It has been decided that the Manila Jockey Club (MJC), which is one of the oldest horse racing clubs in Asia, will not renew its franchise and will instead cease all horse racing operations.
MJC disclosed to the Philippine Stock Exchange on August 24 that its board of directors had made the decision not to pursue an application for its legislative franchise, which was set to expire on October 23. This decision was made public in the disclosure that MJC made on August 24.
The MJC, which was founded in 1867, stated that it will only apply for a new horse racing franchise “subject to market conditions” if it does so either under its own name or through one of its subsidiaries.
In addition, the MJC board stated that it does not anticipate any significant impact on the company’s financial health, stressing that the company’s transition toward real estate will generate more consistent revenue streams.
At the moment, the MJC is financially supported by profits from properties located in Manila and Carmona, Cavite. In addition to that, it receives interest income from investments that are already in place and profits from the sale of its unused assets in Manila as well as from the sale and lease of horse racing facilities.
In the beginning of this year, Megaworld, which is led by Andrew Tan, purchased a valuable real estate site in Sta. Cruz, Manila that was formerly owned by MJC.
“The company anticipates a sizable cut in operating expenses, which, when combined with the decline in revenue from horse racing, will more than compensate for the shortfall. The retirement and/or separation from service of the officers and employees involved in horse racing operations, as well as the savings in the maintenance of the 60,000 sqm property in Cavite, significantly contributed to the reduction in operating expenses,” MJC said. “In addition, the savings in the maintenance of the property in Cavite resulted in a significant reduction in operating expenses.”
MJC reported losses of P35.47 million for the first quarter of 2022, which was a significant improvement from the losses of P66.7 million reported for the same period in the previous year.