Proposed prizemoney increases for Victorian gallops meetings from February could be shelved if Tabcorp's revenue projections do not meet expectations.
Robert Nason, Tabcorp managing director of racing and media, will this month give the Racing Victoria Limited board an earnings forecast for the next 12 months.
RVL chief executive Rob Hines said yesterday the Tabcorp forecast would provide a telling insight on where prizemoney would go in 2009 and beyond.
Asked about the delivery of the promised prizemoney increases, scheduled for February 1, Hines replied: "I would say they are endangered. We are going to pull out every stop to make them happen, but I can't guarantee that.
"Much will depend on that forecast. It will be critical in deciding whether the prizemoney increases go ahead."
RVL announced on July 14 a two-phase $23.6 million prizemoney injection over the next two years, representing a 15 per cent increase on previous levels.
Included in the media release was the rider "should the performance from the joint venture meet expectations".
The first increase took effect on August 1.
The next planned increases would see country minimums lifted from $12,000 to $15,000 for Thursday and provincial one Sunday meetings.
Metropolitan midweek races and night races would rise to $30,000, while Saturday metropolitan races and feature night races would jump to $70,000.
Hines said the increases were always linked to Tabcorp turnover and the resultant revenue flowing into the industry.
He said if the turnover continued at its current level, the prizemoney increases would be implemented.
But Hines warned the impact of lifting advertising restrictions on corporate bookmakers could eat into TAB turnover.
"If the TAB forecasts indicate a major or large reduction in revenue, then it would be inappropriate and a mistake to increase prizemoney," Hines said.
"I'm hopeful it will be maintained, but I just can't give you that answer today.
"It would be irresponsible of me at this stage to say that we would definitely be able to go ahead until I see those numbers.
"We have been waiting for a forecast from them for a while, but the date is now set for them to deliver a presentation and forecast to tell us how they see the next 12 months."
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