🔒 🔒 ‘The TAB will get sign-off from the codes’ – New Zealand thoroughbred and harness racing administrations likely to merge

Changes are imminent on the way New Zealand racing is to be administered, with the country’s two equine codes and TAB NZ set to agree on a range of controversial measures to rationalise the sport, according to respected New Zealand racing journalist Mick Guerin/  

It is expected that New Zealand Thoroughbred Racing and Harness Racing New Zealand will agree to a unified governance model as well as support the establishment of a property trust to manage the industry’s significant land and infrastructure assets. 

Speaking to the Straight Talk podcast to be published on Thursday, Guerin expects confirmation of an agreement between the codes and TAB NZ will be announced within a fortnight.

“I think the TAB will get sign-off from the codes. I think they’ll agree on their budgets (for prize money funding),” Guerin said.

“I think part of the agreement will be that they will agree to merge the two administrations over the next year to 18 months, so Harness Racing and New Zealand Thoroughbred Racing will become one entity to a degree, much like Racing Queensland or Western Australia to a degree. 

“And I think they’ll agree to the property vehicle. Then they’ll need to put a really powerful board in place to implement that … and then the pathway forward will be at least clearer.

“If it doesn’t happen, then we’re just going to go around in this silly dance for potentially years to come.” 

In June, a report released by the TAB New Zealand Racing Advisory Committee, chaired by businessman Sir Peter Vela, called for major reform in order to confront the structural and financial deficiencies faced by the industry.  

Sir Peter said at the time that the industry was “at the most critical turning point it had faced” with the Entain-backed funding model running out in 2028.

“The industry has the assets, the people and the standing to build a strong, sustainable future. What it has lacked is a structure equal to those strengths – the one it has is working against it,” Sir Peter said.

Subsequently, the HRNZ and NZTR-commissioned Project Stamina report was also released, with recommendations that at least five thoroughbred racecourses be closed including Trentham. 

“If it doesn’t happen, then we’re just going to go around in this silly dance for potentially years to come.” – Michael Guerin

But other initiatives which require legislative change, such as proposed tax incentives for breeders, would have to wait until after the November 7 election, Guerin said.

“Some of the other positions from the advisory committee will have to wait until after the election,” the host of the Guerin Report said.

“Then there’s another question, does Winston Peters remain as racing minister? You can make a case that he’s the most powerful person in New Zealand racing, but of course, he’s our foreign minister as well. 

“He’s got lots of other things on his plate, so therefore he doesn’t deal with the day-to-day handling of New Zealand racing.”

Guerin argues that the industry desperately needs strong and decisive leadership to implement the changes.

He identified Cameron George as an ideal candidate for the role but he was unsure whether the New Zealand Warriors chief executive, a former NZTR chair, would be willing to switch codes.

“(The position) would be New Zealand racing’s version of being racing’s Prime Minister or the President. You will have to think about this all day, and to do that you have to love it and you have to care about it,” Guerin said. 

“Then you’re happy to put your ego aside and go and say, ‘excuse me, Mr (Greg) Tomlinson or Mr (Brendan) Lindsay or Mr (Chris) Waller, what would you do in this situation?’

“It’s easy to do that when you genuinely care about it, but if you’re doing it for the money and trying to keep your job, you’re not going to do that. 

“That’s the person they’re going to need to find, and that person’s going to need to say, this is the next five years of my life and this is all I care about, much like being an NRL coach or one of those things. 

“You have to say, you can’t do those jobs if you don’t love them, and that’s going to be really, really interesting.”

One of the biggest challenges facing the executive and board of a new dual-code administration will be dealing with racing’s infrastructure.

Guerin said even if Entain, which is three years into a 25-year deal to run TAB NZ, increased turnover by $100 million, the returns won’t be enough to cover the desperately needed investment in infrastructure at racecourses.

“That sounds like an awful lot of money. But it’s not once you have Alexandra Park, which is a harness track, owing $80 million, when you have the Waikato greenfields, which could cost $100 million more, and you have Hastings building a new track, which could be budgeted at $40 million, but could cost $50 or $60 million,” he said.

“So, infrastructure is a big, big deal because the numbers are so huge. No matter how much more you drive turnover, they’re not going to cover it. Of course, in two years’ time, the extra turnover money gets split down the middle (between the industry and Entain). 

“They’ve given us a massive five-year head start on things. But infrastructure is the key and that’s why this idea … of setting up a special property vehicle to pool assets (is so important).”

Despite the turmoil the industry finds itself in, Guerin remains optimistic about the future of New Zealand racing.

“I’m looking forward to seeing what happens. I think there’s some really positive news on the way. Things aren’t as bad as people think they are,” he said

For the full interview, subscribe to Straight Talk. The new episode will be live on Thursday.