Maybe I'm smoking my socks????

It seems to me like more and more of the BIG phumelela boys (board members) are supporting racing in the Western Cape. Marcus Jooste has been associated with Ramsden now for a while and now I see Chris van Niekerk also has horses with Joey.

This could all be a huge coincidence or perhaps the battle lines are being drawn and the takeover is imminent?

What say you?

Your smoking some serious Shit there tommy

I wish Bob

Of course they could just want to have horses in what by a country mile is the best place in SA to have good horses, and probably the worst by a country mile to have mediocre horses.....<

Tommy have a look at how things have played out in the last while and draw your own conclusions: Maybe Magic will see the following theory as another reason why a punters association cannot be formed, nonetheless it is an interesting theory which probably should be tested.

1. You are talking about some of SA's leading business people and strategists
2. A few years ago there was a Trojan horse theory
3. P cannot grow its business organically locally so it moves to acquire SA's other half of racing
4. Strategic alliances are sort eg. A klawervlei man and on course presenter provides Mr Adams a platform to have a go at GC.
5. There is a dissolution of GC call that follows
6. You have to question the motives of 58 / 42 when current split is 75 / 25. P would love to control the WC and take an additional 17% from KZN further weakening what remains of GC under the "dissolution call" if it were to be implemented.
7. They cannot play the race card

When it comes to strategies, these guys make Anand Topalov look like a tiddly winks champion. The reality of the situation though is that by its very nature capital exploits. One of the first things you learn at school about business and entrepreneurship is that the best business people are able identify and exploit opportunity. Exploit being the operative word. Once there is nothing left to exploit then what. Well you look for new opportunities to exploit. The net result is that SA racing is only attractive to capital whilst there are opportunities to exploit. Those in it for the love of the game are considered sentimental fools (GC). For Kings and Clowns

We all know that racing by its nature is fickle. You are the best thing since sliced bread one day and looking for work the next.

Now is not the time to be letting emotions dominate decision making in racing. Look at what is happening in Cairo. Protesters are firm at first then the pres makes an emotional announcement and the emotional people (reported on BBC World) of Egypt give him a gap and some suddenly turn into Mubarak loyalists. (People being interviewed admit to being an emotional nation). Same thing in SA racing, draw on the legacy of a bygone era to stir emotion and in turn, whatever is being said must be the truth - brilliant.

Who knows what the long term strategy for racing is? We know that P has global dominance aspirations and perhaps SA racing is a pool filled with liquidity and plugs are slowly being pulled to allow an outward flow to who knows where in the world. Then again this is probably just inflamatory conspiracy and this has no place in racing. We have toask; what is the business model for racing when opposing forces are tearing racing apart?

Silence???????

I was hoping that more or even one poster would have a view on the above. It seems easier to wish the contentious away.

Well rather than let this slip off the page, how about this for an observation and perhaps even a ludicrous solution.

There is a move to monopolise horse racing by merging the two operators and of course there are two opposing views on it. Perhaps there are even a few hybrids of these ideas. these hybrids will ultimately end up one way or the other in the long term anyway. Is monopolising the right way forward? Lets look at in from the view of Joe public and the parastatal monopolies. Now here are wonderful examples of how monopolistic companies operate. These companies cannot even spell service never mind understand the meaning of the word. Is this what we want for racing? Do we want to give one operator unilateral power to do what they will with SA racing? Have either of the operators as custodians of South African racing proven that SA racing is its primary concern to date? They have proven that they are interested in other sources of revenue streams yes but haven't really made public what the long term plan is for taking racing to where it belongs - at the top.

I say lets regress. Forget a merger. Can all agreements between the operators and dissolve PGE rather. Let the regions compete for the racing rand and then lets see what happens. I am sure that there is a lot of fat in the PGE agreements which can be trimmed to suite this model. GC can sell off its share of the agreement to P and have an immediate cash injection to focus on ways to improve racing. Perhaps they can look to formulate their own agreements abroad.

It seems pie in the sky but can you imagine the possibilities:

1. Each operator broadcasting from its own region - (a second channel) -
i. The channels can choose to be a slot machine (the current format of Teletrack) or
ii. give us what we want and show race day coverage in depth. I almost guarantee that this alternate will pull bigger crowds and be rated higher than the slot machine.

From this, proper advertising opportunities can be sold to cover the cost of running the channel. We see the names of businesses in the race cards but this is where it ends. Selling these spots must be difficult based on this model and surely it would be far more attractive to the race sponsor to have a 30 second to a minute advertising spot prior to the parade and canter down. Surely this would benefit the racing industry at large. The channel could set up a production arm which could create the material for these spots. Again more revenue for the channel and less cost to operators (shareholders) and more in the can for stakes and overall improvement of racing. The operator should have a shareholding in the broadcasting company but not have an influence on the management and running of the channel. Each should stick to what they do best and then maybe we will get a solid offering from each rather than half jobs from each.

2. Each operator to compete for the racing rand. The best offering will capture the most rands. This may cause one to focus more on other opportunities Soccer, international racing and all the other non SA horse racing rubbish such underwater javelin throwing from Kazakstan.

3. Take the flow of cash away from both of them rather than hand it to P as was suggested. Let an independent body control funding and distribute according to an agreed formula. I am sure there are IT admin platforms that can quite easily handle this. - Perhaps SARS can handle this for them.

4. Let each maintain its assets

5. Let each negotiate with vets and create a veterinary panel on the similar basis as medical aids negotiate with doctors, specialists and hospitals. Lobby government to intervene if need be to push for regulation on veterinary services to the horse racing industry.

6. Whilst there is this urgency to monopolise we should rather be looking to encourage entrepreneurship in the industry. The more this mentality is fostered the more people will be used to service the industry and the more interest you will create in the game.

The list can go on forever but the idea really is competition rather than a monopoly. Competition creates healthy tension whereas monopolies tend to breed complacency and nonentity (that's for you Pirates, I stayed away from the copyright) not to mention unchecked unilateral decision making.

Everyday I notice the way business is changing. In the financial services industry I note business models which dis empower decision makers at regional and or local level. There is the urgency to centralise power and decision making which is great for profits and shareholders but is meaningless to to the end user. In their infinite wisdom to try and streamline, barriers are created and nothing happens quickly at all. I give you an example. in the old days my old man could go to his local bank manager in the small town of Umkomaas and have a loan or overdraft or whatever approved (mostly declined) by the bank manager at the branch. He would never get that right today. Today he wouldn't know who the bank manager was if he walked straight past him. I view the above as a way for corporates to disassociate themselves from their customer base which allows them this ability to shift you from pillar to post without having to be accountable for their actions.

Is this what you want for racing??? Give it some thought and disagree with me and call me a lunatic if I am wrong but at least have an opinion on the topic.

Al,

I have thought about solutions long and hard and because of the state that racing is in right now I can only see amalgamation working. I know it is contrary to what you have suggested but I fear there are too many players pulling in too many different directions. According to me that will not change until the current management structure of GC changes drastically. I fear since the olden days the thorn in the amalgamation side has always been KZN. They don't want to loose their identity, they don't want to give up their property, they don't want to be part of the global machine. They have come up with every excuse in the book. I have been hearing of these stories long before Phumelela even existed, long before the current directors even served on their respective boards and long before racing was ever in the position it is now........

Things will NOT change until certain members of the executive and non executive board of GC don't drop their ego's and work towards a common goal.

There are many ways an amalgamation can come together for the betterment of racing. Having said that you raise some very valid points for competition as well.

I'm on the merger side of the fence as I think we need a unified front to fight casinos, lotteries and the economy in general. Do I think the Phumelela execs are doing a good enough job running racing IN SOUTH AFRICA? No not at all, but we have to crawl before we can run imo.
Let's get this pesky in fighting out of the way and then tackle the major issues we have in front of us.

There are many racing men out there who know this sport inside out and who would do anything to get this industry on the up again, but those are not the men who make the decisions........THAT is the major problem with our industry today!

Great posts Al, I like the fact that you are thinking outside the box!!

Tommy - Living state side I would have thought that the yanks would have convinced you that competition is king.

I remember you posting something along the lines of purchasing a race course and operating it as an independent. I am merely echoing that sentiment but suggesting that it be done from the GC platform. It does not have to be what it is now it needs a new face altogether but the platform is there.

Racing in SA has come a long way without international pools etc. I certainly am unaware of how the international stuff benefits SA racing at all. Does it flow back to stakes or not? If it does, at what percentage? Too many questions. In the old days it was a simple game. Those that had the means purchased the horses, the punter punted, the operator took a slice and paid the owner. Now we have to add shareholders to the mix. Shareholders now need a piece of the action for their investment, management are responsible for results because its about numbers on a balance sheet - SHOW ME THE MONEY. Shareholders don't give a shit that Flamingo race 2 was a cock up and punters think SA racing is pathetic. It would be the same as me reporting to the director of the company I work for that one of the cleaners broke a handle off the toilet. Results - that's all its about.

Answer me this, without corporatisation every race track existing and sold were built. How many racks have P built. What have shareholders contributed to the growth of the industry under the new guise. No new racecourses being built that i know of.

I dont beleive that stuborness is the only contributing factor to racings gradual decline. Its a useful excuse. I believe a consistent approach should be used. The worlds economy melted. For me a primary factor to where we are. You just have to look at property, the hottest thing a few years ago with more Estate agents than corner Cafes. Where are they now. There is still fallout with some very heavy hitters coming out with egg on their face.

All of the above is probably bullshit because I am not armed with the info. The point really is that we cannot just accept. Hopefully something in one of these posts will spark a thought from a major player which sends our racing in the right direction.

Tommy thanks for posting man. Its easy to think out of the box when you were never put in it in the first place (lol).

Morning Al and thanks for a great contribution and will comment today, as you know I also have a "real" job to feed my hobby and have a busy day.

In all walks of life money gains respect (right or wrong) and sometimes the punters are fighting against all odds, but one thing for sure is that the tote is battling against bookmakers due to the lack of confidence in the product and the introduction of the ATC bet and erratic win dividends has made it worse in my opinion.

txs again

Should add with decreased tote turnover the racing industry will find itself under more pressure, if you add poor customer service. :S

Big challenge ahead for all, but I would rather remain positive and find solutions..................

Have to agree Scotia, solutions have to be found and perhaps putting these thoughts out there will lead to further thought which will lead to solutions.

I cant see how a monopoly will improve turnover or service. Racing is an excuse game. Everything from 100001 reasons why a horse did not win to bookies are eating into our turnover, to GC directors are whatever they are accused of being. (Still boggles the mind how these two are in partnership under the banner of PGE).

Many moons ago racing did not take place 7 days a week but somehow seemed to survive. Perhaps its a case of too many betting opportunities might be costing the industry too much money. The trick is to find the economy of scale. Here is a thought, what did the abandoned meeting cost P on Monday. I reckon a few bombs. Surely they have to still pay staff and all the costs related to a raceday regardless of whether the meeting goes past the 2nd race or not.

On the ATC I believe that it was an attempt to counter act fixed odds multiples. It probably works for the small time PA punter who goes out of the PA in the first or second leg and wants to have a go straight ATC places. It does nothing for consistency but I am sure helps to pull the last few rands out of the tote punter. Will it have an impact long term. Well its yet to be properly tested over time.

I honestly believe that there is a certain level of conversion from Met /July day mug punter to more frequent punter after these events. A whole lot of people playing Lucky number 7 and walking away with a 20/1 shot on Met day. What has happened during and immediately after Met day?

1. Sound quality on T Track was and believe it or not, still is poor. I have two Tv's producing the same quality sound out of 232. Do these people not watch their own channel.
2. These mugs turn on 232 and see Ngong - Dicey footage and a race caller who doesn't know his ass from his elbow in a 6 horse field. "Oh..um uh...that..was...um... oh a horse with a jockey on..that was a close call" winner by three lengths and order of finish completely different to how it was called.
3. From what you are saying, sounds like some suspect movement in the tote results again
4. Saftote freezing on results
5. Flamingo Park rewriting the rules on objections

These are the basics which are not right. How can we believe a monopoly will improve any of this? It certainly is not the fault of GC's directors its an industry problem.

I am talking strickly from a punters point of view.The totes ara filthy places the toilets are places that yoy do not want to hang it out inwwhen you place a bet you have to repeat it more than once ,the cashiers are poorly trained,when you win the cashier asks for your small change,standard practice now.My very worst ,the one thing that turns me wild is when i take my money out my pocket not a voucher, not a credid card,not a cheque and i place a bet and it wins and i come back and i could be travelling back 20 to 30 km i get told that they do not have the money to pay and i must either take a voucher or return at a later date.This practice makes me pop a vessel ,The absolute cheek they the operators do not give an absolute fuck about there customers and this is why they are losing business to the bookmakers,a bookmaker might not be everybodys cup of tea i love them because they give me the service i deserve.Try opening an aacc with the tote and the same discraceful service prevails ages for deposits to show and even worse when you want to withdraw.Fuck Them viva the bookmaker