Why has HRA not supported a National Owners forum - Harness's Major Issues

[Messenger]

One of our posters sent me an email that contained a report on the above topic

but it is really about THE MAJOR PROBLEMS IN AUSTRALIAN HARNESS RACING

It is written by Ray Chaplin, the man behind pedigree matching site Equine Excellence

At the beginning Ray apologizes for its length and suggests that if you are interested pour yourself a stiff scotch and read on - it is 25 pages long

It covers all the states and is alarming reading. It questions whether our administrators know what they are doing and asks why aren't they listening to the owners and fans.

I have contacted Ray since being sent the email and he is happy to forward it onto anyone who wants to email him at

contact@equineexcellence.biz

At the same time, you might like to ask him for his free reports on Harnessing a Dream which are about how to breed a champion. (my plug not his)

His site is
http://www.equineexcellence.biz/

I am sure anyone who participated in our recent 'How do we make harness racing strong' thread, will find it very interesting reading.

I suggest you ask Ray for his report 'No HRA Support for National Owners Forum'

Let me know what you think people.

[jackthepunter]

The sports stuffed kev, epecially here in vic. Because its run by people who ant qualifyed nor do they have the skills for the positions they hold. They also refuse to listen to the trainers,drivers and owners.And only ever have self interest at heart.

[Messenger]

The rank and file have had victories in the past Jack (read the report) and we cannot just give up. I will not go so far as to say they only have self interest at heart but might question whether they are sufficiently hungry for improvement and seeking the right advice

[Richard prior]

This is a must read people!!! Check your inbox folks, I've just forwarded on to most of my contacts.

[Njcstables]

Recently Hrv hired an external organisation to facilitate an Industry Research Project where invited participants were divided into 4 focus group areas and asked to contribute their thoughts on a range of issues within the industry. The 4 groups were, owners/breeders, trainers, drivers and clubs. No hrv employees were involved in the discussion groups. The results of the 4 focus groups are to be collated and form the basis of an impending industry wide survey which will in turn form the basis of hrv's new 2015 strategic plan. I was invited to be involved in the drivers group. It will be interesting to see the results when it's all said and done.

[Messenger]

Recently Hrv hired an external organisation to facilitate an Industry Research Project where invited participants were divided into 4 focus group areas and asked to contribute their thoughts on a range of issues within the industry. The 4 groups were, owners/breeders, trainers, drivers and clubs. No hrv employees were involved in the discussion groups. The results of the 4 focus groups are to be collated and form the basis of an impending industry wide survey which will in turn form the basis of hrv's new 2015 strategic plan. I was invited to be involved in the drivers group. It will be interesting to see the results when it's all said and done.

That was supposedly the groups that Andrew Kelly was printing off and showing our 'How to make Harness strong ....' thread to Nathan. Not a big betting man but I am thinking you never saw it in those groups Nathan. Not that I am saying that thread was special see below

I have been involved in many such days as you describe above (but not for harness) and seen some whizz bang facilitators but my biggest concern is that most of them were like massive brainstorming exercises which got collated into aims, goals, policies, objectives, mission statements ....... BUT rarely results

I would much prefer well researched well thought out submissions that may have taken participants (including FANS/CUSTOMERS that I see no mention of) a month or months to ponder.
I am glad to see that you believe the above groups work to be only the basis for a survey but I would like to see some blank pages on those surveys not just choose the alternatives the CEO offers me

Be sure to get a hold of Ray Chaplin's summary of the industry Nathan

[jackthepunter]

That was supposedly the groups that Andrew Kelly was printing off and showing our 'How to make Harness strong ....' thread to Nathan. Not a big betting man but I am thinking you never saw it in those groups Nathan. Not that I am saying that thread was special see below

I have been involved in many such days as you describe above (but not for harness) and seen some whizz bang facilitators but my biggest concern is that most of them were like massive brainstorming exercises which got collated into aims, goals, policies, objectives, mission statements ....... BUT rarely results

I would much prefer well researched well thought out submissions that may have taken participants (including FANS/CUSTOMERS that I see no mention of) a month or months to ponder.
I am glad to see that you believe the above groups work to be only the basis for a survey but I would like to see some blank pages on those surveys not just choose the alternatives the CEO offers me

Be sure to get a hold of Ray Chaplin's summary of the industry Nathan
Thats right kev, most of these things are just done so they can be ticked of a list. Then thrown in the back courner and never seen again

[Amlin]

The report is a fascinating read Kev - I know of several people locally who would also be eager to read this so I will pass it on.

[HarnessFan]

I am a great supporter of the owners forum.
Ray kindly asked me to support his development of the document.
When it comes to serious reform, our administrators very quickly put issues into the too hard basket.


As an example, this sport needs a National administrative service centre to deal with core processes such as accounting and prizemoney distribution.
The fact is these reforms have benefits - seriously significant benefits.


The response has been that such reforms are continually rejected due to state-wide legislative restrictions.


Sorry but it would be great if we had administrators that pushed a little harder.

[Viv Strangman]

Having now read it, I have nothing but admiration for the man who wrote it. Compelling and a must read for anyone in harness racing

[Messenger]

I am resurrecting this thread because it is very relevant to couple of threads that are attracting some debate lately, namely Breeders Challenge Day And Thoughts on Menangle and Holy Database Batman.

As I said in the first post in this thread, althought titled :Why has HRA not supported a National Owners forum to discuss major issues? It is really a report on THE MAJOR PROBLEMS IN AUSTRALIAN HARNESS RACING

With Ray's consent I am reproducing this report over a few posts. It is now a couple of years old but for those who never read it, I think you will find it thought provoking

[Messenger]

No HRA support for the proposed National Owners Forum for the Future

Part 1

This is the disappointing news for the www.equineexcellence.biz clients concerned for the future of Harness Racing in Australia and simply wanting the opportunity to formally meet with other owners in a National Forum to discuss major issues and to help resolve them

HRA Chief Executive Mr Andrew Kelly politely advised on July 1st that such a Forum did not have the support of Harness Racing Australia

Apologies in advance for this very lengthy assessment but it is necessary to cover a lot of factual ground to convey the rationale for my thoughts in regards the HRA decision

If you are interested pour yourself a very stiff scotch and read on!

In May 2014 the highly respected USA Harness Racing Journalist and razor sharp strategic thinker Dean Towers wrote an opinion piece for Harness Racing Update entitled “The disconnect between the rank and file and the alphabets (basic principles of industry leadership)”

Towers lamented how industry leadership in the USA stifles industry prosperity and identified that it is a “cultural” issue with “top brass” management that has inhibited harness racing’s success in that country

He summed up this article with his belief that if the gap between those who paid to provide the sport (owners) and those managing the sport (rewarded administrators) could not be bridged good ideas that could help the sport flourish would continue to die when sent “upstairs”

Harness Racing in both the USA and Australia has been going backwards for more than three decades and as is the case in any business the management must take full responsibility for this decline

It was disappointing but not surprising to receive the “no support” decision from Australia’s peak body for the National Owners Forum for the Future “idea”

Their decision confirms that the same “cultural disconnect” between the leadership and those that pay the bills (owners) is alive and well in this country

Please forgive my reluctant indulgence but to set the scene for my assessment of this decision I need to go back in time to 1972 when I was appointed to the position of Public Relations and Promotions Manager for the South Australian Trotting Club

I was accountable to grow attendances, wagering, sponsorship and media coverage for the metropolitan Club which at that time raced on a small 600 metre track located on the edge of the City at the Wayville Showgrounds, together with the fledgling Globe Derby Park which was some of the SATC leadership’s “vision” for future prosperity

There was no doubting that the very small Wayville track represented an unsafe workplace for reins persons as well as horses and that the public facilities at the Showgrounds were fast reaching their use buy date

But the location and atmosphere created a strong customer product offer with Saturday night crowds regularly upwards of 5,000

Mid week country front race meetings had commenced at Globe Derby Park three years earlier and as the planned shift from Wayville drew closer reservations about the wisdom of the out of town, Globe Derby Park location at Bolivar, were emerging

Globe Derby Park was situated in a wasteland adjacent to a sewerage works on the northern outskirts, seventeen kilometres from the CBD with no transport links and inconvenient to more than three quarters of Adelaide’s population

It was close to what was designated as a future population growth corridor (Sound familiar!)

Like most Committees/Boards where a few hold the real power, and most of the rest just nod this was the case with the SATC committee back then

The push for the Globe Derby Park “vision” was said to have come mainly from a couple of committee power brokers with business interests on the northern outskirts of Adelaide

Given there was some negativity building in regards to the Globe Derby Park location I decided to check the pulse of a cross section of those involved in the sport

A couple of Saturday nights was spent in the crowded betting ring at Wayville researching the opinions regarding the move amongst both “industry connected” punters and regular and occasional “fan” punters

A hundred or so punters were interviewed

No issues with the move amongst the vast majority of “industry connected” punters but major negatives surfaced amongst the regular “fan” punters

They were strongly attracted to racing at Wayville because of the convenient, easy to access location, regular train and bus services together with ancillary after the races entertainment options five minutes away in the City

Around eighty percent of these regular fans customers (“fans”) said they would attend the out of town Bolivar location less often and about one third of these said they would not attend at all

The views of trainers and drivers (many of whom were paid for their participation) were sought followed by the owners (those who pay to make the sport possible) large and small

The former group were overwhelmingly in support – the majority lived north of Adelaide and the convenience of Globe Derby Park together with its training facilities were understandably a huge plus for them

Like the punters the owner’s reaction was mixed and was dependant on how far they lived from Globe Derby Park and where their trainers and horses were located

The further away and more affluent the suburb in which they lived the greater the negative reaction

Again this response was driven by the convenience factor but also an “image” issue associated with moving from the city “showgrounds” to a metropolitan fringe waste land location close to a major sewerage plant plus their usual habit of a quick trip into the city to celebrate a win or take in a late night after the races dinner

The owner’s response was around 60:40 against the move of City race meetings out to Globe Derby Park

These findings were conveyed to the SATC committee but they were ignored

As a result I resigned from the SATC effective from the final meeting held at the Wayville Showgrounds

I believed a move to this particular location would be detrimental to the sports customer (“fan”) popularity and owner involvement and hence there would be little chance of achieving the marketing and promotion results I was accountable to deliver

The self interested and ego driven Club power brokers totally ignored the needs and wants of harness racing’s critical core customer (“fan”) base and all important owners – they knew better

Well they didn’t and as a result the SATC committee decision to proceed with the Globe Derby Park location for its metropolitan headquarters set the course for the decimation of Harness Racing in South Australia

It is no accident, just incompetence and a lack of “real vision” that the sport in SA has plummeted from being a one time successful leader to now being harness racing’s version of “The Men’s shed”

The worst decision in S.A’s harness racing history was made by a small insider power group on the basis of nothing more than an inward industry focus, subjective opinion, self interest and ego

There was no customer or owner focussed research that supported their decision which has resulted in the slow but inevitable and terminal decline of South Australian harness racing

Overall when inflation is taken account total stake money offered in S.A today is less than what it was twenty five years ago

Foal registrations in 2011 – 12 were 949 (87%) 138 less than the 1087 foals registered in 1973 – the year metropolitan racing moved to Globe Derby Park

Most of the professional trainers have been forced to move to Victoria as it was not financially viable to remain in their home state

South Australia faces the very real prospect of not having enough participants let alone horses for the sport to continue for another decade unless massive decisions are taken yesterday

[Messenger]

No HRA support for the proposed National Owners Forum for the Future

Part 2

Whilst I left a position in Harness Racing administration without a job to go to the experience taught me a lesson I have never forgotten – the customer (“fan”) determines the prosperity or otherwise of the business

In years since I have closely observed the management competencies and resultant fortunes of the Australian harness racing industry nationally

Nothing much has changed despite the continual shuffling of the deck chairs on both the HRA “Titanic” and the individual State controlling bodies

Major decisions affecting industry prosperity are still made in much the same way as the SATC did four decades ago

A forty year passing parade of new “top brass” names and faces always with the traditional “prosperous future” promises from the newly appointed messiahs - but always the same result – continual decline

The reality is that these promises are never delivered simply because the vast majority of the power brokers have not had the expertise or ability to identify the core problem driving the industry decline and therefore not a clue as to how to fix it

Had they had the competency levels necessary to grow the prosperity of harness racing the massive investments in harness racing infrastructure and ill conceived forced closures/ downgrades of country tracks in NSW, Queensland and Victoria would have never seen the light of day

The NSW trio and the Victorian officials responsible may not have imposed Menangle and Melton on the industry had they undertaken some very basic research

By comparing the attendance and wagering levels of the much more popular thoroughbred racing at Randwick vs. Warwick Farm (42 kilometres away) and Flemington vs. Sandown Park (30 kilometres away they could not have drawn any other conclusion than that their proposed even further out of town with less population major track “visions” (The failed Globe Derby model) were a huge risk to the future prosperity of harness racing in their States

Only now following lobbying by a small number of owners and www.equineexcellence.biz is the penny starting to drop amongst the insider groups of leadership of the core reasons driving the sports decline

Even though the still dim light has finally been turned on many of the “top brass” leaders remain anchored in denial and simply can’t accept that the crisis that had to happen is happening (and has been for more than three decades)

Faced with certain realization as the dim light brightens will come the “what the hell do we do about this” executive management phase

It may well be too late as the big supposedly game changing new track investments in the sports two biggest markets are locked in

We have seen how the previous HRA narrow terms of reference “Prohibited substances” review and the much vaunted “silo” HRA Breeders Panel both predictably failed to stop the “integrity” and breeding decline rot

We have also seen the 2009 HRA customer research review which found that harness racing was seen by the “average Joe” as old, dated, boring, difficult to become involved in/venue location too far away and not for me (not interested in stand alone harness racing) totally ignored by some State executive management Guru’s

Instead they have spent upwards of $80 million to build two new supposed “showplace” out of town facilities, at one extremity of the metropolitan population and expected that customers (“fans”) would take the long outward journey and turn up in droves to witness around thirty minutes of often boring stand alone harness racing before the taking long trek back home – they don’t and they won’t

In a more competitive entertainment market harness racing can’t compete because its customer product offer and value for money proposition is much weaker today than it was over three decades ago

It defies belief that the industry leaders responsible could be that inept – even many rusted on industry participants won’t regularly attend the so called new “premier” tracks anymore

An additional simple and cheap piece of market research amongst the customers (“fans”) the sport desperately needs to capture (the new generation) and industry owners (not paid participants) would have given them another red light not to proceed

But instead of engaging professions in customer brand and product development strategy they have followed in the footsteps of their SATC committee fore bearer leaders by adopting the same basic Globe Derby Park business model (only worse) and for many of the same reasons

They too knew better but have never understood the business maxim that without a robust, committed “high value” customer base there is no enduring prosperous business

[Messenger]

Why has HRA not supported a National Owners forum to discuss major issues?

Part 3

Now we have the next HRA reactive (as against pro active) “silo” Wagering Review finally in progress which will be heralded yet again as coming up with the solutions to the industry’s ills

No one in their right mind would argue that like ownership, breeding, and a strong continually replenishing “high value” customer base, wagering is a strategic business pillar that is critical to the sports prosperity

But like all the previous HRA reviews there is still no understanding from the hierarchy that successful businesses operate on a Strategic platform that establishes a unified structure and plan for all the units (silo’s) to operate within and contribute to – wagering in isolation cannot reverse the industry decline, just ask the Americans and Canadians

Harness Racing has never had and still does not have the leadership competencies and skills to create and implement the customer focussed Harness Racing Brand Vision, and Brand Mission framework required to properly execute the Brand and business strategies mandatory for success

So what’s the betting that after decades of top level management incompetence things will some how change and the industry will now enter a sustained period of National prosperity?
To determine the odds punters would require to get set for a decent wager on such a result the following is the harness racing executive management results form guide

At National level:

[Messenger]

Why has HRA not supported a National Owners forum to discuss major issues?

Part 4

Nationally these 2013 key indicator results are the worst ever recorded which confirms the failure of the recent administrative regimes to reverse the industry decline evident for over three decades

This failure was easy to predict

John Peck, the editor of Harness Racing International was gutsy enough to publish an open letter of concern regarding the direction the industry was headed in the January 2010 edition of his magazine

This letter included the same 2013 key indicators chart but for the period 1980 – 2009

The results back then were the worst ever recorded and as the latest chart shows they predictably have got worse and the rate of decline is increasing

The commentary that accompanied the statistics in the HRI letter included the provocative statement

“The vast majority of those in top level harness racing administration would not have a clue about the core issues that are causing the ongoing decline of the sport let alone having a scintilla of an idea of how to resolve them”

True then and still true today
In regards to all important wagering the latest 2013 statistics released by the Australian Racing Board reveal that that since 2009 total Australian wagering (including sports betting) had increased by almost $1.9 billion whilst wagering on harness racing had declined by $22 million over the five year period

The only Australian State which increased wagering turnover over this period was Western Australia (up 10.4%)

Perhaps this says something about how harness racing in Western Australia has been administered and the strengths of a high quality city centric “showplace” location and a track that produces exciting close up racing which in turn creates the atmosphere customer’s (“fans”) love

At a State level

Western Australia

Continues to easily lead the nation (on a pro rata population basis)

Sticks with the formula that made the harness racing brand successful i.e.

A convenient location to the majority of most customers (“fans”) and owners

A product offer that is glamorous, exciting and value for money

The most successful Inter Dominion format of all

But there are threats

These include a dependence on NZ for racing product resulting from the decline of the breeding industry (poor decision making); the possibility that the WA Tab will be privatised and an over reliance on a stand alone harness racing product offer

New South Wales

New South Wales recent stake – money “progress” is the result of the Harold Park inheritance thanks entirely to “visionary” fore bearers; the Race Fields legislation windfall courtesy of the dogged efforts of the NSW thoroughbred industry and a Tab distribution arrangement that returns much more than what harness racing contributes

The New South Wales Harness Racing Club with the endorsement of HRNSW leadership has made it harder for customers (“fans”) and owners to access and enjoy the sport by moving its headquarters some 56 kilometres from the Sydney CBD and racing on a track so big it required the installation of giant screens so those present could see the boring “live” racing

To try and get acceptable numbers to go they then gifted the traditional Harold Park and best Friday night wagering slot to the thoroughbreds in a deal that enabled them to race on Saturday’s

Regular decent size crowds have never turned up and wagering has declined

Australian Racing Boards published reports indicate:-

NSW harness racing 09/10 wagering was $630.98 million; and 12/13
wagering was $600.71 million a decline of $30.27 million or - 4.7%

For the same period total NSW wagering (including sports betting)
grew by $132.32 million an increase of +2.2%

Like Globe Derby Park, Menangle has not and will never (as a stand alone harness racing venue) stimulate the new customer (“fan”) support, increased new owner numbers, breeding expansion and wagering turnover necessary to put NSW harness racing on a sustainable prosperous footing – there is no published plan that demonstrates how it will

It would not be surprising if the racing operations at Menangle are in the red but for the fortunate few benefiting from the interest earned from the $100 million Harold Park nest egg the “park” is a gold mine

The investment funds probably earn interest of around six to seven million dollars annually excluding any tax and/or brokerage fee costs

This would be deemed an unacceptable return on capital by most business analysts who be expecting the $100 million funds to work a lot harder and probably return around the $12 - $15 million annually as a minimum before costs

So $100 million sits in the bank to prop up stake money and a business that is in all likelihood not profitable at racing operations level

Perhaps the New South Wales Harness Racing Club would consider publicly releasing their full (not abbreviated) financial statements in order to refute or confirm the above unproven assertion?

NSW has never recovered from the 2003 Strategic Plan instigated by Harness Racing New South Wales and strongly supported by New South Wales Harness Racing Club leadership

At an industry crisis meeting where participants including owners were labelled as “rabble” by a NSWHRC leader all of those present predicted that for obvious reasons the plan would fail

Not one relevant fact that supported the HRNSW/NSWHRC edict to downsize the industry was presented at this meeting

The plan failed; the passionate “rabble” participants were right and the leadership were wrong

Their decision severely and permanently affected the heart of NSW harness racing (the bush) negatively

Despite some belated attempted resuscitation (Carnival of Cups and Menangle Country Series Finals) both the breeding industry and the participant ranks have never returned to pre 2003 Strategic Plan levels

In May 2010 a HRNSW Board member made the following statement

“I have no doubt that with the current and future initiatives about to put in place by the team at HRNSW we are not far off the glory days of 2,000 foals … give it three years”

Three years have passed and his predicted foal numbers are more than 800 short of this entirely subjective and unsubstantiated opinion

[Messenger]

Why has HRA not supported a National Owners forum to discuss major issues?

Part 5

Recent HRNSW infrastructure commitments at Bathurst, Wagga Wagga, and Tamworth are all once again industry participant not customer (“fan”) and owner focussed

Mick Lombardo Australia’s largest ever owner went on the public record to warn the proponents of the new Bathurst development that they were heading down a track that had failed before

His national and international knowledge of harness racing would surpass the total knowledge of the entire Bathurst/ HRNSW executive project team but his message was completely ignored

When one HRNSW Board and Bathurst project group executive member was asked by an owner “How will this major investment grow the customer (“fan”) base, owner numbers and the prosperity of the sport his reply was “I don’t know ….. it just will”!

The Directors of the Bathurst Harness Racing Club are equally in the dark, stating in their 2013 financial report to members

“While the new facility is likely to see the profile of the Club increase, the financial impact cannot be accurately determined”

Bathurst and the other country track developments will predictably follow the same fate as Menangle and the 2003 HRNSW Strategic Plan

The HRNSW/HSWHRC new infrastructure developments (excluding training centres) have resulted in spent or planned expenditure of around $50 million and in total they will actually trade for an equivalent of approximately 45 days per year

The Bathurst investment of around $7 million was signed off by the “top brass” in NSW without even the preparation of a “Business plan” – a basic and mandatory requirement to securing finance in the professional corporate world and for small business enterprises

It’s hard to imagine a successful corporate business like Woolworths investing $50 million into four new stores which would trade for a total of just six weeks a year

The North American experience has demonstrated that wagering alone cannot support the harness racing industry – the New South Wales entire infrastructure plan and associated locations (including Menangle) are not compatible to the incorporation of the right integrated business models that will generate additional income streams and in unison build the attraction of harness racing to new “high value” customers

The HRNSW “Green Light” steward’s affair impacts could have been minimized with astute and intuitive executive management

Irreparable damage to the Harness Racing Brand has resulted and NSW integrity issues and costs have continued unabated

NSW executive management have also successfully managed to destroy the “essence” of what was once Australasian Harness Racings pinnacle sub brand – The Inter Dominion Championship despite the outcry from many knowledgeable owners

HRNSW went to the extent of denigrating these owners describing them in a published article as out of touch and suggesting they “get a life” because they had “audacity” to question the joint HRNSW/NSWHRC self applauded new ID Format which was endorsed by Harness Racing Australia’s ID Events Committee and Board

Yet in an Adam Hamilton interview the CEO of Harness Racing NSW admitted that he had not even studied the details of how horses qualified under the proposed new NSWHRC concocted ID format

He didn’t even question its inability to ensure that the best ten horses in Australasia would be given the opportunity to qualify

There are two independent directly comparable ID Economic Impact Studies that support the dissenting owner’s position

The 2012 V75 Inter Dominion traditional format in Perth attracted a total attendance of 26,068 with 2,350 people visiting Perth as a direct result of the event

The “new” 2013 NSW Inter Dominion format “for the future” attracted a total attendance of 17,517 with 2,909 people visiting as a direct result of the event

Perth’s population is 1.9 million, Sydney’s is 4.6 million

Perth is 4,000 kilometres away from east coast harness racing fans and 5,400 away from Kiwi harness racing fans

The 2014 $2 million Menangle Inter Dominion Final day attracted the lowest ever attendance for a mainland Capital City Inter Dominion and the biggest event in Australasian harness racing was even out gunned by a 2014 NSW provincial thoroughbred race meeting racing for half the stake – money

To date no 2014 NSW ID Economic Study has been released and the New South Wales hierarchy are already hedging their bets about their potential involvement beyond 2015

Given their boasting as to how successful their new ID format has been one could be forgiven for thinking they would be like seagulls chasing hot chips to secure the supposedly “lucrative” ongoing rights

Victoria

Facts again demonstrate some disastrous decisions taken by Harness Racing Victoria which have culminated in the parlance state of what was once the darling State of Australia

Following a time line from 1994 to today provides some insight in regards to the importance of “visionary” leadership

No names, no pack drill but suffice to say that the man in charge from 1994 until 2000 after consulting with participants including owners axed the about to be introduced “Anderson” report

The report recommended the downsizing of country clubs in Victoria but instead this leader listened to the “rank and file” not only canning the proposal but making the country heart of harness racing an important focus for the industry’s future

At the end of his regime in 1999 stake-money had been grown ahead of inflation and the number of live foals produced had increased

Come the new executive regime (2000 – 2010) and the man at the helm introduced the V3 plan which he described as “A vital step in the ongoing implementation of the Industry’s strategic plan to achieve sustained growth and rewards to all stakeholders”

The V3 Strategy included the downsizing/downgrading of country harness racing in favour of a city centric focus which included his Melton “Vision” for the future prosperity of Victorian harness racing

At the end of his regime in March 2010 stake - money had failed to keep pace with inflation and foal numbers had decreased

Even more damaging he left the current HRV government appointed hierarchy with a major headache – an industry in overall decline

This negative outcome was applauded by HRA as “making a significant contribution to the future prosperity of the sport in Victoria!”

The latest HRV Chairman (appointed in 2010) inherited not only an industry in decline but an out of town (45 kilometre) headquarter venue millstone hanging around its neck

The 2013 HRV Annual Report indicates a $29 million loan still outstanding and the applauded by some Melton complex still yet to make a profit

There is urban planner opinion in existence that questioned the potential of Melton as a designated “Satellite City” yet HRV leadership gave it the green light to become the home of Harness Racing

It was responsible for approving the construction of a harness racing complex which fell well short of what customers (“fans”) would have rightly expected

One wonders what might be today if “Visionary” owner and former HRV Chairman the late Graeme Cochran OBE had been listened to by some not so bright industry power brokers in regards to moving headquarters not west but south east of Melbourne’s CBD

Land at Keysborough was actually purchased but the development never proceeded

Keysborough was 22 kilometres closer to the CBD and its surrounding population areas were more established with a social profile demographic that would have been more likely to attract more “high value” customers (“fans”) and hence more future owners

Had Keysborough eventuated and evolved not just as a stand alone harness racing training and racing “centre of excellence” but as the largest integrated entertainment hub outside of Melbourne who knows how prosperous harness racing in Victoria might be today

But of course it would have been less convenient to the majority of metropolitan industry participants that lived closer to where headquarters was eventually built

The entire industry is now paying a heavy penalty for paid participant convenience at the expense of paying customer (“fan”) and owner convenience

The advance of Greyhound racing in Victoria led by “The Meadows” which is 25 kilometres from the CBD with easier access for a greater proportion of the Melbourne population has proved difficult for Harness Racing Victoria to repel

The subsequent reduction in wagering revenues will ultimately severely impact on the sports professional sustainability

Any change in the Victorian political scene that results in the loss of the current very supportive Liberal Premier and the current HRV Chairman could well spell disaster for harness racing in Victoria

South Australia, Queensland and Tasmania

South Australia has already been discussed
There are plans afoot to sell off land assets and re invest the proceeds into the failed Globe Derby Park location

Some would suggest throwing good money after bad

Queensland has seen its number of racing venues halve in the last decade

Included is the loss of Rocklea a metropolitan heartland breeding ground for both owners and participants

Now down to two regular racing tracks with a plan to build a new Alberton district located large track facility to replace the Parklands (Gold Coast) circuit some 50 kilometres away from the highly populated tourist Mecca

The Russ Hinze stand at Albion Park was closed for safety reasons in late 2008 but a total redevelopment is expected to commence in 2015

Foal numbers are in free fall being down by around 25% in the past four years

Wagering has also suffered a major decline

According to Australian Racing fact books wagering on Queensland harness racing for y/e June 2013 was 13.7% less than was recorded for y/e June 2010

There is ongoing disquiet amongst many Queensland participants that the focus of executive leaders is once again on the “big end” of town at the expense of the hobbyist heartland and therefore ultimately to the detriment of the entire industry

Tasmania’s major Hobart and Launceston venues comprise tracks positioned inside of thoroughbred tracks

Such tracks are unable to maximize the unique harness racing experience of being close to the action

Stake money has declined since the initial “Betfair” infusion

Foal numbers (199) were the lowest on record in 2011 -12

To the credit of Tasmanian administrators they have taken a decision to realign stake – money to ensure an incentive for grass roots participants to remain in the sport


Place your bets punters!

Given the benefit of the preceding form guide as to the combined performance levels of harness racing’s executive management structure and the majority of those who have had very senior roles within it what odds would you want to bet you’re hard earned that positive change and sustained prosperity is just around the corner?

[trish]

Ray Chaplin is a very smart man........I hope everyone in harness racing has read this that Kevin has so kindly made available to us again.

[trish]

It appears to me that the great friendships have disappeared from harness racing, the camaraderie has been taken out of harness racing, the loyalty has been knocked out of harness racing , so what is left is profit. And unless the authority can work out a way to make breeding profitable , like any other business it can only fail.


A friend of mine has suggested that instead of the next prize money increase, the breeder of any NSW winner should get $1000 for the life of the horse & hope that if you breed 30 horses & they win
one race a year it starts to make your breeding business profitable, and your more likely to let your horse go at the sales for a bit less than you wanted, knowing you may have a real chance at getting it back. Does anyone have any other ideas ?

[Messenger]

It always strikes me as a bit of a chicken or the egg debate Trish. Are returns to the owners in the long run more beneficial to more areas of the industry - obviously the owners but also the trainers (%) and the breeders as buying a horse becomes more attractive. Owner/breeders would be happy either way :D

Just watched Bred To Win and they said that Australia is the 2nd largest producer of Thoroughbreds in the world - I am assuming that they are not worried about declining numbers

[trish]

The breeder is at the bottom of the food chain. Everyone wants everything he has got for nothing. At the recent sales in Sydney, not only do you have to pay 11% (10% plus you pay the GST on the 10% believe it or not) but if you put a reserve on your yearling & it doesn't reach its reserve you have to pay the 10% on the reserve price, not the actual figure reached in bidding. Breeding is a business and the figures don't lie so unless that business starts to make money for the amount work put in , so far for very little or no return for most , then it must continue on its downward trend.
HRNSW have tried to help by cutting out some fees , which is great , but it really is like putting your thumb in the dyke wall.

[trish]

Read the review (http://harnesslink.cmail19.com/t/d-l-dllrtkt-niyuhkjd-d/) http://i9.cmail19.com/ti/d/39/086/C3F/181143/img/2line.png

We agree with your letter Gordon Banks! This letter to the editor was submitted by prominent owner and breeder, Gordon Banks, and the staff at Harnesslink agrees 100% with what he says. We applaud Mr. Banks for taking the time to “tell it like it is” and we encourage everyone to please read his letter and act on it before it is too late.

Having a significant presence and investment in harness racing in both hemispheres, I find myself continually bemused and frustrated by the incredibly poor industry management exhibited by industry leaders. It seems as if anything that can be mismanaged, will be!

No doubt it is difficult to manage events within a fractured industry rife with self-interested participants who value their interests above general industry interests, but all should see the handwriting on the wall. Without proactive, focused and intelligent navigation harness racing worldwide will be just a footnote in the history books. Fragile international economies, lack of sufficient funding for police, firemen, and a variety of social causes, competing gambling and entertainment opportunities, governmental restrictions limiting industry flexibility and effective control over wagering platforms, and a dangerously aging customer base portend a very limited future without unified and incisive industry leadership!

In North America, racing has become monotonous, stake races have become generally unbettable and overly predictable because of small fields and seeding of horses, the Meadowlands has metastasized from a great racetrack built around top stake and late closer races and top drivers to a purveyor of racing mediocrity held together only by deals with betting syndicates that deprive horsemen and the track of a viable purse structure and profitability, owners are leaving the industry in frightening numbers, and chemical warfare is so rampant that only judges, racing commissioners, and track operators fail to get angry enough to act! Certainly fans, bettors, and horse owners are running away with alacrity!

In the southern hemisphere, harness racing is also in decline. Southern New Zealand harness racing is financially and competitively dysfunctional. Horses can't race frequently enough and, when they can race, a socialized purse structure has insured that only the winner can leave the race remotely contented. A system in which the winning horse earns approximately 53% of the purse, with 2nd getting only 15% - so that all starters get 2% - is doomed to cause the owner exodus that it was created to forestall. Throughout New Zealand, the dominance of a few large and well-funded trainers give them tactical advantages that are preventing effective competition, and leading owners and trainers to give up, move operations to Australia, or look at dubious ways to better compete. Recently, the NZ tote announced that they would limit the amount a major wagerer could wager on a daily basis - a strange concept if ever I heard one!

In Australia, continuous integrity based scandals have effected industry growth, purse increases have not kept up with cost increases, and lack of an American veterinary type support has led to most horses being unable to hold together going the times horses are now going. Owners just can't make enough money to willingly stay in the game hoping for the lottery winner we all dream of, especially since it seems that the industry expects owners to always subsidize other industry participants!

I could easily identify an almost endless list of issues negatively affecting the harness industry worldwide, most prevalent in both hemispheres, but most of us are well aware of that list. We need to stop letting this industry we love fall apart at the seams because of our inactivity, no less than because of the poor leadership that has led the industry into the mess it's in. We need to recognize that those who have mismanaged in the past will inevitably do so again in the future! If we really care enough to right the sinking ship we all have to become proactive and FORCE industry change! There are more than enough brilliant business minds, open minded and flexible thinkers, well connected owners, horsemen, and track owners to cooperate effectively in reshaping this international industry into a competitive business/sport for the 21st Century. The existing industry leaders are not, and have not, and will not lead this industry they have crippled into the light. Rocking the boat is never fun - but this industry we love is fun, and can be more fun, but we have to overcome our time constraints, our fear of becoming pariahs, of losing friends, of opposing friends who are old industry stalwarts, and speak up about the many obvious actions and inactions that continue to cripple this industry on a daily basis.

Trainers know which trainers are breaking the rules, racing authorities and track owners know which trainers are breaking the rules, owners even know as evidenced by the many owners who switch to obvious drug barns!

All of us are to blame, and only all of us together - each risking something - can help fix the situation. Without an even playing field, without enabling more competitive racing by ending short fields in stake races, without forcing great horses to earn their greatness the hard way instead of handing them prestigious wins by separating top seeds and having 5 and 6 horse divisions, without returning the meadowlands to greatness created by being the best rather than pretending it still is, harness racing is unsalvageable.

This is written in the hope that it will be effectively received as the call to arms it is intended to be. Nothing I have written is unknown to anyone, yet we all let harness racing drift away. The USTA and other racing organizations cannot, and will not, fix the situation. Racetrack owners cannot and will not fix the situation. Owners, trainers, drivers, and customers cannot and will not fix the situation....working together, and only together, can the industry be salvaged. What mechanism can help push and effectuate this cooperation and the actions that must follow is unknown, and not presently in existence. We must create this! I am more than willing to dedicate some of my time for this cause, I hope that many others will too!

I have already cut back heavily on my international broodmares, have limited my investment in yearlings, racehorses and stallions because of my perception that, without significant short term industry change, this industry will totally fail as a viable business (and fun) option. I am hoping that we can intercede to save the ship, otherwise sooner than we all wish, there will be only the shell of an industry to muddle around in!

Gordon banks

Source: Insider Access from Harnesslink