Chief Stipe

The biggest loan is a revolving credit facility which expires early next year. The exact terms are not clear in the accounts but they are paying commercial interest rates.

So what actions would they have taken WITHOUT Covid-19?

I don't believe so. Their excess mortality is 27% due to Covid-19. You'll find as time goes on that % will drop or even become negative as vulnerable people have died sooner.

That's why we haven't seen the half yearly report. It was clearly evident in the last annual report that RITA was insolvent. Remember it was from the data in that report that the insolvency stories were based on. January 2020!

Poor old Winston rolled out that garbage about the loss of raceday revenue from abandonments. RITA and NZTR budgeted for abandonments because they didn't have enough cash to pay the stakes! Hence the lack of thought that went into plan B options.

I'd post it for you Rusty but this keyboard warrior needs a rest. Wish the pub was open.

I have done some research and have posted it. It is you that hasn't countered with anything of substance.

Make that 2 and half days. According to Winston the big bills are due Friday.

Welcome to the new world order in NZ: COVID_19 Public Health Response Bill-v5.4.pdf

Sorry you will have to elucidate a bit more - which point did you disagree with?

They didn't die FROM Covid-19 they died WITH Covid-19. They all had comorbidities that they were dying from anyway. Most were late stage dementia patients. Late stage dementia patients largely die from respiratory infections. Essentially the brain forgets to tell the lungs to breathe properly.

Obviously your answer is to lock us down until there is a vaccine?

I wish that was the case but unfortunately it will be to get their creditors off their back.

That might be turnover but certainly not revenue. Even the DIA and RITA are in agreement about it not being "a few hundred million" in revenue.

My apologies for replying to my own post...but what the hell! Winston should hold an inquiry into these transactions. I bet many of you didn't know that NZRB/RITA was involved in setting up a NEW broadcast company - it was called NZ Live and operated initially out of a building owned by Windsor Park Stud in Parnell Auckland. NZRB/RITA provided loan guarantees to set it up. NZRB/RITA also bought the broadcasting equipment e.g. cameras, outside broadcast vans. An arrangement was made where this equipment was sold to NZ Live and NZRB/RITA entered into a 10 year lease back arrangement. Now NZ Live was subsequently onsold to NEP Group Inc. a company whose head office is in Pittsburgh, Pennsylvania USA. The local holding company NEP Broadcast Services New Zealand Limited is owned by Australians. As far as I know in Australia NEP doesn't broadcast horse racing but predominantly ball sports. Guess who their largest (if not only) customer is in New Zealand? Yep....NZRB/RITA. Check out more on their website https://www.nepgroup.co.nz/ Oh and if you are in Auckland kill two birds with one stone and visit both RITA and NEP. It's easy as they are in the same building at 60 Stanley Street, Parnell, Auckland. Don't forget these are the dudes that are dictating which tracks can be the first to open.

As Harness supporters - what is the equivalent in synthetic track capital that your part of the industry will be getting?

If you read RITA's news releases you will find that they have already done a deal with Ladbrokes and other bookies..... So I don't know where they extra dosh is coming from when RITA says they have "deals with 80% of the bookies."

Correct. Insolvent is the term he used. They would not be able to pay their committments. I've posted those on the Gallops forum.

The export earners are primarily the breeders. Note Winston mentioned the "planeload of horses that went out this week." No doubt Australia and Hong Kong bound. Racing gets shyte all from that. I don't know where you get the figure of "a few hundred million gaming income from." That is the worst assumption made for the basis of the Racefields Legislation.

I'm picking that much of the $50m will go to resolve this problem:

Join the dots on this finance lease for their broadcasting equipment....they lent the money for NZ Live to setup (now called NEP Group) in a building owned by Windsor Park. They then effectively paid for the equipment - sold it to NZ Live (only a book transaction) then leased it back making it an operating expense. A TEN year contract!

Non-cancellable contracts?! Any contract is cancellable if you negotiate the penalties! Any movement on these?

Has RITA called in their loans?

It's now been revealed $30 million of contingency funding in the Provincial Growth Fund has been earmarked for the coalition government pet projects and the racing industry is set to benefit. Regional Economic Development Minister Shane Jones said the money set aside is at the upper limit of what he expects will be needed. The projects, which include a Dunedin centre of digital excellence, the Te Hiku Sports Hub in Kaitaia and several all-weather tracks for the horse racing industry, all came out of coalition talks between Labour and NZ First. Dated: 23 August 2018 https://www.rnz.co.nz/news/political/364721/racing-industry-to-get-govt-funding-for-multiple-all-weather-tracks No I don't agree it is NEW if the $20m for the synthetic tracks is included in the $72m. Winston had no option but to bail out RITA - they are insolvent! Where in my post did I play the man? Don't be conned by the smoke and mirrors.