The Melbourne Racing Club has made a significant decision by agreeing to sell a $195 million parcel of land at Caulfield Racecourse to Mount Scopus Memorial College. This move is set to have far-reaching implications for both the racing club and the local community. The 7.5-hectare site, previously used for horse training, will clear the club of its $165 million debt and could potentially impact the Melbourne Football Club's plans for a training and administration base at the racecourse.

Benefits and Implications

The tract of land being sold runs the length of the western precinct of the racecourse, from Station Street along Kambrook and Booran roads to Glen Eira College. Since horse training stopped at Caulfield in 2021, the land has remained largely unused. Mount Scopus Memorial College, which operates three campuses in Burwood, Caulfield South, and St Kilda, has been searching for a new super-site closer to the city's Jewish heartland. This land deal will eliminate the need for the school to seek a land-swap deal with the state government for its three campuses at the Caulfield Hospital site.The MRC chairman, John Kanga, stated that the club has been negotiating with the college for more than 12 months and has engaged consultant Ernst & Young. The deal, expected to be settled within two years, has bipartisan support and is expected to benefit not only the school and its students but also local residents and the broader community.

Financial Impact

The MRC's ability to clear its debt is a major win for the club and the racing industry. Kanga highlighted that he has only been club chairman since October and has been critical of the $165 million debt incurred by the former committee and executive team. This sale will completely clear the debt, reducing risk and stabilizing the club's financial position. It will also free up resources for the club to focus on its core operations and future development.

Racing Operations

The new MRC committee will reverse the policies of the previous committee. They will continue to race at Sandown and shelve the costly plan to build a new Caulfield grandstand. Instead, they will move the Caulfield mounting yard back to its "rightful position" in front of the grandstand. This decision is expected to have a positive impact on racing operations and enhance the overall experience for racegoers.

Impact on Other Entities

Two sources with knowledge of the Mount Scopus agreement stated that the school campus project will complicate the Melbourne Football Club's plan to build their long-awaited home base at Caulfield. The AFL club will need state government and Caulfield Racecourse Reserve Trust approval as the training ovals will be built on Crown land inside the track. The Demons will need to raise $70 million from various sources to bridge the funding gap for the project, which has been a 20-year search for a central, purpose-built headquarters.CEO Gary Pert will continue as a consultant on the Caulfield Racecourse project while the business case is being prepared. Mount Scopus Memorial College's 2023 financial report revealed that it had $51 million in property, plant, and equipment.The MRC's plans to wipe its debt come at a time when the Victoria Racing Club, which runs Flemington, is facing financial difficulties. The club lost $70 million across the past four years and has axed up to 40 jobs as it moves to rein in its debt. Moonee Valley, on the other hand, is pushing ahead with plans to reshape its track and build a new grandstand after next year's Cox Plate, with a total project cost between $200 million and $250 million.The Valley posted a $12.4 million loss in the past financial year but is investing in the Moonee Valley Park project, which is expected to yield greater dividends when completed properties are sold in the following years.News, results, and expert analysis from the weekend of sport are sent every Monday. Sign up for our Sport newsletter.