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Sep 14, 2010

Don't Piss on Sanan and Tell Him It's Raining

“But if we didn’t allow the bullies to play, they’d find our spot about 20 minutes beforehand and piss in the holes,” Sanan said. “To some degree, that’s the kind of crap that goes on in this business.”

Who doesn't like this guy now? Satish Sanan, my new favorite guy in racing.  It appears the plan is dead for trying to do too much, that's code for saying the plan is dead for trying to fix everything at once whereas these asshats in charge would rather continue to take their cut and go home and screw everyone else. 

So, it sounds like it was too much of a takeover for the group at large and no one would really take the first step, understandable, but not excusable.  My advice for Mr Sanan would be to back up and try and get everyone on the same page up to the point of contention: owning an ADW.

My solution would be to create a clearing house for signals.  An LLC would own the exclusive rights of all the racing:  betting and televising.  And, from there you could increase revenue and affect structure.  Think of it as TVG on steroids, but w/o the wagering platform.  Think of it as all the good stuff that Mr Sanan had done without the thing that held it all back.  Instead of competing and creating ADW's the LLC would control the price of the signal.  We all know that the ADW's get it for too cheap and that the racetracks charge to high a price.  So, as fans I think we could assume takeout to be lowered (and that would be a good start for any process to get the fans on your side).

The new hang up would be to convince Twinspires or Youbet to pay for the Churchill signal more than they are currently paying, however, that extra money would come back to them because they'd be part owner of what they were selling to.

Thoughts?

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9 comments:

Steve Zorn said...

Churchill is not in the business of sharing. They're a gambling company that happens, at least for now, to have a few racetracks attached. The notion that they'd put racing's overall welfare foremost is ludicrous.

And, on information and belief, those who've had direct dealings with Mr. Sanan might not share all your enthusiasm.

Anonymous said...

See 1997 NTRA business plan. You would have loved it as it was right on the money but MEC and CDI swooped in and wrecked it all.

Cangamble said...

It sounds so good but in reality if the tracks did what you state, takeout will not go down. Sanan only mentions takeout as an afterthought. He really doesn't think that it is an issue.
Anyone who doesn't know it is the number one issue needed to be addressed to grow the game, needs to shut up.
The reason I believe takeout will not go down is by looking at what happened in Canada. HPI basically has a monopoly, yet Woodbine has very high takeouts (with slots too), and on top of that they take a cut off the winning ticket if the bet was made on a low takeout wager.

Handride said...

@Steve Zorn - I've heard rumblings of the same, but I don't know him personally, in this case you have to applaud the effort, something (although maybe a bit pushy/jerky) is better than nothing

@anonymous - they had it right 12 years ago, only another 15 till they realize they had it right.

@cangamble - There would be a way for takeout to go down. You're right, i shouldn't have said it would, but there's a way. But the attitude taht takeout is the end all be all isn't getting anyone anywhere.

Cangamble said...

Nothing is going to grow the game until the price of the bet goes way down.
All other solutions are band aid at best.
I'll say it again, for horse racing to grow and be in a position to be marketed for what it is (gambling), take out must be lowered across the board. Whether that statement gets us anywhere is up to the industry collectively.

Anonymous said...

"An LLC would own the exclusive rights of all the racing: betting and televising."

Tell me why this isn't a monopoly and how it can pass muster with the Feds?

Handride said...

@anonymous - fair point, and I was really hoping for a different outcome in the American Needle case. Nonetheless I believe it could pass muster w/ federal help. it could also pass if not every track did it, or maybe it's legal, i'm no lawyer.

Horse Racing Megasite said...

nice blog...keep the good work... :)

Thoroughbred Analytics said...

your blog is realy nice. thought to myself, I had risk this hand by trying to get a lower badugi or let the hand ride out and hope that I am the only one with badug.


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