HRNZ Chair Report

[JJ Flash]

Available in full on Website and see Karrots picked up on it elsewhere re Keyboard Warriors but for me 2 matters of interest.

The good news is that even without domestic racing, the TAB continued to trade at expected levels and our funding for September is guaranteed.

The other thing i noticed was the increase in Fixed odds yield. Restricting Snipers has possibly  had some effect here.🤭

Edited September 7, 2021 by JJ Flash

[Chief Stipe]

From the Chair

7 September 2021 , News

Industry Update from John Coulam, HRNZ Chair

The last three weeks has once again been a difficult time for the industry and the country as we were plunged into lockdown and racing came to an abrupt halt. The good news is that even without domestic racing, the TAB continued to trade at expected levels and our funding for September is guaranteed.

I know that there was a level of frustration around Orders and Directions during this time. At HRNZ we followed the previous orders to the letter until such time as the appropriate Government departments allowed amendments.  My thanks to Gary and the CEO’s of the three codes, as part of the Racing NZ executive, for their work in getting racing up and going again.  We cannot take this opportunity for granted, all participants must adhere to the Orders and Directions for racing behind closed doors and at different levels. Anything less than a strict enforcement by the clubs hosting the meetings may well see racing halted again.

One of the disappointing aspects of lockdown is that it gives the keyboard warriors time on their hands to throw grenades. Behind the HRNZ brand sit real people, directors, employees, trainers, drivers and other stakeholders and their families. In the words of our Prime Minister, “Be kind to one another.”

As directors we are people of hope, optimistic, willing to dare, to challenge the status quo.  To be content with the status quo and to dwell on negativity is not productive and serves no good at all. These are exciting times for our industry as we reshape and focus on our sustainability and social licence.

I am encouraged by the ongoing consultative work that has gone on this year exploring what the racing calendar might look like from 1 January 2022. Whatever is decided will be open to constant review, to further help us look at the best ways to drive up gross betting revenue for our code. Alongside any proposed changes, HRNZ will be contracting an analyst and working with the TAB to look at every aspect of racing to see where the best returns to the industry are and to further explore opportunities.

The club and kindred body representatives attending the HRNZ Annual Conference on 15/16 October will receive feedback on what’s been achieved as a result of our Industry Day held late last year and what the new racing programme calendar will look like.

Spare a thought for the industry participants in both Westport and Kumeu who have suffered through recent natural disasters. Apart from any personal losses, both clubs have had significant damage to their tracks. These unfortunate events are a timely reminder to clubs to review their insurances.

Provided for your information is the traffic light performance indicators for the season just ended.

Key Performance Indicators

Below are the performance indicators as at end of season 2020/21.

John Coulam, Chair
Harness Racing New Zealand Inc
September 2021

 

[Chief Stipe]

Just now, Chief Stipe said:

One of the disappointing aspects of lockdown is that it gives the keyboard warriors time on their hands to throw grenades. Behind the HRNZ brand sit real people, directors, employees, trainers, drivers and other stakeholders and their families. In the words of our Prime Minister, “Be kind to one another.”

He must be referring to @JJ Flash who has consistently denigrated Harness Racing.

[Chief Stipe]

3 minutes ago, Chief Stipe said:

The good news is that even without domestic racing, the TAB continued to trade at expected levels and our funding for September is guaranteed.

Really?  So that means that all revenue was sourced from Overseas Racing predominantly Australian racing.

Although trading at "expected levels" is a bit vague.

[Karrotsisback]

26 minutes ago, Chief Stipe said:

He must be referring to

Thought possibly I was one of those they were talking about, with my commentator genade, followed up by making a prediction on Time-line by 2032 North would fall. Its opinion, not grenade tho. Solely based on how things stand as we speak today & think its a fair call. (HOPE THINGS CHANGE).

On top of North currently in downward Freefall.

Lincoln Farms is going 2027, meaning the lease is handed back to new owners.

Junior drivers races in North at continued Freefall rate, will be lucky if they get 6 off the ground per season, by year 2026.

Season 2021 had approx a dozen Jnr races North. Think its fair at this current rate based on that, to halve in 5 years to 6 races. Then 1/2 it again in another 5 years to 0 races.

I am still in lockdown level 4. So still lots of time on hands. But started a positive thread - memories. Feel free anyone to join in.

[Chief Stipe]

The devil is always in the detail.  Doing comparisons between last season and the previous season is a moot exercise as you have to adjust the data for Covid to get any meaningful comparison.  For example comparing Total Stakes is meaningless as is the green dot.  A 27% increase year on year looks great but is skewed by Covid.  So the comparison should be with the previous season.  Would it be so hard to include 3 years for comparison?  

 Note the Harness TAB sourced revenue for the 2018/19 season was $44m.

$33m was distributed in Stakes for the 2020/21 Season.  

I note that HRNZ is heading down the same path as NZTR of putting a veil over transparency by removing prior year accounts.  The HRNZ Annual Accounts for the last year doesn't mention ANY core performance criteria.  The majority of the document are Financial Notes to the Accounts.

[JJ Flash]

59 minutes ago, Chief Stipe said:

He must be referring to @JJ Flash who has consistently denigrated Harness Racing.

More bullshit attacks from you- please show us all where i have constantly denigrated HRNZ. You wont  because  i haven't 

[JJ Flash]

36 minutes ago, Karrotsisback said:

But started a positive thread - memories.

Well done but from memory no matter what some post they will be attacked. Chiefy will argue with posters for the sake of it as you and others have regularly pointed out recently. 

Now he's attacking HRNZ chair for not providing enough financial  details so he carry out a forensic examination even though its clear he has no academic qualifications in that specialized area.

Edited September 7, 2021 by JJ Flash

[Chief Stipe]

20 minutes ago, JJ Flash said:

Now he's attacking HRNZ chair for not providing enough financial  details so he carry out a forensic examination even though its clear he has no academic qualifications in that specialized area.

No I'm asking for the same amount of information that all INDUSTRY STAKEHOLDERS received in the past.  If you want to live in a la la  world where you accept all the BS and spin rather than a transparent and open one the so be it.  Many of us don't want that.

The last time a Racing Administrator went down the path of attacking "keyboard warriors" didn't end too well for one Mr Purcell.  It didn't end too well for a Mr Allen when he started fudging and hiding the industry statistics.

As for having appropriate academic qualifications I actually do have them but that is irrelevant.

[Chief Stipe]

29 minutes ago, JJ Flash said:

More bullshit attacks from you- please show us all where i have constantly denigrated HRNZ. You wont  because  i haven't 

Go back and have a look at your own posts.  

[Karrotsisback]

58 minutes ago, JJ Flash said:

Well done

Thanks 😄

 

[JJ Flash]

3 hours ago, Karrotsisback said:

Thanks 😄

 

Your welcome.

[JJ Flash]

4 hours ago, Chief Stipe said:

please show us all where i have constantly denigrated HRNZ. You wont  because  i haven't 

Simple enough question after you said i constantly denigrated HRNZ. Your non reply below  says you cant find any such posts. More of your usual shite

4 hours ago, Chief Stipe said:

Go back and have a look at your own posts.  

You really are a Cockwomble

Edited September 8, 2021 by JJ Flash

[Chief Stipe]

42 minutes ago, JJ Flash said:

Simple enough question after you said i constantly denigrated HRNZ. Your non reply below  says you cant find any such posts. More of your usual shite

You really are a Cockwomble

Would one post or two suffice?

[Gospel of Judas]

Pretty funny when go out after the Keyboard warriors on the internet. Means seriously lost the room! and pressure is building up!. Kind lost the argument! and pressure is high!. Why is that? are not accountable enough or management not up to the job?. Pretty strange way to run a business or a industry.

[Gospel of Judas]

42 minutes ago, JJ Flash said:

Simple enough question after you said i constantly denigrated HRNZ. Your non reply below  says you cant find any such posts. More of your usual shite

You really are a Cockwomble

Starting to sound like that Journalist use flat with Ardern... One got a few things to hide as well.

[JJ Flash]

10 minutes ago, Chief Stipe said:

Would one post or two suffice?

That would not be a reasonable statistical sample for some one who said 

6 hours ago, Chief Stipe said:

He must be referring to @JJ Flash who has consistently denigrated Harness Racing.

As i said earlier you really are a Cockwomble the way you perform on here

[Rangatira]

8 hours ago, JJ Flash said:

The other thing i noticed was the increase in Fixed odds yield. Restricting Snipers has possibly  had some effect here.🤭

Plugging the leaks most definitely on the money.

[Rangatira]

2 hours ago, JJ Flash said:

You really are a Cockwomble

 

[Chief Stipe]

1 hour ago, JJ Flash said:

That would not be a reasonable statistical sample for some one who said 

As i said earlier you really are a Cockwomble the way you perform on here

My apologies.  On reviewing your posts many of them are attacks on Brodie or me.  Is Michael your middle name?

Many of them are just regurgitating the marketing BS and spin without any cogent analysis.

But you do often put the boot into harness - 

On 30/08/2021 at 7:01 AM, JJ Flash said:

When can we expect your to start moaning about All Stars /Cullen winning all the big races and it being unfair and not good for the dying sport of harness

On 29/08/2021 at 11:43 AM, JJ Flash said:

Dont forget Ranga that BGP can get large amounts on as well, and rightly so. This is TB's , the code that will survive🤭

[Chief Stipe]

Perhaps our resident expert @JJ Flash can help me understand the HRNZ statistics that he has seemingly lauded.  I mean my qualifications mean nothing but presumably he has a fist full of them and can assist in our wider understanding.

The fact is comparing 2019-20 with 2020-21 is nonsensical and pointless.  A more relevant comparison would have been 2018-19 with 2020-21.

I've taken the liberty of identifying those stats that my irrelevant professional training suggests are irrelevant.  Why are they irrelevant?  The rule of thumb with choosing what to measure is firstly can you actually measure it and secondly can you do anything to favourably change that metric.  

Correct me if I'm wrong @JJ Flash but the stats on Average Winning Dividend and # Races favourite less than $2 and $1.50 are nonsensical measures.  I'm not sure how relevant that starting a race within 60 seconds of advertised start time is either.  

@JJ Flash you have made a number of comments on the "improvement in Fixed Odds yield" and the increase in Fixed Odds turnover.  Increases in Fixed Odds Turnover has been happening year on year since Fixed Odds was introduced.  The majority of that turnover having been cannibalized from the Tote turnover.  Fair enough if your competitors are offering that product then you have to as well.  The nub of course is that the yield from Fixed Odds is significantly less than from the Tote.  The improvement in yield for Fixed Odds is great but is it enough to compensate for the loss in Tote yield.  With the latter TAB NZ has amongst the highest tote takeout rates and therefore further skews punters towards Fixed Odds.  This is a bit of a downward spiral as the more punters that move to Fixed Odds the lower the Tote pools and the less attractive they become. 

Now you could arguably say that Fixed Odds turnover and yields is an irrelevant statistic for HRNZ to measure - HRNZ has zero control over those metrics.  Total Revenue is the important measure as it has a direct relationship to the number of, the quality of and the size of race fields. 

A key statistic that is missing is Imported Race Turnover.  Where is this turnover hidden below?  HRNZ can have some influence on this statistic.

An interesting statistic below that Woodham and Coulam if they are as sharp as some believe will be right on top of is the Exported Turnover figure.  Essentially between the two years the exported turnover was the same $81m vs $83m even though there was a 20% increase in the number of Harness races.  Doesn't that raise of red flag of WHY?  We've seen utterances from Woodham about forming a partnership with an overseas provider to supposedly address this.  But what does that actually mean?  Who was responsible for exporting Harness races last year?  Did Harness get dicked by the Thoroughbreds?

As I always say the devil is in the detail.

Yours truly, A Keyboard Warrior.

PS:  Attention HRNZ can you republish the HRNZ KEY STATISTICS including the 2018/19 Actuals?  Or can you put back up on your website the 2018/19 detailed metrics and I can do it for you.

 

 

 

[Brodie]

Yield means buggerall when compared to net profit.

Yes good to have a good yield but it is the bottom line that matters!

Increase the turnover and the profit will normally be much higher!

The NZ TAB have increased the yield on the back of having far less turnover than they could have, their business plan is very flawed!

Turn off the punters away from offloading and you lose them from the industry, which reduces owners and also introduction of new people to the racing industry.

We are seeing that now but all the Suits at the TAB are interested in is their big fat salaries.

 

Edited September 8, 2021 by Brodie

[the galah]

The horses starting prices are relevant as hot favorites suppress betting. The less hot favorites,the more the punter will participate.

As to races starting on time. Well thats relevant,especially if the race is being exported to say australia. Their trackside channels transfer races and don't show others imported races if they don't start on time. Late starting races would discourage punter participation.

I agree with you on the fixed odds increasing at the expense of the tote pools. This is not a good thing.Its obvious more are betting on fixed odds due to betting larger amounts into small tote pools reduces the returns for the punter. Then of course successful ff punters having bet size limited which leads to less overall punter participation.

What about co mingling. If you ring the Tab help line they will tell you some pools aren't co mingled,yet some they tell you aren't do appear to be co mingled.The reality of exporting harness races to say australia is our product,is i believe tarnished by the less attractive,less integrity perceived australian harness  product. Therefore you are always going to struggle to get greater punter participation overseas . That unfortunately beyond nz control.

[Chief Stipe]

15 minutes ago, the galah said:

The horses starting prices are relevant as hot favorites suppress betting. The less hot favorites,the more the punter will participate.

Where is the quantitative evidence to support that?  

Is the impact greater or less than having a field smaller than 8 horses?

Regardless what can HRNZ do change the favourite metric?  SFA.

[Chief Stipe]

18 minutes ago, the galah said:

As to races starting on time. Well thats relevant,especially if the race is being exported to say australia.

But what impact does 60 seconds have?  Should the metric be less than 3 minutes?

What is the difference in revenue for a race that runs 1 min 10 seconds late as opposed to running on time?

There was a 6% "improvement" in this metric but only a 2% improvement in export revenue.  The fact is export revenue is dictated by broadcasting decisions that appear to be made outside the direct input of HRNZ.  Woodham as a past employee of TAB NZ will be across that though won't he?