Dear Brian (Kruger)

Congratulations on your appointment as the new independent chairman of Racing Victoria, no doubt you are looking forward to putting the feet under the big table on Monday.

After running an international company like Toll Holdings, employing 30,000 people before overseeing the state-owned Japan Post Holdings buying out your Australian logistics firm for $6.5 billion, that should shape you well for the lead role at RV, and suspect those feet not long on the ground as you hit it running. The time is right.

Of course you’ve had a solid grounding in racing already with 11 years including a couple as the vice-chair at the Moonee Valley Racing Club, whilst ownership in a few racehorses including Demerger (your first) and Bel Mer – both who would reach lofty heights.

And it would be remiss not to acknowledge thanks to the Racing Minister Martin Pakula in instigating the new process to finally revamp the governance structure that would lead to the chance for you to invigorate RV and not just cement its place as Australia’s premier racing jurisdiction, but so much more.

“It’s time Racing Victoria had independent governance and not have board members appointed by those that the board is to govern over,” Mr Pakula said at the start of the process that led to him ticking off your appointment.

So now to the challenge which I am sure you are about to relish.

It is understood you are a straight shooter, a firm believer in process and governance and very business focussed. Mr Pakula has given you an impressive like-minded group, retaining the former acting chair Mike Hirst, long time board member Greg Nichols, the respected Michael Andrew and fresh blood including former Crown boss and racing aficionado Rowen Craigie and a seemingly strong skilled set supporting team.

“The new appointments will ensure that the Board has stability and continuity as we head into the Spring Carnival,” Pakula said in signing off on them.

There seems great opportunity, but with that come issues that have simmered to redress, address and assert a clear vision for a new look and leading RV.

You assumed the role of chair vacated in troublesome circumstances by Rob Roulston and David Moodie, the latter still engaged in private legal warfare with Victoria’s Independent Integrity Commissioner Sal Perna.

Far be it for me it write your to-do list, these are just observations from afar from a racing fan as keen as many to see Victorian racing showcase the best of Australia’s third biggest industry. I am assuming you aren’t there just to take a baton, but keen to assert a lead and charge forward.

Which means put aside the overt actions from across the Mexican wall at the Murray border from New South Wales where a BM 58 is being pushed for black type status via a compliant cheer-leading media to the pattern committee which is then expected to forgo international formality so The Everest can be elevated to Group level ahead of normal schedule or even relevant rating.

No point reading Pravda (sorry The Daily Telegraph either), with endless Everest epistles from hairdressers being booked out already to the unique economic impact study carried out in advance spotting $100m worth of associated benefits to the local economy.

But all credit to General Peter V’landys having us believe the world is watching and talking all things Everest and that (Royal) Randwick is poised to eclipse Royal Ascot, The Kentucky Derby and the Arc de Triomphe before too long. It’s his typically aggressive play and rightly so. He represents New South Wales racing. There is no national approach.

You have enough at home to deal with but that is not to deny RNSW are happily lobbing spring bombs and there seems no returned friendly or unfriendly fire. Maybe it is not seen as needed, Victoria has the spring carnival, but the times for resting on laurels is well gone, Victorian participants wants issues addressed and firm direction shown.

So where to start, and these are of no particular order.

Firstly as the new chairman, you must work closely with your recently appointed full time Chief Executive Officer Giles Thompson.

Thompson has assumed the roles with some zealousness and rightly so given figures he is able to rehearse publically re the supposed rude health of the Victorian racing industry with prizemoney increases ($16.3m in final quarter last season) and wagering growth (up 8.4% last season) extolled as examples of such.

Numbers don’t lie, nor does Thompson, and so the RV vision “Racing For All” seems to be on some sort of track, if not a firm footing. That follows with “we want more people, more often engaging and enjoying our sport.”

One of RV’s key platforms has always been and rightly so – Integrity. It’s has been well funded from within and supported from without via Pakula’s government and obviously is the cornerstone of any involvement from participants and punters.

Terry Bailey and Dayle Brown have ‘without fear or favour’ led a clear path, happy to stand on a few toes without apology, but there seems the perception of some disconnect between the department and some participants that needs to be repaired to bridge respect.

Of course Brown has departed on the eve of your arrival to ‘seek new challenges’ and his carefully worded and managed farewell nodded to all the right things and the legacy left including a restructuring in the department – global leader, world’s best practice etc etc.

And yes that includes the powerful tool that is the “control room” with its hawk eye technology and analytical systems revamp, which has seen the Integrity Department develop into new age sleuths and cops. They need all the support RV can provide (about $7m last season).

But the big elephant in the room remains despite Brown’s departure (along with that of former chief veterinary officer Dr Brian Stewart) and of course that is cobalt, and the handling of the high profile case of trainers Danny O’Brien and Mark Kavanagh while a cab rank of others are parked at the curb.

Of course the Integrity Department must act independently of the Board and reports to the little heard of Integrity Council, and one wonders if a review of this whole case and how it has been run will be commissioned once this is finally exhausted.

You would be aware popular trainer Ron Quinton is before Racing New South Wales stewards today (Thursday) over cobalt irregularities, possibly identified as being caused by feed supplements, something screamingly ruled out by the RV integrity team in pursuing alleged miscreants here.

One might also ask what has happened to the (Paul) Bittar report which recommended primarily two things – a new vehicle, the ‘Victorian Racing Integrity Unit (VRIU)’ be established’ and ‘the restructuring of the appeal to the Victorian Civil and Administrative Tribunal (VCAT) of decisions by RADB and to establish a single cross-code Racing Appeals and Disciplinary Board (RADB)’. Where does this sit? A bottom draw? With the Minister?

While on such, can you just check with lawyers Allens, and see when they are getting back to RV finding the source (“mole”) of secretive informative leaked involving the cobalt trainers. We know it wasn’t your predecessor, David Moodie, the Independent Integrity Commissioner Sal Perna wrote that in his report though said he had misled the board at worst.

Of course this has been played out privately since in the Supreme Court with Moodie taking on the validity of Perna’s report, but sure RV must pursue an answer from the law firm it commissioned in January this year or at the very least provide some sort of update to the public.

And whilst on Integrity, can RV sort out the Kate Goodrich bullying and wrongful ejection from Kilmore saga once and for all. Yes much has been done and monies offered to settle Goodrich’s deep seated personal grievances here, but she’s one stubborn licensed participant not going away, certainly not after the years she has fought to have someone held accountable. I am sure she’d look forward to a chat with you.

(As a little more background, Goodrich is at VCAT at the moment appealing nothing more than a suspended sentence – told you she was determined – but it appears RV are even challenging her right to appeal that. Why?)

On a positive, the issue of Equine Welfare, principally led by Terry Bailey has RV well positioned to drive this further and engage with not just those in racing but around the expansive horse world.

OK, there is plenty more. It won’t be long until it’s time to start negotiations on the new wagering licence (due 2024) and how different the landscape is now to when it paid $410m for the 12-year licence in 2011.

Putting aside the Tatt’s merger saga, what will the commerciality of a new licence look like and what will it be worth for retail exclusivity, if anything at all, or what reduced value. And will there be any tension in any bidding for the licence, given the rapid growth and expansion of corporate bookmakers, who have no doubt fuelled the industry with competition for market share, dragging the former monopoly into modern reality.

You will also need to rebuild meaningful relationships with the clubs, as you would be aware from other side of the fence from your Moonee Valley experience, especially dealing with the long term infrastructure strategy, one that of course would assure Moonee Valley of its independence, future and redevelopment after so much planning has been done.

Along those lines will the mooted sale by the Melbourne Racing Club of Sandown as a club and its members over industry asset be dealt with?

Then there is the issue of training at metropolitan tracks, with it seeming inevitable that Flemington (VRC) and Caulfield (MRC) will not provide training facilities within say an ambitious 10 year time frame? What infrastructure planning is in place for that occurrence?

Will there be a second track at Flemington and how will that be funded? Will there be another synthetic track for Victorian racing with Ballarat a preferred and logical option? And on that; are there bottom line financial issues with the Pakenham experience and are there and guarantees in place that may expose RV?

Here is a little snoozer but worth big money to contemplate before we get to racing.com. It is known as equalisation rates and while it seems RV has been playing kindly with the smaller states, the question is asked – has it been costing itself north of a net cost of $10m a year in doing so. This in relation to the rates charged re pari-mutual v fixed odds and perhaps it’s about time RV fended for itself for the benefit of its participants.

As Moonee Valley were last to bundle your vision rights into racing.com, you’d be well aware and perhaps concerned as to the vision vehicle and digital platform for Victorian racing that has now enveloped of course South Australian (at some significant cost – but seemingly little return).

Would it be the view of the new RV Board to restructure the governance to start with at racing.com to ensure some more accountability and “vision” for the future both commercially and production wise.

RV trumpets that one of the key reasons for wagering growth is the racing.com and the joint venture with 7 West Media, and of course that was one of the key purposes for establishing racing.com in the first place when the relation with NSW over TVN broke down in 2015.

The free-to-air aspect of relations and the can now be seen “by 95% of the Australian public’ is the mantra but it is understood from 7West that they have no intention of releasing view numbers or even allowing an understanding of the customer.

One would query whether the 7West involvement in racing.com is their vehicle to any possible involvement in a new wagering licence. If so, the question should be asked if any racing.com management incentivised to assist in such.

Racing.com has been heavily under-written by corporate bookmakers broadcasting their odds and this goes back as a cost recovery exercise from day one when CrownBet took the preferred sponsor ahead of Ladbrokes, at an understood fee of over $10m.

Of course RV has a JV wagering partnership with Tabcorp. Is it correct that Tabcorp had first rites on involvement with racing.com but rejected it, even to the point RV funded their “advertising” presence on the digital platform?

And then with what goes, does your new RV Board consider this is the best it can do – putting aside the issue of South Australian product. Racing.com was established to provide a premium presentation of Victoria’s product, alongside the assistance of Thoroughbred Racing Productions (TRP), who I understand whose contract (worth about $8m annually) is up for renewal.

Would you not prefer High Definition coverage in this modern day? Why does TRP not have the ability to digitally enhance the race day presentation with actual live in-run position and associated technology (which is available on some courses) but can’t be put to air.

With that nor does any barrier trials (unlike NSW and Queensland) or any events (ditto) – that would surely enhance content and engage better with the customers and participants.

Or is it better to query whether a review of the racing.com operations be one of the key to-do’s on your list.

Apologies for the length of this “Dear Brian” letter. No doubt you are well aware of all these issues.

Good luck and I am sure the industry wishes you and your new independent team the same.