hesi Posted November 30, 2018 Share Posted November 30, 2018 And they're off: It's a new start for thoroughbred industry, says racing and breeding veteran 1 Dec, 2018 5:00am 9 minutes to read David Ellis pictured in 2012 at one of his regular haunts - the Karaka yearling sales. Photo / Richard Robinson By: Andrea Fox Business Reporter, NZ Herald andrea.fox@nzherald.co.nz The sun is coming out on New Zealand's near-$1 billion thoroughbred racing industry, out in the cold so long that one of its most successful businesses, David Ellis' Te Akau Racing, came within a nose of going overseas. The dominant New Zealand buyer at the annual Karaka yearling sales for many years, outlaying more than $80 million, Ellis says he came close to moving his nearly 40-year- old racing and syndication business, which spans the Waikato, Australia and Singapore. "We were so disappointed in the prize money and the Government's take, take, take," says the racehorse buyer, owner, breeder and bloodstock consultant. "Big clients wanted us to take our business to NSW and Victoria, and 18 months ago we were very close to it." But last year the thoroughbred industry found itself with a Beehive champion with real clout - coalition kingmaker and big racing fan, NZ First leader Winston Peters. As Minister of Racing, Peters wasted no time in alerting Kiwis to the perilous state of the racing and bloodstock breeding industry. Part of his deal for forming a Government with Labour was that the Provincial Growth Fund would stump up the money for three new all-weather racetracks – expected to cost about $30m in total – and this year he announced new tax rules for depreciation, to promote investment in thoroughbred breeding. Now there is light at the end of the tunnel, says Ellis, who is also principal of Te Akau Stud, a picturesque 1600 hectare horse, beef and sheep spread on the Waikato's west coast. Combined, the Te Akau Stud farming operation – which is made up of multiple adjoining properties and hosts up to 150 horses – and the New Zealand and overseas racing stables pull in annual revenue of more than $30m. Ellis reckons Peters' policies will spawn a doubling of prize money in the next year, rejuvenating interest in racing and breeding. Importantly, he says, breeders will be able to afford much-needed new international bloodlines. Total prize money for the thoroughbred racing code last year was just over $59m, according to NZ Thoroughbred Racing. It would have been "a huge loss" to New Zealand if Ellis had decamped, says former Auckland Racing Club chief executive Cameron George, now chief executive of The Warriors. "The industry can't afford to lose someone like David Ellis and his knowledge, professionalism and expertise," says George. "He's so passionate about the New Zealand racing industry and he not only demonstrates that domestically, but he's very vocal about it internationally." New Zealand Bloodstock managing director Andrew Seabrook says no one has done more for the industry here than Ellis when it comes to buying young horses, "on spec really", and drawing new people into the sport of kings by selling shares through syndication. "What he's done for the New Zealand industry is quite incredible. It would be a lot poorer without him." But now, Ellis is staying put. The punters, he says, are already responding to the new mood of optimism. "My wife Karyn and I have syndicated 57 horses in the past 11 months and we have over 155 new first-time owners and 800 investors. Horses have never sold so quickly. "There's a lot of interest in racing – [Auckland's] Soul Bar told me [last month's] Melbourne Cup day lunch was their most packed ever and Ellerslie had a great day. New Zealand Cup day at Riccarton was sold out." Ellis says former Finance Minister Bill English "certainly didn't get it" when it comes to the thrill and pageantry of racing and its "beautiful animals". "He was against gambling but he still gave $38m to the Rugby World Cup and he watched the final. There was way more gambled on that than on any race meeting in the history of New Zealand. "It's called the sport of kings, but it's been anything but in New Zealand. The racing industry is an important contributor to the economy and a huge employer of young people – just in our little business, we employ 85 people full time. "And we take a lot of tax from those people for the Government. We pay a fortune in GST, also collected for the Government. "Over the years, all Governments have done with racing is take, take, take." "Bad management" by the Racing Board has also contributed to the industry's slide over the past decade, he says. This is forceful talk for Ellis, widely considered a humble, warm and thoroughly genuine chap. He has a horror of being thought a braggart, or anything more than a cog in the Te Akau machine. Asked why there has been such strong interest in buying shares in Te Akau horses this year, and why the business has been successful, he says it's "probably" due to the stable's string of premiership race wins in New Zealand, Australia and Singapore. Immediately, he forbids the interviewer from making him sound "all I, I, I" or "showing off". But the fact is that horses Ellis has purchased have won more than 150 stakes races and he can claim more than 40 Group One race winners. Horses he has bought for syndication include Maroofity, Warhorse and War Affair, which were champion 2-year-olds in New Zealand and Singapore; Princess Coup and Darci Brahma, champion 2-year-old, champion 3-year-old and champion sprinter/miler - and that's to name only a few. Quote Link to comment Share on other sites More sharing options...
Boxie Posted November 30, 2018 Share Posted November 30, 2018 Poor old David doesn't realise that he is part of the problem! 5 1 Quote Link to comment Share on other sites More sharing options...
mardigras Posted November 30, 2018 Share Posted November 30, 2018 Dreaming. What a load of bollocks about tax to the government. The racing industry (as opposed to the breeding industry) are small employers, small contributors and I think many industries employ people and pay tax without getting handouts back to the level NZ racing does. Just ignorance. 2 Quote Link to comment Share on other sites More sharing options...
Dark Beau Posted November 30, 2018 Share Posted November 30, 2018 27 minutes ago, mardigras said: Dreaming. What a load of bollocks about tax to the government. The racing industry (as opposed to the breeding industry) are small employers, small contributors and I think many industries employ people and pay tax without getting handouts back to the level NZ racing does. Just ignorance. I think you are dreaming. What crap you write. 2 Quote Link to comment Share on other sites More sharing options...
Thomass Posted November 30, 2018 Share Posted November 30, 2018 30 minutes ago, mardigras said: Dreaming. What a load of bollocks about tax to the government. The racing industry (as opposed to the breeding industry) are small employers, small contributors and I think many industries employ people and pay tax without getting handouts back to the level NZ racing does. Just ignorance. Anyone who thinks the racing/breeding industries aren't interconnected is pig ignorant...but you do that well Give Davo an email or tingle..and tell him how wrong he is Quote Link to comment Share on other sites More sharing options...
mardigras Posted November 30, 2018 Share Posted November 30, 2018 (edited) 7 minutes ago, Dark Beau said: I think you are dreaming. What crap you write. If you think so. What was crap. that he is dreaming that stakes will double in the next year. Or the part where the racing industry is a small contributor to tax. Or both. The first part, we'll only have a year to wait to see who is right. The second part is known already. Edited November 30, 2018 by mardigras Quote Link to comment Share on other sites More sharing options...
hesi Posted November 30, 2018 Author Share Posted November 30, 2018 Could someone explain where an extra $59 mil will come from in a years time. 20k maidens, G1's 400k, G2 200k, G3 140k Quote Link to comment Share on other sites More sharing options...
Boxie Posted November 30, 2018 Share Posted November 30, 2018 How will stakes double in a year? The cash handout that was promised by Winnie was to go towards infrastructure NOT stakes. Politically that must be in doubt now as the Government is getting gun shy. Funding a brand new race track in Cambridge is a long way from investing $47m in tourism on the West Coast!!! So what huge game changing intervention is going to double stakes in a year? Racefields legislation? Nope - even the NZRB optimistically says it will add a $1m a month! That will be gobbled up by depreciation charges on their $50m FOB platform stuff up. Is the Government going to give another GST or any other form of tax break that will some how improve stakes? Not only can it NOT be done it isn't politically viable to do it! Dear old David. What's he made his money out of? Spending large sums of other peoples money at the sales, syndicating horses, charging management and training fees on which he has made a profit. Clipping the ticket all along the way. Good luck to him the model works for him hence the 1600ha farm. He takes risks but again his exposure is limited to the time between when he purchases a horse and syndicates it. Even then he has his ducks lined up before hand on the big purchases. Of course you have NZB helping along the way as well! Does anyone find it ironic that the worst metropolitan race track in the country is in the Waikato? 2 1 Quote Link to comment Share on other sites More sharing options...
curious Posted November 30, 2018 Share Posted November 30, 2018 41 minutes ago, Dark Beau said: I think you are dreaming. What crap you write. That's the truth ... mardigras' comments..... and Ellis is talking shyte. Front up with some evidence to the contrary DB. Quote Link to comment Share on other sites More sharing options...
Mark D Posted November 30, 2018 Share Posted November 30, 2018 It's simple, and has been for years, Ellis, Velas and NZB have forced to run a structure of high stakes etc to sustain themselves. And now its falling apart. Some of the purchaser/vendors that NZB have supported to buy at the yearling sales and sell at the RTR have gone to the wall. No domestic market other than Ellis 1 Quote Link to comment Share on other sites More sharing options...
MaltedMilkshake Posted November 30, 2018 Share Posted November 30, 2018 2 hours ago, mardigras said: Dreaming. What a load of bollocks about tax to the government. The racing industry (as opposed to the breeding industry) are small employers, small contributors and I think many industries employ people and pay tax without getting handouts back to the level NZ racing does. Just ignorance. From what I have experienced, I think the point M is making is perfectly legit. Now if DE is running a business, he is minimising his tax because all the GST is claimable....so there’s no immediate benefit to the government there. All his expenses including wages are also deducted from the business income. And is it a fair question to ask if some of DE’s owners are minimising their tax, which is perfectly legal, through investment in his stallion syndicates...? The NZ tax law is slightly more lenient in comparison to Australia and perhaps a reason why he didn’t expand the business to Australia? In addition, they have a significant capital gains tax there. 1 Quote Link to comment Share on other sites More sharing options...
jess Posted December 1, 2018 Share Posted December 1, 2018 (edited) Looks like an infomercial to me. Or should that be an advertorial. Didn't look like a balanced piece of journalism to me - but that is just one person's opinion. Who is Andrea Fox? Edited December 1, 2018 by jess addition Quote Link to comment Share on other sites More sharing options...
mardigras Posted December 1, 2018 Share Posted December 1, 2018 (edited) 14 hours ago, curious said: That's the truth ... mardigras' comments..... and Ellis is talking shyte. Front up with some evidence to the contrary DB. You and I have been on these sites enough to know that often when people are asked to front up with something substantial, it never arrives. So many posters of crap, they hope people simply forget. Sad, but true. I like it when someone challenges my views with substance. But when they are just hot air, I get like Thomass's princess and deflate. Edited December 1, 2018 by mardigras 1 Quote Link to comment Share on other sites More sharing options...
Fred Posted December 1, 2018 Share Posted December 1, 2018 11 hours ago, jess said: Who is Andrea Fox? Isn't she the page 3 girl ? Thomas will know....... Quote Link to comment Share on other sites More sharing options...
jess Posted December 1, 2018 Share Posted December 1, 2018 3 minutes ago, Fred said: Isn't she the page 3 girl ? Thomas will know....... You might be thinking of Samantha, Fred. But perhaps Andrea is an antipodean relative? Quote Link to comment Share on other sites More sharing options...
Weasel Posted December 1, 2018 Share Posted December 1, 2018 12 hours ago, jess said: Looks like an infomercial to me. Or should that be an advertorial. Didn't look like a balanced piece of journalism to me - but that is just one person's opinion. Who is Andrea Fox? Senior Business Reporter for NZ Herald ... understanding of NZ horse racing/breeding industry ? Your guess is as good as mine, but I get a little squirmy with phrases like "forbids the interviewer from..". this piece smacks of subtle self-promotion and in particular Winnie-promotion...speaking of which, where's the action, Winston (apart from putting anew track on David Ellis's doorstep)?? Quote Link to comment Share on other sites More sharing options...
jess Posted December 1, 2018 Share Posted December 1, 2018 Ahhh. Makes more and more sense my Mustelid mate. A senior business reporter who may have little or no knowledge of the industry would have been ripe for the picking. The big guy would have been winking furiously and rubbing his hands together at the mere prospect of such a hapless victim ... Quote Link to comment Share on other sites More sharing options...
Poisoned Dwarf Posted December 1, 2018 Share Posted December 1, 2018 On 1/12/2018 at 12:19 AM, jess said: Looks like an infomercial to me. Or should that be an advertorial. Didn't look like a balanced piece of journalism to me - but that is just one person's opinion. Who is Andrea Fox? Herald does this a lot now....infomercial stories that carry a price tag. Certain multinationals who don't subscribe get shit put on them with nasty stories. Quote Link to comment Share on other sites More sharing options...
jess Posted December 1, 2018 Share Posted December 1, 2018 8 minutes ago, Poisoned Dwarf said: Herald does this a lot now....infomercial stories that carry a price tag. Certain multinationals who don't subscribe get shit put on them with nasty stories. And that's their right to do so. The thing I object to is publication of such disingenuous dross under the guise of journalism. If The Herald wants to indulge Te Akau with gratis advertising they are free to do so. Just a pity they don't stick a "promotional" tag to it - so the information in the article can be atrributed the credibility (or lack thereof) it's due. Or indeed - so that people can make an informed choice whether or not to even read it. A bit of transparency if you will .... Quote Link to comment Share on other sites More sharing options...
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