06 June 2011

Victorian Owners slam RV's product fee model

The Victorian Thoroughbred Racehorse Owners Association has “come out strongly against the recent decision by Racing Victoria to charge a low product fee” which according to TROA “may result in a shortfall of as much as $50 million a year below what RV should be charging”. Following criticism last year, RV commissioned a study by PWC & Peter Yates to review the product fee model. The Yates/PWC report has now been released “to a sceptical racing industry” & TROA chairman Jonathan Munz declared it is “fundamentally flawed” adding: “The report gave RV what it wanted, but not what the racing industry needed. It is based on academic pricing theories that are overly simplistic & some assumptions that are clearly wrong. This is a big concern. . . . . We call on the Racing Minister Denis Napthine to intervene to protect the industry’s revenue base.” 

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