Mauritius Turf Club CEO Mike Rishworth issued a press release on Monday confirming that the club is in a financial predicament which it blames on off-course bookmakers not being able to work for 27 of the 37 racing fixtures in 2019.
MTC CEO Mike Rishworth
The release states that the MTC is fully aware that the level of stakes payable is the lifeblood of the horse racing industry and has always strived to pay the maximum level of stakes within its financial means.
The Board of Administrators holds the view that, in the face of financial adversity, a review of stakes money is the last remedial measure that should be taken.
Unfortunately, due to circumstances beyond the MTC’s control, which has put severe strain on the MTC’s cash flow projections for 2019 and 2020, the Board is left with no option but to review the budgeted level of stakes payable with effect from the race meeting to be held on 19 October 2019.
Having considered all options available, the Board of Administrators has resolved to reduce the stakes payable on all races by 10 percent with effect from the 19th October 2019.
This represents a reduction of Rs 2 million on the remaining races for this season, and will mean that by the end of 2019 total stakes paid will be Rs 98 millions, i.e. same as those paid in 2018.
A detailed breakdown of the revised stakes levels for the various race categories will be published shortly.
The financial predicament of the MTC is a direct result of off-course bookmakers not being able to work for 27 of the 37 racing fixtures in 2019, resulting in the MTC losing at least Rs 14 millions net in net revenue.
In order to recover lost revenue, the MTC has applied on numerous occasions to the Gambling Regulatory Authority (GRA) to run additional races at our race meetings.
Most of these applications have been declined. Similar requests have also been formulated to the GRA by representatives of the Trainers’ Association, without success.
Furthermore, with a view to contain costs, the MTC has embarked on an ongoing cost cutting campaign and significantly improved financial discipline in its day to day operations.
The MTC has continuously kept the GRA fully informed about the Club’s looming financial predicament and the potential consequences thereof.
The Club has also sought approval/clarification for certain other income generating initiatives which again remained unanswered. The members of the Club have also been kept informed as per the last informative meeting held on 19 June 2019.
The Board of Administrators regrets having to take this action and trusts that, in view of these exceptional circumstances, all stakeholders will understand that taking this measure is unavoidable and has resulted from circumstances beyond the MTC’s control.
The MTC confirms that it will continue to work with the GRA to find solutions to this very serious and unfortunate situation and also welcomes any assistance that the newly formed Trainers’ Association could give in this regard.
