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Bit Of A Yarn

Something doesn't add up. Please explain.


curious

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This from Saundry today:

The industry needs to be aware that TAB NZ has not underwritten a total amount to be paid to the codes this season, rather they have provided a budget of the funding it aims to pay.  We now exist in a funding structure where we are paid in arrears, rather than in advance and cover as much of what would otherwise be a negative cashflow position.

My understanding of the legislation is that TABNZ distribute to the codes any surplus as determined by S16 to the codes during or after the season, so are they not always essentially paid in arrears? My belief was that the profit from the previous season was paid out once determined and essentially funded the current season.

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3 hours ago, curious said:

This from Saundry today:

The industry needs to be aware that TAB NZ has not underwritten a total amount to be paid to the codes this season, rather they have provided a budget of the funding it aims to pay.  We now exist in a funding structure where we are paid in arrears, rather than in advance and cover as much of what would otherwise be a negative cashflow position.

My understanding of the legislation is that TABNZ distribute to the codes any surplus as determined by S16 to the codes during or after the season, so are they not always essentially paid in arrears? My belief was that the profit from the previous season was paid out once determined and essentially funded the current season.

According to the annual report the TAB still had $54 million in cash - i.e. they had yet to spend their gift from the Government by 1 August.  That "gift" was to keep the codes going.  So they are either not keeping to their commitment to the terms of the grant OR it's been spent.  Either way something doesn't add up.  Maybe another bit of spin to justify the asset grab.  

So if the terms of payment have changed why did NZTR commit to a new IT system spending $1m up to 1 August this year with a lot more to come?

Is that another "screw you" finger to the industry? We'll delay payment to you but look after ourselves?

I bet anything you want that NZTR staff numbers and costs have increased.

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The more I look at the Annual Report the more apparent it becomes that they are neck deep in shyte and sinking.

They have no option but to play hard ball and renegotiate the two millstone contracts - the betting system and the broadcast/production contracts.  

Unfortunately they don't have much of a negotiating position as they have no alternatives to walk away to.  Plus I bet with the Fixed Odds system the provider has enough access to be abe to say "if you don't pay we'll just flick the switch off!"

Glenn Saville has finally finished - the genius that recommended and set this up.  Guess who he is going to go work for?

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