1. Sandown has a capacity in excess of 18500. There were 18621 there for the Whitbread meeting in 2015.
2. I'm not trying to persuade anyone that this is a good idea, just that there is plenty of financial justification. Do you think that retaining the KG at Kempton is worth the loss of up to £500M to racing?
3. How do you define this as being a 'huge long-term mistake?
Thanks Archie. I appreciate the direct response, but you won't be surprised that I'm pushing back again.
1. Yes, but still a 15% smaller capacity than Kempton, and when you have a full house at Sandown half those people have been queuing in their car for two hours for the last 3 miles of their journey. The capacity at Ascot is 70,000 for further comparison, and it's easily accessible. If this decision goes ahead what case could you possibly make for Sandown taking the fixture?
2. Racing isn't losing £500m. It's just not realising it. What will Kempton be worth in 2030 or 2050. Considerably more. £500m doesn't go very far. In fact it's not enough to include a re-build of the very tired stands at Sandown. Perhaps they'll sell off two or three more courses for that one? And how is another race course that's not needed at Newmarket in any way justification? The point is, I don't believe there is financial justification.
3. Read above. It is surely a mistake to sell off a prize asset when the justification for doing so just doesn't stack up.
Of course, as Bear points out, the reason for the decision is mis-management and the need to raise cash because of it. The messaging from JCE is nothing more than window dressing to hide this fact. What is being missed, with all the furor and strength of feeling about this announcement, is the competency of that organisation and whether it should be called into question. If so, given their status, then it's right to question their ability to make these decisions 'on behalf' of the rest of us. He misses the point completely about this being like any other business decision. It's not. They are run as not for profit with a very specific mandate. Where he's right is that business people are making the decision and treating it like any other. That's why there's no Option C. But the point is there easily can be an Option C, and there should be an option C. In fact Option C should actually be Option B. I'll explain..........
Lest we forget, JCE are run as not for profit for the good of racing (even if JCE seem to have forgotten themselves!), and in that case surely Kempton Park should be sold as an ongoing concern as a racecourse? How much is it worth in that case, probably 60%-80% of what they'll ultimately sell to Redrow for. But so what if it's as little as 40%? It won't be, but the bottom line is in their remit as an organisation, 'For the good of racing'. What Option B should have been is very simple. Kempton stays, they clear their debts from mis-management, they have more left over to reinvest, and the whole of racing doesn't lose Kempton. Isn't that the way it should work? Why does everyone seem to think that the only proposal they've made is the only option?
So using Grassy's phrase from earlier in the thread, who is it that's burying their head in the sand (not aimed directly at you Archie or Bear)? The truth is it's those people who have accepted JCE's proposals as the only option. Find me a a group of investors and, given Kempton's location, I guarantee I'd find it impossible to operate it at a loss and certainly at a profit just by applying business basics. Meanwhile the investors asset would continue to appreciate year on year. For example, I would love to take a look at their non-raceday revenues. I'd like to see their marketing spend and how it's been used. I'd like to see what events have taken place their in the last year. I'd like to see their meeting room rates and usage. I'd like to see how function rooms have been used. I'd like to see their buy rates and margins for catering and drinks. I'd like to see their strategic plan, their balance sheet, their directors payments. I can go on and on and on.
As I said I'm open to persuasion, but I still haven't heard a good argument that even comes close to convincing me this is a good idea. You're going to have to try harder, or at the very least pick some holes in my position. I doubt it's possible though if I'm honest as we're a week on now and nobody has found a killer reason for killing Kempton.
:lol:
