Temporary Changes in Response to COVID-19
Whilst GRSA unconditionally applauds the measures that have been taken at both a state and federal level to implement timely restrictions aimed at reducing the spread of COVID-19, the revenue model for racing in South Australia is being negatively impacted by those changes. During this challenging time, our organisation has continued to work closely with the State Government and we remain grateful for its efforts and the broader commitment of support that it has indicated with regard to the racing industry.
Of greatest concern is the extent to which retail UBET clients appear to have been unprepared for a shift to digital wagering platforms when the COVID-19 restrictions were introduced, noting that betting activity in pubs, clubs and casinos has typically accounted for 70% of GRSA’s Product Fee payment. In response to the uncertainty that now confronts GRSA in the months immediately ahead, and then ‘beyond COVID-19’, the Board of GRSA has resolved for the following changes to be implemented from May 1.
All members of the GRSA Management team will accept a 20% reduction in remunerable hours down to 0.8FTE and participant stakemoney returns will be reduced overall by 15% in line with the following changes:
- All standard ‘graded’ meeting payments to winners and placegetters will reduce by 15%
- The current allocation to travel fees for trainers and starter fee payments will remain unaffected
- SA Bred payments will remain unaffected with the exception of the Maiden winner bonus reducing from $1,000 to $500 and the Group race super-bonus scheme being discontinued after FY22
- Feature race top-ups for series and events which are resolved in FY21 (i.e. date of final) will reduce by the equivalent of $200,000 annually (a further announcement will follow)
These changes are intended as temporary measures and will be wound back (in concert) at a time when the Board views that as being an appropriate and responsible measure to take, but no date or timeframe has been identified. They come on top of a separate wave of staff stand downs due to the forced closure of GRSA’s gaming and hospitality offers and other reductions relating to broader operational contraction, also within the context of COVID-19 restrictions. The Board’s position is motivated by ensuring that the burden of current risks and impact is being shared across the breadth of the operation so that GRSA is best-placed to rebound within the context of a future recovery phase.
In the months ahead, GRSA aims to gradually return to a full schedule of eight weekly race meetings as state border restrictions are lifted and racing numbers improve. The Mount Gambier region has been particularly affected by the loss of participation from Victoria in recent weeks and GRSA is working closely with the Club to retain a viable weekly racing opportunity at that venue.
Weekly racing at Gawler will return to the Sky schedule in May, which should be welcome news for northern participants already dealing with the loss of trialling opportunities due to the Government’s temporary closure of the Virginia straight track. Noting the current unavailability of that facility, the Coursing season has been deferred indefinitely. More broadly, with minor exceptions, existing participant licences will be rolled over for a 12-month period with no fees to be charged in the interim.
Further to recent consultation with the ICG and senior industry stakeholders, the Racing Manager and Grader have been afforded heightened discretion – with regard for the underlying spirit of the grading framework – to vary the approach they take to determination of field sizes, extensions of nomination, and other related decisions to maximise wagering revenue and protect opportunities to participate. In the same spirit, GRSA intends to respond fluidly to any opportunities which present within the Sky schedule, should such arise.
In noting that these are unprecedented times, GRSA remains committed to making the difficult decisions that are necessary to protect the future of the sport in this state. The approach that it is taking now will equip it to deal with any adversity that it may encounter in the weeks and months ahead and into the future.
For any media enquiries, please contact:
Matthew Watson – Greyhound Racing SA Marketing Manager
0422 671 314