Gauteng-based racing operator 4Racing arrived at Kenilworth Racecourse on Wednesday evening for an engagement session with local stakeholders armed with an olive branch in one hand and a sword in the other.
Speaking after their first 200 days in office, 4Racing CEO Fundi Sithebe, sitting alongside Charles Savage, Colin Gordon and TV Chief Stephen Watson, sketched a background picture of a business clearly decimated and on its knees for some time, operating in an industry on the decline – although she said, bravely in the environment – that they were looking ahead to the goal of building ‘the world’s most loved racing experience’.
“We are not speaking about problems brought about by covid, but going back five or six years. We have a big job on our hands. We are a new team arresting the decline of 5 to 6 years. We are not Phumelela, even though there may well be people still in the system. There are naturally a lot more expenses in the first year. There are no magical profits – we have to look at operations and the quality of our betting products.”
She went on to add that the tote still has a loyal customer base but that it is going to take a lot of work to ensure the tote product is protected.
“And we are not here to compete with the bookmakers. We run centres of excellence and we believe in the powers of partnership,” she said as she went through a static sort of powerpoint presentation.
4Racing CEO Fundi Sithebe – aiming for the stars
While charm, diplomacy and text-book plans in the current times won’t pay the bills and turn the ship around in the short-term, there was a fair amount of straightshooting – bordering on the ‘dismissive’ as one participant suggested – by 4Racing Director Charles Savage, whose message was broadly that ‘we are here if you want us – if we are not wanted, we have enough of our own problems’.
Savage was responding to a statement from respected former NHA Chairman Ken Truter that he had flown back early from Durban in the hope that there would be specific details of a strategic plan for Cape Racing, rather than general strategies and good intentions.
Savage referred to 4Racing’s ‘team, availability and will’ when telling the meeting that ‘we didn’t come here to sell you a strategy’.
Charles Savage (photo: supplied)
“You have a great product and you have the assets. Make it work for yourselves. And stop listening to rumours and lies on Whatsapp,” he added in a response that was in some contrast to CEO Sithebe and the quite polished MC Jermaine Craig’s initial approach.
The issue of the vitally important sector of the Grooms – a very real social and poitical hot potato for racing – was raised, with admissions that things were not up to standard but action was being taken in regard to benefits and accommodation.
Milnerton trainer Piet Botha said that he believed that Cape racing’s stakeholders really wanted to try and work together to improve the lot of the Grooms and all stakeholders. He made the observation that nobody had been out to visit Milnerton – fair comment!
Multiple Champion Breeder John Koster referred to a ‘loaded’ question – also suggested by NHA CEO Vee Moodley a few days earlier – when he asked Charles Savage whether unity in the form of one racing operator in South Africa was possible.
“No, not now,” said Savage, saying that the two operators were currently on ‘different paths’.
“But, competition is good – so let’s see who comes out on top – winner takes it all. Maybe one day we will see a super operator,” he added.
Longstanding racing fan Michael Jacobs spoke for the punter when he asked when last the customer at the coalface was consulted on anything.
“What about Pick 6 couplings and what we would like to see as your customers?” he asked, as he yearned for the good old days.
Robert Bloomberg – wants his questions answered!
Former Chairman Robert Bloomberg joined on Zoom and initially had to convince MC Craig that he warranted a chance to pose ten questions.
Craig relented after Bloomberg confirmed that he would take ‘two minutes’ and didn’t expect an answer immediately – and would in fact email them.
Bloomberg’s questions were:
- Every organization in racing be it the RA, GC, KR etc have financial statements? Could you please explain why you have no financial statements?
- It is believed that you have been given 3 years by the Trustees of MOD to turn this industry around apparently commencing from the signing of the licensing agreement between the GGB and 4R on or around 1 December 2021? Is this correct and if not, what are the time parameters you have been afforded?
- It is in the public domain that you have a budgeted financial loss for this Finacial Year of between R150m and R200m. Is this correct and if not, what are your financial projections/forecasts for this Financial Year?
- It is alleged that Charles Savage has stated to certain major industry players that 4R are actually losing R20m per month? Could you please clarify what the exact amount is in respect of your present monthly losses?
- What is the time frame you have set in which to reach breakeven?
- What is your business plan?
- What are your intentions in regard to the mortgaging of and/or acquisition of the WC properties?
- Is it correct that the Trust/MOD loaned an initial amount of R560m and if not, what was the exact amount?
- Is it correct that 4Racing spent in the region of R185m on the acquisition of properties and tote licences etc and if not, what is that amount?
- Is it correct that the running costs/expenses relating to channel 240/GR1/dissemination of the racing pictures, is around R100m per annum? If not, what is the exact amount?
In response, Savage appeared marginally irritated and unimpressed, saying that some of the issues had already been covered and then quickly touched on one or two others.
These included the reference to massive losses at 4Racing, asking why somebody would get involved in the first place and then walk away to watch it all crumble. “Our losses are our losses and have nothing to do with you,” he said. The name of South African racing’s major benefactress, was never mentioned.
Savage then probably showed his lack of appreciation of the role of a free and neutral racing press when he unsolicitedly mentioned the Sporting Post three times, before declaring that the ‘Bloomberg ten’ would not get a response by email.
This decision was not ratified by CEO Fundi Sithebe, whose call this should possibly have been to make?
Susan Rowett
Former NHA Chair and top breeder Susan Rowett posed a question about the Kenilworth TV rights ownership and the ramifications thereof. Stephen Watson said that although there had been substantial investment by 4Racing in Cape Racing’s old broadcast equipment and infrastructure, ‘every partnership could be ended’.
“Your old bus in still in the parking area,” he added.
The Thoroughbred Racing Trust Chairman Mark Currie joined on Zoom and sketched the background of the entity and its role. He said that when efforts had been made to get locals involved, nobody seemed to be particularly interested.
“Probity is the first issue,” added the former KR Co-Chairman and owner.
Cape Racing Director Wehann Smith answered a question about the Cape Racing Board selection process. And therein probably lies the rub for a possible ‘breakaway’ or courting of a new suitor. How practical and independent will the process really be?
If Cape Racing as a community was drifting and lost at sea, it still sadly can’t have a better idea of where land is as impending loadshedding brought the meeting to an end shortly after 19h30.
And perhaps it is best to take a suggestion from leading owner Ashwin Reynolds’ that Cape stakeholders get together ‘as soon as possible’ to charter a plan forward.
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