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New Zealand Thoroughbred Racing will boost stakes by at least 20 per cent for almost all races next season but their much-anticipated announcement comes with a radical twist.
Stakes almost across the board will rise 20 per cent for the thoroughbred code, meaning $12,000 will be the new minimum stake for races from August 28.
But the code says it will focus on its "golden harvest" period between August 28 and April 2 for guaranteed increases and will wait to confirm levels for the back end of next season.
NZTR is also setting up a $500,000 innovation fund to support clubs with progressive ideas to drive innovation in, and marketing of, the industry.
The increases come off the back of TAB NZ announcing its forecast payout for next season which is expected to see $170 million returned to the racing codes.
If those forecasts prove correct then the thoroughbred code can expect $14 million more than it received this season and NZTR will put $7 million of that into stakes between August 28 and April.
But because the TAB NZ payouts are based on results throughout the season, the exact amounts the codes will get are based on the overall industry's performance so NZTR wants to guarantee the stakes for the most important part of the season before detailing what happens post-April.
That is a radical departure from codes declaring stake levels for an entire season.
"We have thrown out our old way of looking at stakes," says NZTR chairman Cameron George.
"We are operating in a different environment to what we did under the old Racing Act.
"The board's decision regarding stake increases is aligned with the TAB NZ funding cycle so we have created a rolling funding policy across periods of time, as opposed to for a full racing season.
"This enables us to produce increased funding to the industry off the back of good performance. Basically, if the industry, including TAB NZ, performs then the industry benefits."
NZTA chairman Cameron George. Photo / Photosport
George says by guaranteeing the huge increases over the most important months of the season, trainers can now plan for that busiest and most profitable period of the season with confidence and all going well those levels will be maintained beyond April 2.
"The board believes this is both sensible and exciting. Announcements for funding beyond this time will be made before the end of this year," he said.
In addition to stake increases, NZTR's commitment to free nominations and acceptances – which provides savings of $1.7m to owners – remains in place.
NZTR did not have the option of tipping all of the extra $14million forecast into stakes as it has to build cash reserves. Like many other major businesses, it will left financially exposed by the lack of income during the Covid lockdowns last year.
It also plans to retain $4 million in its working capital facility to ensure stakes and industry payments can be made even at the times of the season when TAB NZ payments lag.
For example, a month like January has enormous stakes being paid out well before the TAB NZ payment for that month's turnover is distributed to NZTR.
Funding to clubs and meetings will also rise $2million, or 16 per cent, as NZTR try to help with the actually daily running of race meetings.
The separate $500,000 put aside for clubs to apply for, subject to criteria, will reward those bringing new ideas on how to market the industry or stage race meetings.
"That money will be there if people want to tell us their new ideas and if we like what we hear we will support them from that $500,000 fund," says George. " And over the next 12 months we will also invest in improving the racing product, education, training, welfare, and technology upgrades all which have been under invested in for some time. Funding of $2m has been budgeted for these business-critical issues."
News of the increases as well as NZTR's improved financial stability was welcome by leading trainers.
"It is great to see so much money coming into the industry and all of us being able to race for higher stakes with certainty through until April and hopefully beyond," said champion trainer Jamie Richards.
NZTR'S prizemoney increases for 28 August-2 April:
• Industry day minimums increase from $10,000 to $12,000 per race. • Iconic meeting minimum increases from $40,000 to $50,000 per race. • Premier meeting minimum increases from $30,000 to $40,000 per race, excluding maidens. • Feature meeting minimum prizemoney increases will apply across various levels including maiden minimums from $10,000 to $15,000 per race and open minimums from $32,500 to $40,000 per race. • Listed Races from $50,000 to $60,000, Group 3 from $70,000 to $80,000, Group 2 races from $100,000 to $110,000 and the minimum for Group 1 races from $200,000 to $220,000. The increase in Group and Listed increases will apply to the full season.
