SOUTH AFRICA RACING INTO THE FUTURE

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SOUTH AFRICARACING INTO THE FUTURE
Cindy
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SOUTH AFRICA
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THE NHA Racing

• First Race Meeting held 1804
• Jockey Club Founded in Port Elizabeth in 1882
• Jockey Club moved to Johannesburg in 1904

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THE NHA Structure of Board

• 7 Directors elected regionally by members
• 4 Directors appointed by
• - Gold Circle
• - Phumelela
• - Breeders
• - Owners
• Chief Executive
• 2 Co-opted to achieve transformation

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THE NHA Regulatory System

• the maintenance and operation of the General
  Stud Book
• the licensing and/or registration of all
  relevant participants in the sport
• the formulation and revision of the rules of
  the sport and of breeding
• the monitoring of training and the regulation
  of racing

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THE NHA Regulatory System

• (Continued)
• the operation of a laboratory to discourage the
  use of prohibited substances
• the operation of an effective disciplinary and
  appeals system
• the recording and publication of all relevant
  data on the sport
• the handicapping of horses.

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Racing Operators Racecourses

• Phumelela
• - Turffontein
• - Newmarket
• - Vaal
• - Bloemfontein
• - Kimberley
• - Arlington
• - Fairview

• Gold Circle
• - Greyville
• - Clairwood
• - Scottsville
• - Kenilworth
• - Durbanville

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CONSOLIDATION
CONSOLIDATION
BROADCASTING
TRANSPORT
TRAINING CENTRES
7 TOTES
13 RACE CLUBS

Racing division Betting division Management
Racing division Betting division Management

• Tellytrack
• International
• Saftote
• Publishing

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SOUTH AFRICAN PROVINCES
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NEW BUSINESS MODEL
Growth
INCOME
Stabilised
Sustainable profitability
Restructured / reduced
COST
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IMPORTATION OF NEW PRODUCTS
Benefits of imported simulcast

• Increased interest in racing
• Increased turnover
• Continuity
• Reduced risk
• Better asset utilisation

UK
USA
FRANCE
HONG KONG
DUBAI
KENYA
ZIMBABWE
MAURITIUS
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EXPORT OF SA RACING
Benefits of exported simulcast of South African
racing

• Income
• Larger pools
• Development of expertise and experience

UK
USA
ASIA
EUROPE
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UK RACETRACKS
(Super Tracks in bold/gold)
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INTERNATIONAL SIMULCAST
International Broadcasting
USA, UK, Russia, Belgium, France, Kenya, Ghana,
Italy, Spain, Germany, Tasmania, Austria,
Mauritius and Zimbabwe
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DUBAI
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INTERNATIONAL SIMULCASTING CHALLENGES

• Total service provision
• Commingling
• Regulatory / tax issues
• Risk assessment
• Exchange control risks
• Piracy / betting exchanges

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GLOBALISATION OF RACING
?

• Where do you stand?

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RACING STATISTICS

• Season Ended 31 July 2004
• 12 Racecourses
• 436 Race Meetings
• 3 965 Races
• 176 Trainers
• 125 Jockeys
• 6 190 Horses in Training
• 41 840 Starters
• R179 088 335 Stakes Paid

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RACING STATISTICS

• Betting Turnover
• 30 April 2005 - R6,610 Bn
• 30 April 2004 - R5,739 Bn
• 30 April 2003 - R5,619 Bn
• 30 April 2002 - R4,926 Bn

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BREEDING STATISTICS

• Season Ended 31 July 2004
• 491 Breeders
• 106 Stallions
• 4 272 Broodmares
• 2 950 Foals (Estimated)

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National Yearling Sales
2003 2004 2005
Lots Sold 428 457 477
Aggregate Value 63 835 000 89 745 00 40,58 105 140 000 17,15
Average Price 149 147 196 379 31,67 220 419 12,24
Highest Price 1 700 000 2 000 000 17,64 3 300 000 65