NZ Racing contribution to itself!

[mardigras]

Following on from a discussion elsewhere. Here is data from the 2017 and 2018 Annual Reports.

This is to describe the level of contribution made from NZ Racing revenues to NZ Racing stakes paid out. (Numbers are in $millions)

The blue numbers are estimates of the percentage of expenses related to NZ racing at the TAB. The red numbers are the overall effect of that % in regards how much of a contribution NZ Racing is making towards the stakes being paid out.

As can be seen - from 2017 to 2018, that contribution falls when comparing the 2018 red total with the 2017 red total (for the same NZ racing expense percentage). This trend has been going on for years. So who knows what that looks like now - the TAB decide to hide most of this information so it cannot be determined anymore.

Essentially, if the NZ racing share of the TAB expenses is at 50%, all stakes are being provided for NZ Racing, from activities outside of NZ Racing.

Even if the NZ Racing share was a low as 40% of the total expenses, in 2018, income derived from NZ racing would have contributed around 10% of the total stakes paid out.

Given I'd expect the NZ Racing % share of TAB expenses to be 45%+, the actual participants of NZ Racing are racing for money that is entirely being gifted to them from the NZ taxpayer. How nice. Maybe they should rename tab.org.nz to NZRacingSocialWelfareDepartment.org.nz?

 

Edited October 4, 2021 by mardigras

[Hesi]

Thanks, will digest later, just busy earning a living at the moment

[Hesi]

Thanks for that Mardi.  Looked at it several times, and got a headache trying to figure out, never mind.  For those that also tried, you are basically confirming what you said, in that the income off NZ racing only really covers pro rata costs, so very little left for stakes.

The income from pokies, sport and TAB betting on overseas races, without that, NZ racing could not exist.  How long will some of these exist, or sports for instance want a bigger share of the pie.

I note this week, that Ellerslie have announced that they are upping their input into stake money to $2 million.  While this is admirable, it is subsidisation, and will it do any good.  

[mardigras]

6 minutes ago, Hesi said:

Thanks for that Mardi.  Looked at it several times, and got a headache trying to figure out, never mind.  For those that also tried, you are basically confirming what you said, in that the income off NZ racing only really covers pro rata costs, so very little left for stakes.

The income from pokies, sport and TAB betting on overseas races, without that, NZ racing could not exist.  How long will some of these exist, or sports for instance want a bigger share of the pie.

I note this week, that Ellerslie have announced that they are upping their input into stake money to $2 million.  While this is admirable, it is subsidisation, and will it do any good.  

Yes, basically, the net revenue from NZ racing would cover the codes administration costs. It's like running a restaurant and having sufficient revenue from the restaurant to cover the admin costs, but none of the food. And expecting money from a bunch of other restaurants to prop you up because there isn't enough interest in your restaurant.