SAJC set to post third straight seven-figure loss Brad Waters - 11/11/2013 Racing in South Australia continues to struggle financially with the South Australian Jockey Club set to announce another seven-figure loss. The Adelaide Adevertiser has reported the SAJC will post a $1.39 million loss for the 2012/13 financial year, following deficits of 1.41 million and $2.29 million in the previous two years. SAJC chairman Tony Newman said the club had sufficient reserves to absorb the loss but must find alternative revenue sources to cover shortfalls in the racing operations. Were not happy with it, but in the overall viability of the organisation, it can withstand the loss, but it cant withstand losses forever, Newman said. Right now we are able to weather it because of the investment fund. Newmansaid he was unsure if racing would become profitable for the club again in the short term, especially when on-course turnover continues to fall. It is a real issue, but its the core of our business and its affecting race clubs around Australia, Newman said. Clearly the off-course options are omnipresent and, in some cases, theyre better. We need to keep working on it, but I dont know if well ever turn around making a profit on racing. Newman also noted the SAJC’s agreement to contribute prizemoney to Thoroughbred Racing SA also cost the club $2.5 million in 2013/14, which added pressure to the organisation’s finances. Newman said the club would pay TRSA $2.75 million in 2013/14 but that amount would be the last contribution before the end of the agreement.
Posted on: Mon, 11 Nov 2013 22:09:13 +0000
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