Newspaper article The Queensland Times (Ipswich, Australia)

TTC Rejection Another Setback to RQL Plan; Financial Viability of Qld Race Clubs Facing Risk

Newspaper article The Queensland Times (Ipswich, Australia)

TTC Rejection Another Setback to RQL Plan; Financial Viability of Qld Race Clubs Facing Risk

Article excerpt

TOOWOOMBA Turf Club chairman Bob Frappell had a busy day last Friday.

He was attending the race meeting at Ipswich and in the third race enjoyed a good win by the galloper he part owns, Tycoon Cougar.

Later in the day, news surfaced that the Toowoomba Turf Club had rejected a partnership offer as proposed by Racing Queensland Limited.

RQL chairman Mr Bob Bentley said C[pounds sterling]the decision is a clear indication that the committee of the TTC does not comprehend the future ramifications of their decision''.

C[pounds sterling]This is a loss of opportunities for the members of the TTC to avail themselves of improved facilities and a greatly enhanced racing experience for all patrons,C[yen] Bentley said.

The item at the cornerstone of the partnership between RQL and TTC was $5.84 million provided by RQL to complete the synthetic track at Toowoomba.

TTC has claimed this expenditure as a grant, not as a relinquishment of part ownership of TTC to RQL.

Some interesting accounting processes follow from this decision.

First, Toowoomba will take up this grant, along with a Queensland Government grant and higher Sky Channel fees, to report an abnormal profit in the 2011 financial year of more than $10 million.

RQL will expense the grant, which will result in a reported accounting loss for RQL in 2011.

Excluding the grants from the TTC results, RQL says that TTC will lose about $1m per year, including the current year.

Bentley concluded that C[pounds sterling]based on the data available, the future financial viability of the TTC must be questionedC[yen].

The future financial viability of all Queensland race clubs is under question if partnerships with RQL are not formed under the current structure.

The Ipswich Turf Club is the only Queensland TAB club to have made a profit in each of the past six years. …

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