Chief Stipe Posted April 13, 2023 Author Share Posted April 13, 2023 20 hours ago, Assange said: Therein lies the issue. Everyone seems blinded by the sale price, but has forgotten that over the next 25 years, the profit will be going overseas. Look how we were told letting Trackside go to Sky would be great. Now hows that working out? I just want to know how they can find another $90m in net profit a year so quickly. The recent "experts" haven't gone close at best profit has been stagnant but it real terms continues to decline. 2 Quote Link to comment Share on other sites More sharing options...
The Centaur Posted April 13, 2023 Share Posted April 13, 2023 Will Tabcorp and the other parasitic outfits be keen on promoting NZ racing if Ladbrokes has the box seat. Its not like Aussie punters are going to sign up to Ladbrokes just for NZ racing. Now if there is no job losses at TAB plus Ladbrokes brings in their own chaps hell even TAB offices in Petone will be over crowded. If all the TAB agencies are going to be repainted, refurnished etc into the Ladbrokes brand that's more workers. Then when Ladbrokes leave who will repaint the betting shops? I am sure shareholders of Entain would not allow there not being an escape clause. Quote Link to comment Share on other sites More sharing options...
The Centaur Posted April 13, 2023 Share Posted April 13, 2023 59 minutes ago, Chief Stipe said: I just want to know how they can find another $90m in net profit a year so quickly. The recent "experts" haven't gone close at best profit has been stagnant but it real terms continues to decline. Exactly. Particularly as its stipulated "no job losses" Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted April 13, 2023 Author Share Posted April 13, 2023 32 minutes ago, The Centaur said: Exactly. Particularly as its stipulated "no job losses" This Government is anti-racing so I'm not sure they care if this all goes tits up. 1 Quote Link to comment Share on other sites More sharing options...
Ultra Posted April 14, 2023 Share Posted April 14, 2023 The NZ TAB thru lack of scale, previous management decisions and current environment is heading south - as recent distribution cuts showed. Without this Entain partnership there will be a significant cut to prizemoney next season. Do you really want to stick with current TAB? or hand the running to a professional operator guaranteeing uplift for the next 5 years? Admittedly, the devil is in the detail. 1 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted April 14, 2023 Author Share Posted April 14, 2023 1 hour ago, Ultra said: The NZ TAB thru lack of scale, previous management decisions and current environment is heading south - as recent distribution cuts showed. Without this Entain partnership there will be a significant cut to prizemoney next season. Do you really want to stick with current TAB? or hand the running to a professional operator guaranteeing uplift for the next 5 years? Admittedly, the devil is in the detail. In your expert opinion how is Entain going to produce another $90m a year in profit? Quote Link to comment Share on other sites More sharing options...
The Centaur Posted April 14, 2023 Share Posted April 14, 2023 3 hours ago, Ultra said: The NZ TAB thru lack of scale, previous management decisions and current environment is heading south - as recent distribution cuts showed. Without this Entain partnership there will be a significant cut to prizemoney next season. Do you really want to stick with current TAB? or hand the running to a professional operator guaranteeing uplift for the next 5 years? Admittedly, the devil is in the detail. Offcourse the TAB should partner but not with a competitor. Thats crazy. Better partner with an outfit that has nothing to do with wagering i.e. an IT or marketing development company as long as straight away 50% staff reduction. Perhaps they could come up with an invention selling for $1/2 billion. That would really be a boost NZTR should themselves be partnering with similar outfits to cut costs. So many options but TAB picked the worst and one which makes no sense. TAB managers/board have got a great way out. Just blame it on Messara if things go bad. Quote Link to comment Share on other sites More sharing options...
Huey Posted April 14, 2023 Share Posted April 14, 2023 On 11/04/2023 at 7:37 AM, Chief Stipe said: Double in size ... FFS !! ... but reduce venues and increase racing on synthetics . it just gets sillier and sillier. Quote Link to comment Share on other sites More sharing options...
Assange Posted April 14, 2023 Share Posted April 14, 2023 5 hours ago, Ultra said: The NZ TAB thru lack of scale, previous management decisions and current environment is heading south - as recent distribution cuts showed. Without this Entain partnership there will be a significant cut to prizemoney next season. Do you really want to stick with current TAB? or hand the running to a professional operator guaranteeing uplift for the next 5 years? Admittedly, the devil is in the detail. I'll say it again. 25 years is a long time for a contract. So is there a non-performance clause so if it turns to custard we get an out. Quote Link to comment Share on other sites More sharing options...
Special Agent Posted April 14, 2023 Share Posted April 14, 2023 I don't think there will be rebranding and repainting of betting shops. Only a fraction of the 25 year contract, if any, will see the light of day. The get out clause will be needed the other way, Entain wanting to pull out of the contract. All the words have been said to describe the reality of this ... sillier and sillier, makes no sense, worst, blame, ludicrous, ridiculous etc etc Which racing administrators and club officials would be stupid enough to support this? When in such positions you must be extremely careful what you put your nane to. 1 Quote Link to comment Share on other sites More sharing options...
mikeynz Posted April 14, 2023 Share Posted April 14, 2023 Agent, it may well be that we in NZ may see very little chang, who knows, I'm opposed to the sweetener if they geo block but in reality if everyone keeps their job at the TAB then really not a lot can change. People will probably still bet the same amounts. This deal should only be for five years, it's worth a try, 25 years gives Entain plenty of time to claw back their initial outlay, that's just plain silly. 1 Quote Link to comment Share on other sites More sharing options...
Special Agent Posted April 14, 2023 Share Posted April 14, 2023 What other 25 year contracts do we know of? The 25 year basketball contract holding Magic Johnson to the Lakers through into retirement. China signing up with Iran for a 25 year cooperation stint. China agreeing to a term of 25 years with Afganistan for oil production. The Good Friday agreement recently celebrated 25 years between Ireland and the rest of Britain. You can decide if these should be termed successful. Quote Link to comment Share on other sites More sharing options...
Freda Posted April 14, 2023 Share Posted April 14, 2023 15 hours ago, Ultra said: The NZ TAB thru lack of scale, previous management decisions and current environment is heading south - as recent distribution cuts showed. Without this Entain partnership there will be a significant cut to prizemoney next season. Do you really want to stick with current TAB? or hand the running to a professional operator guaranteeing uplift for the next 5 years? Admittedly, the devil is in the detail. Absolutely, the status quo is not acceptable. But the detail is what we would all like to see, instead of fluffy statements about 'how great ' it is going to be. Given management decisions so far we can be forgiven for the scepticism. Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted April 14, 2023 Author Share Posted April 14, 2023 As long as there are people in the industry in denial then another disaster is coming. @JJ Flash is like many of those in denial. The industry has never dsitributed $200m to the industry let alone $250m. During the Transition Agency reign of Mackenzie it got to $170m for racing, sports and RIB. But anyone who can read a balance sheet can see that was done creatively using smoke and mirrors. The promised payout to racing was topped up with debt as the actual profit was $140m. There was also pokie money propping up revenue. So the difference between the $140m and $200m is $60m assuming that the industry retains its pokie money. The net betting margin is around 12%. So to get at least another $60m in profit the increase in wagering turnover will have to be a minimum of $500m. Where's that coming from? 2 Quote Link to comment Share on other sites More sharing options...
Special Agent Posted April 15, 2023 Share Posted April 15, 2023 None of it adds up. Why are they denying and lying? Why are so very few considering the inevitable disaster? Was this really the best deal on the table? Quote Link to comment Share on other sites More sharing options...
The Centaur Posted April 15, 2023 Share Posted April 15, 2023 1 hour ago, Special Agent said: None of it adds up. Why are they denying and lying? Why are so very few considering the inevitable disaster? Was this really the best deal on the table? Before you get into any deal there has to be a purpose or goal. Have we just heard what the end game is? You can't tell me the end game is a commercial secret. Quote Link to comment Share on other sites More sharing options...
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