The Australian racing industry is reeling after mass job cuts in one of its largest markets.
The Victoria Racing Club (VRC), which runs Australia’s biggest race the Melbourne Cup at Flemington Racecourse has axed 40 positions to dig itself out of a deep financial hole.
Impacted staff were told on Tuesday with about 15 per cent of the workforce of 235 losing jobs only weeks before Christmas.
VRC said it had not been ‘immune to rising costs across the supply chain required to deliver more than 20 Flemington race days, including the four day Melbourne Cup Carnival.
‘While the 2024 Melbourne Cup Carnival saw increased crowds and viewing audiences, the VRC conducts 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 to Seven News read.
The VRC suffered a $24.2 million loss in 2023-24 in the wake of a $14.9 million deficit from the previous financial year, according to its most recent annual report.
The VRC was forced to borrow $75million from ANZ Bank after losing an astonishing $70million in the last four years.
The main driver of the heavy financial losses were expenses, which soared from $3.6million to $222.2million.
The Victoria Racing Club, which stages Australia’s biggest race the Melbourne Cup, has begun axing around 40 jobs
New VRC boss Kylie Rogers (pictured centre) faces a tough job to turn around the businesses financial fortunes
This followed the VRC splashing out $128million on a grandstand that opened in 2018 with other capital works costing around $18million for the past two years.
Revenues have been down despite a rise in memberships, which hit a record high of 34,240.
The news of job losses was greeted with shock and dismay by racing commentators and fans alike.
‘So sad to hear the news of major redundancies at VRC,’ Seven racing pundit Jason Richardson wrote.
‘We have unfortunately lost some great people to the club and the wider racing industry.
‘(Love) to my friends and colleagues.’
Some racing fans blamed the VCR’s ‘reckless spending’ for the job axings.
New VRC CEO Kylie Rogers, who previously held senior roles with the AFL, has been given the job of restructuring the business to get it back in the winner’s circle.
The annual report struck an optimistic note.
Despite bumper crowds and increased memberships, the Victoria Racing Club is in a deep financial hole
‘The club maintains a positive outlook for the future, which is supported by the recently executed media rights and sponsorship agreement commencing for the 2024 Melbourne Cup Carnival,’ the report said.
‘Due to timing of contracted revenues and increased delivery costs associated with the initial period of the agreement, the club expects to see significant uplift from 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 redundancies has not been confirmed.
