Investing for a positive future - Cambridge Raceway’s temporary pain for long term gain

After a difficult year when it had to borrow nearly $1 million, Cambridge Raceway is confident of a financial turnaround with a number of exciting developments underway.

The financial bottom line which will greet members at Monday’s annual general meeting makes for sobering reading with an operating deficit of $733,138 and an after-depreciation loss of $491,970.

To cover the liquidity deficit, the club negotiated in May a $740,000 loan from Harness Racing New Zealand as well as $220,000 from members and stakeholders.

But chairman Graham Bowen and CEO David Branch are confident that investments in vital initiatives and funding corrections have positioned the club for a positive future.

Plans have been drawn up for a 34-lot subdivision along Abergeldie WayCentral to the financial recovery of the club will be the many millions it will receive from the sale of a 34-lot residential subdivision, which it hopes to finalise early in the new year.

The club has done all the expensive paperwork for the subdivision, on the site of the present stables, recently gaining resource consent.

Bowen says the club is committed to a minimal-risk policy and is negotiating with half a dozen potental partners, most of whom understand the need for the club to build a new undercover stable block before work can begin on the subdivision.

Other projects which placed a strain on the club’s operation in the 2022-23 season, but have set it up for future income, included:

• Upgrading its kitchen to take over catering and establish a business which is budgeted to generate $1 million in revenue this financial year. As well as attracting events to Cambridge, the club has also ventured into off-site catering and is one of only three approved caterers at Mystery Creek. It is also undertaking a variety of events for Rowing NZ and at the Velodrome.
• The establishment of a new members lounge in the grandstand, the Taylor St Club, which is now fully functional and revenue-generating. It has quickly become a community favourite, hosting diverse events from AGMs to birthdays. On occasion, it has been used two and three times in a single day and
• The construction cost for its new tenant Body Fit Training.

A number of other factors impacted on the club’s financial result, including:

• A shortfall in funding for its flagship event, The Race By Grins. Whereas it received just $45,000 last year, the club will get $150,000 for next April’s slot race.
• The challenge faced by a funding model introduced three years ago which, while raising stake money, put pressure on running expenses. Following a review by HRNZ, this amount will be lifted by $100,000 this year.
• The loss of revenue from greyhounds which were unable to race on the track for five months and impacted both Cambridge Raceway and The Clubhouse.

Building on the foundations laid, Cambridge Raceway has budgeted for surpluses this season in all its operations, totalling $218,000. Taylor St Limited is predicted to have a surplus of $70,000, Cambridge Raceway $64,000 and Waikato-Bay of Plenty Harness $84,000.

Cambridge has also gained $793,000 from a $15 million rejuvenation fund, recently set up by the TAB.

The Night Of Champions, which this year saw Copy That win The Race By Grins, will be even bigger in April.Large infield screen

A sum of $400,000 would kick start its new stables project and $393,000 will support the installation of a large, new infield indicator, similar to that at Alexandra Park, replacing its outdated and malfunctioning one.

The new screen, which will serve as a valuable community asset, suitable for events such as movie nights, will be in place in time for the Night Of Champions.

Grins night on Friday, April 12, will become the country’s second biggest harness event with the introduction of a trotting version of the slot race, “TAB Trot” sponsored by Entain.

All slot holders have been confirmed and will be announced next week.

Cambridge syndicate

In another positive initiative, with the aim of fostering industry growth and supporting its tenant trainers, the club has recently leased three well-bred mares from Woodlands Stud and Breckon Farms, forming the basis of a syndicate.

Individuals can buy into the syndicate, securing a share in each of the three horses to be trained by Nicky Chilcott, Arna Donnelly and Tim Hall. Participants will also own a share in a slot in the inaugural year of the TAB Trot.

Bowen says few of the country’s racing clubs would have such innovative, long-term plans as Cambridge.

The club had an unwaivering commitment to its strategic vision and, while its investments in the future had meant temporary financial stress, Cambridge was far from being insolvent as claimed by doom-sayers.