Australia’s racing industry is reeling after massive job losses in one of its biggest markets.
The Victoria Racing Club (VRC), which stages Australia’s biggest race, the Melbourne Cup at Flemington Racecourse, has cut 40 positions to dig itself out of a deep financial hole.
Affected staff were told on Tuesday that around 15 per cent of the 235 workforce had lost their jobs just weeks before Christmas.
VRC said it was not “immune to the rising supply chain costs required to deliver more than 20 Flemington race days, including the four-day Melbourne Cup Carnival.
“While the 2024 Melbourne Cup Carnival saw increased audiences and viewership, the PRC is conducting regular reviews of its cost base to ensure we have the right long-term strategy and operating plan in place to deliver future growth,” a statement said to Seven News. .
According to its latest annual report, the PRC suffered a loss of $24.2 million in 2023-2024, in the wake of a $14.9 million deficit from the previous fiscal year.
The PRC was forced to borrow $75 million from ANZ Bank after losing as much as $70 million in the past four years.
The main cause of the heavy financial losses was costs, which increased from $3.6 million to $222.2 million.
The Victoria Racing Club, which organizes Australia’s biggest race, the Melbourne Cup, has started cutting about 40 jobs
New VRC boss Kylie Rogers (pictured centre) faces a tough job to improve the company’s financial fortunes
This followed the PRC shelling out $128 million on a grandstand that opened in 2018, while other capital works cost around $18 million over the past two years.
Revenues have fallen despite a rise in memberships, which reached a record high of 34,240.
News of the job losses was greeted with shock and dismay by race commentators and fans alike.
“It’s so sad to hear the news of major redundancies at VRC,” wrote Seven Racing expert Jason Richardson.
“Unfortunately we have lost some great people to the club and the wider racing industry.
‘(Love) for my friends and colleagues.’
Some racing fans blamed the VCR’s “reckless spending” for the job cuts.
New VRC CEO Kylie Rogers, who previously held senior roles at the AFLhas been tasked with restructuring the company to get it back into the winner’s circle.
The annual report was optimistic.
Despite the enormous crowds and increased membership, the Victoria Racing Club is in a deep financial hole
“The club has a positive outlook for the future, which is supported by the recently concluded media rights and sponsorship agreement effective for the 2024 Melbourne Cup Carnival,” the report said.
‘Due to the timing of the contracted revenues and the higher delivery costs associated with the initial period of the agreement, the club expects a significant increase in this activity in FY26 and beyond.’
The Melbourne Cup Carnival saw 90,000 people flock to Flemington for cup day, while a further 80,000 attended the Victoria Derby three days earlier.
The exact number of layoffs has not been confirmed.