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The Race Place

20/21 Season Budget


Hesi

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4 questions 

1.  What will the revenue be(18/19 was 348 mil, made up of 273 net betting revenue, 29 pokies, 22 overseas and 24 other)

2.  What will be budgeted costs(18/19 was 211 mil, made up of 69 variable, 142 fixed)

3.  What will stakemoney be for

G1, G2, G3 and Listed, Maidens, R65, 72, 82, Open.... in general comments welcome.

4.  How much will the government have to bail out RITA

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I ran a few figs, very quickly

                                             2018/19              2020/21 Budget

Turnover                            348 mil                  244 mil (30% drop)

Fixed Costs                         69                            55 (20% reduction)

Variable Costs                  142                         100(30% reduction in line with the drop in turnover)

Nett profit before           137                           89                                                                                                                                                       distributions

18/19 total distributions of 160 mil(81 mil to Thoroughbred) and on top of this 6.7 for the RIU and 14 mil to Sports

I stopped after that, as I was getting a headache

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9 minutes ago, Hesi said:

I ran a few figs, very quickly

                                             2018/19              2020/21 Budget

Turnover                            348 mil                  244 mil (30% drop)

Fixed Costs                         69                            55 (20% reduction)

Variable Costs                  142                         100(30% reduction in line with the drop in turnover)

Nett profit before           137                           89                                                                                                                                                       distributions

18/19 total distributions of 160 mil(81 mil to Thoroughbred) and on top of this 6.7 for the RIU and 14 mil to Sports

I stopped after that, as I was getting a headache

If you took 4 mil off the 89 for the RIU and 10mil(30% less) for Sports, you end up with 75 mil.

If you pro rata the 18/19 distributions, thoroughbred(53.6%) gets 40 mil

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37 minutes ago, Hesi said:

I ran a few figs, very quickly

                                             2018/19              2020/21 Budget

Turnover                            348 mil                  300 mil (15% drop)

Fixed Costs                         69                            60 (15% reduction)

Variable Costs                  142                         125 (12% reduction )

Government subsidy                                      

Nett profit before           137                           120                                                                                                                                                       distributions

18/19 total distributions of 160 mil(81 mil to Thoroughbred) and on top of this 6.7 for the RIU and 14 mil to Sports

I stopped after that, as I was getting a headache

My numbers in bold. So 5 mil integrity, 57 mil NZTR, government handout 30 mil (50% to gallops) = 72 mil to NZTR. Just a guess of course. 10% down??

Edited by mardigras
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1 hour ago, mardigras said:

The 5 million was wage subsidy. The 30 million was what the government gives extra due to the pleading (hopefully not), but alas I wouldn't be surprised.

Surely the Govt is not going to give out anything, unless RITA presents a budget that balances, that would be ludicrous.

Any handouts, would be to square off how much in hock they are from previous years, and to be politically acceptable, it will have to be fudged somehow

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8 hours ago, Hesi said:

Surely the Govt is not going to give out anything, unless RITA presents a budget that balances, that would be ludicrous.

Any handouts, would be to square off how much in hock they are from previous years, and to be politically acceptable, it will have to be fudged somehow

We've seen it in the past. I'm not sure the government is entirely accountable for what it does. The industry will be pleading that without a handout, if say there is only 90 - 120m in the pot, that will not be enough to keep racing going. It is, but that's not what they will be saying.

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  • 2 weeks later...
On 5/3/2020 at 9:33 PM, mardigras said:

The 5 million was wage subsidy. The 30 million was what the government gives extra due to the pleading (hopefully not), but alas I wouldn't be surprised.

Shit - even my $30m was conservative.

$26m out of the $72.5m to pay off debts. When does it end?

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At least RITA is doing its best to claw back some much needed profit. Doing things like putting retired horses into their future markets like the Caulfield Cup/Melbourne Cup is a pretty handy way.

I thought they had a policy of refunding bets on non-nominated runners - but I couldn't find that in the betting rules, and it states it on some futures markets, but not those events. (TABCORP refunds if not nominated for the CC/MC)

Nice RITA, let's hope you snare some mugs out there by getting a few $$$ bet on any horses that are retired. Mind you, pretty shitty odds for a retired runner.

(Youngstar is the horse - so I'd suggest that you don't back it).

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In retrospect, surprising and fundamentally wrong as it was to many, but Peters had to arrange that bail out. Racing going down the gurgler on his watch, not likely.

Can someone explain what would have happened had he not got the money so they could pay 26 mil of debts due on Friday

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12 minutes ago, Hesi said:

Can someone explain what would have happened had he not got the money so they could pay 26 mil of debts due on Friday

I think curious would have had to put more than a few bob on Youngstar to win the Caulfield or Melbourne Cups - maybe $26 million would have worked.

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On 5/3/2020 at 3:23 PM, Hesi said:

I ran a few figs, very quickly

                                             2018/19              

Turnover                            348 mil                  

Hong Kong tote exceeds that within two meetings 

Back in the early eighties they had 20k day at Pukekohe roll on almost 40 years and you’re about to have 15k dollar days

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9 minutes ago, Maximus said:

true, VC, they did, but that stat is a tad misleading when taken out of context. The $20k days (which went up within a few years to $30,000 if I remember rightly) were the exception not the rule, and were marketed accordingly, bringing in large crowds to Pukekohe racecourse to see top horses racing. Great value for your punting dollar if you could find a winner on the day! Owners, trainers, jockeys, breeders, punters all happy ...was it all a dream?

MM

 

3o k day correct, and most fields were  so full of quality that the fave was paying $7

Tote that is, before the days of FO

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10 minutes ago, Maximus said:

true, VC, they did, but that stat is a tad misleading when taken out of context. The $20k days (which went up within a few years to $30,000 if I remember rightly) were the exception not the rule, and were marketed accordingly, bringing in large crowds to Pukekohe racecourse to see top horses racing. Great value for your punting dollar if you could find a winner on the day! Owners, trainers, jockeys, breeders, punters all happy ...was it all a dream?

MM

 

It was a great initiative, great Raceday, 

Unfortunately NZ racing is now finished

Sports betting will become the number #1 betting product in NZ the dinosaur’s are slowly becoming extinct and the new breed are coming through

NBA 20/20 cricket tennis premier league League Union AFL Golf  UFC this is what is heavily promoted on TV this is what the youth are interested in

As for NZ Racing what was I reading 20 meetings covered by media game over!!!!

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Those were superb days. You might not have backed too many winners because of the depth of the fields but you knew that if you picked a couple on the day you'd probably be in profit.

The other day that used to be an absolute highlight for me was Avondale Cup Day. Top fields and the Cup was always chockful of quality.

I used to go up to the Concorde Lounge on the day. Great views and great racing.

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Saw both of those races

I went to Uni with a guy called Richard Kidd, who ultimately took out an owner/trainer licence.  He owned Lurk, who got 2nd I think in the Avondale Cup one year

Horse

thoroughbred-green.png

LURK 

NZ

Lurk is a thoroughbred horse born in New Zealand in 1987. Race horse Lurk is by Standaan (FR) out of Jirob (NZ) , trained by T P Bita. Lurk form is available here. Owned by T P Bita & R J Kidd.

About the horse

Description 32yo B Gelding
Trainer T P Bita
Owner T P Bita & R J Kidd
PM Australia : AUD $7,850
New Zealand : NZD $9,500
Total PM AUD $17,350
Career 10 Wins (15%) - 14 Placings (37%) - 65 starts
Wins 1400m (1), 1600m (3), 2000m (2), 2100m (1), 2200m (3)
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