2011
Greyhound Racing SA - Annual Report 2011
Greyhound Racing
SA Limited (GRSA)
is the authority for
greyhound racing in
South Australia
whose key responsibility
is to ensure that
the sport is managed
in a responsible
and ethical manner.
Pursuant with its
constitution, GRSA’s
role is to establish,
adopt and enforce
both the South Australian
and Australian rules
of racing and to ensure
the sport is conducted
effectively in
South Australia.
About GRSA
03
ABOUT
GREYHOUND RACING
SOUTH AUSTRALIA LTD
Industry Mission
Statement
GRSA exists to drive a vibrant industry
that consistently provides exceptional
racing with a reputation for quality
and innovation delivered from racing
environments which provide attractive
returns and enjoyment to all.
2011 Industry Snapshot:
1,914 registered participants
Including:
115 breeders,
378 registered trainers
1,407 registered owners
14 handlers
285 TAB meetings with
coverage via Sky 1 (165),
Sky 2 (118) and TAB Radio (2)
36 Non-TAB meetings
14 Coursing Events
Total of 11 Group races and
7 Country Cups
3,284 races conducted in SA
TABLE OF CONTENTS
03 About GRSA
04 Table of Contents
07Chairman’s
Report
11 Year In Brief
Contents
05
13 Corporate Governance
23 Industry & Stakeholder Engagement
15 CEO’s Report
29Directors’
Report
53Auditor’s
Declaration
34 Financial Reports
54 Members Of Company/
Gambling Statement
25 The Challenge
19Participation
26Events
21 Competitive Environment
51Directors’
Declaration
52 Auditor’s Report
“
“
Our vision for the
future is to support
the local industry to
develop the capability
and capacity to
compete in a
responsible and
sustainable way.
In 2010-2011, despite
ongoing global financial
uncertainty and a subdued
local economy, GRSA
continued to enjoy
sustained wagering
growth. Our year end
market share of 15.96%
from TAB wagering
turnover demonstrates
our strength and resilience
in the local market whilst
revenue from Racefield
fees grew strongly,
finishing 11.8% up from
the previous period.
This growth can be attributed to two key
factors which contributed to increased
consumer awareness of and improved
access to GRSA products. First and
foremost was GRSA’s decision in early
2010 to participate in the launch of Sky2
and to build into its program more
local product. Secondly, the fierce
competition between wagering operators
and the traditional parimutuel operators
has created a wealth of high quality
products and services for the wagering
consumer to choose from. Furthermore,
advances in online technology now
provide consumers the freedom to
access these products anytime
and anywhere.
The cumulative result of these factors is
a wagering environment which is more
attractive, more accessible and more
tailored to the individual wagering
consumer. This strength in wagering
has enabled the Board to announce
numerous prizemoney and related
initiatives with stakes reaching the $4.8
million mark during the financial year.
2011 began with the announcement
of Matt Corby as GRSA’s new Chief
Executive. Matt brings impressive
industry experience and leadership
credentials to this role and since his
appointment he has focussed his skills
and attention on making 2011 a truly
transitional year for GRSA. Our vision for
the future is to support the local industry
to develop the capability and capacity
to compete in a responsible and
sustainable way. Matt and his team
have taken practical strides towards
achieving this through collaboration and
consultation with industry participants
and key stakeholders.
07 Chairman’s Report
CHAIRMAN’S
REPORT
Over the past 12 months the local
greyhound racing scene has been
dominated by a series of successful
major events held at Angle Park. In
August we hosted the Australian
Greyhound Racing Association (AGRA)
National Championships and industry
forums which attracted delegates from
across Australia and New Zealand and
placed Adelaide firmly on the national
stage. In January we delivered our 39th
Adelaide Cup which had to compete
for coverage against a raft of other
events as it coincided with the start of
Adelaide’s festival season. This event
remains our premium race event locally
and a key opportunity to showcase
greyhound racing to the broader public
as well as to our corporate and
government partners. Lastly, March
saw Adelaide host the AGRA Biannual
Conference and Greyhound
of the Year.
The combination of these events
provided an excellent opportunity to
showcase Angle Park and to put South
Australian racing into the spotlight.
We received extremely positive
feedback on the Nationals and
Biannuals and GRSA is confident it can
build on this reputation to deliver great
showcase events and industry forums in
the years to come. The professionalism
of our management throughout this
demanding period was valued and
acknowledged by the Board.
At the Board level we welcomed
Ben Miels as a Director of the company
and Chairman of the Audit Committee.
08 Chairman’s Report
CHAIRMAN’S
REPORT
The Board farewelled David Cross and
I would like to take this opportunity to
record the company’s appreciation of
his valued contribution during his
tenure in the role.
I would also like to express my sincere
appreciation to my fellow Directors for
their contributions over the past twelve
months and to highlight the Board’s
pro-active participation in broader
activities such as visiting Member Clubs
and regional communities on matters
pertinent to our industry’s future.
In 2010-2011, the Board and
Management have been, as always,
conscious of maintaining strong
professional relationships with our key
stakeholders including Sky, SA TAB,
state and local governments, sponsors
and suppliers, as well as with our national
and local industry colleagues.
GRSA continues to play a major role in
building positive community regard for
greyhound racing and for promoting
responsible welfare practices through
initiatives such as the Greyhound
Adoption Program (GAP). GAP’s
activities in 2011 spanned community
events and education, the management
of a quality adoption program, and the
development of strong partnerships in
the tertiary and local government sectors.
We are confident we can maintain our
strong commitment to providing the
highest quality racing in South Australia
for years to come. We believe the local
industry offers an attractive wagering
product and, in doing so, increases the
emotional connection many active
wagering consumers have with
greyhound racing.
Finally, on behalf of the Board I would
like to acknowledge the commendable
level of industry engagement and shared
purpose established by GRSA’s Chief
Executive Matt Corby in this past year.
Matt and his management team have
already achieved significant progress
towards our goal of ‘future proofing’
the local industry and the Board is
grateful for the enthusiastic support of
the local industry in taking the first steps
down this path.
GRSA is committed to the highest standards of greyhound welfare through the
demonstration of a pervasive and progressive focus on animal welfare initiatives.
The rate of injury amongst racing greyhounds (2.07%) represented
a 5% reduction on the previous year.
RUNNERS
INJURIES
%
Angle Park
TRACK
13,204
295
2.23%
Gawler
5,665
103
1.82%
Strathalbyn
1,290
23
1.78%
Port Pirie
1,128
40
3.55%
Port Augusta
977
13
1.33%
Barmera
751
17
2.26%
Mount Gambier
2,004
25
1.25%
Virginia
1,131
25
2.21%
26,150
541
2.07%
TOTALs
2010
(’000)
$6,090
$3,264
$4,361
$15,626
$122,443
Financial Snapshot
• Market share of 15.96% as
at 30 June 2011
• Consolidation of second
market share position
behind thoroughbred racing
Corporate
• Conduct of National Championships
and Biannual Conference in Adelaide
• Introduction of Sky Racing coverage
of meetings from Mount Gambier and Strathalbyn
• Conduct of ‘open’ Industry Future
Workshop forums with SA
participants
• Development of strategic Club
Viability framework
Racing
• Announcement of rescheduling of
Adelaide Cup to an October timeslot from 2011-12
• Addition of new Sunday matinee
meeting timeslot on Sky 2 –
Mount Gambier
• National Championships at Angle
Park taken out by Smooth Fancy (Sprint final) and Blue Lorian
(Distance final)
• Group 1 Adelaide Cup won by Kilty
Lad for trainer Kelly Bravo
• Satanic Cash named 2010
Greyhound of the Year for trainer
Bob Isaacson
Food & Beverage
The Urban Superway project works
materially impacted the gaming and
2011
(‘000)
$6,585
$3,649
$4,810
$16,216
$129,176
Increase
(‘000)
$495
$385
$449
$590
$6,733
hospitality arms of the business from
January 2011.
• Gross profit on food and beverage
operations of $1.11m (down 11.8%)
• Total covers in McQueens of 41,854
for the year (up by 7.2%) • Gaming turnover (per machine per
day) up 3.8% on the previous year
Marketing
• Negotiation of a three year
sponsorship agreement with
the SAAFL
• Renewal of the sponsorship
agreement with West End
Brewery (a subsidiary of the
Lion Nathan Group)
• Negotiated coverage for
international racecaller and Adelaide Cup ambassador Sarina O’Day on Channel 7’s Today Tonight program
• Rebranding of the Hunnies campaign
• Back-end development of the
website for future integration with the
NSW website www.thedogs.com.au
• 244,189 website visits
Increase
(%)
8.13%
11.78%
10.30%
3.78%
5.5%
11
Net TAB Revenue
Racefield Fee Revenue
Stakemoney
Local TAB Turnover
National TAB Turnover
Year in Brief
YEAR
IN BRIEF
safety rail concept in conjunction with
Steriline Racing
• Establishment of a special committee
to investigate hock injury variables
GAP Greyhound
Adoption Program
• 121 GAP greyhounds adopted out to
new families
• GAP display awarded first prize in its
Exhibitor Category – Royal
Adelaide Show
• Recruitment of 11 new foster homes
supporting GAP (total of 63)
• New collaborative partnership with
TAFE SA involving the annual
fostering of 20 GAP greyhounds
Source of Revenue
Animal Welfare
• Out of 26,150 runners there were
541 injuries equating to 2.07%
• 664 swabs were taken, with 5
returning positive. Ratio of starters to
swabs taken - 2.54%, ratio of positive swabs to swabs taken – 0.75%
• During the year 103 kennels were
inspected which equates to an inspection rate of 20% of registered premises
• Development of innovative
Revenue from TAB
Racefield Fees
Gaming
Food and Beverage
Other
Governance
13
CORPORATE
GOVERNANCE
GRSA and the Board are
committed to achieving
and demonstrating the
highest standards of
corporate governance.
To achieve this, GRSA has
policies and procedures
designed to promote high
standards of governance
and performance which
are reviewed as required,
reflecting changes in
governance standards
and practice.
The Directors are responsible for the
performance of the company in both the
short term and the longer term and seek
to balance what are often competing
objectives in the interests of the company
and its stakeholders as a whole.
Day to day management of the
company’s affairs and the implementation
of the company’s strategy and policy
initiatives are formally delegated by the
Board to the Chief Executive Officer
and management team, as set out in
the company’s delegations of
authority policy.
A description of the company’s main
corporate governance practices is set
out below.
Board Composition
In accordance with the GRSA
constitution, the Board comprises four
independent Directors and one
Director elected by licensed industry
persons. Details of members of the
Board, their experience, expertise,
qualifications, term details and
independence status are set out in the
Director’s report under the heading
‘Information on Directors’.
Board Responsibilities
The responsibilities of the Board
include:•Establishing the company’s vision,
mission and values
•Providing strategic guidance to the company including the development and approval of GRSA’s corporate strategy
•Reviewing and approving business
plans, the annual budget and
financial plans including available resources and capital expenditure initiatives
•Overseeing and monitoring
organisational performance and the achievement of strategic goals and objectives
•Compliance with the Code of Conduct
•Progress of major capital expenditure
and other significant projects
•Monitoring financial performance and
liaison with the company’s auditors
•Appointment and performance
assessment of the Chief
Executive Officer
•Ensuring there are effective
management processes in place and
approving major company initiatives
•Demonstrating corporate leadership
•Enhancing and protecting the
reputation of the company
•Overseeing the operation of the
company’s compliance and risk
management framework
•Ensuring effective communication to
members of company, staff and key stakeholders
Conflicts of Interest
The Directors comply with all their
obligations either at law or under the
Corporations Act in relation to potential or
actual conflicts of interest. The Directors
have a Board Conflict of Interest Policy
which outlines the obligations and
processes the Directors will adopt. At a
procedural level, the Directors utilise an
annual standing notice as well as
adhering to a standing agenda item in
Board meetings for the management of
conflicts of interest.
Board Charter
The Directors adhere to a Board
Charter which is designed to ensure
that it reflects the highest standards of
behaviour and practices necessary to
maintain the integrity of the company.
Members of Company
Communication
All members of company receive an
annual report. In addition, there are
quarterly updates on the company’s
performance and other material
issues as prepared for and presented
at the Members of Company
Information Meetings.
“
“
The competitive
environment in which
GRSA operates makes
it fundamentally
important that both
market share and
Racefield Fee income
is maximised.
CEO’s Report
15
CHIEF EXECUTIVE OFFICER’S
REPORT
The National Championships
The year commenced on a high note,
with Adelaide taking its turn to host the
AGRA National Championships, having
last hosted the series in 2003. The
event was a resounding success
culminating in two memorable finals.
Local champion, Satanic Cash,
produced one of the runs of the year in
the distance final when he stormed
home over the top of all bar Blue
Lorian in his quest to secure a
hometown victory.
The Championships, and the
subsequent March Biannual
Conference, attracted a total of 51
national delegates representing AGRA
and Greyhounds Australasia for seven
days of conferencing, general
meetings and racing. The two events
were managed seamlessly, and the
subsequent feedback from
delegates only reinforced SA’s enduring
reputation as a national leader in terms
of major event presentation.
A special note of thanks must be
extended to GRSA marketing and
racing staff (former and current) for the
particular contribution that they made
towards the planning and conduct of
both events.
The National finals were conducted
before a large crowd in perfect
conditions on the last Saturday
afternoon of August, vindicating the
strategic decision to run the meeting
away from SA’s traditional Thursday
night timeslot. The support of Sky
Racing in making the Saturday timeslot
available for this premier event warrants
special mention.
The cumulative marketing expense of
$324,000 pertaining to the National
Championships comprised of state
government funding of $200,000,
sponsorship through Tattsbet of
$20,000 and additional expenditure
of $104,000 by GRSA.
This requires the broadcast of
racing on Sky so that SA TAB and
other wagering operators have access
to racing vision that supports wagering
on SA product. To that end, DVN
facilities were installed at both
Strathalbyn and Mount Gambier.
Wagering Income
Adelaide Cup
Our code continued to perform strongly
in SA, with average market share at
June 30 equating to 15.96% compared
with 16.09% at the end of the previous
year and up by 1.75 percentage points
over a five year period since 2007.
Across the other codes, thoroughbred
market share increased by 1.11
percentage points to 70.69% and
harness fell 0.97 percentage points
to 13.35%. In line with its corporate
objective to maximise returns to industry
participants, GRSA prizemoney was
increased by 9.2% to $4.76 million
The Adelaide Cup, being run in its
traditional January timeslot for the last
time in early 2011, was taken out by
star Victorian performer Kilty Lad.
Going forward, the Adelaide Cup will
be conducted as a two week series in
October, following on directly from the
Group 1 Paws Of Thunder series and
leading into the rich Victorian classics
including the Topgun and
Melbourne Cup.
In addition to TAB Product Fees,
wagering income is derived from
Racefield Fees which are earned when
wagering operators (excluding Tattsbet)
utilise South Australian greyhound fields
to support their own wagering on those
events. Income from Racefield Fees
increased to $3.649 million in 2010-11,
representing an increase of 11.8%.
Racefield Fees payable based on local
(SA TAB) wagering on interstate
greyhound racing increased to
$1.593 million, up by only 2% on
the previous year.
The competitive environment in which
GRSA operates makes it fundamentally
important that both market share and
Racefield Fee income is maximised.
The decision to move the Cup was
premised upon a number of factors
including the potential for the series to
be adversely impacted by the summer
heat, the avoidance of clashes in the
national Group race schedule, the
opportunity for enhanced media
coverage and the absence of
competing major events (eg Tour
Down Under, Big Bash 20/20 cricket).
CEO’s Report
16
CHIEF EXECUTIVE OFFICER’S
REPORT
Strategic Reforms
Animal Welfare
In April of this year, GRSA conducted a
series of open workshops with industry
participant groups in an effort to
engage their understanding of the
challenges and opportunities
confronting the SA industry. The
workshops, conducted over four days,
drew together participants from all
regions, all participant groups and
various demographics. The information
that was shared with workshop
attendees was intentionally confronting
and, to the best of our ability,
represented an objective analysis of
the health of greyhound racing in this
state. Most importantly, it presented
an opportunity to provide vital context
around key strategic issues including
the need for some consolidation
of facilities, the recent decline of SA
breeding, and the impact of weekly
programming on GRSA’s revenue model.
Our current corporate objectives
provide for animal welfare being
integral to all that we do. GRSA is fully
compliant with all requirements
identified under Greyhound
Australasia’s animal welfare matrix and
enjoys a reputation at a national level
for being a leader in this area. During
the 2010-11 year, 121 greyhounds
were adopted through the GAP
program. GAP represented the industry
with distinction at numerous fairs and
pageants, and received first prize in
their Exhibitor Category at the Royal
Adelaide Show for the second
consecutive year.
In the period immediately following the
workshops, GRSA formalised a
framework for viable Club activity, in
support of which a delegation of GRSA
Board and Management attended a
series of Club visits during June.
Of the Clubs that were visited,
submissions were initially sought from
Port Pirie, Port Augusta and Riverland
which would identify their separate
ability to satisfy the criteria for viability.
Port Augusta ultimately submitted a
successful plan for viability and has
since been allocated a new schedule
of dates for 2011-12.
There are 63 registered foster care
homes in SA, of which as many as
half are operational at any one time.
The program approved 11 new foster
homes during 2011, and realised a
welcome boost in capacity through
GRSA’s newly formed association with
TAFE SA. Students from the veterinary
sciences facility at the Gilles Plains
campus will continue to foster an
estimated 20 greyhounds annually on
GAP’s behalf. More recently, GRSA
has commenced discussion with
University of Adelaide (Roseworthy
campus) to investigate opportunities
for collaboration between the two
organisations.
A special Committee was convened in
March of this year to review the
variables that potentially contribute to
a higher incidence of hock injuries
during the hotter months of summer.
The group comprises representation
from GRSA Management, industry
participants, veterinarians (Dr Chris
Doyle and Jane McNicholl) and the
RSPCA. In conjunction with
Greyhounds WA, the Committee has
succeeded in establishing a national
standard for uniform reporting on hock
injury incidents with the objective
of identifying particularly common ‘risk’
factors that may contribute to the injury.
The uniform reporting process is
currently being implemented across
all states.
The implementation of the new safety
rail at Angle Park commenced in May
of this year. The innovative design,
which utilises the collapsible rail
technology more typically associated
with thoroughbred racing, has been
implemented along the full length of the
home straight. The back-straight will be
completed with a transparent version of
the railing that accommodates visibility
of runners. The design concept was
developed in conjunction with Steriline
Racing and represents a world-first in
this product type.
Administration
The latter part of 2010 proved to be a
most challenging period for the
company due to the departure of a
number of senior management staff
over a relatively concentrated period.
I must extend a sincere note of thanks
to the senior management team for their
professional approach and their
appetite for success.
Paul Marks
Integrity and Standards Manager
Shaun Mathieson
Senior Management Team
Brian Trumble
Finance Manager
Shaun Mathieson
Racing Manager
Leigh Rogers
Hospitality Manager
Sam Jeffries
Marketing Manager
Leigh Rogers
I would like to thank the hard-working
management and staff at GRSA for the
special contribution that they make to
the industry. The company now enjoys
an optimal balance of experience and
new talent, and is well-placed to seize
the opportunity that lies ahead.
In such a highly competitive
environment, the robustness of the
Board’s strategic framework will
remain a key to the future success of
the organisation.
Matt Corby
Chief Executive Officer
Sam Jeffries
To their absolute credit, the new
management team and the staff of
GRSA have fully embraced the
changes that accompany such a
period of transition, and the current
sense of stability and purpose within
the organisation is one of the most
pleasing aspects upon which to report
from this period. To those who moved
on to new challenges, including our
long-serving Manager – Finance and
Administration, Oliver Bott, the Board
acknowledges their contribution and
wishes them every success in their
future endeavours.
On a final note, I would like to extend a
particular note of gratitude to the Board
for the courage and conviction that
they demonstrated during the year,
particularly in relation to its support
of some difficult decisions relating to
GRSA’s regional tracks strategy.
Paul Marks
Other than the Chief Executive
position, new senior appointments
were required in the Finance, Marketing
and Racing departments to fill
separate vacancies. Whilst this
presented a number of short-term
challenges in terms of resourcing, it
also represented an unusual opportunity
for the company to apply new thinking
and fresh spirit to some old challenges.
Brian Trumble
CEO’s Report
17
CHIEF EXECUTIVE OFFICER’S
REPORT
Participation
19
PARTICIPATION
Tracks & Facilities
During the Industry Future Workshops
that were conducted in April, significant
focus was placed on the need to
identify a tracks and facilities strategy
that aligns the SA model with the
benchmarked national standard. The
inherent limitations of the SA revenue
model only reinforce the need for the
Board to identify a model that
establishes a pragmatic balance
between regional opportunities and
commercially sustainable investment.
Our (relative) surplus of racing facilities
is offset by a scarcity of dedicated
training, trialling and pre-training
facilities. GRSA has made significant
provision for facility investment in
2011-12 that specifically facilitates
training, trialling and general
participation opportunities.
The reforms that were identified late in
the 2010-11 year represent an attempt
to balance commercial, participation
and operational objectives in line with
an optimal industry return. In early
2012, the Board will release its longterm strategy relating to the location
and development of SA tracks and
facilities across the coming five years.
Viability
During the 2010-11 racing season, GRSA
secured a new fortnightly meeting in the
Sunday matinee timeslot, scheduled at
Mount Gambier for broadcast via Sky 2.
This new opportunity provides for an
additional wagering and racing
opportunity on a Sunday that effectively
draws on a separate nomination pool
from the remaining SA tracks.
The more recent announcement of the
addition of a Friday timeslot will bring
the weekly Sky schedule to 6 ½
meetings and simultaneously drive the
opportunity for participation while
placing upward pressure on greyhound
market share.
the inherent risk and expense
associated with breeding, and to
supporting the production of quality
racing stock as a primary objective of
a sustainable local industry.
An additional $400,000 was allocated
to prizemoney bringing the total
annual return to $4.81 million. The
Board remains committed to identifying
the opportunity to grow the return to
participants and promote viable
engagement within the sport.
Syndication represents a primary
industry strategy to stimulate greyhound
ownership. The promotion of syndication
has been temporarily limited while
Greyhound Australasia conducted a
national review to identify the legal
ramifications of the registration and
regulation of syndicate activity. Possible
syndication frameworks are currently
being developed in anticipation of these
matters imminently being finalised.
In addition to recent breeding initiatives,
the industry needs to identify the
opportunity for viable engagement at
all stages of the greyhound life cycle –
from whelping through to racing.
Breeding & Supply
In the latter part of 2010-11 GRSA
announced its commitment to a 50%
increase in the annual prizemoney
offered under the SA Bred program
to offset the recent decline of local
breeding. The overwhelming majority
of the increase was directly targeted
at breeders.
At the same time, new Group race
‘super-bonuses’ for SA Bred
greyhounds were introduced as an
additional incentive rewarding quality
breeding practices. The bonuses range
from $1,750 for any (open entry) Group
3 interstate victory up to $12,500 to
any SA Bred greyhound that can
capture the state’s premier title, the
Group 1 Adelaide Cup. The Board
remains committed to identifying
ongoing opportunities to help mitigate
Syndication & Ownership
Succession
The industry needs to identify a
succession strategy as part of its future
framework that fosters a new generation
of engaged participants. This outcome
will be engineered via a combination of
marketing, mentoring and educative
strategies and will form a primary focus
of future organisational initiatives.
Environment
21
COMPETITIVE
ENVIRONMENT
The operating environment
of GRSA is defined by
competitive pressure.
Revenue from TAB Product
Fees and Racefield Fees
constitutes more than 90%
of industry revenue, with
that income being
generated as a direct result
of national coverage via
one of the two Sky Racing
PAY-TV channels. On that
basis, wagering income
constitutes the primary
commercial driver that
underpins the Board’s
strategic decision-making
framework.
Whilst the greyhound industry
‘competes’ for TAB Product Fee
distribution against thoroughbreds and
harness, all three SA codes benefit
from the growth in total wagering that
results from the addition of any new
racing product. From that perspective,
GRSA’s TAB revenue strategy is
predicated upon an attempt to
maximise greyhound market share
within a growing wagering market. The
total value of the wagering ‘pie’ across
the three codes increased from $740
million to $777 million in 2010-11.
The national provider of racing vision,
Sky Racing, delivers its weekly
broadcast via PAY-TV to hotels, TAB
Agencies, homes and by streaming its
vision to individuals via various
handheld or mobile devices. In April
2010, the sheer volume of national
racing resulted in the launch of a
second Sky Racing Channel (Sky 2)
which immediately created new
opportunities for weekly scheduling.
In the relatively short period of time that
has followed, Sky’s coverage of SA
greyhound racing has increased from
three weekly meetings on Sky 1 to now
include 6 ½ weekly meetings. The
additional meetings are all covered on
Sky 2, however since those early days
the Wednesday meeting has been
elevated from a morning to a day
timeslot and is frequently promoted
to Sky 1 coverage. There is a clear
expectation that, in the longer term,
the perception of Sky 1 as the superior
offering will diminish and that
subscription to Sky 2 will continue to
be taken up at a significant rate.
During the 2010-11 year, DVN
installations at Mount Gambier and
Strathalbyn have ensured that GRSA
has a sufficiently versatile track strategy
to drive participation and commercial
returns to participants. The
maintenance or growth of the weekly
schedule represents a primary
objective for the organisation.
A number of changes to the feature
race calendar were announced during
the year. The decisions to move the
Adelaide Cup to October, and reduce
the Cup, Derby and Oaks series to two
weeks will ensure that South Australia
attracts the highest quality of racing
talent and showcase our premier night
at a time of year that maximises press
coverage and minimises competition
from other major events.
From a participant perspective, a major
challenge before the Board is to
position the sport as an attractive and
viable option for a new generation of
breeders, trainers and owners. This
outcome will be achieved through
ongoing prizemoney increases,
development of racing and training
facilities, and education and mentoring
of new entrants.
The sport’s appeal to a mainstream
audience will increasingly depend on
its appeal to younger audiences, and
the extent to which it can continue to
leverage the code’s inherent product
strengths. The development of
successful eMarketing strategies and
the different presentation of the racing
product are opportunities that will
foreseeably determine success in
relation to this objective.
Engagement
23
INDUSTRY AND
STAKEHOLDER ENGAGEMENT
Industry Future Workshops
Four workshops were conducted
accross April 8-11, each comprising
of two sessions – one dedicated to
open discussion of racing and
general issues, the other comprising of
a comprehensive analysis of the health
of the SA industry. The latter section
challenged workshop participants to
consider the ‘trajectory’ of the
industry’s existing strategy in the context
of nationally benchmarked standards
and an increasingly challenging
environment for generating revenue
and fostering sustainable practices.
Club Viability Framework
A delegation of Board and GRSA
management attended information
sessions at Port Augusta, Port Pire,
Barmera and Strathalbyn during June
to present a new framework for Club
viability. In response to those
presentations, the first three Clubs
were required to make a submission
to GRSA to demonstrate their future
viability as a condition of GRSA
supporting the ongoing allocation of
racing dates. The Strathalbyn Club
(SGR) retained its race dates but were
notified of the longer-term requirement
to develop its own plan around the
viability framework.
Industry Bodies
GRSA is a significant driver of strategic
initiatives at the national level by way
of its association with Greyhounds
Australasia (GA) and the Australian
Greyhound Racing Association (AGRA).
Recent SA activity has included a
significant rescheduling of its own
annual Group race calendar and a
national review of the common
variables that contribute to hock
injuries. GRSA also meets with senior
representation from the two other SA
codes to discuss opportunities for the
overall advancement of racing in
South Australia.
Tattsbet
Industry Committees
The media coverage of greyhound
racing remains an imperative objective
for the sport at both a local and national
level. Editorial coverage and form
presentation, particularly in the print
media, proves increasingly difficult to
secure. The 2010 National Championships managed to attract strong local
coverage, as did the promotion of
female Irish racecaller Sarina O’Day
when she accepted an invitation to
attend as an ambassador for the
Adelaide Cup. The latter initiative was
supported by mainstream coverage on
Channel 7’s Today Tonight.
GRSA engages industry feedback
through a number of Committees
including the Industry Consultative
Group, Breeders Taskforce, Grading
Review Panel, Feature Race Panel and
the Hock Injury Review Committee.
In June of this year, the formation of a
temporary body, the Industry Taskforce,
was announced which will specifically
review issues relating to participation
and sustainability.
State Government
The State Government provided
$200,000 of funding in support of the
AGRA National Championships. GRSA
continues to liaise closely with the
Minister for Racing and the Office of
Racing in relation to all matters of
industry significance.
Sky Racing
The Board and Management continue
to foster constructive and productive
relationships with the Sky Racing
Executive through meetings and ongoing
dialogue. These forums provide GRSA
with valuable guidance in relation to the
strategic structuring of the weekly
schedule and future broadcasting
opportunities for the SA product.
Tattsbet were the naming rights
sponsor of the 2010 National
Championships and the 2011 Adelaide
Cup (January) and remain a key partner
for identifying opportunities for the
development of the wagering product.
Media
Council & Community
GRSA has commenced discussions
with senior project officials in relation
to collaborative opportunities for the
development of the Parks Precinct.
The concept will see the upgrade of the
precinct immediately adjacent to Angle
Park as a community hub supporting
residential, commercial and sporting
developments. GRSA also engaged
new partnerships during the year with
the SAAFL and TAFE SA, and
commenced discussions with
University of Adelaide (Roseworthy
campus) relating to opportunities for
strategic partnership.
The Challenge
25
THE
CHALLENGE
The GRSA model needs
to continue to adapt to the
commercial realities of the
modern racing industry.
The industry revenue
model relies almost entirely
on the contribution it
receives from wagering
activity, noting that the
overwhelming majority of
that activity is undertaken
in an off-course
environment. The shift
reflects the impact of the
growth and uptake of Sky
broadcasting and the
evolution of different
wagering opportunities.
subsidise non-viable Clubs as well as
competitively provide for growth of
participant returns and development of
industry infrastructure.
Regional venues no longer have
sufficient ability to drive industry
revenue from the on-course platform.
Consequently, the primary measure of
viability for a given Club (going forward)
will be constituted by its ability to
support a critical mass of participation
directly within its geographic region.
To whatever extent that participant
base (trainers and breeders) lacks
sufficient scale to be genuinely viable,
the ongoing support of such a Club
amounts to an industry subsidy.
The future conduct of racing at SA
venues will be predicated upon two
primary criteria – strategic significance
and viability. Strategic considerations
relating to any given Club include its
location, and the proportion of industry
participants directly supported in that
region, as well as the ownership of
the facility.
GRSA’s revenue model is restricted
by the size of its TAB wagering pools,
based on which there are inherent
limitations on GRSA’s ability to
The recently developed strategic
framework for tracks and facilities
represents a pragmatic response to the
need to prioritise expenditure towards
facilitating and growing participation
around a concentrated track strategy.
Put another way, the Board is
committed to investing in areas of
economy rather than supporting or
maintaining the diseconomic aspects of
the industry. GRSA has a primary
obligation to pursue the interests of the
industry as a whole, above and beyond
the interests of regional communities
or individual Clubs. There are absolute
limits on the Board’s ability to support
regional participation at the expense of
the commercial model.
Viability
The most important consideration for
GRSA is the industry’s requirement
for a minimum number of strategic
locations in support of ongoing
participation.
A Club’s viability will comprise of its
capacity to demonstrate financial
capacity, sustainability and
accountability. Clubs will need to
demonstrate their ongoing capacity to
generate sufficient revenue to maintain
a position of solvency, whether this
emanates from Council funding,
sponsorship, diversified income or
donation. SA Clubs will need to
demonstrate that they are genuinely
viable entities, supportive of the
commercial objectives of the broader
industry, and operating under the
direction of diverse and representative
Committees.
Guiding Principles
1. Acknowledge efficiency and
commerciality as primary strategic drivers
2. Acknowledge the paradigm shift of
the business model towards off-course outcomes
3. Be compelled by the implications of competitive benchmarking
4. Accept the implications of operating
in a national market
5. Actively engage in industry
consultation and reciprocate with open and transparent processes
6. Make state pride and industry
viability primary drivers of change
7. Show willingness to adapt to
(significant) ongoing change
8. Embrace the opportunity for SA to become the ‘smart’ state
9. Leverage the strategic value of SA’s proximity to NSW and Victoria
10.Implement a viable framework from a relative position of strength
Events
26
EVENTS
2010 AGRA National
Championships (Saturday
night 28th August)
Group One:
The National Championships are
Australia’s most prestigious event,
attracting the very best chasers and
stayers from around Australia. South
Australia was represented by Satanic
Cash and Sophina Bale (Distance), and
Where’s Pancho and Tomic (Sprint).
The Distance title was taken out by
Blue Lorian with Smooth Fancy just
edging out Cosmic Chief in a thrilling
finish to the Sprint final.
TattsBet.com National
Distance Final
Blue Lorian (Peter Whye)
2011 AGRA Biannual
Conference
The AGRA Biannual Conference
comprised of the half-yearly meetings
for AGRA – including the Biannual
Meeting of Delegates – as well as the
Greyhounds Australasia quarterly
meeting, the AFGBOTA Conference
and the 2010 AGRA Greyhound Of
The Year Awards night at Adelaide’s
Crowne Plaza Hotel.
Feature Race Winners
South Australia had a total of eleven
Group Races run at Angle Park and
Gawler during the year. A summary
of the Group and major races follows:
TattsBet.com Adelaide Cup
Kilty Lad (Kelly Bravo)
TattsBet.com National Sprint Final
Smooth Fancy (Anthony Azzopardi)
Group Three:
Coffex Coffee Oaks
Kalden Athena (Dan Biddle)
Coca Cola Derby
Walter Bale (Graeme Bate)
SA Sprint Championship
Random Test (Rob Harnas)
The Bunyip Gawler Gold Cup
Boozeroo (Ossie Chegia)
Brian Johnstone Memorial
Handsome Shiraz (Lauren Harris)
West End Distance Championship
Satanic Cash (Bob Isaacson)
West End Anniversary Cup
Dark Duo (Rob Harnas)
SA Breeders Plate
Hannah McLaren (Don Foster)
Other Major Races During
The Year Included:
Advertiser Interstate Challenge Symmetry (Rob Britton)
SA St Leger
Brahma Boy (John Mundy)
Metro Holden Champion Puppy
Wikena (Kirin Corby)
Gawler Produce Stake
Where’s Pancho (Richard Pearce)
Country Cup (final at Gawler)
Aston Rachael (Troy Murray)
Country Cups:
Macro Meats Strathalbyn Cup
Aston Rachael (Troy Murray)
Macro Meats Port Pirie Cup
Cool In Blue (Des Hockley)
Trackside Meats Mount
Gambier Cup
Banger Harvey (Rob Britton)
Riverland GRC Cup
Bandanna Lad (Troy Murray)
Port Augusta City Council Cup
Arthur Beech (Carole Scott)
Macro Meats Waterloo Cup
Arthur Beech (Carole Scott)
Events
27
EVENTS
Track Records
2010 Award Winners
Gawler
The 2010 Greyhound of the Year
Dinner was held in January as part of
the 2011 TattsBet.com Adelaide Cup
carnival. The award winners presented
on the night were:
400m: Stomping Bear
(Murray Harvey) – 22.45
15.5.2011
Strathalbyn
SA Greyhound of the Year:
Satanic Cash
319m: Call Me Faust
(Bozidar Stamenkovic) – 17.75
27.3.2011
SA Bred Greyhound of the Year:
Satanic Cash
Barmera
SA Distance Greyhound of the Year:
Satanic Cash
SA TAB Owner/Trainer of the Year: Jan Jones
City Strike Rate Winner:
Ray Murray
SA Syndicate of the Year:
Eagles Bar Syndicate
Young Achievers Award:
Ben Rawlings
Volunteer of the Year:
Leo O’Leary
405m: Mega Fox
(Norma Millington) – 23.23
7.8.2010
Gawler Trackstar:
Token Class
The major Coursing Awards
were presented in November
and were won by:
Mount Gambier
SA Stud Dog of the Year:
Bitta Awesome
Coursing Greyhound of the Year:
Weowna Cha Cha
400m: Cryer’s Tiger
(Thomas Cryer) – 23.23
10.4.2011
512m: Half Way Home
(Robert Halliday) – 29.79
10.4.2011
732m: Nellie Noodles
(Rob Britton) – 43.45
27.3.2011
SA Broodbitch of the Year:
Excuse Me
SA Breeder of the Year:
Bruce Lellmann
SA TAB Trainer of the Year:
Shaun Matcott
SA Country Trainer of the Year:
Dale Martin
SA Coursing Trainer of the Year:
Shaun Matcott
DIRECTORS
As at June 30, 2011
Michael Fabbro
Benjamin Miels
Roseanne Healy
John Katakasi
Mark Carey
29 Directors’ Report
DIRECTORS’
REPORT
Your directors present their
report on the company
for the financial year ended
30 June 2011.
The names of each person
who has been a director
during the year and to the
date of this report are:
•Roseanne Celeste Healy
•Mark Joseph Carey
•John Katakasi
•Michael Allan Fabbro
•David Andrew Cross
(until November 26 2010)
•Benjamin Luke Thomas Miels
(from April 28 2011)
Directors have been in office since the
start of the financial year to the date of
this report unless otherwise stated.
Principal Activities
The principal activities of the company
during the financial year, in accordance
with the company’s constitution, were:
•to encourage, promote and conduct
the sport of greyhound racing
•to provide industry control and
direction for the greyhound industry
•to effectively market greyhound racing
Operating Result
The consolidated profit of the company
for the financial year amounted to
$159,000.
Review of Operations
GRSA received $200,000 from the
Government of South Australia in
support of the hosting of the 2010
National Championships held in
August 2010. GRSA committed
$324,000 to promote the
Championships, South Australia and
the greyhound racing industry. The
hosting of the National Championship
saw monthly local market share peak
at 22.6% for the month of August 2010.
The gaming business was significantly
impacted by the interruptions
associated with the Urban Superway
project works. From early in the year,
the closure of access into Angle Road
from the north had the initial effect
of reducing gaming and hospitality by
as much as 25%. Across the
2010-11 year, food and beverage sales
for McQueens fell by 8.6%, and
combined gross profit for food and
beverage (McQueens and Chasers)
dropped by 11.8% to $1.11m. The
reduction in gross profit was largely
offset by aggressive management of
wages and administration costs.
The possible introduction of
pre-commitment software presents
as a potential future challenge for the
gaming business, in addition to previous legislative changes, general flatness of economic conditions, and the
ongoing trend of decreasing net
revenue on turnover.
The end-of-year market share result of
15.96% was a reasonable outcome in
the context of the increasingly
competitive environment of the racing
industry and in light of 2010-11 having
been a year of considerable strategic
transition. The Board has an
expectation that 2011-12 represents
the commencement of a period of
solid growth. Budgeted stakemoney
of $5.4 million for 2011-12 reflects
GRSA’s ongoing commitment to
supporting participation. The future
strategic plan will identify growth of
industry participation as a priority
objective.
Financial Position
The net assets of the company have
increased to $8,009,000 in 2011.
Dividends
As the company has been formed as a
company limited by guarantee, for
the benefit of the greyhound racing
industry in South Australia, no dividend
is payable to members.
After Balance Date Events
No significant events have occurred
after 30 June 2011.
Future Developments
The company will continue to operate
in the interests of the industry and its
shareholders.
30 Directors’ Report
DIRECTORS’
REPORT
Indemnities & Insurance
Premiums for Officers
Proceedings on Behalf
of Company
The company has paid insurance
premiums to indemnify the directors
and officers against liabilities for costs
and expenses incurred by them in
defending any legal proceedings arising
out of their conduct while acting in the
capacity of director of the company,
other than conduct involving a wilful
breach of duty in relation to the company.
No person has applied for leave of the
Court to bring proceedings on behalf
of the company or intervene in any
proceedings to which the company is
a party for the purpose of taking
responsibility on behalf of the company
for all or any part of those proceedings.
The company was not a party to any
such proceedings during the year.
Corporate Governance
Information on Directors
GRSA and the Board are committed
to achieving and demonstrating the
highest standards of corporate
governance. To achieve this GRSA has
policies and procedures designed to
promote high standards of governance
and performance which are reviewed
as required, reflecting changes in
governance standards and practice
Roseanne Celeste Healy
BA (Eco), MBA and MBR
(Adelaide University), MAICD
Environmental & Animal
Welfare Issues
Greyhound Racing SA is an
environmentally conscious organisation
that takes concerted measures to
conserve water and other natural
resources throughout its operations,
ensuring that we meet all regulatory
requirements. We will continue to make
animal welfare integral to everything
we do.
Chairman and Non-Executive Director
(experience in carrying on a business)
Initially appointed in 2003, Ms Healy is
an experienced company director and
advisor to a wide range of listed and
unlisted companies in the areas of
governance, strategy, resource
economics, corporate social
responsibility and economic research.
Ms Healy is currently Chairman of the
Riverland Wine Industry Development
Council, Riverland Winegrape Growers
Association and Royal College of
Pathologists of Australasia’s Lay
Advisory Committee. Ms Healy is
currently a director of ASX listed
Cheviot Kirribilly Vineyard Property
Group, Tidewater Funds Management
Ltd, the Rural Industries Research and
Development Corporation, GP
Partners, Racing SA Ltd, and
Greyhounds Australasia. Previously,
Ms Healy has held senior executive and
Chief Executive roles.
Special responsibilities include Chairman
of the Remuneration committee and
member of the Audit committee.
Mark Joseph Carey
University of South Australia (Associate
Diploma – Business Marketing)
Member of Australian Institute of
Company of Directors
Non Executive Director (qualifications
and/or experience in marketing)
Joined in December 2008 as a
Non-Executive Director. Mark has vast
experience within the racing industry
having held positions as
CEO/Company Secretary of Harness
Racing SA and Racing SA Ltd –
positions he held for 8 years until
September 2007. Prior to this, Mark
worked for the South Australian TAB
(13 years) and was Group Manager
- Marketing for the two years prior to
joining HRSA.
31 Directors’ Report
DIRECTORS’
REPORT
John Katakasi
BVSc (Hons), CVA (IVAS)
Non-Executive Director (experience in
greyhound racing industry as elected
by licensed persons). Joined in
December 2008 as a Non-Executive
Director. Dr. Katakasi is the proprietor
of the Adelaide Plains Veterinary
Surgery (since 2001) located at Two
Wells and has had vast involvement
with, and advice on the treatment and
management of greyhounds,
Australia-wide.
As a veterinarian, Dr. Katakasi has
enormous expertise in working with
greyhounds, having been introduced to
them while still studying at University.
Dr. Katakasi holds responsibility for the
training of persons involved in the
Greyhounds Australasia frozen semen
program. He has bred and raced
greyhounds for many years, and is
actively involved within the industry and
has direct racing knowledge.
Michael Allan Fabbro
LLB(Hons), BCom (Acct), GDLP,
FTIA, IPAA
Non-Executive Director (experience as
a legal practitioner)
Michael joined the Board of GRSA in
November 2009 as a Non-Executive
Director.
He is a practising solicitor and principal
of his own Firm, Ezra Legal. Also
holding a Bachelor of Commerce
majoring in accounting,
Michael is a Fellow of the Tax Institute
of Australia and a member of the
Leaders Institute of South Australia and
Insolvency Practitioners Association
of Australia. A member of the Board
of the Aged Rights Advocacy Service,
Michael has had hospitality industry
business experience.
Special responsibilities include member
of the Remuneration committee.
David Andrew Cross
BEc (Adelaide University), CA, GAICD
Non-Executive Director (experience in
finance) up until November 26, 2010.
Joined in November 2009 as a
Non-Executive Director. David is a
chartered accountant with significant
experience in senior executive roles,
including Managing Director (Asia
Pacific) of Sola Optical Inc. He is
currently a non executive director of RAA
of SA Inc, RAA Insurance and Thai
Optical Group Ltd (a public company
listed on stock exchange of Thailand).
He also has significant experience with
consulting assignments to large
global businesses.
Special responsibilities included
Chairman of the Audit committee.
Benjamin Luke Thomas Miels
B.Bus (Acct), FCA, LLB, FTIA, GAICD
Non-Executive Director (experience
in finance)
Joined in April 2011 as a
Non-Executive Director. Ben is
Managing Partner of Chartered
Accounting firm, Edwards Marshall
where he advises many medium to
large businesses and professional
clients in the provision of taxation,
accounting and business. He also
acts as a director/board adviser to a
number of significant clients of the firm
and other organisations. Ben has
experience in a wide range of
industries including indigenous
communities, manufacturing, mining,
agriculture, law and the wholesale
and retail trades. Ben is also a past
Chairman of the Institute of Chartered
Accountants in the Australia SA/NT
Division.
Special responsibilities include
Chairman of the Audit committee.
32 Directors’ Report
DIRECTORS’
REPORT
Meetings of Directors
Remuneration
The number of Board
Meetings held during the
year was 12.
•Roseanne Healy
eligible 6
attended 6
•Michael Fabbro
eliglble 6
attended 6
Attendance Details:
Board Meetings
•Roseanne Healy
eligible 12
attended 12
•Mark Carey
eligible 12
attended 12
•John Katakasi
eligible 12
attended 12
•Michael Fabbro
eligible 12
attended 12
•David Cross
eligible 4
attended 4
•Ben Miels
eligible 1
attended 1
Audit
•Roseanne Healy
eligible 2
attended 2
•David Cross
eligible 1
attended 1
•Mark Carey
eligible 1
attended 1
Company Secretaries
•Matthew Corby
Bachelor of Arts, Bachelor of
Business (Marketing), Graduate
Diploma in Sports Management.
Mr Corby was appointed to the Chief
Executive Officer role on November 1,
2010 and is the only person registered
as company secretary as at
June 30, 2011.
•Messers Peter Ali and Oliver Bott
served as company secretaries until
July 1 2010 and December 17 2010,
respectively.
Auditor’s Independence
Declaration
The auditor has performed no other
services during the year.
A copy of the auditor’s independence
declaration as required under section
307C of the Corporations Act 2001 is
set out in the Audit Report.
Signed in accordance with the
resolution of the Board of Directors
………………………………………
Roseanne Celeste Healy, Chairman
Dated this 27th day of October 2011
34 Financial Reports
STATEMENT OF
COMPREHENSIVE INCOME FOR
THE YEAR ENDED 30 JUNE 2011
GREYHOUND RACING SA LTD - ABN 39 094 569 525
Note20112010
Classification Of Expenses By Function
$000’s
$000’s
Racing product income
2
Other revenues from ordinary activities
3
10,288
9,407
765
559
Food, Beverage and Gaming Revenue4,0004,185
Prizemoney and rebate distribution expenses
4
(4,810)
(4,361)
Food, Beverage and Gaming Expenditure
(3,867)
(3,994)
Racing and probity expenses
(3,707)
(3,267)
Administration expenses
(1,712)
(1,465)
(782)
(456)
Marketing expenses
5(1)
Finance and borrowing expenses
5(2)
(35)
(66)
5
140
542
19
15
Other comprehensive income for the year
Total comprehensive income for the year
19
15
159
557
Profit from ordinary activities
Other comprehensive income
Net gain (loss) on revaluation of financial assets
35 Financial Reports
STATEMENT OF
FINANCIAL POSITION
AS AT 30 JUNE 2011
GREYHOUND RACING SA LTD - ABN 39 094 569 525
Note20112010
Current Assets
$ 000’s
$ 000’s
Cash & Cash Equivalents
6
1,582
1,691
Receivables
7
1,007
975
Inventories
8
62
71
Investments
9
283
282
Other Current Assets
10
77
121
Total Current Assets3,0113,140
Non-Current Assets
Receivables
7
55
13
Property, Plant and Equipment
11
7,297
7,612
Total Non-Current Assets7,3527,625
Total Assets
10,363
10,765
Current Liabilities Payables
12
933
835
Borrowings
13
257
240
Provisions
14
839
939
Other Current Liabilities
15
10
230
Total Current Liabilities2,0392,244
Non-Current Liabilities
Borrowings
13
Provisions
14
Other Non-Current Liabilities
15
Total Non-Current Liabilities
Total Liabilities
Net Assets
140
45
130
315
2,354
8,009
397
134
140
671
2,915
7,850
Equity
Reserves4,6465,268
Retained Profits
3,363
2,582
Total Equity
8,009
7,850
36 Financial Reports
STATEMENT OF
CHANGES IN EQUITY FOR THE
YEAR ENDED 30 JUNE 2011
GREYHOUND RACING SA LTD - ABN 39 094 569 525
Retained
Operating
Asset
Capital
Earnings
Reserves
RevaluationAcquisition
Reserve
Reserve
Balance At 1 July 2009
2,025 700 658 Profit attributable to members
542 -
- Transfer to & from Reserves
-
(220)
-
Total other comprehensive
income for the year
15 - - Balance At 30 June 2010
2,582 480 658 Profit attributable to members
140 - - Transfer to & from Reserves
622 (480)
- Total other comprehensive
income for the year
19 - - Balance At 30 June 2011
3,363 - 658 Total
3,824 7,207 - 542 306
- 4,130 86
15 7,850 - 140 (142)
-
-
3,988 19 8,009
37 Financial Reports
CASH FLOW STATEMENT
FOR THE YEAR ENDED
30 JUNE 2011
GREYHOUND RACING SA LTD - ABN 39 094 569 525
Note20112010
$ 000’s
$ 000’s
Cash Flows From Operating Activities
Receipts from Customers
14,952
9,768
Grants Received
- 200
Payments to suppliers and employees
(14,391)
(8,844)
Interest Received
93
74
Finance Costs (35) (66)
Net cash provided (used) by operating activities
619
1,132 Cash Flows From Investing Activities
Proceeds from sale of property, plant and equipment
91
53
Payments for property, plant and equipment
(523)
(787)
Purchase of investments
- (4)
Proceeds from investments
- - Advances to clubs (65) (22)
Repayment of loans from clubs
9
11
Net cash provided (used) by investing activities
(488)
(749)
Cash Flows From Financing Activities
Proceeds from borrowings
- - Repayment of borrowings (240) (224)
Net cash provided (used) by financing activities
(240)
(224)
Net increase/(decrease) in cash held
(109)
159
Cash at beginning of period 1,691
1,532
Cash at end of period
6
1,582
1,691
38 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
GREYHOUND RACING SA LTD - ABN 39 094 569 525
NOTE 1: Statement Of Accounting Policies
The financial report of Greyhound Racing SA Ltd for the year ended 30 June 2011 was authorised for issue in accordance
with a resolution of the Directors on 27 October 2011.
In the opinion of the Board, Greyhound Racing SA Ltd. (“GRSA”) is a reporting entity and accordingly, the financial report is
a general purpose financial report that has been prepared in accordance with the requirements of the Corporations Act 2001,
Australian Accounting Standards - Reduced Disclosure Requirements and other authoritative pronouncements of the
Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis, except for
land and buildings and available-for-sale investments, which have been measured at fair value.
GRSA has early adopted AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2
Amendments to the Australian Accounting Standards arising from Reduced Disclosure Requirements for the financial year
beginning 1 July 2010.
The financial statements of GRSA are tier 2 general purpose financial statements which have been prepared in accordance
with Australian Accounting Standards - Reduced Disclosure Requirements (AASB-RDRs) (including Australian interpretations)
adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.
The adoption of AASB 1053 and AASB 2010 -2 allowed GRSA to remove a number of disclosures. There was no other
impact on the current or prior year financial statements.
The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars ($000)
unless otherwise stated.
GRSA is exempt from income tax pursuant to the Income Tax Assessment Act.
The following is a summary of the material accounting policies adopted by GRSA in the preparation of the financial
statements. The accounting policies have been consistently applied, unless otherwise stated.
(a) Revenue recognition
Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent it is probable
that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific
recognition criteria must also be met before revenue is recognised:
39 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
(i) Sale of Goods
Revenue from the sale of goods is recognised when there has been a transfer of risks and rewards to the customer,
no further work or processing is required, the quantity and quality of the goods has been determined, the price is fixed
and generally title has passed.
(ii) Rendering of Services
Revenue from TAB distribution for both on-course and off-course wagering is shown net of expenses. Revenue from the
supply of Race Fields is recognised in the month of the race field.
(iii) Interest revenue
Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised
cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is
the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net
carrying amount of the financial asset.
(iv) Dividends
Revenue is recognised when the company’s right to receive the payment is established.
(b) Depreciation
All fixed assets, including buildings and capitalised leased assets but excluding freehold land, are depreciated on a straight
line basis over their estimated useful lives to the entity commencing from the time the asset held is first ready for use.
(c) Cash & Cash Equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits
with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and cash equivelents as defined
above, net of outstanding bank overdrafts. Bank overdrafts are included within interest bearing loans and borrowings in current liabilities in the statement of financial position.
40 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
(d) Receivables
Receivables that generally have 30 day terms, are recognised at fair value. Collectability of receivables is reviewed on an
ongoing basis at an operating level. Individual debts that are known to be uncollectible are written off when identified. An
impairment provision is recognised when there is objective evidence that the company will not be able to collect the receivable.
(e) Inventories
Inventories are measured at the lower of cost (First in First Out basis) and net realisable value.
(f) Available-For-Sale Financial Assets
Available-for-sale financial assets are those non-derivative financial assets, principally equity securities, that are designated
as available-for-sale. After initial recognition available-for-sale financial assets are measured at fair value with gains or losses
being recognised as a separate component of equity until the investment is determined to be impaired, at which time the
cumulative gain or loss previously reported in equity is recognised in profit or loss.
The fair values of investments that are actively traded in organised financial markets are determined by reference to quoted
market bid prices at the close of business on the reporting date.
(g) Property, Plant and Equipment
Property is brought to account at cost or at independent valuation (see Note 11), less, where applicable, any accumulated
depreciation or amortisation. Plant and Equipment is brought to account at cost, less where applicable, any accumulated
depreciation. The carrying amount of the property, plant and equipment is reviewed annually by the Board to ensure it is
not in excess of the recoverable amount from these assets.
GRSA conducts an annual review of asset values, which is used as a source of information to assess for any indicators of
impairment. External factors, such as changes in expected future processes, technology and economic conditions, are also
monitored to assess for indicators of impairment. If any indication of impairment exists, an estimate of the asset’s recoverable
amount is calculated.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels from other assets or groups of assets. Non-financial assets other than
goodwill that suffered an impairment are tested for possible reversal of the impairment whenever events or changes in
circumstances indicate that the impairment may have been reversed.
41 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
The land, buildings and improvements situated at Angle Park were revalued as at 30 June 2009, by independent valuation
performed by Neil Bradford, Certified Practising Valuer, of Egan National Valuers (SA), using the fair value methodology.
Revaluation increments arising upon revaluing non-current assets to their fair value are credited directly to the Asset
Revaluation Reserve, except, to the extent that, the net increment reverses a net revaluation decrement previously
recognised as an expense.
The gain or loss on disposal of all fixed assets is determined as the difference between the carrying amount of the asset at
the time of the disposal and the proceeds of the disposal, and is included in the profit in the year of disposal.
(h) Employee Entitlements
Provision is made for GRSA’s liability for employee entitlements arising from services rendered by employees to balance date.
Employee entitlements expected to be settled within one year have been measured at their nominal amount.
The liability for long service leave is recognised and measures as an estimate of the present value of expected future
payments made in respect of services provided by employees up to the reporting date. Contributions are made to employee superannuation funds and are charged as an expense when incurred.
(i) Members’ Guarantee GRSA is a company limited by guarantee. If GRSA is wound up, the Constitution states that each member is required to
contribute a maximum of two (2) dollars towards meeting outstanding obligations. As at 30 June 2011, the number of
members was nine (9).
NOTE20112010
$ 000’s
$ 000’s
NOTE 2: Racing Product Income
TAB Product Fee paid to greyhound racing code
less clawback amount payable to SA Government less TAB Product Fee Expenses
Transfer from Provisions - Futurity Series
Race Field Fee Income
On-course tote commissions
8,709
(487)
(1,874)
54
3,649
237
7,915
(470)
(1,660)
53
3,264
305
10,288
9,407
42 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
Note20112010
$000’s
$000’s
NOTE 3: Revenue
Other Operating Revenue
Sponsorships 112 205
National Championship Grant
200
-
Other 453 354
765
559
NOTE 4: Prizemonies & Rebates
Prizemonies 4,622 4,224
Travel Rebates 188 137
4,810
4,361
NOTE 5: Profit From Ordinary Activities
140
542
Profit from ordinary activities has been determined after:-
5(1) Marketing Expenses
Additional National Championships Marketing
Marketing Expenses
324
458
-
456 Total Marketing Expenses 782 456
5(2) Finance & borrowing costs
Borrowing facility usage fee paid
Interest paid on borrowings
10
25
15
51
Total borrowing costs
35
66
5(3) Depreciation of non-current assets
Property, plant & equipment
619
550
Total depreciation 619 550
5(4) Loss on Disposal of Property Plant & Equipment
Loss on Disposal of Property Plant & Equipment
128
12
Total Loss on Disposal
128
12
43 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
Note20112010
$000’s
$000’s
NOTE 6: Cash & Cash Equivalents
Cash on Hand
58
Cash at Bank
145
Investments - Fixed Term
1,057
Cash Bank Deposits at call
322
1,582
59
111
1,267
254
1,691
NOTE 7: Receivables
Current
Sundry Debtors 552 516
Loans to Clubs
16
7
Provision for Doubtful Debt
(6)
-
Other 445 452
1,007
Non-Current
Loans to Clubs
Provision for Doubtful Debt
60
(5)
55
975
13
-
13
Reconciliation of Doubtful Debts
Opening Balance
Movement
Closing - (11)
(11)
-
-
-
NOTE 8: Inventories
Beverages - Tavern & Restaurant - At Cost
Food - Tavern & Restaurant - At Cost
41
21
41
30
62
71
NOTE 9: Investments
Available for Sale Financial Assets
283
283
282
282
44 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
Note20112010
$000’s
$000’s
NOTE 10: Other Current Assets
Prepayments
77
121
77
121
Accumulated Depreciation
(373)
5,652
(181)
5,838
NOTE 11: Property, Plant And Equipment 1(g)
Land, Building and Improvements - Angle Park at Fair Value
5,768
5,768
Land, Building and Improvements - Angle Park at cost
257
251
Land, Building and Improvements - Gawler at Fair Value
Land, Building and Improvements - Gawler at Cost
67
143
67
135
Accumulated Depreciation
(85)
(74)
125 128
Land, Building and Improvements - Port Pirie at Fair Value
121
252
Accumulated Depreciation
(19)
102
(13)
239
Accumulated Depreciation
- Accumulated Depreciation
(2,179)
Capital Works in Progress
- 17
- - 17 Plant and Equipment3,4492,976
Furniture and Fittings
Accumulated Depreciation
(1,855)
1,2701,121
261
(172)
89
260
(156)
104 45 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
Note20112010
$000’s
$000’s
Motor Vehicles 83
229
Accumulated Depreciation
(24)
(64)
59 165
7,297
7,612
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end
of the current financial period.
Capital Work
in progress
Land Buildings &
Improvements
Plant & Equipment
Furniture &
Fittings
Motor
Vehicles
$000’s
$000’s
$000’s
$000’s
$000’s
Total
$000’s
2011
Carrying amount at
start of year - at cost
17 6,205
1,120
105
165
7,612
Net revaluation increment
-
-
-
-
-
-
Transfers to and
from account
(17)
-
17
-
-
Additions
- 15
462 11
35 523
Disposals
-
(111)
(5)
(9)
(94)
(219)
Depreciation expense
-
(230)
(324)
(18)
(47)
(619)
Carrying amount
at end of year
-
5,879
1,270
89
59
7,297
46 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
Note20112010
$000’s
$000’s
NOTE 12: Payables
Current
Trade Creditors
390
339
Other 543 496
933
835
NOTE 13: Borrowings Current
Accommodation Bill Facility
257
240
257
240
Non-Current
Accommodation Bill Facility
140
397
140
397
A finance facility agreement is in place between GRSA and Commonwealth Bank of Australia. The total amount of the
facilty at year end is $397,000 (2010 $637,000). The facility bears interest at 7.55% (2010 7.55%)
NOTE 14: Provisions
Current
Provision for Annual Leave
266
281
Provision for Long Service Leave
250
222
Provision for Interstate Race Field Fees
14(a)
261
261
Futurity & Gawler Produce Race Series
14(b)
62
35
Nationals Prizemoney Sept 2010
- 140
839 939
Non-Current
Provision for Long Service Leave
45
108
Futurity & Gawler Produce Race Series
- 26
45
134
47 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
Note20112010
$000’s
$000’s
NOTE 14(a): Provision For Interstate Race Field Fees
During the year, payment to Australian wagering operators, with the exception of the Tasmanian TAB, for publication of race
fields was effected. In addition, advice was received that the effective date of Victorian legislation is likely to be backdated
from 1st January 2009 to 1st September 2008. A provision has been included in these financial statements in anticipation
of these liabilties becoming due and payable.
NOTE 14(b): Futurity & Gawler Produce Series
During the year, payments are received for eligible greyhounds to compete in the Futurity and Gawler Produce Race Series
meetings. The payments received to compete in the series are paid as additional prize money to successful participants in
the race series.
NOTE 15: Other Liabilities
Current
Grants, Subsidies and Deposits in Advance
15(a)
10
230
10
230
Non-Current
Grants, Subsidies and Deposits in Advance
15(a)
130
140
140
130
NOTE 15(a): SA Government Reform Package Payment
An amount was received during the financial year ended 30 June 2006 as compensation for the loss of future income
expected to result from the S.A. Government’s racing reform package (including on-course tote relief). This amount has
been transferred to revenue received in advance, and is being appropriated over a twenty (20) year period.
NOTE 16: Equity & Reserves
Retained Earnings
GRSA is a Not-For-Profit Company Limited by Guarantee. The constitution precludes any distribution of earnings directly
or indirectly by way of dividends, bonus or otherwise by way of profit to a Member.
48 Financial Reports
NOTES TO THE FINANCIAL
STATEMENTS FOR THE PERIOD
ENDED 30 JUNE 2011
Note
2011
2010
$000’s
$000’s
Operating Reserve
An Operating Reserve was established in 2004 for the support of future operational requirements. The Board no longer
considers that an Operational Reserve is required and has transferred the balance to Retained Earnings.
Asset Revaluation Reserve
The asset revaluation reserve is used to record increases and decreases in the fair value of land and buildings to the
extent that they offset one another.
Capital Acquistion Reserve
The capital acquisition reserve is used to record the fair value from the acquisition of the assets of member clubs where
GRSA becomes responsible for the conduct of race meetings at the club venue. The reduction in Capital Acquisition
Reserves reflects the impairment of some Pt Pirie Assets recognised in the Capital Acquisition Reserve previously.
NOTE 17: Commitments For Expenditure
Capital Expenditure Commitments
Land, Buildings & Improvements
Not later than one year
Later than one year, not later than five years
Later than five years
71
- - Total (including GST)
71
NOTE 18: Related Party Information
Board members have no equity participation as GRSA is a company limited by guarantee, for the benefit of the
greyhound racing industry.
(a) Board Members’ Remuneration
Total Board Members’ Remuneration
110
Total Key Management Remuneration
739
89
(b) Key Management Remuneration
724
Unless otherwise disclosed, transactions between related parties (including key management personnel) are on conditions
no more favourable than those which it is reasonable to expect the entity would have adopted if dealing with a non related
party at arm’s length in the same circumstances.
Declaration
51
DIRECTORS’
DECLARATION
GREYHOUND RACING SA LTD
ABN 39 094 569 525
In accordance with a resolution of the directors of Greyhound Racing SA Ltd, I state that the directors of the company
declare that:
1. In the opinion of the directors the financial statements and notes of Greyhound Racing SA Ltd
for the financial year ended 30 June 2011 are in accordance with the Corporations Act 2001,
including;
a. Giving a true and fair view of the financial position as at 30 June 2011 and performance for the year ended on that date; and
b. Comply with Accounting Standards – Reduced Disclosure Requirements (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001
c. There are reasonable grounds to believe that the company will be able to pay its debts as and when they become
due and payable.
2. The Chief Executive Officer and Chief Financial Officer have declared that:
a.
b.
c.
d.
The financial records of the company for the financial year have been properly maintained in accordance with Section 286 of the Corporations Act 2001.
The financial statements for the financial year, and accompanying notes as required by the Accounting Standards –
Reduced Disclosure Requirements (including the Australian Accounting Interpretations) comply with the AASB
Australian Accounting Standards and the Corporations Regulations 2001.
The financial statements and notes for the financial year give a true and fair view; and
All other matters that are specified by regulations regarding declarations made under Section 295A have been satisfied.
On behalf of the Board
…………………………………………………
Roseanne Celeste Healy, Chairman
Dated this 27th day of October 2011
52
Auditor’s Report
AUDITOR’S
REPORT
Declaration
53
AUDITOR’S
DECLARATION
54
Statement
GREYHOUND RACING SA
MEMBERS OF COMPANY
Adelaide Greyhound Racing Club Inc.
Gawler Greyhound Racing Club Inc.
Greyhound Owners, Trainers and Breeders Association Coursing Club Inc.
Mount Gambier Greyhound Racing and Coursing Club Inc.
Port Augusta and District Greyhound Racing Club Inc.
Port Pirie and District Greyhound Racing Club Inc.
Riverland Greyhound Racing Club Inc.
Southern Greyhound Raceway Inc.
Whyalla Greyhound Racing Club Inc.
Responsible Gambling Mission Statement
Greyhound Racing SA is governed by a Code of Practice that promotes the
socially responsible use of its wagering services as a recreation and entertainment
activity and to minimise the potential harm associated with problem gambling.
Greyhound Racing SA Ltd.
ACN: 094 569 525
55 Cardigan Street,
Angle Park, South Australia
5010
PO Box 2352,
Regency Park, South Australia
5942
Ph: +61 8 8243 7100
Fax: +61 8 8268 2870
admin@grsa.com.au
www.grsa.com.au