Never a truer word was ever said.
Tatts sure did back a winner with the Queensland Wagering Agreement.
And the racing industry in the state is the sucker who has to pay.
This is the first in a series of articles I’ll be publishing over the next week showing you exactly how Queensland Racing has been sold down the river and how badly we’ve been rorted and ripped off.
I’ll be putting numbers to the value of the scam so you can see it in black and white.
Where are the paid racing writers for the mainstream media when it comes to telling you these hugely important details about exactly how much this wagering deal is going to rip out of racing? Why aren’t they all over it like reporters with half a brain and bit of ticker should be?
I reckon by now that we both know the answer to that.
Here’s part 1 of the Great Rock n’ Roll Tattsbet ripoff.
The 80% trick and the missing $100 million I call it.
So Tatts put out a media release boasting that they will be paying an indexed $15 million product fee directly to the racing industry over the life of the agreement.
Nathan Exelby. the fearless reporter for the Courier-Mail who is Queensland’s most read racing writer, runs with it and published a gushing but totally tall tale about how great the deal is for the Queensland racing industry,
He tells the industry and the world that racing is getting $15 million a year indexed to CPI (inflation) annually.
Nathan Exelby’s either a raving moron who doesn’t have the basic skills required to perform his job competently, or alternatively he’s acting in the role of Tatts in the pocket brown nose ;little PR spin bullsh*t boy.
I don’t know which one it is. I don’t know Exelby. You can be the judge.
What I do know though is that for whatever reason it might be. there is one really, really important little detail that Nathan Exelby’s mislead everyone about.
The $15 million isn’t indexed to CPI at all.
We find this out when Tatts lodge an advice with the Stock Exchange (the ASX) on the same day Exelby’s story hits the press. You can’t lie to the regulator like you can to newspaper readers, because you could go to jail if you did.
The $15 million isn’t indexed to the cost of living.
It’s indexed to 80% of the cost of living.
That 20% shave makes a massive difference, an absolute world of difference.
In fact it makes almost $100 million dollars worth of difference.
$100 million dollars that the racing industry is being robbed, and is never going to see.
This is what $15 million a year pays over 30 years when it’s indexed to inflation.
The Racing Industry would receive $830 547 904.00.
With the inflation-increased value of the dollar taken into account it works out at a tick under $27.9 million a year in adjusted dollar terms.
Now here’s the conman’s trick.
When you only index the $15 million to 80% of the inflation rate the money loses it’s value pretty quickly as the cost of living compounds and erodes its worth.
Over the course of the 30 year wagering agreement the racing industry is only going to receive $735 073 308.00.
We’ve just been robbed of $95.47 million dollars.
Nice stooge isn’t it?
Who were the genius’s that cut this deal?
I’ll show it you a different way.
By the last year of the wagering agreement the $15 million annual payment from Tatts to the racing industry would be worth $43.4 million a year if inflation was applied at the going rate.
But by only indexing the money to 80% of the real interest rate the fifteen million is only worth $35.16 million when we reach the last year of the wagering agreement.
We’ve been had big time punters.
Like I said, who were the genius’s who negotiated this deal?
I’ll tell you tomorrow.
Good luck on the punt.