Munz slams Racing Victoria over prize-money cuts 

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Prominent owner-breeder and chairman of the TROA takes aim at All-Star Mile, labelling its purse ‘an indulgence they can’t afford’ 

Heavyweight owner and breeder Jonathan Munz has taken a brickbat to Racing Victoria (RV) over its plans to slash prize-money next season, blasting the state’s thoroughbred industry peak body for the imminent reduction in returns to ownership participants.

Speaking as chairman of the Thoroughbred Racehorse Owners Association (TROA), the Melbourne-based owner urged RV to use common sense by cutting costs in other areas of the organisation rather than penalising owners for the downturn in wagering revenue.

He called for the purse and marketing budget for the “pop up” All-Star Mile (1600m), RV’s answer to New South Wales’s $15 million The Everest (1200m), to be cut to the tune of $5 million.

“Before RV considers reducing prize-money it needs to reduce overheads and inefficiencies at RV – I understand they are also looking at that, and that is a good thing,” Munz said in a TROA statement last night. 

“And after they have addressed that, they need to look at existing misallocations in prize-money to reduce or avoid the need to reduce mainstream prize-money levels for Saturday, midweek and country races. 

“The misallocation that sticks out is the $5 million allocated to the All-Star Mile plus a reputed hefty $2 million marketing budget for that race. The obvious thing to do is to reduce the prize-money for that race to $2 million and abolish the marketing budget. 

“That stands out as low hanging fruit and saves you $5 million. We, and most other people in the industry, have advised RV for a number of years that the All-Star Mile was overcooked and that the $5 million saving I have proposed would be better re-allocated to other prize-money. 

“In that regard, I am not being critical of the race and it would still be really good and worthy of  Group 1 status as a $2 million race, as I propose. Unfortunately, it is a pet project of some people at RV, but clearly not an indulgence they can afford.”

Fellow stakeholder groups Thoroughbred Breeders Victoria (TBV) and the Australian Trainers Association (ATA) also were vocal yesterday in their disapproval of the proposed diminishing of prize-money pools, backing Munz’s public stance.

RV’s general manager of racing Matthew Welsh, who was promoted to the key role last year upon Greg Carpenter’s departure to the Hong Kong Jockey Club, told the Victorian industry-owned media outlet Racing.com that there would be prize-money cuts “across the board” in 2023-24.

He also said the prize-money “arms race” between Australia’s premier racing states of New South Wales and Victoria was over due to the tightening of the fiscal belt.

“We’ve got some softening wagering, about three to four per cent on turnover, and then importantly, nine to ten per cent on income. You’ve got to cut your cloth to suit,” Welsh said on Monday.

“There’ll be savings made right across the business. And that will flow through to prize-money and bonuses in 2023-24. As much as possible, though, we’ll try and put in place wagering initiatives that bring about uplift.

“Rather than just a straight cutting of prize-money, we’d rather invest in racing initiatives that actually bring about wagering uplift so that we don’t have to dip too far into prize-money. 

“But I think there’ll be some sort of cuts for 2023-24. I don’t think they’ll be enormously significant.”

TBV president James O’Brien said the 2023-24 changes were “out of step with the wider Australian and international industries”.

“The term ‘consultation’ used in the RV press release implies that TBV has agreed to the announced changes. This is not the case,” O’Brien said yesterday.

“TBV informed RV prior to the announcement that we did not support the changes. Breeders, who make up 65 per cent of thoroughbred horse ownership in Australia, live and breathe this industry each and every day. 

“For RV to ignore the advice from the largest participant group in racing and make the announced changes is beyond comprehension.”

The ATA board and chief executive Andrew Nicholl were yesterday briefed by RV chief executive Andrew Jones, who was appointed to the role last year as a replacement for Giles Thompson, and Welsh about the change in distribution of prize-money to participants.

“We were bitterly disappointed to read the news overnight, stating RV intends to apply prize-money reductions across the 23-24 racing program, which they say are necessary to counter the effects of the recent wagering downturn,” Nicholl told ANZ Bloodstock News last night.

“Industry participants, like all people, face significant forward economic challenges. Unexpected prize-money reductions will only serve to compound this.” 

The ATA is expected to continue dialogue with RV in the coming days in a bid to come to a resolution over the cuts.

Racing NSW, in the typical combative style of its chief executive Peter V’landys, announced yesterday that its feature Melbourne Cup day race at Randwick, The Big Dance (1600m), would have its prize-money increased from $2 million to $3 million in 2023 and the restricted Country Championships Final (1400m) and Provincial-Midway Championships (1400m) would be worth $1 million respectively in 2024, up from $500,000 each.

Munz, the owner-breeder of Australia’s star sprinter and reigning The Everest (1200m) winner Giga Kick (Scissor Kick), has a significant broodmare band and stallion interests, including Waikato Stud’s Caulfield Guineas (Gr 1, 1600m) winner Super Seth (Dundeel), as well as numerous horses in training. 

He also owns Pinecliff, the state-of-the-art private training facility at Mount Eliza on Victoria’s Mornington Peninsula, which is used by Anthony and Sam Freedman as their main training base.

Last night, Munz also took aim at RV for its lack of consultation with stakeholder group TROA as well as the changes to the spring carnival, which has seen the Thousand Guineas (Gr 1, 1600m) moved from mid-October to after the four-day Flemington carnival in November.

He labelled the changes as “crazy” and said the new date would hamper the fillies’ autumn campaigns.

“The Thousand Guineas must stay where it is. The best day for it is three days later than currently, on Caulfield Cup day,” Munz said. 

“You’ll get a better field and keep the continuity into the VRC Oaks and the Empire Rose and, most importantly, be able to get those horses ready for the autumn. 

“What RV is proposing cannot work as you will be a month behind for races in the autumn. This is a very serious problem.”

The Sir Rupert Clarke Stakes (Gr 1, 1400m), which has also been moved from September to the new Caulfield meeting in November, is set to receive a prize-money boost of $500,000 to $1.5 million. 

Munz said increasing the prize-money for the Sir Rupert Clarke was unnecessary.

“And as far as misallocations go, the $1 million proposed for the Country Cups final on the new Caulfield race day makes no sense and is a total waste of money. It should be scrapped or reduced to $200,000,” he said.

Munz also questioned the increase in distance to 1400 metres for the Blue Sapphire Stakes (Gr 3, 1400m), traditionally a 1200-metre spring three-year-old race often used as a lead-up to the Coolmore Stud Stakes (Gr 1, 1200m), branding it as “a race looking for a purpose”.

TBV’s O’Brien also backed Munz’s position on the shifting of key spring races, confirming the breeders’ body wanted the Thousand Guineas and Sir Rupert Clarke to remain in their normal spots on the calendar.

“The Pattern of racing has been historically developed over many decades by informed, trusted and experienced industry participants,” O’Brien said. 

“To recklessly change the Pattern while disregarding feedback from industry stakeholder groups is alarming.

“TBV supports attracting new fans into the industry, however, not at the expense of the pillars which are integral to racing and breeding.”