So, a rather substantial gaggle of leading Australian racing leaders should now be on their way back from those “fact-finding” missions to Royal Ascot, where of course hefty barrows were pushed in the Self Interest (and Selfie Posted) Stakes – some of which may await pattern approval.
And after attending the best racing week on the global calendar, well except their own of course, thoughts and plans will focus on spring and more immediate issues.
Racing New South Wales was the only Aussie winner in the Royal week at Ascot getting King Charles III to allow his moniker to rename the Colgate Optic White George Main Stakes and stump up $5m from the POCT funded sustainability fund while holding on to Group I credibility from day one albeit on a new date – to run with $20m The Everest on Melbourne’s Caulfield Guineas day. Such an announcement was predicted and it looks a winner.
Even the Melbourne Racing Club agrees.
Put that aside here, for I see a rather complimentary program across the two states come spring for the small pool of ‘heroes’ that could juggle the new calendar, but racing will fight a little for free to air play, just as it pushes to grow that so-called big pie in prime time (pardon the clichés).
Not something lost on Andrew ‘AJ’ Jones, the Racing Victoria CEO, almost blissfully embracing the challenges ahead, as well as those many current, as he approaches an annual anniversary of his role.
While many of his contemporises were top-hatted, ‘AJ’ was back in Melbourne (no tie) explaining up Victorian prize money decreases and industry funding issues, talking to animal protesters invited to his table, as well as to us at Racenet.
If there was the hint of a slightly imploding world around him, the Jones message was – bring it on. And you the fans, the customer, the punter, well, we are your voice and we are here for you.
“When I came to this job, what interested me most was the challenge and the opportunity of growing racing,” Jones said.
“What excites me about racing is the pleasure it delivers to fans and by extension to real Australians and communities.”
Jones comes from outside the (racing) bubble. The innovation of Big Bash and T-20 cricket sits impressively on a hands-on CV. “Stay tuned” when I asked how he was going with a T-20 version for racing and “Rapid Racing” is not it.
“Racing has a challenge for market share,” he said stating the obvious.
“But then so have many other sports I have worked with. Cricket had an ageing male skewed fan base, the perception it was too long and too boring.
“Racing is similar, it is seen as complicated, but I think the more you understand it, the more interested it gets, but that’s the message we need to address and sell.”
“How you do that to a younger audience is a key challenge, how do you turn an 18-year-old into having their first bet on racing rather than sport in a technology environment which is ultra-competitive.”
But racing is a unique sport. Its fan or its customer, that’s you, is also the driving force that funds an industry than gouges it via driving up price via the Point of Consumption taxes while underpinning those Bonus Bets to keep you in the game longer. We will return to that.
It has a language of its own and in Jonestown, its format isn’t adept to younger fans who are more attuned to tribal football and sports where they play rounds or heats, into a series of finals.
Mentioning that I am of the old school that there is never a last race, I’m assured I am ok, I am a barnacle on the boat that sails along, racing is after that elusive new audience so let’s change the thinking.
“Basically racing is run by people who like it and that is fine, we need to find people who don’t and find out why and how we can bring them into the tent and why they are wrong or wronged.
“The customer is always right, we just need more customers and we need to appeal to as many as we can, Racing Victoria has data on current customers and habits, much behavioural which we learn from and is vital in making any decisions,” he said.
This is where we get into slightly floating ground. The 'put the races on when the customer wants to bet on them' mantra – you know later in the week, later in the day come evening, come night – when of course balancing the workloads and impacts on participants and their welfare.
Or a 10th race on a Saturday because that’s when racing gets the most out of the punter, no matter the quality of the product, when the day is longer (possibly squeezed in), but that suits the agenda.
“The schedule is very important, we are a leisure and entertainment activity so by definition, we must appeal to the biggest market and that might not be Monday to Friday and especially earlier in those days or the week.”
“We are mindful of the participant and we need to be able to maximise their incomes and wellbeing and reasons to be working in this unique industry, but everything for us works around the structure of the program.”
So to you the fan and customer, the message from Epsom Road is clear.
“The fan is the boss, they are ultimately paying the bills and we recognise they have a choice in how they spend their time and money, they are the boss of us all and we need to be attentive to their needs and we are constantly working on this.
“We need to improve the way we present our product (via the Integrated Media Business that includes racing.com, RSN and the Winning Post/Bets Bets publications) and despite what people think, we are also very conscious of pricing our product,” Jones said.
The 50% increase in the POCT has given the industry “certainty” in on-going long term funding as RNSW announces new races and increased prize money and South Australia and Western Australia present new funding opportunities in more immediate times than RV can.
So you might be surprised to know that RV – through their Wagering Development Fund – underwrites (for the want of a better term) those $50 bonus bet backs you might get from your wagering service provider. Jones calls it a “co-investment”.
“If you get a bonus bet and win, bookie gets to deduct those winnings from its race-fields fee calculation – they pay on net wagering revenue so they get to take off winnings from bonus bets, so that encourages bonus bets, and then there is a fund that is funded out of race-fields which is reinvested into generosities by agreements with the WSPs,” Jones said.
As the government deals with a review of all gambling issues, Jones is confident existing customer agreements and bonus bets will be quarantined from new inducements.
Jones identifies himself as a perfect case study – a punter on the couch for a few hours each Saturday afternoon.
“I’m ok ethically with punting, it’s just a balance for a much-enjoyed pastime for a lot of people and a big problem for a small group.
“Leisure expenditure costs money, punting provides entertainment. Those are not doing it to make money, more the experience, I can see that.”
So the immediate job for Jones is the new RV Strategic Plan and three key “pillars”, if you like a corporate word.
The joy the industry bring to fans and owners (and the industry it plays in community).
Celebrate the care for horses
Identify and provide jobs and growth (economic impact) – to underwrite the contract it has with government.
“We have to sell our message better but we are the voice of the industry and the participants which is an ongoing challenge, but especially the punters we have a lot of wrangling going on all the time, but the punters don’t have a union, it’s our job to sit in their shoes.”
So some quick markers:
POCT: “The cost may increase but we expect that to come out of the bookies margins, they have got bigger and are at a better position to operate at smaller margins.”
Three Club Model: “There is an economy of scale across membership, raceday, events, commercial, track management, gaming and property, there might be more an alignment in incentivising race scheduling but the three clubs have been successful thus far, ultimately it will always be a matter for the clubs.”
And on Country Racing Victoria – “They provide a very valuable service to the 65 other clubs.”
Media Rights: “I can’t think of too many other sports that would siphon out their biggest event, maybe Barcelona and real Madrid in the Spanish League, yes I did find it a bit odd, the best model is an aggregated one but we must focus on how best to maximise the Cup audience and we have no issue dealing with TABCorp for the rights.
“But we are working hard on better presentation of our day to day from jumpouts and trials to innovation in presentation, but yes we can do more.”
What are your Key Performance Indicators?
“It comes down to ratings, attendance and turnovers, as simple as that.”
Final Word: “I remain motivated by the role racing plays in normal people’s lives. It’s what keeps me motivated.”
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