In a strongly-worded column, Alan Balch, executive director of California Thoroughbred Trainers, takes off on the issue of takeout – not just in California but everywhere:
“Name me one other product category (or any brand) that has its essential offering priced according to immutable law, regardless of market forces, and has that simplistic price enforced by a regulator? … If they exist, they're probably in the same trouble that racing is. As Milton Friedman, the Nobel Laureate economist , once said, “Any price the government sets is wrong.” Or, more famously, “If you put the government in charge of the Sahara Desert, in five years there would be a shortage of sand.”
Balch's solution? A collaborative effort that embraces flexible takeout – bets priced according to the market:
“Let's stop yelling at each other, and get together to improve our pricing in a collegial fashion. We just might be able to fix the problem if we stop wasting our time fixing the blame. The entrepreneurs originally responsible for the concept of takeout as it is still largely imposed upon our sport and our markets have been laughing at us from their clouds for quite some time now.”
New to the Paulick Report? Click here to sign up for our daily email newsletter to keep up on this and other stories happening in the Thoroughbred industry.
Copyright © 2018 Paulick Report.