PHUMELELA MEDIA RELEASE RE: STAKES.

PHUMELELA MEDIA RELEASE
SUBJECT: Phumelela, RA and Thoroughbred Racing Trust contribute towards stakes deficit
DATE: Monday 13 December
RELEASED BY: Phumelela Gaming and Leisure Limited

Horseracing and tote betting operator Phumelela, the Racing Association (the organisation responsible for looking after the interests of owners in Phumelela regions) and the Thoroughbred Horseracing Trust are contributing R4 million towards offsetting a R10-million shortfall in prize money for races at the five Phumelela racecourses in the 2010-11 racing season.
Prize money in Phumelela regions each season is determined by a formula in terms of which a percentage of total tote betting turnover in the previous term goes to the stake pool. Unfortunately, turnover in 2009-10 was three percent down on the previous season, a significantly better outcome than in many other racing countries, and that has resulted in the current deficit.
Instead of cutting stakes across the board to eliminate the shortfall, the Racing Association (RA) and Phumelela, in conjunction with the Racing Trust, investigated various other options to deal with the deficit.
The R4-million contribution from them together with a natural saving of about R1.5 million from race meetings abandoned because of rain (a loss of one meeting per region has been budgeted) and a small saving from “B Grade” meetings on the Highveld (stakes all races R50,000) leaves a deficit of some R4.3 million and the following measures will be introduced from 1 January 2011 to make up the shortfall:
* A two-tier stake system will be implemented. Normal (existing) stakes will be paid from August to April, but prize money of all turf races at Turffontein and the Vaal in May, June and July (the “off-season”) will be 10% lower. This will not apply to races on sand.
* Entry fees for minor and feature races are to be increased, as well as declaration fees for feature events, while declaration fees for minor races will be introduced. Entry and declaration fees for feature races will collectively equal one percent of the stake, while entry and declaration fees for minor races will each be 0.1 percent of the average minor-race stake.
In a move not related to the stakes deficit, the prize money for Maiden Plates at Turffontein and the Vaal is to drop from R80,000 to R70,000. This will allow for up to 32 Maiden Plates programmed from January to July to be split into two races when the number of final acceptors warrants creating an extra race.
The RA is doubling the number of races in which it pays bonuses. There will be 38 such races at Turffontein and the Vaal in 2011, each with a R20,000 bonus for the owners if they are RA members. There will be 16 bonus races in Port Elizabeth, each with an additional R15,000 for RA-member owners, and four such races at Flamingo Park each with a R10,000 bonus.

investigated various other options to deal with the deficit. .....

half the salaries, increase the time at the office (each get a clock card), scrap the company credit cards, .....???

Where does the RA get the Bonus money from?

I don't think I'd like to own a horse, lots of fees and little in stakes...

Hibs, are you referring to the RA members' bonus payout money of R20K?

I still think its ok to own horses in SA, have done a few comparisons on the site re: if you win a maiden how many months training does it cover and we are in the pound/rand seats compared with the UK plus MDK says buying horse flesh locally could be a gold mine if you consider the potential we have on the International front (tu)

Owners' fees to rise to cover £6.1m funding gap

OWNERS' fees are set to increase by an average of £100 per horse as part of a package of measures designed to deal with a £6.1 million funding gap, the BHA announced on Thursday.

The move, which aims to raise £1.5m, is designed to counter the Levy Board's cut in regulatory and integrity funding to racecourses in 2011.

A further £3.1m will be absorbed by racecourses in 2011 to tackle the shortfall and the Levy Board aims to reduce expenditure by the governing body by a further£1.5m.

Prices for BHA publications will increase by 4 per cent but charges to trainers and jockeys will remain unchanged.

Nic Coward, chief executive of the BHA said: "This is a complex balancing exercise involving a short and long term view of impacts, and the best way for the sport to go forward.


"To place the entire burden of the levy cut on racecourses would have had a number of potentially very damaging consequences, including serious questions about the fixture list and race programme, and impacting owners through a reduction in racecourse contributions to prize-money.

"We have reduced the cost of running the sport by driving efficiency, whilst at the same time maintaining the scope of the services we carry out for the diverse interests in racing, and high service levels.

"This further change in our cost base comes on top of the considerable reductions we have made over the last three years. The changes to date have been planned through and implemented with great care, and not materially impacted the wider sport."

Hibs I read and thought exact same where RA get Bonus Money.

If they have 2000 Members which was last number i read here. at say 2000 think was 1850 this year that make 4 million in membership fees but this must cover rent, salaries other over heads etc.

Do they use Dividends from NHRT shares in Phumelela.

Good question Hibs

To all others if you race for stakes you will go broke.

Race for fun and take the loss.

Enjoy the wins whether at the tote,bookie or if horse gods smile on you a race winner and finally ignore the shit that is administration cause there enough at all the yards if you need some.

Nomination fees for ALL entries paid to the RA for the benefit of the few(members)...complete theft.

My last horse passed away on Sunday,and thats me....won't even renew my colours!

If racing is ever run by a NATIONAL owners and breeders assoc. with a non-profit management company operating racing and the betting,(without the need for corporate dividends) I will reassess.

Would have been funny, if I wasn't so serious; enough money to pay the P dividends, but not enough to keep stakes to the same levels - reductions in maiden stakes and 'out-of-season' stakes; and our protector, the RA's answer is to 'double' the number of races where bonusses are paid to RA members. What about the other owners who also pay nomination fees - why don't they just add to the stakes pot?

And it is not a vailid argument imo to say that we are better of than the UK; they are worse off than we are, yes, but so what?

It is really getting to be an expensive habit to feed - for the breeders' sake I hope there is going to be whole lot of overseas buyers coming to the 'new improved' Cape Premier sale (and to the NYS), because local investment is going to get less and less.

rob faux Wrote:

---

> Nomination fees for ALL entries paid to the RA for
> the benefit of the few(members)...complete theft.
>
> My last horse passed away on Sunday,and thats
> me....won't even renew my colours!
>
> If racing is ever run by a NATIONAL owners and
> breeders assoc. with a non-profit management
> company operating racing and the betting,(without
> the need for corporate dividends) I will reassess.

Hell Rob, I'm sorry to read about El Kap....

was this all announced at the ra meeting last week on the 9th dec?rob sorry to hear about the passing of your horse who gave you plenty fun....//instead of comparing to england why dont we compare to hong kong and singapore

more punters needed, clearly.