From RA Site

Night racing at Turffontein on hold

RA PRESS RELEASE:

THE installation of floodlights for night racing at Turffontein racecourse has been put on hold due to spiralling costs.

The project was to have cost in the region of R35-million before trainer Ormond Ferraris’s objection to putting up lights in March 2007, which was subsequently dismissed by the Gauteng provincial government. Today the estimated cost has risen to more than R50-million.

The Racing Association has always supported night racing as an effective marketing tool for the sport and because it would provide an additional race meeting a week. However, the RA has now taken a view that to implement night racing at such an exorbitant cost does not make business sense.

Instead, the RA board has resolved to work with racing operator Phumelela to determine the most effective way of spending the entire R40-million arising from the cancellation of the racing usage agreement at Newmarket on capex projects for the benefit of all role players in the horseracing industry.

Before the RA made this decision, it requested and received a commitment from Phumelela for the staging of a third daytime meeting each week in the Highveld peak season (from October through to April). This will ensure more racing opportunities for the region’s racehorse population, irrespective of whether night racing goes ahead or not. Phumelela intends to launch the three-meetings-per-week programme at the beginning of February 2009.

Other alternatives to night racing that the RA and Phumelela are investigating are an all-weather track and dividing the Vaal turf straight course into two, thus creating an additional turf surface so desperately needed on the Highveld – particularly during the annual spring maintenance period.

The upgrading of public areas at Turffontein racecourse will proceed as planned, with the new parade ring in front of the grandstand and the installation of decking for a new viewing and hospitality area likely to be completed in the near future.

The Vaal racecourse’s facilities will not be neglected. Phumelela has already upgraded the Ascot Room, known as the official off-course tote, as well as the rooftop terrace, which has undergone construction. Furthermore, the RA facility on the second floor and the owners and trainers facility on the first floor have been revamped giving them a fresh look.

Halleluja, at LONG LAST we have some responce from the R.A. regarding the lights.
At least we are no longer LEFT IN THE DARK !

Hope they don't take this long to decide on an all-weather track. At least the 40mil. will be earning good interest...we hope !

This is ABSOLUTELY UNACCEPTABLE!!

R 40m invested for a couple of years compound interest is surely worth R 50m now or is R 40m the limit of expenditure and P keep the interest gratis.

Strange how they always find someone else to blame now poor uncle ormie takes the blame for 15 mill extra and the loss of night racing.

50 mill to refit the old lights from new market at Turfies seems a bit excessive.

Bit that they closed Newmarket and no one said or did anything.

my thoughts exactly Gajima.... must be worth close to 50 mil. now. surely BIDVEST will give them a GOOD INTEREST RATE.

Guys, I seem to remember that said 40m was by far the most expensive quote - so maybe the quote for around 25m is now only 30m?

Anyhow, as far as the 'all-weather' option - I'm sure someone remarked that was even more 'expensive' than the lights?!?

Imvho, I still belive that the lights can go up the straight - prob at a 1/3rd of the cost for the whole track and could be up for Aug 1st 2009 and still very much the thing to do - so 'we' missed the overseas deal this time - get it done and bargain from strength next year!

Obviously, the extra meeting per week is to be applauded and assume it will alternate between turffies and vaal, say on a tuesday?

As for the spliting of the Vaal straight another good idea - I even thought it would also work @Tuffies - although now that the parade is in front there probably won't be enough space as it would need about 10m extra in order to facilitate.

As for the 40m being used for 'capex' projects - I'm not sure what that means? For instance does that incorporate the current work being undertaking - parade ring decking and such - or is it seperate for 'future' expenditure?

I dare say, Clive will let us know as and when these things are decided, and I'm not even gonna touch the issue of 'monies' earned on said Newmarket dispersal etc.

Anyhow, I am over in Oct and I will join the RA for sure as I believe that it is important for owners to at least 'try' and influence in a fair and productive way the course that the industry takes.

My tuppence - now I'm off to bed - my brain hurts - lol!

Respectfully, Jim

CAPEX is defined on the Investopedia website as;


Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. This type of outlay is made by companies to maintain or increase the scope of their operations. These expenditures can include everything from repairing a roof to building a brand new factory.

The amount of capital expenditures a company is likely to have depends on the industry it occupies. Some of the most capital intensive industries include oil, telecom and utilities.

In terms of accounting, an expense is considered to be a capital expenditure when the asset is a newly purchased capital asset or an investment that improves the useful life of an existing capital asset. If an expense is a capital expenditure, it needs to be capitalized; this requires the company to spread the cost of the expenditure over the useful life of the asset. If, however, the expense is one that maintains the asset at its current condition, the cost is deducted fully in the year of the expense.

pardon my ignorance but the fact that t he united states was not interested in taking our night racing anymore have a major impact on night racing going ahead in joburg.i seem to recall that phum had entered into an agreement to supply them our night racing

Thats a good point but this management needs to be called to task on this..it was splashed all over TV by the chairman and on their website and as Cat says still on their website..any normal co the shareholders wld call them in for psychiatric evaluation man!!

We gave them the time to sort things out, we gave them the benefit of the doubt that it wasnt their fault..and what have they done for us??

They put up our fees and handed out bigger badges (apparently I was the only one who refused the bigger better badge and kept my old one).

Ps it was Bruce Gardner who built the Elevation Room not the new guys.

I would be interested to know how many R.A. members have renewed their membership as from 01 Aug. this year - at the NEW higher fees don't forget.

Are current R.A. members in good standing allowed to enquire if the # of members has increased - or decreased ?

This latest debacle with the lights story really puts the icing on the cake.It seems like the .R.A. have been taking lessons from our politicians - & the result is the public / members are left totally in the dark.

I suppose we should all be thankfull now, we know what's going on & no more need for speculation ( rumours were out how many weeks ago that the lights were OFF ? )

I remain an R.A. member (eh but NOT IN GOOD STANDING - FOR OBVIOUS REASONS )
I'm not a mushroom that thrives in the dark.

I would have thought one would be able to find the number of members (those in 'good standing' listed separate from the 'others') on the RA website. Well maybe I am asking for too much.

The whole night racing issue is a debacle brought about by greed and bad business tactics by selling Newmarket for a pittance. However I tend to agree with the current decision of not going ahead with the lights at Turffontein; if the American deal has fallen through, I don't think it makes sense to go ahead. Anyway nobody in their right mind would want to go and attend a night meeting at Turffontein.

Let's see what these geniuses cook up to replace it - and hopefully they now have R50 million to spend on 'capex' projects; somehow this just sound a bit ominous - seems the whole Randjiesfontein issue has now gone quiet again; seemingly in their minds if one ignores an issue long enough, it might go away.