The club that runs the Melbourne Cup just posted a $7.2 million loss. This is why it says that’s a good thing

3 months ago 6

The Victoria Racing Club says it has taken a key step towards profitability despite suffering its fifth consecutive multimillion-dollar loss since 2021.

The club that runs the Melbourne Cup wrote to members on Tuesday afternoon to announce a $7.2 million loss for the past financial year.

The finish of the 2025 Melbourne Cup at Flemington, won by Half Yours.

It follows losses of $24 million in 2024, $14.9 million in 2023, $16.9 million in 2022 and $14.9 million in 2021.

But VRC CEO Kylie Rogers told members that the figure translated to a EBITDA (earnings before interest, taxes, depreciation and amortisation) profit of $12 million, a $17.9 million dollar improvement on the previous year.

She said the turnaround was an important start “in returning to the club to a net profit position”.

The VRC, which runs Flemington Racecourse, told members it had cut spending by $8.7 million in the past financial year and paid down a further $5 million dollars of debt.

The cash-strapped club axed 40 jobs just three weeks before Christmas last year as part of a major restructure to rein in years of spiralling debt.

It also closed the new $128 million Club Stand to members during January to save on operational costs.

“We have been disciplined in our approach, managed our expenses and right-sized our business to ensure operational efficiency,” Rogers said.

But the race club pumped $7.3 million into prizemoney top-ups, as well as investing in training and racing facilities “to ensure the precinct upholds its world-class standards”.

Observer heading to the start before winning the Derby.

“Over the last financial year, we have had a clear focus on increasing club revenue, which has included strengthening our commercial partnerships, growing our membership base to a record 35,371, and a new media rights partnership with TAB and the Nine Network,” Rogers said. Nine is the owner of this masthead.

“We are under no illusion there is still plenty of hard work ahead, but the plans are in place and the outlook is positive, and we are committed to building on these sound foundations.”