PHUMELELA MEDIA RELEASE RE: STAKES.

Sorry to hear that Rob El Kap gave me my Biggest win in SA this time last year ?

Sorry to hear about your loss Rob he was a good honest guy

Never nice to loose a horse. Sorry rob.......Also not a nice way to end your association for the time being?

Thanks guys.
This RA joke is just no incentive to stay involved in ownership though.
This extra 1% of stake,entry fee....is this also going to the RA or directly to the stakes pot like elsewhere....OR is that confidential?

Some further inputs:

STAKES CALCULATION - 2011

PRODUCT CONTRIBUTION

Tote

Local R83 400 000

International R32 800 000

Soccer Six R 7 100 000

Bookmakers R10 700 000

Unclaimed dividends and fractions R 7 000 000

Limited Payout machines R 1 000 000

Gold Circle and International royalties R 9 300 000

Bettingworld R 2 000 000

Trust dividend R14 800 000

TOTAL R168 100 000

Less – Jockeys Riding Fees R11 000 000

Trainer Subsidies R 560 000

Jockey Academy R 3 300 000

AVAILABLE STAKES R153 240 000

The Chairman explained the stakes for the 2010 season amounted to R164 108 000

(2084 races) and the forthcoming 2011 season, stakes amounting to R165 500 000

(2096 races) was required. He said that the funds available in the stakes pot

amounted to R153 240 000 which resulted in a shortfall of R12 260 000 (7,4%). The

Chairman said that a meeting had been held between the Racing Association,

Phumelela and the Racing Trust and it had been agreed by the parties that it would

be in the interests of the industry to keep the stakes flat. It had therefore been

necessary to consider opportunities to make up the R12 260 000 shortfall.



Increased Nomination Fees (Minor Races) Nomination fees will be adjusted to

0,1% of the average stake per region (amounts including VAT)

- Highveld will increase from R48 to R78, an increase of 62% which will

contribute R616 000 towards stakes

- Eastern Cape will increase from R32 to R55, an increase of 72% which will

contribute R214 000 towards stakes

- Northern Cape will increase from R17 to R41 an increase of 141% which will

contribute R111 000 towards stakes.

The chairman said that nomination fees had not been increased since 2002.

The Chairman said that the entire amount of the increase would be paid into

the stakes pot.



Introduction of a declaration fee (Minor races) A declaration fee of 0,1% will be

introduced in all regions:

- Highveld declaration fees will contribute R660 000 towards stakes

- Eastern Cape declaration fees will contribute R201 000 towards stakes

- Northern Cape declaration fees will contribute R87 000 towards stakes

The Chairman said that the total funds collected from declaration fees would be

paid into the stakes pot

Increased nomination fees (feature races) Nomination fees will be adjusted

from 0,1% to 0,2% of the stake

- Highveld increase will contribute R430 000 towards stakes

- Eastern Cape will contribute R125 000 towards stakes

- Northern Cape will contribute R11 000 towards stakes

Increased declaration fees (feature races): Declaration fees will be adjusted

from 0,5% to 0,8%

- Highveld increase will contribute R777 000 towards stakes

- Eastern Cape increase will contribute R125 000 towards stakes

- Northern Cape increase will contribute R18 000 towards stakes

OFF SEASON STAKES REDUCTION

Stakes for the turf off season on the Highveld will be reduced by 10%. The off

season will run from May to August and will result in a contribution to the stakes of

R1 580 000.

FUNDS TO BE MADE AVAILABLE FOR SPLITTING RACES ON THE HIGHVELD

Applies to splitting races between January to July 2011

Decrease stakes from R80 000 to R70 000

Race Types No of Races Saving per Race Total Available

Maiden Plates 176 R10 000 R1 760 000

Mdn Juvenile Plates 53 R10 000 R 530 000

R2 290 000

Number of races that can be split = 33 over the period Jan to July 2011

10.4 RA BONUS RACES

The number of RA bonus races will be increased as follows:

Region 2010 2011

Highveld 20 38

Eastern Cape 8 16

Northern Cape 2 4

TOTAL 30 58

The monies paid towards the bonus races comes out of the contribution made by

the Horseracing Trust. These bonuses are paid only to members of the Racing

Association.

Will the Chairman update the meeting on the alleged fraud that occurred

with the Transvaal Trainers Benevolent Fund

The Chairman explained for members’ information that a portion of the

nomination fees is paid over to the Transvaal Trainers Benevolent Fund which

had been administered by Melanie du Plessis who reported to Mr Ferraris.

The trustees were Messrs O A Ferraris, I A Jayes, J Maree, B Warren and G

Bortz.

The Chairman said that during the year, Mr Ferraris had contacted him to

advise that an alleged fraud had taken place.

The alleged fraud was carried out by the former bookkeeper between 2007

and March 2010 by making out cheques to herself or to service providers for

her benefit.

The Trust requires 2 signatures for cheques to be honoured, the 2 appointed

signatories at the time of the alleged fraud were Mr Jayes and Mr Ferraris.

Due to the distance between signatories, it was common practice for Mr

Ferraris to take cheques to Mr Jayes at the Vaal for his signature for future

payments. The blank, signed cheques were returned to the former

bookkeeper to be completed as required; thereafter Mr Ferraris would sign as

the second signatory.

Apparently, in 2007, the bank began honouring cheques with only 1 signature.

10

The former bookkeeper was dismissed, and criminal charges have been laid

again her for fraud.

In response to a question, the Chairman confirmed that the amount in

question amounted to approximately R500 000. He could not confirm how the

trustees decided upon who should benefit from the fund.

The French have increased stakes by 3%

I have heard many people including trainers say that you own and race horses for "the love of it". That is bullshit in my opinion. It is like saying - if you like to fcuk then get married. I would like to treat owning racehorses and punting ,for that matter, like a business. If it is not profitable then get rid of of the business. The time has come when owners must realise that they cannot go on forever carrying the can and making losses. It is like investing R400 000.00 in a bank and getting R200 000.00 at the end of 5 years. The racing authorities must think that owners are cakes. They are the law. They are the untouchables. The "wheel of fortune is turning. They will see their a@#e.

It is the owners that pay the keep. It is the owners that keep the trainers in a job. It is the owners that keep the industry afloat ( otherwise we would have vitual racing). It is the owners that provide the horses that the punters can bet on. Of course, punters do have a huge say in the industry. But if for instance, there were no horseracing then there are other forms of gambling that punters would be attracted to.

My take in this matter is that the owners are being short-changed so that the "fatcats" can pocket more bonuses. As someones mentioned in this thread, you would not want to be owning horses now.

Morning east

imo have always regarded horseracing/owning as a hobby/pastime and not an investment, if I get a winner its a bonus.

If you think of the passion or the love, its just like the guy who has a box at Old Trafford or a season ticket at Chelsea, costs him a fortune and no financial return, in fact cant thing of any sport or passion giving you a return on your passion, unless you are playing.

In addition if you are going to own a horse we might not have perfect conditions but a maiden win can carry you for 6 months? In UK only one? Plus our purchase price is reasonable considering you might get an International star from our well bred and proven home products.

Could also do with a few more winners but that is racing!

Thanks Scotia.

Thats another angle to look at it. Point noted.

Eastexpo, I agree with you. I find it far more fun making money than losing it whether I'm punting or whether I do ever get to own a horse. I think the punter is in the pound seats, because we have choice. If I'm getting fed up with horse racing, I like to play online poker. If I owned box tickets for a team that looses all the time, I can't see the fun in that either.

When did owning horses become a business "investment?" Sure, maybe for the Ballydoyle boys and a handful of others at the top end, but anybody who ever went into horse ownership with the expectation (as opposed to the blind hope) of turning a profit must have had rocks for brains, I'm sorry to say. It has been likened to owning a yacht or keeping a mistress, although at least with a horse there is a possibility (small as it may be) that you'll make money out of it. For most people, owning racehorses should effectively be a hobby, one where you expect to pay money for the pleasure of it, and once in a while someone hits the jackpot - a la J J the Jet Plane. That's why we do it, in the rather forlorn hope that we'll crack the next big 'un. Expecting to make a profit is like buying a bunch of scratch cards and expecting to win. You obviously hope, but you are barking mad if you expect.

Interesting that the French have raised their stakes while the Brits have dropped theirs. But that's a debate for a different thread.

eastexpo you might make money punting but as an owner YOU WILL NOT MAKE MONEY...it is 200 percent true that you own horses for the love of the game and you should write off whatever your outlay is on horses and whatever you get back is a bonus...yes there are the odd exception if you crack a champion and sell it on but this is very rare indeed...look at the big owners who are successful businessmen they know they cant make money out of ownership but do it as a hobby and most for their bulging egos...sport of kings