Thomass Posted December 7, 2020 Share Posted December 7, 2020 How good is this bloke at saying it how it is?? THE ONLY real Racing Journo left...the rest have bent over and taken a real wage...and not a bad word to be said And who can blame them? Anyway...essential reading here...and a pox on the previous National Gumments and their jobs for boys and girls policy... New boards for racing a chance to get transparency and accountability by Brian de Lore Published 4th December 2020 The Racing Industry is currently metamorhising into a new area of administrators and everyone at the coalface of the industry committed to racing should be nervous about what’s coming. The difference this time is that the industry has no room to move with an ASB bank debt of $45 million. If the wrong people get appointed again, we are sunk as an industry, and we have a history of poor administrators It’s not that people are saying they don’t like the look of the new NZTR board or will be opposed to the ministerial appointments to the new TAB board before they’re announced, it’s that these appointed bodies have no history of success, and the appointment process isn’t any better now than it was before. Look at the accompanying table and examine the Net Tangible Equity line from right to left. From plus $104 million in 2008 to minus $40 million today – 12 years of pain and money evaporated – not just money but also $144 million in lost equity. Now 2019 (4) 2017 (3) 2013 (2) 2008 (1) Net Cash/DEBT -$45m -$25m $40m $40m $65m Net Tangible Equity ($40m) ($20m) $56m $62m $104m Profit $135m $148m $140m $130m Expenses $207m $211m $200m $173m $141m Salaries/Wages $54m $61m $59m $41m $36m Employees on >$100k 151 136 135 93 38 1. Nathan Guy takes over as the Minister for Racing2. Nathan Guy Minister for Racing Minister and the reign of Glenda Hughes (Chairman) and John Allen (CEO) commences (2015).3. Winston Peters commences as Minister for Racing 4. RITA is formed and Dean Mackenzie appointed as Chairman and then CEO/Chairman (Dec 2019) But the level of wastage goes well beyond $144 million of tangible equity when you consider the cash cow known as the TAB, previously known as the New Zealand Racing Board, for all those years fuelled a ‘gravy train’ of spending the profits on themselves rather than increasing stakes to keep the industry healthy. We had legislation known as the Racing Act of 2003 but the very reason for the legislation to keep racing in a healthy state with responsible governance was completely ignored – yet there was no accountability. What is the point of passing legislation for racing if the incumbents decide to act in a less than above-board manner and ignore it? What is the point of passing legislation for racing if the incumbents decide to act in a less than above-board manner and ignore it? The Legislation Police do not exist, and it’s as much a problem today as it was then. Things started to go very wrong in the first decade of the 21stCentury when some bright spark decided to sell the four-story building owned at 180 Taranaki Street. The board took the view that NZTR shouldn’t be in the property business and, on March 1st, 2005, sold the building for $2.4 million – it had been inherited from the New Zealand Racing Conference. What would it be worth today? NZTR didn’t use all four floors and had rented out space to local businesses. After the Taranaki Street property was sold, NZTR resided rent-free with NZRB at Petone for the next three years but was then charged rent at commercial rates – which they have paid ever since. How to go from wealthy landlords to poverty-stricken tenants in one easy lesson? Fast forward to 2013 when that esteemed Minister of Racing Nathan Guy appointed fellow National cohort and National Party director Glenda Hughes Fast forward to 2013 when that esteemed Minister of Racing Nathan Guy appointed fellow National cohort and National Party director Glenda Hughes as Chair of the NZRB on August 1st – and let the nepotism commence. During the Hughes reign, the Petone property was sold for $9 million when on the books at $21 million. Hughes appointed John Allen (shifted sideways from Foreign Affairs) who appointed Glen Saville who went off to Ireland alone to strike up deals for a fixed-odds betting platform (FOB) with Paddy Power and Openbet. He, Hughes,and John Allen spent $50 million on the FOB and, with his board’s approval, committed the TAB to $17 million per year in updates to keep everything working. Glen Saville had previously worked for Tom Waterhouse Bookmaking for about three years. Saville has since gone from the TAB to reportedly work for Donbest in the USA, which is in the same ownership group as Openbet and Scientific Games based in Las Vegas. Decisions essentially made by four people oversaw this massive decline Decisions essentially made by four people oversaw this massive decline. Earlier in 2011, Michael Stiassny collected $77,000 in director fees in the same year he drove the Typhoon Betting Platform, which was written-off before it was ever turned on at a reputed overall cost of between $20 and $30 million. Stiassny also employed Andrew Brown as the CEO on an annual salary of almost $1 million. Brown was followed by Bayley who was followed by Allen – the triumvirate of tragedy. The 12-year decline is a real figure, yet the one constant during those 12 years is that you can pull up any of the annual reports, and the chairperson and CEO’s addresses all have a common theme of telling you how well they have done. The TAB Annual Report released last week has Executive Chair Dean McKenzie’s report reading as though he’d just won an Oscar at the Academy Awards. He finishes with a long list of acknowledgments. It reads in part: “And finally, I would like to acknowledge and thank the entire racing industry. At many times through the year, feedback from the industry has been robust. I put this down to the overwhelming passion through which participants approach the sport they love, combined with demands of such a comprehensive reform programme. “However, we are by no means in the home straight.”- Dean McKenzie McKenzie also said: “This year will go down as a year like no other. Yet, through it all, the new foundations for the industry are now firmly set. However, we are by no means in the home straight.” “Home straight.” You have to be kidding, we have three laps to go before the $45 million owed to the ASB is paid down and we can look at increasing stakes. The Executive Chair’s Report makes no mention of the bank debt or the plight of the owner who ultimately pays for the product on which the punters bet to provide the diabolically low level of prizemoney. They are the three issues that really matter; the rest is detail. But I am not telling you anything new. The narrative in all these annual reports can be filed under the ‘smoke and mirrors’ category, and anyone in racing who has bothered to read them will know that by now. The reason for dragging up this unsavoury history once more is not to make you feel ill, but to simply remind the industry that we could do without a repeat of these mistakes mentioned above, as the new CEO for the TAB is in the process of selection, and the ministerially appointed panel of Alan Galbraith QC, Liz Dawson and Anne Urlwin consider who the seven people will be to make up the new 7-person TAB Board. From their collective knowledge, Galbraith, Dawson and Urlwin will recommend to the Minister the people who will run wagering in NZ From their collective knowledge, Galbraith, Dawson and Urlwin will recommend to the Minister the people who will run wagering in NZ. Wagering is a very specialised business and once they have made their choices, will the Minister Grant Robertson (who’s wagering experience is that he likes a bet) be armed with the correct information to make educated decisions? RITA first advertised for CEO pre-COVID19, which delayed the process, but the whispers say two Australians were interviewed, and a third under consideration has withdrawn his application since learning the remuneration offered for the position was reduced to $350,000. The previous incumbent CEO, John Allen, was taking home $680,000. This year’s annual report identifies the top salary as $520,000, which is likely to relate to Executive Chair Dean McKenzie. It also says 51 employees earned $100,000 or more, which is a substantial increase numerically from the previous but may relate to severance packages more than annual packages. The pressure is on to get a board that can turn this ship around. The industry at large may be ambivalent about appointments, but the changing of the guard has never been so crucial because repeating history isn’t an option. Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted December 7, 2020 Share Posted December 7, 2020 There is nothing new in this article that the more astute BOAY posters haven't been posting since its inception. 2 Quote Link to comment Share on other sites More sharing options...
Mark D Posted December 7, 2020 Share Posted December 7, 2020 17 minutes ago, Chief Stipe said: There is nothing new in this article that the more astute BOAY posters haven't been posting since its inception. And before 2 Quote Link to comment Share on other sites More sharing options...
Joe Bloggs Posted December 7, 2020 Share Posted December 7, 2020 Yep, we all knew, no secret, BDL is only formalising this. Whats missing is the forensic investigation, then if applicable, legal action, if not criminal. You can't go to jail for stupidity, mores the pity, and god alone knows stupidity and fuckwitsm is alive and well in Petone, still. However the fact remains, if the TAB traded as insolvent, thats criminal, and if there is any impropriety with the running of NZRB/TR then retrospective charges should be laid.......surely? Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted December 7, 2020 Share Posted December 7, 2020 There should definitely be an investigation into the Openbet and Randall Broadcasting company setup. 1 Quote Link to comment Share on other sites More sharing options...
nomates Posted December 7, 2020 Share Posted December 7, 2020 I've got no idea why anybody would be investing in any substantial way in racing a horse in NZ at present . You only require a half decent ability to smell bullshit to be able to see thru the spin in McKenzie's report or BS's smoke and mirrors piece , both giving the impression that we are travelling better than Winx in a midweek mdn . There is no substantial or for that matter insubstantial plan telling participants how they are going to trade their way out of this shitfest . All the big hitters must be privy to the plan because no one in their right mind would spend the kind of money they do in this current racing climate . I said i wouldn't get back involved again until i seen some light at the end of the tunnel , 2-5 years ago my wife and i had the majority share in 5 horses , at present i feel like the tunnel is actually starting to collapse in on itself . They think the A/Ws will be a god send , good luck to them , but if the administrators continue to follow old models , as they appear to and looking at the figures we discussed last week around revenue and cost/stakes etc i can't see anything improving in the least for a very long time . 2 Quote Link to comment Share on other sites More sharing options...
Freda Posted December 7, 2020 Share Posted December 7, 2020 I've been following Mardigras ( in all his aliases) for a few good years now, was never smart enough to get the picture early on, but thanks to continued information, and the patient explanation when I just don't understand, it is a fact that everything he has predicted has come to pass. What is so frustrating is that those charged - and well paid - to know, just have no effing idea. 2 Quote Link to comment Share on other sites More sharing options...
nomates Posted December 7, 2020 Share Posted December 7, 2020 44 minutes ago, Freda said: What is so frustrating is that those charged - and well paid - to know, just have no effing idea. It's bad enough they have as you say " no effing idea " how to fix the issues , they actually appear not to have any idea where to start . The bit that pisses me the most is the amount of bullshit spin they put out that things are sweet and on the up and that we are all taken in by it . But there are people out there that are swallowing it hook , line and sinker . 1 Quote Link to comment Share on other sites More sharing options...
Huey Posted December 7, 2020 Share Posted December 7, 2020 (edited) 2 hours ago, nomates said: I've got no idea why anybody would be investing in any substantial way in racing a horse in NZ at present . You only require a half decent ability to smell bullshit to be able to see thru the spin in McKenzie's report or BS's smoke and mirrors piece , both giving the impression that we are travelling better than Winx in a midweek mdn . There is no substantial or for that matter insubstantial plan telling participants how they are going to trade their way out of this shitfest . All the big hitters must be privy to the plan because no one in their right mind would spend the kind of money they do in this current racing climate . I said i wouldn't get back involved again until i seen some light at the end of the tunnel , 2-5 years ago my wife and i had the majority share in 5 horses , at present i feel like the tunnel is actually starting to collapse in on itself . They think the A/Ws will be a god send , good luck to them , but if the administrators continue to follow old models , as they appear to and looking at the figures we discussed last week around revenue and cost/stakes etc i can't see anything improving in the least for a very long time . Those running the industry will take the road of which they believe there to be least resistance, I think we all know what that is. However that does appear to be a shitfest in itself , so one can only hope they are found out for the charlatans they are. The industry can be saved , but those in positions of power are not willing to deliver a reality check to the industry and that changes needed would not please a lot of the bigger players. But either way the game has "honey I shrunk the industry" written all over it in some format. Edited December 7, 2020 by Huey 1 Quote Link to comment Share on other sites More sharing options...
Freda Posted December 7, 2020 Share Posted December 7, 2020 13 hours ago, Chief Stipe said: There is nothing new in this article that the more astute BOAY posters haven't been posting since its inception. True. And, although I count B.de L. as a personal friend, I told him from the start that backing Winston was dodgy. Think he realises that now. Also, as a former member of the Ra Ora staff and a close friend and associate of John Messara, there was, inevitably, a bias towards the Waikato elite, that didn't sit well with the overall industry future IMO. Quote Link to comment Share on other sites More sharing options...
curious Posted December 7, 2020 Share Posted December 7, 2020 (edited) It's really just an account of well known history that was all pretty predictable and really doesn't help much with what needs to happen now, nor what did then other than that the persistence with the same old same old didn't and won't work except to temporarily benefit a few. Edited December 7, 2020 by curious Quote Link to comment Share on other sites More sharing options...
curious Posted December 7, 2020 Share Posted December 7, 2020 15 hours ago, Thomass said: THE ONLY real Racing Journo left.. A racing journo? Are you serious? Quote Link to comment Share on other sites More sharing options...
Thomass Posted December 7, 2020 Author Share Posted December 7, 2020 1 hour ago, curious said: A racing journo? Are you serious? Well that's the profession he earnt his stripes...Editor Bloodhorse, Australian Journo, Author...wine merchant Are you saying the Vino's taken over his boner fidees? Quote Link to comment Share on other sites More sharing options...
curious Posted December 7, 2020 Share Posted December 7, 2020 Just now, Thomass said: Are you saying the Vino's taken over his boner fidees? Something has if he ever had them. Biased, political and seems to change his mind about what is a good idea every few months depending whether he's running with the hares or hunting with the hounds. Do you think the above repetitive nonsense amounts to journalism? 1 Quote Link to comment Share on other sites More sharing options...
Thomass Posted December 7, 2020 Author Share Posted December 7, 2020 Actually you should contact him and suggest doing a podcast to see who has the stronger arguments when it comes to superior boners... It should be entertaining and informative...which is what real Journalism is Quote Link to comment Share on other sites More sharing options...
The Centaur Posted December 7, 2020 Share Posted December 7, 2020 Getting a simple message to racing participants isn't easy. My contribution has been getting across the fact that the TAB is not a $2.5billion enterprise rather a $450million one. A year ago I read one of Garry Chitticks pieces on his studs website and even he referred to the TAB as a $2 billion business. The point might seem trivial to some but its the start of the wastage. With a $2.5billion enterprise you need to be paying the salaries for that size business then all the way down the chain everyone gets a cut of the billions. Except there are no billions its a convenient lie for senior managers never to contradict. 2 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted December 7, 2020 Share Posted December 7, 2020 What I can't fathom is how not many seem to read the annual reports and actually analyse them. Or those that believe the BS spin by both NZRB and NZTR and promote it! That latest annual report is NOT good. Nothing has changed - if anything it has got worse. Yet where are the Trainers Association, Owners Association and any other stakeholder group yelling for action? I just can't believe that everyone has bought into the lastest spin bullshit notice to owners that Saundry has published this past week. It is clear that they have their sights set on grabbing the assets of those that have performed well, even though they have had everything against them, to fund the admin largesse who STILL HAVEN'T made any fundamental change! 2 Quote Link to comment Share on other sites More sharing options...
nomates Posted December 7, 2020 Share Posted December 7, 2020 4 minutes ago, Chief Stipe said: That latest annual report is NOT good. Nothing has changed - if anything it has got worse. Yet where are the Trainers Association, Owners Association and any other stakeholder group yelling for action? The owners assn i don't get , they should be jumping up and down after the increase in jocks fee along with training fees going up annually . Now the TA , they're as weak puddle water , they should be prosecuted for theft , people being forced into joining them to get their license , and what do they get for their money , probably less than the one time i got conned into joining 10 years ago , which was SFA then . The big names are just going to continue to get as much out of the game as they can before the lights are turned off , most can just up sticks and jump the pond , the weak will just get buried . That IMO is why no one questions the bullshit reports or the financial reports . Quote Link to comment Share on other sites More sharing options...
nomates Posted December 7, 2020 Share Posted December 7, 2020 28 minutes ago, The Centaur said: Getting a simple message to racing participants isn't easy. My contribution has been getting across the fact that the TAB is not a $2.5billion enterprise rather a $450million one. A year ago I read one of Garry Chitticks pieces on his studs website and even he referred to the TAB as a $2 billion business. Mr Chittick is in the game of bullshit and spin , so perhaps he's been talking it for too long to recognize it when he see's it . Studs are another part of the industry that needs NZ racing to meander along as it is for as long as possible , if racing stumbles the breeding sector will take a hit , they still need NZ racing . Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted December 7, 2020 Share Posted December 7, 2020 What about Windsor Park that owns the Parnell building at 60 Stanley Street that has TAB NZ housed in it. They were also involved in the Randall pillage on the broadcasting contract. Now NEP which do Trackside broadcasting/production are housed in that building! Quote Link to comment Share on other sites More sharing options...
nomates Posted December 7, 2020 Share Posted December 7, 2020 1 minute ago, Chief Stipe said: What about Windsor Park that owns the Parnell building at 60 Stanley Street that has TAB NZ housed in it. They were also involved in the Randall pillage on the broadcasting contract. Now NEP which do Trackside broadcasting/production are housed in that building! I would call the Windsor folk smart , it's the TAB and associates that are the dumb fucks . Quote Link to comment Share on other sites More sharing options...
The Centaur Posted December 8, 2020 Share Posted December 8, 2020 9 hours ago, nomates said: Mr Chittick is in the game of bullshit and spin , so perhaps he's been talking it for too long to recognize it when he see's it . Studs are another part of the industry that needs NZ racing to meander along as it is for as long as possible , if racing stumbles the breeding sector will take a hit , they still need NZ racing . Chittick was at one time chairman of the Racing Board. What hope has the industry got when some one like that can't get it right. Quote Link to comment Share on other sites More sharing options...
Freda Posted December 8, 2020 Share Posted December 8, 2020 8 hours ago, The Centaur said: Chittick was at one time chairman of the Racing Board. What hope has the industry got when some one like that can't get it right. I'm also fairly sure he presided over the instigation of 'grading' clubs - A,B,C,D - which certainly influenced the percentage of turnover they received and was to presage the absurd 'tiered' system which has crept up upon us. Quote Link to comment Share on other sites More sharing options...
Joe Bloggs Posted December 8, 2020 Share Posted December 8, 2020 Who died and made Chittick God? it appears that fellow has a lot to answer for. Quote Link to comment Share on other sites More sharing options...
curious Posted December 8, 2020 Share Posted December 8, 2020 50 minutes ago, Joe Bloggs said: Who died and made Chittick God? it appears that fellow has a lot to answer for. It was short term gain for long term pain I'm afraid. 1 Quote Link to comment Share on other sites More sharing options...
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