Desperate VRC raids Everest rival race for Melbourne Cup prize money
Victoria Racing Club is seeking to strip money from a race set up to rival Sydney’s Everest to pay for the Melbourne Cup because of a cash crisis.
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Victoria Racing Club is seeking to strip money from a race set up to rival Sydney’s Everest to pay for the Melbourne Cup because of a cash crisis.
A secret document has revealed the Victorian Racing Club wants to take money from the All Star Mile, which was set up to challenge the $20 million Everest to push up the Melbourne Cup prize money.
The move is the latest blow to Victorian racing, which has been under siege from a Peter V’Landys led reinvigoration of New South Wales racing.
Victorian racing’s financial woes come ahead of a vote from Australian Turf Club members about the $5 billion sale of Rosehill, which could supercharge New South Wales prize money further.
“The VRC suggest a decrease in both the Group 1 $2.5 million All Star Mile and Australian Cup to a level of $2 million for each race would not have a material impact to the quality of the field in both races and retain returns to the industry,” the VRC Prizemoney Submission stated.
“This would free up $1m in prize money which could be used on…. Increasing the G1 Melbourne Cup to $10m (up from ($8.7m).”
The club also suggested that money could be spread across the Melbourne Cup Carnival.
Racing Victoria, which controls prize money in the racing industry, has insisted there was “no additional funding” available this year because of a 5 per cent wagering downturn, according to the secret document.
The VRC has lost $70 million over four years and must refinance its $57.5 million debt with ANZ by November this year.
It comes as angry members have complained about ticket prices for the Melbourne Cup Carnival hitting almost $2000 and bewilderment that its new $130 million stand has been closed on smaller race days.
And sources close to the TAB claim that its new chief executive Gillon McLachlan was looking to get better value out of its $32 million broadcast rights deal, which was signed in conjunction with Nine before he took over the wagering company.
A senior racing figure claimed the VRC had been “completely delusional”.
“The crowds used to be mental, we had to delay the start of races because we couldn’t get back from the mounting yard to saddle our horses,” a source said.
“There were three or four years where we were getting 100,000 people on Oaks Day and that’s mid week.
“It’s not tenable, this can’t keep going on. They are going to reach a trigger point.”
Flemington has been cutting costs to balance its books, making 40 people redundant last year.
Members have also noted that they no longer serve free French champagne in the committee, instead offering only T’Gallant sparkling wine, which sells for around $20 at Dan Murphys.
VRC chief executive Kylie Rogers, who moved across to racing from the AFL in September last year, insisted that the club was “financially stable”.
“Prizemoney is set by Racing Victoria, but the VRC is committed to top-ups for the Melbourne Cup Carnival in 2025 and beyond,” she said.
“Events like The Everest help grow the sport, as does the All-Star Mile. We embrace racing innovation - it lifts the whole industry.”
Flemington has also been dealing with the departure of the Godolphin stables from the course, however it has leased some of those boxes to James Cummings, Annabel and Rob Archibald and Glen Thompson.
The VRC board, chaired by former chief executive Neil Wilson, continues to have a vacancy after the retirement of Dave Barham, who is also president of the Essendon Football Club.
The remaining board members include Vice Chair Michael Ramsden, NAB executive Michael Sadie, EY executive Glenn Carmody, Sophie O’Kane, Black Caviar owner Neil Werrett, Vin Cox, who recently parted ways with Yulong Park billionaire Yuesheng Zhang, former Crown executive Ann Peacock, Allison Purdey and Ms Rogers.
There are no current plans for a replacement for Mr Barham, with the next annual meeting to be held in December.
A potential board challenger, who asked not to be named, said: “The current board have for too long been saying one plus one equals four. The problem is this current VRC board will never be able to live within its means. It’s not in their DNA.”
Mr Wilson, who stepped down from a separate role at embattled tech company Dubber last year, oversaw the deal with TAB and the building of the club stand.
John Wise, who challenged for the board last year, said he was disappointed that the new Club Stand was closed on Flemington’s New Year’s Day race meeting.
The Everest has shaken up Victorian racing, attracting a crowd of almost 50,000 last year in its eighth running.
The $20 million prize purse for the 1200m sprint race is more than double the $8.7 million on offer at the Melbourne Cup last year.
The All Star Mile, first run two years after the Everest, was designed to challenge the Sydney race.
It offered a $5 million prize money pool but that has been halved, with the race moving from the Spring to Autumn Carnival.
The VRC’s bid to use All Star Mile money to boost the Melbourne Cup comes as Moonee Valley Racing Club pushed to increase Cox Plate prize money from $5 million to $8 million.
The club will close down for two years after this year’s weight for age classic while it rebuilds its track, with Flemington or Caulfield likely to take on the Cox Plate for 2026.
MVRC chief executive Michael Browell said he wanted to see an increase in Cox Plate prize money.
“We want it to go beyond $5 million, whether that’s six, seven or eight million we will gladly accept any contribution from the racing industry,” he said.
“The Cox Plate is one of the top 10 races in the world and it’s the second biggest wagering race,” he said.
The Melbourne Racing Club declined to comment on prize money discussions.
“We continue to work actively with Racing Victoria regarding prize money allocations for Spring features ahead of the 2025-26 racing season,” it said in a statement.
Peter V’Landy’s declined to comment.
stephen.drill@news.com.au
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