View Full Version : Fred Pope on Rachel/Zenyatta and a Broken Business Model!
andymays
09-02-2009, 07:46 AM
Paulick Report Blog Archive RACHEL V. ZENYATTA: THEATRE OF THE ABSURD
By Fred A. Pope
http://www.paulickreport.com/blog/rachel-v-zenyatta-theatre-of-the-absurd/
Excerpt:
Inside the Box Thinking
You are about to read a outrageous proposal for how the owners of the star attractions, Jess Jackson and Jerry Moss, can focus the sporting world on Thoroughbred racing and deliver the Filly Race of the Century.
When you do a Situation Analysis on racing today, you come to the painful conclusion that the host event gets nothing from off-track wagering on its product and nothing from the television networks for its product. Since the basic objective of providing the owners of the racehorses with a valuable purse, the strategy becomes crystal clear:
If you can make 20% from the wagers made on-track, but only 2% from the wagers made off-track, then you need to see how you can maximize the on-track wagers.
No off-track wagering and No televised coverage
Sheer madness? Maybe not, it seems to work for the NFL when they haven’t sold out a studium.
http://www.paulickreport.com/blog/rachel-v-zenyatta-theatre-of-the-absurd/
This is a must read article for everyone!
ryesteve
09-02-2009, 09:46 AM
Sheer madness? Maybe not, it seems to work for the NFL when they haven’t sold out a studiumWorks for whom? I don't think this rule motivates fans to buy lousy tickets to watch a lousy team. But it does motivate the network to buy up the remaining tickets so they can broadcast and get the ad revenue.
Steve R
09-02-2009, 10:13 AM
80,000 fans at the track to watch Rachel Alexandra vs Zenyatta? I'm guessing that if you're not into the game in a big way you may have heard of Rachel Alexandra because of all the publicity she's gotten. Your next question would be - who is Zenyatta?
DeanT
09-02-2009, 10:13 AM
http://www.paulickreport.com/blog/rachel-v-zenyatta-theatre-of-the-absurd/
You are about to read a outrageous proposal
For the big event, the fillies’ owners would agree the race would have no set purse amount, but instead they would get 100% of the takeout from on-track wagers on the race. In effect, the racehorse owners take the risks.
By locking out all off-track wagering and televised coverage, if we can get a crowd of 80,000 and drive the on-track handle to $20 million, the takeout for the purse would be $4 million gross. If we paid back to 6th place, there is a huge incentive for the owners of other good fillies to enter the race and drive the handle higher.
Apparently 80,000 people are going to go watch a horse race live, and when all internet and offtrack wagering is prohibited, they will bet $20,000,000 on the race at 20% takeouts.
$4M will be made and the business will be fixed.
Let's roll!
miesque
09-02-2009, 10:17 AM
I especially liked the part of about banning cell phones and computers at the track. :rolleyes:
andymays
09-02-2009, 10:53 AM
The guy might be off but reading the article clues a lot of people in about the Business Model problem. No?
I put the same thing up earlier in General Racing Discussion.
Hello Miesque! :)
Robert Goren
09-02-2009, 11:12 AM
If I had to go my track to make a bet, I'd stay home and not bet. I have not been to a track that treats its patrons with one iota of respect. And further more it not like you can't get a bet down on an NFL game. I am also sure that you could have bet on any race run in 1938 without going to the track! I knew a bookie who horse racing bets before the days of simulcasting and ADWs.
PaceAdvantage
09-02-2009, 11:25 AM
Two similar threads on this subject have been merged.
turfnsport
09-02-2009, 11:26 AM
Whatever Pope is on, I want some.
11cashcall
09-02-2009, 01:56 PM
Guess his Bank stop giving out calendars.
Horseplayersbet.com
09-02-2009, 03:17 PM
How about banning all lotteries and shutting down all casinos in the country forcing those who want to bet to bet at a racetrack?
Think of all the money the industry will make. And without competition they can raise takeout to 35%, and then it won't matter that ADWs get a piece of the action. :lol:
Charli125
09-02-2009, 03:37 PM
If I had to go my track to make a bet, I'd stay home and not bet. I have not been to a track that treats its patrons with one iota of respect. And further more it not like you can't get a bet down on an NFL game. I am also sure that you could have bet on any race run in 1938 without going to the track! I knew a bookie who horse racing bets before the days of simulcasting and ADWs.
That was my exact argument to my state officials when complaining. They suggested I go to the track to make my bets. I replied with, "If I can't bet on the Internet, I'm not betting at all. My handle goes to zero."
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