Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 40 minutes ago, mardigras said: You've got more faith in that than I. I think the money will run out again, and the hands will be put out. To what extent should we accept, that RITA inherited a lemon from previous NZRB regimes, and therefore have some faith in the RITA management team, that in time, they can put in place sustainable practises Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 12, 2020 Share Posted May 12, 2020 5 minutes ago, Hesi said: To what extent should we accept, that RITA inherited a lemon from previous NZRB regimes, and therefore have some faith in the RITA management team, that in time, they can put in place sustainable practises I would have more faith, if the communication from them, and the evident actions was suggestive of an approach that was different to the past. So why no communication or releases around staff being culled/other expenses culled due to the need to make the organisation like a commercial enterprise focused on profit? Like we have seen since Covid? I smell a rat and the aroma is unpleasant. Quote Link to comment Share on other sites More sharing options...
curious Posted May 12, 2020 Share Posted May 12, 2020 1 hour ago, mardigras said: I see our advocate for things like moving the guineas races North is for once making a little bit of sense. "If I understand Winston correctly it looks as if they will introduce to ring fence and stop betting with overseas agencies. ( can someone give Mardigras aka Kim a lift to the airport." As above, if they introduced such a policy, I would do one of my three options above. Luckily for me, I can do all 3 of them easily - even number 2, as I am an Australian citizen. Only problem I see, is that I fail to see where this will benefit NZ and the local racing industry. Perhaps ATA is keen to keep stakes low. Same options apply if they bring in a PoC tax for mine. Quote Link to comment Share on other sites More sharing options...
Sandpiper Posted May 12, 2020 Share Posted May 12, 2020 5 hours ago, mardigras said: You've got more faith in that than I. I think the money will run out again, and the hands will be put out. Inevitable and the talk of future recapitalisation started approx 10 seconds after the bailout, from the same mouth!! 1 Quote Link to comment Share on other sites More sharing options...
Sandpiper Posted May 12, 2020 Share Posted May 12, 2020 6 hours ago, mardigras said: I like the idea of returning to things like Castlepoint races as being the 'norm'. The job cuts indicated etc are just superficial and in the aim of presenting the façade that something is happening (imo), and is why none of this had happened pre-covid. There has been no cost/benefit analysis done by RITA - if there had been, they would have chosen to shut the operation down - since none of what they do has cost/benefits that are justifiable (as evidenced by being insolvent). RITA doesn't do them, and neither did NZRB. Which is why we ended up with Commingling, Fixed Odds and a new betting platform delivering nothing. It's easy to claim that RITA inherited this mess - and they did. But after inheriting it, they've been delivering in exactly the same fashion. Anyone defending their efforts, is a supporter of individuals or similar - and unable to form an unbiased opinion. And now tax-payers are coming to the rescue - again. To further support the notion of no accountability - safe in the knowledge that the government can be hoodwinked again for more money. Those with the skills needed (i.e. from overseas) to make a go of operating NZ betting systems have already shown how easy it is to tickle the soft underbelly. Why get involved in administration when you can clip the ticket 17 million p.a!! Bottom line, hard to see how NZ racing can be offered as an internationally comparable attractive betting proposition. I have always thought if training and racing could be centralised to two regions with an awesome AWT each we could build a good product but that's not culturally possible. We have to field proper group racing not the worse-every-year fare thats been the story the past 10+ years. If you have a product then you can promote it and grow revenue. Cutting hunks of flesh out of it and hoping for growth is an odd gameplan. 2 Quote Link to comment Share on other sites More sharing options...
Maximus Posted May 12, 2020 Share Posted May 12, 2020 (edited) I am no defender of RITA;however, I can see that the current insolvency would not have happened - at least not so quickly - without Covid/lockdown turning off the turnover. The same happened to many other businesses, including Air New Zealand, only 52% part-owned by taxpayers but bailed-out for good reason. (If Jacinda had allowed racing to operate like Australia as an essential industry Through Level 4 lockdown, RITA would probbabbly have survived until the new revenue streams kicked in financially). BUT we mustn't let RITA off the hook. The legislation of serious reform - ie Messara Report recommendations - have to be implemented as swiftly as practicable. They were due to be passed into law by 30 June. DIA now have to 'fast-track' (- get a moooove on!) with the new framework for gambling revenue. They'd better get it right ad make it happen quickly, because it wont take long in this environment for owners and breeders to lose heart, lose all hope, and stop. I take the view that we should not waste a good crisis. Wipe the slate clean (as much as possible), and start again by addressing the core issues that caused this misery - including poor leadership and governance from overpaid decision-makers who were not accountable. We can make NZ racing great again; it starts with the quality of our bloodstock, and that is still there, and continues to prove itself on the world stage. Look at the investment made by the Lindsays into Cambridge Stud. We need to re-engage new generations of Kiwis, by making them as proud of our racing heritage as they are of our All Blacks; and we need to treat owners and punters with real respect by offering a racing/wagering product that is worth it. (End of Mustelid rave.) Edited May 12, 2020 by Maximus 1 Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 The other aspects about RITA, that do not inspire confidence Did they ever publish updates on where they were with outsourcing the commercial operation of the TAB, we still do not know to this day, do we? Did they ever do any cost benefit analysis across the whole organisation with a view to reducing costs, until Covid forced it upon them. Now they are cutting stuff that makes no sense. I mentioned I was involved in a cost cutting exercise at a large company. The No 1 criteria was, the quality of the product cannot be reduced in any way Of the 17 reco's in the Messara report, they tackled almost as a priority, the most contentious one, the transfer of land and assets. Not a great way to get the industry onside with you 2 Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 27 minutes ago, Maximus said: I am no defender of RITA;however, I can see that the current insolvency would not have happened - at least not so quickly - without Covid/lockdown turning off the turnover. The same happened to many other businesses, including Air New Zealand, part-owed by taxpayers and therefore bailed-out for good reason. (If Jacinda had allowed racing to operate like Australia as an essential industry Through Level 4 lockdown, RITA would probbabbly have survived until the new revenue streams kicked in financially). BUT we mustn't let RITA off the hook. The legislation of serious reform - ie Messara Report recommendations - have to be implemented as swiftly as practicable. They were due to be passed into law by 30 June. DIA now have to 'fast-track' (- get a moooove on!) with the new framework for gambling revenue. They'd better get it right ad make it happen quickly, because it wont take long in this environment for owners and breeders to lose heart, lose all hope, and stop. I take the view that we should not waste a good crisis. Wipe the slate clean (as much as possible), and start again by addressing the core issues that caused this misery - including poor leadership and governance from overpaid decision-makers who were not accountable. We can make NZ racing great again; it starts with the quality of our bloodstock, and that is still there, and continues to prove itself on the world stage. Look at the investment made by the Lindsays into Cambridge Stud. We need to re-engage new generations of Kiwis, by making them as proud of our racing heritage as they are of our All Blacks; and we need to treat owners and punters with real respect by offering a racing/wagering product that is worth it. (End of Mustelid rave.) Like your confidence Maxi, but it is going to take a truly inspirational leader to do that, and I can't think of anyone Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 12, 2020 Share Posted May 12, 2020 31 minutes ago, Maximus said: BUT we mustn't let RITA off the hook. The legislation of serious reform - ie Messara Report recommendations - have to be implemented as swiftly as practicable. They were due to be passed into law by 30 June. DIA now have to 'fast-track' (- get a moooove on!) with the new framework for gambling revenue. They'd better get it right ad make it happen quickly, because it wont take long in this environment for owners and breeders to lose heart, lose all hope, and stop. What do we do if/when the Messara Report recommendations don't change the distributable profit significantly? 1 1 Quote Link to comment Share on other sites More sharing options...
Maximus Posted May 12, 2020 Share Posted May 12, 2020 14 minutes ago, Hesi said: Like your confidence Maxi, but it is going to take a truly inspirational leader to do that, and I can't think of anyone I'm not sure it's confidence, Hesi...it's an attitude that the product quality is still there, so we CAN fix the problems within the RACING side of the industry. How do we make our politician behave like their Ozzie counterparts, who (nearly) all support racing cos it gets them votes cos their constituents like and value racing? Your average Kiwi these days sees it as either pretentious hob-nobbing with the rich and the wannabes, or sinful gambling and shady characters and race-fixing. We need to sell our industry to our own population, educate them about how highly regarded we are internationally ...the skills and success of our jockeys, trainers, our LOVE and care for the horse. Get racing back on free-to-air TV. Etc etc End of Mustelid rave #2 Quote Link to comment Share on other sites More sharing options...
curious Posted May 12, 2020 Share Posted May 12, 2020 1 hour ago, Hesi said: The other aspects about RITA, that do not inspire confidence Did they ever publish updates on where they were with outsourcing the commercial operation of the TAB, we still do not know to this day, do we? Yes McKenzie said they wouldn't be looking at that for 4 or 5 years. Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 12, 2020 Author Share Posted May 12, 2020 ??? Yet this was one of the cornerstones of the Messara Report , in being able to achieve a doubling of stake money Quote Link to comment Share on other sites More sharing options...
Freda Posted May 12, 2020 Share Posted May 12, 2020 43 minutes ago, curious said: Yes McKenzie said they wouldn't be looking at that for 4 or 5 years. FFs.... Quote Link to comment Share on other sites More sharing options...
curious Posted May 12, 2020 Share Posted May 12, 2020 8 minutes ago, Hesi said: ??? Yet this was one of the cornerstones of the Messara Report , in being able to achieve a doubling of stake money It was the essence of it. Quote Link to comment Share on other sites More sharing options...
curious Posted May 12, 2020 Share Posted May 12, 2020 Peters also said, I think at Karaka, that out sourcing was not a foregone conclusion. Quote Link to comment Share on other sites More sharing options...
curious Posted May 12, 2020 Share Posted May 12, 2020 10 minutes ago, Freda said: FFs.... It might be the the only option now though. Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 13, 2020 Author Share Posted May 13, 2020 9 minutes ago, curious said: Peters also said, I think at Karaka, that out sourcing was not a foregone conclusion. Getting too strange for me McKenzie puts it in the deferred basket Peters effectively undermines it, then turns around and blames the industry for not pulling together Peters seems very intent on this transfer of assets aspect of Messara and the synthetic tracks, neither of which will help in the short term What's missing here? Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 13, 2020 Author Share Posted May 13, 2020 On top of that, they rubbish and dismiss the 2017 Deloitte Report Quote Link to comment Share on other sites More sharing options...
mardigras Posted May 13, 2020 Share Posted May 13, 2020 11 minutes ago, barryb said: https://www.racing.com/news/2020-05-13/rsn-44m-package-assures-rv-stakes It's good - and note that this is a Covid support package - whereby the state government already has massive amounts of revenue from the racing industry. In NZ, they get $72.5m from a base level of sfa revenue. 2 Quote Link to comment Share on other sites More sharing options...
Hesi Posted May 13, 2020 Author Share Posted May 13, 2020 So bearing in mind the 18/19 costs were 211 mil, what level would keep the industry happy and an indication it's leaders were serious about addressing costs. I'll go for 150 mil Quote Link to comment Share on other sites More sharing options...
mardigras Posted January 11, 2022 Share Posted January 11, 2022 On 5/13/2020 at 7:38 PM, Hesi said: So bearing in mind the 18/19 costs were 211 mil, what level would keep the industry happy and an indication it's leaders were serious about addressing costs. I'll go for 150 mil Annual report for last year has it at $194m. If you take the net profit from 2006, adjust it for the levy changes that are in place now, and apply the CPI adjustment from the Reserve Bank calculator, you get a net profit higher than what was achieved last year. That's without the $30m net betting revenue from Pokies. And approximately $75m extra net betting revenue from sports betting (based on net betting revenue margins on the $138m sport turnover in 2006 versus $773m in 2021. In 2006, the vast majority of income came from NZ racing. In 2021, a small percentage. (Less than 15% of the total NZ TAB turnover on NZ gallops). Quote Link to comment Share on other sites More sharing options...
Maximus Posted January 11, 2022 Share Posted January 11, 2022 interesting update from Mr De Lore http://www.theoptimist.site/ Quote Link to comment Share on other sites More sharing options...
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