More of the Same!

[Huey]

 

I'd expected better from someone whose family has such a rich history in the sport (even he declares it as such) , but it looks as though we are going down the same route as other administrations but even worse, declaring ATR a success before it has even left the starting gates and has the handicapper in the ownership assisting it to get over the line is a bit rich in my view.

I have always been a proponent of better "Utilisation" of assets against the "Rationalisation" of assets. However that would actually require vision and work to achieve and would in my view give the industry a more sustainable future than what we are heading down, its so easy to sell the family jewels and just sit back and watch it be wasted!

 

 

Maximising return from assets vital to healthy racing future

 

NZ Racing Desk

12 April 2022

Further rationalisation to maximise the full potential of remaining assets is paramount to the future success of the New Zealand racing industry.

That’s the view of New Zealand Thoroughbred Racing chief executive Bruce Sharrock, brother of Group One-winning New Plymouth trainer Allan, who was promoted to the top role after serving as Chief Operating Officer.

While he has only had his feet under the desk for a little over a week, Sharrock is convinced a united approach is the way forward.

“At a very high level, if you look around the country and look at the asset base that the industry has, it would be safe to say, including Ellerslie, there would be a billion dollars’ worth of asset,” he said.

“You could argue that it is not returning what it should to the industry. If we can work together and rationalise the assets and start generating a reasonable term, and let’s assume five per cent which I think is conservative, that’s another $50 million running into our business annually.

“That all of a sudden, transforms the industry for generations beyond ours.”

Further tracks closures will also be part and parcel of the way forward.

“I think there is further rationalisation of venues to come, without a doubt. There will be a feeling out there that we will need more tracks and we have come under pressure because we’ve got Te Aroha and Ellerslie both undergoing renovation,” Sharrock said.

“It has put a lot of stress on the north, but once we have worked through that I think ultimately clubs will still have their day, albeit at another location.

“Again, some are finding that it is costing a lot of money just to keep them ticking over.

“Where you’ve got an asset worth multi-million dollars, and I’m throwing this out there anecdotally, raising sheep, we need to be smart with it and turn it into ongoing revenue for the industry.”

Sharrock is mindful of the pace of change and believed there was cause for optimism on that front.

“I’m sensing some real momentum around changes. People are accepting that if we do want to be regarded as a highly regarded sports industry in a decade’s time, we need to make some serious moves in the next short while,” he said.

“Probably the most positive is the amount of discussion going on at club level, around clubs working together for better outcomes.

“Clearly, this was led by ATR with Ellerslie and Counties coming together and there are some very good conversations going on around the country.

“That would see potentially the consolidation of our assets. I think the biggest positive for the industry is to look to utilise our latent assets and generate ongoing inter-generational revenue from them, it will set the industry out for its future.

“There are a number of green shoots within the industry, purely from a wagering point of view things are going really well.

“That’s the engine of the industry, but clearly we have issues around our infrastructure, in terms of tracks and we’re currently embarking on a plan to improve those within the next two or three years.”

Sharrock acknowledged that not all change would be embraced by all, but moving with the times is imperative.

“Clearly we have got the SNS that is going to run out toward the end of this year, that’s the Single National System so it is the re-creation of our operating system,” he said.

“That will be confronting for some because it means a change to the way they have done their business. But again, it is one of these evolutions and we have to start moving with the times.

“Ask anyone, how did you use to bank 20 years ago? How did you get insurance? How did you get your television and everything has changed and we need to move forward.”

Recruiting for the future was another area of focus and the Racing Business Associates scheme has made a promising start.

“Fundamentally, what we are looking to do is to bring in good people who are willing to learn our business and ultimately play a role with NZTR or in a broader sphere,” Sharrock said.

“The quality of our administrators has been overlooked for some time and the response we have had has been outstanding.

“I am excited to get some of those people and those who have a desire to learn from an administration point of view.”

Sharrock said training and recruitment, with an accent on youth, is also underway in another area.

“We need to continue to train and develop our apprentice base as well and that needs an overhaul and is in the process of happening,” he said.

“There are a couple of exciting things that will come to light in the next month or month and a-half. We will be looking to encourage more quality young people, horsemen and women into the industry.”

Sharrock also paid tribute to NZTR’s ability to negotiate its way through the pandemic.

“I have to say that one thing I am immensely proud of the team, and prior to my involvement, and also all the stakeholders who got through two years of COVID-interrupted business,” he said.

“While restrictions have caused huge amounts of frustration, particularly for those in the north who were locked down for four months, the fact is we continued to trade and operate all the way through.

“I am au fait with a lot of other sports and those I am aware of in this country, cricket, rugby, netball, rugby league, have all had interrupted schedules.”

Sharrock speaks from lengthy experience through his involvement with other sports.

“The business that I have had, and am still a shareholder in, was a global sports management business,” he said.

“It acts for professional players at rugby and rugby league and also acts for coaches and everybody else in those industries, as well as a consultancy business to clubs and is quite broad now.”

Sharrock’s family has a long-time involvement with racing, his aforementioned brother Allan is a successful trainer, as was his late father Bob.

“I have always loved this industry and the way I have viewed it is that it is a sport and I just think that we have to be at that table and have conversations with other sports,” he said.

“It is one of my ambitions that we have got to be taken seriously. When a rugby player talks about their future, I want the jockeys to be in the same conversation or a trainer, who are like the high-end coaches and conditioners in sport.

“They are doing the same thing, but that detail is lost on the great population and we have to do better.”

[Doomed]

It is a quite a poorly written article really and he doesn't sound all that bright, but I don't know the man at all so perhaps he was just poorly quoted.

To give him credit thought he does seem to accept that the New Plymouth racecourse is a goner so he can't be accused of bias. Perhaps he is going to go down the line of getting rid of the poorly performing racetracks first rather than just the smaller provincial ones. He seems to suggest we are better off selling up some of the white elephant big city tracks, which is a subtle change in appproach from the previous admonistration.

[mikeynz]

45 minutes ago, Doomed said:

It is a quite a poorly written article really and he doesn't sound all that bright, but I don't know the man at all so perhaps he was just poorly quoted.

To give him credit thought he does seem to accept that the New Plymouth racecourse is a goner so he can't be accused of bias. Perhaps he is going to go down the line of getting rid of the poorly performing racetracks first rather than just the smaller provincial ones. He seems to suggest we are better off selling up some of the white elephant big city tracks, which is a subtle change in appproach from the previous admonistration.

So if New Plymouth is a goner, what next for Taranaki.?

[Freda]

1 hour ago, Doomed said:

It is a quite a poorly written article really and he doesn't sound all that bright, but I don't know the man at all so perhaps he was just poorly quoted.

To give him credit thought he does seem to accept that the New Plymouth racecourse is a goner so he can't be accused of bias. Perhaps he is going to go down the line of getting rid of the poorly performing racetracks first rather than just the smaller provincial ones. He seems to suggest we are better off selling up some of the white elephant big city tracks, which is a subtle change in appproach from the previous admonistration.

I don't see any indication that he thinks the 'white elephant big tracks'  need to be sold, apart from an acknowledgement that billions of dollars is sitting in property not producing.

He's right,  and realistically Ellerslie is the prize  [ maybe Riccarton too? ] but there isn't a snowballs chance in hell that either will be sold.

As for 'training and recruitment'  the apprentice system as it stands is a bloody shambles.

Edited April 12, 2022 by Freda

[Huey]

This I find interesting, the industry desperately needs staff now and whilst an influx of young persons into the industry would be warmly regarded it feels like the opportunity has gone or its well and truly too late, whilst he can't be blamed for that and its another area of neglect from BS and his cohorts, it still seems like dreamland stuff getting anything of significance going.

 

“We need to continue to train and develop our apprentice base as well and that needs an overhaul and is in the process of happening,” he said.

“There are a couple of exciting things that will come to light in the next month or month and a-half. We will be looking to encourage more quality young people, horsemen and women into the industry.”

[Huey]

12 minutes ago, Freda said:

I don't see any indication that h thinks the 'white elephant big tracks'  need to be sold, apart from an acknowledgement that billions of dollars is sitting in property not producing.

He's right,  realistically Ellerslie is the prize, but there isn't a snowballs chance in hell that it will be sold in its entirety.

As for 'training and recruitment'  the apprentice system as it stands is a bloody shambles.

Same here none of it reads to me like those are priorities for this administration

[Doomed]

53 minutes ago, Huey said:

Same here none of it reads to me like those are priorities for this administration

I assumed he meant that poorly performing tracks like New Plymouth that have no upside, and will always be a bog no matter what you spend on them, and white elephants like Trentham that will need multiple millions spent on them to bring them up to standard would go first. Surely that is what rationalisation and better use of assets means?

[Mark D]

What a joke.  Won't make any difference because the industry is stuffed but really "rationalisation of assets"(which the NZTR do not own) is the best you can offer? Hopeless

[Huey]

33 minutes ago, Doomed said:

I assumed he meant that poorly performing tracks like New Plymouth that have no upside, and will always be a bog no matter what you spend on them, and white elephants like Trentham that will need multiple millions spent on them to bring them up to standard would go first. Surely that is what rationalisation and better use of assets means?

OK, I read it a little differently.

I think what he means is we are going to steal(rationalise) the assets off smaller clubs in particular (that we have been deliberately neglecting and excluding from the industry over the past several years) to prop up/improve (waste) money on the venues that are significantly underperforming who have been getting subsidised by the industry for years.

His comments about sheep are just plain bizarre and rather ignorant, in particular when several of the venues he is referring to have been pushed down that avenue by poor decision making and policy inflicted upon them by the likes of  NZTR.

[Freda]

11 minutes ago, Huey said:

OK, I read it a little differently.

I think what he means is we are going to steal(rationalise) the assets off smaller clubs in particular (that we have been deliberately neglecting and excluding from the industry over the past several years) to prop up/improve (waste) money on the venues that are significantly underperforming who have been getting subsidised by the industry for years.

His comments about sheep are just plain bizarre and rather ignorant, in particular when several of the venues he is referring to have been pushed down that avenue by poor decision making and policy inflicted upon them by the likes of  NZTR.

That's how I read it too, Huey...notwithstanding the acknowledgement about Ellerslie, etc.   And what the hell is wrong with grazing sheep [ income, after all ] on country tracks ?

There won't be any sheep grazing in the infield at Trentham or Riccarton.

[holy ravioli]

Clearly delusional....'“The quality of our administrators has been overlooked for some time and the response we have had has been outstanding.'

They all get on the train with ...rose coloured ..glasses.

[Mark D]

As was noted at the time his earlier appointment to the newly created COO was nothing to do with his experience, ability or acumen but because of who his mates were eg Dean McKenzie.  This was clearly a precursor to his appointment to the CEO role - claiming that he had previous experience in horse administration.  Sometimes these "out of left field" appointments can have positive effects - giving fresh eyes, new ideas etc etc.  This was obviously not the reason he was brought in - it was to maintain the status quo.  Not surprising really - given that a large amount of his experience was as a sports agent which has no relevance to the position.

[curious]

2 hours ago, Huey said:

OK, I read it a little differently.

I think what he means is we are going to steal(rationalise) the assets off smaller clubs in particular (that we have been deliberately neglecting and excluding from the industry over the past several years) to prop up/improve (waste) money on the venues that are significantly underperforming who have been getting subsidised by the industry for years.

His comments about sheep are just plain bizarre and rather ignorant, in particular when several of the venues he is referring to have been pushed down that avenue by poor decision making and policy inflicted upon them by the likes of  NZTR.

What is the matter with them? They are either badly confused, dementia comes to mind, or have absolutely no business nous. Why do they think that the tracks that they don't own - clubs and communities do - are their biggest asset?  Isn't the racing product NZTR's biggest asset? Isn't that what generates their revenue? Isn't that what they are supposed to tend to through improving things like handicapping, programming, personnel development and care, integrity, retaining horses, ensuring race day surfaces are safe and consistent and that the race day product is competitive and builds revenue?

[Huey]

16 minutes ago, curious said:

What is the matter with them? They are either badly confused, dementia comes to mind, or have absolutely no business nous. Why do they think that the tracks that they don't own - clubs and communities do - are their biggest asset?  Isn't the racing product NZTR's biggest asset? Isn't that what generates their revenue? Isn't that what they are supposed to tend to through improving things like handicapping, programming, personnel development and care, integrity, retaining horses, ensuring race day surfaces are safe and consistent and that the race day product is competitive and builds revenue?

Well for starters they see it as an easy fix, sell up assets and spend (waste) money on areas that they believe will improve the product, their track record is such that they should be no where near this sort of thing. 

Good comment regarding product being the asset, what do they think is being produced at these places with sheep grazing on them, thats right in most instances product for the industry.

It's the same playbook wev'e seen for the last 20-30 years, they think they'll retain the same ownership,purchasing and general interest in the sport by centralising it in a few locations , when thats been proven to not be the case with tracks that have gone from venues in the past.

I had hoped the CEO would have a bit more nous an empathy for the industry at large , but reading this sort of thing indicates that he could be the worst of the lot!

[Huey]

29 minutes ago, Mark D said:

As was noted at the time his earlier appointment to the newly created COO was nothing to do with his experience, ability or acumen but because of who his mates were eg Dean McKenzie.  This was clearly a precursor to his appointment to the CEO role - claiming that he had previous experience in horse administration.  Sometimes these "out of left field" appointments can have positive effects - giving fresh eyes, new ideas etc etc.  This was obviously not the reason he was brought in - it was to maintain the status quo.  Not surprising really - given that a large amount of his experience was as a sports agent which has no relevance to the position.

Exactly but coming from a racing family you would expect him to have a bit more empathy for the industry at large , that now appears to definitely not be the case and this looks like a terrible appointment for the  wider industry. He appears to be following the script set in motion by his predecessor .

The last thing this industry needs is to become even more fragmented and disillusioned and that'll defintely happen if they start helping themselves to what isn't theirs.

[Doomed]

1 hour ago, Huey said:

 

I had hoped the CEO would have a bit more nous an empathy for the industry at large , but reading this sort of thing indicates that he could be the worst of the lot!

I was thinking much the same myself. Who would ever have thought we could actually end up with someone worse than those who have gone before.

It sounds like he is just a lackey put in there to do what he's told and toe the party line.

[Freda]

The silliest point of all - the small country/provincial tracks are worth peanuts, compared to their city cousins.  Those are the ones that need 'rationalisation', aren't they?

[Doomed]

4 minutes ago, Freda said:

The silliest point of all - the small country/provincial tracks are worth peanuts, compared to their city cousins.  Those are the ones that need 'rationalisation', aren't they?

I don't think that fits their narrative so it tends to be ignored.

I am waiting for some figures about cost savings and turnovers from the meetings transferred from closed tracks, Waikouaiti, Motukarara, Wairoa etc. Even the meetings transferred to the Cambridge AWT. They must have quite a lot of information regarding all those meetings, and some others, by now so surely we all deserve some insight into the benefits of the restructuring so far.

How hard is it to say Waikouaiti moved to Wingatui, total costs were $???, which was down $???. Total income was up $???, made up of turnovers up $???, gatetakings up $???, sponsorship up $???

Surely if they revealed that information some people who might be a bit dubious about the merits of the scorched earth policy might change theor mind?

[Huey]

2 hours ago, Doomed said:

I don't think that fits their narrative so it tends to be ignored.

I am waiting for some figures about cost savings and turnovers from the meetings transferred from closed tracks, Waikouaiti, Motukarara, Wairoa etc. Even the meetings transferred to the Cambridge AWT. They must have quite a lot of information regarding all those meetings, and some others, by now so surely we all deserve some insight into the benefits of the restructuring so far.

How hard is it to say Waikouaiti moved to Wingatui, total costs were $???, which was down $???. Total income was up $???, made up of turnovers up $???, gatetakings up $???, sponsorship up $???

Surely if they revealed that information some people who might be a bit dubious about the merits of the scorched earth policy might change theor mind?

You'll of course get no information at all with regards to that and if you did it would come with an asterisk blaming Covid, traffic lights or something convenient.

At this point in time I'd just settle for some info that can show us how succesful the AWT are. I'll never forget when they opened Cambridge how much they were tripping over themselves to tell us how good they were and how much the industry needed them , propaganda at a level that would put this government to shame!

[Chief Stipe]

On 13/04/2022 at 7:29 AM, Huey said:

“There are a number of green shoots within the industry, purely from a wagering point of view things are going really well.

So he believes the TAB NZ propaganda?

On 13/04/2022 at 7:29 AM, Huey said:

“That’s the engine of the industry, but clearly we have issues around our infrastructure, in terms of tracks and we’re currently embarking on a plan to improve those within the next two or three years.”

Mmmmm does he truly understand the link between track infrastructure and wagering?

On 13/04/2022 at 7:29 AM, Huey said:

“Clearly we have got the SNS that is going to run out toward the end of this year, that’s the Single National System so it is the re-creation of our operating system,” he said.

“That will be confronting for some because it means a change to the way they have done their business. But again, it is one of these evolutions and we have to start moving with the times.

“Ask anyone, how did you use to bank 20 years ago? How did you get insurance? How did you get your television and everything has changed and we need to move forward.”

A Project that is well over time and well over budget.  Knocking on $3m and delivered what?  How will it assist with the marketing of racing wagering?  Was there a business case?  Will it save costs?  Will it generate extra revenue?

[Huey]

42 minutes ago, Chief Stipe said:

So he believes the TAB NZ propaganda?

I figure thats just the company line to keep the naive in the sport in the ever wishing spiral that stakes will all of a sudden meet expectations, its fairy flash stuff and we all know that. Green Shoots... Wow just Wow!

42 minutes ago, Chief Stipe said:

Mmmmm does he truly understand the link between track infrastructure and wagering?

Not one CEO in recent times has to date, if they did I'm sure they'd show us their in depth understanding by releasing some wagering info around those amazing AWTs.

42 minutes ago, Chief Stipe said:

A Project that is well over time and well over budget.  Knocking on $3m and delivered what?  How will it assist with the marketing of racing wagering?  Was there a business case?  Will it save costs?  Will it generate extra revenue?

Yep and I have not see a thing from it that has realised any of the above you mention.

[Bloke]

He uses the analogy of Rugby. Well that sport has huge issues with Clubs in Auckland and Wellington down to mainly Polynesian players keeping the game going at a club level.

Football in Wellington would be at least three times larger than Rugby in participation.

They are so desperate, they have KFC sponsoring handing out crumbs so that Rugby Clubs can carry out small improvements to their run down clubrooms.

[Mark D]

No I agree with his rugby analogy - the green shoots (if they exist) are amongst a brown desert like Ellis Park in JBurg in the 70s

[Peanut]

As the saying goes.  You get one chance to make a good first impression.  Sharrock has blown it with this diatribe there is nothing here we dont already know and lets see some action not words.  Starting with getting rid of dead wood and the pencil pushers with fancy corporate titles who take plenty and contribute nothing. 

[Doomed]

1 hour ago, Peanut said:

As the saying goes.  You get one chance to make a good first impression.  Sharrock has blown it with this diatribe there is nothing here we dont already know and lets see some action not words.  Starting with getting rid of dead wood and the pencil pushers with fancy corporate titles who take plenty and contribute nothing. 

A good start would have been to show he was actually prepared to talk to people and listen to them rather than just preach a load of meaningless rubbish. I presume it was written for him and not all his own words, but even then he could have said he wasn't going to keep churning out that rubbish.

How hard is it for them to come out and explain things like why it wasn't possible to race Riverton Monday and either Wednesday or Thursday; instead denying the South 6 racing opportunities. You get impression the minute details are all below them and they are big picture people not interested in the basics. At the moment it is the basics that is letting the show down. How long can they keep running 3 horse fields for $30,000. I suppose the savings from shutting down Wairoa more than fund those tiny fileds.