International Arabian Breeders Sweepstakes Task Force

1
International Arabian Breeders Sweepstakes Task
Force Report to the Sweepstakes Board of Truste
es
November 2005
2
The International Arabian Breeders Sweepstakes
was introduced by the International Arabian Horse
Association to promote the Arabian horse, elevate
its stature in the horse industry, provide a
financial incentive for the breeding of Arabian
horses, and broaden the income base of IAHA,
which is now AHA.
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GOVERNANCE
The Sweepstakes program is led by a Commission
established by the IAHA Board of Directors in
1985.

• The Commissions structure consists of
• Six members elected by the Board of Directors
  for three-year rotating terms in staggered
  years.
  
• No more than two members elected from a Region.
• The Treasurer completes the seven-member
  commission.

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HOW DOES SWEEPSTAKES WORK?

• Stallion owners nominate their sires into the
  program.
  
• Mares are bred to Nominated Sires and the
  resulting foals are nominated into the program as
  Breeding Entries.
  
• Breeding Entry nominations must be made by
  December 31 of the year the mare is bred.
  
• The resulting foal is eligible to win Sweepstakes
  Prize Money for life.

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HOW ARE WE DOING?
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SWEEPSTAKES ENROLLMENTALL CATEGORIES
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SWEEPSTAKES ENROLLMENTALL CATEGORIES
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SWEEPSTAKES ENROLLMENT BREEDING ENTRIES
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SWEEPSTAKES ENTRIES
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SWEEPSTAKES FUND BALANCE
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SWEEPSTAKES TRENDS
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EARNINGS VS. PAYOUTS
Note In the past 7 years, the Sweepstakes fund
has spent more than it has taken in by 3,595,000
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BREAKDOWN OF HORSE SHOW ENTRIES
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TIMELINE OF EVENTS
November 2004 - The challenge to address
Sweepstakes was issued. May 2005 The Sweepstake
s Commission met and developed their first
proposal and was asked by the Trustees to provide
additional information. August 2005 The Sweepst
akes Commission gave a presentation to the
Trustees their proposal was not accepted. The
Trustees outlined their objectives and priorities
and instructed the Commission to come back with a
new proposal using the Trustees
recommendations. September 2005 The Sweepstakes
Commission came back to the Trustees with a
revised proposal asking for an up or down vote on
the proposal. September 2005 The straw vote by
the Trustees was four in favor and 18 against the
Sweepstakes Commissions revised proposal.
October 2005 President Krause appoints a
Sweepstakes Task Force to incorporate the
Trustees recommendations into a new
comprehensive proposal.
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SWEEPSTAKES TASK FORCE

• The Sweepstakes Task Force members appointed
  are
  
• Dan Stevenson, Chair
• Jan Decker
• Dean Meier
• Susan Meyer
• Lance Walters
• Utilizing the priorities from the Trustees
  survey and the information provided through the
  hard work of the Sweepstakes Commission, the
  Task Force formulated a revised program.

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RESULTS OF TRUSTEE SURVEY
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RESULTS OF TRUSTEE SURVEY- CONTD
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OBJECTIVES

• Encourage the breeding and stimulate the
  marketability of Arabian, Half-Arabian and
  Anglo-Arabian horses for all levels of
  competition.
• Increase interest and participation in the
  Sweepstakes Program for everyone, from those who
  compete at the local level to those striving to
  breed a national champion.
• Create an all-inclusive Breeders Incentive that
  delivers a direct, continuing and significant
  return to participating breeders giving owners an
  incentive to nominate all horses into the
  Breeders Sweepstakes program.
• Reward Sweepstakes participants at our highest
  level of competitions.
  
• Ensure funds for future payouts and long-term
  validity.
  
• Make the program easily adjustable to best serve
  the needs of the membership.
  
• Utilize a standardized class list that makes it
  easy to identify, track and calculate payouts.
  
• Encourage breeding in each discipline.
• Encourage a limited class list providing local
  shows less overhead and exhibitors more time to
  enjoy the events.
  

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REVITALIZING THE PROGRAM

• Encourage breeders to realize a return on their
  investment by providing a breeders incentive of
  10 to the breeder/nominator and 5 to the
  nominated sire owner.
• Adjust payouts on an annual basis so that the
  fund will not pay out more than it takes in,
  ensuring the financial viability of the fund.
  
• Encourage breeders at all levels to nominate into
  the Sweepstakes program by paying out for points
  earned in designated Sweepstakes classes at all
  levels of AHA recognized competitive events
  (except Community Shows).
• Recognize the importance of amateurs by
  designating new amateur classes for payout at all
  levels of competitions.
  
• Create a flexible program which allows for future
  classes to be added in addition to larger amounts
  available for payouts to adjust for the demands
  of our membership and best serve our breeders.
• Reward Sweepstakes participants at all levels of
  competitions.
  

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DESIGNATED SWEEPSTAKES CLASSES FOR ALLOCATED
PAYOUT
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DESIGNATED SWEEPSTAKES CLASSES FOR ALLOCATED
PAYOUT-CONTD
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DESIGNATED SWEEPSTAKES CLASSES

• The proposed Sweepstakes classes were selected
  based on discussions the Task Force members had
  with both breeders and owners. In addition, these
  classes were also deemed as core breeding classes
  by the Sweepstakes Commission.
• With the flexibility of this proposal, additional
  classes may be added as funds are available.

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ALLOCATED PAYOUT PERCENTAGES

• 65 of payouts to Arabians - 35 to
  Half-Arabians/Anglo-Arabians in all National and
  Regional allocated money payout classes (based on
  approximate percentage of nomination into the
  Sweepstakes program) .
• National Approximately 20 of total collected
  funds for selected allocated money payout
  classes.
  
• U.S. 16 - 28 total classes
• 15 Arabian
• 13 Half-Arabian/Anglo-Arabian
• Canadian 3 - 16 total selected classes
• 9 Arabian
• 7 Half-Arabian/Anglo-Arabian
• Sport Horse 1 - 6 selected classes
• Regional Approximately 25 of total collected
  funds for selected allocated money payout
  classes.
  
• 18 regions 16 classes
• 9 Arabian
• 7 Half-Arabian/Anglo-Arabian

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ALLOCATED CLASS PERCENTAGES

• Of the total collected funds for selected
  allocated money payout classes, placings at the
  National and Regional levels will be paid
  accordingly
• 30     Champion   20     Reserve
  Champion      50    Top Ten or Top Five
  
•       
• The 50 payout for Top Ten will be divided
  equally among the remaining eight. For Top Five,
  payout will be divided equally among the
  remaining three.

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POINT PAYOUTS AT AHA RECOGNIZED EVENTS

• Points can be earned at all AHA recognized
  competitive events (except Community Shows) that
  hold designated Sweepstakes classes and rides.
  
• Approximately 55 of total collected funds will
  go to into this pool.
  
• Total points earned each year (need to determine
  beginning and ending date to earn points) in
  designated Sweepstakes classes and rides will be
  divided into this pool to arrive at a per
  point figure. Eligible Sweepstakes horses
  earning points in designated Sweepstakes classes
  will be paid at the end of the designated year.
• To ensure the stability of the fund and guarantee
  the highest dollar payout per point an annual
  enrollment payment of 100 is necessary to be
  paid ONLY the year competing for point prize
  money payouts.

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ESTIMATED 2006 PAYOUT
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PROPOSED ENROLLMENT FEE
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PAYOUTS TO ALLOCATED MONEY CLASSES
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PAYOUTS FOR POINTS
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SUMMARY COMPARISON
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BREEDERS INCENTIVE

• Breeders Incentive A Breeders Incentive is paid
  to the Breeding Entry Nominator, who is defined
  as the person nominating the Breeding Entry
  (original nominator), and to the current
  Nominated Sire owner.
• The nominator of the Breeding Entry will be
  awarded payback equal to 10 of the prize money
  awarded through points to the Breeding Entry at
  National and Regional Shows and points earned and
  paid at designated Sweepstakes classes and rides
  earned at AHA recognized competitions (except
  Community Shows). The Nominated Sire owner will
  continue to receive 5 of prize money awarded to
  the Breeding Entry as noted above. Payback will
  be calculated each calendar year and will be made
  annually as a lump sum within 60 days of receipt
  of all supporting records from appropriate
  governing organization of the years last event.
  Current AHA Membership is required in order to
  receive Sweepstakes payback.

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ADDITIONAL CONSIDERATIONS

• As participation increases and AHA returns the
  interest income to the Sweepstakes fund, money
  will be available to add classes, increase
  payouts and increase fund balance and interest
  income.
• With the exhibitors quest for qualification
  points and a standardized Sweepstakes class list,
  show management will adjust their show schedules
  to fewer classes which should encourage more
  participation (and points) in each class and
  provide more time for exhibitors to enjoy the
  show.

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CURRENT SWEEPSTAKES ENTRY EXTENSION

• HURRY, DONT MISS IT! INCENTIVE PRICING UNTIL
  MARCH 1, 2006
  
• Original Entry now 3,500.
• (this entry will be increased to 15,000 after
  the incentive pricing special)
  
• Nominated Sire discounted from 3,500 to 2,500.
• Non Arabian Nominated Sire discounted from 4,000
  to 3,000.
  
• Discounted Nominated Sire discounted from 2,500
  to 1,500.

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DEADLINE EXTENSION

• DONT WAIT AND MISS YOUR OPPORTUNITY!
• EXTENDING THE 2006 SWEEPSTAKES IN-UTERO FOAL
  DEADLINE TO MARCH 1, 2006