deep financial hole
“The club maintains a positive outlook for the future, which is supported by the recently signed sponsorship and media rights agreement commencing for the 2024 Melbourne Cup Carnival,” the report said.
“Due to the timing of contracted revenues and increased delivery costs associated with the initial deal period, the club expects to see a significant increase in this activity in FY26 and beyond.”
The Melbourne Cup Carnival saw a crowd of 90,000 flock to Flemington for Cup day, while another 80,000 attended the Victoria Derby three days earlier.
The exact number of layoffs has not been confirmed.