The Corner with Garry Chittick

Well, reprimanded I have been. I confess to forgetting about last week’s Corner. At 4pm, it dawned on me I had not put finger to iPad, it was then too late. However, you two need to accept there is not always something worthy of comment. I will endeavour to search deeper into racing’s mysteries to retain your interest.

As The Corner is simply a reflection of my passion for our sport, perhaps it shouldn’t be taken too seriously. As there are only two of you, I will take the liberty of naming Gerald because not only did he miss The Corner, he thought he had this week’s subject covered. “The industry should acknowledge the success of our feeder clubs”, quite right, Gerald. Racing at Cromwell, Waipukurau, Taupo, Kumara, and Matamata present the sort of day that encourages participation. The problem is, our sport is more than ever dependent on off-course turnover. The conundrum is that participation encourages ownership, stakes races for retain ownership. In recent times, particularly during our negotiations with Entain, I have had many opportunities to debate this issue with them. We are all becoming aware of their push to tweak dates, focus on particular venues with the aim of better turnover.

I want you to think about this, future stakes, in 30 months, will be dependent on 50 per cent of the net wagering margin. Take a brief look at our TAB NZ end-of-year ’24 report. The distribution to the codes and sport of $225 million required above Entain’s guaranteed $160 million. Income from gaming, which filled part of the deficit, with a $42 million drag on the Board’s capital, to balance.

So, readers, we are going to need a significant improvement in turnover to avoid the total depletion of any reserves created by the sale. When I was Chairman of the Racing Board, we came to an arrangement where a guaranteed margin of 8% of gross turnover was returned to the codes. This is the net margin over their outgoings, therefore under the current fifty-fifty deal 16% on average would be extracted from the punters. Competition from other wagering operators, or punter resistance, rightfully meant that any increase resulted in decreased turnover.

We are told by Entain the current guaranteed $160 million is costing them $20 million annually, yet another challenge to fill both shortfalls. I recently read a report on Entain Australasia, where the Chief Executive, when commenting on NZ, suggested they were comfortable with progress but may have to support NZ racing further.

Gerald, I’m afraid the need to increase turnover will dominate venue selection, a decrease in stakes will dissipate all the goodwill that our feeder clubs may achieve. Ironically, if it is that Entain dips into their pocket beyond their obligations, one would have to wonder who got the best deal.

Cheers,
G

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