Manila Jockey Club Inc. (MJC) will shut down its horse racing operations and focus on real estate, the company disclosed to the Philippine Stock Exchange on Wednesday, Aug. 24, 2022. Its franchise for horse racing expires on Oct. 23 this year and the board decided not to seek renewal1.
MJC said it is reserving the right to revive the business later by applying for a new franchise, either under its own name or through a new wholly owned subsidiary1. The two Inquirer reports describe the franchise differently: one calls it a legislative franchise1, the other a congressional franchise2.
"Pending said new franchise, the company shall, in the interim, focus on its real estate business, i.e., development and/or leasing of its existing real estate properties"
The club started in 1867 as a social club for horse racing aficionados from prominent Spanish, American and Filipino families in Manila, and was established as a business entity in 19371. It moved its race track from Manila to Carmona, Cavite in 2003 to unlock rising property values; the reports give the old location as San Lazaro1 and Sta. Cruz2. At the San Lazaro Leisure and Business Park in Carmona it maintains two racetracks and the Turf Club Building, which can hold thousands of spectators, and has been hosting races twice a week on alternating schedules2.
In 2021 the club staged 632 races over 66 racing days and led other clubs in sales, grossing P1.034 billion, or 45.35 percent of total revenue generated by the Philippine horse racing industry, despite having fewer racing days than others2. MJC is controlled by the Reyno family2. It estimated a substantial reduction in operating expenses that will more than offset the loss in horse racing revenues, citing the retirement or separation of officers and employees in racing operations and savings on maintenance of the 60,000 square meter property in Cavite2. The board expects no significant impact on the company's financial condition in 2022 and in the years to come1.
| Item | Detail |
|---|---|
| Franchise expiry | Oct. 23, 20221 |
| Renewal | Board decided not to apply1 |
| 2021 races | 632 races, 66 racing days2 |
| 2021 gross | P1.034 billion, 45.35 percent of industry revenue2 |
| Cavite property | 60,000 square meters2 |
What it means for players
MJC is one of three racing clubs in the country; the others are Philippine Racing Club, Inc. and Metro Manila Turf Club Inc.2.
Racing at MJC's Carmona tracks is set to stop when the franchise lapses, so bettors who follow MJC race meetings, including its twice-weekly schedule2, face the loss of that fixture list. The reports do not say what happens to bets already placed, to pending pools, or to any winnings owed, and no plan for the Carmona tracks after the shutdown has been reported. Whether the remaining clubs absorb MJC's racing days has not been reported. For background on how Philippine racing and betting are structured, see Betting on Horse Racing in the Philippines and Horse Racing and Betting in Asia; the franchise and winnings tax framework is set out in Philippine Racing Franchise Tax and Tax on Racing Winnings (RA 7953).
What happens next
The franchise expires on Oct. 23, 20221. MJC has said it may apply for a new franchise in the future, under its own name or through a new wholly owned subsidiary, but no application has been reported1. In the interim the company will develop or lease its existing real estate1.
Sources2 sources
- Manila Jockey Club shutting down 155-year-old horse racing operations | Inquirer Business, business.inquirer.net
- Manila Jockey Club quits horse racing in favor of real estate biz | Inquirer Business, business.inquirer.net
