Hughs Open Letter

[Berri 2,131]

To all participants in the New Zealand racing industry

Dear All,

In late December, I wrote to a small group of thoroughbred industry members regarding the strategic direction of NZRB, our priorities, and to reaffirm our desire to work with the industry, across all three codes, to build a sustainable future for all.

While this letter was initially just shared with this group, I believe it would be of interest to all in the industry to also hear this message.

The Board of the NZRB are aware the issues facing the industry are significant. As you know this is not a new position, it is one that has been faced by all of the past Boards of NZRB and goes back well over a decade.

The position we find ourselves in has escalated over this time, due in a large part to a lack of decision making and ongoing disagreements between stakeholders as to what the perfect fix would be. Quite simply, there is no perfect fix, but there are ways forward, and we accept that there will always be disagreement as to the methodology when facing into these issues.

There have been numerous meetings between the Board, myself and our CEO John Allen, and with all of the Code Chairs and CEOs, to assess the priorities for NZRB and the industry. As the Board has advised at these meetings, decisions now have to be made and we must be able to move as quickly as possible, without the many legal and legislative roadblocks that can occur when endeavouring to make such significant change.

The first priorities which all stakeholders emphasised, and which have been agreed with by the Board, are to:

a) ensure the Race Fields legislation is enacted (I would like to note here that this is the first time the NZRB has been able to get this legislation before cabinet); and

partner with world class organisations to ensure that we can keep up with the speed of and scale of change and innovate in this rapidly changing environment.

It is worth noting here that when I took over as Chair and we were assessing the technology, we found that that not only were we lagging behind in the innovation space but that the NZRB lacked a fallback position for our technology. The cyber attack we suffered over the Christmas holidays two years ago was able to take the TAB out of the game almost completely during our busiest time of the year due to this lack of a back-up.

Minimising the potential risks we faced, especially in this time of uncertainty around earthquakes, was a key priority. I am pleased to inform you that the Optimus technology programme has mitigated the major business continuity risk NZRB would face in the case of further cyber attacks and/or earthquake.

The strategic plan we are progressing is not prohibitive nor restrictive to other activities. We are focussing on the critical areas where we can make the most tangible improvement over the next two-three years.

However, as both John and I have noted numerous times, it is critical that our industry is aligned and focussed on delivering a sustainable long-term future for all. There is simply not time to endlessly re-litigate this. The message we are getting from all-corners is that people want us to get on and start delivering. This is what the Board has charged the management of NZRB to do, and what they have already been doing over the past year.

With regards to the strategic pathway chosen by NZRB, our most recent Statement of Intent 2017-2019 sets out a very clear direction, including the estimated financial investment required and the benefits we anticipate these activities will provide once fully implemented – an estimated increase to annualised Net Profit for Distributions of $50-$55 million.

The Board agrees that NZRB needs to have the capability and resources to deliver these projects. They are not small undertakings. This is why the Board recently commissioned an independent review (by KPMG) of the NZRB’s ability to deliver those projects. Their report was presented back to the Board in December, and I am pleased to advise that it was positive.

NZRB has been very open and transparent regarding our strategic plans, and the benefits we anticipate they will bring to the entire racing industry of New Zealand. We have also committed to working with the wider industry, including stakeholders from the Thoroughbred, Harness and Greyhound codes, as we move through these projects, particularly those which directly involve the industry, such as our Optimise the Calendar initiative.

We can assure you that we have noted the industry’s concerns and desire to ensure the future for racing in New Zealand. We share this desire, and wish to see all of New Zealand racing, across all three codes, succeed and flourish.

Yours sincerely,

Glenda Hughes,

Chair, NZRB

[Guest 2Admin2]

Cough.

[Ohokaman 5,822]

Translation : " Don't expect us to turn up to your fucking lynch mob meeting...." 

[biff 2,158]

You only get a lynch mob when you're an outlaw....or Lindy Chamberlain, so outlaws it is then!

[Phantom 494]

"The cyber attack we suffered over the Christmas holidays two years ago was able to take the TAB out of the game almost completely during our busiest time of the year due to this lack of a back-up."

Their crappy system does that every Melbourne Cup day and most half busy Saturdays.

[rdytdy 5,339]

Gosh Berri, I looked at the title of this thread and thought WTF!! Hugh Grant is getting involved what's his letter about???

Could it be:

The Dawning

Impromptu

Four Weddings and a Funeral

Sense and Sensibility

Extreme Measures

Nine Months

Two Weeks Notice

The Edge Of Reason

I'm Still Here

 

 

[von Smallhaussen 3,226]

12 minutes ago, biff said:

You only get a lynch mob when you're an outlaw....or Lindy Chamberlain, so outlaws it is then!

you're lucky she isn't an 'inlaw' 

[Phantom 494]

FFS honestly if they just ran their fixed odds department properly they would make at least another $20 million pa, No need to spend $90m, And Race Fields legislation ain't gonna produce $1. If any bookmaker is forced to pay for the right to offer NZ racing (no idea how they could do that either) they will just dump it, because as we all know it is an awful product at the moment and doesn't attract enough turnover to justify books paying for it. It's just a ridiculous concept, if the EPL and the NFL can't get any of the world's 1000+ bookmakers to pay for the rights to bet on their leagues, what chance does the NZRB have? WOFTAM

[shaneMcAlister 1,425]

1 hour ago, Berri said:

the benefits we anticipate these activities will provide once fully implemented – an estimated increase to annualised Net Profit for Distributions of $50-$55 million

This is pure pie in the sky figures.

[noonu 93]

This is another attempt to calm the masses with the usual platitudes and promises that never get delivered .

"In the meantime however John and I ( that's me Glenda, wonder where Andy Haden is nowadays) will keep our inflated lifestyles intact while you lot fuss about having little meetings that shouldn't really be  happening now because I've satisfied you with my thourogh explanation of how us two racing experts ( that's me Glenda and John) are going to fix everything".

I hope like hell this doesn't fool anyone and Sunday proceeds as planned with strong action to follow.

[Leggy 4,067]

36 minutes ago, Phantom said:

FFS honestly if they just ran their fixed odds department properly they would make at least another $20 million pa,

How would you do that?

[trakdap 390]

I have been watching the American Elections and the process thereof to date.

If Donald Trump can overturn some of the decisions of previous governments by the stroke of a pen it shouldn't be that difficult to do similar for the Racing Industry.

Excuses don't cut the mustard.

 

 

[Leggy 4,067]

Yep, the wall is underway. No sitting round for a year or two assessing the situation

[Midget 4,489]

Ok.

Some more detail that is probably accurate, as much as second hand data can be accurate.

1. The figure is closer to 70 million of which 35 mill approx is to come from existing reserves.

2. The NZRB claim they'll be cash flow positive with the PP deal in year two, the NZTR analysts say we'll be 20 million in the red and into year four before we get into a positive cash flow situation with PP.

3. No one knows of any up front 10 million to us from PP

4. No one seems to know why we're outsourcing to PP then spending so much money to create a F/O platform to compete with the company we've outsourced to.......anyone have thoughts on this ?

5. The NZRB don't seem to want to divulge any details of their negotiations with either party, DD or Tabcorp. There was a comment made that the NZRB shit on Tabcorp because Jackson, the big 5 clubs, and NZTR had been in negotiations with Tabcorp about capturing our own code IP and entering into a parallel deal with Tabcorp to sell our product independent of the NZRB. Furthermore it's claimed Bill English supports the TB code going alone in competition with the TAB.

6. Last week ( it's claimed ) Alan Jackson approached Glenda Hughes on behalf of NZTR demanding to know why the PP option is being considered, and requiring more information to substantiate what appears to be a bizarre and expensive option. Glenda Hughes is said to have told the Chairman of NZTR that " we don't listen to you and if you think we're ever going to you're in cuckoo land ". Just bear in mind that's second hand but it does sound extraordinarily confrontational and very rude if it's even half true.

7. Tabcorp is said to have genuinely offered a 100 million alternative offer if the NZRB outsourced everything to them.

To close, this is dynamic in the extreme and various facts are being replaced by Donald J Trumps "alternate facts", but there's one thing that is absolutely factual, and that's that we have a virtual consensus and everyone wants the NZRB pulled into line and made accountable to this code, and to be made to comply with the Racing Act.

 

[Phantom 494]

1 hour ago, Leggy said:

How would you do that?

I've sent you a private message Leggy

[trakdap 390]

What's wrong with the NZRB. If they are that confident they will have the monies in the next 2-3 years why do they not BORROW  it .

That will then make sure they will do something positive to pay it back...

[biff 2,158]

Oh God Trakdap, they can't manage their own, ours, give them other peoples money and watch the mayhem.

[We're Doomed 4,855]

I must admit my eyes rolled and she lost me when she said right at the start "this goes back over a decade".

Does anyone know if Glenda and John have any racing knowledge or background at all?

[chelseacol 2,488]

2 hours ago, We're Doomed said:

I must admit my eyes rolled and she lost me when she said right at the start "this goes back over a decade".

Does anyone know if Glenda and John have any racing knowledge or background at all?

as a general observation - people with a bit of experience develop the ability to keep their head above water in any environment - even if they dont know what they are talking about.

Spin, BS, platitudes, diversion etc etc and some basic commonsense. I suspect Hughes and Allen have this in spades. So lack of racing knowledge - or the fact they have only been to the races a few times - makes no difference to their ability to survive

[Leggy 4,067]

10 hours ago, Midget said:

5. The NZRB don't seem to want to divulge any details of their negotiations with either party, DD or Tabcorp.

DD .. a freudian slip?

[biff 2,158]

9 hours ago, chelseacol said:

as a general observation - people with a bit of experience develop the ability to keep their head above water in any environment - even if they dont know what they are talking about.

Spin, BS, platitudes, diversion etc etc and some basic commonsense. I suspect Hughes and Allen have this in spades. So lack of racing knowledge - or the fact they have only been to the races a few times - makes no difference to their ability to survive

Absolutely Col, although, when you first analyse this mess, does the MH370 scenario spring to mind, [with respect to anyone who may have lost loved ones in that horror] their [NZRB] ability to survive will be truly tested when this industry hits the water. 

 

[Leggy 4,067]

13 hours ago, Midget said:

7. Tabcorp is said to have genuinely offered a 100 million alternative offer if the NZRB outsourced everything to them.

That may be the difference in the two deals Midget if I'm reading correctly what you say there. That is for outsourcing everything, inclusive of tote? Which was never part of the plan.  Whereas the PP deal is just for FOB?

I still don't get how the budget for the FO project can have gone from about $30m to $70m though. Doesn't make sense.

[toolittletoolate 80]

13 hours ago, Midget said:

Ok.

Some more detail that is probably accurate, as much as second hand data can be accurate.

1. The figure is closer to 70 million of which 35 mill approx is to come from existing reserves.

2. The NZRB claim they'll be cash flow positive with the PP deal in year two, the NZTR analysts say we'll be 20 million in the red and into year four before we get into a positive cash flow situation with PP.

3. No one knows of any up front 10 million to us from PP

4. No one seems to know why we're outsourcing to PP then spending so much money to create a F/O platform to compete with the company we've outsourced to.......anyone have thoughts on this ?

5. The NZRB don't seem to want to divulge any details of their negotiations with either party, DD or Tabcorp. There was a comment made that the NZRB shit on Tabcorp because Jackson, the big 5 clubs, and NZTR had been in negotiations with Tabcorp about capturing our own code IP and entering into a parallel deal with Tabcorp to sell our product independent of the NZRB. Furthermore it's claimed Bill English supports the TB code going alone in competition with the TAB.

6. Last week ( it's claimed ) Alan Jackson approached Glenda Hughes on behalf of NZTR demanding to know why the PP option is being considered, and requiring more information to substantiate what appears to be a bizarre and expensive option. Glenda Hughes is said to have told the Chairman of NZTR that " we don't listen to you and if you think we're ever going to you're in cuckoo land ". Just bear in mind that's second hand but it does sound extraordinarily confrontational and very rude if it's even half true.

7. Tabcorp is said to have genuinely offered a 100 million alternative offer if the NZRB outsourced everything to them.

To close, this is dynamic in the extreme and various facts are being replaced by Donald J Trumps "alternate facts", but there's one thing that is absolutely factual, and that's that we have a virtual consensus and everyone wants the NZRB pulled into line and made accountable to this code, and to be made to comply with the Racing Act.

 

Yes Midget

Thoughts re point 4 - I have been trying to work out why as well. I would have thought it is either one or the other. The think they are clever dicks running an international blue chip company, they are just a bunch of washed up bureaucrats with no other home, political appointed looking after their mates on the same sunken ship, who think they can take on the world in an industry they no nothing about. The sooner they get KPMG out and we get the SFO in the better!!

I certainly hope this mess can be rescued without penalty but my gut feel is they will say the ship has already sailed so like it or lump it if the comments in point 6 are anywhere near the truth. 

However irrespective of outcome short term the current "movement" is all positive and I certainly hope it gains momentum with a long term aim that we need to take back control of the TB code, there are many battles still to fight and debates in-house to have, some of us (like myself) will fall by the wayside in the interim hopefully to return in the future - in chase our dreams and support an industry that we are all so passionate about.

[gubellini 3,989]

toolittletoolate totally agree with you that the likes of Glenda Hughes and John Allen see themselves as corporate high flyers but in reality they are mere politically appointed glorified bureaucrats. Regardless of the Paddy Power deal and Sunday's meeting I fear that the horses I have shares in will be racing for $7,000 for some considerable time. Expect nothing and you won't be disappointed!

[Midget 4,489]

You should all know that the real driver here is Alan Jackson ( and obviously NZTR ) but the heavy lifting ( read dirty work ) is going to be done by Tony Pike and the Trainers Association.

I think we all know what's almost certainly going to happen next, and I really hope everyone gets behind this movement because this will show us that we do in fact have the power, we don't have to just sit back and let the Petone crowd abuse us, exploit us, and dump on us at their leisure while they get fat off our blood, sweat and tears.

I'm not sure it matters much but this is getting some mainstream media attention now, I think the NBR is running something, there's real momentum here and a steely resolve to make the likes of Glenda Hughes either do their job in a way that's beneficial to us, or fuck off.

Personally I'd demand Hughes resign Sunday but I'm probably a bit more ruthless than Jackson and Pikey.

I'm sure I'm not alone here when I say that I personally find this entire event so exciting, it's some reward for the small group amongst us who've fought for this type of action for a long time ( whilst being abused by the likes of Tasman Man ) and I'm sure that once we see a positive result ( it's hard to see any other scenario but I suppose we shouldn't be counting our chickens ) the entire industry will be empowered and have the confidence to repeat this If and when it's required or appropriate.

The tide of change is turning, now all we need is good governance and wise heads so that we don't waste the opportunity or the rewards.