It’s the last profit hit that executives at Australia’s two major wagering companies, Tabcorp and UNiTAB, would have seen coming. In the last few years, thoroughbred racing meetings have abandoned for all sorts of reasons — rain, weather, drought, a bitter broadcasting dispute and, most famously and most damaging, the equine influenza outbreak of 2007.
But race meetings abandoned across the country after wildcat jockey strike, and all over a piece of padded leather on a stick? You’d want odds of 1000 to 1.
But that is exactly what happened yesterday after thoroughbred racing’s ruling body, the Australian Racing Board rejected a demand from jockeys that the sports controversial new whip rules be changed.
Much to the relief of Tabcorp, UNiTAB and bookmakers around the country, race meetings — including big spring carnival lead-up meetings in Melbourne and Sydney — will go ahead this weekend, but the jockeys are threatening an indefinite strike next week if they don’t get what they want.
For the wagering companies, this is no laughing matter. For Tabcorp and Tattersall’s, every single interruption to the racing program means a drop in revenue.
Figures produced by Tabcorp during the equine influenza outbreak show that total wagering turnover in a typical late September week in 2006 was running at $165 million. If we assume the figures have increased by about 10% since then, then weekly wagering turnover is probably around $180 million.
Given about 62% of all money wagered on racing is bet on thoroughbred racing, then it’s reasonable to assume that if a week of horse racing was lost, Tabcorp’s wagering turnover would fall by up to $110 million. Given Tabcorp’s pre-tax profit margin on wagering is around 2.5%, that could mean a hit of over $2.5 million to Tabcorp’s bottom line. And that’s just Tabcorp — UNiTAB, Betfair and the small army of bookies around Australia will lose out too.
It’s difficult to see where the dispute will go from here. The ARB has promised to review the rule in February, but has ruled out immediate changes. For their part, the jockeys are talking tough.
However, the riders may find their support base is being quickly eroded. While the owners, trainers and breeders are clearly unimpressed with the whip rule as it stands, they are likely to be even more upset at the prospect that the rich spring races on which the industry is based may not go ahead.
Already prominent owner Lloyd Williams — who has several horses aimed at the Melbourne Cup and Cox Plate — has signalled his displeasure, saying that while he agrees with the jockeys’ position he does not agree with their strike action.
“They are in a private enterprise sector and withdrawing their services is not something I agree with,” he said yesterday.
“I think it’s pretty simple. I think we put apprentices on our horses and we think carefully about these jockeys in the future.”
That’s a pretty idle threat — few owners of Melbourne Cup starters will want to put a young, inexperienced apprentice on their horse just to prove a point to a champion jockey who took part in the strike.
But for the moment, it’s not quite clear who holds the whip hand in this fight.
“They are in a private enterprise sector and withdrawing their services is not something I agree with,” he said yesterday.” Believe in democracy do you mate? What a ????I’d love a dollar for every boss who screws his workers in all enterprise systems, private and otherwise! Go and get a real job!
I’m not interested in anti-union horse owners, who are wealthy and don’t have to worry about their safety etc. Lloyd whats his name is of no interest to me, nor are the jockeys really – silver tail; probably thinks manual labour is a mexican boxer?? I’m not supportive of animal cruelty of any kind. Has anyone thought to ask the horses how they feel about this? I heard via ABC PM last evening, that the practice overseas is similar or even better than this new rule, and there’s been no problems. Please don’t insist that the horses like it, or some such rubbish? I’ve always found it strange, that these horses cost hundreds of thousands, millions even; cost more money to train and care for, and then they’re whipped so they’re motivated to run faster? Doesn’t make any sense, and all this so other people can make more millions? Weird!Can’t it be done through training? Doesn’t say much about the intellect or ability of the trainers or jockeys.
Why the whip?
Frankly, the argument of the jockeys that they can’t ride and count at the same time???(will cause accidents they said???) only reinforces the fact, that men(most jockeys are men, or at least the one who made this statement was) can’t do more than one task at a time, whereas women can cook the dinner, answer the phone, have a load of washing on, listen to the homework (for three kids?) and have the vacuum cleaner in operation – all at the same time! Poor fellas!