A dot of bother!

Ascot racecourse made the headlines for all the wrong reasons in many of the Sunday Newspapers after sticking a small orange dot on racegoers who had not got the new dress code quite right for the premier enclosure. Thankfully; they acted quickly to squash this with a full refund to all those attendees of the premier enclosure.

Personally speaking I have no issues with any dress code, I actually like looking smart when I go racing. Although I must admit I never go in winter, mainly because I prefer flat racing to jumps and I tend to go on a spur of the moment if the weather is warm and sunny. My biggest problem is the cost of getting in the courses in the first place, especially the smaller courses like my local (Leicester). For tomorrow’s fixture starts at £12:00 a ticket to me that is just too much for the quality of racing.

The Theme Park Way

I believe the smaller courses like Leicester would increase revenue if they adopted a slightly different approach. I notice that most theme parks offer season pass tickets. Leicester with 6 National Hunt meetings, I think they would be better off offering a NH season pass for say £25.00 for all 6 meetings. This makes the entrance just over £4.00 (if your go all 6 meetings), but at the end of day, plenty would buy the ticket and not go to all meetings.

I would have a guess that Leicester doesnt attract more than 300 paying guests in January & February, it’s overall average attendance for the year is around 1,800 and with plenty of meetings during the summer months, I think that will ramp the overall average.

Following the revamp of the course Towcester offered free admission, although they have introduce a £10 charge on selected meetings. I remember speaking with Kevin Ackerman about the increase in numbers attending the meetings compared to when they charged admission fee’s. He said they had well over 100% increase in attendances since going free and that they had to introduce an entrance fee on Boxing Day & Easter Sunday because the course was bursting at the seems for those days.

I met Kevin before the my very first trading workshop which I held at Towcester back in 2009 and he told me that the course turnover was expected to exceed £2 million that year, but it was the increase corporate activities that paid dividends.

In Summary

It seems that racing goes from one PR disaster to another and they need to get the balance right between people who want to go racing for the love of the sport and those who want to go for the love of drink.

All About Timing!

Centaur Group went into liquidation last week and I certainly feel for the employees who have losted their jobs in tough times and I hope that the investors money was ring-fenced.

The Centaur Academy had a plush trading room in London and I guess there overheads wouldn’t be cheap. If you have large overheads, they need to be covered and I couldn’t believe my eyes that they was charging around £1000 for a football trading course. I guess they was targeting the financial district that are used to paying £1000′s for financial trading workshops.

I charge £120 for my football trading workshops (a few places left for my only one scheduled in 2012), I actually think the information that give out is worth more, but I only look to cover the potential trading profits I would get on a Saturday if filling the day.

Secure you place on 28th January workshop

Why did the business model fail?

I have puzzled quite a bit over the weekend on why this business model failed, it certainly wasnt down to the experts that Centaur recruited as the put together a group of very sharp minds. The knowledge and the skillset was all in-place to exploit the markets from a trading perpectus for the investment fund.

As for the education side at their city offices, I think that was bad timing. My question is why open up expensive offices to teach people how to trade when you can do remotely through online education in a more cost effective way.

In recent years Betfair has been recruiting European based punters, many of which don’t no anything about UK horse racing and the well of novice traders has certainly dried up in the racing markets. It’s not the gold rush of a decade ago!

I would guess the decline in liquidity of the racing markets and interest in general would have left a few trading stations empty on a daily basis as more and more professional traders turned to football, tennis & cricket.

In Summary

I feel sad that this venture didn’t work out, because to me sports based trading is a far better investment opportunity than anything linked to the financial or stock markets. Centaur had a dream, they wanted to make art of sports trading  have the same recognition as the stock market trading.

However; most sports traders (myself included) come from a punting (gambling) background and I just feel this venture was big odds against punt from the start.

If you would like to get into sports trading you can join my mentroing program at Pro X Trading

Ladbrokes in talks with Betdaq

News broke on twitter late Sunday night that Ladbrokes was in talks with Betdaq over a deal to improve the bookmakers online technology, but they have denied they’re looking to buy the betting exchange.

You can read the full story at ‘The Telegraph’

In recent months ‘The Magic Sign’ have been linked to all kinds of take-over bids and although they’re saying they want to use the principles of pricing and trading skills. I wouldn’t be surprised at top level if a takeover hadn’t been discussed.

In this post I want talk what if’s?

What If:  Ladbrokes with their betting shop estate was able to be integrated into the betting exchange model, this could result huge volumes of liquidity to flow through the morning racing markets.

Given that since Betfair introduced Bet Matching the liquidity in the morning racing markets has been reduced to a few acorns and the odd button. Of course I dont know the legal issues that may arise from such an integration into a shop estate, but if it was possible to do, it could be a big stake in the heart of Betfair.

I can’t get the money that I would like into the racing markets during the early morning like I could 5 years ago! Technically thats not true, I should say it takes longer than it did.

What If: Ladbrokes put their Brand, marketing budget and database behind a betting exchange model and used betting terminals or the TV’s to educated punters in the shops how to use the betting exchange option. Take the following:

‘Old Joe’, who knows his onions on Snooker is limited because of his success rate. Now ‘Old Joe’ is not that PC Savvy, he is old shool cash punter, imagine instead of being limited, through the exchange in the shops this money can be offered to those online adding liquidity to the markets.

Everybody would be a winner! ‘Old Joe’ can get the money he wants down at the price he wants, Ladbrokes can use ‘Old Joe’s’ bets for trading principles (instead of turning shrewd cash punters away, they can embrace them). Online traders will have the liquidity in the markets if they choose. I would guess that most betting shops up and down the country have an ‘Old Joe’ type of punter!

What If: Ladbrokes offered a flat rate of commission and no premium charge to the key players on Betfair to migrate over their betting exchange. This is interesting as Betfair have been biting the hand that has fed them for years, for most (I am talking about bigger fish than myself here) there is no real alternative for the big players.

Betdaq just haven’t got the clout to get things moving in the way they should, even with the amount of PR disasters that Betfair have had over the past 18 months. But what if they had muscle of somebody like Ladbrokes behind them. This industry needs another serious player to challenge Betfair, so us mere mortal exchange punters have a choice in getting a better deal.

In Summary

At the end of the day; I far too removed from the corporate world to know what is actually going, and the comments above might be a touch idealistic. Betfair created a level playing field for all punters to pit their wits against, its just a shame the winning punters always kick up hill and against wind when they’re playing against Betfair themselves!