Owners once again propping up an unsustainable mod

Remember Richie, that Trainers and jockeys also win the July... Not just the owner

The problem is far greater than just trainers asking for the extra 2.5% deduction
from the winning stake
The racing is dying and probably faster in the WC than anywhere else
A huge number of small owners have vanished and few new are arriving
Stakes are too small and costs have risen way faster than stakes for the past 10 years
Why?
In the years gone by the clubs owned the business and were non profit
and a greater percentage was returned in stakes
Racing was the only legal gambling in the RSA
Has anybody added up the amount paid in dividends to shareholders of Phum
over the past 10 years
The amount must be staggering
And the bulk to a few people

Bob Brogan wrote: Remember Richie, that Trainers and jockeys also win the July... Not just the owner

If they winning / placing in races especially bigger races then they will fall into the bonus structure I spoke about.

It’s like any business, you profit split off the bottom line not off the top.

its prettty simple. costs have escalated and to soften the blow trainers are keeping fee increases to the minimum and are asking for 10 %. this is fair because this way if horses dont earn owners pay less and when they earn both parties earn. that said the real problem is cost to earning ratio is stuffed. a win keeps a horse in training for half the time it did just a few years ago. historically this is the sport of kings and us small fry are rapidly being shaken out. its just the name of the game . nothing can be done.

sorry to continue unless we manage the tote bookie situation properly and stop milking the stakes pot

elmer wrote: The problem is far greater than just trainers asking for the extra 2.5% deduction
from the winning stake
The racing is dying and probably faster in the WC than anywhere else
A huge number of small owners have vanished and few new are arriving
Stakes are too small and costs have risen way faster than stakes for the past 10 years
Why?
In the years gone by the clubs owned the business and were non profit
and a greater percentage was returned in stakes
Racing was the only legal gambling in the RSA
Has anybody added up the amount paid in dividends to shareholders of Phum
over the past 10 years
The amount must be staggering
And the bulk to a few people

Agreed.
Operators were handed everything on a plate, have contributed nothing and taken out plenty.
They are the cause of racing's downfall as predicted by so many on this site.

Increase stakes then trainers would earn more through winning deductions.

I mention that owners are propping up an unsustainable model and the majority try justify the increase of trainer takeout.

The bottom line is that stakes have not kept up with training costs. That is undeniable and to further tax the long suffering owner will result in more exits and what do you do then Louisg, up your take out more from the remaining owners to balance the books?

Imagine the reaction of the EFF when they are told jockeys 10% wit baas trainers 10% grooms 1%. Get the vaseline ready, theres a good ass rodgering coming.

Racing is reaping what it sowed when it sold its soul.

Racing is simply a microcosm of life in South Africa :

Out of a population of (effectively) 60 million 103,000 individuals pay 90% of all income tax collected.
One must assume that every racehorse owner is a member of this 103,000 group.

With monotonous regularity every service provider returns each year asking for more money. Some of the increases are by stealth (eg levies added to the fuel price) whilst others are brazen (income tax, dividend tax etc).

The very wealthy are largely impervious to these increases as their incomes tend to sit way above the levels which are hyper sensitive to tax increases. Furthermore they usually grant themselves endless bonuses, share option schemes etc., which, even after deductions of 45% for marginal income tax rates, still allow them a couple of million to spend on self indulgent items (eg racehorses) each year.

The real victims of the status quo are the middle class taxpayers.

This is reflected quite clearly in the demise of colour holders over the last few years. That 'sporting owner' - who may have held a few interests - has gone.

Punters - who largely distrust the 'game' - have migrated to sport and numbers.

The service providers left behind are now also divided into two distinct groups. The 'big' yards with their industrial strength owners and the rest.

Funding this rickety structure has become increasingly difficult so inevitably service providers look to extract more from those who can still pay whilst they are still prepared to pay.

The market is responding in a fairly obvious fashion. Own less! So as much as German vehicle manufacturers continue to swamp the market with cars starting at R400k and finishing in the stratosphere so also are fewer units being moved at the upper end.

Nature will fill the vacuum. Sticking with the car analogy you will suddenly awake to find that Chinese manufacturers have moved from 'toehold' to 'dominant force'.

You may also find that racing has all but disappeared in South Africa as that abused group of 103,000 has lost the will to buy as well as the ability to do so.

It won't be the end of the world.

IMO as Garrick says its not the end of the world ... maybe owners with a stake in racing are prepared to prop up the model as they stand to lose a lot more if racing as most non owners and social media experts proclaim is not sustainable.

No Len, you can't expect a few owners to prop up the entire sport. The SPORT has to engage itself and fix the issues, adopt the change needed in order to become sustainable. Some changes will be more uncomfortable than others but need to be done in order to survive and move into the future. Now is the time. Or wait for the heat in the kitchen to become even hotter... :whistle:

@ elmer I am in absolute full agreement on the dividend story, please could one of the CA's on the site do that exercise and add up the dividends paid out since inception of Phumelela for one share, I think initial purchase price especially for those in the know was R2 a share??

That will tell a story!!

Not expecting only a few owners to prop up the sport as this increase is across the board ..so it will affect all maybe some to a lesser degree.. I am waiting for this change just like everyone else with bated breath...the heat in the kitchen for racing is the same heat all around us in our daily lives.