Chief Stipe

Mr Allen must be a busy busy man at the moment. He is also Chair of the New Zealand Police Assurance and Risk Committee. Start joining the dots......Glenda Hughes..... I wonder what his advice has been on supporting IWI road blocks? Or the legality of arresting people on beaches? I would expect him to have some knowledge as he was a former partner of Rudd Watts & Stone, specialising in commercial and public policy issues, John is a graduate of Victoria University of Wellington and was a visiting Lecturer in Law at the University.

McKenzie has very little control over NZTR. He should look closer to home first i.e. his own Senior Management. As for the RIU - RITA and each of the codes have a 25% shareholding of the RIU Limited. So it isn't McKenzie's decision alone. If I was Godber I'd be afraid as he has the responsibility at the RIU.

Aside from the fact that the above is a Stuff article that has been re-edited since first being published e.g. unless my memory has further degraded in the last few days I'm sure the first release mentioned 70 contractors as part of the 30%. Points to note: Hendry was bought in from MFAT by the previous CEO - John Allen. So he has been on board at NZRB/RITA for about 5 years. It has taken a crisis for him to work out that they have too many staff! Really? You didn't work that out in the last 5 years? You kept borrowing dosh though. "Efficient and more commercially focused business" - where on your CV is that experience? MFAT? ".....we invested in critical improvements across our business in recent years with major technology and broadcast enhancements and a new betting platform." I'd argue that the critical improvements you invested in weren't critical nor improvements! "...major technology and broadcast enhancements and a new betting platform." What is becoming apparent now is that the technology and broadcast enhancements were expensive "Rolls Royce" versions. To be expected given your arrived from a Government department (MFAT) known for its excesses. Wasn't Winston the Minister at one stage? Spark (Telecom) saw you coming. I guess you are hooked into expensive telco contracts for 5 years? As for the new betting platform. No comment. "...deliver new revenue streams, was at a critical juncture, before being inevitably delayed.” Porkies! Porkies! The Racefields Legislation that you obliquely refer to was delayed BEFORE Covid-19. Anyhow the "new revenue streams" were grossly overstated! Don't you read DIA reports? Yes and your unrestrained largesse over the previous 5 years will screw the very heart of New Zealand racing - the provinces. Thank God for Aussie racing! "...no returns from our gaming business." The Pokies. Most of that revenue went to the RIU either directly (NZRB/RITA) or via the other shareholders - NZTR, HRNZ and GRNZ. As the RIU is a Limited Liability company are you going to put it on the market? Slash staff? "It will require change in how we present racing, how we sell bets, where we sell bets..." Goodbye the last of the agencies.

Susan Edmunds 16:44, May 06 2020 Punters have been limited to Australian racing and 'sports like table tennis from Eastern Europe'. Trustworthy, accurate and reliable news stories are more important now than ever. Support our newsrooms by making a contribution. The TAB is planning to reduce its workforce by 30 per cent as it responds to the impact of Covid-19. That is believed to represent about 160 jobs. An email was sent to staff from Stephen Hendry, chief operating officer, which said the organisation had developed a proposal to “rescope” the TAB. “We are battling an extraordinary world pandemic that has had far-reaching consequences," he wrote. "Regrettably, for the TAB, that requires a high level of change to ensure we can come out of this and be sustainable for many years to come. It will mean we will need to be a leaner, more efficient and more commercially focused business, with about 30 per cent less roles.” The Racing Industry Transition Agency, which operates the TAB, claimed $4.075 million in wage subsidies for 595 employees. Hendry said the Covid-19 outbreak had happened at a time when the business and industry was vulnerable. “As you know, we invested in critical improvements across our business in recent years with major technology and broadcast enhancements and a new betting platform. And the programme of Government-led transformation, which will deliver new revenue streams, was at a critical juncture, before being inevitably delayed.” The Racing Industry Transition Agency, which operates the TAB, claimed $4.075 million in wage subsidies for 595 employees. Since mid-March, punters had only been able to access Australian racing and “sports like table tennis from Eastern Europe”, he said. “Our monthly revenue during Covid-19 is 47 per cent less than forecast and customer numbers are down more than 35 per cent; with betting on sport down about 75 per cent compared to pre-Covid-19. And there have been no returns from our gaming business. “We also predict revenue next year will be down considerably with domestic racing getting back slowly and at fewer venues, uncertainty around the return of quality domestic and international sport and reduced spending by many New Zealanders.” He said while the organisation was grateful for the sacrifices made by staff so far, it was not enough to offset the blow. “The changes proposed will affect every part of our business. It will require changes in the work we do and how we resource our business. It will require change in how we present racing, how we sell bets, where we sell bets and how our corporate office functions support the rest of the business.” Staff were told they would be invited to a meeting on Monday where the proposals would be outlined. Hendry said it was planned that the new structure would be effective from June 22. “We also want to share with you options to consider that will reduce costs and may work for your situation. These options, voluntary redundancy and voluntary unpaid leave, are entirely voluntary and will be available for you to express interest in, right up until the closing date for consultation. More information of these options is attached.” The Racing Industry Transition Agency has been approached for comment.

24 days and counting.

I know that Mardigras - you have drummed that into readers for ages. However what we also know is that the Revenue from the Gross Fixed Odds turnover stream is on a percentage basis a lot less than the Revenue from the Gross Tote Odds pool. Excuse the pun but the revenue from the Tote Pool is Fixed as a percentage. We also know that it costs more to provide Fixed Odds than it does the Tote.

Isn't it a bit like REBATES for the little people? Must cost IF it doesn't entice people to LOSE more of THEIR money. I guess it might get the pathological gambler to bet more. At the end of the day bonus bets do COST the TAB. I doubt that they return a profit and I haven't seen any evidence to the contrary. Still waiting for Agent54's explanation on how they work. Ultimately they are promoting further leakage from the Tote to Fixed Odds. What we do know is that the % of revenue from Tote turnover is a lot greater than the turnover from Fixed Odds. We also know that not only is the revenue generated by Fixed Odds is less on a percentage of turnover basis but also has much higher costs. Even if the odds are auto generated as we are led to believe with this new computer system. Which also raises the point that the reason RITA is in shit creek (in private enterprise terms - INSOLVENT) is they spent $50-$70m+ of hard earned or borrowed on a system that provides more Fixed Odds options! Go figure! I've said this many many times - why is it that the General Manager of Betting & Product, presumably the architect of the above, continues to keep his job? Will be interesting to see if he is one of the 230 that goes or one of the 530 that stays. He (they) keep killing the Golden Goose - the Tote.

Not correct Mardigras. One type of bonus bet was where they would put $10 or more in your account as a bonus bet. Obviously you couldn't remove it as cash well not straight away. You then place a fixed odds bet using the $10 bonus. For example Winx is paying $5 for a win. If you used your own money NOT the bonus you would get $50 back if it wins. If you used the bonus they subtract the $10 and you get $40. They do this when you place the bet. The other bonus you get is when you deposit $30 or more of fresh money into your account and they top up with $20 or more of bonus money. The trick with the top up is to use their money to reclaim the $30 in winnings i.e. withdraw the $30 from the $20 bonus winnings and keep playing with their money. End result no advantage TAB.

Still will have 530 staff.

What about the Ministry of Primary Industries (MPI)?! 3,000 Employees. $300m yearly salary bill! Yes that's an average of $100,000!

Once again thank you for your comprehensive response. I know there is no takeout rate on Fixed Odds betting. What I do know is that there is a profit or loss on a book. We do know that the tote is more profitable than fixed odds in terms of revenue. The revenue i.e. profit from fixed odds BEFORE costs is substantially less than the tote. From what we can with the minimal information that we are now getting is that bonus bets haven't done anything to improve the fixed odds profitability. As Mardigras points out NZRB/RITA's betting product management is fixated on turnover NOT revenue.

Thanks for your detailed and well thought out reply. I used an average takeout rate NOT specifically a tote takeout. At the end of the day someone pays. The only way the TAB wins is if those that get the bonus bets are perpetual losers and because of the incentive bet more than they would normally. No one has yet showed how they make a profit out of the promotions.

Yes but they may still need to anchor off shore.

Ok. Just shows you don't need to do much to keep them fit enough to be a couple of weeks away from a jump out! Take note Huey.

Funded by the Wellington City Council ratepayer and the Greater Wellington Regional Council which is funded by the Wellington City Council which is funded by their ratepayers...... But it isn't all bad....one of their successes from their annual report is securing "The World Crustacean Conference in 2022 of 200 delegates." I hope they aren't arriving by sea.

I didn't realise that there were exemptions to the NZTR/MPI protocol? Obviously safer to work on your "home" track than the "public" track next door.

The big difference is Freda that their financials look better than ours in terms of ratios like debt to assets! They are an incorporated public listed company and have statutory reporting obligations. They produced a half yearly report for the half year to the end of January 2020 yesterday. PHUMELELA_int_jan20.pdf

Can you read an annual report? The costs they are talking about reducing are peanuts in the overall scheme of things. Does radio trackside really cost that much to broadcast? They are simulcasting the TV audio so they haven't saved any broadcast costs other than staff.... Well they haven't really done that even - one would think that Radio Trackside staff were on the payroll and the Covid-19 staff has been claimed for them so they are still paying 80% of their salaries anyway! Smoke and mirrors! What about the BS that they are saving costs by racing only at courses that have "optic fibre" installed? That's none other than a red herring to justify the hidden agenda of closing down clubs that are not part of the master plan.

Thats been my base case for months and is being addressed, but unlikely to satisfy all participants Nearly 11 months in and RITA has so far done ZERO to address the issue. If it was so apparent to the Minister and presumably his handpicked RITA crew - why is it taking so long? Peter's talks with forked tongue anyway. What "number of years" is he referring to? Surely not the period 2005 to 2008 when he was Minister for Racing - remember the $10m+ he dished out for $1m Iconic races? Wasn't that an example of "living beyond our means"? 2017 to 2020 - um what has he done? Created a new agency which is nothing more than the old NZRB in drag. Which according to you doesn't have to report to the Minister or Industry in the same fashion as previously. Still waiting for that half-yearly report.

Phumelela Gang announced need for financial relief. By James Stevens/Racing Post Today, 4:18 PM The group which operates the majority of racecourses in South Africa warned on Monday it was facing bankruptcy as it emerged the sport's shutdown could extend for a further four weeks, despite earlier plans for a resumption from last Friday. Phumelela Gaming, which operates tracks including Turffontein and Vaal and provides pool betting services, released interim results that referenced a "dire situation" for horse racing in the country and outlined its need for financial relief. That situation has been compounded by the ongoing shutdown of South African racing, which missed an intended return on Friday and now faces an extended wait before resuming action. South Africa went into the fourth stage of lockdown last week—at which point it was believed racing would be permitted to continue—but the National Horseracing Authority (NHA) now expects the government's green light will only come in the next stage of the country's coronavirus response. The Racing Post understands the NHA believes that will come in around three to four weeks' time, at which point they will request the sport's resumption again. This confusion meant Turffontein's three group 1 races, the Horse Chestnut Stakes and South African Derby and Oaks, were rescheduled from last Saturday to Sunday, May 10, but are now unlikely to go ahead unless there is a U-turn on resumption from the government. There are fears that the races may be taken off the 2020 calendar completely. Patrick Davis, racing executive, said: "We had provisionally rescheduled the SA Derby, SA Oaks and Horse Chestnut Stakes from 2 May to 10 May—but given the likely scenario that we're still not permitted to resume by then, further discussions within the industry will need to take place around the Pattern races this year. "We've already delayed the Pattern by a month in the hope that we might be able to resume within that time frame and run these important races in a constricted season, but it'll be back to the drawing board if we can't and it may well be that certain Pattern races will have to be canceled this year if they are unable to fit into a further constricted time period. It's a work in progress." On Monday the country's major racecourse group Phumelela revealed its losses for the six month period that ended January 31 increased to R115.1 million (£4.96 million), from R61.4 million (£2.64 million) at the same point last year. They may now file for voluntary liquidation. A statement from the group read: "At the date of this results announcement the prospects for horse-racing, other sports events and betting are uncertain and the board is in no position to provide reliable guidance. "The group is operating under onerous conditions, much of which is beyond its influence. Phumelela seeks further negotiations with the broader horse racing community to find a resolution to the dire situation in horse racing and agree commercially sustainable solutions. "The group remains engaged in discussions aimed at raising capital. Should these discussions not prove conclusive soon, the board will have to decide on whether there is any reasonable prospect that the Group's business can be rescued, or whether to make application for voluntary liquidation. "The board's current view is that even if financial relief can be obtained, a relief package should be negotiated as part of a business rescue plan. The board will make an announcement in this regard in the near future."

Yes I tend to agree with that statement. Because of the harsh Level 4 restrictions over 5 weeks or so and then the dithering before an announcement about a calendar this season was basically shot. What racing we do see before 1 August 2020 won't actually be a show case of NZ racing.

Wooh ease up there Mardigras. Lies? I suppose it's not too much to ask that we get back on topic?

What about the Levin jumpouts? Good enough to obtain a barrier certificate.

They've been doing it for years. Has got more prevalent as the volume of trials and jumpouts has reduced. I've always wondered what it does to a horse's confidence.

It'll have blinkers on.