The Racing Association have responded to the editorial “Time For Change – Owner” , written by Mr Steve Reid.
Read ‘Time For Change – Owner’ here.
It is not the Board’s wish to have debates in the press and the Board would encourage individuals who have questions and queries to follow the right channels as the sport should not be tarnished by mud-slinging in the press.
It is the collective and unanimous view of the Board of the Racing Association that transparency is imperative within all aspects of the Racing Association’s structures.
All Racing Association Directors are appointed through a democratic electoral process, both Regional and National and all Racing Association Members have the right to be nominated for such elections in accordance with the Articles of Association, should they so wish to participate.
The Racing Association adopts an “Open Door Policy” and a Racing Association Director is on Duty and present at all Race Meetings conducted within its various jurisdictions. As these Directors were duly elected by the Constituents in each Region, they are well known to the Members and are available at all times to deal with Members’ issues and/or queries.
Further to the aforementioned, the Racing Association conducts an AGM in each of its Regional jurisdictions as well as a National RA AGM, held at Turffontein in the first week of December, annually. All Members are afforded the opportunity to submit any items in writing which they wish to raise at the AGM. The invitation for Members to raise items for discussion is clearly circulated with the Notice of each individual AGM.
Regrettably our AGMs are poorly attended.
With the advent of the formation of Phumelela Gaming and Leisure Limited, it was agreed to form an independent Owners’ Body to deal with owners’ interests in Phumelela run racing jurisdictions and this resulted in the formation of the Racing Association in 1997.
A stakes agreement was entered into which has been modified from time to time and the Racing Association is the duly appointed custodian of stakes and owners’ interests within Phumelela managed and/or owned racing jurisdictions. All NHA registered owners have the right to join the Racing Association for a nominal fee which provides them with many benefits, which includes but is not restricted to, RA on course facilities, bonus stakes, RA functions, guest access, preferential booking on major race days and voting for the RA Directors and/or Resolutions.
The Racing Association prides itself on having furthered owners’ interests, not just in South Africa, but also internationally as its fundamental policy is to encourage the growth of South African racehorse ownership.
The stakes agreement was first negotiated with PGL in 1999 and has since then been amended from time to time.
Due to the changing face of South African horse racing and the immense pressure that betting on the product, as faced from the onslaught of numerous other gambling opportunities, the Racing Association has renegotiated certain aspects of the stakes agreement for the direct benefit of its Members.
By way of example, it is an irrefutable fact that all three racing operators, being PGL, Gold Circle and Kenilworth Racing, lose money on the staging of South African racing.
This means in simplistic terms that the total revenue derived by the operators from the betting on these races runs at a bottom line loss net of staging costs and stakes.
Through the advent of innovative diversification into sport’s betting and other income opportunities, some of the operators have managed to create a positive bottom line. In this regard the Racing Association negotiated to take over the cost of transporting horses to race meetings in lieu of a larger percentage of the revenue provided from sport’s betting by PGL.
This was a Board decision in the best interests of RA Members with the benefits being not only management and control of the costs relating to horse transport, but simultaneously affording the Stakes Pot additional growth opportunity through a larger slice of the fastest growing income stream within our betting jurisdictions. This fact was made known to members and was recorded in the minutes of the AGM held on 4 December 2013, a copy of which was posted on the RA website as part of the 2014 annual report.
The latest scheduled reflecting comparative stakes and racemeetings is included hereunder:
| KZN | WC | Highveld | EC | NC | ||||||
| Stakes | Meetings | Stakes | Meetings | Stakes | Meetings | Stakes | Meetings | Stakes | Meetings | |
| 2007-2008 | R 79 657 010 | 120 | R 56 261 160 | 94 | R 102 179 075 | 125 | R 29 558 875 | 70 | R 11 078 500 | 37 |
| 2008-2009 | R 80 818 000 | 116 | R 58 654 000 | 92 | R 113 486 225 | 140 | R 32 062 000 | 68 | R 13 042 000 | 36 |
| 2009-2010 | R 81 390 250 | 107 | R 58 488 430 | 85 | R 117 065 500 | 148 | R 33 876 500 | 68 | R 13 166 000 | 36 |
| 2010-2011 | R 73 337 465 | 109 | R 56 855 179 | 87 | R 116 096 000 | 149 | R 33 076 500 | 69 | R 13 180 000 | 36 |
| 2011-2012 | R 73 417 785 | 106 | R 54 202 315 | 86 | R 118 893 625 | 148 | R 32 553 000 | 68 | R 14 325 000 | 36 |
| 2012-2013 | R 84 912 075 | 99 | R 54 343 070 | 81 | R 126 626 000 | 146 | R 34 478 000 | 66 | R 14 143 000 | 34 |
| 2013-2014 | R 95 254 750 | 100 | R 61 436 675 | 78 | R 133 769 000 | 144 | R 37 644 000 | 67 | R 14 886 450 | 34 |
| 2014-2015 Budget | R100 171 000 | 115 | R 68 852 959 | 84 | R 143 874 357 | 147 | R 40 286 998 | 71 | R 16 209 981 | 35 |
Nomination and Acceptance Fees are collected by the National Racing Bureau and are used to fund the activities and the cost structure of the Racing Association within its three racing jurisdictions.
It must be emphasised that the Racing Association is an organisation which is run solely for the benefit of its Members and for no financial gain of any individual and or structure save for its Membership.
It is by definition, a NPC and is in essence “owned” by Racing Association Members.
From time to time the Industry requires representation to Government and various governmental structures and as the representative body which looks after owners’ interests within all PGL jurisdictions, the RA fulfils this function in the best interests of all South African Owners.
With respect to the Racing Trust, the Trust is a totally independent body which was established in 1998 with its principal object shall be to promote the common interests of the Members in protecting, promoting and developing the non-commercial interests of the Sport in South Africa, with a view to the long term viability of the Sport.
The Racing Association nominates five Trustees to the Trust with the balance being two Trustees nominated by SASCOC. The Racing Trust receives dividends from its shareholding in PGL and returns all of its income to the betterment of horse racing in South Africa.
To list but a few of its contributions, it funds all of the Grooms’ race stakes, it makes substantial contributions to the Equine Research Council (for the prevention and control of Equine Disease as well as the research with respect to establishing international export protocols), financing the running of the Gauteng Jockeys’ Academy etc. We strongly suggest that Mr Reid addresses his allegations and/or questions to the Racing Trustees directly as we have no doubt that they will transparently answer same.
The allegation regarding RA Directors having signed confidentiality agreements with PGL is entirely untrue and no such agreements exist.
The Racing Association is in fact the custodian and facilitator of an Industry Liaison Committee Forum which functions within each of its racing jurisdictions whereby the operator and all of its executives, trainers and jockey representatives and the NHA collectively meet quarterly with the sole purpose of the betterment of the holistic horse racing aspect. PGL has no influence on RA decisions and/or the RA Boardroom whatsoever.
Regarding the closure of the sand track at the Vaal Race Course, it is widely known and publicised that the unhappiness of jockeys who had refused to ride at this track on various occasions and general stake holder unhappiness led to the closure of the sand track at the Vaal.
PGL had advised that they would replace the sand track with a grass track in the shortest possible time frame. The Racing Association does not have direct jurisdiction over the race track itself but supports the decision of PGL in its endeavour to provide a safer and more reliable racing surface at the Vaal.
In conclusion, the Racing Association and its Directors are driven to do the very best for its Members within the confines of extremely difficult economic challenges and a gaming environment which is immensely challenging and changing daily. The Directors welcome both Members and other stake holders to engage with them at all times and emphasises its “open door” policy.
While the Board respects the fact that stake holders are entitled to an opinion, that does not give individuals the right to make untrue allegations. In many instances no effort is made by the publication to check the facts before publishing inaccurate information that not only undermines the integrity of racing but at times, are slanderous.
- This release issued for an on behalf of the Board of the Racing Association
