Messara Report

[Hesi]

It was specifically stated in the report, that unless Reco 7(below), was implemented, the other recommendations were a waste of time.

Does anyone know if any progress was or is being made, as the report was formally accepted by Cabinet

7. Begin negotiations for the outsourcing of the TAB’s commercial activities to an international wagering operator, to gain the significant advantages of scale.

[mardigras]

9 hours ago, Hesi said:

It was specifically stated in the report, that unless Reco 7(below), was implemented, the other recommendations were a waste of time.

Does anyone know if any progress was or is being made, as the report was formally accepted by Cabinet

7. Begin negotiations for the outsourcing of the TAB’s commercial activities to an international wagering operator, to gain the significant advantages of scale.

TAB NZ is the final state of the betting provider in NZ. I don't think point 7 is a good one. It should have been sell the betting operation in its entirety, include various SLAs etc, and remove the TAB role.

From what was released as the final part of the Bill.

24. The desired future-state post-reforms would see a sustainable racing industry established wherein:

24.1 RITA’s functions are devolved to TAB NZ and the racing codes;

24.2 TAB NZ is established as the sole commercial betting operator in New Zealand for racing and sports - providing world-class betting products that enable it to remain competitive;

Given the recommendation is listed as 'non-legislative', that suggests that TAB NZ could outsource some commercial activities to a different operator, but that the betting operator as such would still be TAB NZ. That may have significant issues for any off-shore provider. If TABCORP was the intended target from Messara, it is possible that their own systems won't simply plug into NZ. Account management functions and betting through their systems may not cope with multiple currencies - or there may well be other operational issues.

So outsourcing some aspects of the business may require the outsourcee to undertake massive work to deliver to the contract. Selling the business as a going concern allows a would be buyer to continue operations with current infrastructure whilst at the same time extending their own solutions to meet the needs of NZ. To eventually gain the advantage of scale/overhead reduction.

Along with issues around branding etc - there won't be any advantage of scale if TAB NZ still delivers an overseeing role which will come at a cost reducing the effectiveness of a single business running NZ operations along with their other operations. 

I'd expect it would be a very lengthy process to negotiate and implement point 7 by way of outsourcing. One year? Probably more like two or three.

[slam dunk]

Clubs should not sign off on any TAB monopoly. TAB should have nothing to do with oncourse betting instead new technology virtually off the shelve means clubs can run pools including at at fixed odds all at little cost.

This means clubs can work in with sponsors wheras sponsors products form part of the prize pool. Good example being the cars clubs like Otaki offered some years ago.

The TAB should be an enterprize that offers betting on everything and if it means amalgamating with offshore agencies then let that be a business decision but leave open options for clubs.

[mardigras]

42 minutes ago, slam dunk said:

Clubs should not sign off on any TAB monopoly. TAB should have nothing to do with oncourse betting instead new technology virtually off the shelve means clubs can run pools including at at fixed odds all at little cost.

This means clubs can work in with sponsors wheras sponsors products form part of the prize pool. Good example being the cars clubs like Otaki offered some years ago.

The TAB should be an enterprize that offers betting on everything and if it means amalgamating with offshore agencies then let that be a business decision but leave open options for clubs.

I think under the legislation, that is not possible unless the final part of the legislation doesn't go ahead. That legislation states that TAB NZ will be the ONLY betting operator in NZ (well legal one anyway).

If clubs weren't happy with that idea, they should have been active in trying to prevent it.

Edited November 7, 2021 by mardigras

[slam dunk]

4 hours ago, mardigras said:

I think under the legislation, that is not possible unless the final part of the legislation doesn't go ahead. That legislation states that TAB NZ will be the ONLY betting operator in NZ (well legal one anyway).

If clubs weren't happy with that idea, they should have been active in trying to prevent it.

Thats the problem. Those getting on club committees etc haven't got the acumen to think outside the square except with their own businesses.

[mardigras]

2 minutes ago, slam dunk said:

Thats the problem. Those getting on club committees etc haven't got the acumen to think outside the square except with their own businesses.

I think the problem is well beyond that. NZ administrators can't think beyond a very limited scope. Most of the decisions made (including those at club/NZTR level) have been ill thought out and sadly, stupid. Expecting clubs to think for themselves would be drawing a long bow.

[Hesi]

That comes back to what I have always said was the No1 reason Racing slipped below the horizon in NZ

Marketing and promotion, each club doing their own, amateurish, probably only Ellerslie have the expertise to do it, and mostly it is centered on promotion.

They should have had a levy on every dollar wagered in NZ, that goes to a separate marketing budget, that is used by professional marketeers in all the multimedia formats, to build and promote a nationwide branding.  Just like they have done with Lotto.

That way, they could have kept the concept of horse racing in front of the public and new generations.

NZTR don't even have a marketing budget, if they do, it is peanuts.

I'm talking 5 mil plus/year, each and every year

[slam dunk]

17 hours ago, Hesi said:

That comes back to what I have always said was the No1 reason Racing slipped below the horizon in NZ

Marketing and promotion, each club doing their own, amateurish, probably only Ellerslie have the expertise to do it, and mostly it is centered on promotion.

They should have had a levy on every dollar wagered in NZ, that goes to a separate marketing budget, that is used by professional marketeers in all the multimedia formats, to build and promote a nationwide branding.  Just like they have done with Lotto.

That way, they could have kept the concept of horse racing in front of the public and new generations.

NZTR don't even have a marketing budget, if they do, it is peanuts.

I'm talking 5 mil plus/year, each and every year

Its all very well putting effort into marketing but if you don't know what your function is you don't see the whole picture.

From NZTR website..."New Zealand Thoroughbred Racing Inc (NZTR) is the governing body of the thoroughbred code in New Zealand. Essentially it supplies the thoroughbred product for wagering and sporting customers and is ‘captain of the team’ for the thoroughbred code."

 So there you have it. It's all about the participants in racing. What about the infrastructure  viz. the racetracks and all the non racing activities on those locations. There needs to be another organisation combining all the clubs to maximize the commercial side whilst minimizing the costs.

 

 

[Hesi]

I'm not sure how to explain it

NZTR don't drive the industry, they just administer it, mainly with money they get from TAB NZ or whatever it is called nowadays.  Racing in NZ is splintered, and that is their weakness

Zespri as an example, drive their industry.  2018/19 Marketing spend was 161 mil