‘Analysis, engagement and planning’ – NZ Establishment Board meets for first time

Dean McKenzie has started work as independent chair of New Zealand’s Establishment Board, having met with his fellow members for the first time this week.

The Establishment Board, tasked with driving structural reform of New Zealand racing, has begun work following its inaugural meeting this week, the first major step in reshaping thoroughbred and harness racing in the country.

Formed by TAB NZ, New Zealand Thoroughbred Racing (NZTR) and Harness Racing New Zealand (HRNZ), the board is charged with assessing future governance and operating structures aimed at addressing the industry’s structural deficit and securing its long-term sustainability.

Among the recommendations under consideration is the merger of the two administrative bodies, NZTR and HRNZ, which those advocating for the move say will create significant cost savings.

The board will in time present its preferred options to TAB NZ, NZTR and HRNZ for consideration, with those organisations needing to sign off on any recommendations for them to proceed.

Establishment Board independent chair Dean McKenzie said the organisation was committed to finding solutions for the entire industry.

“Our members bring a wide range of experience and perspectives, and there is a shared commitment to finding solutions that strengthen the long-term sustainability of New Zealand racing,” McKenzie said.

“The board has an important mandate under its terms of reference. Our focus now is on the analysis, engagement and planning needed to ensure decisions are well-informed and evidence-based, and on moving through that work at pace.

“We are committed to maintaining open dialogue with stakeholders throughout this process, and we will report on progress as key milestones are reached.”

The creation of the Establishment Board came about after an extensive report commissioned by the TAB NZ Advisory Committee was released and another jointly commissioned report, Project Stamina, was made public during the winter period.

NZTR was also engaged in robust negotiations with TAB NZ to secure funding for prize money for the 2026/27 racing season, with agreement reached on a $118 million package.

Dire financial warnings about the fiscal vulnerability of thoroughbred and harness racing in New Zealand have emerged as the reality of wagering company Entain’s initial five-year financial commitment as part of its deal to run the TAB NZ expires in 2028.

Well-known New Zealand racing journalist Michael Guerin recently told the Straight Talk podcast that the industry must confront the challenges.

“When Entain came on board three years ago, it was like everybody just discovered alcohol, sex, candy, the whole thing in one day,” Guerin said.

“Oh, my God. It’s never been so good and I said to people, ‘hey, calm down. This is not what you think it is. This is a sugar rush, and it’s bloody good of Entain to come on board’.

“All this money being splashed around won’t last. And of course, it hasn’t. But now, when everybody thinks it’s doom and gloom, it’s not as bad as they think it is.

“The implementation of the special property vehicle, the change to the administration, and getting a good leader, getting a really good chief executive is crucial to this.

“Those things can solve a lot of these problems in a heartbeat. These aren’t billion-dollar problems, and this is a billion-billion-dollar industry. So the equity is there to fix these things, but you need those things put in place.”

The proposal for a special property vehicle, seen by some industry figures as a controversial plan, involves the establishment of the single strategic body to manage racing’s land and infrastructure which proponents say will unlock at least $700 million in capital value.

Closure of up to seven New Zealand thoroughbred racecourses has also been recommended as part of the Project Stamina report, with Trentham and Rotorua the highest-profile casualties of the plan.

Project Stamina found Trentham did not meet the threshold for a provincial venue in the future network as it would fall below the minimum eight-day threshold under modelled criteria.

However, any closure would be phased to co-ordinate with the return to racing at Awapuni, which has been plagued by problems with its turf surface and is expected to be sidelined until late 2027.

The reasoning behind the proposed rationalisation of racecourses, which was also a key plank of the 2018 Messara Report, is that concentrating racing activity at better-equipped venues will improve track quality, field sizes, race-day reliability and wagering returns.

NZTR chair Paul Humphries, who last month replaced Russell Warwick in the role, and fellow director Dean Lawrence are thoroughbred administration representatives on the Establishment Board.

TAB NZ Advisory Committee member Greg Tomlinson, TAB NZ deputy chair Wendie Harvey and TAB NZ chief commercial and industry officer Jason Fleming are also inaugural members of the Establishment Board.

The TAB NZ Advisory Committee, which has the ear of New Zealand racing minister Winston Peters, is chaired by Sir Peter Vela, the prolific breeder and owner of New Zealand Bloodstock.