It’s certainly no secret that racing is fraught with a number of critical challenges at the moment. However, Racing and Sports is confident that it can plot a path to a successful future for the sport.
The ability to make the right decisions at the most crucial time is often key to ensure a smooth and successful future, and with the expertise of David Zeffman added as a Non-Executive Director, the company firmly believes that it is on the right track.
Speaking to SBC News, Zeffman and Jack Kelliher, Commercial Director of UK and Europe, look into what this will mean for the company, the commercial potential of racing and what this signals about the future.
How to ensure the correct fit?
Zeffman, Kelliher says, brings a true sense of pedigree and knowledge that presents a real opportunity for Racing and Sports to reach the next level.
The business confirms that since launching on the Australian ASX, the UK part of the business has shown such a significant growth trajectory to now comprise around 35% of its overall make up.
Given this trajectory Co-Founder and CEO Stephen and Gary Crispe became keen to address a lack of representation on the board from a UK point of view, given consciousness of this trajectory.
“As the UK business became a stronger part of the portfolio, it was important that we did seek the right representation to help us make the right strategic decisions,” Kelliher begins.
“Going back around 12 months and the guys coming over to Royal Ascot provided an opportune moment to sound David out on the potential to be a part of and support the business.
“As part of our strategic plans for the future, it’s important that we have representation of the right people and the correct complementing skill sets to the other board members. David fits that bill. His background is immense.”
Racing and Sports notes that Zeffman’s expertise across the sector, when combined with his extensive networks across these sectors, will be invaluable as they work to deliver world-class data and content solutions to a range of global clients.
With an overarching ambition of growing its presence in the Northern Hemisphere Zeffman is highly praised as a natural fit based on who he has worked for in his career and where they are looking to go as a business.
Kelliher continues: “As we look to perhaps make acquisitions and look to grow more globally outside of Australia, UK and Sri Lanka, David’s got a proven track record of doing this not only within the CMS business, but also supporting whether that be global rights holders, media partners and worldwide names in helping set the commercial and legal framework to execute on the strategic plans.
“It’s super exciting for me in the UK in a commercial role to have someone of David’s pedigree having a say, and giving guidance and direction to what we’re trying to achieve.”
An act of serendipity
The pathway to Racing and Sports began a number of years ago at Royal Ascot in an act that is likened to a large slice of good fortune.
Following a series of meetings, an intention to step down as a partner at CMS earlier in the year, and a desire to continue within the field, a natural progression came to pass.
“In terms of what I can bring, I’ve been working in horse racing and betting for about 25 years, so I do have a good insight into how it’s quite a complex industry with lots of stakeholders and internal disputes,” Zeffman says.
“Equally, I’ve acted for lots of gambling companies over the last 25 years, so I’ve seen things from both sides of the fence.
“That actually coincides with data becoming a big thing for bookmakers over the last 20 years or so. That’s really in conjunction with the rise of smartphones and live in-play betting, which is very reliant on fast and accurate data.
“Because I’ve been involved in the sector for a long time, I inevitably know most of the players.”
How does racing catch-up?
In simple terms, this all boils down to catching what is by far the most popular betting product, football. As Zeffman notes, racing has to up its game.
With the right personnel in place to help drive Racing and Sports to the next level, glances are cast to the future and how best to capitalise on the commercial potential of the sport.
“Commercially, from our point of view, it’s focusing on our own house and what we can build to unlock revenues for customers and clients around the world,” Kelliher comments.
“It means building more engaging and entertaining products that talk to the younger emerging audience of the world that maybe haven’t grown up around horse racing betting.”
Furthermore, it is highlighted as essential to work alongside those that got the sports to where it is today, understanding where the company sits on a product level and utilise the experience possessed to scale these opportunities.
“Where Racing and Sports sit, we don’t have a direct impact on the rights holder commercial element,” Kelliher adds.
“From my point of view, it’s about focusing on what products we can build, that talk to the right audiences and unlock a better experience for the gambling firms that we deal with.”
Building on this, Zeffman discloses that there’s one truth that it would be “foolish” to not acknowledge when looking at the optimum strategies to be deployed to drive racing forward.
This, he says, centres around the fact that a number of challenges are being faced on a global basis for a whole host of reasons, with affordability tests and taxation singled out for the UK market.
“That means there’s all the more reason to try and find products that will enable bookmakers to engage better with their customers,” he continues.
“I’ve been a horse racing punter since I was well underage, and if you look at the horse race betting demographic it’s a bit old. There is a need to try and engage a younger audience.”
A footballing inspiration
As the undoubted dominance of football from a spectator and betting product point of view rears its head once again, Kelliher reiterates the necessity of what lessons racing can take in terms of what’s engaging fans.
“We’ve seen a shift,” he explains, “If we went back 20 years, you couldn’t place a bet on a team to win and, and a player to score first because it was called a correlation bet. Now the models allow for you to do that.
“In racing, everything was win only or each way. In the UK our job as a business is to build products that audiences are familiar with, but have a racing angle.
“What does that mean for us? Building bet builders and race multis that people are familiar with in the football world, and allowing an easy transition for the operator to cross sell these opportunities to their customer base through familiarity of the product.”
With three core business streams comprising Racing and Sports’ make up, the necessity of making more intuitive, fun products which are engaging to a younger audience has never been more important.
“We want to grow all revenue streams, but ultimately it just comes down to building the right products and listening to our audience,” Kelliher concludes.
“I think the success of the business from three people in the UK three years ago to 13 now, to bringing people like David in, we’ll continue to go from strength to strength.”