Racing New South Wales were pretty quick off the mark post Pegasus World Cup to announce an ‘invitational’ race of their own. The race called ‘The Everest’ was announced on 1st February and caused the expected Twitter debate. If you don’t know the details you can go to this obviously hastily (and poorly) arranged website http://theeverest.com.au/. The premise is pretty much a direct copy of the US version – people buy slots to get a runner in the race, run over 1200m at Randwick. In this case it’s A$600k buy in, with a twist in the tail, you are required to make a three year commitment. So thats A$1.8, to have a runner over three years, or have the ability to trade slots in that time.

I was intrigued by the Pegasus concept. At first it sounded somewhat elitist, however after a bit of digging it seemed entirely possible for an owner with a good enough horse to get a run on the day, by making an arrangement with a slot buyer. The event was extremely well marketed, especially with the 13th jockey concept featuring Conor McGregor.

The Pegasus bought together the two top rated horses in the world in a Breeders Cup Classic rematch, something that never would have happened otherwise. That was a huge bonus for the race that should not be underestimated in generating momentum for it. Without the California Chrome and Arrogate it lacked a killer punch in racing terms. It was also slotted into a part of the racing calendar that is traditionally quiet, therefore gaining extra traction.

Will it work here? Personally I have my doubts, but let’s look at what RNSW are telling us and what we may be able to learn from the Pegasus.

The fact that a slot buyer has to stump up for three years, seems a major impediment. As if A$600k is not enough of a stumbling block. Given the horse ownership structure in Australia, it’s unlikely that there would be many direct owners/syndicates putting up their hard earned. However I doubt that this was the idea anyway, let someone else pay and then negotiate a deal with the owners of a high profile sprinter.

The stated aim is to draw on horses from the Asian region, with travel incentives on offer and use of Canterbury as a quarantine facility. The timing is awkward however, as Japan has the Sprinters Stakes in early October. Their best horses are likely to stay at home and seek a homegrown G1 as a priority. That probably counts out Big Arthur (below left) and Red Falx (below right). So at best a couple of the second tier horses may come.

Hong Kong’s pride and joy is the HKIR race day in December. With the quarantine turn around it makes it a difficult proposition for them to come for a race in the middle of October, although not impossible. Two weeks quarantine is required here before their return and then a spell upon arrival back in Hong Kong. Possible for it to be done, but unlikely. The HKJC are happy to have their horses race elsewhere to show the quality of their product. But they certainly will not endorse a Lucky Bubbles (below left) or Aerovelocity (below right) traveling it if it is likely to take from their own big day in December. I also doubt they are yet of a view to be granting any favours to RNSW.

So I think we can expect limited Asian representation. As for the Europeans, it clashes with the Champions Day at Ascot, so there is an immediate issue. Their sprinters have not been generally competitive when competing this side of the equator.  As for competitors from the other side of the Atlantic, mid October is two weeks before the Breeders Cup, so Americans are unlikely to travel.

So that could leave RNSW with the usual suspects that race regularly in Australia. There will be many trainers, jockeys interested in having a crack at a A$10m race, but will not be paying for a slot, so expect self interest to rule in their statements. Big studs may have some interest, however if the race does not carry black type status it may be limited. The Pegasus carried G1 status because they were happy to forgo a G1 rating for the Donn Handicap, also run at Gulfstream over 9f/1800m. Will the ATC cough up another race of a similar distance (Canterbury Stakes/The Galaxy/TJ Smith) to gain G1 status for The Everest?

The Pegasus was promoted to the wider community through some carefully thought out advertising via Conor McGregor of UFC fame. On the face of it, the day seemed a great success. A good, but not record crowd on track. Corporate packages taken up and the race was broadcast nationally by NBC (at the expense of the Pegasus Group). Betting figures were considered a positive, with the take being US$15.68m (including multiples that coincided with the Pegasus). This is well short of the 2016 Breeders Cup Classic, which held $US28.2m. However betting on the Pegasus World Cup was well in excess of the race it replaced, the Donn Handicap which held US$3.1 previously. So a significant boost there, but not the nations biggest betting race by a long way.

Australia’s biggest betting races are traditionally handicap races, with big fields and many chances (yes Melbourne/Caulfield Cup, Doncaster, Stradbroke et al).

Slot earners were promised a portion of revenues, although exactly what and how much they were entitled too remains something of a mystery. Figures are not available to establish what their returns were. A portion (A$2.8m) of the $A$10m prize money is expected to come from ‘incremental revenues’ (gate, corporate packages, increased betting). I don’t believe they should expect a significant return on broadcast revenue.

Are races like the Pegasus and Everest sustainable over a long period. I have extreme reservations. The Pegasus was a great event looking on from far, but will there be slot buyers on an ongoing basis? RNSW say they’ve spent six months on this, looking at the website they have constructed and name they’ve chosen, I have my doubts. There is a lot of water to flow under the bridge before this becomes a reality, let alone a success.