TAB funding fears allayed
National bodies believe outsourcing would not compromise their betting proceeds which topped $10m last year
The impact on national sports organisations should TAB operations be outsourced overseas may not be as grim as initially feared. A recommendation in the independent review into New Zealand’s racing industry, conducted by Australian racing guru John Messara, suggested shipping TAB operations offshore would help reverse the industry’s decline.
Fears arose over the move’s impact on the money national sports bodies receive from the TAB.
That comes from a percentage of bets placed by Kiwi punters on New Zealand-based sports and overseas competitions such as the NBA, English Premier League and Major League Baseball.
However, the report makes no reference to the current agreement that sees 34 codes receive funding, and Basketball New Zealand chief executive Iain Potter said his impression was that would not change.
“The report says it would be business as usual,” Potter said. “I’ll really just take that at face value.”
New Zealand Football reiterated Potter’s belief that their annual funding from the TAB would not be impacted should Messara’s recommendation go ahead.
Sport New Zealand was still processing the review and declined to comment.
The Messara Report made 17 significant recommendations on where the racing industry could improve their operations, including outsourcing the TAB.
Under Messara’s recommendation, the New Zealand Racing Board would remain the TAB licence-holder but would contract “all operational activities to a third-party wagering and media operator of international scale”.
New Zealand Rugby League chief executive Greg Peters said TAB funding was vital for the sport in this country and the organisation would pay close attention to decisions arising from the Messara Report.
“We’re adopting a watching brief on outcomes of the TAB review and once we know these, we can assess from there,” he said.
In the past five years, the TAB has pumped more than $32.2 million into the country’s basketball, football, tennis, cricket, rugby and league operations alone.
In the NZRB’s last financial year — from August 1, 2017 to July 31 this year — the TAB supported 34 New Zealand national sports bodies to the tune of around $10 million.
Basketball was the biggest benefactor, receiving $2 million in funding, while rugby, league, football and tennis all received more than $1 million. Cricket saw $700,000, with more than $2 million shared among the other codes.
While there seemed little concern at losing vital TAB funding, Potter said Messara’s report was focused on the three racing codes, and without a sporting representative on the NZRB, the best interests of sports may be overlooked.
The NZRB comprises six people, including three independent members, as well as nominees from the greyhound, thoroughbred and harness racing codes.
Potter suggested adding a sporting representative was essential.
“We need to be at the table to make sure that we’re part of any of the conversations that go on,” said Potter.
“I’m not saying ‘we’, as in Basketball New Zealand, I’m saying ‘we’, as in a representative of the sporting sector.
“It neglects a fundamental sector. At the moment, we’re like an appendage; an unrepresented appendage.”