Gold Circle Stakes.......Media Release

Further to the press statement issued by Gold Circle (Pty) Ltd on 30 August 2010, the Company hereby advises that prize money paid by it will be reduced by an effective 8% for all races in KwaZulu-Natal and the Western Cape as from 1 October in the following manner:-



Based on current levels for each division,



1) The percentage for the winner will be reduced from 62,5% to 61 %

2) The percentage for the 2nd horse will be reduced from 20% to 19%

3) The percentage for the 3rd horse will be reduced from 10% to 9,5%

4) The percentage for the 4th horse will be reduced from 5% to 2,5%

5) No stake will be paid for the 5th place, i.e from 2,5% to 0%



This arrangement has the effect of reducing stakes paid by 8% and advertised stakes for each race will be adjusted accordingly.



The Company further wishes to advise that the only exceptions to the above will be the Vodacom Durban July and the J&B Met, which races will retain their full stakes of R3-million and R2,5 million respectively.



In addition, the following will also apply from 1 October 2010:-



1) In the event of there being, for whatever reason, a race run with 6 or 7 runners, then only the 1st, 2nd and 3rd placed horses shall earn prize money in accordance with the above percentages.

2) In the event of there being, for whatever reason, a race run with 4 or 5 runners, then only the 1st and 2nd placed horses shall earn prize money in accordance with the above percentages.

3) In the event of there being, for whatever reason, a race run with 3 runners, then only the 1st placed horse shall earn prize money in accordance with the above percentage, although Gold Circle retains the right to abandon ANY race that, for whatever reasons, is reduced to 3 runners or less.



The local conditions governing racing in KwaZulu-Natal and the Western Cape will be changed to support this arrangement.



Lastly, notwithstanding the provisions of the National Fixtures Policy, Gold Circle will, until further notice, in the ordinary course of events apply a firm “no postponement policy”, subject to “key” races being rescheduled. In the event of a Feature meeting, the Company will apply the provisions of the National Fixtures Policy, which allows for postponement under certain conditions.



“Gold Circle regrets having to adopt these measures. Despite the serious trading downturn over the past two years, Gold Circle was able to fund losses incurred by retaining stakes at their previous levels but with little sight of relief in the short to medium term, the Company now has no option but to adjust stakes accordingly”, said Chief Operating Officer and Racing Director Graeme Hawkins.



“From 1 August 2004 to 31 July 2010, stakes paid by Gold Circle increased from R95,4 million to R139,1m but with turnover having decreased from R2,064 billion in 2008 to R1,920 billion for year-end 2010, the Board had no option but to adopt a turnover-linked stakes-formula going forward. It was agreed to allocate a stakes-pot for year end 2011 based on 6,5% of the prior year’s turnover and as a consequence we have R124,8 million available for stakes in the current financial year,” he added.



“In assessing how to introduce the required reduction, we agreed that to reduce fixtures/races, with the resultant loss of opportunity for horses and consequent further reduction in turnover, was not the way to go. Prize money will be under continuous review and it follows that once trading conditions improve, the stakes formula will deliver more to the stakes-pot.”







Further to the press statement issued by Gold Circle (Pty) Ltd on 30 August 2010, the Company hereby advises that prize money paid by it will be reduced by an effective 8% for all races in KwaZulu-Natal and the Western Cape as from 1 October in the following manner:-



Based on current levels for each division,



6) The percentage for the winner will be reduced from 62,5% to 61 %

7) The percentage for the 2nd horse will be reduced from 20% to 19%

The percentage for the 3rd horse will be reduced from 10% to 9,5%

9) The percentage for the 4th horse will be reduced from 5% to 2,5%

10) No stake will be paid for the 5th place, i.e from 2,5% to 0%



This arrangement has the effect of reducing stakes paid by 8% and advertised stakes for each race will be adjusted accordingly.



The Company further wishes to advise that the only exceptions to the above will be the Vodacom Durban July and the J&B Met, which races will retain their full stakes of R3-million and R2,5 million respectively.



In addition, the following will also apply from 1 October 2010:-



4) In the event of there being, for whatever reason, a race run with 6 or 7 runners, then only the 1st, 2nd and 3rd placed horses shall earn prize money in accordance with the above percentages.

5) In the event of there being, for whatever reason, a race run with 4 or 5 runners, then only the 1st and 2nd placed horses shall earn prize money in accordance with the above percentages.

6) In the event of there being, for whatever reason, a race run with 3 runners, then only the 1st placed horse shall earn prize money in accordance with the above percentage, although Gold Circle retains the right to abandon ANY race that, for whatever reasons, is reduced to 3 runners or less.



The local conditions governing racing in KwaZulu-Natal and the Western Cape will be changed to support this arrangement.



Lastly, notwithstanding the provisions of the National Fixtures Policy, Gold Circle will, until further notice, in the ordinary course of events apply a firm “no postponement policy”, subject to “key” races being rescheduled. In the event of a Feature meeting, the Company will apply the provisions of the National Fixtures Policy, which allows for postponement under certain conditions.



“Gold Circle regrets having to adopt these measures. Despite the serious trading downturn over the past two years, Gold Circle was able to fund losses incurred by retaining stakes at their previous levels but with little sight of relief in the short to medium term, the Company now has no option but to adjust stakes accordingly”, said Chief Operating Officer and Racing Director Graeme Hawkins.



“From 1 August 2004 to 31 July 2010, stakes paid by Gold Circle increased from R95,4 million to R139,1m but with turnover having decreased from R2,064 billion in 2008 to R1,920 billion for year-end 2010, the Board had no option but to adopt a turnover-linked stakes-formula going forward. It was agreed to allocate a stakes-pot for year end 2011 based on 6,5% of the prior year’s turnover and as a consequence we have R124,8 million available for stakes in the current financial year,” he added.



“In assessing how to introduce the required reduction, we agreed that to reduce fixtures/races, with the resultant loss of opportunity for horses and consequent further reduction in turnover, was not the way to go. Prize money will be under continuous review and it follows that once trading conditions improve, the stakes formula will deliver more to the stakes pot.”



ENDS









Gill Simpkins

“From 1 August 2004 to 31 July 2010, stakes paid by Gold Circle increased from R95,4 million to R139,1m but with turnover having decreased from R2,064 billion in 2008 to R1,920 billion for year-end 2010, the Board had no option but to adopt a turnover-linked stakes-formula going forward. It was agreed to allocate a stakes-pot for year end 2011 based on 6,5% of the prior year’s turnover and as a consequence we have R124,8 million available for stakes in the current financial year,” he added.

Do the maths !!! Still no reason to decrease the stakes .

So who do we contact to declare that the 7% for jocks and trainers should also be reduced seeing that we only own 86% of all horses anyhow? If stakes are reduced so should their comm.

This is ridiculous. And will stick owners out. It's hard enough to break even in this game as it is, and this stakes reduction will only make the game even more expensive...

The end is nigh !

When you reach the end of your rope, tie a knot in it and hang on.
Thomas Jefferson

Terrible news for owners...
...as it is the stakes for races like the SA Guineas were too low already...
...actually as a punter only, races with big stakes create bigger interest, and hence make me want to bet more, increasing turnover...but now???

Fantastic logic there. The stakes break down adds up to 92%. If they can't even do junior school arithmetic then we can see why they are in the shyte. Really, who gets the missing 8% after every race? Julius Malema? Bugs Bunny?

correct Magic, the stakes should be decreased but the %'s should still add up to 100%.......what a bunch of muppets, unless they did it for illustration purposes.....still a bunch of muppets.

Wouldn't it be easier to tell us all the moon was made of blue cheese and that Julius Malema is actually good for the country?!?!?!?!?

Illustrate what, Tommy? That they have no idea what they are doing? Wow, what a revelation! I never knew.

frustration is all I feel....sheer F#$^&@ FRUSTRATION, and i don't even own a horse.

This is a symptom of the bigger problem, that this country faces....mismanagement & graft, disguised, and overlooked(swept under the carpet), for self enrichment.

Magic i have not laughed so hard for a while.

This is a national release and they mis-calculate by 19 million or assuming the original figures even rite.

100000 92000

62500 61000
20000 19000
10000 9500
5000 2500
2500 0

Maths rite just explained badly.

Winners check not dropping by 8% only fractional
2 nd neither
3 rd place 5%
4th place 50%
5th place 100%

Muppets, bugs bunny all fit .Mickey Mouse could do a better job.

Any good comic relief.

Not defending the decision, but the reduced percentages are not meant to add up to 100%? I think they meant to say that this is 92% of the previous stakes 'pot', so that means a 'saving' of 8%?