Page 19 - December 2006 The Game

Canada’s Thoroughbred Racing Newspaper
HBPA Ontario Update
HBPAAdministrativeOffices:135Queen’sPlateDrive,Suite370,Toronto,ON,M9W6V1 phone:416-747-5252
Report from the Executive Director
The Game, December 2006 19
As our planning and thought process now shifts to 2007 and beyond, the challenges in our industry seem to throw a curve at us constantly. How do we, as a horseman organization, participate within our own industry to ensure revenue growth once again? How do we contribute in a way that helps the economics of our industry make sense to all stakeholders. The stakeholders’ of course include, at a minimum, the racetrack operators, the breeders’ and of course, the thoroughbred race horse owners?
When we look at the recent published financial performances of Magna Entertainment Corp., the racetrack owner and operator who lost $50.7 million in the third quarter of 2006 on revenue of $113.7 million, we wonder where this industry is going. To think that when a racetrack operator who owns such premier racetracks such as Santa Anita Park in Southern California, and Gulfstream Park in South Florida, can
continue to loose significant dollars is alarming.
From the horse owner’s financial point of view, the numbers are nonsensical. In North America, thoroughbred owner’s annually invest more than $2 billion in racing, yet race for purses of just over $1 billion.
I do not even want to
even guess what the financial economics of breeding consists of at any level. Such numbers might just depress us so much that we may not even want to find some type of solution.
For these reasons, it is now more important than ever that the HBPA and other horsemen’s groups who represent thoroughbred owners’ (TOC and THA) that we become more engaged in the key decisions facing the thoroughbred racing industry. Outside of the betting patrons
(the punters), the horse owners are the largest investors in the industry. Yet we are never on the inside when key decisions are made about our future revenue streams.
There is no question that one fix is not the be all and end all. As a matter of fact, our economic model is so flawed that not only do we need a fix, we need several fixes that cannot be fixed overnight.
The one fix that comes to mind is the focus on tradition. We seem to spend a lot of our energy trying to get new customers into the empty stands. Perhaps we should focus our energies on technological innovation considering this is what our competitors are focused on currently. Just look at all the young people of today engaged on internet wagering sites. Keep in mind that technological innovation is not a new buzz theme. I recently read in the Wall Street Journal that if you had
invested $10,000 in IBM 30 years ago, your $10,000 would now be worth over $220,000. If you had invested $10,000 30 years ago in Wal-Mart, guess what, your investment today would be worth over $20 million. Ironically do you know why? Technological innovation, that’s why. Wal-Mart saw the wisdom in investing into a computerized inventory system in the 70’s which brought the retail distributor to the level which it stands today.
To think of the parallel in racing one only needs to look at simulcasting. Youbet.com, the online horse racing and account wagering company, just posted their revenue numbers for the third quarter of 2006. Guess what, revenue increased by 42.3% to $37 million, compared to $26.1 in the third quarter of 2005. Cannibalization or growth is the question that remains? Probably a combination of both, but we need to explore.
Executive Director Nick Coukos
Woodbine HBPA Backstretch Office closes Dec. 23
The HBPA Backstretch office at Woodbine will be open 7 days a week from 7am to 3pm until Friday, December 15. The office will then remain open one more week Monday to Friday, December 18 to 22 before closing for the season at 3pm December 22, 2006.
The Woodbine HBPA backstretch office will
re-open Monday, January 29, 2007.
The Backstretch Office at Fort Erie is already
closed for the season and will re-open on Monday, March 5, 2007.
The HBPA administration office in Toronto is open year round, Monday to Friday and can be reached by calling 416-747-5252.
Woodbine’s Shedrow of the month for November is Trainer Danny Vella. Congratulations to Danny and his crew!
2006 ROE’s Now Due
The deadline for submission for your ROE (Record of Employment) form is February 1 2007.
Under new pension regulations, individuals who do not sub- mit or have missed two or more yearly ROE submissions may be removed from the plan.
ROE’s can be dropped off at either track office or mailed to: HBPA Administration Office , 135 Queen’s Plate Drive , Suite 370, Toronto, Ontario, M9W 6V1. For information call 416-747-5252
HBPA Woodbine Annual Backstretch Christmas Party: Nov 27, 2006
Cory (left) and Elena Flight, daughter of Larry Attard, with their son Lucas
Santa Claus was a big hit as he handed out presents to all the good boys & girls
Exercise rider Jasim (second from right)
and his family were awaiting the arrival of Santa. (left to right) Nhoobh (age 12), Mohammed (age 13), Asmaa (age 10), Jasim with his 10 month old daughter Sarah, Ahmed (age 6), and Jasim’s wife Ebtessam.
Trainer Julia Carey and grandson Shamar
Photo Right: Sophia Mariani, granddaughter of horse owner George Kennedy, is enjoying her dinner. A delicious turkey dinner with all the fixings was served up in the backstretch kitchen.
(left to right) Zion Patrong, Jeziah & Jemoia Blair were eagerly awaiting the arrival of Santa Claus.
Photo Left: Errol Farquharson and grandson Jalen