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Home / Sport / Racing

Racing: Clubs face tough decisions

Michael Guerin
By Michael Guerin
Racing Editor·NZ Herald·
11 Aug, 2015 05:00 PM4 mins to read

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Some of the country's harness racing tracks may close under a plan to reduce costs to the industry. Photo / Greg Bowker

Some of the country's harness racing tracks may close under a plan to reduce costs to the industry. Photo / Greg Bowker

Harness racing clubs are facing major changes under a radical new plan to reduce industry costs.

Delegates at HRNZ's annual conference have heard how many of the 45 clubs in New Zealand are already struggling and are likely to be under more strain in coming years.

With the industry dealing with the loss of grants from gaming machine trusts, many clubs are already dipping into savings just to pay the bills.

HRNZ fears those clubs could be crippled by delayed maintenance costs set to skyrocket because of earthquake compliance work and health and safety regulations.

While major tracks such as Alexandra Park and Addington already have external revenue streams and plans to build others, most smaller clubs aren't making enough money from racing to meet such costs.

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HRNZ bosses presented a discussion paper to the conference on how best to cut industry costs, with the most striking point being reducing the 45 clubs to nine "super clubs".

That would see clubs from the same region bundled together under one management structure, as northern clubs have done under the Auckland Trotting Club umbrella.

The nine major clubs would then be able to allocate dates to tracks inside their regions, but HRNZ chief executive Edward Rennell told delegates that track closures were still possible, and probably likely.

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Clearly there are some clubs that may struggle to maintain their tracks and facilities at present rates. Under the proposed new regional structure, however, clubs would have greater involvement in decision making and determining what is best for their respective regions, said Rennell.

"A key factor we have to look at and discuss with clubs is the costs of holding meetings at certain tracks, which can vary wildly because of factors like Trackside costs and the costs to the industry and owners of getting horses to certain areas.

"We know that things have to change for the health of the overall industry so we have outlined some plans. Some of the presentations were pretty powerful, highlighting the status quo is unsustainable.

"But they were well received and I think a lot of people realise we have to act now to keep the industry going, there is no point sitting back thinking everything is okay because this time next year or the year after some clubs aren't going to be able to pay their bills."

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HRNZ will now schedule forums around the country to discuss the proposed changes to club structures and what that will mean to their individual identities.

"We may have the major clubs managing their region's racing dates and meetings but smaller club committees who still work with the local communities and support bases. We want to go to these regions and ask them what works for them and how they believe they can best use the dates available. So this is just the start of a long process and we will talk to people right around the country.

"But, yes, it is realistic to think out of this we could see some tracks close. That would happen regardless of this process with increased health and safety responsibilities. The proposed new structure will allow these issues to be considered by the clubs as part of an overall regional plan that they will develop."

Rennell is quick to point out HRNZ won't be looking to fix things that aren't broken. "Harness racing has some iconic meetings and we obviously won't be messing with those regardless of the size of the clubs or how often they race. But we want people in the industry to be realistic about how many tracks or clubs each region needs or can sustain.

"And while there will always be parochialism, we were really encouraged by how open the delegates were to listening to the presentations and taking the facts on board."

HRNZ bosses will not be drawn on which tracks are most at risk of closure but those that race least often with the oldest facilities would seem the most vulnerable because of the costs of upgrading them or even keeping them OSH compliant.

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Distance from horse populations could also be a factor, because of the expense to owners of bringing horses to those meetings, especially in colder months when there are no holiday crowds to fill the coffers.

"We see a calendar changing a bit in the years to come and some of what has worked in the past may not work any more, so we could see tracks and clubs have their dates changed to suit when racing in their region can be most profitable.

"But before any changes are made, we want to talk to the people involved to find regional solutions."

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