Harness Racing Victoria claims it was shortchanged by as much as $100 million in a Victorian Government land deal that transferred a 93-hectare site in Melton to the state in return for clearing an $86 million debt.
The property, which includes Melton Entertainment Park, has since been valued at up to $200 million. It remains undeveloped despite its location near Melton and Cobblebank railway stations, a new hospital site and rapidly expanding western suburbs.
Harness Racing Victoria wants control of the land restored so it can use its value to secure the future of the sport, which has been under severe financial pressure since government support was reduced.
The organisation was required to surrender ownership in 2024 after agreeing to the debt settlement. It had bought the land for $5 million in 2007 and began racing at Melton Entertainment Park two years later, after moving from Moonee Valley.
Its independent control had already been removed in 2019 after changes to state legislation under former premier Daniel Andrews. As a statutory body answerable to the government, Harness Racing Victoria could no longer direct the proceeds of a land sale towards the industry, with any such proceeds going to the state Treasury.
The land’s development potential has attracted interest, including an offer of $90 million for a 30-hectare parcel in 2024. The proposal received no response, and the site has remained untouched.
Mark Shelly, managing director of Stockdale & Lego at Bacchus Marsh, said he was “dumbfounded” that the property was not being used.
“It is mind-boggling that the land is sitting there doing nothing,” he said. “It is this sort of hamster wheel, just spinning around, and nobody seems to be able to make a decision on what can or can’t happen with it.”
Harness Racing Victoria seeks access to Melton land
Bernard Saundry, the chairman of Harness Racing Victoria, said the sport could not achieve lasting financial stability through cuts alone.
“Harness racing needs new sources of income beyond traditional wagering revenue, and we have an asset capable of helping create them,” he said.
“We are not wanting a handout. We are asking for the opportunity to use the value created by our own asset to build a sustainable future, stand on our own two feet and ultimately reduce our reliance on government.”
Harness Racing Victoria has estimated that harness racing contributes more than $623 million to Victoria each year, with almost two-thirds of that contribution generated in regional areas.
The sport was ordered to become financially self-sufficient in 2023. By the end of the 2024 financial year, the organisation had recorded an operating deficit of $34 million, cut its workforce from 120 to 70 and reduced prizemoney by $14 million.
It has since reported earnings before interest, taxes, depreciation and amortisation of almost $1 million for the current financial year. However, wagering income remains under pressure, and industry participants have warned that breeders, owners and trainers may leave because they can no longer make ends meet.
“There is no incentive to stay,” one unnamed industry insider said.
Development plans could return up to $190 million
A consultant engaged by Harness Racing Victoria last year prepared three possible fundraising plans, all of which would allow racing to continue at Melton.
One proposal involved selling part of the land and developing the remainder, potentially returning $136 million to the industry over 60 months. A second would see Harness Racing Victoria retain ownership while working with a development partner, with a projected return of $190 million over 80 months.
The third plan involved a staged acquisition, with $130 million returned over 50 months through payments of $14 million every six months from the 24th month. Each option would require the organisation to renegotiate the $86 million debt taken on by the government in exchange for the land.
A Victorian Government spokesman said the state was supporting harness racing, local clubs and jobs, and had provided substantial assistance to clear Harness Racing Victoria’s debt and introduce a sustainable business model.
Harness Racing Victoria abandoned plans earlier this year to return to Moonee Valley as part of the thoroughbred venue’s redevelopment, citing the cost. From July 2028, it will transition from a statutory authority to a company limited by guarantee after changes to the Racing Act.
