Hesi Posted June 17, 2023 Share Posted June 17, 2023 A lot of the usual suspects saying it can't work etc etc Just a few back of the envelope scribblings 1. Current situation was, 340 mil Net betting revenue 200 mil costs 140 mil payout to codes Costs made up of 80 mil turnover related, 120 mil operating expenses, that include 41 mil staff costs. All of these costs will be taken over by Entain. After that the only costs will be that of running TAB NZ, which has been said will become a very modest statutory body 2. Guaranteed payout to the codes over the next 5 years, 170, 175, 180, 185, 200 mil, this in addition to the upfront one off payment 3. So let's look at year 3 and say 380 mil net betting revenue(have assumed a modest increase from 340 to 380) 20 mil costs to run TAB NZ, as a modest statutory body only 180 mil pay out to codes 180 mil to Entain, from which they cover all costs of running wagering in NZ Quote Link to comment Share on other sites More sharing options...
Hesi Posted June 20, 2023 Author Share Posted June 20, 2023 All these people with such uninformed opinions It should be pretty obvious, that the Strategic Funding Document from NZTR was put together with a lot of input from Entain, and probably conditional on the deal going ahead. Where the money should go, the bonus races, all based on where Entain thought it would bring the biggest increase in wagering and most likely to grow racing in NZ. All based on a huge wealth of experience in other countries. The 4 yo race will be called the Entain/TAB Stakes The alternative used to be NZ TAB handing the money over to the codes, and not really giving a f... about how they spent it Quote Link to comment Share on other sites More sharing options...
curious Posted June 21, 2023 Share Posted June 21, 2023 3 hours ago, Hesi said: All these people with such uninformed opinions It should be pretty obvious, that the Strategic Funding Document from NZTR was put together with a lot of input from Entain, and probably conditional on the deal going ahead. Where the money should go, the bonus races, all based on where Entain thought it would bring the biggest increase in wagering and most likely to grow racing in NZ. All based on a huge wealth of experience in other countries. The 4 yo race will be called the Entain/TAB Stakes The alternative used to be NZ TAB handing the money over to the codes, and not really giving a f... about how they spent it Really? You can't be serious. Quote Link to comment Share on other sites More sharing options...
Hesi Posted June 21, 2023 Author Share Posted June 21, 2023 Why not Entain are not going to make much out of this deal initially, remember they have to cover the costs of the TAB out of their 50%, until they get it all sorted, and that is 2 years when it comes to the 41 mil of staff costs. Do you think they are going to leave it all up to NZTR to decide how to spend the money. This was one of the problems in the past, the disconnect the money generator and the money user. Why would anyone want that to continue Quote Link to comment Share on other sites More sharing options...
Hesi Posted June 21, 2023 Author Share Posted June 21, 2023 It also is likely to be less than 50% for Entain for a while, as they have guaranteed payouts to the codes for 5 years of $170 mil increasing. And as mentioned above, they have to cover the operating costs of the TAB out of that, until they streamline them Quote Link to comment Share on other sites More sharing options...
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