More cuts forced on Racing NSW as prizemoney reduced to brace for economic hit of COVID-19

After decreasing stakes for major races at The Championships, Racing NSW announce another series of prizemoney cuts to try and protect the sport against the economic impact of coronavirus.

Reduced wagering and course lockouts have hit racing’s bottom line despite meets surviving.

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Racing NSW has announced further prizemoney cuts until the end of the financial year as the racing industry tries to absorb the financial impact of the worsening coronavirus pandemic.

A week after announcing stakes decreases for major races at The Championships, Racing NSW detailed another series of race prizemoney reductions.

This includes decreasing minimum stakes for Sydney meetings from $125,000 to $100,000.

In a statement released by Racing NSW on Sunday, it cited the reason for the latest round of prizemoney cuts is because “wagering continues to be severely impacted by the current lockdowns of pubs, clubs and TAB retail agencies.”

Reduced wagering and course lockouts have hit racing’s bottom line despite meets surviving

The reduction in funding from wagering is compounded due to the fan lockouts on racetracks which is costing NSW race clubs other sources of revenue from on-course attendances, catering revenue and sponsorship.

The prizemoney cuts include:

• Races of $100,000 and above will be reduced by 20 per cent
• Races between $25,000 and $100,000 will be reduced by 10 per cent;
• Minimum prize money for Country TAB race meetings will be reduced from $22,000 to $20,000.
• There is no reductions for non-TAB and picnic races.

Racing NSW conceded the prizemoney cuts “would not cover revenue losses so some meetings will be run at a loss.”

Racing is the one sport so far continuing to take place during the coronavirus crisis.

“Accordingly, Racing NSW will absorb the losses from its future fund and also provide further funding to NSW race clubs from Racing NSW’s cash reserves to sustain those race clubs while the industry faces the uncertainty and challenges presented by the coronavirus pandemic,’’ the statement read.

The prizemoney reductions will apply after Saturday’s Queen Elizabeth Stakes day at Randwick and continue until June 30.

Racing NSW also confirmed race programming changes that became necessary after the strict biosecurity protocols resulted in the stand-alone Saturday meetings at Hawkesbury (April 25) and Scone (May 16) were transferred to Rosehill Gardens.

Gosford’s inaugural stand-alone on May 9 has also been shifted to Royal Randwick with the $500,000 The Coast replaced by a benchmark race.

Meanwhile, pressure is mounting on Racing Queensland to reverse its decision to scrap the winter carnival which was due to start later this month, AAP reports.

Jake Bayliss rides Okeechobee to victory at Doomben Racecourse in front of empty stands.

The Brisbane Racing Club, breeders, and some trainers and owners are pushing for a scaled down carnival to be run in June and July after RQ cancelled all stakes racing because of uncertainty amid the coronavirus crisis.

BRC chairman Neville Bell said it was vital to have some type of carnival even without crowds. The Sydney autumn carnival is continuing with reduced prize money for Group 1 racing.

Originally published as More cuts forced on Racing NSW as prizemoney reduced to brace for economic hit of COVID-19