MRC’s Billion-Dollar Contribution

Photo credit: Racing Victoria

The economic benefit of Melbourne Racing Club to the Victorian economy has been calculated at some $1.136 billion for the 2013-14 financial year, with the club generating some 4388 jobs in its various areas of operation. 

A report prepared by Ernst and Young found that MRC generated 1,837 direct jobs, but its impact was even greater in terms of flow-on impacts, with an over 2500 indirect jobs created.

“The Ernst & Young report highlights the size of the Melbourne Racing Club and its importance to the community, the racing industry and the Victorian economy, particularly since the business broadened beyond traditional racing-related revenue streams throughout the past five years,” MRC Chairman, Mike Symons, said.

“That more than two million people visited our venues in 2013/14, where we hosted almost 500 events, is a substantial figure, let alone the number of people, beyond 4,000, employed either directly or indirectly by the club.

“That includes the 100-plus trainers and 1,000-plus horses, plus countless vets, farriers, stable and track staff that call MRC venues either home or work.

“The scale of our business is extensive, essential to the prosperity of the racing industry in Victoria, a significant contributor to the community and Victorian economy, and growing.”

Horseracing related activities comprising 40% of activity, with gaming venues (34%), other functions and events (22%) and capital expenditure (4%) making up the contribution.

The recent release of the MRC’s 2013/14 annual report revealed that the club’s EBITDA increased by over 30%, to $23 million, in 2014.

Profit after tax almost doubled, to $5.8 million, leading to an increase in net assets to $408 million.

 “The strong performances of our non-racing annuity streams are now enabling us to reinvest in our core product of racing, our members, facilities and food and beverage offerings at our three premier racing venues, for which masterplanning is underway,” Symons said.

“The club boasts a strong balance sheet and cash flows for which we expect further growth throughout the current financial year and beyond. This will then materialise into capital projects, services to members and racing industry participants.”

This article first appeared on the Racing Victoria website and is reproduced here with their kind permission. For more on Off the Track visit http://rv.racing.com/the-horse/off-the-track/news