Matthew Goodson: Racing bosses deny wearing blinkers

Races are now held later in the day to attract bigger crowds. Photo / Natalie Slade

Opinion

Last week, Eric Watson accused the racing industry of short-term thinking. This is their response.

If we add racing fans, then everything else follows. Our key challenge is to end decades of slow but steady decline in our fan base. Our vision is sharing the majesty of a thoroughbred horse, the thrill of ownership and the intellectual challenge of "doing the form" versus the randomness of Lotto and pokies.

Forget the obsession with internal industry minutiae. Contrast this clear vision with the call for shuttered racecourses, an undue reduction in races and the thousands of job losses that would inevitably follow. Our industry employs 15,000 people.

To attract fans, we are putting on the show when people can attend. We are racing later in the day; less in winter; we have many more twilight meetings; we are expanding franchise events at which clubs deliver consistent standards; and we have lifted prize money on our 20 biggest, most exciting race-days. This season is seeing excellent crowds throughout New Zealand.

We have an innovative digital marketing programme in early roll-out and nzracing.co.nz had 3.32 million unique visits last year and is in the top 10 of all New Zealand websites for time spent.

New Zealand Thoroughbred Racing (NZTR) is slowly cutting races in line with New Zealand's horse population, which is declining at a lesser rate than many other countries'.

The call for massive cuts overlooks that the starting point for dividing TAB profits is domestic market share.

If we have less racing, we lose the income from that race but also a share of the profit on all exported racing, imported racing and other TAB income.

New Zealand has 50 active racetracks but almost all the capital value sits in the major city clubs. If owners travel their horses and communities are happy to pay for their clubs without subsidy, why would we close them when we would lose fans and see no capital released to the industry?

Racecourses will gradually close but this will be when it makes sense. It won't be to conform to some "vision" around the need to make hard decisions rather than smart ones.

The real elephant in the room is that New Zealand stake money is indeed low versus most other countries and this creates pressure on everyone. It is low because our population is small and has many gaming choices. Even worse, offshore bookies "steal" at least $300m of New Zealand betting turnover without paying the industry a penny or the Government any taxes. Our strict focus on racing integrity and problem gambling is blithely ignored.

Last week's claim that racing needs a governance shake-up is three years out of date. The facts are that thoroughbred racing bravely abandoned the century-old system of club appointees for a completely independent board in May 2011. Since that time, significant progress has been made.

For the first time, we have published a comprehensive strategic plan and business plans that implement it, available at www.nzracing.co.nz.

Since the 2011 low point, average prize money per race has risen 24 per cent. This will continue. Adjusted for inflation, prize money is now above the 30-year average. It needs to be far higher but the direction is positive.

Last week's article seems to remember only the 2007-09 period when fast money flooded in and then out. The increases since 2011 are sustainable.

The shake-up has happened, the NZTR board has individuals with industry knowledge, business acumen and leadership skills. We would love to have the structure or betting population of Hong Kong or Australia but we are operating in the real world of New Zealand. Nothing comes easily but New Zealand racing is firmly on the way back. Matthew Goodson is the chairman of NZ Thoroughbred Racing