LightsOut

Looks like the NZRB Senior mangement is in lockdown..

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To: NZRB Senior Leadership team

Date: 14 February 2019

CLARIFICATION ON TODAY’S INFORMANT ARTICLE

Kia ora koutou,

Several of our people have been in touch with me today in relation to today's issue of the Informant and the article 'Wagering experience a key requirement for the TAB'. I know many of your teams will also have discussed the content today and it's clear the latest ramblings from their opinion writer (I think the writer has quoted ramblings but they are yours John) to have angered many of our people and with good reason (yes definitely the Industry is now finding out just how incompetent they are).

The article contains plenty of inaccuracies, fiction and critical comments (you have 1000's of customers critical of your new Platform you going to get comments reflecting that) about some of our people (yes possibly fiction about their previous employment). Quite frankly, much of what is written is absolute rubbish (ha I don't think so and when the place is cleaned out there is going to be some serious matters of concern raised).

The facts are clear. FOB was a huge undertaking - probably the biggest initiative ever embarked on by the NZRB. Sav, Dianna, Stephen and everyone else who worked on it did an outstanding (honestly get someone to buy you a dictionary so you can look up the meaning of the word as its been wrongly used in the context of your thinking)  job. It was delivered for $40.8m (and will actually come out less than that). The claim the all-up cost is '$50m plus' has absolutely no basis.

The new platform is working (yes it is poorly) and delivering results (yes $11,000,000 down in racing turnrover in the first 4 weeks). It is absolutely performing (please don't you listen to or read your customer complaints, I mean honestly are you are on the same planet ?). Any comparison to the Typhoon initiative seven years ago is ridiculous (Typhoon designed by clueless management and the new platform the same so its not rediculous the claim its history repeating itself). FOB is going to deliver increased distributions to the industry next year between $17m and $19m. This year we'll deliver an increased net profit on last year despite no contribution from the previously anticipated Racefields.

A recent comment by you in the media: We are budgeting for the new platform to deliver an additional $11.6 million of net profit in the 2018/19 financial year and an additional $17.4 million in 2019/20.Then this from the NZRB Statement Of Intent:  The impact to net profit in 2017/18 is a reduction of $7.1 million that reflects the investment required, primarily in FOB, which delivers an increase in net profit to close to $200 million in 2019/20 upon successful implementation. These are figures quoted as increases solely from the new Betting Platform nothing to do with income from Racefield Fees.   You saying what was quoted was rubbish, John your claims re doubling account holders and increased turnover due to 1,000's of more betting options was rubbish. 

The inappropriate comments (inappropriate? the only one getting touched up is the Racing Industry) about some of our team have annoyed many of our people but to get too worked up about them would be to give undue credibility to a baseless opinion piece from one person (do you honestly think one person has the opinion quoted, that's actually an insult to many people in the Industry) . I know many of our people have had enough (left out 'of us')and want us to take direct action. I understand this view and it is something we will have a hard look at.

In the interim, please ensure your people don't take what's written by one columnist to heart. We are lucky to have incredible and talented people delivering real results for the industry (f$#@ me). This is something we can't take for granted (by God you said above it was fiction what the writer reported yes well I think you were quoting the wrong person as far as fiction and fantasy goes).

Ngā mihi,

John

You were quoted last week as saying a few weeks after the Platform was launched ? “We did expect an early downturn of somewhere between six and eight weeks as a consequence of the change to the FOB platform and that’s based on the experience Sportsbet had for the system we have just put in,” Allen said. “We expect that will go on for at least the next couple of weeks. We are going to see both volatility in financial performance and a decline in turnover and that’s why getting some ‘sighters’ on the early performance of the sports betting is really positive (how positive is the early yield verse last year John) .” After 4 weeks racing turnover is down $11,000,000 and that is with approximately 1,500 more races for that period verse the same period last season (remember the Platform was sold to the Industry that more Options would increase turnover). Why wouldn't you advise the Industry that comment prior to the Launch, quite obviously because it never entered the NZRB's mind. It blew up in your face and your counter reasoning only makes you look more lost.

As for your so called talented people working for the Industry mmmm is that right so answer me this embarrassing question. You were on a committee to look into how to combat offshore betting leakage. A customer I know showed me correspondence from an offshore bookmaker who offered him 6% rebates on NZ tote win and place betting. Obviously the bookmaker was receiving a higher % and clipping the ticket. He e-mailed the NZRB with a copy of the above and said if you offer me the same deal I will continue to bet with you guys. The reply back was basically not interested. So a Company has the opportunity to shut out a middle man and consequently reduce leakage and return a better margin to an Industry it represents but choose not to, why? I would have sacked the person concerned not looking after the Industry that pays their salary on the spot. Yes very talented people working for the NZRB unfortunately its the racing Industry not the circus who employs them.    

I honestly think I would only reply no comment to the media in the future If i was you as that quote is usually only used in a murder interview but suitable in your position to use with an Industry so close to death. 

ps

I wonder who the incredible and talented person in your NZRB Senior Leadership team is who is sending your e-mails to the outside world?

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I have it on first hand authority that HQ is currently similar to a Fawlty Towers B & B. Basil is struggling, those that   have been loyal to him for many years through different organisations, are now feeling well out of their depth. There is, apparently,  also strong evidence to suggest that Sybil may have packed her bags.

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From 2018 statement of Intent The investment costs relating to the Fixed Odds Betting platform (FOB) initiative are expected to be $9.6 million in project expenses and $20.0 million in capital expenditure . That equals $29m which was the figure that the Platform was sold to the Industry so why the CEO states a completely different figure as the budget (millions more) is a worry. 

Have the Champagne on ice only a few months to go until huge changes take place :) 

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20 hours ago, LightsOut said:

From 2018 statement of Intent The investment costs relating to the Fixed Odds Betting platform (FOB) initiative are expected to be $9.6 million in project expenses and $20.0 million in capital expenditure . That equals $29m which was the figure that the Platform was sold to the Industry so why the CEO states a completely different figure as the budget (millions more) is a worry. 

Have the Champagne on ice only a few months to go until huge changes take place :) 

...if there is any industry left to 'save' ....

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Stakes may not even hold up and the distribution to sports may have to increase because that is where the growth is.

I do not understand how the codes, especially thoroughbred, have become so reliant on TAB handouts.

Any new structure must remedy that.

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2 hours ago, gubellini said:

Pam I have stated that we will still be running around for $10,000 at midweek races at the end of this year. I think I was wrong! I would say we will still be racing for that paltry amount at the end of 2021.

It had been touted by a few higher-profile people - before the sales,  note -  that stakes would double next season,  how on earth could those doing the spruiking  justify that claim?

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2 hours ago, gubellini said:

Pam I have stated that we will still be running around for $10,000 at midweek races at the end of this year. I think I was wrong! I would say we will still be racing for that paltry amount at the end of 2021.

If this great plan of Johns fails it may drop  back to $7500 .

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Are training fees being held artificially low therefore with any stakes increase will the dam burst and increase fees therefore no benefit for owner ? Obviously trainers and jock wil benefit with increased  stakes percentage .Are training fees slightly high at moment ? 3400 per month for syndicate horses seems a wee bit OTT  so should there be a meeting of price both ways to help the owner . I suppose if syndicates sell out why would they decrease.  

Just thing like a family an industry needs to examine all costs top to bottom when in financial strife , tons wasted and thrown away at top it appears . Living on cheques that cannot be honoured at moment IMHO.  Hope this saviour does appear for industry .Hopefully it isn't the three horseman arriving .

 

 

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Training fees ' a bit high ..'  are you serious?

Most trainers I know - apart from those in the top bracket - are chewing the paint off the walls...those that aren't may have family money,  properties etc which keeps the wolf from the door..but rest assured there is f all money made from training.

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Have to agree with Pam on this.

Training fees are far too low in NZ and for reasons I’ve never understood trainers have been subsidising Racing and owners for years ( unless they’re cutting corners and not feeding them properly ).

This is coming from a bloke with 7 in work too, if that matters.

To suggest trainers are charging too much does rather suggest you’re detached from reality RR.

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11 minutes ago, Pam Robson said:

Training fees ' a bit high ..'  are you serious?

Most trainers I know - apart from those in the top bracket - are chewing the paint off the walls...those that aren't may have family money,  properties etc which keeps the wolf from the door..but rest asured there is f all money made from training.

No Pam sorry I didn't assert they were high , I posed the question  are they low or high , I suspected a majority are in your position. Just thinking all along the chain how the ticket clip can get smaller, feed merchants , transport , admin anything thats a cost .If all cut to bone answer is nothing , if cut below bone once stakes rIse will dam break and fees explode .

3400 does seem high for syndicate horses to me,  Te Akau get results I doubt many others have had much black type wins this season and they charge same as best who are TA.

 

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7 minutes ago, poundforpound said:

Have to agree with Pam on this.

Training fees are far too low in NZ and for reasons I’ve never understood trainers have been subsidising Racing and owners for years ( unless they’re cutting corners and not feeding them properly ).

This is coming from a bloke with 7 in work too, if that matters.

To suggest trainers are charging too much does rather suggest you’re detached from reality RR.

Read first line of my post and question I posed. Are they being artificially kept low by trainers . I posed the question. I didn't say likes Pam overcharging or has areas that can be cut , I asked if dam will burst and fees increase . I still think 3400 pm for some of the syndicate prodders are bit steep. I guess most trainers cut it closer to bone . So in short I asked the question and am perfectly aware of financial hardship , probably seen more hardship at first hand that most thank you so reality detachment , no iam not.

 

 

 

 

 

 

 

 

 

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When it’s run 100% as a business and it’s all about money I can see why it’s pushing $3400.Being part of a syndicate that trains at a country course  the cost can be alot less  and the enjoyment just the same especially when you get to dent the odd reputation. Like anything pays to shop around and join a syndicate or trainer that mirrors your values or views. The highs are high and the lows are low so strap yourself in and enjoy the ride .

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1 hour ago, puha said:

When it’s run 100% as a business and it’s all about money I can see why it’s pushing $3400.Being part of a syndicate that trains at a country course  the cost can be alot less  and the enjoyment just the same especially when you get to dent the odd reputation. Like anything pays to shop around and join a syndicate or trainer that mirrors your values or views. The highs are high and the lows are low so strap yourself in and enjoy the ride .

I wonder where the 3400 goes during spelling but I've mentioned that before , but yes it's a fun ride at times and I've had some fun  over the years with not back breaking costs . My post has been taken as a dig at trainers charges across board but it was not meant to be at all  . My main point was the fact a lot of trainers charge at a very low margin to keep clients , once stakes go up will the release valve come off and that gobbles up the increase. Not saying it's right or wrong of it does , but if you get extra 1000 in stakemoney and fees are 1000 more the owner has stood still. 

 

 

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5 minutes ago, Red Rum said:

I wonder where the 3400 goes during spelling but I've mentioned that before , but yes it's a fun ride at times and I've had some fun  over the years with not back breaking costs . My post has been taken as a dig at trainers charges across board but it was not meant to be at all  . My main point was the fact a lot of trainers charge at a very low margin to keep clients , once stakes go up will the release valve come off and that gobbles up the increase. Not saying it's right or wrong of it does , but if you get extra 1000 in stakemoney and fees are 1000 more the owner has stood still. 

 

 

If they limit training to a few tracks and created a monopoly you could expect that .

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On 2/15/2019 at 12:31 AM, LightsOut said:

To: NZRB Senior Leadership team

Date: 14 February 2019

CLARIFICATION ON TODAY’S INFORMANT ARTICLE

Kia ora koutou,

Several of our people have been in touch with me today in relation to today's issue of the Informant and the article 'Wagering experience a key requirement for the TAB'. I know many of your teams will also have discussed the content today and it's clear the latest ramblings from their opinion writer (I think the writer has quoted ramblings but they are yours John) to have angered many of our people and with good reason (yes definitely the Industry is now finding out just how incompetent they are).

The article contains plenty of inaccuracies, fiction and critical comments (you have 1000's of customers critical of your new Platform you going to get comments reflecting that) about some of our people (yes possibly fiction about their previous employment). Quite frankly, much of what is written is absolute rubbish (ha I don't think so and when the place is cleaned out there is going to be some serious matters of concern raised).

The facts are clear. FOB was a huge undertaking - probably the biggest initiative ever embarked on by the NZRB. Sav, Dianna, Stephen and everyone else who worked on it did an outstanding (honestly get someone to buy you a dictionary so you can look up the meaning of the word as its been wrongly used in the context of your thinking)  job. It was delivered for $40.8m (and will actually come out less than that). The claim the all-up cost is '$50m plus' has absolutely no basis.

The new platform is working (yes it is poorly) and delivering results (yes $11,000,000 down in racing turnrover in the first 4 weeks). It is absolutely performing (please don't you listen to or read your customer complaints, I mean honestly are you are on the same planet ?). Any comparison to the Typhoon initiative seven years ago is ridiculous (Typhoon designed by clueless management and the new platform the same so its not rediculous the claim its history repeating itself). FOB is going to deliver increased distributions to the industry next year between $17m and $19m. This year we'll deliver an increased net profit on last year despite no contribution from the previously anticipated Racefields.

A recent comment by you in the media: We are budgeting for the new platform to deliver an additional $11.6 million of net profit in the 2018/19 financial year and an additional $17.4 million in 2019/20.Then this from the NZRB Statement Of Intent:  The impact to net profit in 2017/18 is a reduction of $7.1 million that reflects the investment required, primarily in FOB, which delivers an increase in net profit to close to $200 million in 2019/20 upon successful implementation. These are figures quoted as increases solely from the new Betting Platform nothing to do with income from Racefield Fees.   You saying what was quoted was rubbish, John your claims re doubling account holders and increased turnover due to 1,000's of more betting options was rubbish. 

The inappropriate comments (inappropriate? the only one getting touched up is the Racing Industry) about some of our team have annoyed many of our people but to get too worked up about them would be to give undue credibility to a baseless opinion piece from one person (do you honestly think one person has the opinion quoted, that's actually an insult to many people in the Industry) . I know many of our people have had enough (left out 'of us')and want us to take direct action. I understand this view and it is something we will have a hard look at.

In the interim, please ensure your people don't take what's written by one columnist to heart. We are lucky to have incredible and talented people delivering real results for the industry (f$#@ me). This is something we can't take for granted (by God you said above it was fiction what the writer reported yes well I think you were quoting the wrong person as far as fiction and fantasy goes).

Ngā mihi,

John

You were quoted last week as saying a few weeks after the Platform was launched ? “We did expect an early downturn of somewhere between six and eight weeks as a consequence of the change to the FOB platform and that’s based on the experience Sportsbet had for the system we have just put in,” Allen said. “We expect that will go on for at least the next couple of weeks. We are going to see both volatility in financial performance and a decline in turnover and that’s why getting some ‘sighters’ on the early performance of the sports betting is really positive (how positive is the early yield verse last year John) .” After 4 weeks racing turnover is down $11,000,000 and that is with approximately 1,500 more races for that period verse the same period last season (remember the Platform was sold to the Industry that more Options would increase turnover). Why wouldn't you advise the Industry that comment prior to the Launch, quite obviously because it never entered the NZRB's mind. It blew up in your face and your counter reasoning only makes you look more lost.

As for your so called talented people working for the Industry mmmm is that right so answer me this embarrassing question. You were on a committee to look into how to combat offshore betting leakage. A customer I know showed me correspondence from an offshore bookmaker who offered him 6% rebates on NZ tote win and place betting. Obviously the bookmaker was receiving a higher % and clipping the ticket. He e-mailed the NZRB with a copy of the above and said if you offer me the same deal I will continue to bet with you guys. The reply back was basically not interested. So a Company has the opportunity to shut out a middle man and consequently reduce leakage and return a better margin to an Industry it represents but choose not to, why? I would have sacked the person concerned not looking after the Industry that pays their salary on the spot. Yes very talented people working for the NZRB unfortunately its the racing Industry not the circus who employs them.    

I honestly think I would only reply no comment to the media in the future If i was you as that quote is usually only used in a murder interview but suitable in your position to use with an Industry so close to death. 

ps

I wonder who the incredible and talented person in your NZRB Senior Leadership team is who is sending your e-mails to the outside world?

Loving your work  Lights Out!!

These people "may " well be incredible and talented, but not in this industry!! 

Does your man J A go by the nick name of "The Cat"?If so has he used up all his lives?

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4 hours ago, Swoopa said:

Loving your work  Lights Out!!

These people "may " well be incredible and talented, but not in this industry!! 

Does your man J A go by the nick name of "The Cat"?If so has he used up all his lives?

It starts with the board. They approved the man and the salary.

All participants and supporters should have a vote for who gets on the board in that way ideas and agendas can be dissected in the open prior to any election. The number of votes a person has on a scale relevant to participation.

Maybe even before that some restructuring. Wagering NZ should be responsible for the mechanics of betting whereas media and marketing separated out and combined or linked with NZTR, HRNZ and GRNZ.

NZTR representing the clubs should have legal rights to run betting pools for NZ racing independant of the TAB. That way  local racing can use betting as a marketing tool. i.e. offering a prize e.g. a car on top of the pool. A way of competing against overseas bookies.

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The Minister For Racing ultimately decides who’s appointed to the NZRB.....including the three independent appointments 

As for NZTR having the rights to sell their own product / IP,  help me understand how the media would work, OB units, broadcasting to the global audience, and maybe most importantly, publication of fields etc. ....

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