Revisiting the Numbers

Remember, BC Cup Day is on Monday. Post time is 12:20pm. With 10 great races it should prove to be a great day of racing. Everyone should make an attempt to be there. The weather forecast is looking good and so we should have a bright sunny warm day.

Here I am again revisiting the numbers that make up the budget for 2011. Below you will see a more detailed chart then the last one that I put up. The first two numbers to look at are items 1 and 2.

These two amounts represent the net revenue that was expected from the handle for both racing sectors. You will note that the Standardbred sector was expected to bring in 45.68% of what the Thoroughbred sector did. Now look at items 22 and 23. Why is the Standardbred sector receiving 66.80% of what we are receiving? It is 21.12% more than what they brought in relative to what the Thoroughbred sector brought in. So for starters the allotment % has been unfair from the very start. Then what happens …..disaster hits the Standardbred side and their handle for the meet January through April plummets to a point where now their expected revenue for the year is approximately $3,000,000 and the Thoroughbred Sector revenue is expected to be 9,900,000. So now the standardbred sector is producing only 30% of what the Thoroughbred sector produces. And what happens next. The Management Racing Committee announces a 10 month, 82 day meet rewarding them with 6 more dates in 2012 than in 2011. A head scratcher to say the least. Well if this is the case then the thoroughbred sector can expect 88 days and right through to Breeders Cup the beginning of November, Right?....Wrong!....More likely they will try and cut the Thoroughbred sector back to 61 days and we finish on Labour Day. Next year the allotment percentages must change to commensurate each breeds handle. Here is what is fair for next year……. 37.25% vs. 12.50%.This allotment percentage is in line with the expected handles for 2012. Now why do I keep revisiting this? Because we cannot expect the Management Racing Committee to adjust the budget midstream. It would throw everything out of balance. But I do expect an allotment percentage adjustment for the 2012 budget. And I have to keep hitting home on this point. The future of our industry is at stake and we must receive a fair allocation of the available funds.

Now the other matter that I have a problem with is the $10,000,000 grant item 3. Now I touched on this item also last blog. The point I am trying to make in all of this is why does Great Canadian receive any part of this grant at all. The original makeup of the $10,000,000 at the beginning of the year was 60% slot money that was meant to go into the purse account. It was never intended to go to Great Canadian as part of their operating budget. Also, if it is a $10,000,000 grant with slot money no longer part of the equation….where did the $6,000,000 go to that was being paid to both breeds? Even the Standardbred sector should be questioning this. So the bottom line of this is, there are many more question then answers on exactly what, when, why and where our slot money actually is???
Remember one more thing. It is bound to cost Great Canadian more money to run the meet next year at Fraser Downs. Where are those extra costs going to come from? Stay tuned as more than likely the budget process has just begun and by the first part of December we will have an answer.

One last Note
I notice that there is always 2 or 3 that disagree with my postings. And that is just fine. I stand by what I write, I put my name to it and I do so because I want so much for this industry to not only survive but thrive. But for the few that hide behind a check mark and disagree, why don’t you step forward once in a while and state why you disagree by posting a comment.

New Kid
There is a new “kid” on the block and his name is Doug Scott. He will replace Derek Sturko as Assistant Deputy Minister, Gaming Policy and Enforcement Branch (GBEB). I am trying to obtain his email address so as to keep him informed on entries and results over here……….. amongst other things!

See you all at the races on Monday. It should be a great day and it is important that as many people as possible attend and support one of our banner race days of the year.

Michael R Bye
Owner

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