Flemington sacks 40 staff a month after bumper Melbourne Cup
The Victoria Racing Club has axed up to 40 jobs just three weeks before Christmas as the venue that hosts the Melbourne Cup moves to rein in years of spiralling debt.
The VRC recorded a $24 million loss for the past financial year and has now lost more than $70 million across the past four years.
VRC chairman Neil Wilson gets the use of a Lexus in his role with the racing club.Credit: Getty Images
More than 15 per cent of the VRC’s 240-strong workforce were told this week that they would be losing their jobs – the cuts coming less than a month after the club trumpeted the success of its Melbourne Cup week carnival.
News of the job cuts emerged on social media. Racing industry broadcaster Jason Richardson posted on X: “So sad to hear the news of major redundancies at VRC. We have unfortunately lost some great people to the club and the wider racing industry.”
Two senior industry sources not authorised to speak on behalf of the club confirmed to this masthead that up to 40 staff members had been cut.
The VRC released a statement, saying: “The club has not been immune to rising costs across the supply chain required to deliver more than 20 Flemington race days including the four days of the 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.”
The VRC’s 2024 annual report revealed that the wages bill of key management personnel had soared by $1 million to $4.65 million in the past financial year, compared with $3.63 million the previous year.
While members of the board don’t get a salary, they receive benefits, reimbursements and travel allowances. It was reported by this masthead last week that VRC chairman Neil Wilson gets a free Lexus courtesy of the car brand, which is the Cup carnival’s principal partner.
Wilson replaced Amanda Elliott as chairman in 2020 and also served as VRC chief executive from January 2018 to November 2020.
Wilson was contacted for comment about the staff cuts, the club’s ongoing debt and his use of the Lexus. He referred this masthead’s questions to the VRC’s communications department.
The Victoria Racing Club announced Kylie Rogers, pictured with VRC chairman Neil Wilson, as its new chief executive in June.
In the club’s annual report, released last week, Wilson said hosting the Melbourne Cup Carnival cost the club $65 million.
Among widespread expenses, the club splurges on a Cup tour that circles the globe, pays big international acts such as Ronan Keating and Sophie Ellis-Bextor to perform during the carnival, and stages several Cup week functions – including hosting 1250 guests at the Crown Oaks luncheon.
“The club has been subject to increasing costs of doing business, as experienced throughout the broader economy, including Melbourne Cup Carnival-related entertainment, temporary infrastructure and event delivery costs,” the director’s report said in the annual report.
Former football administrator Steve Rosich, who led the Fremantle Dockers between 2008 and 2019, resigned as the VRC’s chief executive officer in April this year after four years in the role.
His replacement, Kylie Rogers, started in the position on September 1 and told this masthead in an October interview that the club had a “clear desire to be financially independent”.
She said the club had to reduce its cost base, as well as focus on “revenue generation” for core race days and non-race days.
The annual report also revealed that the club had an outstanding loan of $62.5 million with ANZ, and separately owed Racing Victoria $10 million.
The club entered the first year of a lucrative five-year Melbourne Cup broadcasting deal this spring with the TAB and Channel Nine, the owner of this masthead.
Cup week crowds were also up by 8 per cent this year – Victoria Derby day (81,612), Melbourne Cup day (91,168), Oaks day (50,873) and Champions day (62,022).
The job cuts come as racing continues to adjust to a significant down turn in wagering turnover – a 10 per cent drop last financial year and already nine per cent down this year.
Racing Victoria CEO Aaron Morrison announced last week he was restructuring the industry’s media businesses, Racing.com and RSN.
The changes would see RSN CEO Bernard Saundry step down at the end of this year, while Racing.com CEO Peter Campbell has agreed to finish up at the end of June next year.
Morrison also indicated that a number of Racing.com’s staff would be moved from their Docklands office back to Racing Victoria’s Flemington headquarters.
In the wagering space, TAB CEO Gillon McLachlan has cut 10 per cent of the gambling giant’s 2000-strong workforce since the company’s October annual general meeting.
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