Ellerslie/Avondale Merger and Asset Sale

[Huey]

 Interesting developments:

 

1: Ellerslie and Counties to merge forming Auckland Turf Club. Avondale will support but retain its autonomy and race on as AJC.

2: Ellerslie to install StrathAyr track, close for over a year

3: Avondale committee suggesting to members they stay as AJC but from 2026 track closed and they race at Ellerslie, as will Pukekohe.

4: Deloitte reports suggest with hugely increased assets Ellerslie can hold 40 meetings a year with 100k average stake in 5 years

5: New mega club and Avondale plan to run its three current $1million races but also 10 other races per season of at least $500k. 6: A hugely positive time for northern racing that a lot of people have worked delicately behind the scenes to make this happen

[Chief Stipe]

Where did you pick that info up from?

[Chief Stipe]

So reading between the lines the Strathayr will be funded by Avondale.

Pukekohe has nothing to sell and the money poured in there didn't fix the track so only option is to close it.

I wonder where Ruakaka will end up.  

Will be interesting to see what happens in the Waikato.  Are they still talking a Greenfields development in Cambridge?

[Running Man]

18 minutes ago, Huey said:

 Interesting developments:

 

1: Ellerslie and Counties to merge forming Auckland Turf Club. Avondale will support but retain its autonomy and race on as AJC.

2: Ellerslie to install StrathAyr track, close for over a year

3: Avondale committee suggesting to members they stay as AJC but from 2026 track closed and they race at Ellerslie, as will Pukekohe.

4: Deloitte reports suggest with hugely increased assets Ellerslie can hold 40 meetings a year with 100k average stake in 5 years

5: New mega club and Avondale plan to run its three current $1million races but also 10 other races per season of at least $500k. 6: A hugely positive time for northern racing that a lot of people have worked delicately behind the scenes to make this happen

said two weeks ago strathayr was going to be installed at ellerslie

[Chief Stipe]

2 minutes ago, Running Man said:

said two weeks ago strathayr was going to be installed at ellerslie

Yes and we asked for your source or corroboration but you weren't forthcoming.

[Chief Stipe]

32 minutes ago, Huey said:

4: Deloitte reports suggest with hugely increased assets Ellerslie can hold 40 meetings a year with 100k average stake in 5 years

Eh?!  That's a big call.  That's at least $50 million in stakes per year.  The current total for ALL three codes and ALL clubs is $130m!!!!!

Are Deloittes smoking something?

[mumbles]

If one of the worlds big 4 Accounting companies says it a goer,then,its a goer.

Lets do this.

Lets go hard and early,when have an accounting company ever been wrong.

[nomates]

The centralization of racing begins , if they go ahead with the Greenfields in the Waikato and put a Strathayr in and have Cambridge with their A/W , that's about all that will be needed for northern racing . Not against this in principle but they must allow some provincial racing to co exist .

As for the central districts are they going to put in a Strathayr at Awapuni or Trentham , or build their own Greenfeilds project . I would prefer a new track myself , keep Palmy if they must and some provincials .

Will be interesting , i wonder if improving CD racing much more than the A/W is even on the radar . Could the plan be that majority of NI racing is based north of Taupo , would not surprise me . CD racing has been on the decline for 20 years .

[Huey]

Wouldn't the SI be better to try to put a deal together to get a Strathyr in rather than an AWT, like is being done in Auckland? Certainly sounds like the resources are there to at least take a look at it.

[Huey]

18 minutes ago, nomates said:

The centralization of racing begins , if they go ahead with the Greenfields in the Waikato and put a Strathayr in and have Cambridge with their A/W , that's about all that will be needed for northern racing . Not against this in principle but they must allow some provincial racing to co exist .

As for the central districts are they going to put in a Strathayr at Awapuni or Trentham , or build their own Greenfeilds project . I would prefer a new track myself , keep Palmy if they must and some provincials .

Will be interesting , i wonder if improving CD racing much more than the A/W is even on the radar . Could the plan be that majority of NI racing is based north of Taupo , would not surprise me . CD racing has been on the decline for 20 years .

Part of the problem is that racing won't take a fair an un bias view of itself and put something together to better utilise its existing assets , instead it has extreme bias (as seen in the M report) and decisions being made that make no operational or financial sense for the future of the sport, particularly in the CD. i.e. if one venue doesn't work the idea is just to keep doing what youre doing at that venue or build an AWT that solves everyones problems apparently.

[Chief Stipe]

I keep saying going from a low cost model to a high cost model with stagnating revenues is madness.

 

[Huey]

7 minutes ago, Chief Stipe said:

I keep saying going from a low cost model to a high cost model with stagnating revenues is madness.

 

NZ Racings approach - Build it and they will come! -  Won't necessarily work.

[Chief Stipe]

Geez I sound terrible on the radio!

Anyhoo it just dawned on me how they will fund the $50m a year in stakes.  Similar to Alexandra Park.  

Sell and/or develop Avondale into apartments.  Create a reoccurring stream of revenue from that Capital to fund stakes.

That is dont expect racing to fund itself.

Watch out Otago/Southland they're coming for you.

At least we know now who one of the THREE business consultants were.  KPMG another?

Looks like Reeftons accountancy guru didn't get the contract.

[mikeynz]

5 minutes ago, Chief Stipe said:

Geez I sound terrible on the radio!

Anyhoo it just dawned on me how they will fund the $50m a year in stakes.  Similar to Alexandra Park.  

Sell and/or develop Avondale into apartments.  Create a reoccurring stream of revenue from that Capital to fund stakes.

That is dont expect racing to fund itself.

Watch out Otago/Southland they're coming for you.

At least we know now who one of the THREE business consultants were.  KPMG another?

Looks like Reeftons accountancy guru didn't get the 

8 minutes ago, Chief Stipe said:

Geez I sound terrible on the radio!

Anyhoo it just dawned on me how they will fund the $50m a year in stakes.  Similar to Alexandra Park.  

Sell and/or develop Avondale into apartments.  Create a reoccurring stream of revenue from that Capital to fund stakes.

That is dont expect racing to fund itself.

Watch out Otago/Southland they're coming for you.

At least we know now who one of the THREE business consultants were.  KPMG another?

Looks like Reeftons accountancy guru didn't get the contract.

 

Otago and Southland,what do you think they will get?Cant see a big building boom in Wyndham looming.

[mikeynz]

Having said that the ideas being floated around up north are pretty positive and ambitious,its best when the clubs do it off their own bat.

[Chief Stipe]

25 minutes ago, mikeynz said:

Having said that the ideas being floated around up north are pretty positive and ambitious,its best when the clubs do it off their own bat.

They're not yet.  Has to be approved by members from all three clubs.  However if they don't approve then NZTR can then invoke the land grab sections of the new Act. 

Sign of things to come.

[Huey]

3 hours ago, mikeynz said:

Otago and Southland,what do you think they will get?Cant see a big building boom in Wyndham looming.

Coming for their assets.

Lets be clear its good for racing if your stationed from Te Awamutu upwards. 

I do hope other clubs get their houses in order or understand the legislation etc before the real theft takes place!

[Chief Stipe]

1 hour ago, Huey said:

I do hope other clubs get their houses in order or understand the legislation etc before the real theft takes place!

Ellerslie can easily fund their own Strathayr without acquiring further assets.  But the only way the $50m a year in stakes can be delivered is by acquiring Avondale's assets (Counties don't have any!).

[curious]

2 hours ago, Chief Stipe said:

Ellerslie can easily fund their own Strathayr without acquiring further assets.  But the only way the $50m a year in stakes can be delivered is by acquiring Avondale's assets (Counties don't have any!).

Don't Counties own their land?

[Chief Stipe]

6 minutes ago, curious said:

Don't Counties own their land?

My bad.....I assumed that they didn't because of the motor racing track.

[Chief Stipe]

However if they go then what training facility to have you have left close to Auckland?  Only Byerly Park.  Then you are in the Waikato or Ruakaka.

Auckland has lent Pukekohe $2m for refurbishing the track which must be paid back if the Counties ceases to be a training facility.

[curious]

Isn't the intention to retain Counties for training? I thought that's what I read. Yes they have total assets, mostly property of around 13m.

[Chief Stipe]

They altered their Constitution to align with the move by NZTR to align with the disposal of assets as per the Racing Act 2003.  They will require 3/5's of members to agree.

BC10063556511.pdf

[Chief Stipe]

1 minute ago, curious said:

Isn't the intention to retain Counties for training? I thought that's what I read. Yes they have total assets, mostly property of around 13m.

OK.  I haven't seen the full proposal.  If that is the case then they are relying on Avondale's assets to fund the Strathayr and to provide the seed funding for the $50m in yearly stakes payout.

[curious]

Yes. To alter the constitution. Don't see that as a likely problem do you?