The Optimist: RIB the ne Elephant in the room for Nz Racing.

[Doomed]

Another interesting piece from Brian.

http://www.theoptimist.co.nz/

 

[Chief Stipe]

RIB the ne Elephant in the room for Nz Racing.

"Truth is on the march; nothing can stop it now!" – Emile Zola (French Novelist)

About The Optimist

RIB the new elephant in the room for racing

by Brian de Lore
 Published 10th August 2022

Suppose you said this world we live in today has an unrecognisable skew to it, utterly foreign from what we knew even a short five years ago. In that case, you could be talking about politics, extreme climate events, violence, crime, inflation, cost of living, education, All Black rugby, work prospects or the potential for world war, etc.

All of the above have declined in standards or present a greater threat today, and the decline of racing runs parallel to them all. However, a light’s shining at the end of the NZ racing tunnel, and if the stars can see their way to align, the potential for better times do exist further down the track.

In the meantime, the Racing Integrity Board has become the elephant in the room. The Racing Industry Act 2020 transformed the Unit (RIU) into a Board (RIB) with autonomy, power, and an inflated budget, all activated by the then hapless Minister of Racing Grant Robertson.

Robertson appointed an equally hapless bunch of over-paid dinosaur-like ex-judges and policemen with no racing knowledge, expecting them to exercise justice in an industry in which they are ill-equipped and inadequate.

But firstly, let’s take a look at the shining light for racing’s future. 

The Messara Review stressed Recommendation Seven of the 17; to outsource or partner TAB NZ with the likes of Tabcorp or an Australian registered corporate like Sportsbet.

Ladbrokes, Bet365, etc.

We now know that NZRB 1(now known as TAB NZ) in the Glenda Hughes/John Allen reign received an up-front partnering offer in the vicinity of $50 to $100 million. Stakes could have almost doubled, as the Messara Review said it would, but no, Glenda and John, in their infinite irrationality, went and signed the industry up for a $50 million Fixed Odds Betting platform with $17 million annually to pay Openbet and Paddy Power for ten and five years respectively.

All up, a $200 million noose around NZ racing’s neck. That has proved a major fiscal obstacle, but a legal option may now exist to gain a release from the contract or, failing that, for the TAB to buy themselves out.

A release from that contract would see TAB NZ unencumbered and free to negotiate a partnering arrangement. Even better, TAB NZ has suddenly risen in value to the tune of hundreds of millions (possibly as much as $1 billion) because of two substantial new money-spinning changes that will occur within 18 months to two years.

The first – geo-blocking betting in New Zealand, as they have done in Australia. When in Australia, you cannot bet with a betting agency outside the country. The round-figure estimation of $480 million bet annually offshore by New Zealanders would divert to TAB NZ.

NZ punters deserve a better product

 

To deflect the betting to TAB NZ, the geo-blocking has to coincide with the partnering arrangement with an overseas betting agency because the unacceptably poor product dished up by our TAB. New Zealand punters would only buy into it with all the options and better odds – the current deal insults the betting public.

 

The calculation of overseas online betting losses of $480 million annually comes through Kiwibank monitoring the monthly amount it processes for all forms of gambling, including online casinos. They process $30 million a month through credit cards, and Kiwibank represents only 15 percent of New Zealand’s banking turnover.

 

The second big money-spinner comes with the advent of Ellerslie’s StrathAyr track, currently under construction. Completion of te surface at Auckland Thoroughbred Racing (ATR) should come within a year, with the second half of 2023 scheduled for bedding-in the grass to develop a robust root system before the prospect of the first major meeting on the new surface on the day of Karaka Millions, January 2024.

 

Ellerslie’s StrathAyr will attract overseas betting

With the $40 million new StrathAyr surface the equal of any in Australasia, Ellerslie will race for substantial stakes and utilise New Zealand’s unique time slot to offer regular racing of the highest standard. The stakes will attract the best horses, and the potential to beam Ellerslie racing into Hong Kong, and other Asian and American courses, will draw a massive financial reward, benefitting racing nationwide.

When the New Zealand Derby went televised into Hong Kong this year, it attracted massive betting for the one-only race. The total HK turnover amounted to $NZ5.5 million for just the Derby against the total NZ off-course turnover for ten races amounting to $4,143,775.

An entire race card beamed into Hong Kong regularly would result in an off-course betting record and change the face and the fortunes of New Zealand racing.

It still needs to happen; the stars need to align, but the benefits of New Zealand gaining international exposure with a high standard of racing might attract a flush of overseas investment into our breeding and racing. Ellerslie will reestablish itself as the showplace, and with the better stakes on offer, selling all our best horses overseas would slow down.

There’s no future in running Group One races at places like Otaki on a Heavy10 where dubious quality fields hug the outside fence looking for a winning lane. Racing in NZ can’t continue to embrace mediocrity while we sit on our hands and look enviously at a screen depicting the high-quality product seen coming from Flemington, Moonee Valley, Randwick, and Rosehill.

We can’t beat them, so let’s join them. More than that, let’s make these changes and ensure NZ racing survives. The status quo presents as a poor option.

Provincial mindsets need casting aside. We should applaud Auckland Thoroughbred Racing for dispensing with their committee and replacing it with a professional board of five, now extended to seven, who have carefully developed a plan that will significantly increase the quality of the product. We need leadership, and Auckland Thoroughbred Racing is showing it.

But back to addressing the elephant in the room.

Suppose you said this world we live in today has an unrecognisable skew to it, utterly foreign from what we knew even a short five years ago. In that case, you could be talking about politics, extreme climate events, violence, crime, inflation, cost of living, education, All Black rugby, work prospects or the potential for world war, etc.

All of the above have declined in standards or present a greater threat today, and the decline of racing runs parallel to them all. However, a light’s shining at the end of the NZ racing tunnel, and if the stars can see their way to align, the potential for better times do exist further down the track.

In the meantime, the Racing Integrity Board has become the elephant in the room. The Racing Industry Act 2020 transformed the Unit (RIU) into a Board (RIB) with autonomy, power, and an inflated budget, all activated by the then hapless Minister of Racing Grant Robertson.

Robertson appointed an equally hapless bunch of over-paid dinosaur-like ex-judges and policemen with no racing knowledge, expecting them to exercise justice in an industry in which they are ill-equipped and inadequate.

 

We now know that NZRB (now known as TAB NZ) in the Glenda Hughes/John Allen reign received an up-front partnering offer in the vicinity of $50 to $100 million. Stakes could have almost doubled, as the Messara Review said it would, but no, Glenda and John, in their infinite irrationality, went and signed the industry up for a $50 million Fixed Odds Betting platform with $17 million annually to pay Openbet and Paddy Power for ten and five years respectively.

All up, a $200 million noose around NZ racing’s neck. That has proved a major fiscal obstacle, but a legal option may now exist to gain a release from the contract or, failing that, for the TAB to buy themselves out.

A release from that contract would see TAB NZ unencumbered and free to negotiate a partnering arrangement. Even better, TAB NZ has suddenly risen in value to the tune of hundreds of millions (possibly as much as $1 billion) because of two substantial new money-spinning changes that will occur within 18 months to two years.

The first – geo-blocking betting in New Zealand, as they have done in Australia. When in Australia, you cannot bet with a betting agency outside the country. The round-figure estimation of $480 million bet annually offshore by New Zealanders would divert to TAB NZ.

NZ punters deserve a better product

To deflect the betting to TAB NZ, the geo-blocking has to coincide with the partnering arrangement with an overseas betting agency because the unacceptably poor product dished up by our TAB. New Zealand punters would only buy into it with all the options and better odds – the current deal insults the betting public.

The calculation of overseas online betting losses of $480 million annually comes through Kiwibank monitoring the monthly amount it processes for all forms of gambling, including online casinos. They process $30 million a month through credit cards, and Kiwibank represents only 15 percent of New Zealand’s banking turnover.

The second big money-spinner comes with the advent of Ellerslie’s StrathAyr track, currently under construction. Completion of te surface at Auckland Thoroughbred Racing (ATR) should come within a year, with the second half of 2023 scheduled for bedding-in the grass to develop a robust root system before the prospect of the first major meeting on the new surface on the day of Karaka Millions, January 2024.

Ellerslie’s StrathAyr will attract overseas betting

With the $40 million new StrathAyr surface the equal of any in Australasia, Ellerslie will race for substantial stakes and utilise New Zealand’s unique time slot to offer regular racing of the highest standard. The stakes will attract the best horses, and the potential to beam Ellerslie racing into Hong Kong, and other Asian and American courses, will draw a massive financial reward, benefitting racing nationwide.

When the New Zealand Derby went televised into Hong Kong this year, it attracted massive betting for the one-only race. The total HK turnover amounted to $NZ5.5 million for just the Derby against the total NZ off-course turnover for ten races amounting to $4,143,775.

An entire race card beamed into Hong Kong regularly would result in an off-course betting record and change the face and the fortunes of New Zealand racing.

It still needs to happen; the stars need to align, but the benefits of New Zealand gaining international exposure with a high standard of racing might attract a flush of overseas investment into our breeding and racing. Ellerslie will reestablish itself as the showplace, and with the better stakes on offer, selling all our best horses overseas would slow down.

Auckland Thoroughbred Racing at Ellerslie on schedule with the building of their StrathAyr

There’s no future in running Group One races at places like Otaki on a Heavy10 where dubious quality fields hug the outside fence looking for a winning lane. Racing in NZ can’t continue to embrace mediocrity while we sit on our hands and look enviously at a screen depicting the high-quality product seen coming from Flemington, Moonee Valley, Randwick, and Rosehill.

We can’t beat them, so let’s join them. More than that, let’s make these changes and ensure NZ racing survives. The status quo presents as a poor option.

Provincial mindsets need casting aside. We should applaud Auckland Thoroughbred Racing for dispensing with their committee and replacing it with a professional board of five, now extended to seven, who have carefully developed a plan that will significantly increase the quality of the product. We need leadership, and Auckland Thoroughbred Racing is showing it.

But back to addressing the elephant in the room.

The RIB has mushroomed into a significant problem for the industry. In changing from a ‘Unit’ to a ‘Board,’ it has assumed a more powerful, autonomous position of control through the wording of the Racing Industry Act 2020 and endorsed by Grant Robertson.

It wouldn’t be so bad if the industry viewed the RIB as an efficient, fairminded organisation that displayed a good knowledge of racing and treated all participants equally. It does not apply – instead representing a danger to racing because the RIB wields a big stick on an industry in which they possess too little knowledge while costing it a fortune.

Think about how racing has contracted over the past half a dozen years, and then consider the six years since the 2015-16 season when the RIU cost $5.8 million – a figure thought to be excessive at the time. In the 2021-22 season just finished, the RIB has blown the budget of $14.2 million out to an estimated $16 million while many in racing at the grassroots level struggle to survive financially, and others consider Australia as a means of staying in the game.

Why do they cost so much, you ask? The RIB employs 40 permanent staff and 120 casual or contracted staff – what the hell do they all do? CEO Mike Clement is probably on $350,000 annually (I’m guessing), with additional anecdotal evidence of wastage by stipendiary stewards.

For example, take a recent case of stipes travelling by car from Dunedin to Oamaru races, a journey of 75 minutes, and incurring overnight expenses instead of returning to Dunedin the same day. This type of carry-on happens with regularity. Stipes are like musical chairs flying all over the country.

The RIB had inexpensive office rentals at the ATR offices at Ellerslie but opted for independence by shifting about 400 metres to the more salubrious and expensive Level Two of the modern Ascot Central Building on the outskirts of Ellerslie racecourse.

RIB spending out of control

How much money have they wasted on Operation Inca, a bungled sting on four harness racing people emanating from taped phone conversations in which the police and the RIB have alleged race fixing, but in the ongoing four years the case has lasted, no charges have ever eventuated through lack of evidence.

The incompetence of authorities in not knowing the difference between the discussion of race tactics and race fixing has not only cost the industry a fortune and damaged racing’s reputation, but the accused have all needed their own legal advice, one known to have spent $220,000 alone – and one of the alleged fixed races turning out to be a trial.

How much in legal fees has the RIB wasted on that one?  

What about the trainer who had his stables raided just a week or so ago, and after a squad of RIB detectives failed to locate anything illegal, female stable workers experienced the indignity of a line of inappropriate questioning of possible sexual harassment by the trainer – trying to manufacture a complaint rather than acting upon a genuine one.

An industry employee close to the action has commented that CEO Mike Clement, who spent 42 years in the police force, believes that most horse trainers are crooked, and his job is to nail them. The industry as a whole feels that the RIB is trying too hard to discover breaches of the rules and justify their existence and extraordinarily high costs with a consistent flow of harsh disqualifications and fines.

I take the view that racing in New Zealand has fewer misdemeanours today than at any time in the past and is full of passionate horse people trying to get on with their business and survive, but now subjected to the siege of this overzealous RIB.

Crooks invade every industry, and that includes the police force itself. The racing industry is strictly regulated and far less corrupt than the building industry, government departments, and even the legal profession – that’s food for thought.

 

 

 

[Chief Stipe]

De Lore supported the  Messara Report and he is still off point on a lot of things in this article.

However his views on the RIB I have been posting the save opinions for months now.  Yet it seems stakeholders don't really care or are oblivious to the now out of control spending and a decline in the RIB performance.

The $16m budget was once funded (when it was less than $9m) from gaming revenue I.e. pokies.

In the latest TABNZ financial reports that source of funds is well down.  So the shortfall will have to come from the code distribution.

Although I guess they could always apply for another Government handout.

[Joe Bloggs]

Dear Brian, I'm afraid you've missed the Elephant in the room completely.

The standard of riders in NZ will deter the canny and select HK punters from wagering. It is no secret that most can't sit in a tram, or in a bus, and the Auckland Racing Club putting all their faith in the ''new track'' is delusional......Aussies aren't the least bit interested in NZ racing, by selling the deck chairs on the Titanic would not have saved the ship, those living in denial will always live in denial, the only hope, the only hope is the slowly approaching 800 thousand ex pat Kiwis that live in Australia open a TAB account, a NZ TAB account that will allow them to bet into NZ racing and that they bet their arses off to save the lives of the poor buggers that are trying to jump overboard........sorry, that's the way it is.

[Freda]

Gets it wrong often.  But, at least he has the passion to make his thoughts/ideas public, in a manner that most of us can't.

 

[nomates]

3 hours ago, Joe Bloggs said:

Dear Brian, I'm afraid you've missed the Elephant in the room completely.

The standard of riders in NZ will deter the canny and select HK punters from wagering. It is no secret that most can't sit in a tram, or in a bus, and the Auckland Racing Club putting all their faith in the ''new track'' is delusional......Aussies aren't the least bit interested in NZ racing, by selling the deck chairs on the Titanic would not have saved the ship, those living in denial will always live in denial, the only hope, the only hope is the slowly approaching 800 thousand ex pat Kiwis that live in Australia open a TAB account, a NZ TAB account that will allow them to bet into NZ racing and that they bet their arses off to save the lives of the poor buggers that are trying to jump overboard........sorry, that's the way it is.

Won't have to worry about poor riding , there will be bugger all horses to ride . 

[Reefton]

13 hours ago, Chief Stipe said:

 

Yet it seems stakeholders don't really care or are oblivious to the now out of control spending and a decline in the RIB performance.

 

You have developed an unbelievable fascination with blaming 'stakeholders' for not righting the wrongs in this industry.  What you clearly have no idea of is the fact that most 'stakeholders' have been battling for years(each in their separate ways - not all are capable or inclined to be like me and attack these pricks via submissions on various mad proposals they come up with - but even if they are only at their local racing club President or if they are sacking a horse which might win a race somewhere someday but that five years ago they would have persevered with they are taking their stand.  Another example is punters taking their business offshore)

It is absolute bullshit to say that the problems in NZ racing are the fault of the 'stakeholders'.  I am not a big punter(not a good enough judge) nor a big owner and the President of NZ's smallest racing club but I have been through the mill in this game whether stable hand, administrator in virtually every role, owner, punter, horse (and racing people) lover and overall enthusiast.  I have smashed my head against the brick wall of racing hierarchy for years and years and I'm bloody tired of it.  And I talk to a lot of people(like Pam for instance) who are just as sick of the way things are going as I am and who invariably have contributed enormously and continuously in their own way to try to get these idiots to see reason.  It is impossible.  One of the funnier things about the current situation is to have the likes of Murray Acklin, David Lloyd and(I understand) even Gray Chittick, who were mortal enemies 20 - 25 years ago now onside with the dissatisfaction and doing their bit as well.

Look at those who submitted on the Racing Act - every one (essentially) ignored.  As I said many were not capable(either through time constraints or maybe 'not knowing what to say') of submitting themselves but that doesn't mean they were not appalled at the implications.  When I had completed my own submission some dickhead politician(who I couldn't identify) quipped  'thanks for the lecture'.  F#*king arsehole!  But that is an example of what you are dealing with.

I have had one huge win saving our club but for all that I have submitted here there and everywhere and invariably been ignored.  What the bloody hell more can I do?  Ironically had I lost that particular battle then by now I would have long since walked away and occasionally had a look a the results or attended a meet but really I would no longer care what happened to the industry and most certainly would not have a horse share or two.

The problem is not stakeholder indifference it is disconnection between the stakeholders and the hierarchy.  The stakeholders are ignored but they are the basis of the game

 

 

 

[Joe Bloggs]

12 hours ago, Reefton said:

You have developed an unbelievable fascination with blaming 'stakeholders' for not righting the wrongs in this industry.  What you clearly have no idea of is the fact that most 'stakeholders' have been battling for years(each in their separate ways - not all are capable or inclined to be like me and attack these pricks via submissions on various mad proposals they come up with - but even if they are only at their local racing club President or if they are sacking a horse which might win a race somewhere someday but that five years ago they would have persevered with they are taking their stand.  Another example is punters taking their business offshore)

It is absolute bullshit to say that the problems in NZ racing are the fault of the 'stakeholders'.  I am not a big punter(not a good enough judge) nor a big owner and the President of NZ's smallest racing club but I have been through the mill in this game whether stable hand, administrator in virtually every role, owner, punter, horse (and racing people) lover and overall enthusiast.  I have smashed my head against the brick wall of racing hierarchy for years and years and I'm bloody tired of it.  And I talk to a lot of people(like Pam for instance) who are just as sick of the way things are going as I am and who invariably have contributed enormously and continuously in their own way to try to get these idiots to see reason.  It is impossible.  One of the funnier things about the current situation is to have the likes of Murray Acklin, David Lloyd and(I understand) even Gray Chittick, who were mortal enemies 20 - 25 years ago now onside with the dissatisfaction and doing their bit as well.

Look at those who submitted on the Racing Act - every one (essentially) ignored.  As I said many were not capable(either through time constraints or maybe 'not knowing what to say') of submitting themselves but that doesn't mean they were not appalled at the implications.  When I had completed my own submission some dickhead politician(who I couldn't identify) quipped  'thanks for the lecture'.  F#*king arsehole!  But that is an example of what you are dealing with.

I have had one huge win saving our club but for all that I have submitted here there and everywhere and invariably been ignored.  What the bloody hell more can I do?  Ironically had I lost that particular battle then by now I would have long since walked away and occasionally had a look a the results or attended a meet but really I would no longer care what happened to the industry and most certainly would not have a horse share or two.

The problem is not stakeholder indifference it is disconnection between the stakeholders and the hierarchy.  The stakeholders are ignored but they are the basis of the game

 

 

 

I have no idea how to fix NZ, racing, and otherwise, what I do know is if you walk away, it's well and truly rooted. After years of disinterest from Gov and the useless series of racing ministers, and then the procession of useless Aussies and Poms hired by even more useless Kiwi's that couldn't believe their luck falling into huge salaried management positions racing is in the abyss it is.

Absolutely the fault is with hierarchy, no risk on that, we need to be forever grateful for people like you Reefton, people that never gave up, people that fight on to this day, people who love racing for what it is, the grandest sport of them all. 

Most don't have a platform, everyday they must dread reading the propaganda that's emitted from Jackson St, and cringe, or, didn't read at all, just go about their business and occasionally dropping by on race day to watch a few, have a wee punt, and reminisce about the good old days, gone, but not forgotten......sadly.

Thanks again Brian, your bloods worth bottling mate, go well.

[Reefton]

50 minutes ago, Joe Bloggs said:

I have no idea how to fix NZ, racing, and otherwise, what I do know is if you walk away, it's well and truly rooted. After years of disinterest from Gov and the useless series of racing ministers, and then the procession of useless Aussies and Poms hired by even more useless Kiwi's that couldn't believe their luck falling into huge salaried management positions racing is in the abyss it is.

Absolutely the fault is with hierarchy, no risk on that, we need to be forever grateful for people like you Reefton, people that never gave up, people that fight on to this day, people who love racing for what it is, the grandest sport of them all. 

Most don't have a platform, everyday they must dread reading the propaganda that's emitted from Jackson St, and cringe, or, didn't read at all, just go about their business and occasionally dropping by on race day to watch a few, have a wee punt, and reminisce about the good old days, gone, but not forgotten......sadly.

Thanks again Brian, your bloods worth bottling mate, go well.

Thanks for that JB

The very first sentence sums it up.  As l always say I know all about what is wrong in the game but I sure would hate the job of fixing it.  One thing I am sure of is that like virtually every organisation where the administrators aren't paying their own bills it is overrun with bureaucracy.  CS may well be right that the RIU is out of control but I very much doubt it is excessive wages paid to the stipes dragging it down.

We will struggle onwards and be on my knees every night praying that the KT Myers barn doesn't get struck down by a virus next Christmas time.  Without wanting to belittle the support of all the other marvelous contributor horses wise the Coast would be f#*ked without him

 

[Doomed]

58 minutes ago, Reefton said:

Thanks for that JB

The very first sentence sums it up.  As l always say I know all about what is wrong in the game but I sure would hate the job of fixing it.  One thing I am sure of is that like virtually every organisation where the administrators aren't paying their own bills it is overrun with bureaucracy.  CS may well be right that the RIU is out of control but I very much doubt it is excessive wages paid to the stipes dragging it down.

We will struggle onwards and be on my knees every night praying that the KT Myers barn doesn't get struck down by a virus next Christmas time.  Without wanting to belittle the support of all the other marvelous contributor horses wise the Coast would be f#*ked without him

 

Very true. I'm sure there are people out there who think "well, lets see you do better running the industry". Which is a pretty ignorant argument if people really do think that. Sadly, strings of third tier administrators over the last 30 years have virtually destroyed a racing industry that was ticking away quite well and was reacting to changes in an appropriate and considered fashion.

People seem to forget that at least a dozen tracks that I can think of off the top of my head were closed down over 15 years or so around the 1980s, and a similiar number of new grandstands were built, even totally new racecourses. It's not as if rationalisation is some new phenomenon that a recent bright spark has just thought of.

There were very few incompetent administrators back in those times, and very few who came from totally  outside the industry or had absolutely no interest in the industry.

It was good to see Allan Fenwick interviewed on TV last weekend after his horse won at Riccarton. Wellington locals might be able to tell us how often they spot John Allen at Trentham these days. They might even be able to tell us how often they spotted him there during his time running the show. He probably wasn't required to work Saturdays.

[The Centaur]

1 hour ago, Reefton said:

Thanks for that JB

The very first sentence sums it up.  As l always say I know all about what is wrong in the game but I sure would hate the job of fixing it.  One thing I am sure of is that like virtually every organisation where the administrators aren't paying their own bills it is overrun with bureaucracy.  CS may well be right that the RIU is out of control but I very much doubt it is excessive wages paid to the stipes dragging it down.

We will struggle onwards and be on my knees every night praying that the KT Myers barn doesn't get struck down by a virus next Christmas time.  Without wanting to belittle the support of all the other marvelous contributor horses wise the Coast would be f#*ked without him

 

THere are numerous initiatives available to as you say "Fix it". However when one see's all the greedies feeding of the industry with little evidence of them doing anything there is no incentive to put forward those ideas. Why bother when its only going to keep them in place and anyway the first logical place to start cutting costs is removing them.

[Assange]

On 8/11/2022 at 7:14 AM, Chief Stipe said:

RIB the ne Elephant in the room for Nz Racing.

"Truth is on the march; nothing can stop it now!" – Emile Zola (French Novelist)

About The Optimist

RIB the new elephant in the room for racing

by Brian de Lore
 Published 10th August 2022

Suppose you said this world we live in today has an unrecognisable skew to it, utterly foreign from what we knew even a short five years ago. In that case, you could be talking about politics, extreme climate events, violence, crime, inflation, cost of living, education, All Black rugby, work prospects or the potential for world war, etc.

All of the above have declined in standards or present a greater threat today, and the decline of racing runs parallel to them all. However, a light’s shining at the end of the NZ racing tunnel, and if the stars can see their way to align, the potential for better times do exist further down the track.

In the meantime, the Racing Integrity Board has become the elephant in the room. The Racing Industry Act 2020 transformed the Unit (RIU) into a Board (RIB) with autonomy, power, and an inflated budget, all activated by the then hapless Minister of Racing Grant Robertson.

Robertson appointed an equally hapless bunch of over-paid dinosaur-like ex-judges and policemen with no racing knowledge, expecting them to exercise justice in an industry in which they are ill-equipped and inadequate.

But firstly, let’s take a look at the shining light for racing’s future. 

The Messara Review stressed Recommendation Seven of the 17; to outsource or partner TAB NZ with the likes of Tabcorp or an Australian registered corporate like Sportsbet.

Ladbrokes, Bet365, etc.

We now know that NZRB 1(now known as TAB NZ) in the Glenda Hughes/John Allen reign received an up-front partnering offer in the vicinity of $50 to $100 million. Stakes could have almost doubled, as the Messara Review said it would, but no, Glenda and John, in their infinite irrationality, went and signed the industry up for a $50 million Fixed Odds Betting platform with $17 million annually to pay Openbet and Paddy Power for ten and five years respectively.

All up, a $200 million noose around NZ racing’s neck. That has proved a major fiscal obstacle, but a legal option may now exist to gain a release from the contract or, failing that, for the TAB to buy themselves out.

A release from that contract would see TAB NZ unencumbered and free to negotiate a partnering arrangement. Even better, TAB NZ has suddenly risen in value to the tune of hundreds of millions (possibly as much as $1 billion) because of two substantial new money-spinning changes that will occur within 18 months to two years.

The first – geo-blocking betting in New Zealand, as they have done in Australia. When in Australia, you cannot bet with a betting agency outside the country. The round-figure estimation of $480 million bet annually offshore by New Zealanders would divert to TAB NZ.

NZ punters deserve a better product

 

To deflect the betting to TAB NZ, the geo-blocking has to coincide with the partnering arrangement with an overseas betting agency because the unacceptably poor product dished up by our TAB. New Zealand punters would only buy into it with all the options and better odds – the current deal insults the betting public.

 

The calculation of overseas online betting losses of $480 million annually comes through Kiwibank monitoring the monthly amount it processes for all forms of gambling, including online casinos. They process $30 million a month through credit cards, and Kiwibank represents only 15 percent of New Zealand’s banking turnover.

 

The second big money-spinner comes with the advent of Ellerslie’s StrathAyr track, currently under construction. Completion of te surface at Auckland Thoroughbred Racing (ATR) should come within a year, with the second half of 2023 scheduled for bedding-in the grass to develop a robust root system before the prospect of the first major meeting on the new surface on the day of Karaka Millions, January 2024.

 

Ellerslie’s StrathAyr will attract overseas betting

With the $40 million new StrathAyr surface the equal of any in Australasia, Ellerslie will race for substantial stakes and utilise New Zealand’s unique time slot to offer regular racing of the highest standard. The stakes will attract the best horses, and the potential to beam Ellerslie racing into Hong Kong, and other Asian and American courses, will draw a massive financial reward, benefitting racing nationwide.

When the New Zealand Derby went televised into Hong Kong this year, it attracted massive betting for the one-only race. The total HK turnover amounted to $NZ5.5 million for just the Derby against the total NZ off-course turnover for ten races amounting to $4,143,775.

An entire race card beamed into Hong Kong regularly would result in an off-course betting record and change the face and the fortunes of New Zealand racing.

It still needs to happen; the stars need to align, but the benefits of New Zealand gaining international exposure with a high standard of racing might attract a flush of overseas investment into our breeding and racing. Ellerslie will reestablish itself as the showplace, and with the better stakes on offer, selling all our best horses overseas would slow down.

There’s no future in running Group One races at places like Otaki on a Heavy10 where dubious quality fields hug the outside fence looking for a winning lane. Racing in NZ can’t continue to embrace mediocrity while we sit on our hands and look enviously at a screen depicting the high-quality product seen coming from Flemington, Moonee Valley, Randwick, and Rosehill.

We can’t beat them, so let’s join them. More than that, let’s make these changes and ensure NZ racing survives. The status quo presents as a poor option.

Provincial mindsets need casting aside. We should applaud Auckland Thoroughbred Racing for dispensing with their committee and replacing it with a professional board of five, now extended to seven, who have carefully developed a plan that will significantly increase the quality of the product. We need leadership, and Auckland Thoroughbred Racing is showing it.

But back to addressing the elephant in the room.

Suppose you said this world we live in today has an unrecognisable skew to it, utterly foreign from what we knew even a short five years ago. In that case, you could be talking about politics, extreme climate events, violence, crime, inflation, cost of living, education, All Black rugby, work prospects or the potential for world war, etc.

All of the above have declined in standards or present a greater threat today, and the decline of racing runs parallel to them all. However, a light’s shining at the end of the NZ racing tunnel, and if the stars can see their way to align, the potential for better times do exist further down the track.

In the meantime, the Racing Integrity Board has become the elephant in the room. The Racing Industry Act 2020 transformed the Unit (RIU) into a Board (RIB) with autonomy, power, and an inflated budget, all activated by the then hapless Minister of Racing Grant Robertson.

Robertson appointed an equally hapless bunch of over-paid dinosaur-like ex-judges and policemen with no racing knowledge, expecting them to exercise justice in an industry in which they are ill-equipped and inadequate.

 

We now know that NZRB (now known as TAB NZ) in the Glenda Hughes/John Allen reign received an up-front partnering offer in the vicinity of $50 to $100 million. Stakes could have almost doubled, as the Messara Review said it would, but no, Glenda and John, in their infinite irrationality, went and signed the industry up for a $50 million Fixed Odds Betting platform with $17 million annually to pay Openbet and Paddy Power for ten and five years respectively.

All up, a $200 million noose around NZ racing’s neck. That has proved a major fiscal obstacle, but a legal option may now exist to gain a release from the contract or, failing that, for the TAB to buy themselves out.

A release from that contract would see TAB NZ unencumbered and free to negotiate a partnering arrangement. Even better, TAB NZ has suddenly risen in value to the tune of hundreds of millions (possibly as much as $1 billion) because of two substantial new money-spinning changes that will occur within 18 months to two years.

The first – geo-blocking betting in New Zealand, as they have done in Australia. When in Australia, you cannot bet with a betting agency outside the country. The round-figure estimation of $480 million bet annually offshore by New Zealanders would divert to TAB NZ.

NZ punters deserve a better product

To deflect the betting to TAB NZ, the geo-blocking has to coincide with the partnering arrangement with an overseas betting agency because the unacceptably poor product dished up by our TAB. New Zealand punters would only buy into it with all the options and better odds – the current deal insults the betting public.

The calculation of overseas online betting losses of $480 million annually comes through Kiwibank monitoring the monthly amount it processes for all forms of gambling, including online casinos. They process $30 million a month through credit cards, and Kiwibank represents only 15 percent of New Zealand’s banking turnover.

The second big money-spinner comes with the advent of Ellerslie’s StrathAyr track, currently under construction. Completion of te surface at Auckland Thoroughbred Racing (ATR) should come within a year, with the second half of 2023 scheduled for bedding-in the grass to develop a robust root system before the prospect of the first major meeting on the new surface on the day of Karaka Millions, January 2024.

Ellerslie’s StrathAyr will attract overseas betting

With the $40 million new StrathAyr surface the equal of any in Australasia, Ellerslie will race for substantial stakes and utilise New Zealand’s unique time slot to offer regular racing of the highest standard. The stakes will attract the best horses, and the potential to beam Ellerslie racing into Hong Kong, and other Asian and American courses, will draw a massive financial reward, benefitting racing nationwide.

When the New Zealand Derby went televised into Hong Kong this year, it attracted massive betting for the one-only race. The total HK turnover amounted to $NZ5.5 million for just the Derby against the total NZ off-course turnover for ten races amounting to $4,143,775.

An entire race card beamed into Hong Kong regularly would result in an off-course betting record and change the face and the fortunes of New Zealand racing.

It still needs to happen; the stars need to align, but the benefits of New Zealand gaining international exposure with a high standard of racing might attract a flush of overseas investment into our breeding and racing. Ellerslie will reestablish itself as the showplace, and with the better stakes on offer, selling all our best horses overseas would slow down.

Auckland Thoroughbred Racing at Ellerslie on schedule with the building of their StrathAyr

There’s no future in running Group One races at places like Otaki on a Heavy10 where dubious quality fields hug the outside fence looking for a winning lane. Racing in NZ can’t continue to embrace mediocrity while we sit on our hands and look enviously at a screen depicting the high-quality product seen coming from Flemington, Moonee Valley, Randwick, and Rosehill.

We can’t beat them, so let’s join them. More than that, let’s make these changes and ensure NZ racing survives. The status quo presents as a poor option.

Provincial mindsets need casting aside. We should applaud Auckland Thoroughbred Racing for dispensing with their committee and replacing it with a professional board of five, now extended to seven, who have carefully developed a plan that will significantly increase the quality of the product. We need leadership, and Auckland Thoroughbred Racing is showing it.

But back to addressing the elephant in the room.

The RIB has mushroomed into a significant problem for the industry. In changing from a ‘Unit’ to a ‘Board,’ it has assumed a more powerful, autonomous position of control through the wording of the Racing Industry Act 2020 and endorsed by Grant Robertson.

It wouldn’t be so bad if the industry viewed the RIB as an efficient, fairminded organisation that displayed a good knowledge of racing and treated all participants equally. It does not apply – instead representing a danger to racing because the RIB wields a big stick on an industry in which they possess too little knowledge while costing it a fortune.

Think about how racing has contracted over the past half a dozen years, and then consider the six years since the 2015-16 season when the RIU cost $5.8 million – a figure thought to be excessive at the time. In the 2021-22 season just finished, the RIB has blown the budget of $14.2 million out to an estimated $16 million while many in racing at the grassroots level struggle to survive financially, and others consider Australia as a means of staying in the game.

Why do they cost so much, you ask? The RIB employs 40 permanent staff and 120 casual or contracted staff – what the hell do they all do? CEO Mike Clement is probably on $350,000 annually (I’m guessing), with additional anecdotal evidence of wastage by stipendiary stewards.

For example, take a recent case of stipes travelling by car from Dunedin to Oamaru races, a journey of 75 minutes, and incurring overnight expenses instead of returning to Dunedin the same day. This type of carry-on happens with regularity. Stipes are like musical chairs flying all over the country.

The RIB had inexpensive office rentals at the ATR offices at Ellerslie but opted for independence by shifting about 400 metres to the more salubrious and expensive Level Two of the modern Ascot Central Building on the outskirts of Ellerslie racecourse.

RIB spending out of control

How much money have they wasted on Operation Inca, a bungled sting on four harness racing people emanating from taped phone conversations in which the police and the RIB have alleged race fixing, but in the ongoing four years the case has lasted, no charges have ever eventuated through lack of evidence.

The incompetence of authorities in not knowing the difference between the discussion of race tactics and race fixing has not only cost the industry a fortune and damaged racing’s reputation, but the accused have all needed their own legal advice, one known to have spent $220,000 alone – and one of the alleged fixed races turning out to be a trial.

How much in legal fees has the RIB wasted on that one?  

What about the trainer who had his stables raided just a week or so ago, and after a squad of RIB detectives failed to locate anything illegal, female stable workers experienced the indignity of a line of inappropriate questioning of possible sexual harassment by the trainer – trying to manufacture a complaint rather than acting upon a genuine one.

An industry employee close to the action has commented that CEO Mike Clement, who spent 42 years in the police force, believes that most horse trainers are crooked, and his job is to nail them. The industry as a whole feels that the RIB is trying too hard to discover breaches of the rules and justify their existence and extraordinarily high costs with a consistent flow of harsh disqualifications and fines.

I take the view that racing in New Zealand has fewer misdemeanours today than at any time in the past and is full of passionate horse people trying to get on with their business and survive, but now subjected to the siege of this overzealous RIB.

Crooks invade every industry, and that includes the police force itself. The racing industry is strictly regulated and far less corrupt than the building industry, government departments, and even the legal profession – that’s food for thought.

 

 

 

As a matter of interest what is happening with Operation Inca?  Were there any actual convictions into race fixing? This was all over the TV when it first happened but strangely nothing further.

[Freda]

I don't think so.

Which is not to say there isn't some less than ideal behaviour from time to time - but that's life, certainly not restricted to racing.

The worst result IMO is the now widespread notion that all racing is both corrupt and cruel.

Which we know is NOT the case.

[Turny]

9 hours ago, Freda said:

I don't think so.

Which is not to say there isn't some less than ideal behaviour from time to time - but that's life, certainly not restricted to racing.

The worst result IMO is the now widespread notion that all racing is both corrupt and cruel.

Which we know is NOT the case.

Freda, blame the RIB and the Inca fiasco ... immense damage caused by that debacle 

Most of my non racing friends quote Inca time after time and are amazed I still follow racing, albeit only Australian racing ... 

[Newmarket]

So the TAB think that by stopping NZ punters betting in Aus, that the amount will automatically be spent at the NZ Tab? Hardly, if I can’t bet with Aus operators, tab won’t get any more money off me. 

[Newmarket]

You watch also, they will stop all the promos once they have little competition

[mikeynz]

1 hour ago, Newmarket said:

So the TAB think that by stopping NZ punters betting in Aus, that the amount will automatically be spent at the NZ Tab? Hardly, if I can’t bet with Aus operators, tab won’t get any more money off me. 

I'm with you on that one, and these days I only fluff around on the TAB,  but barring others I'd say that's it, competition is important, Sky raised their game as a result of competition, the TAB  just need to keep striving to do better, 

[Assange]

On 8/27/2022 at 7:22 PM, Turny said:

Freda, blame the RIB and the Inca fiasco ... immense damage caused by that debacle 

Most of my non racing friends quote Inca time after time and are amazed I still follow racing, albeit only Australian racing ... 

I get asked about inca too as " the  horsey person" at work, but Im in the dark here. Does anyone have any updates on this? Also as a matter of interest, how much in dollar terms has this cost?  The cost to the industry in bad press has been immense. BTW being the horsey person isnt a complement.

 

[The Centaur]

12 minutes ago, Assange said:

I get asked about inca too as " the  horsey person" at work, but Im in the dark here. Does anyone have any updates on this? Also as a matter of interest, how much in dollar terms has this cost?  The cost to the industry in bad press has been immense. BTW being the horsey person isnt a complement.

 

The latest info seems this....

Some Canterbury-based defendants charged during the Operation Inca probe led by the National Organised Crime Group are seeking to prevent the transfer of evidence from investigators to the RIB, the industry watchdog.

It is possible the High Court will eventually rule on the matter, but for now the argument is confined to the district court jurisdiction.

Judge Raoul Neave, who is presiding over charges stemming from Operation Inca, said counsel now had until July 29 to make submissions while the RIB had until August 26 to respond.

Neave is expected to consider the issue again in September.

___________________________-

So it seems something should happen in September.

At the same time why are the defendants so defensive?????

[Chief Stipe]

10 minutes ago, The Centaur said:

So it seems something should happen in September.

At the same time why are the defendants so defensive?????

Would you want to be tried twice?  The second time by an industry judicial system that has lower standards and evidence thresholds?  Not to mention the ongoing cost to the defendants and the industry.

[Tonkatime!]

On 27/08/2022 at 8:12 PM, Newmarket said:

So the TAB think that by stopping NZ punters betting in Aus, that the amount will automatically be spent at the NZ Tab? Hardly, if I can’t bet with Aus operators, tab won’t get any more money off me. 

Well said Newmarket. I’d be exactly the same.