NZTR pushes back on industry pressure after advisory committee report leaked

New Zealand Thoroughbred Racing has warned that it could explore its legal options to ensure it receives what it believes are all of its financial entitlements under a TAB NZ funding deed amid heightened tensions between major industry groups.

The dramatic shot across the bow from the racing authority directed at an advisory group has emerged as NZTR management and its board appear to be on a different page to that of prominent industry figures about how to best manage the thoroughbred industry as a key 2028 funding deadline looms.

Sources familiar with the development interpreted the sending of the letter to the TAB New Zealand Racing Advisory Committee as an attempt to get a group of high-profile industry figures to “back off” as NZTR faces mounting external pressure to streamline the administration of the racing industry.

A leaked report produced by the TAB New Zealand Racing Advisory Committee, published in the country’s National Business Review, claimed that the thoroughbred industry was facing a $50 million annual deficit and cash reserves could be exhausted by the 2027/28 racing season.

The advisory committee-commissioned report also recommended that the governance of thoroughbred and harness racing be brought under the one umbrella in a similar manner to how Australian principal racing authorities Racing Queensland, Tasracing and Racing and Wagering Western Australia oversee the thoroughbred, harness and greyhound codes.

It also suggested the consolidation of property assets, with race clubs transferring their assets into a trust in exchange for equity, as well as government-approved initiatives to accelerate depreciation of bloodstock and extended exemptions for bloodstock syndicates.

The Straight has independently verified elements of the report published in the NBR. It does not suggest that TAB NZ is not meeting its funding obligations to NZTR.

The brainchild of Racing Minister Winston Peters, the advisory committee is chaired by Sir Peter Vela, the owner of auction house New Zealand Bloodstock as well as Pencarrow Stud, alongside Cambridge Stud owner Sir Brendan Lindsay and Waikato Stud’s Mark Chittick.

Nearco Stud’s Greg Tomlinson, large harness racing investor, Breckon Farms’ Ken Breckon, and expatriate New Zealander and champion Sydney trainer Chris Waller are also on the advisory committee.

Steve Thompson, a major standardbred owner, also joined the advisory committee in June last year soon after its formation.

Sir Peter declined to comment until after the NZ Racing Minister, who is also the country’s Foreign Minister, returns from overseas and has had time to consider the report.

TAB NZ chief executive Nick Roberts also declined to comment until after the report had been tabled with the minister.

The 2028 milestone in wagering giant Entain’s 25-year deal to run TAB NZ is fast approaching, with the operator’s $NZ1 billion five-year funding guarantee expiring in two years’ time.

That funding has supported prize money increases, new races such as the NZB Kiwi and investment in marketing and infrastructure, but beyond 2028 returns will be more directly tied to wagering performance.

A separate report compiled by the New Zealand Thoroughbred Breeders Association, revealed by The Straight last month, suggested the country’s foal crop was facing a yearly 500-horse shortfall if the industry was to maintain field sizes by the mid-2030s, causing a likely negative knock-on effect to wagering turnover. 

NZTR chair Russell Warwick was reluctant to comment about the existence of the report or about specifics surrounding the differences of opinion regarding the direction of the industry between the two entities when contacted this week. 

However, he did confirm “ongoing discussions” between NZTR and industry stakeholders.

Appointed NZTR chair in June 2024, Westbury Stud general manager Warwick also dismissed suggestions that the New Zealand racing industry was besieged by infighting.

“I think NZTR has got an open mind on everything that comes across our table,” Warwick told The Straight.

“We’re there for one purpose really, and that’s to try and improve and (run the sport for) the betterment of racing within New Zealand. 

“I think if you look at it from an objective perspective, everyone’s got all the right intentions, it’s just about how we achieve those.”

NZTR chief executive Matt Ballesty, in a text message to The Straight, said: “(I am in agreement) with Russell – definitely not fighting. We all want what’s best for NZ racing.

“Change is required but we need to take people along with us.”

In an interview with this masthead, published a fortnight ago, Ballesty acknowledged the mandate he had in overseeing the running of the racing industry.  

“I’m here, with the board’s direction and support, to make significant changes and test the status quo and make the bold decisions that need to be made,” he said.

“But we’ve got to build trust, we’ve got to earn respect (but) it would be good for the industry to now give this team a chance to add some professionalism and quality to the decisions that are made.”

Warwick this week cited a number of initiatives made in recent years which he believes has made a marked difference to the New Zealand thoroughbred industry.

“The only thing that I will say is that if you look back – (and) criticism’s easy to hand out – over the last three years we’ve now got a Champions Day that’s very functional, it’s attracting international competition, which New Zealand’s never really been able to do in recent years, and we’ve got international investment here now with the likes of Yulong, OTI and MyRacehorse,” he said. 

“There are some really wonderful green shoots and some real positives about what’s happening … (and) it’s due to not just the current board and management, but the board and management prior to that as well. 

“It’s a challenging time, but at the end of the day, that’s what you’re there for and you’re trying to work through those challenges.”

From an NZTR point of view, its recently released business plan and statement of intent indicated the TAB NZ minimum guarantee would be $110 million in 2025/26, then rise to $122.32 million in 2026/27.

“A $5.4m deficit is planned for 2025-26 to be funded by existing NZTR cash reserves built up over previous years. NZTR is expected to return to surplus positions in future years,” the NZTR report said.

The rise in minimum guarantee is expected to help NZTR to a surplus of $2.6 million this financial year.

But the concerns of the advisory committee are for the sustainability of New Zealand racing beyond when Entain’s minimum guarantee ends in 2028.

According to NBR, the report said the funding guarantee was holding distributions above natural levels and warned that, once it expired, “distributions to industry would need to decline in FY29”.