Entain get a monopoly

[Hesi]

Putting some perspective into this

Entain had revenue in 2022/23 of approx 9 billion NZ dollars

As a percentage, the TAB had revenue equal to 4% of that

[brown fox]

Will the takeout percentage change for quaddies/trebles etc?

[Turny]

Indeed Hesi, the NZ TAB to Entain is pure petty cash.

Now figure the comitted intent on driving it to success, imho they will be ruthless ... the standard 80/20 rule to be applied, put another way instant decisions no discussion. I am not enthused at all

[Hesi]

58 minutes ago, brown fox said:

Will the takeout percentage change for quaddies/trebles etc?

Good question

The Punter's Promise

No deductions

Early payouts

Bonus bets 

are all staying

[Hesi]

1 hour ago, Turny said:

Indeed Hesi, the NZ TAB to Entain is pure petty cash.

Now figure the comitted intent on driving it to success, imho they will be ruthless ... the standard 80/20 rule to be applied, put another way instant decisions no discussion. I am not enthused at all

I disagree

The TAB will be another company/brand that Entain own.  They have a vested interest in ensuring all of them are profitable and growing revenue

[Turny]

12 minutes ago, Hesi said:

I disagree

The TAB will be another company/brand that Entain own.  They have a vested interest in ensuring all of them are profitable and growing revenue

Agree entirely Hesi, but in my experience the pathway they take will not be collaborative in any way. 

What we do not know is what the end goal is, imho given they are 100% on line it follows on line will be the only  logical port and logically an on line casino, possibly  the main aim with the new purchased vehicle, will ensue.

I suspect all of this will happen very quickly, possibly with a year .. maybe even less in time. I expect to witness significant early action.

One thing for sure, going forward with the past will simply not happen in any way ... failure upon failure not the basis of the purchase. That is business 101 of a business purchase.

We certainly needed something for sure, so will be very interesting to observe

Edited May 25, 2023 by Turny

[Hesi]

Entain have done the decent thing and agreed to a 2 year moratorium on staff redundancies, but after that there will be major streamlining of the operation in NZ, which was always the issue, excessive costs

[Turny]

Will be interesting to watch the purchase unfold, I have little doubt, in fact none, that it will all happen very quickly ... in the bigger picture the staff wages for 2 years is miniscule and the sinking lid response from staff will negate that contingency to a large extent. Thats how business purchases largely unfold having been involved in a few.

Interesting times for sure

Something simply had to happen, ie the sale of a failing business with little upside ... the 100% owner lost condidence before the ink on the bailout cheque had even dried

[Hesi]

Considering they waited 4 years before getting their A into G, and had to negotiate from a position of weakness, they are fortunate they got such a good deal, which many still are unable to grasp.

Entain put some good upfront money on the table, which they knew TAB NZ needed, and were happy to make a few concessions to make sure the deal went through, none of which were any big deal to them

[Turny]

The very point Hesi, summed up perfectly ... now the reality

[Maximus]

1 hour ago, Hesi said:

Considering they waited 4 years before getting their A into G, and had to negotiate from a position of weakness, they are fortunate they got such a good deal, which many still are unable to grasp.

Entain put some good upfront money on the table, which they knew TAB NZ needed, and were happy to make a few concessions to make sure the deal went through, none of which were any big deal to them

correct, my equally learned friend

IMO they Entain got the one thing that mattered ..control of the business with no competition via geoblocking; TAB got the one thing that mattered to them...a lifeline including money up front to retain continuity of existence/jobs/ promise of higher distributions. Only the Kiwi punter will lose (again) but at least we will have a sport/industry with a sustainable financial base going forward.

MM

[Hesi]

Geo blocking is far from a done deal, as it has to be passed into the statutes by whichever Govt or concoction thereof is in place after Oct 14.  Entain will understand that, even though they have put another 100 mil sweetener in the deal if geo blocking goes ahead

2 separate issues here, the deal and the geo blocking

[mardigras]

9 hours ago, vanturk said:

Yes maxi, but this govt have done a fair bit  to dampen peoples  spirits,  and racing  is never going to  be in the spotlight for them so they really had no choice? What's the alternative?  

Shut down racing in NZ. It's what should have happened already in my view. It's an unnecessary drain on money that would be better spent elsewhere. It's a tiny speck on NZ as an entity or as an employment group.

[vanturk]

30 minutes ago, mardigras said:

Shut down racing in NZ. It's what should have happened already in my view. It's an unnecessary drain on money that would be better spent elsewhere. It's a tiny speck on NZ as an entity or as an employment group.

Who you talking  about?

[curious]

1 hour ago, mardigras said:

Shut down racing in NZ. It's what should have happened already in my view. It's an unnecessary drain on money that would be better spent elsewhere. It's a tiny speck on NZ as an entity or as an employment group.

Looks like they are shutting it down. Greyhounds first to go.

[Globederby19]

10 hours ago, barryb said:

Agreed, I am staggered at those who think we could have just continued along the same path,

I was in no way suggesting we carry on down the same path, just reservations about the way this behemoth will operate . 

[Freda]

8 hours ago, curious said:

Looks like they are shutting it down. Greyhounds first to go.

Not yet, apparently.  Stay of execution until after the election, is how I read it.    They have had the knives out for a couple of years, God knows how they've survived but they have, so far.  No loss IMO, although others may see it differently.

[mardigras]

11 hours ago, vanturk said:

Who you talking  about?

The entire NZ Racing industry. The breeding industry can carry on without racing. This is just the government further endorsing another way of delivering a handout to NZ Racing. But for what purpose. NZ Racing is a bit player in NZ that simply does not justify the tax payer support from government.

Under the new deal, the majority of the money to the racing industry is still going to come from revenues generated outside of NZ racing - yet gifted to them.

I am a massive racing fan - but not to the detriment to the country as a whole.

[Hesi]

4 minutes ago, barryb said:

The thing is Mardi, truckloads of other farking dumb things get shit loads of Govt Money which should be forced to stand on there own 2 feet as well.

Talking of taxes its bloody time Religion & Maori Tribes started paying & not becoming rich at the expense of the rest of us.

I thought you and John Tamihere would be like peas in a pod Barry lol

[vanturk]

1 hour ago, mardigras said:

The entire NZ Racing industry. The breeding industry can carry on without racing. This is just the government further endorsing another way of delivering a handout to NZ Racing. But for what purpose. NZ Racing is a bit player in NZ that simply does not justify the tax payer support from government.

Under the new deal, the majority of the money to the racing industry is still going to come from revenues generated outside of NZ racing - yet gifted to them.

I am a massive racing fan - but not to the detriment to the country as a whole.

Obviously  you have a bee under the bonnet with nz racing.  Either way, the tab had to do something,  it  has been badly managed  in my view.  If you can get the story, look at the grandstand  they are proposing  for Caulfield 

[Maximus]

agree barryb...and just wait til (next week, ain't it?) when the fuel subsidy comes off and we begin a painful winter prior to a Spring election. Freight companies will pass on the 'higher cost' so expect all sorts of things to be dearer, which will drive inflation as will immigration. A Labour-led anything is not a pleasant prospect for this country unless you are a socialist/communist/dreamer looking for nanny State to pay your way in this world and tell you what you can/can't do.

MM

 

[Maximus]

13 hours ago, curious said:

Looks like they are shutting it down. Greyhounds first to go.

too many jobs at stake, significant export earner and part of Kiwi DNA, histiry/heirtage

just needs better financial model and management of assets,products services as outlined by Messara Report

 

MM

[Hesi]

2 hours ago, barryb said:

Piss off, the best news of the day is the poll out showing Labour is toast at the election. The budget was a joke & the public are waking up.

 

I thought it was better that the Maori Party had slipped to 2%.  God forbid if they hold the balance of power

[mardigras]

2 hours ago, vanturk said:

Obviously  you have a bee under the bonnet with nz racing.  Either way, the tab had to do something,  it  has been badly managed  in my view.  If you can get the story, look at the grandstand  they are proposing  for Caulfield 

I don't, outside of it being poorly run and a drain on the taxpayer.

Sometimes you have to take a realistic approach. Rather than me thinking of myself and what suits me - I prefer to think about what is best overall, and in this case, best overall for the country. More racing is great for me. But in this case, it is a poor decision for the country.

One of the issues is that there is no accountability. An organisation aimed at making money would have ditched racing years ago. The cost/benefits including social gains and losses simply don't stack up. 

I don't disagree that things have been poorly managed. Most of where we are now has been self inflicted - and supported by the majority of entities within racing as well. 

Some are just too self-centred, ill-informed or nostalgic - rather than being pragmatic.

[mardigras]

3 hours ago, barryb said:

The thing is Mardi, truckloads of other farking dumb things get shit loads of Govt Money which should be forced to stand on there own 2 feet as well.

Talking of taxes its bloody time Religion & Maori Tribes started paying & not becoming rich at the expense of the rest of us.

There are - and that doesn't make it right - and some of those things are like racing in that they are perpetually getting more but delivering less.