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Auckland Racing Club Cuts Expenditure

Friday, 31st July 2009

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".

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