Perth Racing has warned the industry of an imminent reduction in prizemoney.  It will be the fourth adjustment since September 2008.

The latest round of cuts will be announced in the week leading up to the Perth Magic Millions which starts on Wednesday, February 9.  

Perth’s base Saturday prizemoney increased from $22,0000 to $50,000 in the decade ending 2007.  But lower TAB turnover, due mainly to corporate bookmakers and betting exchanges, has forced Perth Racing to take ongoing action.

“Corporate bookmakers turned over $5.5 billion last year,” Perth Racing vice-chairman Lex Piper told the West Australian newspaper last week.  “Some of that money has come out of WA and it’s eating into our turnover .”

Piper owns 2011 Perth Cup winner Guest Wing and is one of the State’s most influential breeders through his affiliation with industry leader Mungrup Stud.

Magic Millions WA manager Murray Tillett admitted the timing of the cuts was not ideal.  “The Perth yearling sale is the culmination of a three-year investment for our breeders and vendors but we already realised it was going to be a buyer’s market this year.”

Magic Millions may have a limited life-span conducting its yearling sales at Belmont Park.  The racecourse is no longer suitable for racing according to WA Liberal Premier Colin Barnett.  

Belmont stands on valuable inner-city land a couple of kilometres downstream from Ascot on the Swan River.  It was surrounded by wasteland until the Burswood Casino was built adjacent to the racecourse in 1985.

“Perth Racing can’t afford to maintain two large racing venues side-by-side,” Barnett said.  “I don’t think there’s justification for spending large amounts of money on Belmont.”

Belmont only races during the winter months, however, Perth Racing has endeavoured to increase its earning potential in recent years.

A plan to sell Gloucester Park and run the trots at Belmont fell on deaf ears.  Perth Racing hoped to build high-rise housing around the racecourse but negotiations with developers also collapsed.

Belmont Park is worth up to $400 million and its sale would provide Perth Racing with a financial lifeline.  The club is open to a move contingent on a satisfactory relocation.

If Belmont’s sale goes ahead, it’s understood the Government would offer Perth Racing discounted land south of the city for a new racecourse.

Presumably, Magic Millions will have an input into its design.  Perth is well overdue for a new sales arena to replace the temporary facilities under the Belmont grandstand.