CE Update - October

Hi Everyone,

The big news this month is the release of the Messara Report on the future of the Racing industry.

While we are still working our way through all the implications of the Report, we have identified some major issues and we will be meeting with Clubs and LP’s over the next few weeks to talk about them with you.

One of the first items we should clarify is that there was a reference in the report to a Greyhound plan for three venues/tracks in New Zealand. This, I believe, is simply a misunderstanding and I can confirm that there is no such plan. We may have to look at venues as part of the overall Messara venue plan, but we will do that in partnership with the Clubs and LPs.

In the interim, we now know that the Minister has created a five week consultation program, closing 5pm, 19 October 2018. Feedback can be emailed to racingreview@dia.govt.nz.

More specifically though, we believe that there are two major recommendations to discuss - the Code Funding Model and Racing New Zealand.

Firstly, the Report suggests that we move from the traditional ‘domestic market share’ model for funding, to a new, multi part model. In that model, no code should receive less than they did in the last year (there is a formula if that does need to ever happen) and then any incremental or additional increase is paid out as follows:

  1. 25% of the surplus distributed on the basis of Gross Betting Revenue from local racing
  2. 25% of the surplus distributed on the basis of Gross Betting Revenue from overseas racing
  3. 50% of the surplus distributed on the basis of each Code’s “Economic Contribution”.

This model would be locked in for 10 years and changeable only from 3 code agreement and approval from the Minister.

Secondly, the Report suggests that NZRB functions be split up into Wagering NZ and Racing NZ. Wagering NZ would hold the wagering licence and be responsible for wagering, gaming, Trackside, the rules of betting, and entering into commercial contracts with the Racing Codes. Racing NZ would exist to facilitate the facets of racing administration where the Codes would need to act collectively, such as entering into contracts with Wagering NZ, the racing calendar, education, and approving budget plans etc for the JCA, RIU and Laboratory. The Report then suggests that, based on the relative size of the codes, Racing NZ could consist of a Board of four (4) Directors, as follows:

  1. Two (2) members nominated by NZTR one of whom is to be the Chair with a casting vote
  2. One (1) member nominated by HRNZ
  3. One (1) member nominated by GRNZ.

Please take some time to read the Messara Report, think about the issues we will raise over the next few weeks, and give us your feedback. We are interested in making the most of this opportunity to shape our industry and we believe that the next 6-12 months will define the industry well into the next decade.

Looking forward to hearing from you.

Mauro Signature

Mauro Barsi

Posted on 28/09/2018 9:47:16 AM

< Back