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Bit Of A Yarn

TAB Problems - ENTAIN's solution - bring it inhouse!


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36 minutes ago, mikeynz said:

I suspect Entain are a bit naive about the state of play, they spend and spend, but for how long ?

Maybe they are looking to monopolise the other big wagering brand in NZ - the All Blacks.  It is head in the sand stuff for any of the racing partners in this arrangement to not address the fundamentals of making wagering on NZ Racing profitable.  I've seen enough over the last 3 decades of the marketing hype and the fundamental issues not being addressed.

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1 hour ago, Chief Stipe said:

Thoroughbred Racing's SOLE source of revenue is from WAGERING! (License fees are nickel and dimes by comparison).  If you outsource the acquisition of your SOLE source of REVENUE then you need to manage that relationship from a position of knowlege NOT ignorance.  Otherwise it isn't a partnership!!!  What makes it worse now is there are THREE entities involved - ENTAIN, TABNZ and NZTR!!

Just like we smiled for all the Winston taxpayer "gifts"over the years - the $1m races, the new AWT's (that no one really wants), the $56m bailout of the insolvent TAB.  Ask yourself this question if NZTR, TABNZ and ENTAIN are on the same page and have a mutal understanding with regard to wagering what happens in 5 years time when ENTAIN aren't making enough profit to maintain the current largesse?

Very little of the windfall is going where it should be going instead it is being spent on novelty races that screw the pattern.  The majority of the trainers, clubs, owner and jockeys aren't getting sniff of it!  What's the bet the big novelty races start getting raided by the big Ozzie trainers under the guise of having bought a yearling at Karaka?

NZTR didn't outsource the wagering, the TAB did. Different entities, different CEOs, different remits. Do you blame the TAB if there is an issue with a track, or an licensed trainer or jockey - NO because that NZTRs remit, like Wagering and its platforms for wagering is the TAB's

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7 hours ago, Tiger Tiger said:

NZTR didn't outsource the wagering, the TAB did. Different entities, different CEOs, different remits. Do you blame the TAB if there is an issue with a track, or an licensed trainer or jockey - NO because that NZTRs remit, like Wagering and its platforms for wagering is the TAB's

FFS NZTR's revenue comes from wagering.  If you outsource that and have no idea about it then well you are destined to get right royally walked over and lose your shirt.

What's worse is now NZTR has a middleman clipping the ticket!!!  

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If I was CEO and I had one customer (ENTAIN) that provided all my revenue I'd want to know absolutely everything about their business.  I'd also want to know how to make their business more profitable because I win if it is.

Now if Sharrock doesn't want to learn he should either step down or let go of his sport agency and learn.

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I stand to be corrected,  but....Entain isn't the 'customer'  as I understand things,  the punter is, you, me, BGP, anyone who has a bet.

So, while Entain throws money around,  it is NZTR which has to deal with their crap tracks, silly programming, poor riding,  and if they don't,  Entains 50% take after 4 and a half years will have us in the poo again.

We don't have to know how to make their business more profitable,  we have to make ours less of a joke. 

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1 hour ago, Freda said:

I stand to be corrected,  but....Entain isn't the 'customer'  as I understand things,  the punter is, you, me, BGP, anyone who has a bet.

NZTR are disconnected from the Customer.  They have only one.  ENTAIN has the relationship with every punter.

1 hour ago, Freda said:

We don't have to know how to make their business more profitable,  we have to make ours less of a joke. 

You are contradicting yourself.

1 hour ago, Freda said:

So, while Entain throws money around,  it is NZTR which has to deal with their crap tracks, silly programming, poor riding,  and if they don't,  Entains 50% take after 4 and a half years will have us in the poo again.

If NZTR don't understand the relationship between all the stuff they are directly responsible for and wagering then yes racing will be still in the shit.

NZTR's CEO saying he doesn't understand wagering nor IT doesn't bode well.

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NZTR are out of their depth big time. NZ Racing, NZTR/TAB is being played, short term gains, long term pain and yes it is totally unacceptable for a CEO  to play the raw prawn and pretend all things IT are above his ken. To be successful a CEO has to understand an immense amount of diverse information which is why most of us, myself included, specialise. Last Saturdays IT malfunction is totally unacceptable as is the woefully weak response from NZ executives. We need much better.  

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On 21/02/2024 at 9:05 AM, mikeynz said:

I suspect Entain are a bit naive about the state of play, they spend and spend, but for how long ?

Not naive.  They will spend a bit up front but in the long run, like any private investor, will take out much more which will be at NZ racings expense.  I understand that the deal is that for 5 years the returns are guaranteed but after that the rot will set in

Edited by Mark D
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12 minutes ago, Mark D said:

Not naive.  They will spend a bit up front but in the long run, like any private investor, will take out much more which will be at NZ racings expense.  I understand that the deal is that for 5 years the returns are guaranteed but after that the rot will set in

The returns to the industry are guaranteed but profits for ENTAIN are not guaranteed.  I don't really see much being done that is different to the past except larger amounts being thrown at stakes so how will profits increase?  We know that there is an inverse relationship between higher stakes at elite level and wagering profits!

What really worries me is that the pattern is getting further skewed (screwed) and it is undermining the very thing that made the NZ bred horse successful.  NSW are going down the same path and cracks are starting to appear.  The bias towards horses of the year in the age categories will become further skewed towards those horses that win the sweepstake races NOT necessarily the best horses racing.

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32 minutes ago, Chief Stipe said:

The returns to the industry are guaranteed but profits for ENTAIN are not guaranteed.  I don't really see much being done that is different to the past except larger amounts being thrown at stakes so how will profits increase?  We know that there is an inverse relationship between higher stakes at elite level and wagering profits!

 

It's keeping the big mouths from moaning about stakes and exiting stage left , thats about all its intended to do.

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3 hours ago, Chief Stipe said:

The returns to the industry are guaranteed but profits for ENTAIN are not guaranteed.  I don't really see much being done that is different to the past except larger amounts being thrown at stakes so how will profits increase?  We know that there is an inverse relationship between higher stakes at elite level and wagering profits!

What really worries me is that the pattern is getting further skewed (screwed) and it is undermining the very thing that made the NZ bred horse successful.  NSW are going down the same path and cracks are starting to appear.  The bias towards horses of the year in the age categories will become further skewed towards those horses that win the sweepstake races NOT necessarily the best horses racing.

Naive Chief.  There are plenty more ways to get revenue out of a company than simply a profit share.  Charging more costs from Entain to whatever the NZ entity is would be a simple way

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16 minutes ago, Mark D said:

Naive Chief.  There are plenty more ways to get revenue out of a company than simply a profit share.  Charging more costs from Entain to whatever the NZ entity is would be a simple way

Who's naive?  ENTAIN can't charge more costs to TABNZ - they have guaranteed a net revenue for 5 years.  What could they possibly charge TABNZ for in the next years?  However McKenzie did push TABNZ costs out to the three code administrations e.g. marketing.

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As I've mentioned before I talking about after the 5 year period ends.  Still there are all sorts of possibilities depending on structures and whether TAB NZ tax exemption continues into the new structure etc etc.  If I could be bothered I'd take a deep dive I would but I can't.  The NZ racing industry gets what they deserve.

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