NZRB’s open letter to The Informant

[CosmicBlackie 128]

Fair enough and well done to The Informant( Nov 14th) for letting John Allen respond to the accusations that were aimed at the NZRB, still a question I have over the increased funding of $10 million this season.

An accountant I am not, but if at the beginning of last season if the revolving credit facility was sitting at $0, and at the beginning of this season it sits at $10m, does that not equate to the funding increase? It feels uneasy where it states this is expected to rise to $30m over the course of the year on the back of increased turnover and profits, when you consider they’ve come from a position of having cash reserves and ownership of property just a few short years ago, of which now they have neither, to now having to borrow money.

John states this is ‘real’ money going to the codes, it feels like real borrowed money. If the debt sits at $20m at the end of this year as he states, is that another $10m of real money to return to the codes next season ?

Could I please be enlightened by someone with more accounting knowledge than me.

 

Thanks in advance.

[Huey 2,037]

Amazing that the Informant are taking the moral high ground on letting the NZRB have a say, when they have become an unmitigated beacon of propaganda for the M report .

 

I don't recall reading any articles in their publication that present a differing viewpoint to those who are not directly and negatively impacted by the report. 

[Pam Robson 1,551]

That's very true...I  [ among many I think ]  was most impressed by Luke Radich's reasoned dissemination of the M Report ;   while it is clear SOMETHING must be done,  ripping the guts out of rural NZ to support a hypothesis is a tad scary.

[Peter Harrop 226]

Can't help with the accounting, but the way I see it is that there are 3 groups.

Group 1 : Breeders and owners who can see promised windfalls (some might argue short term ones) and increases in stakes, mainly through the sale of Avondale and Rotorua racecourses, plus the 'outsourcing' or 'sale' (depending on which side you're on) of the TAB.

Group 2 : Punters, who couldn't give a s%$#. If they take racing away from their town, or are unable to watch it on television, they'll just do something else.

Group 3 : Observers, without any financial interest in the game, but a keen interest in its success (ie Luke Radich), who maybe are more capable of seeing the wood for the trees.

[Peter Harrop 226]

I do wonder myself how the issue of trackside broadcasting has never seen the light of day in the discussions. Between when Trackside joined Freeview in 2010 and 2014, returns to the industry rose from $121mil to $134mil ($13mil increase). In 2014 Trackside went to Sky TV. Returns since then have been $134mil (2014), $134mil, $136mil, $136mil and this year $148mil (which includes a special $12mil payment, so in real terns $136m). A real increase of just $2mil. Maybe if they'd stayed with Freeview, thus not halving the potential New Zealand audience through the move to Sky, they'd be up to $147 mil by now and with the $12mil payment $159 mil? There is the extra cost of the additional channel to consider but it shouldn't put that much of a dent in it, if anything.

It's all conjecture on my part, but it seems to make sense. Does anyone know of any flaws in this argument?

[We're Doomed 4,866]

It's all a bit of a pointless argument really, no-one has a valid answer.  We have to accept the industry is in an incredible mess and has been poorly run for at least 30 years while the situation has deteriorated almost beyond redemption. There is no simple answer. Anyone suggesting a simple answer is deluded. In my view the Messara thing is trying to suggest a simple answer to our problems. Anyone silly enough to believe it will solve all our problems is crazy. As I see it, we still can't get the basic non financial things right, so how on earth will throwing more money at it solve anything? Fixing handicapping, dates, programming, group races etc costs nothing. If you trust the people who can't get those basics right with millions of dollars to build all-weather tracks all over the countryside, create multi million dollar Derby races and do the myriad of other things they want to spend money on I am afraid everyone will be very disappointed. The industry is poorly run: a financial injection won't cure that.

[Chris Wood 1,577]

Wow, the future is so positive and rosy! 

Why would any club in their right mind sell up and put their money in to a consortium managed by the heirachy of NZ Racing with any trust?

[Chris Wood 1,577]

The direction of the NZ industry was very evident in how many NZ owners and trainers invested at the RTR sale over the previous two days, confidence supreme!

 

[Red Rum 1,833]

50 minutes ago, Chris Wood said:

The direction of the NZ industry was very evident in how many NZ owners and trainers invested at the RTR sale over the previous two days, confidence supreme!

 

The economics just don't add to invest here even on low level, training fees 3k month and I accept they are fair price to run  a business with big overheads  , if you lucky win 10k maiden maybe few places and after 12 months your dollars down. Turn up as owner don't really get a lot on track above just turning up to watch .

I had few  shares at one time 3rds in a few on lease , was fun but couple things turned me off . One of those ,turned up one raceday   went to raceday office they said both beer tokens and race books already taken. Turned out taken by other part owner who worked for stable . Then charged me 3 bucks for a racebook, watched horse walk round paddock from outside , stood in public stand with a mate , didn't get a word before or  after with jockey  or trainer , walked out thought , let both horses  run their  course , once done iam out.Little things matter , 3 bucks , couldn't throw a racebook my way , thought iam a mug here.

Take a bit of improvement for me to shell out any coin again to be fair. 

[SMD is rife 211]

What course was that Red rum?

[Red Rum 1,833]

Riccarton, was 15 or so years back but cheesed me right off , to be fair though had some bloody fun days with them  over the couple years I had them ,but just got feeling I was on outside looking in  just funding the show in a small way in end rather than part of it .  Once kids off my hands iam sure I will let the three bucks go and move on and get involved again in my older years , sometimes little things add up and turn people off.

 

 

 

 

 

 

[We're Doomed 4,866]

9 hours ago, Red Rum said:

Riccarton, was 15 or so years back but cheesed me right off , to be fair though had some bloody fun days with them  over the couple years I had them ,but just got feeling I was on outside looking in  just funding the show in a small way in end rather than part of it .  Once kids off my hands iam sure I will let the three bucks go and move on and get involved again in my older years , sometimes little things add up and turn people off.

 

 

 

 

 

 

Yes, its the little things they can't get right. Imagine what those same people will be like if they suddenly get millions of dollars thrown their way.

[La Zip 468]

12 hours ago, poundforpound said:

The fatal flaw in the M report is that it hinges on “land grabbing”, simply seizing clubs / members assets whether that be cash, improvements, equipment or land.

Those assets are then handed over to NZTR. 

My question would be why would anyone trust NZTR to do anything useful or productive given their performance over the last ten years ?

Furthermore why would anyone believe in the leadership of the chairman Alan Jackson, a man who’s been given so many opportunities but who’s played and missed every ball he’s faced in racing.

I might also add that seizing Avondale is going to be fun when the majority of it’s zoned “green belt” and community sports grounds.

When John Banks was mayor he said it couldn’t be done (rezoned), so how the F will they persuade a left wing local government led by Phil Goff and Penny Halse to rezone it. It can’t happen.

I did laugh on the night of the M report launch when Russell Warwick and Peter Walker ( loudly ) hailed this seizing of clubs “net assets” a grand solution, so now their club Ellerslie can hand over the 40 million cash they’re sitting on, and the 60 million they’ve got coming....plus they can sell the hill.....and we’re nearly there as an industry  

Go Russell and Peter, love your work and I’m delighted that you didn’t see Messara as the Trojan horse he is.

To conclude, let’s not stop at land grabbing the racing clubs net assets, I’m more of a Robin Hood than a Shylock, so let’s grab a few acres off the fat rich pricks, Waikato Stud ( and Garry with two Rs ) we’ll have 500 acres of yours thanks, Brendan and Jo, you’re good for 250 acres, and Gerry Harvey, let’s have half your joint too.

There we go, all problems solved.

 

How many more chances do you give Jackson?  Why I'm lost to the industry as an owner is simply down to this, if they had started retrenching, and I mean starting at the top, I would have stayed as it would've been seen to be a start, something positive, but nothing, their salaries are offensive to the rest of us, so Peters is a failure himself as he the racing minister could have directed retrenchments immediately, but he didn't, and Jackson and his ilk keep on draining the well.......What a joke.

[Cobba 31]

20 hours ago, Red Rum said:

The economics just don't add to invest here even on low level, training fees 3k month and I accept they are fair price to run  a business with big overheads  , if you lucky win 10k maiden maybe few places and after 12 months your dollars down. Turn up as owner don't really get a lot on track above just turning up to watch .

I had few  shares at one time 3rds in a few on lease , was fun but couple things turned me off . One of those ,turned up one raceday   went to raceday office they said both beer tokens and race books already taken. Turned out taken by other part owner who worked for stable . Then charged me 3 bucks for a racebook, watched horse walk round paddock from outside , stood in public stand with a mate , didn't get a word before or  after with jockey  or trainer , walked out thought , let both horses  run their  course , once done iam out.Little things matter , 3 bucks , couldn't throw a racebook my way , thought iam a mug here.

Take a bit of improvement for me to shell out any coin again to be fair. 

 

20 hours ago, Red Rum said:

Riccarton, was 15 or so years back but cheesed me right off , to be fair though had some bloody fun days with them  over the couple years I had them ,but just got feeling I was on outside looking in  just funding the show in a small way in end rather than part of it .  Once kids off my hands iam sure I will let the three bucks go and move on and get involved again in my older years , sometimes little things add up and turn people off.

 

 

 

 

 

 

The above sums up what really frustrates me. I acknowledge punters are a very important part of the industry but without owners and their horses there is no industry in the first place. Your Joe Average owner supplying the product gets a really poor deal - particularly on raceday. When the owner is shelling out tens of thousands a year to race a horse - to be treated as "on the outside looking in" is unacceptable. Some may think it's a very small part of the picture but I reckon it turns more people off than is acknowledged. 

Regards The Messara report -  I don't like the idea of the proposed grabbing and sale of assets but who has got a better fund raising solution that can be put into play immediately? The situation is dire.

[Red Rum 1,833]

10 hours ago, La Zip said:

How many more chances do you give Jackson?  Why I'm lost to the industry as an owner is simply down to this, if they had started retrenching, and I mean starting at the top, I would have stayed as it would've been seen to be a start, something positive, but nothing, their salaries are offensive to the rest of us, so Peters is a failure himself as he the racing minister could have directed retrenchments immediately, but he didn't, and Jackson and his ilk keep on draining the well.......What a joke.

Any industry in the mire cuts wages , iam no business person but everyone knows wages are a huge huge percentage of costs, trim the fat first thing you do before you start ,  as a kid my old man had short week in factory he's not chasing Mr Whippy ice cream  van down street in summer  as much as me and my siblings  all moaned at him to,  cut your cloth to what you got ,. Tough on people losing jobs or pay but it's dragging the ship down from the top ,  from what I read from people with knowledge of industry finances , and business experience it's got to happen , it's common sense.  

[Red Rum 1,833]

11 minutes ago, Cobba said:

 

The above sums up what frustrates me the most. I acknowledge punters are a very important part of the industry but without owners and their horses there is no industry. Your Joe Average owner supplying the product gets a really poor deal - particularly on raceday. When the owner is shelling out tens of thousands a year to race a horse - to be treated as "on the outside looking in" is unacceptable.

Had few thoughts last night about feeling outside of team, and really owner , trainer, strapper and jockey should feel like a team .As likes of me get older team sport starts to take a toll so it drops away , but being on a team is fun .  I not telling trainer what to do but I want to be privy to his thinking and plans for horse iam paying for that's all.

I used to enjoy heading over to Riccarton to watch morning  track work.  When things in industry get sorted and maybe AWT introduced and maybe more horses at Riccarton  how about  this . A small , very small "clockers corner " set up like at Santa Anita, maybe  small area set aside couple tables and chairs , a small shed with coffee machine where owners could watch track work in safe area and not get in way , shoot the breeze with the workers,  other owners  so they feel involved and welcome without getting in way of a workplace  , especially if new to game or don't know many people involved.People get to know each other , surely that's part of fun.Clockers Corner at Santa Anita a great way to spend a pre raceday morning .Punters,  owners and workers mingling together.

[Pam Robson 1,551]

Typical treatment for many from the 'bun hat brigade'  ...it has been said that the Committee room resembles a wing of a Ryman village with all the purses and wallets padlocked shut.

I would hope things are better now, RR..and at the track there is a perfectly reasonable ' trainers room'  where owners can view their horses, chat to their trainer, with coffee  and tea supplied - and even heaters..!

 

[hedley 1,900]

15 hours ago, Cobba said:

 

 

Regards The Messara report -  I don't like the idea of the proposed grabbing and sale of assets but who has got a better fund raising solution that can be put into play immediately? The situation is dire.

not fund raising..but cost cutting! . . .cut 50 salaries that were created in the empire building that's gone on ..significant funds raised by cost cutting is what can immediately be implemented!

[newbie85 94]

On 11/23/2018 at 8:23 PM, Pam Robson said:

Typical treatment for many from the 'bun hat brigade'  ...it has been said that the Committee room resembles a wing of a Ryman village with all the purses and wallets padlocked shut.

I would hope things are better now, RR..and at the track there is a perfectly reasonable ' trainers room'  where owners can view their horses, chat to their trainer, with coffee  and tea supplied - and even heaters..!

 

I thought that the Committee room was filled with those that arrived on the first 4 Ships and with “gravy stains” on their shirts from being in the “Pigs Trough”

Time for the Board to clean out the CJC, but I’m told that the CEO run’s the place unlike most Corporates where the Board makes the decisions and the CEO implements them.

[Insider 3,961]

35 minutes ago, newbie85 said:

I thought that the Committee room was filled with those that arrived on the first 4 Ships and with “gravy stains” on their shirts from being in the “Pigs Trough”

Time for the Board to clean out the CJC, but I’m told that the CEO run’s the place unlike most Corporates where the Board makes the decisions and the CEO implements them.

What Board do you suggest cleans out the CJC?

[Trump 2,741]

Has anyone asked this question of John Messara? “ On the road to prosperity, how many Club/Track assets did Racing Victoria and Racing NSW grab/consume, on their road to prosperity and better tracks and stakes?”. I think most know the answer.

[Pam Robson 1,551]

4 hours ago, Trump said:

Has anyone asked this question of John Messara? “ On the road to prosperity, how many Club/Track assets did Racing Victoria and Racing NSW grab/consume, on their road to prosperity and better tracks and stakes?”. I think most know the answer.

None...but their industries weren't insolvent.

[Trump 2,741]

I tend to agree with P4P. There is good cashflow and I suspect there are other terms (other than Insolvency) could be used to describe the situation. The real reason behind racing resurgence in NSW and Vic is that the State Govts and Racing NSW and Racing Victoria were actively working together to reignite the Rcing Industry. By contrast, Qld is the poor cousin due to the opposite and only strike action got any reaction from the Govt. It’s still a worry. Cost Management is crucial.