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Allen Hits Back at Damning Deloitte Report

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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.

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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.

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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.

 

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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.

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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.  

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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.

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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:

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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.

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You have to love NZTR, they never own their own mistakes, they never make themselves accountable, they never actually do anything useful, they waste every cent they get, they’re driving this industry to the wall, literally......then they use our industry money to produce another fucking report orchestrated by some spotty faced accountants that deflects all scrutiny away from NZTR and on to the old enemy, the NZRB.

Luckily this industry is full of thick fucking idiots who buy into this bullshit, those mental midgets who still think Alan Jackson is the great white hope.

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.

They are imposters in their current form, and you suckers are having the wool pulled over your little squinty eyes.

 

 

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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.

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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.

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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....

 

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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 

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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! 

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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.

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