Big announcement

[pete]

Today New Zealand Thoroughbred Racing announced its funding for the 2023-24 racing season.     No images? Click here   NZTR announces $20.3 million dollar stakes increase NZTR has announced its funding for the 2023-24 racing season. The recent approval of the TAB NZ Entain strategic partnership has allowed NZTR to plan with certainty for the next five years and prioritise areas of the business to promote growth. The document that follows outlines in comprehensive detail key areas of funding for the upcoming season. At the top of this priority list is the enhancement to stakes funding. NZTR is thrilled to announce that stakes funding will increase by $20.3 million, taking our total stakes funding to $90.8 million for next season. As you will see from the information published in the document, this is spread across all categories and regions of racing. Further, it includes the introduction of eight new innovation races to the calendar, as well as further funding to the very successful Southern Mile. While we appreciate that stakes increases are hugely significant to the rejuvenation of this industry, NZTR Board and Management have also outlined key strategic priorities to be addressed over the next 12 to 36 months. These priorities identified by NZTR will continue to relentlessly improve the presentation and preparation of all facets of our industry which is paramount to improving wagering growth and will be maintained in key areas such as: Industry training and enhancing the welfare of our people and horses Enhancing track/surface performance for better racing outcomes Ensuring accountability for performance among clubs Achieving sustainable revenue growth Enhancing public relations to improve the image and reputation of the industry Also included is an explanation of the recent TAB NZ Entain strategic partnership and what it means to our industry, as well as answering a number of frequently asked questions surrounding the agreement. Today is the dawn of a new era for New Zealand’s Thoroughbred racing industry. We are committed and resolute to the fact that from this point forward, each and every one of us need to adopt a mentality of improved professionalism and standards across every part of the industry. We will only maximise this once-in-a-generation opportunity if we all understand that the way forward is to work together for the greater good of the industry. As we move forward, NZTR asks its participants to think of the legacy they want to leave for generations to come. This is our opportunity to lay the platform of improved professionalism and standards across the industry, licence holders, clubs, wagering partners and governance. We are all required to step up and put our best foot forward to regain the pride in this great industry that was held decades before us.

[pete]

TAB NZ Entain Strategic Funding Document_FINAL.pdf

[Hesi]

A few notes

1.  The increase in G1 prizemoney will total 1.26 mil

2.  Maidens up to 25K

3.  I note this in the Q&A's

TAB NZ is now a small statutory entity focusing on its remaining functions - delivering on its legislative obligations, monitoring and ensuring the regulatory and commercial performance of Entain, working with the Government on reforms to New Zealand’s online gambling laws (such as the legislative net), class 4 gaming responsibilities, and maintaining the Dates Committee.

TAB NZ is currently working on its operational and staffing requirements as it embeds into its new role, but it is clear it will be a small organisation with a modest budget moving forward.

[Maximus]

From a quick scan thru the big announcement it does look like steps in the right direction (ie for a sustainable sport/business).

But Max couldnt see anything specific about returning a dedicated Trackside Radio to the airwaves, imperative if they're serious about improving services to stakeholders and growing public interest/profile.

MM

[Turny]

Impressed with the stakes payouts, will help greatly.

Wait for the detail on how they will attract new race goers, remains the big issue getting punters involved. Big hurdle imho

[Hesi]

10 hours ago, Maximus said:

From a quick scan thru the big announcement it does look like steps in the right direction (ie for a sustainable sport/business).

Buy Max couldnt see anything specific about returning a dedicated Trackside Radio to the airwaves, imperative if they're serious about improving services to stakeholders and growing public interest/profile.

MM

For a start that is an NZTR document, so they can't really speak to something that would cover harness and dogs.  There is this in the release

Entain intends to invest in the TAB business to deliver a world class wagering offering to New Zealand customers. You can expect to see the results of this investment across the TAB’s operations, including in brand, retail, media and the TAB mobile and desktop application etc. As noted above, all opex and capex investment is at Entain’s cost.

You will note that in the agreement, Entain cover all capital and operating costs, so I would say they are looking at reinstituting radio and better media coverage of racing.  They have to.  If you look at the broad figures, everything is guaranteed in the first 5 years, but after that, to keep the funding at the same or increasing level, that have to grow wagering.  After 2 years there will be a huge chunk of costs gone, the very costs that the TAB NZ(Racing Board) incurred every year, and what lead to a very much lower that needed payout to the codes.  Remember it is a 50/50 Entain/payout to the codes and sporting deal now, so that wagering growth has to increase, to allow for Entain to take their 50% and the payout to increase each year after the first 5 years

 

[Maximus]

Yes..but nothing specific about Trackside Radio. If they have any nous they'll realise its importance to fuelling increased turnover and recruiting the next generations.

MM

[Hesi]

I've got news for you Maxi, the new generations coming through, don't listen to radio any more.  It's all about social media these days

You're acting like a dinosaur

[Hesi]

If you look at it in detail Barry, the amount of increase for the G1's is only 1.26 mil, which is about 6% of the total increase.  It can't compete with Aus, but remember we have just had a vintage 3 year old season, but other than the top 4 horses, the rest did not measure up at group level in Aus, so maybe connections will think twice about venturing across, as stakes and special races here increase in value

I note the Karaka Mil 4 year old race worth a mil, is not restricted to horses sold at Karaka

[Hesi]

The G1's were spread around this year though.  Te Akau won only 4 of the 20

That is the ugly side of capitalism.  I do all the grocery shopping, and I can assure you the price of many supermarket items has increased well above the level of inflation over the last 2 years.  The only thing I can't figure, who is pocketing, the manufacturers of the goods or the supermarkets

 

[Hesi]

I note this on Harness Racing NZ website, and nothing on the greyhound site

We are expecting a lift in support of around $6-7m for the season starting August 1, 2023. It's envisaged the majority of that money will go to increasing stakes for grassroots, mid-range and then Group racing, and we are working through the finer details of that.

"While we are aware that other racing codes are announcing specific stakes increases, we are not in that position yet and we will take our time to ensure we make decisions that are aligned to our strategic plan and are sustainable," says HRNZ's Chief Executive Gary Woodham.

[Maximus]

52 minutes ago, Hesi said:

The G1's were spread around this year though.  Te Akau won only 4 of the 20

That is the ugly side of capitalism.  I do all the grocery shopping, and I can assure you the price of many supermarket items has increased well above the level of inflation over the last 2 years.  The only thing I can't figure, who is pocketing, the manufacturers of the goods or the supermarkets

 

Both.

Max is the proud enslaved owner of 1 (only) cat whose tastes are expensive - Fancy Feast and Purina One bikkies. Six months ago, Poor Max could buy 10 small cans of Fancy Feast on special for $13 and the 'normal' per can price was around $1.50-$1.70 tops. Today they are $2.19-$2.49ea and hardly go on special.

Hrrmmpphh.

 

[Hesi]

46% on average, price increase

[curious]

13 hours ago, Maximus said:

From a quick scan thru the big announcement it does look like steps in the right direction (ie for a sustainable sport/business).

But Max couldnt see anything specific about returning a dedicated Trackside Radio to the airwaves, imperative if they're serious about improving services to stakeholders and growing public interest/profile.

MM

I don't think that has much to do with NZTR. That's Entain's business now. They've already said they want to add a 3rd trackside channel so I wouldn't be surprised if they are also considering adding or restoring other coverage such as radio. Give them a chance.

Edited June 16, 2023 by curious

[Maximus]

2 hours ago, barryb said:

I don't listen to the radio either.

Its total bullshit the group 1's are increasing, the rest of it looks like great ideas or makes good sense to me.

I respectfully disagree, and don't appreciate being called a dinosaur (Hesi) just because I want a 'dedicated to racing' radio channel in some form. Radio goes/ can go pretty much everywhere instantly and many radio stations broadcast via the Internet.

MM

[Hesi]

A nice dinosaur though

I still think you will find that radio as a medium is not the preferred option for the younger generation, that are the potential new market for racing

[Hesi]

The other interesting thing that has become clear with this announcement, is that the disconnect between what was the Racing Board/TAB NZ and the racing industry appears to be finally over.  Entain has made it clear with this and other communications, that they intend to build wagering growth by building the racing industry.  TAB NZ only ever promoted wagering, which only ever helped the racing industry by a potentially bigger payout, but there was huge disconnect between the 2

[karrotsishere]

41 minutes ago, Hesi said:

A nice dinosaur though

I still think you will find that radio as a medium is not the preferred option for the younger generation, that are the potential new market for racing

Yea exactly. Even who below 30 uses Twitter.

Even Facebook is for the older generations. 

Let alone radio. Get out the front door haha.

Edited June 16, 2023 by karrotsishere

[Hesi]

Just to clarify that above

Entain have signed an agreement that, for a start guarantees certain minimum levels of funding over the next 5 years, in addition to a whole range of other things, such as bonus races.

They are not doing that and going to sit back and watch racing in NZ be poorly run, and those funds squandered, so watch out NZTR.

You will note the new 4 year old Karaka Mil race is open to all horses, not just those sold at Karaka

[Hesi]

Yep, the younger people quickly got off Facebook, when they realised their Mums and Dads had accounts there lol

[Hesi]

If you took, what is the 1.26 mil extra to increase all G1's to 400K (work it out, I have), then if you assume there are 750 maiden races per year (I have no idea if this is correct or not), then that would only be an extra $1680 per race, hardly significant

[Hesi]

I can't stress this enough, Entain are making a big first up investment for 5 years in NZ racing, it will cost them a lot of money initially, and a hell of a lot more if racing is not put on a strong footing.  So they are going to have a big say in how racing is run in NZ.

 

[mooseman]

5 hours ago, Hesi said:

You're acting like a dinosaur

Dinosaurs are on trend and making a comeback Al!  ...iv'e got multiple transistors in every room of the house and in the Dino' cave too😊

[Maximus]

3 hours ago, Hesi said:

A nice dinosaur though

I still think you will find that radio as a medium is not the preferred option for the younger generation, that are the potential new market for racing

cor blimey, what about the current and oldie generation(s) the ones who have actually kept and will keep the industry alive? You know, the owners and breeders and punters. Not saying Social Media is nonsense,but if you want to cater to the people who have $$$ stake in the industry, radio is vital (even if they wanna access it online)

MM

[Globederby19]

5 hours ago, Hesi said:

The only thing I can't figure, who is pocketing, the manufacturers of the goods or the supermarkets

Surely with the duopoly we have in this country, it's the Supermarkets.