QRL OFFERED TO PURCHASE DOOMEN

Wednesday, August 3, 2011

Racing Queensland Chairman Bob Bentley posted the following Press Release today.

There have been some questions from the industry in recent times about whether any offer or discussions were held to include the Brisbane Racing Club (BRC) in Racing Queensland Limited’s (RQL) Industry Infrastructure Plan.

For the record, the BRC were consulted with as part of the process of looking at the best use of all industry assets. In fact the former thoroughbred control board, Queensland Racing Limited (QRL), did make a generous offer to the BRC to purchase Doomben, which was subsequently rejected.

For the sake of clarity for the entire industry, the facts are as follows:

The former thoroughbred control board, QRL on February 17, 2010 commenced a series of meetings with BRC chairman, Mr Kevin Dixon to discuss the possibility of the thoroughbred industry purchasing Doomben outright for $40 million.

This was part of the process of evaluating the assets of the industry in preparation of the construction of the Industry Infrastructure Plan now being rolled out by the merged control body RQL and funded by the State Government’s tax redirection. The approach to the BRC to purchase Doomben with a practical plan was seen as a logical first step, as this was considered the best option for the industry and the BRC.

The detail of negotiations instigated by QRL and put to the BRC is summarised as follows:

1. QRL would purchase Doomben for $40 million (value of Doomben as a racecourse).

2. QRL would finance and build the on-course stables at Doomben.

3. BRC would pay the cost of relocating the race day stalls adjacent to Hamden Street to a location east of the Doomben grandstand.

4. The corner of Hamden Street and Nudgee Road would be developed and BRC and QRL would share equity of the profit.

5. SEQEB transformer currently located in a position that hinders the BRC development at Eagle Farm would be relocated to a site at Doomben. The land at Doomben would be transferred to SEQEB at no cost.

6. QRL would operate the Doomben venue on a similar basis to Suncorp Stadium and race clubs including the BRC would lease or hire the facility to conduct race meetings. This would allow other entities to form race clubs and race at Doomben. As an example, BHP could form a proprietary race club, could be licensed and apply to conduct a race meeting. This would give the industry an opportunity to have race meetings with increased prizemoney from a new opportunity of proprietary racing. Tattersall’s Race Club would also have an alternative to Eagle Farm.

7. Existing BRC members would automatically be members of the Doomben facility at no charge. All existing BRC members rights would be preserved. New members would become members of the facility and pay a nominal charge to be venue members.

8. Doomben would have its own caterers.

9. QRL would warrant that Doomben would remain a racecourse and training centre for 99 years.

QRL’s submission was for Doomben to be retained as a racing and training centre conducting mid-week meetings as well as two Saturdays that would include the Doomben 10000 meeting and one other carnival day. Doomben would remain a major training centre with the on course stables being built at Doomben rather than being situated in the centre of the Eagle Farm Racecourse.

A successful negotiation outcome would have:

1. Allowed the BRC to bring forward the commencement of the development at Eagle Farm.

2. The cash injection would have allowed the BRC to control its destiny without being beholden to a developer.

3. The funds would allow the BRC to be better placed to secure a greater proportion of the development revenues and profits to return to the industry.

4. Stabling at Doomben would allow maximum use of the site and free up more valuable real estate at Eagle Farm.
5. QRL could free up Deagon for other uses or development for industry long term revenue streams by moving training to Doomben.

6. QRL could relocate its headquarters from Deagon to Doomben and make use of the excess grandstand space.

7. The responsibility of maintaining Doomben would be taken away from the BRC would have enhanced the BRC profitability.

The negotiations on material matters was agreed ‘in-principle’ however, the progression to an agreement was frustrated by one issue: BRC’s insistence that Doomben be leased back to the BRC for 99 years and the club hold the controlling entity.

The intent of the approach by QRL was not only to secure Doomben as a racing and training venue but to move away from the club control model and seek to introduce professional event management to the Queensland racing industry.

At the time, QRL considered that this would have been the catalyst of a significant change to how the industry was managed. The failure to reach agreement was disappointing but the control body could not be a party to handing over $40 million of industry funds to the BRC without giving the industry equity and a progressive new direction.

The suggestion that harness or greyhounds were considered as prospective tenants at Doomben was not considered in negotiations. The court case over Albion Park is unfortunate, but the best use of industry assets for the industry must be defended.

Harness and greyhound stakeholders have existed at Albion Park for many years however, the co-mingling of greyhounds and horses in the restricted land boundaries of Albion Park has always been the cause of friction. The greyhounds being confined to the inside of the harness track is less than satisfactory for stakeholders currently so far from the action.

The Industry Infrastructure Plan proposes a far superior outcome for both greyhounds and harness stakeholders at Deagon over the outdated confines of Albion Park. Deagon facilities will feature back to back trackside facilities. Harness stakeholders will have the 1400 metre track that they require to lift the profile of their code and greyhound stakeholders secure the large one turn track desperately required. These new tracks and facilities are not possible at Albion Park due to land area and size.

The proposal for Albion Park as the future home of the prospective new rugby league applicant “The Brisbane Bombers” ticks all the boxes, complies with the Albion Park Neighbourhood Plan, addresses the flood issues, links Crosby Park through Alan Border Field as green space and provides a practical solution to the traffic problems of Kingsford Smith Drive and Albion.

RQL will continue to offer the industry progressive change.

Yours sincerely
R.G. BENTLEY
Chairman