The end - RIH Phumelela - African Betting Clan

Garrick
Elite Member
Posts: 1300
Thanks: 526

Re: The end - RIP Phumelela

5 years 11 months ago - 5 years 11 months ago

More importantly - How might all of this play out?

One of the options which the operator might have to institute is a reduction in stakes. That should prove pretty terminal for the following reasons :

1.) Jockeys & Trainers base their 'takeouts' on stakes earned. Jockeys have already previously arbitrarily increased their % of stakes earned largely because the base remained stagnant.
2.) That extra % that trainers charge their owners when horses earn (bonus for groom, sheep for staff, catchup for arrear child support, arrear green fees, arrear bond & car payments etc.) did not develope by accident. It too was due to the below inflation rate that stakes rose by over the last 20 years.

In both of the above instances it is reasonable to assume that both trainers and jockeys would consequently be wanting an even bigger % of the smaller figure if stakes were to be cut.

This should prompt an absolute stampede out of ownership accompanied by a massive drop in what the (delusional?) remaining owners are prepared to offer for future yearlings.

I don't even want to think what might happen to the over production of foals which cannot find owners.

3.) Breeders need not worry about export protocols. They had best change to other livestock QUICKLY simply to survive whilst dear Adrian (once again) sheepishly (no pun intended) advises that the date for the lifting of export restrictions has been pushed back. Again. If this goes on any longer your will find 'export protocols' listed alongside 'rainbow' under definitions.

It is quite remarkable that this operator has mismanaged this activity to the brink of ruin when it carried no risk and made absolutely no direct contribution to the creation, raising and nurturing of its core material - the horse.

Last edit: 5 years 11 months ago by Garrick.

Please Log in or Create an account to join the conversation.

mister a
Premium Member
Posts: 850
Thanks: 146

Re: The end - RIP Phumelela

5 years 11 months ago

#766469

Makes sense the thought you have put across Garrick, the mismanagement part I saw first hand all the years since 2004 with the rejection of Formgrids, thousands of punters using it across the globe and they destroy something that was working for the industry, so I saw how they were willing to destroy anything and i had many many attempts appealing to anyone and everyone from the RA to Phumelela even to members of the Trust and they all turned their eyes and ears away, some past RA members supported me but their efforts were nullified by the clique who had a copy website built and they put up very soon after the hacking of Formgrids, those who turned a blind eye did not stop to consider that if they destroyed a website that had showcased over 100 million pages of SA horseracing then obviously they were destroying other aspects of the game as well,, they saw the cheese but they never saw the trap, those that supported the clique are just as guilty but obviously now they distance themselves from racing current state

Please Log in or Create an account to join the conversation.

Over the Air
Topic Author
Platinum Member
Posts: 2948
Thanks: 721

Re: The end - RIP Phumelela

5 years 11 months ago - 5 years 11 months ago

#766471

The saying "beware of Greeks bearing gifts" may prove to be very prophetic. Garrick rightly asks the question whom of the inevitable vultures circling the Phumelela carcass will benefit from this disaster. The Supabets deal has many questions that need answering. Five years ago Phumelela had no debt. They paid R400m for 50% stake in a lemon. What due diligence was done, who did it, and whom were responsible for the decision to acquire Supabets? It is this transaction along with the highly irregular funding methods that deserves a lot of attention when the questions are asked.

If I had a mischevious mind I may be asking whether this outcome was anticipated by the people who put the deal together. The rat then jumped ship.

Last edit: 5 years 11 months ago by Over the Air.

Please Log in or Create an account to join the conversation.

Over the Air
Topic Author
Platinum Member
Posts: 2948
Thanks: 721

Re: The end - RIP Phumelela

5 years 11 months ago

#766473

I was looking at the RA 2018 financials and comparing them to previous years.

The RA's asset value has been declining rapidly over the past few years. When you look at past financials the RA had more money in the bank. Supabets acquiring raising it's head again?

Does anyone know why a R70 million loan was made by the RA to its subsidiary Randjesfontein which has the only business of owning property, with no fixed terms of repayment? That is if a loan was really made and not used to hide losses or undisclosed liabilities. I remind you that Randjesfontein is utilised and managed by Phumelela and they collect rentals from the trainers there. For this they pay the princely sum of R25000 per annum, incidentally the identical amount the RA pay for their hovel in little Nigeria.

Follow the dots people.

Please Log in or Create an account to join the conversation.

mister a
Premium Member
Posts: 850
Thanks: 146

Re: The end - RIP Phumelela

5 years 11 months ago

#766474

Send an email requesting the answers, they have to comply, remember the stipulations at conception

"A critical element of the restructuring was a commitment to rationalise the horseracing infrastructure in order to, inter alia, “facilitate transformation, transparency, accountability and create a sustainable business model”.
The RA together with the Trust and Phumelela were structured and formed together and the above was penned and recorded at the time also

The principal objective of the Trust is to “promote the interest of all persons interested in, and affected by, the sport of thoroughbred horseracing in South Africa" so they all have to be forthcoming and answer all questions to fulfill the requirements of their structure,

"transparency and accountability"

They are answerable to anyone with an interest in Horseracing, anyone affected by horseracing, grooms, punters, owners, breeders Jockeys, tots operators, bookmakers, the structure was put in place to SERVE racings participants and not for them to rule over and devour the fruits and self enrichment protected by the sentence I have heard countless times "I dont owe you an explanation, I dont answer to you"

Well you do, you answer to anyone and everyone affected by the sport of horseracing, the structure was put in place to protect the sport and its participants not to create you a high powered job with crazy salaries and perks, living off racing, but you are smart guys and quickly manipulated those around you and set yourselves up nicely at the expense of the other participants of racing sailing on in the privatised 8 Star luxury cruise liner

Please Log in or Create an account to join the conversation.

Over the Air
Topic Author
Platinum Member
Posts: 2948
Thanks: 721

Re: The end - RIP Phumelela

5 years 7 months ago

#773461

Garrick wrote: More importantly - How might all of this play out?

One of the options which the operator might have to institute is a reduction in stakes. That should prove pretty terminal for the following reasons :

1.) Jockeys & Trainers base their 'takeouts' on stakes earned. Jockeys have already previously arbitrarily increased their % of stakes earned largely because the base remained stagnant.
2.) That extra % that trainers charge their owners when horses earn (bonus for groom, sheep for staff, catchup for arrear child support, arrear green fees, arrear bond & car payments etc.) did not develope by accident. It too was due to the below inflation rate that stakes rose by over the last 20 years.

In both of the above instances it is reasonable to assume that both trainers and jockeys would consequently be wanting an even bigger % of the smaller figure if stakes were to be cut.

This should prompt an absolute stampede out of ownership accompanied by a massive drop in what the (delusional?) remaining owners are prepared to offer for future yearlings.

I don't even want to think what might happen to the over production of foals which cannot find owners.

3.) Breeders need not worry about export protocols. They had best change to other livestock QUICKLY simply to survive whilst dear Adrian (once again) sheepishly (no pun intended) advises that the date for the lifting of export restrictions has been pushed back. Again. If this goes on any longer your will find 'export protocols' listed alongside 'rainbow' under definitions.

It is quite remarkable that this operator has mismanaged this activity to the brink of ruin when it carried no risk and made absolutely no direct contribution to the creation, raising and nurturing of its core material - the horse.

Written 3 months ago, how prophetic will this continue to be? Well done Garrick.

As an aside I wonder how Sweeney Todd is doing with those protocols? Weren't we supposed to have been trading loke months ago? Snake oil salesmen still get employed it seems.

Please Log in or Create an account to join the conversation.