Racing: Axe looms over Avondale racetrack

Financial pressures could bring an end to racing at Avondale. Photo / Martin Sykes

The Avondale Jockey Club knows it's being squeezed out of existence.

But the famous Auckland club is trying not to focus on that as it closes its doors - perhaps temporarily, perhaps not - after its meeting on July 3.

The AJC announced yesterday it was suspending all racing at Avondale because of crippling financial pressure.

It has gone into negotiations to hold its upcoming race meetings which feature such historic races as the Avondale Cup, Avondale Guineas and Concorde at other northern tracks for the 2010-2011 racing season.

AJC president Ron Murphy says the attitude of racing's ruling body, the New Zealand Racing Board, has been clear that it does not see the AJC as a crucial part of racing in the Auckland area and is happy to see it disappear.

"But we don't want to inflame anything there - we just want to see if it's possible to ease the financial pressure by not racing at home for 12 months or so and see if racing can't be reinstated at Avondale."

Murphy says the AJC is paying $256,000 in interest payments on a debt of $2.7 million to the NZRB.

"We believe we can save close to $300,000 a year by doing what we're doing and not racing at Avondale."

Murphy said most of his committee and the AJC members were unhappy with the interest rates the Racing Board charge Avondale.

"The Manawatu Racing Club, as an example, pay between 3 and 3 per cent interest on their debt to the board.

"Even the dogs pay only 5 per cent.

"We're asked to pay 9 per cent.

"In 2008, our debt was meant to be paid in full to the Racing Board and we were only $1.6 million short.

"It would have been nothing for the board to have just rolled that over, but that wasn't done."

Last year, Avondale generated $753,000 income from its Sunday market, the lease of the infield, mainly for rugby and cricket, and a few incidentals.

Murphy said the Racing Board's Blueprint For Racing left Avondale in no doubt it was considered surplus to requirements.

"It was pretty much along the lines that Ellerslie will put in an all-weather track in three to five years. If you keep going through that period then we'll support you then you won't be needed and we'll take over your facility.

"Well, we didn't want that."

Which has clearly led to this impasse.

"For the last five or six years we've been crying out for help and we haven't been heard."

Only a few years ago, Avondale was a major force in New Zealand racing.

As its fortunes declined, its 22 race meetings a year - many of them previously high-profile affairs - have been knocked back to 13, all minor racedays, called industry meetings, apart from its Avondale Cup Meeting in December.

It's widely acknowledged that money cannot be made from industry-type race meetings - moderate horses being catered for on midweek dates, with poor attendances

Which means the AJC is in the impossible position of trying to balance the books with one major raceday - something that cannot be sustained.

"We lost practically all the [race] days we could make money out of," said Murphy.

The AJC yesterday gave redundancy packages to all its permanent staff. Two temporary casuals and part-time secretary John Craig will carry on.

"Avondale will continue as a training centre, but we won't be having barrier trial meetings," said Murphy.

Which, of course, leaves the question of whether Avondale should sell its real estate, bank the money and consolidate by racing at Ellerslie, a suggestion the committee has violently opposed in recent years.

No one can accurately predict what the land the racetrack sits on would be worth on the open market.

Acting secretary Craig says he thinks the often-heard $70 million is well wide of the mark.

"No one knows because we don't know how much of it the council would want retained as part of a green belt and therefore couldn't be sold.

"Perhaps $30 million would be closer to the mark."

Murphy says the club will do everything it can to remain positive.

"We believe we have been responsible.

"Our current treasurer is the financial director for Waitakere City and before him John Alexander, the CEO for Eden Park, was our financial man.

"We would love to return to race here at Avondale."