Draft calendar

[curious]

3 hours ago, Bid said:

Where did you read this? 

https://loveracing.nz/News/30200/BernardsBriefing-24April.aspx

[Freda]

3 hours ago, curious said:

https://loveracing.nz/News/30200/BernardsBriefing-24April.aspx

 

That segment should have been sent separately. 

Human nature/comprehension skills mean that the ' all clear to resume training...etc '  sentence  would have been seized upon with relief and the rest, largely not noticed.

There has been no further advice from racing clubs that I have seen advising trainers not to rush their horses back too soon.

[mardigras]

10 hours ago, curious said:

Nope. McKenzie says in his interview with Aidan that costs have exceeded revenue the last 6 or 7 weeks. That's presumably after the wage subsidy and a turnover of around $27m a week. Not quite sure how the geniuses have done that?

I'd say that the industry is close to pulling the curtains if they can't even make a profit from what they had to work with. They're missing all that free money from the Pokies. Well done RITA.

This demonstrates where things are really at for the industry. Australian racing alone has been generating a lot more net betting revenue than NZ racing has each year. Which suggests what they received during this time would be greater than what NZ by itself could currently achieve, if NZ racing were to try and stand up on its own feet. Therefore NZ racing as such is insolvent in this particular area. Well done again.

Maybe they need to diversify and start operating some income tax free bakeries. They seem to get whatever other income streams they want and pay no income tax - and just shift it off to the industry

Edited April 25, 2020 by mardigras

[Freda]

16 minutes ago, mardigras said:

I'd say that the industry is close to pulling the curtains if they can't even make a profit from what they had to work with. They're missing all that free money from the Pokies. Well done RITA.

This demonstrates where things are really at for the industry. Australian racing alone has been generating a lot more net betting revenue than NZ racing has each year. Which suggests what they received during this time would be greater than what NZ by itself could currently achieve, if NZ racing were to try and stand up on its own feet. Therefore NZ racing as such is insolvent in this particular area. Well done again.

Maybe they need to diversify and start operating some income tax free bakeries. They seem to get whatever other income streams they want and pay no income tax - and just shift it off to the industry

Bloody hell.     But, what upsets me [ as much as the possible demise of our beloved industry ]  is the continued ability to spin bullshit.

The lack of 'income' from NZ racing is held up to be the reason for the current malaise.     

Clearly, that is not the case.   So, are the Rita people liars,  or just plain incompetent?  or both...

[mardigras]

17 minutes ago, Freda said:

Bloody hell.     But, what upsets me [ as much as the possible demise of our beloved industry ]  is the continued ability to spin bullshit.

The lack of 'income' from NZ racing is held up to be the reason for the current malaise.     

Clearly, that is not the case.   So, are the Rita people liars,  or just plain incompetent?  or both...

The lack of income from NZ will be affecting them though, as they don't appear to have made any significant moves to cut their costs. So they will have costs continuing for what would be related to staff etc for NZ racing. It just highlights though that they require massive revenue from other things, otherwise there is no money. Pokies, sports and off-shore racing contributed approximately $215m of their 2018 total net betting revenue of $315m.

Their costs at $213m in 2018, were more than double the net betting revenue of NZ racing. 

So without massive changes to the cost structure, one 'arm' of their income stream by itself, appears incapable of making any money. They should have massively curtailed their costs during this period, to enable the revenue from Australian betting to keep them making money overall. But they were clearly too stupid to do that.

[By The Numbers]

Join the dots.

NZTA is funded by NZTR greater than 80% of their revenue the rest of their income comes from sponsorship.  We can guess where that portion is sourced from.

97% of NZTR's funding is from RITA (includes the claw back from racing clubs).  That's $88m.  $73m (83%) is paid to the clubs by NZTR.

Of that $73m $56m is paid out in Stakes.  That means $17m is paid to clubs to fund their operational costs.  Are the clubs still getting funding via the daisy chain?  If not some of the big ones must be suffering severe financial stress.  The irony is that the small clubs who have been getting very little are probably not so stressed.

Can you see the stack of cards building here?

Now neither RITA nor NZTR have slashed their costs during Covid-19.  We know that RITA's sources of funding has been slashed.  ZERO from Pokies, close to ZERO from Sports.  It has been argued by some that RITA was trading insolvent BEFORE Covid-19.  Therefore the same could be said for NZTR.

NZTR has annually $4m in direct salary/wage costs.  If we divide that by 4 to get what is paid over 12 weeks (the Covid-19 wage subsidy) it equates to $1m.  Under the rules NZTR have to pay at least 80% of what they normally pay to get the subsidy i.e. $800,000.  BUT we have not heard of any major pay cuts.  So it would be a fair assumption that the wage bill is closer to $1m that $800k.  Subtract the $278k the got from the subsidy and you have a bill of $722k for the 12 week period.  That HAS to come from RITA!

Now apply the same analysis to RITA.  It wouldn't be too far from the mark to say that RITA have exhausted all their lines of credit BEFORE Covid-19.  They only way they could raise more capital for operational expense is to get a loan or rock solid guarantee from the Government.  

The Staff costs for RITA for 2019 was $62m.  We haven't seen any major redundancies nor pay cuts.  So divide by 4 and we have a 12 week staff bill of $15.5m.  We've seen no evidence that RITA has dropped what they are paying to staff to the 80% minimum. Subtract the subsidy of $4m and you still have a staff bill of $11.5m.  

NZTR + RITA = Staff bill for 12 weeks of subsidy $12.2m.

Now add RIU Limited.  Funded by RITA through another daisy chain that involves the code organisations.  We are led to believe that most of the funding has come from Pokies.  That source is now ZERO.  They received $6.6m from this source in 2019.

Well it is hard to find an annual report for the RIU.  Their website has a 2016-17 report but it has no financial information in it.

The RIU claimed $477k in subsidy.  That is 1.72 times the NZTR claim.  So extrapolating that it would indicate that the RIU staff cost for the total 12 week period is around $722k x 1.7 = $1.23m.

Total bill for the 12 weeks NZTR + RITA + RIU = $13.43m.

We could extend this to include HRNZ and GRNZ.

The RIU liability will fall back on each of the shareholders.  

[Extra Dollars]

On 4/16/2020 at 5:54 PM, Freda said:

I see R.V staff are now to leg on the jockeys, trainers not allowed im birdcages to reduce contacts.

I can just see Millsy and Jim legging on the riders....

Back in the day you weren't a good jockey or apprentice unless you could swing up yourself,from what I have seen in the last few years,I think only Opie is able to do it nowadays.

[Chief Stipe]

I'm starting to think this proposed calendar should be called the DAFT Calendar not the draft!

The tracks they have lined up are terrible in late Winter/early spring.  That's why they used Ruakaka and Taupo!

Foxton would be better than Awapuni!  Especially if you don't need a Grandstand!

The fibre optic reason is just plain bullshit!

[Freda]

1 minute ago, Chief Stipe said:

I'm starting to think this proposed calendar should be called the DAFT Calendar not the draft!

The tracks they have lined up are terrible in late Winter/early spring.  That's why they used Ruakaka and Taupo!

Foxton would be better than Awapuni!  Especially if you don't need a Grandstand!

Ha...yeah....and 3 days at Ricc in July going forward to August....at least mine won't mind but that's not really the point..

[Chief Stipe]

Why couldn't they use Ruakaka? 

Last year many stables from regions south based there early in the season.  They set up in caravans, horse floats and mobile campervans.  The course has amenities that could accommodate 200 people keeping a social distance of 10 metres let alone 2 metres!  

The track is sand based and the weather is kind.  Geez they are having the worst drought in a century and there is no sign of it lifting.  FFS the Warriors are willing to base themselves 2,200 km away from home surely the racing industry can manage 285km!

We know Tony Pike will get homesick but for the sake of a decent racing surface I'm sure he'll get over it.

Am I talking too much common sense?

[Huey]

36 minutes ago, Chief Stipe said:

Why couldn't they use Ruakaka? 

Last year many stables from regions south based there early in the season.  They set up in caravans, horse floats and mobile campervans.  The course has amenities that could accommodate 200 people keeping a social distance of 10 metres let alone 2 metres!  

The track is sand based and the weather is kind.  Geez they are having the worst drought in a century and there is no sign of it lifting.  FFS the Warriors are willing to base themselves 2,200 km away from home surely the racing industry can manage 285km!

We know Tony Pike will get homesick but for the sake of a decent racing surface I'm sure he'll get over it.

Am I talking too much common sense?

Why should they?

This is the time for winter racing for winter horses and those trainers/owners to have a go. Not everyone gets to go to the sales and buy from K1 or K2 or go to 5 figure stallions, their turn will come soon enough and they'll have their All Weather track soon enough that they'll start moaning about as soon as its up and running, can't wait to see how much use it gets.

I must be the only one that finds the racing from Ruakaka seriously boring and what about the travel all the way up there , going through Auckland etc. 

[Huey]

57 minutes ago, Chief Stipe said:

I'm starting to think this proposed calendar should be called the DAFT Calendar not the draft!

The tracks they have lined up are terrible in late Winter/early spring.  That's why they used Ruakaka and Taupo!

Foxton would be better than Awapuni!  Especially if you don't need a Grandstand!

The fibre optic reason is just plain bullshit!

Yes but this has been signaled for sometime the tracks they will and won't use , they aren't going to be shown to be wrong particularly in Foxton case and move somewhere else. They'd race at Awapuni if it was under water because they see that as the centre of racing in the CD and the only track that exists to them.

How many horses trained at Taupo? Is't this suppossed to be about keeping races close to horse populations? 

How many of these trainers are going to fry their good spring horses in the winter racing at Taupo and Ruakaka or have horses to go around at that time of year. Wait and see if these trainers make a huge fuss i.e. refuse to bring horses into work fro August on wards then I'll believe them.

[Chief Stipe]

5 minutes ago, Huey said:

This is the time for winter racing for winter horses and those trainers/owners to have a go.

If they have been doing as MPI has told them then those horses are still in a paddock or at best trotting around a track.  They won't be fit until late winter for a slog around a heavy track.

More importantly we are going to put pressure on tracks when they don't normally have racing and more frequently.  To use one of The Diceman's phrases - come spring "they'll be rooted."

As for boredom - I personally don't find horses slogging away up to their hocks spread over 20+ lengths as particularly entertaining.  A better product to watch over the ditch.

[Huey]

2 minutes ago, Chief Stipe said:

If they have been doing as MPI has told them then those horses are still in a paddock or at best trotting around a track.  They won't be fit until late winter for a slog around a heavy track.

More importantly we are going to put pressure on tracks when they don't normally have racing and more frequently.  To use one of The Diceman's phrases - come spring "they'll be rooted."

As for boredom - I personally don't find horses slogging away up to their hocks spread over 20+ lengths as particularly entertaining.  A better product to watch over the ditch.

What do you mean they don't race on them? Awapuni, Wanganui , Riccarton, Te Rapa etc etc they race on in the winter. 

As for the tracks being rooted well that has happened long before this has happened and thats more to do with the code than this virus situation.

I enjoy watching G1 horses in good races in the Spring , but I enjoy watching the Parliamentry,Cornwall,Whyte handicap the jumps in the winter so what if you don't , I don't like Ruakaka racing and they have had a helluva a decent go from the industry in the past has it made it any better?

The Spring and Autumn racing is special because you have to endure the winter racing , you can't have it all year round and expect to get the same results i.e. punters and race goers show the same level of enthusiasm for the product the whole year round doesn't and won't happen. 

 

[Chief Stipe]

13 minutes ago, Huey said:

How many of these trainers are going to fry their good spring horses in the winter racing at Taupo and Ruakaka or have horses to go around at that time of year. Wait and see if these trainers make a huge fuss i.e. refuse to bring horses into work fro August on wards then I'll believe them.

You'd be surprised Huey how many trainers have in recent years based a team at Ruakaka during the winter.  

I'm starting to wonder which trainers were actually consulted and who were the 54 trainers - for example Gibbs & Bradley weren't consulted and they are 23rd on the premiership.

Check this article out for Shaune Richies view:  https://www.racenews.bitofayarn.com/ritchie-calls-for-track-additions-to-calendar/

He actually mentions spring racing.

Or Gibbs and Bradley's view: https://www.racenews.bitofayarn.com/gibbs-prepared-to-make-the-best-of-challenging-situation/

[Chief Stipe]

4 minutes ago, Huey said:

What do you mean they don't race on them? Awapuni, Wanganui , Riccarton, Te Rapa etc etc they race on in the winter. 

As for the tracks being rooted well that has happened long before this has happened and thats more to do with the code than this virus situation.

 

They are going to increase the racing and trialling on them.  Root them for the spring while we have tracks that will provide a better surface unused for trialling and racing.

[Huey]

2 minutes ago, Chief Stipe said:

They are going to increase the racing and trialling on them.  Root them for the spring while we have tracks that will provide a better surface unused for trialling and racing.

Which tracks are you referring to get over used more that usual , I may not have seen that in the calendar.

[Huey]

7 minutes ago, Chief Stipe said:

You'd be surprised Huey how many trainers have in recent years based a team at Ruakaka during the winter.  

I'm starting to wonder which trainers were actually consulted and who were the 54 trainers - for example Gibbs & Bradley weren't consulted and they are 23rd on the premiership.

Check this article out for Shaune Richies view:  https://www.racenews.bitofayarn.com/ritchie-calls-for-track-additions-to-calendar/

He actually mentions spring racing.

Or Gibbs and Bradley's view: https://www.racenews.bitofayarn.com/gibbs-prepared-to-make-the-best-of-challenging-situation/

Nothing is stopping them from going up there to train their horses, in fact whats stopping them from moving up there? Same trainers that didn't give a tuppence when the M report was closing down smaller venues and was going to have an impact on the trainers/owners/race goers at those venues having to move or throw the towel in, plenty in this game want their cake ...

[Huey]

10 minutes ago, Chief Stipe said:

They are going to increase the racing and trialling on them.  Root them for the spring while we have tracks that will provide a better surface unused for trialling and racing.

What's wrong with Te Rapa? I thought that was supposed to be a very good track now?

[Chief Stipe]

12 minutes ago, Huey said:

What's wrong with Te Rapa? I thought that was supposed to be a very good track now?

What have they done in the last few months to make it so?

 

[Huey]

4 minutes ago, Chief Stipe said:

What have they done in the last few months to make it so?

 

No idea , just hadn't heard any moaning about the sand.

[curious]

3 hours ago, Chief Stipe said:

I'm starting to think this proposed calendar should be called the DAFT Calendar not the draft!

The tracks they have lined up are terrible in late Winter/early spring.  That's why they used Ruakaka and Taupo!

Foxton would be better than Awapuni!  Especially if you don't need a Grandstand!

The fibre optic reason is just plain bullshit!

Foxton has a grandstand. Also new plastic rail, brand new jockeys rooms, showers, stipes and JCA room, kitchen etc. plus refurbished tea room etc.

[Huey]

3 minutes ago, curious said:

Foxton has a grandstand. Also new plastic rail, brand new jockeys rooms, showers, stipes and JCA room, kitchen etc. plus refurbished tea room etc.

So would it make better sense for Foxton to have the Awapuni meetings?

[Chief Stipe]

3 minutes ago, Huey said:

So would it make better sense for Foxton to have the Awapuni meetings?

Well it is known to have a better surface in the winter than Awapuni.  Wouldn't it be nice to see the Castletown Stakes back where it belongs.

[curious]

8 minutes ago, Chief Stipe said:

Well it is known to have a better surface in the winter than Awapuni.  Wouldn't it be nice to see the Castletown Stakes back where it belongs.

That would be nice but even as a temporary measure for the current situation it would make some sense with respect to providing reasonable winter footing for a few of those early meetings.