‘We were the common enemy': Racing Victoria chief Aaron Morrison chats about his first-year challenges and what the future holds for the state

News.com.au

2 days ago

Aaron Morrison walked into a furnace, as instability reigned then 'common enemy' Racing Victoria.
The newly-appointed RV chief executive in late September last year, less than two months officially in the hot seat, faced agitated Victorian racing stakeholders in the boardroom at Epsom Rd.
Their passion resonated with Morrison despite initial angry and frustration-charged spicy exchanges.
'I really saw the raw emotion on display from people,' Morrison told the Herald Sun in an exclusive wide-ranging interview after 12 months in the top job.
'It's fair enough and it's helpful for me and my team and my directors to understand it.
'What we do directly impacts peoples' livelihoods, it's not a hobby. They're all in, fully invested.'
The meeting last year, ironically to discuss ramifications of a matter beyond RV control – Australian Black Type Guidelines – inspired evolution.
Morrison scheduled quarterly roundtables to discuss racing matters with those most affected.
'A real lesson and education (first meeting) in the importance of consulting and understanding the impacts from a real raw and personal perspective,' Morrison said.
'It made me absolutely committed to making sure we consult on big issues … we're all about the stakeholders, the people that have everything invested in the game, their blood, sweat and tears.
'They're the people we're trying to look after and deliver outcomes for now, but also make sure they are sustainable and their businesses continue to thrive and survive in the next five to 10 years.'
Morrison was appointed interim chief executive last year in May after the resignation of predecessor Andrew Jones.
RV survived an 'uncomfortable' board spill and proceeded to revamp the executive administration.
'Racing Victoria was the common enemy of all the stakeholders (at the time),' Morrison said.
'While we had a vote in our favour, at the end of the day, it was still a very uncomfortable time.
'I'd like to think, now, we're not the common enemy.'
Morrison traded in passion, long before any professional and executive pursuits.
His late grandfather Ernie, a North Melbourne diehard, operated a bottle recycling shop in Kensington, a convenient front for his side hustle, as pencil-man for an illegal starting-price bookmaker.
Punters could drop off the empties and put on sneaky bets in one trip.
Morrison's passions for racing and North Melbourne started in Kensington.
The temperature has 'cooled a bit' – on racing matters, unfortunately not the beleaguered Kangaroos – with 'a good amount of respect' upheld in recent Epsom Rd forums.
'We've got a lot of experience across the industry and it would be silly for us not to be drawing upon that,' Morrison said.
Transparency has allowed RV to flag potential ideas, changes and reasons for same.
RV had come under scrutiny in the past for racing decisions without real consultation.
'It was pretty obvious that was the number one issue,' Morrison said.
'We'd lost confidence of our stakeholders … managed to steady the ship through consultation and engagement … get feedback on whether an approach is something they support or don't support.
'Clearly you're never going to get a single consensus view, nothing's changed in terms of that.
'You can't please everyone.
'Most often, you're definitely not pleasing everyone but if you can go some way towards including everyone in your decision-making process … they feel included and are generally supportive.
'I think they have confidence we know what we're doing – we're doing it for the right reasons.'
SKIN IN THE GAME
Morrison has interest in eight horses currently, including Jason Warren-trained Pakenham debut winner Keep Thinking and multiple with Cranbourne horseman Robbie Griffiths.
'I've got the photos of every one of their first wins, four or five up there now,' Morrison said.
'I haven't had any Group success or major success, just for the fun of it, racing with mates.
'It's one of those roles (work in racing) you fall in love and want to get involved any way you can.'
THE FUTURE
Morrison has focused on the strengths of Victorian racing overall – from grassroots to elite level – to drive the industry forward.
'I don't think it's a case of revolution, it's more evolution,' Morrison said.
'Levering the strengths of what we've got in Victorian racing.
'We want to get racing back up there again as a top-tier sport in front of a mainstream audience as it was in the heyday, we've got an opportunity to really push that.
'I don't sit here and say we've got something completely disruptive going forward, it's really building on all the things that make us already successful and continuing to be good at what we do.
'We are the number one racing jurisdiction in Australia, with the highest quality racing, participants, infrastructure and closest links with our communities.
'We have come under threat at times from others trying to compete for a share of the limelight and we got to address that and continue to do well at what we do already.
'In the past I think we got a little bit fixated about worrying what NSW were doing, and they're going to continue growing their jurisdiction.
'We just need to worry about what we're doing and make sure we remain the best at what we do.
'We are genuinely investing back into grow the sport and look after our participants … all we need to worry about.
'If we do all those things and take care of that, we'll continue to be the number one jurisdiction and continue to be successful, I don't think we need to over-complicate things.'
THE MEDIA
Victoria has the broadest media distribution of any Australian racing jurisdiction – a cornerstone for success.
Wagering turnover, the lifeblood of the industry, is about 15-20 per cent higher than any other state and Morrison largely attributed the position to Victorian racing aired nationwide on multiple platforms.
Other states largely rely on subscription television, Sky Racing and Thoroughbred Central.
Victoria has a presence on Sky but also daily free-to-air coverage on Racing.com (Channel 78), which includes races from South Australia and Western Australia.
'We also have arrangements with all the WSPs (wagering service providers) for streaming and we're on Kayo,' Morrison said.
'We're the only ones on Kayo and will be the only ones on Kayo going forward.'
Morrison is focused on investment in media assets and partnerships to reach wider audiences and create 'a whole army of advocates for racing'.
He staunchly refuted commentary or suggestions RV media assets haemorrhaged money.
'I'm aware of those statements being pushed around and I just disagree with them,' Morrison said.
'We generate a positive EBITDA from the media businesses alone, about $17 or $18m.
'We also pay out media rights to the clubs, about $35m a year … generated from our media assets.
'If you were looking at it as a stand-alone business, it's actually a profitable business.'
THE WAGERING
Morrison said the wagering turnover slide post-pandemic has flattened out a bit.
'The outlook at the moment, is for year-on-year to be flat, which would be a reasonably heroic assumption compared to the evidence of the last couple of years,' Morrison said.
Wagering turnover soared to a $9.2bn 'high watermark' during Covid but retreated to $7.6bn since – still above the $7.3bn pre-pandemic level.
THE RADIO
Morrison declared the recent sale of RSN 927 to the Sports Entertainment Network (SEN) 'a no-brainer' for the Victorian racing industry.
RSN largely survived on about $2m in annual shareholder contributions – from RV, Harness Racing Victoria and Greyhound Racing Victoria.
SEN takes control of the station from September 1.
'Hutchy has got the ability, willingness and desire to invest and to grow,' Morrison said.
'It's a good deal, we're getting paid for the assets ($3.25m over three years) and we keep a bunch of assets (transmitters and property) worth a lot of money.'
Morrison moved to clarify the $7.5m valuation the Victorian racing industry paid in 2021 to outbid SEN at the time and retain RSN.
He said price doubled as financial assistance to racing clubs in need of cash during the pandemic.
RV, who previously owned 70 per cent of RSN, tried to make the station 'work better as part of our broader media business' but ultimately decided on the 'better opportunity' to partner with SEN.
'You can't really compare those numbers (2021 valuation),' Morrison said.
'We've been paid for the assets, we're keeping assets worth several million and we no longer have a couple of million dollars a year in operating costs for at least the next six years.
'On a present value basis, it's a no-brainer. It works out far better.'