Surprise, surprise...A State Govt commissione report says there should be a merger of the AJC and STC. The outcome hardly comes as a shock to anyone. As soon as the Minister called for the report, it weas odds-on it would favor a merger. The reason? To 'save' money. Haven't we heard that one before?The report calls for a 'super club' to be created. It says: The report highlights that the racing industry in the Sydney metropolitan region is facingsignificant and imminent challenges, including lar

Surprise, surprise...A State Govt commissione report says there should be a merger of the AJC and STC. The outcome hardly comes as a shock to anyone. As soon as the Minister called for the report, it weas odds-on it would favor a merger. The reason? To 'save' money. Haven't we heard that one before?

The report calls for a 'super club' to be created. It says: The report highlights that the racing industry in the Sydney metropolitan region is facing
significant and imminent challenges, including large maintenance and capital
requirements, declining admissions and overall revenues, escalating costs, mounting
debts with large losses predicted in 2008/9 and underutilised venues. Their predicament
is underpinned by an unsustainable and outdated club governance structure.


The study found that both clubs are facing financial difficulties that potentially threaten the
longer term viability of the racing industry as a whole in NSW. According to Ernst &
Young, the clubs have entered a 'vicious circle' of financial decline, with less and less
money available for investments necessary to re-vitalise the organisations; substantial
and rapid changes would be required to initiate a recovery and ensure the long term
viability of the industry.


A variety of options were evaluated to enable the clubs to break out of that cycle, from
direct cost reduction to intensive back-office cooperation to a full merger.


The study found that the most appropriate option for the clubs was to merge, while
remaining essentially under a club structure. The cost savings come from a rationalisation
of management structures, removal of other duplicated costs and purchasing synergies
whereas the potential for additional revenue was identified from the coordination of
events and sponsorships, as well as additional offerings in hospitality.