RACING DISTRIBUTION OF T.A.B. PROFITS

Press, Volume CIV, Issue 30846, 3 September 1965, Page 4

RACING DISTRIBUTION OF T.A.B. PROFITS

Both Codes Approve Of Permanent Change (New, Zealand Press Association) WELLINGTON. Totalisator Agency Board profits from this season will be distributed on a new basis. Profits will be divided into two pools, one for galloping and one for trotting, and a fixed percentage of each pool distributed to all clubs equally, with the rest distributed on a basis of combined on and off-course turn-over.

Galloping and trotting representatives on the board and the Minister of Internal Affairs (Mr Seath) have agreed that the new method shall be permanent.

Mr G. H. Grigg, chairman of the board and president of the Racing Conference, has outlined the distribution of profits to racing and trotting clubs. In the last three years there had been three different methods provided by the scheme for totalisator agencies under which the board was able to distribute profits, said Mr Grigg. They were: on the basis of oncourse turnover: on the basis of off-course turnover; and on the basis of combined on and off-course turnover. As well as this, the board was empowered to set aside and allot equally to all clubs, a proportion of the profit. In each of the last 12 years the board’s profit had been apportioned with 15 per cent divided equally between all racing and trotting clubs and the balance of 85 per cent to the clubs on the basis of their combined on-course and offcourse turnover.

This method had consistently favoured trotting clubs, with the result that the board members representing racing were prepared this year to alter the method of allocation to arrive at what seemed to be a fairer basis. This had met with opposition from board members representing trotting clubs, said Mr Grigg. “The board comprises four members representing racing clubs and four members representing trotting clubs,” said Mr Grigg. “The chairmanship alternates annually between racing and trotting, with the chairman possessing a deliberative and casting vote.

. “This means that any method of profit distribution can be enforced by the code possessing control of the board through the exercise of the chairman’s casting vote. “This year, as chairman, I was prepared to use my casting vote to have a method of profit allocation which, in my opinion, would be fair to both sports. Trotting members of

the board indicated that next year they could reverse this method. Fluctuating Amounts “The position then arose that racing and trotting clubs would have been in the unenviable position of receiving excessively fluctuating amounts annually from the board, with the result that any future budgeting on their part could become farcial. “In order to explore every avenue to enable a consistent method of profit allocation to be maintained, the racing members on the board have held discussions with the trotting members. These discussions have resulted in a method that is acceptable to both codes. “Board members have resolved unanimously that application be made to the Minister of Internal Affairs to change the scheme for totalisator agencies to permit only one method of profit distribution in future. “This provides for the annual profit of the board to be divided into two pools, namely, ‘the racing fund’ and 'the trotting fund,’ based on the combined total of on-course and off-course turnover for racing clubs and trotting clubs respectively. “From these pools it will be permissible to allot equally a proportion of the pool concerned to the clubs in the relative code, and the remainder of that pool on the basis that the oncourse plus off-course turnover for each such club bears to the total on-course plus off-course turnover of all clubs in that code. “The Minister of Internal Affairs has given his approval

to the change and this year will be the first under which this method of profit allocation is being used,” said Mr Grigg. “It has been decided by the board that the equal amount to be distributed this year from each pool to clubs comprising that pool be 15 per cent. “The total amount to be received by each club will be announced after the annual meeting of the board which will be held in Wellington on October 22. Mr A. J. Nicoll, vice-chairman of the board and president of the Trotting Conference, has also commented on the new method of distribution. “Members representing trotting and racing on the board, for some while have been endeavouring to find a method of allocation of the board’s profits that would be acceptable to both codes,’’ he said. “Unanimity has now been reached on a proposal to divide these profits into two funds based on the combined oncourse and off-course turnover of each code. Equal Percentage “From the trotting fund It is permissible to allot an equal percentage to each trotting club before the balance is distributed in the proportions of each trotting club’s on-course plus offcourse turnover. “This year the board has decided that 15 per cent, of the trotting fund be distributed equally to the 47 trotting clubs. “Trotting members on the board have agreed to this decision as it not only provides a fair distribution of the board’s profit between trotting and racing, but also ensures that all trotting clubs can continue to receive from the board a fixed proportion of its profits as has been the case over the last 12 years.

“This will be of real assist ance to the many smaller trotting clubs,” he said.