OPEN FORUM – WEDNESDAY 13 APRIL 2011
PRESENT: L Wainstein (Chairman), M Currie, T Raath, P Naidoo,
A O’Connor, C Gerber, L Goosen, S Reid
IN ATTENDANCE: N Nofal, M Parker
1. STAKES AGREEMENT
Mr Wainstein said that critical to this follow up meeting is the stakes agreement to address the perception that owners are at a disadvantage as a result of amendments made to the original agreement in 1999, the amendment in 2002 at the time of TAB North West being incorporated into PGL and the current agreement which has been in operation since 2007 but has not been signed. He said that the current directors had scrutinised the agreements past and present to familiarise themselves with the contents thereof.
The one question that was asked by Mr Maselle at the previous forum, was the right of the RA to negotiate stakes on behalf of all owners irrespective of whether they were RA members or not.
Mr Currie said that in perusing the stakes documents, the RA had attempted to establish the rationale behind the decisions. He said that the reality of the situation was that the racing clubs could not cope financially and Province had stepped in offering financial assistance on condition that the clubs would corporatise.
Mr Currie said in the preamble of the stakes agreement, it was stated that the RA would negotiate with PGL as regards the stakes agreement. It was not specific about who the RA represented.
Mr Currie said that only the second addendum had been signed at this stage. In the initial stakes agreement, there had been no foresight into betting changing in the country and significant changes had come about in terms of the international product and Soccer 6. In this regard, PGL had to create new software to accommodate the new bet types.
Mr Goosen said that at the time of corporatisation, the roleplayers did not realise the full potential of the industry at that time. He said he represented a number of members from his stable as well of persons involved in stabling at Vaal racecourse. He said many patrons were totally dissatisfied with the Tellytrack product, in particular, replays and harness racing. He felt that Tellytrack/Phumelela had taken over the business and changed it thinking of betting only without taking account important issues in racing, namely the owners whose horses appear on the channel.
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Mr Gerber said in 1995, racing in PGL regions was under severe financial pressure. The casinos and lotto had had a critical financial effect on racing. If PGL had not been created there would be no racing today.
Mr Goosen acknowledged that the formation of PGL had saved racing. However, he felt that they had a stronghold over racing to make whatever changes they decided upon without consideration for roleplayers in the industry. He asked if PGL chose to feature more harness racing on Tellytrack, could they unilaterally make a decision to do so.
Mr Currie pointed out that in terms of the stakes agreement, there was initially a cap written into the agreement that PGL could have enforced. PGL elected not to go this route and in the strong economic climate, stakes were increased over and above the obligatory formula in the stakes agreement.
Mr Wainstein said in spite of the perception that PGL could act unilaterally, there were a number of agreements in place that they were obliged to honour. As an example, the gambling licence stipulated that there had to be 2 racecourses in PE. He said that PGL had to abide by regulations in the racing licence and the betting licence.
As regards the international licence, there has to be a certain number of racemeetings as per that agreement. The agreement provided for reciprocity – overseas countries take a certain number of South African races and in exchange, SA is obliged to take a certain number of international races. Mr Wainstein said that international did not wish to feature replays and interviews and for that reason, the RA had made the effort to provide replays online.
Mr Wainstein said there was good co-operation between the RA and PGL. He said that during May 2011, 8 extra races had been scheduled locally and 5 in Port Elizabeth and the stakes had been funded by the International division of PGL.
Mr Goosen said as far as he was concerned, he did not trust PGL. He said he had horses that were not able to get a run due to the programme but yet PGL were featuring harness races. He did not believe there was interest from the betting public for this type of race. He went on to say that the directors of the RA were influenced by PGL and were constantly defending their actions whilst he felt that their focus should be on owners interests first and foremost and not PGL. Mr Wainstein pointed out that PGL is a listed company and the RA could not tell them how to run their business. In his opinion, co-operation between PGL and RA was in the best interests of owners.
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The following schedule of figures relating to stakes was tabled.
Mr Reid raised the question of the confidentiality clause. He said it was the opinion of many owners that this agreement was used often to avoid answering questions. Mr Wainstein acknowledged this and said it was precisely for this reason that he had approached Rian du Plessis for his approval to address this with members. Mr Reid claimed that the inclusion of the confidentiality clause in the stakes agreement co-incided with 2 specific directors moving from the RA board and being appointed to the PGL board. The directors unanimously disputed this – Mr Currie said that this clause was in place from the outset.
2. JOCKEYS’ REMUNERATION
Mr Reid raised the matter of the majority of jockeys being paid 10% in respect of riding fees, irrespective of whether they where they stood on the jockeys’ log and in spite of the current economic climate. He asked the RA to consider representing owners’ interest and support owners by not enforcing jockeys earning a 10% riding fee. Mr Wainstein said that the RA at no stage supported the jockeys charging 10%.
3. PROGRAMMING COMMITTEE
In response to a question, Mr Goosen said he had represented the RA on the programming committee but had resigned due to the way in which the committee operated. He said that Jay Harilall arrives at the meeting with a programme that is a fait a compli. He said as far as he is concerned, the committee comprises a group of people who do not understand the industry, and prepare a computer generated programme.
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Mr Wainstein said that as a result of the closure of Newmarket – PGL scheduled 23 additional night meetings for Gold Circle in order to fulfil the international contract. Gold Circle are taking financial strain and for this reason PGL have had to take back those 23 racing fixtures.
Mr Goosen said that although lower stake races provide more opportunities to race and earn stakes, the industry needs a declaration of intent of what we stand for. We must not encourage mediocrity in Gauteng Province. We must strive for excellence.
Mr Wainstein said it is important to provide for smaller owners and trainers as well. We have taken away the subsidies and changed rules but Kimberley is now far more interesting in terms of betting.
4. OBLIGATION OF TRAINERS TOWARDS OWNERS
Mr Currie highlighted a problem in that trainers do not advise owners when the time is right to get rid of horses. They take the training fee from owners when the horse should not be in racing any longer.
Mr Reid said there were too many horses in training in the Gauteng region. He reminded the persons present of a rule that had been in place where once a horse turns 5 and they are still a maiden, they must be moved to the weaker racing centres. Mr Gerber said that maiden handicaps are being phased out. Mr Wainstein undertook to address this at an Industry Liaison meeting.
Mr Goosen said that part of the problem is in years gone by, a trainer would have an owner with 10 horses, now you have one horse with 10 owners. This scenario is due to the affordability.
5. RACING LICENCE AT RANDJESFONTEIN
Mr Wainstein said that a racing license at North Rand had been approved. He confirmed that PGL had agreed to the installation of a polytrack which would be a training track only, not a racing track.
He said although the RA had been granted a racing licence, no racing could be held at Randjesfontein without the permission of PGL as they held the betting licence.
Mr Wainstein said that the RA had been approached by an investment company who were interested in developing a racecourse in the North of Johannesburg. They had been requested to provide financial information and if this project was considered to be feasible, the RA would motivate this project with PGL.
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6. VAAL SAND TRACK
The question of long term viability of the sand track at the Vaal was raised.
Mr Goosen pointed out that a number of patrons were now buying horses suited to sand. Mr Reid said he did not support the lifting of the sand track, however, if a polytrack was being considered as a replacement, this may be a good alternative.
7. RACING IN P.E.
Mr Reid questioned the industry spending funds for the installation of a polytrack in PE. Mr Wainstein explained that in terms of the racing licence, it was stipulated that two tracks needed to be in operation. He said that there was presently a water shortage in the Eastern Cape and the long term goal of PGL was to close one track. The saving from this would be in the region of R5 million pa.
Mr Wainstein said that a letter had been circulated to PE owners and trainers asking for their input as regarding closing one racecourse and asking for their comments.
Mr Wainstein said the new starting stalls in PE would be delivered in May. Mr Goosen pointed out that the starting stalls in Gauteng were old and consideration should be given to replacing them.
8. MATCH RACES
Mr Wainstein said the RA had been approached to stage a match race. He said this may be considered but two well matched competitors needed to be agreed upon and a sponsor would be approached.
It should be noted that this is not an RA issue but rather, two owners would challenge each other and put up the stake of a match race.
9. CLAIMING RACES
Mr Reid suggested it may be an idea to consider holding claiming races.
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10. NATIONAL RACING BUREAU
Mr Goosen said he had asked that the National Racing Bureau should have a national programme. Mr Wainstein said that a national programming committee had been formed some two months ago and their performance would be monitored.
11 UNPLACED HORSES
Mr Goosen asked that consideration be given to how eliminations are handled in the case of unplaced horses. He explained that the first 5 horses take preference and thereafter all horses are regarded as equal. He suggested that a horse that finishes in 6th position should take preference over a horse that runs last (say 19 lengths behind.)
12. MARKETING OF THE RACING ASSOCIATION
Mr Goosen asked what we are doing about Marketing of the RA to attract additional members. Mr Wainstein said over the past three months 45 new owners had joined the Association.
THE MEETING TERMINATED AT 20H15
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