by Brian de Lore
Published 1st August 2023
Five years have elapsed (almost to the day) since John Messara AM handed over his ‘Review of the New Zealand Racing Industry’ to the then Minister of Racing, Winston Peters.
It’s timely, therefore, to get John’s thoughts in a Q&A. He kindly agreed to share his views on what’s happened in the intervening five years and where New Zealand Racing is heading.
BdL: It’s exactly five years since you completed the Messara Review with 17 recommendations which were implemented only in part, despite your pleading that it was a suite of fixes that needed to be completed together and urgently. How do you look back on what’s happened since, and what might have happened had every recommendation been implemented?
JM: That’s a good question.
When I began my Review in 2018, the New Zealand Thoroughbred Industry was short of revenue, short of capital and had what I considered a less-than-optimal administrative structure. My recommendations were intended to remedy those shortcomings, but they needed to be acted upon quickly and fully for maximum effect. This was not to be, and even after the recently announced TAB Joint Venture with Entain, there remains the need to complete the consolidation of clubs with the resultant surplus capital funds used to modernise tracks and facilities to international standards.
While we are not there yet, good progress has now been achieved, and I am beginning to look at the New Zealand Industry with optimism.
John Messara: I am quite happy that what I recommended then has remained relevant.
BdL: Is there any part of your review you would change five years hence? Were you surprised by the emotional response against track closures?
JM: No, I am quite happy that what I recommended then has remained relevant.
Yes, I expected an emotional response to track closures, but I was hoping that those who work and invest in New Zealand racing would see the bigger picture, given the dire state of the New Zealand racing economy. We did our best in the recommendations to ensure that all districts would retain a viable racetrack capable of presenting regular, good-quality racing within a reasonable distance.
To read the five-year-old Messara Review, go to the following link:
BdL: Your long-term interest in NZ started with a successful bid for Waikato’s Balcarres Stud in 1981 before the Government quashed the sale because you were an Australian buying land in NZ. After that rejection, what drove you to retain a keen interest, then write the Review, and afterwards continue to help an ailing NZ industry?
John Messara: I have always admired Kiwis for their valiant “will to win”
JM: I have always admired Kiwis for their valiant “will to win” and their strength in adversity, and it has been easy to respect New Zealand thoroughbreds for their continuous over-achievement. The first yearling sale I ever attended was at Trentham in 1969, when Sovereign Edition’s first crop yearlings were on offer.
I see racing people all over the world as being part of “one sporting family”, and I was pleased to try to give something back to a brave New Zealand jurisdiction that had slipped..
BdL: Entain has now arrived to partner with TAB NZ, a move you strongly recommended in your Review, which could have happened five years ago. What’s your overview of the deal, and how do you see the effect on the New Zealand industry going forward?
Excerpt from the Messara Review: “I believe that the current governance structure and regulatory hierarchy do not lend themselves to the necessary level of Code accountability or to sound decision-making and this can lead to unnecessary Government involvement in the industry. It may be for this reason that, despite a number of previous independent reviews and industry reports, almost no meaningful reforms have been adopted since the passing of the Racing Act 2003 some 15 years ago.”
John Messara: The terms of the TAB-Entain deal are broadly in line with my expectations
JM: The terms of the TAB-Entain deal are broadly in line with my expectations at the time of the Review, and I see this as the beginning of an uptick in the industry.
BdL: Inflation has eroded NZ’s prizemoney over many years, unlike Australia, which has forged well ahead. This factor has disincentivised ownership and domestic spending at the Karaka Yearling Sale. What level of prizemoney does NZ need to bottom out the graph line and claw back lost owners for a sustainable future?
JM: I remember aiming for prizemoney of $100m in the 2018 Review. However, given the inflation in costs since that time, I would say that prizemoney of $120m would be more appropriate in 2023. Many factors contribute to the buoyancy of the thoroughbred industry, not the least of which is the level of discretionary income in the economy. Prizemoney is also an important factor in keeping the wheels of the industry greased, and while the majority of owners do not cover their costs of racing, many are driven by other factors. Prizemoney for “industry races” must be at a reasonable level to keep people in the game, maintain & grow investment and support the retention of fillies for breeding, while aspirational races through the Stakes program keep us all dreaming.
BdL: NZ has an alarmingly diminishing foal crop from a shrinking population of both stallions and mares. The Kiwi record of producing high-class horses to contest the best pattern races throughout Australasia must numerically be under threat. How can this be remedied?
John Messara: Field sizes and quality are important factors in wagering – the industry’s major source of revenue
JM: This is an international trend, although it is more accentuated in New Zealand. Field sizes and quality are important factors in wagering – the industry’s major source of revenue – so there must be an aim to grow the population of horses.
We all know what a great horse breeding tradition exists in New Zealand, and the optimism that should come from recent and hopefully future announcements will fuel the fire and place upward pressure on the smaller number of yearlings currently available. I believe for those reasons that we may have seen the worst of that problem.
BdL: The Pattern determines the level of excellence of the best horses everywhere in the world. It has come under threat in recent years, mostly in Australia, with the introduction of high prizemoney non-pattern races, which is starting to divert the best horses away from traditional black-type racing. How is the integrity of the catalogue page retained? And what should be done to protect the Pattern, and how important is the Pattern for racing’s future?
JM: The Pattern is a key driver of investment in racing. Black type remains long after the prizemoney is forgotten. So, while we need an uplift in general prizemoney. we also need to protect the Pattern and ensure it reflects current performance and meets international conventions. A respected Pattern keeps the industry relevant on the world stage, something that is sometimes underrated by racing administrators.
BdL: NZ has a cumbersome and inefficient structure of administering racing – seven boards if you include the Members’ Council – in which a consensus to run racing efficiently is difficult to reach. Do you see a future fix for that problem? Is there a governance structure used in Australia that would work in NZ?
Excerpt from the Messara Review: “I believe that the current governance structure and regulatory hierarchy do not lend themselves to the necessary level of Code accountability or to sound decision-making and this can lead to unnecessary Government involvement in the industry. It may be for this reason that, despite a number of previous independent reviews and industry reports, almost no meaningful reforms have been adopted since the passing of the Racing Act 2003 some 15 years ago.”
JM: I think the Australian model is not necessarily appropriate in the smaller New Zealand jurisdiction. One point that has emerged in both countries is that boards with a majority of “independent directors” are less effective than boards populated by men and women who have deep racing industry knowledge & experience but are capable of retaining independence of mind and decision-making. However, I realise that this is not the current “wisdom”.
BdL: Do you detect underutilised strengths in the New Zealand industry? How would you manage New Zealand racing if you were solely in charge?
John Messara: The StrathAyr track has been a successful innovation in Australia
JM: My suggestions of 2018 remain relevant today.
BdL: NZ soon gets its first StrathAyr at Ellerslie to provide the first consistent racing surface. How do you see it impacting the future of NZ racing?
The StrathAyr track has been a successful innovation in Australia, and I have always believed that even fully artificial tracks have a role to play in racing and training, especially in grass jurisdictions that suffer extreme weather conditions. However, a few members of the training fraternity remain opposed to them but in Australia, at least, they are broadly well-accepted. Obviously, there is a need to adapt to different surfaces and proper, regular maintenance and renewal of such tracks is critical. Viable tracks in New Zealand will play a significant role in the continuity of racing and training if they are well-constructed and well-maintained.
BdL: The Waikato Racing Club, Cambridge Jockey Club, and Waipa Racing Club have now merged, which took effect on August 1, 2023. The Pukekohe-Auckland merger was the first in the modern era. Are these two amalgamations a precursor to more future mergers for remaining stronger racing clubs in NZ?
JM: I do hope that’s the case. New Zealand still has too many tracks for the size and scope of the industry. Unfortunately, this is a luxury that cannot be afforded.
BdL: How would you solve the Avondale Jockey Club dilemma? What are the benefits of Avondale joining Pukekohe and Auckland, and should the proceeds of any sale of Avondale be allocated to the future of the Ellerslie objectives or filtered down to the entire thoroughbred code?
John Messara: The glory days of racing in New Zealand may not recur until the Avondale issue is resolved
JM: The glory days of racing in New Zealand may not recur until the Avondale issue is resolved. The industry is hungry for capital to rejuvenate its key assets, and a merger that frees the capital locked in the Avondale property would, in one fell swoop, resolve this on a long-term basis. I do have some ideas on how this could be achieved for the benefit of all the parties involved. What a magnificent legacy Avondale could leave to the entire New Zealand racing industry!
BdL: If the entry of Entain into NZ and other changes brings NZ stakes up to an international level, would you envisage other clubs/amalgamations building StrathAyr tracks to combat what seems like an increasingly wet NZ climate?
Excerpt from the Messara Review: “The single most effective lever available to reinvigorate the New Zealand thoroughbred industry is prizemoney; it rewards and supports owners, trainers, jockeys, stable hands, and the entire supply chain including breeders, vets, farriers, feed merchants etc.”
JM: Possibly, but this is something that must be considered on a case-by-case basis.
BdL: Does NZ have a future with tote betting and comingling? Could that happen with Hong Kong and other jurisdictions where bookmakers are banned and where NZ racing could be marketed overseas?
John Messara: …racing should increasingly be telecast offshore
JM: Yes, as the New Zealand industry gets its house in order, its racing should increasingly be telecast offshore. Showcasing your racing in this way will not only generate incremental wagering revenue but also potentially draw new investors to your industry.
Finally, two further excerpts from the 5-year-old Messara Review:
“I am confident that with strong leadership, and the support and commitment of all sectors, organisations and participants, the industry can be turned around and achieve sustainability with consequential favourable impacts on the New Zealand economy. I emphasise the integrated nature of the recommendations.
“Based on a review of the state of racing in New Zealand and on experience with the Australian Racing Industry, it appears obvious that the industry is in need of an overhaul. The racing and wagering functions of the NZRB should again be separated, with all racing regulatory functions devolving to the three Codes and the NZRB being renamed and solely responsible for wagering on racing and sports, as well as the conduct of approved gaming within its venues and the broadcast of racing vision.”
Racing Minister Winston Peters came to the party on that one. The legislation that followed in the Racing Act of 2020 provided for the Codes to draw up a commercial agreement and take it to TAB NZ (as per the above paragraph) with Racing NZ in place to arbitrate on the devolvement of the regulatory functions down to the codes.
It never happened. The Codes proved themselves incapable of getting together and acting in the best interests of its stakeholders. Why didn’t they do it? Did they even read the legislation, or if they did, did they understand it? There’s no excuse, but there’s also no accountability either, apparently.
The End
Brian de Lore