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Auckland Racing Club Cuts Expenditure
Auckland Racing Club announced "changes to its structure in acknowledgment of the tougher times, as well as reduced stakes for the 2009-2010 season". The new stakes policy "will see NZ$10.415 million being distributed in stake money across the season". ARC chairman Bill Gianotti noted: "Despite the difficult recessionary times, we are pleased that for the 3rd consecutive year, the budgeted stakes policy will be in excess of NZ$10 million. Even more encouraging is the fact the percentage return to owners will grow to 93.51%: a new record return ratio for our club. Four months ago, the Board asked management to look at all areas of the business with a view to major cost-cutting. We wanted to ensure the business was as strong as it could be with reduced stakes pay-outs from the industry, fewer sponsors & reduced totes. The priority for the Board was providing returns to owners. As a result a major restructuring exercise has been completed, the marketing budget was substantially reviewed & all teams offered up savings to make the organisation leaner. These cost savings have allowed us to ensure we are providing the best possible returns to industry stake-holders." Gianotti added the Board had decided that with a strong balance sheet, the club "will run a cash neutral budget position excluding master-plan expenditure".