The five biggest priorities for new NZTR CEO Matt Ballesty

[Murray Fish]

Racing Industry

 

By Bren O'Brien - February 06, 2025

Matt Ballesty may have been a surprise choice as the new chief executive officer of New Zealand Thoroughbred Racing but having a light racing industry pedigree is not a bad thing for someone expected to change things up at NZ racing’s governing body.

Incoming New Zealand Thoroughbred Racing chief executive Matt Ballesty. (Photo: NZ Trackside)

The initial five years of the 25-year Entain agreement, a deal worth a minimum NZ$900 million, was always going to be the most crucial to its success, and ultimately the long-term viability of the New Zealand racing industry.

By the time Ballesty, who has extensive experience in casinos and hospitality and has done some consultancy work in the racing industry, takes control, nearly two of those first five years will have elapsed, with a lot still to be ticked off to meet the terms of the deal.

There is a huge opportunity, helped by the prospect of a considerable share of the additional $100 million to be secured by the New Zealand government’s pending geo-fencing legislation which will give Entain/TAB NZ a virtual monopoly.

But there are a host of existing challenges that will need to be met. We’ve identified what we think are the top five priorities for the new CEO.

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1 - Executive refresh

Any time a CEO is appointed from not only outside an organisation but also outside an entire industry, there is the likelihood they have been given a mandate to make whatever change is necessary to get things working. With time pressing to resolve a host of challenges, Ballesty will want to hit the ground running and make the call quickly on what is wheat and what is chaff.

There is plenty of operational experience at his disposal in the existing team, something he might find helpful as he gets his head around the finer details of the thoroughbred business, but when it comes to formulation and executing a strategy to meet to challenges below, he will likely look to enlist additional help.

There was a strategic plan put together by the previous administration, encompassing 2024 to 2028, but the published document looks light on detail, and more akin to a powerpoint presentation than a strategic document.

2 - Venue rationalisation  

A key aspect of the Messara Report, venue rationalisation has been an ongoing theme in New Zealand racing for a long time. Messara recommended the number of tracks drop from 48 to 28. It is currently at 35.

Axing racing venues and rationalising race club costs is not politically palatable and will win Ballesty few friends, but every review of NZ racing starts with the unsustainable club structure.

A venue plan released by NZTR in 2024 proposed no major changes to venues over the next five years, somewhat remarkable given what Messara and others had outlined. What it did do was encourage clubs to “develop solutions for racing and training in their regions for the benefit of the industry as a whole”.

Straight Shorts - Wednesday February 5 - Matt Ballesty appointed NZTR boss, BlueBet’s TopSport takeover, industry mourns The Aga Khan

This is why the issue has not been resolved. There is little incentive for clubs to vote themselves out of existence, while NZTR is not empowered to undertake the cuts itself without government intervention.

Ballesty needs to be the galvanizing influence on this issue, bringing together clubs to work for the greater good, and achieve the long-needed rationalisation for the other initiatives to have the desired impact.

3 - Keep New Zealand’s best horses in New Zealand

New Zealand owners and trainers - particularly the latter - have become very adept at trading horses, be it to Australia or Hong Kong. While the recent boost in prize money and the development of races like the NZB Kiwi have helped move the dial, the best horses still seem to find their way out of the country. Just this week, Leica Lucy, the NZ Oaks favourite, was sold to Ozzie Kheir and transferred to Chris Waller.

Given the record of NZ horses in Australia and Hong Kong’s best races, it is not surprising that they become targets, but if the offerings are stronger at home then fewer of them will be sold.

Prize money is a part of the solution, but so too is programming, ensuring horses have every opportunity to target the right races. That’s something that NZTR will have to prioritise with the clubs.

The reason why this is important as it has a knock-on impact on wagering turnover and engagement. The best horses attract the most betting interest, and that then flows through back to the industry.

The more those best horses run on home soil, the better.

New Zealand Thoroughbred Racing chair Russell Warwick and new chief executive Matt Ballesty. (Photo: NZTR)

4 - Supercharge ownership

With extensive experience in casinos and hospitality, Ballesty will have a clear understanding of the importance of customers. Arguably the most important and most engaged customer of the racing industry is the owner, and they are also arguably the most neglected, not in just New Zealand but around the world.

As of the end of the last racing season, New Zealand had 14,633 owners, or around one in every 355 people. The corresponding figure in Australia is over 140,000, or one in every 191. The Australian ownership model is something NZ could aspire too, but the core number has remained in that same 14,000-15,000 range for the past four years.

While there has been marketing campaigns to drive interest in ownership, what is needed is a game-changing strategic approach to empower the establishment of more syndicates and encourage the ownership experience. It is an initiative that has to be driven by NZTR, led by the CEO.

5 – Fix the tech

Sounds boring doesn’t it, shoring up the technology platform which underpins the function of the industry. But it is extremely important and, from all reports, in desperate need of an upgrade.

The Straight reported last year that NZTR had abandoned a $4 million project with Racing Australia which was designed to utilise the SNS (Single National System) to upgrade the New Zealand data system, including the stud book.

With that project shelved, there hasn’t been a solution put forward on how the current platform will be updated. That issue should be front and centre on Ballesty’s agenda.

But it is not just the technological implications. The current system is a drain on resources as well, with manual data entry being used where automated processes could be employed. Processes such as ownership and race entry are needlessly laborious.

New Zealand is by no means the only jurisdiction with antiquated technical processes. However, innovation is listed as the second value of NZTR’s 2024-2028 strategic plan and you can’t live up to that while you still rely on pen and paper.

Dragging the technical administration of NZ racing into the 21st century would be a huge sign of intent from Ballesty that the status quo is not acceptable.

[Huey]

Be lucky if he can achieve 2 out of 5 , main focus will be on 2 which will really put the dagger in the back of the sport.

I always finding it amusing how the fools who write these articles and refer to Venue Rationalization as some kind of cost savings for the industry, I've never understood that .

[Special Agent]

1.  Executive refresh?  Isn't that underway with him coming in?  Wouldn't he want to feel his way for a bit.

2.  Venue rationalisation.  Forget about this for now.  What does everyone do when this doesn't work?  What have the last few seasons taught us?

3.  No one is going to stop an owner letting a horse go if the price is right.  Horses go amiss at any time so, why would an owner risk this by turning down a lucrative offer?  Is NZTR going to offer an insurance/guarantee should the owner turn down an overseas offer to race their horse here and for some reason it doesn't race again?

4.  If ownership is going to be supercharged he will need to seriously look at costs and consider subsidising raceday expenses such as floating, farrier, entries etc.  That may encourage current customers to race other horses or join other syndicates.  We are likely heading for another recession so, he'll need to pick people who are already employed.

5.  What is all the bullshit about the excessive manual entry draining resources?  Trainers have been inputting their own stable returns and race entries for a long time.  Studmasters enter their own stallion services.  There are stuff all horses and people in the industry yet more and more employed at NZTR.  I find this a stupid comment.  Current staff at NZTR can't possibly be as lazy and incompetent as this article is portraying.

Let's see what we end up with.  I can't see any revelations arriving any time soon.  New Zealand doesn't have a great track record with anyone coming here through a Canadian connection.

Oh, I hope this man proves me wrong.  It's hard to get excited though as we have heard it all before, many times.

[Doomed]

I've been thinking about this idea of keeping the best horses racing in NZ. What's the point and can we afford it? We can still watch them racing in Aussie and hopefully beating better fields than they would meet here.

How much did it cost to encourage Legarto to have a few races in NZ last year? $2m?

How much are we spending to encourage Orchestral to have a few races in NZ this year, after she proved not up to Aussie class earlier in the season. $1m for an incredibly ordinary race on sweepstake day. Heaps more in bonuses.

The owners of these so called elite horses must be laughing all the way to the bank.

[Huey]

1 hour ago, Doomed said:

I've been thinking about this idea of keeping the best horses racing in NZ. What's the point and can we afford it? We can still watch them racing in Aussie and hopefully beating better fields than they would meet here.

How much did it cost to encourage Legarto to have a few races in NZ last year? $2m?

How much are we spending to encourage Orchestral to have a few races in NZ this year, after she proved not up to Aussie class earlier in the season. $1m for an incredibly ordinary race on sweepstake day. Heaps more in bonuses.

The owners of these so called elite horses must be laughing all the way to the bank.

I agree and I don't we can keep them here, look at Oaks & Derby favs both off to Aus never to be seen again on these shores after their respective goals.

[Wingman]

The idea that "WE" keep our best horses in NZ is ludicrous. Money talks and owners walks, thanks for the millions. Those owners that are not totally money orientated tend to keep a minor share achieving the best of both worlds. Most of our horses despite the marketing do not stack up against international competition. Don't bother giving me your Mr Brightside, Ka Ying Rising etc rebuttals, because they are the exceptional exceptions that keep overseas buyers coming back for more. We are a trading nation. A lot of the nostalgic comment about the great years of 60's/70's is due to the fact there was not the markets available then that is now. In fact back then the Aussies really feared the  NZ staying horses even though it was a lot harder to travel from NZ compared to today. 

Footnote, they have never feared our sprinters as todays G1 result vindicates so from time to time clever people say "lets play them at their own game" and get results such as purchasing Imperatriz!

[Doomed]

55 minutes ago, Huey said:

I agree and I don't we can keep them here, look at Oaks & Derby favs both off to Aus never to be seen again on these shores after their respective goals.

Yes, $1m for the Oaks and all it does is keep a promising horse in NZ for a couple of starts. I suppose the Derby is worth well over $1m.

Who is more valuable to NZ racing, the Oaks and Derby favs or Mr Intelligence?

I would suggest Mr Intelligence has generated more interest and turnover for NZ Racing than those 3yos will long term.

[Huey]

8 hours ago, Doomed said:

Yes, $1m for the Oaks and all it does is keep a promising horse in NZ for a couple of starts. I suppose the Derby is worth well over $1m.

Who is more valuable to NZ racing, the Oaks and Derby favs or Mr Intelligence?

I would suggest Mr Intelligence has generated more interest and turnover for NZ Racing than those 3yos will long term.

This year might be an exception with both of the horses looking like they have rare ability and both could have some luck and go on with it, i.e. wouldn't be beyond reason to see them both in a Cox Plate. Surely that has to create some much needed interest for the sport here, real interest not the fabricated type like KM or the NZ Kiwi.

[mikeynz]

I find the idea that by geo blocking all this so called money that's punted on overseas sites will come flooding back to NZTAB as being rather naive, many will be serious punters but if you limit them they will more than likely stop betting, no one likes a monopoly and sure 100 million to Racing and Harness in NZ looks appealing but its also a big gamble by Entain as well, they have thrown plenty of money NZs way but are they getting anything back?

[Chief Stipe]

To be fair the NZ wagering market is loose change to ENTAIN.  The biggest headwind they face is the gambling tax proposal in the UK.  With the UK Labour Government tanking the UK economy they're desperate to find "society friendly" sources of tax revenue.

[Wingman]

So if it is loose change why the intense interest in being involved in NZ?

[curious]

3 minutes ago, Wingman said:

So if it is loose change why the intense interest in being involved in NZ?

A 25 year contract to operate a monopoly wagering outfit?

[Chief Stipe]

4 minutes ago, Wingman said:

So if it is loose change why the intense interest in being involved in NZ?

How can it be anything but loose change?  A Geo-blocked wagering market of 5 million people!  

As for why - I can only think there is a strategic reason but that escapes me.  Perhaps a small educated demanding market to test new products and systems?  I worked once for an international corporation who were doing that.  

IT diversity - a stable political and business environment to house backups to global systems.  Who knows but I don't imagine it is just for the revenue which at the moment must be running at a loss.

[Chief Stipe]

4 minutes ago, curious said:

A 25 year contract to operate a monopoly wagering outfit?

With a geo-blocked limited market of 5 million people.  The only way they will gain monopoly profits is if they dump racing at the end of the first 5 years when their funding committment ends.  Even then they are competing with established gaming businesses in NZ.  Perhaps they are waiting for Sky Casino to go broke.

[Wingman]

When the industry was looking at a partner for the NZ TAB I thought that going with Tabcorp was the logical step however the 5year 'investment' from Entain won the day. Like you I could not see 'Why' from Entain perspective but testing new products for SPORT. not racing is high on my radar.

The 5 points highlighted in the above article do not address the most important 'must fix' which is the calendar, pattern and minimum stakes levels . That, as most on this site are aware, requires huge change and has to be made known latest end of this year for implementation for 2026/27 season. 2027/28 is the last of the 5 year funding. By then Entain's true intent will be known so NZTR has to make massive changes under urgency to enable the industry to be prepared for the 20 year 50/50 arrangement.

[Gammalite]

15 hours ago, Doomed said:

I've been thinking about this idea of keeping the best horses racing in NZ. What's the point and can we afford it? We can still watch them racing in Aussie and hopefully beating better fields than they would meet here.

How much did it cost to encourage Legarto to have a few races in NZ last year? $2m?

How much are we spending to encourage Orchestral to have a few races in NZ this year, after she proved not up to Aussie class earlier in the season. $1m for an incredibly ordinary race on sweepstake day. Heaps more in bonuses.

The owners of these so called elite horses must be laughing all the way to the bank.

Nearly the greatest of them All did exactly that for you Doomed.

I think of her as the Best NZer ever , with the 2 Cox Plate Wins , a Hong Kong Mile and much more. 

SUNLINE was a 4 time NZ horse of the year , but only Won a total of 10 races in New Zealand tracks. very surprising small number of NZ starts . (won all 10 as well ) 

In fact today is her Anniversary of her Group 1 NZ Win . The Waikato Sprint Feb 9th 2002. 23 years ago today.

What a Ripper she was 🏇 , and like you say , was Fantastic her 9 trips to Australia netting another 21 wins and $14,000,000 in prizemoney.  Was still a great of NZ racing (like Imperatriz) conquering the Aussies for fun. 

(Perhaps Verry Elleegant a close 2nd as best kiwi ? with an MC 🏆 and that)  

 

[Bloke]

1 hour ago, Chief Stipe said:

To be fair the NZ wagering market is loose change to ENTAIN.  The biggest headwind they face is the gambling tax proposal in the UK.  With the UK Labour Government tanking the UK economy they're desperate to find "society friendly" sources of tax revenue.

If anyone tanked the Uk economy, it was Liz Truss