RaceCafe..#1...Tipsters Thread.... Share Your Fancies For Fun...Lets See Who The Best Tipsters Here Are.
Guest 2Admin2

Allen Hits Back at Damning Deloitte Report

Recommended Posts

Guest 2Admin2

Racing: Board head hits out at latest report

15 Mar, 2018 5:00am
John Allen, Chief Executive Officer of New Zealand Racing Board. Photo / File
John Allen, Chief Executive Officer of New Zealand Racing Board. Photo / File
Otago Daily Times
 
By: Jonny Turner
 
 

New Zealand Racing Board head John Allen has hit out at claims international financial agency Deloitte have made about future TAB profitability.

A summary of the document known in horse racing circles as "The Deloitte Report" was circulated to thoroughbred clubs and industry organisations earlier this month.

The report, dated May 2017, was commissioned by NZ Thoroughbred Racing (NZTR) to investigate the NZ Racing Board's blueprint for the future. Until the release of the summary none of the report's findings had seen daylight.

The report's summary showed that Deloitte were critical of the NZRB's inability to secure or enhance its future.

It was also critical of the anticipated rate of return for the NZRB, which runs the TAB, from its soon to be unveiled fixed odds platform.

The platform, which is set to be rolled out on August 1, is a collaborative project with overseas companies Paddypower Betfair and OpenBet and is estimated to cost $59 million to $72m.

The margins the platform would return to the NZRB have been tested by financial firm KPMG, but Deloitte were critical of the strength of that testing in its report summary.

NZRB chief executive John Allen is at odds with that criticism and is critical of Deloitte for not doing enough research into the fixed odds platform.

"Deloitte didn't talk to us, this was a desktop exercise that they undertook without actually engaging with us and in our view they have significantly understated the value we are going to create from this. Because they have made assumption about the way in which our calculations were reached which are simply not true." Allen is more than comfortable that NZRB made the right choice in partnering with Paddypower OpenBet and that the partnership will increase his organisation's profitability.

We all want the same thing which is to substantially increase the amount of funding for the industry.
 
 
 

"We are confident that the fixed odds platform will create the value that we are expecting from it. We went through a very extensive exercise, by bet type, to assess the margin impacts that we expect to be delivered from this particular initiative.

Share this post


Link to post
Share on other sites

Guest

Well many of us on RaceCafe posted that the FOB platform was a folly as is the Racefields legislation.  I fear these Postman are really going to drive the final nail home.

Share this post


Link to post
Share on other sites

52 minutes ago, 2Admin2 said:

Well many of us on RaceCafe posted that the FOB platform was a folly as is the Racefields legislation.  I fear these Postman are really going to drive the final nail home.

Exactly Admin.

THe key factor I don't see addressed by the Delloite report is the makeup of the group making the decision on FOB platform. Heavily biassed towards sports betting. I revealed the background of those in an earlier posting. The main purpose seems inplay betting which has no demand in racing.

Having 100 contractors on the job is absurd. Hell Google, Facebook etc and aspiring companies would have loved having 100 contractors to get started. Only problem with 100 contractors they soon would soon gone bankrupt without the potential being realized.

I'll say it again the FOB platform is no benefit to racing.

 

Share this post


Link to post
Share on other sites

FOB Platform will suffer the same fate as the Typhoon Betting System. As Brian de Lore points out in his column in today’s Informant the NZRB should have gone with Tabcorp instead. John Allen fancies himself as some sort of world leading gaming guru. Totally delusional more like it.

Share this post


Link to post
Share on other sites

Guest
1 minute ago, gubellini said:

FOB Platform will suffer the same fate as the Typhoon Betting System. As Brian de Lore points out in his column in today’s Informant the NZRB should have gone with Tabcorp instead. John Allen fancies himself as some sort of world leading gaming guru. Totally delusional more like it.

Exactly!  In many respects we would be better to outsource the lot to Tabcorp.  

Share this post


Link to post
Share on other sites

Guest
11 minutes ago, gubellini said:

John Messara also of the opinion that the NZRB should have struck a deal with Tabcorp. Pity the NZRB did not take the time to consult him during their Due Diligence process.

Yes but if they had then it would have been blatantly obvious that Allen and the other Postman Pats are superfluous.

Share this post


Link to post
Share on other sites

33 minutes ago, gubellini said:

FOB Platform will suffer the same fate as the Typhoon Betting System. As Brian de Lore points out in his column in today’s Informant the NZRB should have gone with Tabcorp instead. John Allen fancies himself as some sort of world leading gaming guru. Totally delusional more like it.

A gaming guru with no gaming or wagering experience Gub....delusions of grandeur all round......:rolleyes:

Share this post


Link to post
Share on other sites

9 minutes ago, 2Admin2 said:

Yes but if they had then it would have been blatantly obvious that Allen and the other Postman Pats are superfluous.

I don't think anyone needed to be consulted. Its just common sense. Whats the point of technology innovation if it means spending even higher to keep up. Its like a business reinventing the micro chip in order to do the bookkeeping.

What if there is a better far cheaper betting system than tote betting and FOB. Means the $80million plus counting spend is wiped out. Thats what can happen.

Share this post


Link to post
Share on other sites

The thread is about the content of the Delloite Report which also could cover the pro and cons of commissioning it.

If the structure of NZTR is flawed it doesn't mean those working there are necessarily incompetent.

THe gamble on the FOB platform is huge. So far there hasn't been a detailed disclosure what it actually is.

Its the Racing Board that is treating us as suckers not NZTR.

Share this post


Link to post
Share on other sites

1 hour ago, poundforpound said:

 

I have no idea whether this Paddy Power thing is the answer, or even what it’s worth, but I do know one thing, NZTR has been a catastrophic failure for the last ten years and the fact they’re never held accountable is absolutely fucking amazing.

 

 

 

Ten years is surely generous p4p.

Share this post


Link to post
Share on other sites

I struggle with $18m down the gurgler on Typhoon and, if the numbers being bandied around by Brian de Lore are correct, another $30m up in front costs to get this package up and running. Then, once it goes live, an annual license fee to Paddy Power of $17m or so. It's flawed, however the NZRB is pregnant with the deal.

All of this has nothing to do with NZTR although realistically it does. Because, since the Racing Act came to be, NZTR, HRNZ, GRNZ and the 4 wise independent directors, if you include the Chair, have sat there and nodded their heads as know it all experts in this sphere of fully understanding what it takes to deliver NZ's betting software package.The Board not once but twice has approved these moves.

Back in 2008 Graeme Nahkes was tasked with performing the very first 5 yearly "Effectiveness and Efficiency Audit" of the NZRB being a statutory requirement of the 2003 Racing Act.

Salient words he wrote back then...."to the degree to which the NZRB remains a ‘statutory monopoly’ it will continue to be the subject of suspicion that it is bureaucratic, well resourced and overly ‘leisurely’ in its approach to its affairs. The experience of other organisations that have undergone a transition process like this organisation , suggests that further significant performance improvement should be expected"

His report was significantly watered down and for his services he was sacked with Michael Stiassny appointing KPMG to do the next audit in 2013. Published in 2014, it was a patsy report.

Quite simply from the NZRB's position of having over $60m available funds in reserves and then receiving an annual windfall in Duty relief of $35m+ to then get to a current day position of being in debt, beggars belief.

Perhaps some out there may be aware of who is putting the current "Effectiveness and Efficiency Audit" together? Many of those who've watched this debacle unfold over the past 15 years could write the contents for this edition.  

In 1982 a guy walked into the Whanganui Computer Centre and, before blowing himself up, graffitied the words "We have maintained a silence closely resembling stupidity" hmmm....

 

Share this post


Link to post
Share on other sites

On 3/15/2018 at 11:56 AM, 2Admin2 said:
 
 
 

"We are confident that the fixed odds platform will create the value that we are expecting from it. We went through a very extensive exercise, by bet type, to assess the margin impacts that we expect to be delivered from this particular initiative.

Say No More 

What sort of deluded world does this clown live in 

Share this post


Link to post
Share on other sites

Guest
2 hours ago, poundforpound said:

So says 2moron2 

Are you playing on the swings or the slides?

Share this post


Link to post
Share on other sites

I just wonder if the reality has hit home yet everyone?  It’s NEVER NEVER NEVER going to change until there is no more money in the kitty to pay both sets of rogues, imposters, greedy, incompetent pieces of dirt...so over & out! 

Share this post


Link to post
Share on other sites

7 minutes ago, La Zip said:

I just wonder if the reality has hit home yet everyone?  It’s NEVER NEVER NEVER going to change until there is no more money in the kitty to pay both sets of rogues, imposters, greedy, incompetent pieces of dirt...so over & out! 

The NZRB would continue to borrow to finance their grotesque salaries! The lunatics are firmly in control of the asylum.

Share this post


Link to post
Share on other sites

He was one of many that sold the industry down the river , but was the one who made the most glaring waste of industry funds , all because he never had a coloring book as a child , so he spent the last of the industries reserves paying someone millions to put the TAB site in color . 

He is the last in a long line of non racing people that live in infamy for having spent a fortune of industry money to achieve nothing . Because that is exactly what we have , nothing .

Share this post


Link to post
Share on other sites

I think we all need to go back in time and think back of those "surveys" we had done or partook in related to the Racing industry.

Who wrote those questions?

Who funded the research?

 Was it demographic?

 Was it biased?

Have the ways in which those "surveys" been undertaken changed from face to face, telephone calls, written to  that of only a small portion of society through online surveys?

Some serious questions and analysis needs to be done on background of KPMG, Deloitte Reports to get to the bottom of how a once prosperous industry in New Zealand has been hit so badly.

 

We recall a girl in the late 1990's who was on contract with one of those corporates having a role as an analyst  and dissing racing bc of perceived "harm" it does to society.

 Oh and then there's Max Abbots role with Problem Gambling.

 Who is signing off those contracts?

We must strip back the Reports going back quite some years to see who must be held to account.

 

 Have a read of "Gambling/ Gaming Minister" history in Newspaper archives and you will see the same anti Greyhounds/ Horse Racing cluster of activists as there was then.

Some of the news reports today are almost word for word without any change.

 

 Why  we don't hear Lotto been hauled over the same coals with Problem Gambling as there's some who have serious addiction issues there and cause greater harm unabated?

 Who is "Funding" the Academics research?

 

 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.