Presentation on theme: "THE RACING ASSOCIATION To protect and support the interests of racehorse owners."— Presentation transcript:
THE RACING ASSOCIATION To protect and support the interests of racehorse owners
THE BACKGROUND The Racing Association was incorporated in December 1997 following the signing of a Memorandum of Understanding between the Horseracing Industry in Gauteng and the Gauteng Provincial Government. The essence of the agreement, signed on 30 June 1997, was that the parties agreed to re-organise and restructure the business of the racing industry into a single corporate entity to be listed on the Johannesburg Stock Exchange as soon as practically possible. The new company would have a broad base of shareholders with specific emphasis on previously disadvantaged communities.
Transformation Initiatives 1) Credit Sale for Black Empowerment Groups (BEGs) 2) Young Achievers 3) Women’s Day 4) Racecourse Tours for Black Owners and Punters 5) Trilogy Racing 6) New Racecourse Project 7) Transkei – Berlin Racecourse 8) Introduction of Black owners to horseracing 9) Groom’s Soccer Field
1) Credit Sale for Black Empowerment Groups (BEGs) In 2002, with the listing of Phumelela Gaming and Leisure Limited, the Racing Association provided funding to several BEGs in a credit arrangement. The credit arrangement has been the single biggest transformation initiative of the RA. The credit sale involved the provision of funding to enable the BEGs to acquire a substantial number of shares with a minimal outlay and favourable repayment terms. The beneficiaries of the credit sale included the following BEGs: - Dihla Investment Holdings (Pty) Ltd - Gride Investments (Pty) Ltd - Indyebo Investments (Pty) Ltd - Vela Phumelela Investments (Pty) Ltd
3 of the BEGs are still holders of Phumelela shares which have appreciated by an average of 200% year on year since 2002. This has proven to be a very successful initiative. The companies that still hold Phumelela shares are Gride Investments, Dihla Investment Holdings, and Vela Phumelela Investments. The initial financial benefit for the credit sale arrangement was approximately R9 million, excluding the positive effects of the repayment terms.
2) Young Achievers The Young Achievers day was developed as a way to introduce the youth (aged 18-25) to the sport of horseracing. The initiative was started in 2009, where 600 young achievers from all demographics were invited to, and entertained at, the Turffontein race course. The major draw card was that each young achiever was entered into a draw to own a 5% share in a racehorse. The winners of a 5% share in the racehorse were made up of the following ethnicities: 5 Black Africans, 2 Indians, and 12 Whites, with the final share being retained by the RA for control purposes. All associated fees for the horse are covered by the RA. The next event is scheduled to take place in April 2011. Thus far, the RA has contributed over R70 000 to this cause.
3) Women’s Day This initiative was started in 2010, with the first event being held for women’s day (09 August 2010) on Sunday 08 August 2010 at the Turffontein racecourse. The RA treated 300 Black African women from the ANC women’s league, from Rhema church, and from SAFA to a fantastic day of horse racing, hosted in the Elevation room. The event is to be held annually in recognition of the contribution of women, especially the previously disadvantaged, to our society as well as to promote horseracing as a tool for transformation. The total cost of the project was between R55 000 – R65 000.
4) Racecourse Tours In recognition of the role of Black Africans in the horse racing industry, the RA marketing committee decided to introduce racecourse tours for Black owners and punters. The tours take place on a race day where a director of the RA takes the owners and punters through the various activities happening behind the scenes to give them a better understanding of the sport. The tour gives the owners and punters a chance to meet with other owners, punters, trainers, and other industry personnel. The owners and punters are also catered for in the RA member’s facility.
5) Trilogy Racing Trilogy Racing was a syndicate set up by the RA in 2006 in an effort to introduce Black African owners to the sport of horseracing. The syndicate was made up of 8 Black African members with ownership in 3 racehorses, worth R1 million. All of the costs of ownership, in excess of R15 000 per month, were covered by the RA. The initiative proved successful in that 4 of the 8 owners are currently owners in their own right.
6) New Racecourse Project The RA is currently investigating the opportunity of opening a new racecourse in the North, in conjunction with a developer. The RA has made it clear that any initiative being supported by the RA regarding a new racecourse would need to include a transformation and/or skills improvement initiative. The project is set to include either a low-cost housing project, and/or accommodation for staff, and/or a grooms academy facility. The investigations and plans are proceeding well with the final draft expected in 2011.
7) Berlin Racecourse Project – Transkei The RA was approached by the community of Berlin, in the Transkei, to assist in the development of a racecourse in late 2008. To date, the RA has contributed a significant amount of time and expertise to the project. The project is in it’s infancy with the Environmental impact and feasibility studies being conducted. Meetings with local government are also being held to ensure the project meets with local strategy. The RA’s objective is to make sure that the project is sustainable to ensure that long-term jobs are created and that skills can be broadened which will uplift the community.
8) Introduction of Black African Owners Over the past 4 years, the RA’s marketing committee has been involved introducing new Black African owners to horseracing. In total, approximately 40 new owners have been introduced. The initiative involved inviting and entertaining Black Africans at race days, with the emphasis on transferring racing knowledge and enthusiasm for the sport. Tours of the racing facilities and various behind the scenes functions were also conducted. The social nature of horseracing proved to be an important tool for introducing new Black African owners as the setting is conducive to the conduction of business as well as entertainment.
9) Groom’s Soccer Field The RA have started fundraising for a groom’s soccer field which will be built at the Vaal racecourse. The RA felt that the isolated nature of the Vaal racecourse provided little opportunity for grooms to partake in activities outside of their daily jobs and thus decided to start a fund to provide a soccer field for them. The groom’s soccer fund has raised R30 000 thus far, and will require a further R70 000 to reach the required R100 000 needed to build the soccer field. The RA is planning several fund raising events for early 2011 in a bid to begin the building of the soccer field by mid 2011.
Commitment to Transformation The RA will continue to drive its own transformation strategy as well as support any industry initiatives that are in line with the RA’s goals. Creating an environment of equality and equal opportunity for Black Africans in horse racing remains a key focus for the RA. The concept of Africanisation has been and remains an important topic discussed at RA board meetings, the outcome of which have been the many initiatives outlined in this presentation.