Friday, July 23, 2010

Only In Racing

As most know, The CHRB raised takeout in January at Los Alamitos (for what reason I am not sure). Horseplayers all but deserted it. Handle since the increase is off over 27%. Despite those dire numbers, yesterday the California horse racing board voted to continue the raise in takeout experiment at Los Alamitos, instead of doing the obvious, and killing it.

It appears that the loss of almost one third of one's business has no effect on the people who run this sport. Horseplayers Association of North America President Jeff Platt who presented at the meeting:

"I can tell you from talking with some of the industry participants present at today's meeting that the significant loss in handle doesn't matter to them."

It got me thinking. Things you have never heard in business history.

"Our sales of Big Mac's dropped by 30% since we raised that damn price this winter. Let's continue it" Ray Kroc

"30% of our money went poof since we started asking for a pint of blood with every purchase. It's a good policy. Long live Wal-Mart." Sam Walton

"That pesky Wordperfect. 30% of our MS Word sales are gone to them. I ask the Microsoft board to do nothing." Bill Gates

"We shall maintain the status quo. Hula hoops are here to stay. To hell with the 30% loss of sales" Mattel

I dunno. I am at a loss. Almost a third of business wiped out and these people vote to continue it.

I hope other tracks try and grab CA's slice. With the thinking that permeates in California there is a severe opportunity to grab some business from them. If they are that oblivious to takeout hikes and the damage they do, their main thoroughbred tracks are probably going to follow and raise take sometime in the near future. Horseplayers will leave and they will want a place to play. Kudos to whichever track does the right thing and lures them aboard with low takeout and big, competitive fields.

1 comment:

ITP said...

"Only in racing" describes the latest entry in VFTRG's blog.

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