Waikato winning the key to economic growth

The role of competitive sport bringing money to the Waikato cannot be doubted say two of Waikato’s biggest sporting insiders, but the flow of cash relies on Waikato winning.

Rugby, Racing and Beer

Chiefs CEO Gary Dawson and New Zealand Bloodstock Limited’s Petrea Vela were speaking at the fourth University of Waikato Winter Lecture Series ‘Rugby, Racing and Beer’ and said the financial contribution of sport to the region was huge, but was based on Waikato out-performing other regions.

Sporting success, or the lack of it, was one of the factors identified by Mr Dawson as to the Chiefs poor ticket sales this year.

Chiefs Franchise

In 2011 the franchise found it difficult to pay the bills. Yearly the Chiefs pay their players $3.5m, and contribute a further $3.6m holding and running matches. A quarter of their income is built on ticket sales, the lack of sales making their current business model unsustainable long term.

Mr Dawson identified five factors that resulted in poor ticket sales in 2011; poor team performance, weather, ticket cost, the price of food and drink and fans having family commitments. In 2011 the Chiefs were plagued with an under-performing team and a steady stream of rain during home games.

“We can control two of those; ticket costs and the costs of food and beverages.” Improving team performance was harder to manage says Mr Dawson.

Waikato Thoroughbreds

Petrea Vela Managing Director Sales & Marketing from New Zealand Bloodstock Ltd said Waikato was renowned world-wide for breeding quality thoroughbreds, but needed to continue being a giant-killer to keep the money coming in.

“Waikato breeds very, very good horses not only from a New Zealand perspective but a world-wide perspective. New Zealand horses have won 29 of the last 50 Melbourne Cups, 19 of those from the Waikato.

“Everything that happens on the racetrack has an impact on everything that happens in the paddocks and the sale yard,” and consequently the local economy said Ms Vela.

A 2009 report into the racing industry found that 52,000 people across the country are employed either full or part-time with $172m of wages and salary coming to the Waikato region. The same report said the racing industry and flow over effects add $1.6b to the New Zealand GDP.

August 31 - Sport or Spectacle?

The next and final lecture in the Winter Lecture Series is called ‘Sport or Spectacle?’ and features Olympic gold medalist Rob Waddell, Sarah Nathan from Hamilton Gardens Arts Festival and FUEL Festival alongside Wayne Walford from the Waikato Chamber of Commerce. It will be held Wednesday August 31. Find out more about this lecture.