In a week where the Melbourne Football Club sacked its CEO Paul Guerra – reportedly in part over conflict regarding its move to the Caulfield Racecourse – it can be revealed the club’s refusal to accept an alternative project outcome led to tension between racing and Guerra against the football club’s board.
It can now be revealed how those differing visions for the Caulfield project caused tension between Guerra and the board.
Despite the Demons’ president Steven Smith telling the media on Wednesday an announcement is close, the odds of the Melbourne Demons securing the Caulfield Racecourse under their current plans are longer odds than the club winning the 2026 AFL Grand Final.
And those odds, according to Bet365, are a juicy $81.
But as Betsy has been reporting, the football club finds itself in an increasingly desperate situation – with a move still on shaky ground at best.
It’s been a big week for the footy club. They sacked Guerra [who as we know also sits on the Racing Victoria board] and as Betsy has been writing for a while now, much of that tension lies underneath their Caulfield dream.
Smith and his board remain dreamers too – their plans for Caulfield are ambitious and expensive and won’t happen unless they accept a compromised project.
Smith and his board colleague Geoff Porz continue with their pipe dream of their own administrative and training facility at Caulfield, which would include a tunnel underneath the racetrack.
That would close racing for up to a year, experts believe. The club’s project, if built on an empty paddock, would be completely reasonable.
But there are no empty fields in leafy Caulfield – especially at the racetrack – just rich and powerful opponents.
Betsy can reveal part of the fallout between Guerra, his former board and other parties revolve around two different visions for the Caulfield redevelopment.
The Melbourne Football Club want to build its headquarters at the old Acquanita Training Facility on Neerim Road. They would then build training ovals inside the racecourse.
Again, they want a tunnel so players can go between club HQ and their training facilities. All understandable demands, even if they are not realistic.
Those close to discussions told Betsy a compromise was eventually found between the football club, the Melbourne Racing Club and the Caulfield racecourse trust, who manage the site.
A brand-new facility would be constructed on Station Street in Caulfield, where the two parties would share the multi-story building.
For all intents and purposes, it would appear like the football club’s standalone facility. To help the football club even further, they were offered the bottom levels, signage, exclusive areas to make it appear like its own facility and crucially, there is an existing tunnel between this site and the middle of the track where the players would train.
Betsy has been told the only the only thing the football club would have shared was the basement car park.
The development would save millions of dollars compared to what Melbourne originally proposed, a big deal when the football club is reportedly $70 million short of what they will need to pay for the project. This too had the support of the necessary racing figures and if agreed, gave the football club a realistic dream it could be completed in the medium term.
Crucially, Betsy is told, it had the support of key state government ministers who would need to hand out tens of millions to the Melbourne Football Club.
Guerra too was a supporter. According to those with knowledge of the discussions, he believed it was an option that would allow the football club to secure its future and recognised, given his racing background, that the powerbrokers of the MRC wouldn’t budge much further.
It wasn’t perfect but it is a hell of a lot better than nothing. Perhaps it even is perfect, as it is a better site, close to the station and with the desired tunnel in place. Sources say work could have begun in 12 months.
Guerra was excited by the compromise and presented it to his board. They killed it.
The board, having had the club share buildings for too long and worried about their ability to compete against power clubs who have cutting edge facilities, are determined to have their own facility.
But those with knowledge of the project say the alternative option is similar to the state of the art facilities like Richmond’s new facility and Collingwood’s training base.
It also marks, in the views on many, the slow death of the project.
Guerra then pursued Waverley as a new base for his former club despite his board wanting otherwise. While Guerra may have been pragmatic, if not sensible in his approach, it created further tension with his board.
Betsy isn’t suggesting the tension is reason for Guerra’s removal, but other media outlets have suggested it played a part.
The Melbourne Racing Club, led by billionaire Jonathan Munz, remain steadfast in their opposition to the football club’s plans. They have been unimpressed with their dealings with the football club, especially at board level.
Guerra was known to ask some within the sport for help dealing with Munz however the two are believed to still be on good terms.
The state government is an interesting watch. The Herald Sun reported on Thursday that premier Jacinta Allan did not necessarily have a warm opinion of Guerra. Betsy is also told that the same government doesn’t exactly hold the club’s handling of the development in high regard either, a feeling more directed towards the board.
Munz and his club remain strong that racing will not shut during any development. Some within the racing club, plus Racing Victoria, are now saying the likelihood of a deal is fading quick. Many are committed to making sure it won’t happen.
Those who Betsy spoke to recently – even those who couldn’t care whether Melbourne ever train anywhere again – admit the plan Guerra took to his board has the best chance of success. Others just don’t think it will ever happen.
Add in growing community opposition, and we can’t help but think that these comments from Smith are either cheeky, ambitious, wrong or he knows something everyone else is missing.
‘’We are getting really close and confident on Caulfield,’’ he told reporters.
How are those $81 odds looking?
