News Feature: Frying Plan - By Tom LaMarra

re: News Feature: Frying Plan - By Tom LaMarra

The_Knight_Sky racing — Tue, 14 Sep 2010 14:45:54 GMT

Cangamble wrote:

Any industry leader in the future has to tackle the takeout issue first before any other groundwork is laid to market the game.

Correct.

This is the major form of revenue for the sport and business. Let us not put the cart before the horse. Ideas for long-term incremental takeout reductions should be paramount to any solvent business plan for horse racing.

Parimutuel racing must revert to the the rates in the 1950's and 60's to create a self-sustaining horse racing model.

________________________

Cangamble wrote:

Horse racing is about gambling. It is funded by horseplayer's losses.

I'd like to modify that to:

It is funded by horseplayer's participation. Repeat participation is done by those with solvent bankrolls.

Lowering the takeout rates creates more winning players in the audience. The ones who will come back to participate again.

They are your core customers. Not the folks who visit the track and shell out $2 for parking, $3 for admission, $3 for a live program, another $3 for a simulcast program.

All that before the very first sip of a $6.25 for a bottle of Yuengling!

Overpricing every step of the way does not create repeat customers in what can be a very expensive outing at the racetrack for the newcomers.

New customers are entering the turnstiles every weekend. What are racing's marketing departments doing to educating and RETAINING a fraction of that new audience?

re: News Feature: Frying Plan - By Tom LaMarra

Bob Hope — Mon, 13 Sep 2010 22:46:19 GMT

This is a pitiful commentary but one we have lived with and will die with! Horse racing in this country, is the only living sport left with empirical delusion! Even golf, which is equally as old, has made great strides to survive through sound management practices but without changing the basic game! Horse racing is where great ideas come to die!

re: News Feature: Frying Plan - By Tom LaMarra

JerseyBoy — Mon, 13 Sep 2010 19:34:42 GMT

From my reading of the material the primary objective seems to be an increase in revenue. This is laudable but no one can make bettors gamble more, a fact which has resulted in racing being subsidized by other forms of gambling.

I wonder what will happen when all tracks are equipped with other forms of gambling or states end the subsidy as NJ wants to do.

There is a solution that is within the control of the industry. It is known as lowering costs, all costs.

This was not addressed directly.

One writer has said that governments should help. But why would governments help an industry in which some stud fees are twice the median income.?

Cut the costs. I am a bettor but there is nothing the industry can do to get me to bet more. In fact, I have been betting less because the quality of racing is deteriorating. This Fall even Belmont Park is looking like a minor circuit. But the Prix de l'Arc is only three weeks away, so all is not lost

re: News Feature: Frying Plan - By Tom LaMarra

GOODLUCKWITHTHAT — Mon, 13 Sep 2010 18:00:06 GMT

The fact that Mr. Sanan's plan was shelved is the least surprising bit of news I've come across lately. The idea required the powers that be to actually DO something instead of attending conferences. The problem with thoroughbred racing and breeding is that these enterprises are run by old conservative men with old conservative ideas. I've trained thoroughbreds, owned them, bred them, bought and sold racing and breeding stock. Overall, I was successful and now I'm completely OUT of the business. I'm not paying one more dime in horse bills EVER unless there are significant changes in this industry, starting at the top. Don't hold your breath.

re: News Feature: Frying Plan - By Tom LaMarra

fb0252 — Sun, 12 Sep 2010 17:33:51 GMT

congrats for the concept! and the work! seems a tremendous idea. an incremental approach perhaps.

re: News Feature: Frying Plan - By Tom LaMarra

NJTrotter — Sun, 12 Sep 2010 16:31:37 GMT

Einstein said it best, "You can not solve a problem with the same thinking that created the problem." This is what we (the horse players)are dealing with. Our way of thinking is very simple. All we're looking for is full fields and less take-out. The powers that be don't understand this.

For all the intelligence and financial resources these men have, you sometimes wonder how they accumulated their wealth. When it comes to making horse racing decisions they all of a sudden become very stupid. The bottom line is no one wants to "share" anything. It all comes down to self interests. And when it's all said and done the self -served will triumph again - as usual.

re: News Feature: Frying Plan - By Tom LaMarra

Nancy — Sun, 12 Sep 2010 16:31:34 GMT

Hmmm, I'm not surprised at the negative developments - it all depends on whose ox is being gored. One needs to only look at the 'leadership' of this country for several decades now - to wit - Congress and the Presidency whose mantra has also been 'change', but there is no change, because the powers that be want their privileges and power more than they want to see the entire society (substitute horse racing here) enjoy life and economic security within a true a true democracy as envisioned by the founding fathers. So, extrapolate the nations ills to that of the ills of horse racing and you pretty much have the same situation. NYRA should be the last entity knocking Sanan's plan as they have brought catastrophy to New York racing. Shame on all who are not supportive.

re: News Feature: Frying Plan - By Tom LaMarra

mac — Sun, 12 Sep 2010 13:55:50 GMT

The product is so diluted that there are few races worthy to gamble on. Also, new players don't really understand Lasix, adjunct, CO2 milkshakes or cobra venom.

re: News Feature: Frying Plan - By Tom LaMarra

Cangamble — Sat, 11 Sep 2010 12:14:45 GMT

Satish is a horse owner who loses money consistently. He is simply a gambler when it comes to horse racing, a bad gambler. Just because one was successful in another line of work doesn't mean that they have a clue about how to fix the horse racing business (eg Frank Stronach).

Satish fails to understand that the biggest problem horse racing has is monstrous takeout which prevents growth and actually is the reason for the downturn in handle and interest by the general public.

Any industry leader in the future has to tackle the takeout issue first before any other groundwork is laid to market the game.

It is all about gambling, and Satish and Stronach have no idea when it comes to who the customer is and what the customer wants.

When it comes to Satish, and I've heard him in countless interviews, he rambles on as if horse racing can be on par with NFL or NASCAR as an entertainment vehicle. He looks at takeout as an afterthought. No clue.

Horse racing is about gambling. It is funded by horseplayer's losses.

In order for horse racing to grow, it needs to attract more gamblers who will lose more money collectively.

Stop pretending it is something else.

re: News Feature: Frying Plan - By Tom LaMarra

SimplyNotSureRU — Sat, 11 Sep 2010 09:22:09 GMT

It is obvious that the current models are flawed and failing. The only ones who refuse to see it are those with the powers to change it. Nothing will change this dinosaur until at least 50% of the tracks close. It might even take 75% befor the rest actually bend with the changing times and demographics.

Or they can continue to raise take-out and breakage and offer smaller and smaller fields until they all die. I actually watched a 3 horse race this week where the longshot ML was 3-2 and it got scratched. The other two were odds on at the start because the take/break reduced the wagers to 70% and it was split pretty evenly between both horses.

California expects their 4 and 5 horse fields to provide a windfall from exotics now that they have raised the take-out to almost 25%... Good luck with that. I don't even download Cali race info anymore. Not worth the trouble for odds-on exacta payoffs. LoL

re: News Feature: Frying Plan - By Tom LaMarra

David — Fri, 10 Sep 2010 00:04:10 GMT

Somewhere in Mr. Sanan’s ideas is the notion of creating new revenue instead of simply redefining what you already have; in short, racing needs to stop treading water and begin to grow.

Selling a pari-mutuel, racing model takes three component parts: data, video and a wagering mechanism. The racing’s industry’s lone success in any sort of significant collaboration surrounds data; quite simply, Equibase works. The video is like every other aspect – a helter-skelter, patchwork of moving parts. The wagering component, as we know, is a similar but different platforms conducted by the various players in the game. Rights in re-selling arrangements for data, video and wagering are extended under a single Agreement. The result has relegated what is known as account wager, aka ADW to an exercise of cannibalizing current demand into other means of distribution yet to contribute the first incremental revenue dollar.

The idea of an industry-wagering hub won’t work. It won’t vet the Fed test. Why not separate the video and wagering rights and distribute on parallel paths? Why not get out of company-owned stores and let franchisees do the end-user selling? As is, the diverse cast of players will never totally accept a model that has the tracks wearing the wagering hat; the reason deals with the dysfunctional pricing the industry holds on to like Linus’ blanket.

If the video were handled like the data, licensed sell-through agents could then expedite wagering. But, instead of turning over the entire working margins to a disinterested party, this independent agent would generate a profit based on commissions paid against volume handled. Requisite horsemen approvals would remain in place and decisions regarding rebating would be in the hands of host track (and horsemen).

My model won’t happen for many of the same reasons Mr. Sanan’s ideas will never see the light of day. When racing could have pulled off such a deal it was infected with the notion racing was and should be a parochial sport, a sort of states’ right thing that had best practice as that done within each legal state. Now, the game is merely the gateway to something that makes real money and no one willing to risk any control over the leverage it still has.

Sad.