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The Race Place

Observations on Aus Racing


Hesi

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5 minutes ago, ngakonui grass said:

Rogerson says that Winnie is the best Minister that racings ever had.

He must be right given his tipping ability of his own horses.

I'm not even sure why we have a minister for racing. Minister for sport - sure. For racing?

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1 hour ago, Hesi said:

Yes agree, but imagine if Saundry put together a budget and arrangement like that for the thoroughbred industry, the knives would be out for him, especially that lot at Ellerslie

Were they not ring fencing the racefields fees for infrastructure?

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1 hour ago, curious said:

Oh no. Maybe that was the betting duty savings.

I don't think they [ NZTR ]   can ring-fence anything.  They are dependant on Rita [ which hasn't got any spare dosh ]  to survive. Apart from the [ excessive IMO ] charges for trialling, registrations, licence fees, etc,  there isn't any money to be had.

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28 minutes ago, Hesi said:

Turnover related expenses are 142 mil. let's say 12 mil/month.  So if turnover drops 50% for April/May/June, then they should have saved 18 mil

Just a thought

Not wanting to be picky - but the turnover related expenses were $69 mil (that was operating expenses that were $142 mil).So if you saved 50% for those 3 months, that's say $8m in reduced turnover related expenses. However, some of those turnover related expenses is for racefield fees for betting on Australian racing - which has likely increased (or stayed the same), and also commingling fees (which will likely be higher since all the commingling turnover has been one sided). Those two items alone are half the turnover expenses. 

So to save the $8m, most of the other costs will need to have been around $0. for the 3 months. And many might be close to that, but we are only in late May, so promotion/retail fees etc will be resuming even if at lower levels, and possible payments to sporting organisations (NRL) will be kicking in.

So instead of $17m for the three months, maybe they would be only $11m, saving $6m.

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2 minutes ago, Hesi said:

Sorry my mistake

It's ok, the thought was good - in regards there would be some reduction in costs associated with the reduction in income. I don't understand how they claim to be in such a poor position. According to a report I read which said for the first three months of the racing year, they were ahead of all their budget numbers.

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10 minutes ago, mardigras said:

It's ok, the thought was good - in regards there would be some reduction in costs associated with the reduction in income. I don't understand how they claim to be in such a poor position. According to a report I read which said for the first three months of the racing year, they were ahead of all their budget numbers.

They were in the first quarter. https://www.rita.org.nz/sites/default/files/RITA 2019 Quarterly Update 1 (3).pdf

 

Edited by curious
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15 minutes ago, curious said:

They were in the first quarter. https://www.rita.org.nz/industry-information

Right, so if we take what they've said about betting etc.

We get

$33m profit quarter1

$33m? profit quarter2 (higher interest period and Melbourne Cup)

$5.5m profit quarter3 (net betting revenue halved say from $75m to $37.5m. $6m saving in turnover related expenses. Approx $32m

$4m wage subsidy

$50m govt injection (the debt doesn't come into that as it was already part of their operation)

$20m profit quarter4 (revenue down $15m to $55m. Expenses down $3m to $35m)

Available for distribution $145.5m. Similar to last year.

Edited by mardigras
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