Racing Economy

[Robert Goren]

For all those who have posted recently what great shape racing is in, here are the numbers for May and the year to date.

Equibase reported total May handle of $1,163,454,383, compared with $1,261,814,872 a year ago. Purses fell 4.35% to $95,983,896 from $100,348,921 the previous year. Total race days in May were 509, down 9.6% from the 563 in May 2010.
For the year to date, U.S. total wagering is down 8.12% to $4,639,320,277 ($5,049,378,245 in 2010), but purses are up 2.33% to total $385,543,651. The total race days have declined 5.19% through May.

Read more: http://www.bloodhorse.com/horse-raci...#ixzz1OKCIQJwx
Some of the most telling numbers are in the year to date. Handle down, purses up. I guess that blows the argument that higher purses bring more handle that horsemen like to use right out of the water.

[onefast99]

Originally Posted by Robert Goren

For all those who have posted recently what great shape racing is in, here are the numbers for May and the year to date.
Read more: http://www.bloodhorse.com/horse-raci...#ixzz1OKCIQJwx
Some of the most telling numbers are in the year to date. Handle down, purses up. I guess that blows the argument that higher purses bring more handle that horsemen like to use right out of the water.

Race days have declined over 5% in May do the math. If you really want to get into some of the probable causes of gambling in general being down look no further than gas prices.

[Robert Goren]

Blame everything but the product.

[Kelso]

Originally Posted by onefast99

Race days have declined over 5% in May do the math..

And handle has declined even more. YOU do the math. (But since purses are still UP ... perhaps you're not interested in that reality.)

[davew]

in 2010 May had 5 Saturdays and 5 Sundays
in 2011 May had 4 Saturdays and 5 Sundays

[Robert Goren]

There can be some disagreement over what the May numbers mean or don't mean, but it is very hard to put the year-to-date numbers in a good light. Does anyone really expect June's handle numbers to be up or for that matter, even close to even?

[Not4Love]

Gas prices? You mean the stuff those 40% trainers are using?? GAS IS NOT THE PROBLEM HERE.

[RaceBookJoe]

Does anyone know how the racing economy is doing in other countries such as Japan and Australia? rbj

[onefast99]

Originally Posted by Kelso

And handle has declined even more. YOU do the math. (But since purses are still UP ... perhaps you're not interested in that reality.)

You are correct the economy has nothing to do with it. Isn't reality another thing you boycott?

[DJofSD]

Robert, thanks for posting those numbers.

It would be interesting to have an annual report for the industry as a whole, just as if it was a publicly held corporation. YTD numbers, year over year, month over month, etc., are good to have but being able to really understand the state of the industry, I believe a more rigorous approach to the reporting and analysis is needed. Put it on the same footing as any other mature corporation, see how it is doing in the current business cycle, be able to compare it to other companies in the same sector, etc., would be an eye opener.

[Robert Goren]

From what I have been able to gather form watching CNBC that the numbers for most publicly companies the first quarter are up over last year. That is mostly due to the fact that last year was a really bad year. What the gas excuse is saying that for horse racing last year was better time from an over all economic sense for people to bet on horse racing. I am not sure I quite ready to buy that argument without some numbers.

[jdhanover]

I'm a management consultant and we hear these types of arguments a lot. They are NEVER black & white.
A few points:
1. One month of data does not make a trend
2. Many variables can impact this including something as simple as weather (I believe that there was an unusual amount of bad weather in many parts of the country this year in May but I could be wrong)
3. Having said 1 & 2 there is little doubt racing is in 'decline. More competition for the available wagering dollars (casinos, poker etc), economic times (lowering the amount of the population are willing to wager) though not related to gas prices directly, and the generally poor job by the industry when it comes to marketing etc is hurting the game. Without the younger generation getting interested, handle will continue to go down.
4. I have felt for a long time that the lack of coordination amongst tracks nationally negatively impacts handle including:
a. races not timed well so 4 go off within a minutes of each other then nothing for 17 minutes
b. racing dates and post times so that there are a decent number of tracks (but not too many which spreads the horse population too thin) each day/night

But the industry will likely never get its act together given the track owners cant see beyond their own world. Only way it might is if there are a couple of corporations (with good mgmt) end up buying all the tracks but I don't see that happening soon either

[Kelso]

Originally Posted by onefast99

You are correct the economy has nothing to do with it. Isn't reality another thing you boycott?

What's with you childish horsemen and falsely attributing comments to those whose arguments you find it impossible to rationally refute? I wrote nothing about the economy and, aside from your lame allusion to gas prices, neither did you. Give it up, horseman ... you're fooling nobody.

As to reality, you clearly aren't able to identify it even when it bites you squarely in your wallet. You attribute it to everything but its true causes ... your own greed, ignorance and managerial incompetence.

[onefast99]

Originally Posted by Kelso

What's with you childish horsemen and falsely attributing comments to those whose arguments you find it impossible to rationally refute? I wrote nothing about the economy and, aside from your lame allusion to gas prices, neither did you. Give it up, horseman ... you're fooling nobody.

As to reality, you clearly aren't able to identify it even when it bites you squarely in your wallet. You attribute it to everything but its true causes ... your own greed, ignorance and managerial incompetence.

What's in your wallet clown? Boycott receipts?

[onefast99]

Originally Posted by Robert Goren

From what I have been able to gather form watching CNBC that the numbers for most publicly companies the first quarter are up over last year. That is mostly due to the fact that last year was a really bad year. What the gas excuse is saying that for horse racing last year was better time from an over all economic sense for people to bet on horse racing. I am not sure I quite ready to buy that argument without some numbers.

Please turn the volume up the next time you watch CNBC, you will be enlightened.