The plan to revitalise the Auckland racing scene proposes to double average stake levels per race from NZ$50,000 to NZ$100,000, at least 40 race days annually on an international standard track at Ellerslie where a StrathAyr surface will be installed and three races worth NZ$1 million and 10 at NZ$500,000 each year.
Central to the proposal is a merger of the Auckland and Counties Racing Clubs and continued dialogue with the Avondale Jockey Club (AJC) and the opportunity for it to join the partnership.
“I think it’s a watershed day for the advancement of what was put in place by the Messara Report and it’s a real positive,” Counties Racing Club Chairman Mark Chitty said.
“There will always be detractors, but continuing to do what we do and expecting a different result isn’t going to happen, it’s no longer sustainable.
“This is a growth strategy and a lot of projections in racing in the last little while have all been on a downward spiral. There are reduced numbers, reduced foal crop and costs going up and everything getting worse. This is an attempt to turn that all around.”
“This is a growth strategy and a lot of projections in racing in the last little while have all been on a downward spiral.” – Mark Chitty
Chitty said there was a determination to move forward with the proposals at a good pace.
“It’s got to go through a member approval process and it is early stages, but it will probably evolve within the next few months. We’re going to keep rolling with it.
“We don’t know the response from Avondale yet, but fundamentally, what has been proposed is between Ellerslie and Counties and the Deloitte report was looking at the economic model for an amalgamated entity.
“It has to be presented in front of members. There is a members’ forum set for Avondale (on Tuesday) and Ellerslie and Counties will do the same thing. Avondale is a key cog in the wheel for northern racing and they have to make their own decisions.”
Mark Chitty
The sale of assets is required to generate funding for increased stakes and facility improvements at Ellerslie and Chitty said the creation of an investment portfolio will help future-proof the funding model of the new club.
“You are going to want in the vicinity of a NZ$200 to NZ$250 million fund. From what we have got out of our Deloittes report we can achieve that.
“You are going to want in the vicinity of a NZ$200 to NZ$250 million fund. From what we have got out of our Deloittes report we can achieve that.” – Mark Chitty
“To future proof you need to ring-fence investment so that it does not go into infrastructure or working capital.
“It needs to continue to earn you money and that possibly hasn’t been done previously.
“One of those premises is raising an investment fund that allows us to put money into stakes. We are going to get a racing dividend from the TAB from turnover, but this is its own investment doing the work.
“I think everyone is seeing this as very much industry orientated and owner orientated. We only have to look across the Tasman to see that people want to be involved within Australian racing from all around the world because they are returning 48 to 50 cents in the dollar.”
The mounting yard at Ellerslie
Independent analysis
Independent analysis of the plan by Deloitte has suggested an amalgamation of ARC and the CRC would create a Club with the financial strength and facilities to meet the objectives that the Clubs are looking to achieve.
“The Clubs would be in a position to materially lift stake money and other returns to the industry as a consequence of their ability to release capital and build a significant investment portfolio – the returns on which would supplement distributions from New Zealand Thoroughbred Racing,” it said.
“A successful execution of the amalgamation option would position Auckland to lead the way for the restructure of the New Zealand thoroughbred industry. That is essential if the industry is to survive and flourish.”
While Pukekohe may no longer host race meetings under the new proposal, Chitty said the establishment of a training facility near the township is a major talking point.
“I am very mindful of attempting to develop a training centre. I think it is important to facilitate the horses and people.
“Obviously, you can’t go back to the inner city to train racehorses. From where I sit, I would like to see training developed further and bringing young people into the industry.”
On Monday, members of the Auckland Racing Club (ARC) and the Counties Racing Club (CRC) were updated on the action plan by letter from Chitty and ARC Chairman Doug Alderslade.
