Sanan Elaborates on Collapse of Industy Initiative

[Kasept]

Satish Sanan spoke recently to Tom Lamarra of Bloodhorse and detailed the frustrations behind the collapse of the TOBA Steering Committee's Industry-wide Initiative. Sanan had been foreshadowingthe multi-point plan on ATR for nearly a year, trying to drive home the features and benefits of the program. It seemed to be very close to a positive outcome until about 6 weeks ago...

News Feature: Frying Plan - By Tom LaMarra

I urge people to read Lamarra's feature to gain an understanding of the challenges involved in getting meaningful progress against the industry's areas of opportunity...

(And below are the key elements of the plan Sanan was forwarding..)

Synopsis of Sanan’s Plan

Structure: Create a company with racetracks and other members that would generate revenue for functions related to marketing, technology, wagering, and product improvement.

Solution: Create an industry consortium of like-minded industry organizations that would retain autonomy but work in unison; develop an industry-owned end-to-end integrated, interactive wagering network technology platform; create a weekly televised racing series utilizing graded stakes; form an industry-wide strategic marketing plan to complement local and regional efforts.

Funding: Establish three levels of annual dues-payers; generate revenue from restructuring of the racing product and operation of an advance deposit wagering system and platform that could accommodate new wagers and interactive games; raise “seed capital” that would be refunded with interest after seven years.

Revenue distribution: Based on annual revenue of $200 million to $250 million a year, 70%, or $140 million to $175 million, would be split equally between racetracks and purses; 20%, or $40 million to $50 million, would be used for the wagering platform, marketing, integrity, equine health and welfare, and facility improvements; and 10% ($20 million to $25 million) would be earmarked for ontrack cash-back programs (effectively a reduction in pari-mutuel takeout) to drive ontrack attendance and wagering.