RA member expectations list

Dear RA (presumably the Board)

While it seems strange to request expectations of members on only one of many websites, rather than direct engagement with members through e.g. a special meeting or circulated invitation, the (somewhat sudden) effort at transparency is worthy of attention.

So

1) what is the agreed formula for determining stakes. What has the RA done to ensure that stakes will not decrease while the Operator's shareholders still enjoy respectable dividend yields??

2) would it not be a good idea to convene an open, fully representative Stakeholders meeting (without lobbying and bodyguards) to maturely address all the identified issues bedevelling our sport?

3) Is the RA comfortable with representation on, and effectiveness of, the Racing Trust?

4) does the condition of some tracks during winter, including Vaal sand, not evoke concern among the RA Board as to the welfare of the horse? Are sufficient funds released by the Operator to optimise track conditions? Are all levels of track personnel fully trained?

5) would it not be a good idea to invite Adv Maselle to rejoin after his palpably shameful treatment, which apparently left the current RA Board divided as to the merits of the action to essentially belittle and defame him,

6) When is the RA website likely to have completed upgrading/renovations

7) What are current and future plans for Randjiesfontein?

I remain, most grateful for your attention (name available on request)

A quick answer to 6) above : We have a final meeting on Monday for changes to the website and are pushing to go live on 01 Nov.

antsinner Wrote:

---

> RA SAYS "second track at Fairview, most likely a
> polytrack due to the moderate climate, and due to
> the lack of water available in the area"
>
> Mr Ra
> if you do decide to lay a polytrack surface at
> fairview , make sure you pick the material
> correctly . I am no track manager but wherever
> there is a synthetic surface i have observed water
> being used on these surfaces probably more so
> than on grass tracks , this especially out of the
> rainy seasons .
>
> Just speak to Zakheel at the vaal to get an idea
> of howmuch water he uses at the vaal and how
> relieved he is that the rains have come . Also if
> you had listened to the track manager of meydan
> talking about the tapeta you would understand the
> necesity water has in the preparation of that
> track .
> in England if i recall correctly one or two of
> the three polytracks have what look like a dam
> within them .
>
> So if you think you not gonna consume water on the
> new polytrack think twice . Unless offcourse you
> have sourced a material which doesn't require
> water to maintain. My knowledge is very limited or
> more like near nil on the subject but common sense
> says investigate correctly when making the
> decision.


Regarding the question of which surface is to be installed at Fairview (Sand, Turf, or Synthetic), I had a meeting today with Naresh of Phumelela. For the past 6+ years, he has been researching synthetic surfaces used around the world to determine which would be best for South African racecourses. In this time, he has visited several courses in America, the UK, and Australia. A summary of the details regarding the Polytrack product are as follows:

1) The Polytrack uses 10-20% of the amount of water used on a turf track. A sand track uses more water than a turf track.

2) The Polytrack does not require divot repairers.

3) The Polytrack does not require an irrigation system, the water is distributed by a water tanker.

4) Polytrack use a GPS system to map the actual location of the new site, then they acquire several years of climate data for that location to determine the ideal mix of ingredients for the Polytrack’s construction. The composition of each Polytrack is different depending on the location.

5) In terms of maintenance costs, a sand track has the highest overall cost, with turf second highest, and the Polytrack requiring the least maintenance. Of vital importance is the track manager and his/her ability to develop the necessary skills and processes in maintaining the track, therefore included in the installation is a 6 month on-site training program to maximise the Polytrack’s potential for success.

6) The cost of a Polytrack is similar to that of a Sand track. This was not always the case as the silica required for the Polytrack was not available from a local source a few years back which made the cost more than double the current level.

7) Polytrack is the current market leader in the Synthetic racing surface market, that is why Phumelela have chosen them.



Having spoken to Naresh and having experienced his in-depth knowledge first hand, not just on the Polytrack product, but on all major competitors, I can confirm that Phumelela have done extensive research regarding the Polytrack.

The following % take-outs apply to the stakes pot:



Bookmakers levies 30%

Unclaimed dividends and fractions 30%

Net lotto income 15%

Net Bingo income 15%

Net LPM income 15%

Net GC and international royalties SA product 30%

Net share of IOM tote limited income 30%

Fixed odds (Betting World) 30%

80% of the dividend paid to the Horseracing Trust by Phumelela is paid into the stakes pot.



The RA has the stakes audited annually by KPMG to ensure that they are applied correctly.

Each year, once the results of Phumelela are available, the RA meets with Phumelela to discuss the stakes for the following season. These meetings have been ongoing for the last month and are yet to be finalised because the RA is exploring every possible option to ensure that the stakes for the next season are as high as possible with the current stakes available.

The RA cannot guarantee that stakes will not decrease. It stands to reason that if any variable in the stakes calculation decreases, the stakes pot decreases. What the RA continues to do is ensure that additional revenue streams created by Phumelela are included in the stakes calculation, whenever possible.

Regarding the second Tellytrack channel and the availability of Tellytrack on a lesser subscription, I managed to source the following info from Tellytrack:

Tellytrack are still investigating a second channel, the main barrier being the monthly costs which are in excess of R500k. Headway is being made, but it seems a second channel is still some way off.

Unfortunately M-Net is responsible for the allocation of channels in each subscription level, it is an issue that Tellytrack is trying to address. They are constantly looking for alternative broadcasts, but nothing suitable has been found as yet.

doggie Wrote:

---

> 3) Is the RA comfortable with representation on,
> and effectiveness of, the Racing Trust?


The RA is satisfied with the representation and effectiveness of the Racing Trust's board. Many programmes being implemented by the Trust are a testament to their committment to the racing industry. These programmes include the Gauteng Jockey Academy, the Workriders programme, and the advancement of the AHS research via Racing South Africa.

@RA:

'Unfortunately M-Net is responsible for the allocation of channels in each subscription level, it is an issue that Tellytrack is trying to address. '

Tnx for this info. Why was it not disclosed earlier (over a year ago) when first raised?

If M-Net will not come to the party, why not approach the 2nd (HiTop or whatever) transmitter?

For the info of Clansmen, M-Net has an EasyView Cahnnel with SABC, E-TV and a few others (AlJazeera, Soweto, religious...) which is available for circa R22pm or R220pa.

This would be an ideal vehicle for TellyTrack to access / expose horseracing to middle and township black viewers (including pensioners, the apple of the eye for casinos!).

mr ra why dont you go onto scotfreeracingweb site and answer their questions pal?as they highlight in phums report they say how strong their cash flow is and declare a dividend plus they are bullish about the times that lie ahead yet in the eastern province herald they give the reason for selling arlington as the tough conditions and hard times ahead.....the local industry is burning.

@RA:

'Many programmes being implemented by the Trust are a testament to their committment to the racing industry. These programmes include the Gauteng Jockey Academy, the Workriders programme, and the advancement of the AHS research via Racing South Africa. '

Why was the farrier school shut down?

When applications for intakes were first announced, there were over 200 applicants (blacks), including females.

What is the RA doing promoting blacks in this field?

Also, whilst the Workriders programme is commendable, what about the living standards and working conditions of grooms? Should there not be some proactive intervention to upgrade them as is the international norm?

For instance, during corporatisation, there was much made of ABET for grooms to bring them into upper societal levels... that also died!

The emphasis seems to be now only on what will look palatable to Government and is seen to be BEE driven. I am somewhat cynical about the role of the black appointees on the RA who have never broached this aspect, objected or raised it publicly; in fact, one neither sees nor hears of them except as fawning hosts to the President on July Day!

For that matter, what about the Grooms' Fund?

There is a duly registered SA National Grooms' Association? Does the RA know about it? Will the RA interact with it, or, shoot it down?

I trust that these questions / concerns will also be addressed.

As you note, I can empathise when reasonable answers are given.... and not cynical comments or marginalising / ignoring one!

I must emphasize that I raise these questions in the interests of horseracing, for its sustainability, transparency and accountability to all stakeholders- not just those within your own precincts ... AND, not for personal gain, glory or promotion of any other agenda.

Good point Umlilo.

if that 2nd channel is in excess of R500g per month, can't the racing industry entice at least 5 MAIN SPONSORS per month to come to the party & assist with costs. plus most home viewers would not mind paying a small premium each month to have that 2nd channel.

how about asking some of the big guns for sponsorship - in return they get ADVERTISING on the 2nd channel........ they can quite easily cut their advertising budget from somewhere else.

VODACOM,
SOUTHERN SUNS HOTEL GROUP
J & B WHISKY
S.A.B.
EMPERORS PALACE...... they are forever advertising on radio.

50 - 100G PER month from these guys is a drop in the ocean,

ADD OCEAN BASKET
STEINHOFF
NEDERBERG........... come on wine estates, most of them are breeders as well

think OUTSIDE of the box !

doggie Wrote:

---

> 7) What are current and future plans for
> Randjiesfontein?
>


Regarding Randjesfontein,

Approximately 8 months ago, an application for a racing license at Randjesfontein was made, the outcome of which is still unknown. Until a decision is made, it will remain a training centre. Should a license be granted, the RA will have to engage in talks with Phumelela to determine the conditions under which they would agree to host racing there. Since Phumelela are the racing operator, it is entirely up to them whether or not Randjesfontein would become a regular racing centre or not.