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Racing heavyweights gather to fight NZTR strategic plan to reduce racing

BARRY LICHTER

Racing industry heavyweights are signalling that extreme measures like strike action are on the cards if thoroughbred racing bosses don't revise what they call a flawed strategic plan.

Just days after New Zealand Thoroughbred Racing's chief executive Greg Purcell was roundly criticised over the tens of thousands of dollars of industry money being spent prosecuting Kevin Morton for a critical posting on the chat site Racecafe, a high-powered meeting in Hamilton on Thursday will debate how they can convince the code's guardians they are going down the wrong path.

Five of the country's leading trainers, Murray Baker, Kevin Myers, Lisa Latta, John Wheeler and Graeme Rogerson, will be joined by breeding giants like Sir Patrick Hogan and Garry Chittick, and others - either in person or on conference calls - at the round table gathering as dissension continues to grow in the industry's ranks.

Rogerson sparked the meeting with a strongly-worded letter to all racing clubs nine days ago in which he urged the clubs to show unity and reject NZTR's latest strategic plan which warned of a reduction in race meetings and races.

Rogerson said he was sick of seeing another batch of projections and spreadsheets and NZTR had to listen to people at the coal face of the sport who were struggling to stay in the game racing for $7000 stakes.

"At our annual trainers' meeting we asked for a $10,000 minimum stake which will cost the industry $3.5 million but getting feedback from this proposal is like talking to a brick wall," Rogerson said in the letter.

"We are coming to the conclusion that maybe extreme measures need to be taken so that we will be listened to. I hope there is no alternative motive by our board due to the fact we are not getting any answers to our questions."

Rogerson said he knew of at least two leading trainers who would strike if NZTR continued to make decisions which were not in the best interests of the industry.

Rogerson said NZTR chairman Matthew Goodson blamed the need to reduce races on a dwindling foal crop. But after speaking to leading northern studmasters he understood more mares were booked to be served this season than last. And the number of horses which raced last season was down only one per cent.

He felt NZTR's plan to reduce South Island meetings from 87 to 77 days indicated the board was trying to "strangle the life out of racing" in the south.

"A lot of these clubs (as in the North Island) are run due to community spirit with working bees etc. The board doesn't seem to have the understanding of what these meetings mean to the people in these districts and the overall fabric of the racing industry."

Rogerson said the meeting would discuss the wide-ranging effects of country clubs like Wairoa losing one of their two days under the plan.

"This not only has a financial effect on the club but, by not being visible in the community, the interest in racing will diminish and over time the betting in that area will also decline."

Nelson was a good example, he said, where after losing one day its turnover plummeted. Trainers were far more likely to support two-day meetings because it was more financially viable given the travelling involved.

Rogerson said he had spoken to Goodson and Purcell about the plan to drop 21 race meetings and reduce cards from 10 races to eight or even seven, but he had not invited them to Thursday's meeting.

A delegation would visit Wellington after the meeting had come up with its strategy.

"Surely we've got to be listened to. People may not like me but I've had 48 years' experience in racing. We'll lose a lot more people out of the industry if we don't act. And I think we can get racing right."

Goodson said NZTR had put the strategic plan out to clubs for consultation and, while nothing was set in stone, their direction was very clear.

The plan would allow minimum stakes of $20,000 at all Saturday meetings, excluding maidens, (up from $17,500) and feature handicaps would go up to $40,000 (from $25,000).

It was a critical component of the strategy to stop the drain of our best horses overseas, Goodson said.

"Everyone wants $10,000 minimums but the money has to come from somewhere. And to do that the profitability of the New Zealand Racing Board has to improve."

In the meantime, NZTR's plan would see midweek minimums rise from $7000 to $7500, which shouldn't be sniffed at given they were $5000 only a few years ago, he said.

Goodson said it was not NZTR's intention to remove racing from any community if racing was viable there and field sizes acceptable. But many of the meetings in far flung places that were expensive to get to would have their second days cut.

"The second day field sizes and turnovers are awful," he said.

Goodson said a number of the larger clubs would also face losing meetings.

Goodson said if Rogerson's group could demonstrate fundamental flaws in the strategic plan and come up with a better way, NZTR would welcome it.

"But that's not apparent in anything we've seen to date."

Rogerson said NZTR needed to concentrate on the important issues facing everyone not waste time and money charging people such as Morton.

"That was ridiculous, The charges should never have been brought. They should have handled it in-house."

- Stuff

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Go for the throat Rogie.....time for some action to wake this mob up.

And if Mr Goodson looked closer to home he would see "where the money could come from"...

Fewer F#%^*+! bureaucrats.......!!!

And how the hell does reducing the number of meetings/races help "improve the profitability of the Racing Board".....the loss of betting revenue will be huge...where do they make this up....??

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Strike???

 

These threats have been around for years......nobody will get behind it.

Most trainers only have a few nags at each meeting.....apart from Donna and Ruakaka.

 

Only pisses off the owners....that are already getting fleeced with high costs and races postponed because nobody wants an all weather track.

 

A few weeks back we had no NZ meetings on a Sat due to weather....did anyone care? Nope.....TAB still had heaps of extra aus races to show....and plenty of sport. Tab turnover was about the same as previous weeks....

 

Be careful what you wish for.....I agree something should be done....but lets not cause more tension by a strike....

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Ohokaman hit the nail on the head, the top heavy cost of the hierarchy at nzrb/nztr could easily be reduced and a restructuring that would indeed cut admin costs is long overdue.

It's a fundamental business practice to cut costs to improve the product and thus the end result for its stakeholders.

It's not brain surgery but tongue in cheek thats what some in the halls of power probably need!!!

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Will be good to see the strategy that the meeting on Thursday comes up with posted on Racecafe so we can poke a stick at it and see how it stacks up.  

 

Rogie may be sick of projections and spreadsheets from NZTR, but his crew need to come up with more credible ones or they will be urinating into the wind.  It is one thing to get by in the judicial room with bluster and bullying, another to win arguments with facts and figures tested by all comers. 

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Strike???

 

These threats have been around for years......nobody will get behind it.

Most trainers only have a few nags at each meeting.....apart from Donna and Ruakaka.

 

Only pisses off the owners....that are already getting fleeced with high costs and races postponed because nobody wants an all weather track.

 

A few weeks back we had no NZ meetings on a Sat due to weather....did anyone care? Nope.....TAB still had heaps of extra aus races to show....and plenty of sport. Tab turnover was about the same as previous weeks....

 

Be careful what you wish for.....I agree something should be done....but lets not cause more tension by a strike....

 

Porty do us a favour and move to Toowoomba or somewhere would ya...

 

You could bet all you like on a cushion track through an Australian tote (no help to our industry)

 

and you could post back how nice the free television coverage is..

 

.Betting in big fields for decent prizemoney

 

Most of those trainers and breeders would just about own half a racemeeting of horses

 

all they would have to do would be scratch them for one reason or another

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Sorry Porty...only joking...

 

I realised ownership (even a small share in a slow one for interest) was a losing battle years ago.

Suppose this is when trainers had to go on the hunt for new owners or 

own and train them,

 

Think Breeders are the same and I don,t know that the broodmares are being served as much or

service fee,s holding up?

cause makes it tough with those stakes at moment 

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As  Bloke has stated the most inefficent operator is the NZRB and that is where the source of the funding for stakes is derived from. Their operating costs/salaries is what is costing the codes and if it is $3.5 millon pa that is required to have minimum stakes of $10,000 then a sharpening of the knife at NZRB should easily see that achieved.     

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Not sure it's that simple Ted.

Firstly the TB code gets 55% under the S16 distribution model so your 3.5 mill requires an additional 2.5 to the other codes.

Given that the only significant bottom line growth in NZRB revenues over the last couple of years has been the 13 million from pokies you're asking for something that's a bit unrealistic, unless you can secure more pokie venues, and reconcile your conscience with that.

You might need to address the real question too, the one everyone chooses to ignore because the answer is ' inconvenient', that question being this, why do you presume the NZRB cares about or prioritises racing? All the indications are that they only care about gambling, despite the relevant legislation being named the Racing Act.

If you accept that they're in the gambling business as distinct from racing everything becomes a little clearer.

You can understand why they employ those they do, why they advertise the way they do, where they see their growth opportunities, and why our domestic racing industry is largely irrelevant to them, apart from a bit of token lip service and the odd platitude.

By now you'll be saying to yourself that I'm correct, and once you accept that you can start to address the problem and initiate change.

You'd be looking at the legislation in the first instance, and then the NZRB board structure which appears to be designed to stall any progress and deny code initiative, it's socialism at its constipated worst having seven members, and only one of the seven can represent the majority TB code.

Being a committee man Ted you'll understand how that process ( when you have seven members with different agendas ) is more inclined to obstruction rather than construction, and the more members you have on a committee the greater the likelihood you'll find a reason not to do something.

You'd also be remiss not to look within and ask yourself if we're really using our enormous assets ( at the club level ) in the most productive and efficient manner possible. The answer to that question won't be palatable because it inevitably points to some form of rationalization, and our code is notorious for saying " yes let's rationalise, but let someone else do it, not my club ".

I'll conclude by saying that putting your hand out and bleating for more is a short term solution, but we need long term strategic thinkers too if you want real growth and prosperity, and that's IMO where we're lacking, and where we should be dedicating our resources.

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I think it could be achieved quite easily with existing funding since that is all we can rely on Ted. Simply need to get rid of the tiers in the racing structure and run all races for each class with the same stake aside from a bit extra, but less than now, for pattern and perhaps a few other iconic races.

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Strike???

 

These threats have been around for years......nobody will get behind it.

Most trainers only have a few nags at each meeting.....apart from Donna and Ruakaka.

 

Only pisses off the owners....that are already getting fleeced with high costs and races postponed because nobody wants an all weather track.

 

A few weeks back we had no NZ meetings on a Sat due to weather....did anyone care? Nope.....TAB still had heaps of extra aus races to show....and plenty of sport. Tab turnover was about the same as previous weeks....

 

Be careful what you wish for.....I agree something should be done....but lets not cause more tension by a strike....

Porty it wont piss me off as an owner, I stand by my trainer...if he's got the balls, I'll probably end up training a few of mine next year, and then only if the incumbent at HQ is gone......and the incoming is worthy of respect, to me it is a no brainer, to regain lost confidence there must be changes, now you have a good journo writing this mess up, surely John Allen has heard the reverberations around the country, overseas investment here even with our dollar at banana republic levels is stifled in this industry, I know, my partners have gone cold, and I'm waiting my turn to unload on the trade minister and the PM, not the racing minister as he's a paper tiger.

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NZTR (not withstanding Purcell) appears to be reasonably efficient only employing 27 odd staff. The problem is with The NZRB which has massive costs to income.

 

We are paying the price for Bonkin Bayliss and his extravagant spending including his suite at The Intercontinental.

Tell me, as I wasn't living here during the Bonkin Bayliss fiasco, was he answerable to anyone? who signed off on the 'Suite' exes?......surely someone had to have signed off........why weren't the alarm bells ringing then, this sounds like a bloody cover up.......you guys need to pull the sheets back and air the matress, it stinks.

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I smell the odour of political interference from this National govt. Who`s strings are being Pulled!!

 

 

...Or maybe they should have left  " FREE TO AIR  " ...

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Thanks Bloke, it's a tad clearer, I'm meeting my partners in London on the 24th Sept, they are asking for as much documentation as poss, I've collated many of the informative posts on here from reputable contributors, it's going to be interesting to say the least as they intend to take all this up with the trade commisioner as it's a recompense mission for them, plus moi I must say......the projection announcement a few years back was way off kilter, the behaviour of Bayliss came to their attention, plus the lack of accountancy. As disappointed as I am, who can blame a potential investor for recalcitrance when you look at this in it's entirety and perspective......

 

As a byline, anyone who enjoys great informative journalism with a twist from the UK, would enjoy the blog from Mr John Berry, horse trainer, Mayor of Newmarket [the most famous horse racing town on the planet as the birth of racing] at John's website......www.beverleyhousestables.com where John doesn't hold back in his support of women in racing, namely jockeys of course.

 

John contributes to the racing newspaper Winningpost which is sold across Australia weekely, he holds a one page international column, John would be the most credible racing person I know, he worked in both Australia and New Zealand and I encourage you all to have a read.

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The most annoying and frustrating part of this plan is the strategy is attacking those that are struggling the most in racing.Many of us own numerous horses and our(outside businesses) find this passion.Dont they see by cutting back country meetings courses etc our money and interests in the game could be lost forever.If they had come out and said we will start by restructuring the NZRB and streamline the top most of us could put up with the ongoing pain for no gain.These suits need to visit most racing stables and see how they are run on an oily rag.

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I am far from convinced that $10k minimum stakes is the answer. The extra $2000 the owner gets is not a game changer for mine.

 

There has to be greater incentive to retain decent horses in NZ. I would rather see $40-50k minimums at one venue in the country on a Saturday.

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Good on Rogie and the group for having a crack at getting something going.

 

The $10k minimum makes sense to me as an owner - if I have a horse good enough to get to Open grade I can deal a little better with lower stakes there (not saying they should be as low as they are - just saying my preference is to fund the lower end).

 

Cutting races and race meetings without cutting admin/growing the business etc etc - looks to me like accepting the industry is stuffed. Wrong signal and as others point out starts eroding the support for the industry across all groups.

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You have to increase the lower grades Bezerk to keep people in the game of racing horses. There are any amount of horses capable of winning a race or three but would struggle in higher grades. Remember it costs the same to train a slower one as a fast one.  

 

By inceasing the lower grades it at least gives something back to the owners who have an average horse and will more than likely persevre and try another. As it is, winning one or a couple of $7k races is a joke and is no incentive for owners to keep going. One sees a lot of horses that reach the trials etc and the trainer says it might win a race or two and you never see it make it to the race track. To spend $30 to $50k to win a couple of races worth less than $10k is not sustainable.  

 

$30k - 40K or even $50k races is not enough to keep the very good horses here rather than racing offshore but higher minimum races will see more horses on the race tracks and bring in more people to race or at the very least encourage them to continue in ownership. 

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Racing in NZ has been either dieing or dead for years.The fact that it's taken so long for some alleged heavyweights to try and do something about it is a concern.I would go as far as saying that some of the racing heavy weights(not necessarily named in the article) have been part of the problem.

Good luck to anybody trying CPR on this game.

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You have to increase the lower grades Bezerk to keep people in the game of racing horses. There are any amount of horses capable of winning a race or three but would struggle in higher grades. Remember it costs the same to train a slower one as a fast one.  

 

By inceasing the lower grades it at least gives something back to the owners who have an average horse and will more than likely persevre and try another. As it is, winning one or a couple of $7k races is a joke and is no incentive for owners to keep going. One sees a lot of horses that reach the trials etc and the trainer says it might win a race or two and you never see it make it to the race track. To spend $30 to $50k to win a couple of races worth less than $10k is not sustainable.  

 

$30k - 40K or even $50k races is not enough to keep the very good horses here rather than racing offshore but higher minimum races will see more horses on the race tracks and bring in more people to race or at the very least encourage them to continue in ownership. 

Ted, lets also add the subsidised racing like everywhere else in a civilised world........give the owner a starters incentive, pay the jocks fee, a float/fuel subsidy on a per m basis, something! anything!......show the owner you value their custom.......

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We don't need as many tracks or as many dates as we have. And im sorry if the closure of some tracks and removal of some dates has a negative impact on the odd trainer or owner but I have been an owner for years and if this is the price of progress then so be it. It cannot be the top priority of the industry that every man in a 5 horse town can train one or two for fun. That's just not the future. And that kind of thinking is part of what is holding us back.

 

The current structure we have is ruined. All of these tracks were built in a different time when we didn't have wall to wall racing beamed in from all over the world and when land was cheap. Not to mention that racing was the only "game" in town. It's a huge waste of resources to be doing things the way we have been. We need to have less tracks of a higher quality and an all weather surface (ideally a few) so we don't have such crap winter racing all the time and owners and trainers have a choice.

 

Everything I have said is based on a love for an industry that I want to see flourish in the future. Im thinking 10-20-30 years ahead. For all of you who disagree what is your plan to change things to bring it out of the dark ages?

 

A lot of the people who are opposing this appear to be doing it with strictly their own interests at heart rather than the future of the industry as a whole.

 

Bring on the haters.

 

By the way im all for cutting costs at the top level. I don't think there is too much debate on that issue.

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