I've been re-reading the SadinskyPanelReport (SPR)
and want to review some of its details DIRECTLY.
The executive summary on pages 3-6 is the obvious
starting place.
[pag3-par3] the industry derives its income from 3
source:
- house take from wagering
- exporting ontario grown horses
- slots subsidy
i agree completely and would also include
4) private money invested and lost on horse racing
ownership
For example, Matts Sundin spends $100,000 a year on
his race horses and they ONLY make $60,000 a year.
Thats a net gain of $40,000 for the racing industry
- money brought from hockey into horse racing.
[pag3-par4] the slots program is now 10 years old
... it was introduced without specific directions
or benchmarks on how the money should to be used.
completely agree - no metrics of any kind, no
accountability whatsoever, only "implied" good
intentions that are NOT happening at most tracks.
[pag3-par5] OHRIA, the industry association, has
failed to become an effective economic regulator
for the industry due mostly to its inability to
make decisions
agree completely, demonstrated lack of power to
make changes and a thus no visionary leadership
[pag4-par1] HRO would take over the economic
regulation of the industry including:
setting/approving race dates
developing a detailed industry strategic plan
administering province wide programs (HIP,
Quarter horse development Plan)
what to do with tax reduction funds
branding and development of an industry-wide
marketing strategy
all very reasonable - perhaps not enough to turn
things around ... so MORE should be added to this list.
call this the MANDATE of the HRO
The MOST important details in the report
[pag4-par2] HROs ability to work in the best
interests of the industry as a whole is perhaps the
single most important element for the future
success of the horse racing and breeding industry
in Ontario.
quite simply, HRO will be given the power and means
to make changes.
Changes can have good effects or bad effects -
thats why CHANGE is so risky.
I prefer a planned/managed/proactive approach to
change (as would be tasked to HRO) instead of an
unplanned, reactionary approach (make the best of
whatever happens next approach that the industry
has been using so far).
[pag4-par4] The Panel supports a continued 20%
slots subsidy but recommends that the program be
adjusted to better meet the objectives of enhancing
wagering on Ontario races and growing Ontario horses.
well said, and ties DIRECTLY into [pag3-par3]
profit streams. more detail is certainly needed but
the recommendation is sound
[pag4-par5] slot revenue be distributed as follows:
25% to host track
25% to local racing purses
50% to HRO and pooled across the province to
benefit the whole ontario racing industry
this really SCARES people. Why should HRO get
double what the horsemen or the track get ?
It sends most horsemen into a ranting rage about
gov't killing their livelihood and starving their
families.
Its important to understand it in CONTEXT. HRO will
get 50% (not tricks there) but will be responsible
for spending this money AS IT WAS INTENDED to be
spent - and that is a good thing - and something
that the current racing industry has NOT be able to
achieve.
The next few paragraphs better explains the impact
of this HUGE change.
[pag4-par5/6] HRO gets 1/2 of the slots revenue to
be spent like this:
10% on industry-wide initiatives like operating
costs, branding and generic marketing of ONtario
horse racing, R&D for new wagering products and
technology use.
90% on programs aimed at enhancing Ontario race
wagering and exporting ON horses
That's IMPORTANT. HRO gets 50% of the slots revenue
but ONLY 10% of that (ie. 5% of the industries
slots revenue) goes toward indirect costs. 90% of
that money goes toward programs to DIRECTLY enhance
horse racing's other 2 revenue streams.
THIS IS GOODNESS. The report goes on to add detail
about HOW hro will spend this 90%.
[pag4-par7] 3 programs to enhance ontario wagering
product and export of ontario grown horses:
- funding restricted races for Ontario grown horses
- purse money bonuses to owners/breeders of
ontario grown horses
- giving money to the poor tracks and purses to
keep the provincial playing field more level
Wow, 90% of the slots revenue taken by HRO comes
back to the tracks/horsemen BUT in planned ways.
programs managed to enhance the racing industry and
our business revenue streams. This is good.
[pag5-par2] these 3 programs would flow most of the
slot revenue back to racetracks and racing purses
but are incentive based available for tracks to
grow their wagering product on live racing.
Of course still needs MORE details but it sounds
like the programs are aiming money in the right
directions.
