​The financial statement from financial advisor Robert Duynhoven, tendered at the ​club's annual general meeting last Wednesday, declared a loss of $116,003.

That report outlined a sales decline of $62,925 "however, this was offset by reductions in the cost of goods sold".

"The increase in rental expenses of of $48,000 reflects the full year impact of the new lease arrangement," Mr Duynhoven said.

"The club also incurred higher salary and wages expenses for the year, an increase of $67,067, however, it should be noted we did not have a club manager for the period of the full year," Mr Duynhoven reported.

The club's cash reserves also dropped another $124,000 – from $649,765 to $525,557.

The news of the demise of the $75,000-to-win classic comes after Greyhound Racing Victoria sacked the volunteer Warrnambool Greyhound Racing Club committee in March last year.

The club had been considered innovators in the troubled greyhound racing industry due to its mostly self-funded $100,000 classic and its highly popular annual Seaside Carnival – both of which attract trainers from across Victoria and interstate.

Club administrator Robert Lane blamed the classic’s crash on the 40 per cent drop in greyhound breeding as part of the fall out from the live baiting scandal, which rocked the industry in 2015 and 2016.

He said an advisory group would be formed to look at options to revamp the classic and it was planned that the event would be held again in January 2019.

​Mr Lane said the operating loss had already been flagged to members last year as moves were made to ensure the club's survival.

He said there were no surprises in the financial report.

Mr Lane said total member funds were $1.63 million up from $1.37 million in 2015.

He said previous bank balances had been inflated by prizemoney to be paid out for the Warrnambool Classic.

“The reported operating loss of $116,000 was forecast and reported to members at the last AGM and includes a couple of significant one-offs including new lease, full year club manager salary and transition costs of the Warrnambool Classic,” he said.

Mr Lane said there had been investments made in track improvements of $450,000 during the year which had led to a significant reduction in racing injuries.

“We have moved back to trading at a small operating profit for the first five months of this financial year,” he said.

“And we have further upgrades of club amenities in the planning stage of around $1.3 million which will ultimately help us generate more club revenue through functions, events etc.

“We still have plenty to do, but I believe we are heading in the right direction,” he said.

GRV chief executive officer Alan Clayton said the Warrnambool club was the hub of the industry in the south-west and a critical partner for the future of the sport.

He said greyhound racing injected more than $8 million into the Western District economy each year and there were 61 full-time equivalent greyhound racing employees.

The CEO said the club also provided services to the 828 greyhound racing participants in the region. 

“Greyhound racing is alive and well in the Western District with both GRV and the State Government making major investments in the club over the past two years,” ​he ​said.

Mr Clayton added that during that time $2.19 million has been either spent or committed on developing the club in both infrastructure and race promotion.

“We are investing in a new judge’s tower and pavilion and new track infrastructure,” he said.

“GRV’s marketing arm alone has spent $160,000 in the Warrnambool area over the past 18 months and have employed a regional resource to assist in promoting the club.

“All of the above should send a very strong signal to the club, the community and to the media, that we are investing heavily in the future for the club and to insinuate anything else is a nonsense,” he said.