iBudget

Kelly, I have never been to Grand River. My armslength observation, is that you are active, creative and part of the potential solution.

In a perfect world, Allan, your plan sounds ideal.

Last night the Sudbury Downs handle was $2,200. Turn the clock back twenty years when tracks operated with a business plan supported only by on-track revenue. Imagine, with 75% returned to bettors, and applicable tax considerations, the track revenue would amount to roughly $270. If 50 was returned to horsemen, the average purse over a 10 race card would be $13.50. The fifth place finisher would pickup a cheque for .675c.

Millions are being recycled under the guise of job creation. This model isn't working. Time to make that budget work effectively. The wheeling spinning cannot continue.

Kelly, truth be told, not knowing what currently is spent, I can't give you specific numbers. But here is where I would put the emphasis on in descending order (most money on top). I added a couple of categories and broke out others.

Purses - That is probably the most expensive part of the budge. It not only goes to the owners, but it pays the salaries of the trainers, drivers, grooms, farriers, hay man, etc.

To break out purses I am going to be revolutionary here and take 66% of the added money events and allocated them to aged trotting and pacing events. We need to provide more inducement to get our best horses to keep racing. Also, by reducing the amount of money available for 2 and 3yo events, trainers will be less pressured to keep a colt or filly in training when they could use the time off at that age. We can have 2 and 3yo stakes, let the owners put up the vast majority of the money.

Racetrack Operations - It costs a lot of money to keep the physical plant going.

Racetrack capital expenditures - Need to keep the physical plant up to date so it will be a place people want to visit.

Product Research & Development - We need to revitalize the product.

Marketing (takeout offset) - Take some of the slot money and use it to reduce the takeout to stimulate business.

Marketing (advertising) - Need to outreach to potential customers. Can't skimp on the advertising in the papers, television (including the ADWs).

Marketing (promotions) - Get those concerts and other events to get the youth in. Host Adrenaline.

Regulation - Need to make sure integrity is priority number one. Spare no expense on medication testing and ensure the regulators are properlly staffed.

Marketing (public relations) - Get your horsepeople in the community. Get them into charity dinners and other events. Become valued membersof the community.

Associations (breeders) - Need the sire stakes and breeder awards. But this is an area which has been overspent on in the past. Yes, we need to encourage breeders, but too much emphasis has been given to the breeders; we need to fund other initiatives better; including marketing and reducing takeout. Breeders complain? Ask them what they are going to do when your racetrack ando thers close up.

Associations (horse welfare) - Time to develop a real viable retirement program for race horses. First of all it is the right thing to do. Secondly, need to make sure the animal rights people have one less issue to go against racing).
•• Regulation (ie. ORC, CPMA, etc.)- $10 million

Associations (benevolence) - If you are not a leading driver or trainer; there is a good chance you don't have much saved for retirement when you retire. Also, if a driver or trainer is injured, how is the income going to be replaced. We need to make sure none of our horsemen are in dire straits once they careers end one way or the other)

Associations (horsepeople) - I assume you are talking about horsemen's associations.

Hope this helps.

Just retired from racing recently & purposely stayed away from track, tv etc. and it is very obvious that the average person has never heard of standardbred or harness racing - it is virtually non-existent. A greater piece of the pie needs to go into newspaper dailies, local channel tv etc. As far as the tracks capital expenditures, they can look after that from their slot revenue. Here is my breakdown:

Purses 40%
Product research and development 10%
Associations 10%
Marketing, advertising, promotions 40%

I agree with Alan for the most part but the emphasis needs to come from public attraction, not necessarily public relations. People need that wow factor they can only get live, some how we gotta make it rosier for people and famillies to come out not just bettors. This year we took many leaps toward a newer generation of fans, with newer technology and many options available. Kelly's videos captured many hits off my "wall" and several people ask or chat about them often.I think this is the sort of thing that will enable the industry to grow in a downturned or optimisticly level market.
My split would go like this:
Purses:15%
Racetrack Operation Expenses:30%
Racetrack Capital Expenditures:10%
Marketing Advertising Promotions:15%
Product R&D:15% (geared toward public entertainment)
Regulatioons ORC:5%
Associations:10%

Its a good thought Kelly. Thanks...

Hi Kelly,

Since $1B has been given to the track since 1995 and $1B has been given to purses, I propose we change things up and give $1B to bettors. This might give them a chance to win and make them play harness racing again.

Giving to customers to encourage them to play the sport? Probably too radical, I know, but the first two billion did not do much did it?

So my split:
$1B to long suffering customers
$0B to everyone else who got the first two billion.

Dean

Kelly. The first item to address (35%) must be public relations. As an industry we must first reach out to the public and customers. You can congratulate yourself in understanding the importance of the "people aspect" of our business. Even within the business (drivers) there has been loss of focus in customer interaction. Drivers no longer seem to take time to even talk to trainers about their horses, even though these people have taken at least a week to prepare for less than 2 minutes.....Have they forgotten that a good horse doesn't need a good driver, but instead a fast passenger? 2)Public relations (35%).....What do our customers want and how can we serve them better? The growth or even maintenance of the business relies on this ??3) Capital expenditures (15%)..For racing not slots...
Purse...15 %....I know that it may seem cold to ignore the rest, but this is about "growing the business"....

Can you give us ballpark figures for each of the categories as you have outlined them that are based on history or what last years actuals were?