poundforpound

NZRB statement of intent released

23 posts in this topic

Looks great this white paper, same as the 2011 paper, Mr Purcell was so proud when he delivered that paper.

We, [my husband and I] were excited by the 2011 plans and projections, as we all know now, NZ Racing is almost decimated, a laughing stock, only an elect few benefited, and whilst some of you may mock the breeders, I know I speak for at least many small breeders, there is now absolutely no incentive to keep going, in NZ that is.

Across the pond we are doing OK, it is sad to see our NZ cousins treading water, with drowning an almost inevitable finale, our investments would  be better placed here in OZ, we only stay with our Kiwi trainers in NZ as we respect and admire their skill sets, their tenacity and their passion, it costs us many thousands of dollars each month, however, until Mr Messara's suggestions and proposals are released and the statement of intent is released we cannot make a commitment further than a few months.

The failure of the 2011 report, that was a Grimms fairy tale, this new release from NZRB, what confidence do we have, and I speak for my family and friends here, none whatsoever, until there are massive retrenchments at NZRB/NZTR and those left need to re-apply for their positions, and of course the panel that selects and places the key executives are policed and governed openly and with complete transparency we will not place any credence on NZ Racing whatsoever.

May I add, one area that needs a complete overhaul is the day to day "policing" of the races.  When reading the daily stewards reports, I'm actually wondering if they, indeed, are watching the same races as me...there is absolutely no policing...no questions asked...no transparency...and you want the punter to invest?  If stewards did half their job, then perhaps the standard of riding might improve...the general comments from people here watching NZ racing is the standard of riding is questionable. like any sportsman, the more practice you get, the better you get at your sport...and if there aren't the meetings, then how can they improve their skills.  

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Does anyone really take any notice of these Industry distribution figures ?

We've had a succession of spin doctors over the years telling us "how great it's going to be" from Brown to Bayliss.

Didn't bonking tell us in 2016 the return would be $160-180m in 2018....???  Now its 2021....????

 

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Purcell was NZTR not NZRB

 

Two separate entities.

 

The statement of intent was issued by John Allen, NZRB

 

Seems a lot of waffle to me more about recent achievements and looking to repeat with a big emphasis on Sports.

 

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1 minute ago, Patiti said:

Purcell was NZTR not NZRB

 

Two separate entities.

 

The statement of intent was issued by John Allen, NZRB

 

Seems a lot of waffle to me more about recent achievements and looking to repeat with a big emphasis on Sports.

 

Sports is where the growth opportunity is, that’s just commercial reality.

Racing ( well two of the codes ) can’t really point the finger when their own product is flat lining.

If we were brutally honest we’d lay the blame at the feet of the code administrators and clubs because they’re guilty of doing nothing useful or constructive to initiate change and produce a better product.

It’s time we stopped behaving in an entitled manner, stop making out we’re the victims, stop blaming others, and sort our own mess out.

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1 hour ago, Patiti said:

Purcell was NZTR not NZRB

 

Two separate entities.

 

The statement of intent was issued by John Allen, NZRB

 

Seems a lot of waffle to me more about recent achievements and looking to repeat with a big emphasis on Sports.

 

Purcell was spruking the strategy implementation plan from the highest roof tops, and KPI's.......yes the board released the 2011 report, as the CEO of racing he was the fiercest defender, Allen is recent, and of as much use, by all reports a very nice man, but still just a mouthpiece of mediocrity, and mediocrity is being kind, the place has been in free fall for years, hence the prolific flogging of lovely Kiwi horseflesh to far away places with moula.

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Zippo, you make a good point, but I think you are still mixing up the 2011 Purcell report and projections of the NZTR board with the likes of this thread's 2018 and John Allen's previous SOIs which are from the NZRB board. Different machines, though both about equally useless.

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Have skim read this Statement of Intent just now.....

For the 1st time ever, the word debt and debt repayment is mentioned. Have read many NZRB annual reports,6 monthly reports et al and stand to be corrected, however have never previously seen the subject of debt and debt repayment raised by the NZRB.

On page 22 leveraging the balance sheet was touched on - no mention of how much and at what cost. The ASB quoted as being the providers of the revolving funding source.

On page 28 there’s a $22 million jump in other financial liabilities that gets repaid two years down the track so am assuming that this is the ASB.

All of this debt raising predicated on strategies, including the Racefields legislation and new FOB platform, delivering returns that will see distributions to the codes lift from $146m to $202m over the 4 year period to 2021.

Hanson, Brown and Bayliss all talked the talk and failed to deliver. Allen is walking the walk into equine mortality....

Adoption of an outsider’s recommendations cannot happen soon enough for mine.

 

 

 

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1 hour ago, Leggy said:

Zippo, you make a good point, but I think you are still mixing up the 2011 Purcell report and projections of the NZTR board with the likes of this thread's 2018 and John Allen's previous SOIs which are from the NZRB board. Different machines, though both about equally useless.

What I’m trying to say is Purcell was ineffective and just a mouthpiece and the new bloke will be just as ineffective as he is also just a mouthpiece and they can churn out as much spin as they like,  but the NZRB & NZTR need complete root & branch reform if this industry is to survive.  No credibility anywhere... b oth outfits are dysfunctional.  The people charged with appointing the key people is where the problem lies...because they keep getting it wrong.

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The board should not be agreeing to these strategies.

I still think the appointment of Bayliss by Jackson was the beginning of the end.

He should have resigned when the new Chair was appointed.

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4 hours ago, Eclipsed said:

Have skim read this Statement of Intent just now.....

For the 1st time ever, the word debt and debt repayment is mentioned. Have read many NZRB annual reports,6 monthly reports et al and stand to be corrected, however have never previously seen the subject of debt and debt repayment raised by the NZRB.

On page 22 leveraging the balance sheet was touched on - no mention of how much and at what cost. The ASB quoted as being the providers of the revolving funding source.

On page 28 there’s a $22 million jump in other financial liabilities that gets repaid two years down the track so am assuming that this is the ASB.

All of this debt raising predicated on strategies, including the Racefields legislation and new FOB platform, delivering returns that will see distributions to the codes lift from $146m to $202m over the 4 year period to 2021.

Hanson, Brown and Bayliss all talked the talk and failed to deliver. Allen is walking the walk into equine mortality....

Adoption of an outsider’s recommendations cannot happen soon enough for mine.

Used to lap up these reports but can hardly stand to open them now. Virtually no increase in distributions for the new season and an average of about 5 or 6% per year for the current and next two years IF they meet their projections. Doesn't sound too hopeful to me.

There's a bit more on the ASB revolving credit arrangement on the next page (23) as well :

Code distributions are budgeted at $151.6 million in 2018/19, $0.8 million above the 2017/18 year and an increase of
$14.0 million (10.2%) over the 2016/17 season. The $0.8 million increase offsets the increased venue services charges
to the codes as part of the Vision Capture project. As announced in April 2017, $12.0 million of additional funding
targeted at increasing stakes will be paid in the 2017/18 and 2018/19 years. A further increase of $2.6 million is being
distributed to fund the continuation of the activities and expenses of the Event Marketing and Logistics business
from 1 August 2017. This increase is being funded from current cash reserves and projected profit retentions and a
revolving debt facility undertaken with the ASB bank to fund the investment in the strategic initiatives. As benefits
from the strategic initiatives are realised, any debt incurred will be paid down and a sustainable distribution policy
implemented.
Distributions to the racing codes are expected to increase by $20.6 million to $172.2 million in 2019/20 and a further
$17.8 million in 2020/21 as the financial benefits from the key strategic initiatives are realised.

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4 hours ago, Leggy said:

Outsource what?

And when will the report be released?

Just quoting my usual sources.

I’d imagine just the FO betting, maybe tote.

I can’t see how they’ll outsource media but it’s possible, then you’ve got the very tricky services to racing clubs, down to the terminal operators.....can’t see how they’re going to outsource shipping terminal operators from Hawke’s Bay to Taranaki but that’s kinda how it works now.

Imagine if they go the whole way and outsource everything ( leaving the NZRB as a simple clearing house ) including dates ( one of their current critical roles ) and the Australians decide “oh fuck NZ, let’s schedule Toowoomba or Gundagai as first cab off the rank Wednesday and put that NZ Everglades swamp Racing where it belongs, at the back of the queue.” I’m using an extreme example there of course.

Anyway they tell me it’s 96 pages with a 6 page summary so there’s obviously a lot of something in there to digest.

It'll be leaked to me soon, I’ll publish the meaty bits.

FYI Leggy the increased NZRB distributions of the last 18 months came as a result of revaluing assets and borrowing against them, to the tune of 15 million last year.

To reduce that to layman’s vernacular we’re living beyond our means, accruing debt, and passing our excesses onto the next generation.

Good luck with that as a strategy.

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1 hour ago, poundforpound said:

Just quoting my usual sources.

I’d imagine just the FO betting, maybe tote.

I can’t see how they’ll outsource media but it’s possible, then you’ve got the very tricky services to racing clubs, down to the terminal operators.....can’t see how they’re going to outsource shipping terminal operators from Hawke’s Bay to Taranaki but that’s kinda how it works now.

Imagine if they go the whole way and outsource everything ( leaving the NZRB as a simple clearing house ) including dates ( one of their current critical roles ) and the Australians decide “oh fuck NZ, let’s schedule Toowoomba or Gundagai as first cab off the rank Wednesday and put that NZ Everglades swamp Racing where it belongs, at the back of the queue.” I’m using an extreme example there of course.

Anyway they tell me it’s 96 pages with a 6 page summary so there’s obviously a lot of something in there to digest.

It'll be leaked to me soon, I’ll publish the meaty bits.

FYI Leggy the increased NZRB distributions of the last 18 months came as a result of revaluing assets and borrowing against them, to the tune of 15 million last year.

To reduce that to layman’s vernacular we’re living beyond our means, accruing debt, and passing our excesses onto the next generation.

Good luck with that as a strategy.

I hope he doesn't mean Tabcorp.....:rolleyes:

https://www.fool.com.au/2018/07/20/tabcorp-holdings-limited-asxtah-just-lost-91-million-betting-on-its-uk-operations/

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Let's be honest, c'mon, lets.......it's worth saving our racing industry isn't it? If the consensus after digesting Mr Messara's report is not favourable, what next? there needs to be a plan B.....or as is the case in NZ, Oh well that's that, ........love to hear plan B,  someone, somewhere, please, no use crying after the fact, some of Messara's recommendations may be accepted and implemented, some may not, but you have to have faith in HQ and to be frank, the HQ crew are beyond it. It's not their fault in many cases, the Government minister for racing [previous] should be held to account, like here in Australia following the pink bats fiasco and the school halls where combined many billions of dollars were wasted, it cost the Government office, so accountability is now on radar.......do you think that behind closed doors the powers that be are discussing Plan B, should it be needed.......good governance would incorporate that, dialogue and proactivity. Let's wish ourselves luck, we are going to need it.

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The following is taken from a blog named Farnham Street - the highlight in the middle section is mine to demonstrate the key point. It discusses the difference between people who know what they are talking about and those who do plenty of talking but are full of B/S. A situation very common in many fields notably in local body and national politics (love the comments on journalism) and is so obvious once you read and absorbed the thoughts discussed below. Cue the engagement of John Messara for the NZ racing industry to move past this systemic problem.

Charlie Munger, the billionaire business partner of Warren Buffett, frequently tells the story below to illustrate how to distinguish real knowledge from pretend knowledge.

At the 2007 Commencement to the USC Law School, Munger explained it this way:

I frequently tell the apocryphal story about how Max Planck, after he won the Nobel Prize, went around Germany giving the same standard lecture on the new quantum mechanics.

Over time, his chauffeur memorized the lecture and said, “Would you mind, Professor Planck, because it’s so boring to stay in our routine, if I gave the lecture in Munich and you just sat in front wearing my chauffeur’s hat?” Planck said, “Why not?” And the chauffeur got up and gave this long lecture on quantum mechanics. After which a physics professor stood up and asked a perfectly ghastly question. The speaker said, “Well I’m surprised that in an advanced city like Munich I get such an elementary question. I’m going to ask my chauffeur to reply.”

The point of the story is not the quick-wittedness of the protagonist, but rather — to echo Richard Feynman — it’s about making a distinction between knowing the name of something and knowing something.

Two Types of Knowledge

In this world we have two kinds of knowledge. One is Planck knowledge, the people who really know. They’ve paid the dues, they have the aptitude. And then we’ve got chauffeur knowledge. They’ve learned the talk. They may have a big head of hair, they may have fine temper in the voice, they’ll make a hell of an impression.

But in the end, all they have is chauffeur knowledge. I think I’ve just described practically every politician in the United States.

And you are going to have the problem in your life of getting the responsibility into the people with the Planck knowledge and away from the people with the chauffeur knowledge.

And there are huge forces working against you. My generation has failed you a bit… but you wouldn’t like it to be too easy now would you?

Real knowledge comes when people do the work. This is so important that Elon Musk tries to tease it out in interviews.

On the other hand, we have the people who don’t do the work — they pretend. While they’ve learned to put on a good show, they lack understanding. They can’t answer questions that don’t rely on memorization. They can’t explain things without using jargon or vague terms. They have no idea how things interact. They can’t predict consequences.

The problem is that it’s difficult to separate the two.

One way to tease out the difference between Planck and chauffeur knowledge is to ask them why.

In The Art of Thinking Clearly, Rolf Dobelli offers some commentary on distinguishing fake from real knowledge:

With journalists, it is more difficult. Some have acquired true knowledge. Often they are veteran reporters who have specialized for years in a clearly defined area. They make a serious effort to understand the complexity of a subject and to communicate it. They tend to write long articles that highlight a variety of cases and exceptions. The majority of journalists, however, fall into the category of chauffeur. They conjure up articles off the tops of their heads or, rather, from Google searches. Their texts are one-sided, short, and— often as compensation for their patchy knowledge— snarky and self-satisfied in tone.

The same superficiality is present in business. The larger a company, the more the CEO is expected to possess “star quality.” Dedication, solemnity, and reliability are undervalued, at least at the top. Too often shareholders and business journalists seem to believe that showmanship will deliver better results, which is obviously not the case.

One way to guard against this is to understand your circle of competence.

Dobelli concludes with some advice worth taking to heart.

Be on the lookout for chauffeur knowledge. Do not confuse the company spokesperson, the ringmaster, the newscaster, the schmoozer, the verbiage vendor, or the cliché generator with those who possess true knowledge. How do you recognize the difference? There is a clear indicator: True experts recognize the limits of what they know and what they do not know. If they find themselves outside their circle of competence, they keep quiet or simply say, “I don’t know.” This they utter unapologetically, even with a certain pride. From chauffeurs, we hear every line except this.

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On 7/31/2018 at 9:55 AM, Ohokaman said:

Does anyone really take any notice of these Industry distribution figures ?

We've had a succession of spin doctors over the years telling us "how great it's going to be" from Brown to Bayliss.

Didn't bonking tell us in 2016 the return would be $160-180m in 2018....???  Now its 2021....????

 

One only has to read last years SOI to see how deluded the NZRB is.  17/18 forecast profit is $141.9m - but last year predicted $146.7m.  18/19 promise this year is $173.5m, but a year ago they were promising $185m.  They are still doubling down on the promise that 19/20 will be nirvana with all initiatives delivering $200m in profit.  Yeah right!

But then they don't have to worry because time and people move on and the Messara report will have written them out of the picture anyway.

What is new now is they are borrowing against supposed benefits to be realised.  That's a worry and a red flag to disaster.  When have they ever realised benefits anywhere close to what was claimed?

And staff costs still at $60m+ - what savings??

 

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