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Last Sunday's Oamaru Cup day brought the 2008/09 Gallop South Racing Season to an end. All told, we seriously can not complain about the year. I appreciate that we are experiencing some difficult times but I am confident that we have the right platform in our area to survive the rough ride.

Individual Club Success - Three on-course records

Whilst nationally clubs have struggled to develop on-course growth - Gallop South has returned three record-breaking performances starting with Melbourne Cup Day in November ($314,000), then the Christmas meetings in Invercargill ($267,000) and followed up at the start of autumn on Easter Saturday at Riverton($287,000). No other consortium of clubs could come close to matching three modern day turnover records that we have achieved this season.

The above were far from the only successes. We saw huge growth in the Christmas meeting at Cromwell ($211,913) and Premier Day in Dunedin ($190,000). The spate of holiday meetings; Tapanui ($103,000), Waikouaiti ($172,000), Kurow ($170,000) and Omakau ($159,000) also advertise why provincial area clubs are so vital to our regions success regardless of what NZTR and NZRB think.

Huge rise in average starters per race

We hosted total of 40 meetings in the 2008/09 - ran 384 races - and attracted 4018 runners, averaging a solid 10.46 starters per race. In 2007/08 we hosted 38 meetings - ran 346 races - and attracted 3401 runners averaging 9.82 starters per race. The improvement in field size is an is an indication of the health of our industry locally. It is one of the reasons we can be confident of battleing through the tough times.

Record Stakes - $4,000,000 eclipsed

One achievement I personally am really proud about is the fact we eclipsed the $4 million in stakes paid out to owners at $4,090,000. Last year we predicted that this may be achieved when we distributed $3.8 million. It probably serves to remind everyone that in 03/04 we distributed $2,020,000 - so we have provided more than double what we did just five years ago. We broke the $3,000,000 barrier in 06/07.

On-Course Turnover / Off-Course / Fixed Odds Up

On-course betting turnover for the year wes: $3.36m, off-course: $33.03m and fixed odds: $3.041m. This has also increased markedly on 07/08 where our figures were on-course: $3.07m, off-course: $30.73 and fixed odds: $2.73m. Nationally turnover is down around 7.5%.

So that's the good news as far as performance goes.....so it's far from all doom and gloom.

NZTR & Gallop South Funding Model

NZTR have delivered a similar funding model to last year in that there are four categories of raceday - industry, feature tier 2, feature tier 1, and premier. As you will know from my previous correspondence, our region has too many industry days and they are particulary poorly funded. All the days are bulk funded off agreed turnover budgets with the exception of on-course turnover which is paid on performance at 16%.

NZTR have re-acted to my letter regarding industry day funding with the decision to reduce club stakes obligations and therefore consequently increase the bottom line margin for clubs. It was not exactly what we wanted to hear but in short they are forced into this position as they are not being allowed to run a "deficit budget" by the NZRB. Where I proposed the additional funding for industry days came from the over funded Premier meetings, NZTR are now being forced to reduce the funding on these high stakes racedays as well in order to achieve a break even budget. It was their only option - and although no-one wants to see stakes reduced - if we don't - we will go bust. It's as simple as that.

The new minimum stakes (10 races) for each category of day for 09/10 are; Industry Days: $61,000, Feature tier 2: $75,000, Feature tier 1: $95,000 and premier days: $280,000. These are significantly down on the season passed - so don't expect a $4million stakes pay out this year. I expect a result of $3.4m will be what we can expect. Sadly, it's a sign of the times.

NZTR have made a few other changes to boot. They have taken on the responsibility of paying the JCA directly - usually around $700 but reputedly up to $1,300 per meeting for the upcoming season. They have also taken the unclaimed dividends and fractions away from the clubs and added them to the whole "distribution" pie. This sees our region disadvantaged quite significantly - and it is something I am battling NZTR regarding at present. I am not hopeful.

Secretarial Fees Reduced

Meanwhile - I can report that Gallop South is budgeting to make a lean profit of around $40,000 next year. The principal reason for this is the fact that we believe through this awkward financial period it is imperative to get as much money back to the clubs as possible. With this in mind we have reduced our Secretarial Fees to clubs from $4,000 for a one day club to $2,000 and from $3,000 to $1,000 for a multiple fixture club.

Staff Changes

As you will also be aware we have gone through a staff restructure process. I am confident that this is a very positive move. We grew very quickly as an organisation and took people on in ad hoc roles with no real structure to the positions and a lot of crossing over in tasks - which led to conflict. NZTR have taken on new responsibilities as well which has altered the structure of our work - and our business has become more event focused rather than purely racing as it was in the past.

The new structure will see Otago and Southland regions have mirrored staff positions - both with a regional manager and a marketing manager. There will be a finance manager who will be assisted by a part-time resource. Additionally we will have a part-time business development manager for Wingatui paid for the Otago RC. The racing managers role and membership officers role have been dis-established.

Some difficult decisions have had to be made and some still lie in front of us. Both Malcolm Little and Christine Barringer applied internally for the Otago Regional Managers position and it was decided after plenty of debate to award the position to Malcolm. This has meant that Christine has left Gallop South after five years of service.

Furthermore Casey McRae has resigned for health reasons from her role as Otago Marketing Manager and I have heard today that Elisabeth Williamson, who has assisted enormously with the development of Cromwell has also withdrawn her services on health grounds on a temporary basis.

We have advertised and we have had strong applicants for all new positions and interviews will take place this week. I will keep you informed. There will be four new names to know.

Oamaru

If there is a really good example of the benefits of a cluster then the resources dedicated to Oamaru highlight it. Gallop South this year has stepped into help Oamaru, paying the $3,000 monthly commitments to the joint grounds body, as well as the additional race day rentals for the extra meetings (beyond the "free five"). The Clubs debt has been significantly reduced to boot and there is a real confidence that Oamaru will be up and running in a positive matter in the next few years. Without Gallop South and the support of the clubs - it would have been all over for Oamaru and our region would have lost a very valuable asset.

Beaumont on Boxing Day

Beaumont RC will not be staging a license this year, opting instead to host a race/s (to be determined) on the Otago RC Boxing Day meeting. This has come about due to the declining local support for their meeting and the dwindling numbers on their committee. Forbes Knight and his team have done a great job with all aspects of their fixture over the years since the closure of the Beaumont track and their meetings always attracted a different crowd and offered a big point of difference on raceday. This arrangement may be a temporary one whilst the clubs situation and support is assessed. Having no fixed race day has not helped their cause.

Track Updates

To keep you in the regional loop three tracks have undergone major reconstruction over the last few season and all are due to open for business again in the next few months.

Winton re-opens with its new look race track on Friday, September 18.
Wyndham are due to return after two years to their own track on Friday, October 23.
Wingatui is hoping for a Friday, October 16 return to action.

All the clubs are commended for the work they have done.

Important Dates for your Diary

South Island Racing Awards - Wingatui - Saturday, August 29th
For more information contact Malcolm Little on 03 489 6233

Melbourne Cup Tour of Southland - Sunday, October 11th
For more informtion contact Doug Stuart on 03 234 8614

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