OUR GOAL NZTR CHIEF EXECUTIVE To improve the economics, integrity and pleasure of the sport of thoroughbred STEPPING DOWN Greg Purcell, Chief Executive for the past six years of New Zealand racing on behalf of all owners. Thoroughbred Racing, has given notice to the NZTR Board of his intention to step down by the end of the current racing season. Having commenced his role at the helm of the thoroughbred code’s management team PRESIDENT/MEMBERS in early 2011, Purcell believes the time is now right for the transition to a new Chief COUNCILLOR’S MESSAGE Executive. “Greg has worked with total dedication over the last six years and deserves NEIL OLDFIELD acknowledgement for the significant improvements to NZTR and our sport which he has led,” said Dr Jackson. Welcome members and readers to this edition of the Owners Bulletin. A day is a long time in politics we “Under his tenure as Chief Executive, NZTR has delivered six successive years of hear. Well it is just as long in the life of all owners and increased aggregate and average prize-money funding. He has also produced five years industry participants. of surpluses and rebuilt NZTR’s cash reserves – despite stagnant NZRB distributions – Since my last column there has been thoroughbred industry by improving operating efficiencies and maintaining strong cost control within NZTR.” interaction with the Racing Board in particular. A meeting has Purcell advised the Chairman over 12 months ago that after five years in the role he been held at Ellerslie with participants from sector groups, saw a refreshing of the Chief Executive position as desirable. the five major clubs, NZTR and the Racing Board. It was a “Last June, at the request of Dr Jackson, I agreed to stay on for a further 12 months to frank discussion with a resolution to continue to strive to improve the efficiency of the Racing Board and in particular work with the NZTR Board on industry-changing pathways,” Purcell said. the distribution to the code. A set of questions the code “I’m proud of the achievements of the hard-working and passionate NZTR team, which wanted answers on were put to the Racing Board. This is work over the last six years has returned our code’s operations to financial sustainability. My in progress with a meeting to follow scheduled for later in team has ensured NZTR operated within its means and provided a structure of prize- March. money and racing activities that were fully funded from revenue. It is plain for this writer that the cost of production is and has “We have a great industry filled with hard-working, dedicated and passionate people become too great to simply continue in the same manner. and the New Zealand thoroughbred racehorse is the equal of any in the world. We The status quo is no longer suitable to sustain an active all know the significant challenges that our sport faces, however opportunities for and vibrant industry, irrespective of whichever code is your significant improvement do exist. passion. To this end the current exploration of FOB services by the Greg Purcell will continue in his role as Chief Executive managing NZTR business for Racing Board is valid and essential. The Racing Board also has the foreseeable future and will work on industry changing pathways. an obligation to openly disseminate information and justify “In the upcoming months I will continue to work as energetically as ever for the benefit the decision making process it has conducted. The structure of thoroughbred stakeholders,” Purcell said. of the Board is designed to that end, with four appointed Advertising for the position of Chief Executive of New Zealand Thoroughbred Racing members and a representative, one each from the three codes. will commence immediately. It is evident that the cost structures that are now the standard requirement of the Racing Board also mirror the continual decline in active participation of ownership in this country. While looking at the FOB side of their core business I also hope they look at the “farming out “ of the entire business to professional and compatible organisations. There are too many tyres on the “wagering” road, all trying to do the same service, collect revenue and return profits to the three codes. The problem is I suspect the dilemma of “asking turkeys to vote for Christmas”. Time to Gobble, Gobble, Gobble before the wielding of an axe declares the patient mortally wounded. Ownership returns took a significant step forward with the raising of minimum stakes for maidens to $10,000 from the 1st of March 2017. This is just a stepping stone along the way, as the introduction of the Racefields legislation will also have a significant impact on returns. The introduction to the House of Parliament has been indicated by the end of March 2017. The only real query is what has happened since the appointment of the Ministers committee to review this, and the time taken to now to deliver this vital piece of legislation. Why wasn’t it introduced a year ago? After all all political parties included it in their manifestos at the last election, and now we are just six months away from the next election. Cheers for now. Neil. 2 NEW ZEALAND THOROUGHBRED RACEHORSE OWNERS FEDERATION BULLETIN MEDIA RELEASE NZTROF EDITORIAL NEIL MILLER Everyone needs a holiday and ‘yours truly’ is MINIMUM THOROUGHBRED RACING no exception. So this issue contains a fair bit of copy and paste. But it is all grist to the mill STAKES TO GO TO $10,000 and things members should be aware of. “It’s time,” said Alan Jackson, Chairman of NZ Thoroughbred Racing, speaking At last ‘the powers that be’ have realised that to about the decision of the NZTR Board at its February 9 meeting to increase continue on in the same way cannot be sustained. minimum thoroughbred racing stakes to $10,000 from March 1 2017. Particularly the inertia around the introduction of the This means the stakes at the 80 or so industry and Tier 2 meetings with a minimum $7000 or Racefields legislation. The Minister of Racing says this $8000 stake will rise to $10,000. Just over 500 races will get an extra $2-3000 to meet the is a complex thing! $10,000 minimum resulting in increased stakes for participants as follows: But hang on have the cousins in Australia not got it working there? Could that not be a template? And if . 1st will increase from $4375 to $6250; it needs fine tuning how long would that take? . 2nd will increase from $1400 to $2000; It is galling that Australian Racing is reaping the . 3rd will increase from $700 to $1000; benefits of their Racefield Legislation and forging . 4th will increase from $350 to $500; and ahead and inertia here is causing stress. Another 12 million bucks is coming to racing! Tell us this is not a . 5th will increase from $175 to $250. mirage? “This puts around $1.4 million back into the pockets of those racing horses this season and Whichever way you look at it the roadblocks are $3m plus in future seasons,” said Dr Jackson. political and come from a last century Racing Act “Directors reflected on the enormous pressures owners and trainers are facing, for breeders which I think is no longer fit for purpose. But that the disappointing domestic results at the recent Karaka Sales and the Racing Board CEO’s does not excuse the current lack of action. recent announcement of gaming funds to be shared amongst Codes. The Board of NZTR also You know New Zealand racing has a great past with had to balance thoroughbred racing’s tight financial situation with the livelihood of their a breed of horse that had stamina and were tough, stakeholders.” Towards the middle of this issue there is a page that “We have to have confidence in our future. The Government has also indicated that Racefields shows an old flyer of the hardy sire St Clement. But legislation will be introduced to Parliament before it rises for the upcoming General Election, the previous page shows a recent story of a young and the NZRB has stated it is considering further moves at their March Board meeting on top apprentice winning her first race in style. That is a of the gaming fund distribution it has already announced.” juxtaposition and it is intentional. “We believe Racefields alone will return over $12 million in distributions to racing and we Sure “racing” has a great past but don’t tell us that look forward to making future announcements on what this means for our industry.” young people who are now committing the best years of their lives to Racing, don’t have a future! “NZTR will continue to consider future funding sources for our Code, but given our current situation, the Board is confident that this is not a one-off funding injection.” We are also rushing to get this issue out to meet the Pearl Series deadline of 17 March and we are always “The Board of NZTR is committed to improving our domestic racing product, the racing keen to support the NZ Thoroughbred Breeders calendar and venues where people go to watch racing. There is much work to be done in scheme to incentivise fillies races. improving the health and safety of industry participants, education, communication and Another complimentary advert is for the Agriseeds equine welfare. All these projects require funding too, and NZTR will work with industry sponsorship of Catwalk Trust. We urge you to support partners on these important initiatives,” finished Dr Jackson.