Racing SA Convention 2006

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Racing SA Convention 2006

• Where it all began.
• - Roman times
• - Charles II
• - Match racing

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Racing SA Convention 2006

• History Salient events in SA
• - 1795 British Garrison
• - 1797 First Race meeting on Greenpoint Common
• - 1802 South African Racing Club
• - 1844 Pietermaritzburg First Annual Meeting
• - 1882 Formation of Jockey Club of SA
• - 1886 First Johannesburg racing
• - 1879 First July Handicap
• - 1888 to 1914 gt100 Clubs established

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Racing SA Convention 2006

• The Club Structure
• - A British Military system
• - Each Club had own facilities
• - Club Stewards and Rules
• - Operations under auspices of Jockey Club

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Racing SA Convention 2006

• Progress 1886 to 1986
• - Provincial controls and taxes
• - The only legitimate form of gambling
• - A leisurely, socially acceptable once a week
  affair
• - International isolation
• - Parochialism
• - Major Capital projects

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Racing SA Convention 2006

• The Past 100 Years 1886 to 1986
• The end of this period was characterised by
• - declining attendances
• - illegal bucket shops
• - illegal casinos
• - anticipation of legal casinos
• - unequal taxation
• - financial losses at some clubs

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Racing SA Convention 2006

• Conflict with the owners
• - true ownership rests with 4 000 individual
  owners
• - clubs an association of owners
• - separation of interests of clubs and owners
• - formation of additional owners associations

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Racing SA Convention 2006

• Conflict with the owners
• - true ownership rests with 4 000 individual
  owners
• - clubs an association of owners
• - separation of interests of clubs and owners
• - formation of additional owners associations
• Lessons for the future
• - owners will want their own associations
• - owners representations havent always been
  effective

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Racing SA Convention 2006

• 1986 to 1996
• Early attempts at Transition Jockeying for
  position!
• - Clubs
• - Tvl Clubs failed to accept merger proposals
• - WC Clubs merged the two bodies
• - KZN merged their three clubs
• - ARCSA
• - Owners
• - SAHRO
• - NOTA

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Racing SA Convention 2006

• Catalysts for change
• - Interest rates and taxes!
• - Political change
• - Competition
• - Conflict

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Racing SA Convention 2006

• The last 20 years 1986 to 2006
• - The most dramatic in history
• - New Constitutions
• - Parochialism gives way to Commercialisation
• - Re-enter the International Arena

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Racing SA Convention 2006

• Under pressure from losses, taxes and politicians
  
• Gauteng, Eastern Cape Northern Cape
• - Phumelela
• - The Racing Association
• - The Racing Trust
• KZN Western Cape
• - Gold Circle
• - WPOTA

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Racing SA Convention 2006

• The demise of the club system
• - all 13 clubs were effectively folded into the
  new structures
• - vestiges were still apparent in the Jockey
  Club
• and in the RA, Gold Circle Chapters and WPOTA
• - maintained provincial status and differences
• - created commercial competition
• - opened the way for the commercial era

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Racing SA Convention 2006

• Operators - 2 models
• Gold Circle
• - Limited Liability Company
• - Club Shells as shareholders
• - All profits returned to stakes
• Phumelela
• - Limited Liability Company
• - RA Racing Trust Public shareholders
• - Dividends to shareholders

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Racing SA Convention 2006

• Owners Associations 3 models
• Racing Association
• - includes all former club members
• - all new members to be colour holders
• - shareholder in Phumelela
• - has capacity to add to stakes
• - negotiates with Phumelela re owners interests
• KZN Racing Chapter
• - includes all former club KZNOTA members
• - admits social colour holders
• - only colour holders elected to board
• - monitors directs racing operations
• WC Racing Chapter
• - open to all former club KZNOTA members
• - admits social colour holders
• - only colour holders elected to board

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Racing SA Convention 2006

• Commercialisation stage 1
• Listing of Phumelela
• - Creation of wealth for shareholders incl BEE
• - Rationalisation of resources services
• - Exploitation of other opportunities
• Corporatisation of Gold Circle
• - Creation of wealth for stakeholders
• - Rationalisation of resources services
• - Exploitation of other opportunities

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Racing SA Convention 2006

• Race Tracks
• Closed Milnerton, Gosforth Park, Bloemfontein
• Make over Kimberly Flamingo Park
• Improvements Pietermaritzburg casino inside
  track
• Vaal sand track
• Turffontein inside track
• Newmarket lights
• Planned Improvements Virtually all!

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Racing SA Convention 2006

• Commercialisation - Stage 2
• Co-operation
• - National Tote Saftote
• - Tellytrack
• - Co-mingling pools
• - Handicapping
• - Fixtures
• - National Racing Bureau
• - Development of technology

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Racing SA Convention 2006

• Internationalisation
• - Admission to Asian Racing Federation
• - Hosted the Asian Racing Conference
• - Screening of racing from UK Mauritius
• - Co-mingling of UK pools
• - SA jockeys horses winning races in Dubai,
  USA, UK, Malaysia, HK
• - Sale of racing picture to many racing
  countries
• - Overseas owners racing in SA
• - Possible overseas participation in JB Met

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Racing SA Convention 2006

• Breeding more Internationalisation
• - Stallions standing for the a/c of overseas
  owners
• - New stallions for SA breeders a/c
• - New fillies for racing and later breeding
• - New mares

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Racing SA Convention 2006

• Jockey Club Transition
• - Reduction in Provincial structures
• - Name change to eliminate club connotations
• - Improved communication transparency
• - Improved use of technology
• - patrol films
• - micro-chips in foals 4 crops
• - drug testing in own laboratory

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Racing SA Convention 2006

• Some negatives
• - poor attendances
• - aging racing population
• - African Horse Sickness
• - Equine flu
• - slow uptake from BEE in horse ownership
• - loss of quality horses to overseas buyers
• - loss of quality jockeys administrators
  overseas
• - rising cost recovery gap for owners

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Racing SA Convention 2006

• Period of Commercialisation
• - brought about unprecedented change
• - opened up incredible opportunities

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Racing SA Convention 2006

• Choosing the Right Path