Following consultation with clubs and RIOs regarding paying back to 14^th, the NZTR Board has decided to maintain the current prizemoney policy from 1 February 2021, with an amendment for races worth more than $15,000.

The continuation of the policy to pay back to 14^th gained strong support from the Racing Club Advisory Group, which recognised the flexibility this provided regarding adding races where demand required.  However, there was also acknowledgement of the fact that there may be a better way to distribute prizemoney to reward those filling minor placings.

Currently prizemoney is distributed by the following formula:

1^st – 54%

2^nd – 15%

3^rd – 7%

4^th – 4%

5^th to 14^th – 2%

This formula will remain for races $15,000 or under.

From 1 February 2021, in races with stakes of $15,001 or above, the distribution will be:

1^st – 54%

2^nd – 17.5%

3^rd – 8.5%

4^th – 5%

5^th-14^th – 1.5%

While consideration was given to applying this formula across the board, it was noted that owners finishing 5^th-14^th in $10,000 races would have to be billed for the small difference between their share of the stake and their riders’ fee. From 1 February riding fees increase to $160.  The current 2% distribution would ensure the riding fee would be covered.

When a race has a starting limit of 14 or more, but there are fewer than 14 runners, the prizemoney for the placings not filled is retained by NZTR.  This prizemoney saved has, thus far, been used to help fund over 50 races which have been added to the schedule, as well as the cost of two additional race meetings.

Funding volatility is something which NZTR is extremely cognisant of, given that there is always the possibility of a further Covid-19 outbreak and/or deteriorating economic conditions.  While current customer betting and turnover trends are very positive, it may be 12 months or longer before the effect of a post-Covid recession as well as reduced TAB NZ marketing, promotional and other activity has on customer numbers and turnover across all of its offerings.

The industry needs to be aware that TAB NZ has not underwritten a total amount to be paid to the codes this season, rather they have provided a budget of the funding it aims to pay.  We now exist in a funding structure where we are paid in arrears, rather than in advance and cover as much of what would otherwise be a negative cashflow position.

Part of NZTR’s accountability and responsibility to the industry is to ensure the sustainability of the current stakes level and avoiding borrowing funds to pay for stakes, or worse having to reduce stakes mid-season.