Holders of The Everest’s 12 slots stand to make a tidy sum
It’s billionaires at the ready for The Everest race at Sydney’s Randwick, with the slot holders ranging from stockbrokers to Middle East royalty.
It’s millionaires and billionaires at the ready for The Everest race at Sydney’s Randwick, with the 12 slot holders – who choose which horse will race in their spot on the day and take a significant cut of the winnings – range from stockbrokers to Middle East royalty.
Slot holders include Dubai’s ruler Mohammed bin Rashid Al Maktoum, through the billionaire’s Godolphin stables. Hong Kong billionaires Tony Fung and Boniface Ho, as well as mainland China billionaire Yuesheng Zhang.
Famous racing names in Australia such as trainer Chris Waller, for John Messara’s Arrowfield, and Ireland-born Sydney based bloodstock agent James Harron, as well as gambling giants TAB and The Star also own slots, as did the now-disgraced Damion Flower, who lost his slot after being jailed for importing cocaine.
Electrician and part-owner in two-time Everest winner Redzel, Damien Yates, is very happy billionaires are buying slots to keep the money rolling in.
“It’s a great concept,” Yates says. “Racing is a hobby and we go in it to have fun and we need the billionaires to keep the race afloat.”
The jury is out on whether buying a slot is a good investment. The first slots in the $15m race sold for $600,000 each back 2017 but have traded above $1m in the secondary market.
Slot holder Max Whitby, who made his first fortune trading futures and owns prop trading firm Propex, certainly believes it’s a good bet.
“It’s very valuable already,” says Whitby, who shares a slot with Neil Werrett of Black Caviar fame.
“If the prize money goes up to $20m, well you can just take that straight to the bank.”
As it stands the $15m prize money pool starts at $6.2m for the winner and ranges down to the bottom seven horses which each earn $443,750, while the equine and jockey welfare funds receive $187,500 combined.
“If the prize money goes up you get your $600,000 back,” says Whitby. “Even at $443,750 it’s close to breaking even.”
The deal between slot holders and horse owners for share of the prize money is usually secret and is individually negotiated but Whitby is happy to say he splits the winnings 50/50 with the horse owners.
His slot has won an estimated $6.7m – shared with the horse owners – since the inaugural race in 2017, so it’s perhaps no surprise Whitby likes the investment.
He says that owning a slot doesn’t give him a say in how the horse should run on the day.
“I don’t tell trainers how to train a horse and they don’t tell me how to buy BHP,” Whitby said with a laugh.
John Messara, whose Arrowfield Stud shares a slot with The Star, and also started his career as stockbroker, thinks it’s too early to tell whether the investment will pay off.
“It’s too soon to know,” says Messara. “Slot holders have different reasons for wanting them, whether it’s to be “in the game” or to qualify one of their own horses for the race.”
The slot concept was first introduced in the USA through a race known as The Pegasus.
Racing NSW took that idea and improved it by getting three-year commitments from slot holders, early notice of intention to renew or otherwise enabling the replacement of slot holders where necessary.
“Of course, a very significant purse has helped,” says Messara. “Under these circumstances it has worked well here where it failed in the US.”
Messara says he hasn’t considered yet whether it works well enough for him to buy the other half of his slot from The Star, should it become available. Star Entertainment has been reviewing its business strategy after being found unfit to operate its Sydney casino.
Racing NSW chairman Russell Balding says there is always “overwhelming interest” in any slot that becomes available.
“The slot holder concept has added to the intrigue and drama of the race,” says Balding, who believes The Everest is now “the pinnacle event” of Australian racing.
“It has generated unprecedented growth in public interest, particularly with the younger demographic,” Balding says.
Beauty is in the eye of the beholder of course. Whether the Sydney-based race now tops famous rivals such as Victoria’s Cox Plate, Caulfield Cup, or Melbourne Cup depends who is asked.
Whitby has won the best of the Victorian races including the Cox Plate with Savabeel but he agrees that NSW has “put on a big dance” to take the highlight to the northern state over its southern rival.
“It’s a great race concept and shows that money speaks more than tradition,” Whitby says.
Certainly the prize money from The Everest day dwarfs that of Caulfield Cup day, and in two weeks time at least on a prize money-level, the Golden Eagle day at Sydney’s Rosehill will outshadow Derby Day at Flemington – traditionally the most prestigious day of racing on the Australian calendar.
“This time of the year was always essentially Victoria’s, and NSW has marched into that space,” says Messara.
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