Jo Griffin
I thought it would be a good time to wade through the funding policy for the new season starting 1st of August and focus on the bits Owners are going to be most interested in. I’ve put it into a Q&A format;
Q. How much funding is being made available to all three codes from the NZ Racing Board (NZRB)?
A. The NZRB have indicated that an amount of $110m in funding will be paid out and divided between the three codes in 2010/2011. This compares to $105m in 2009/2010 and $121m in 2008/2009 excluding additional surplus or dividend payments. Approximately $63m of the $110m will come to our code.
Q. What will happen to thoroughbred funding and stakes for next year?
A. Largely they stay the same. NZTR is increasing funding for industry days and pushing up top-end race prizemoney through some small reductions at the bottom end. The funding policy for the previous 12 months was extremely aggressive. However due to two key factors; the down-turn in wagering (due in part to the global economic crisis) and secondly severe cuts in gaming trust income, the overall projected income was well below projected figures for that period. NZTR paid out all its reserves this season to top up reductions in funding and additional financial pressure being felt by racing clubs. These reserves are now exhausted. NZTR has no choice but to limit pay out to the industry to what it receives in funding from the NZRB.
Q. Why are the Industry Day Maiden minimums higher in the South Island compared to the North?
A. NZTR’s Funding Policy has adopted differing philosophies for the North Island and South Island. The feedback from stakeholders in the South Island was that $6k minimums were important to retain interest in horse ownership in the region. South Island maiden horses have 1-2 opportunities per week to run and often only at Industry Days. However, horses in the North have the advantage of 2-3 opportunities per week and consistent choice between Industry Day and Feature Day Maidens.
Q. What’s happening with NZTR’s free racing policy? Is it staying?
A. Yes, it is staying. While we have had amend the categories slightly it stays in place. The amendments have taken place at the top of the range of races from Rating 80 to Open races, where horses also have the opportunity to run for the highest stakes. Owners of horses competing in these races will be charged $50 (plus GST) for nomination fees and 0.75% of the total race stake, plus GST, for acceptance fees. The owners of more than 80% of horses will still have the opportunity to run their horses for free in races run at Rating 75 level and below. NZTR will continue its policy of paying Jockeys’ riding fees on behalf of Owners, which represents savings to Owners of approximately $2.9m per year.
Q. What were the key aims of the 2010-11 model?
A. NZTR has shifted away from funding clubs using off-course wagering turnover and a range of other payments, to one that simply provides minimum prizemoney to racing clubs for each meeting and race category. This will make it easier for racing clubs to plan their race programmes, ensure they are fully funded irrespective of the day that they are racing on, and provide a consistent prizemoney structure for each individual race class and meeting category for Owners, Trainers and Jockeys.