Project Metamorphosis (PM)
The Winner's Universe™ synergy mar-comm and convergence media and entertainment project is based on preliminary research report findings on the horseracing industry found in Project Metamorphosis, Part I, prepared by Creatorans™, a consulting company specializing in industry-wide problem solving and culture-biased marketing solutions.
Official Project Metamorphosis Report excerpt - Part I: NutShell
The horseracing industry is approaching major financial losses over the next decade unless adequate remedies can be applied. In 2002, horseracing saw $15.1 billion in revenues but by 2012 had dropped to $10.9 billion [1]—nearly a 28% decline. While the economic trend line suggests the industry could constrict to $7.2 billion over the next 10-years, our extrapolated findings (based, in part, on a 2011 study [2], put the industry potentially below $5.9 billion by 2023—nearly a two-thirds drop from its 2003 all-time high [charts redacted].
Major rejuvenation efforts are needed to counter critical consumer erosion trends and their underlying causes as well as other revenue drains.
Chief among the issues is a new cultural-bias paradigm in the younger consumer base with respect to animal welfare stigmas as well as the industry’s inability to adequately defend against consistent image attacks. Equally, industry de-centralization and lack of discipline focus and sound management of key business units is ensuring against global solutions, needed capital investments, cohesive leadership, adequate defense and growth capabilities, national strategy, planning and controls, as well as an array of other big-picture remedies. Moreover, consumers, communities and venues remain misunderstood, undervalued, and often mismanaged or mistreated—key needs remain vastly unmet.
In spite of the troubling outlooks, Creatorans™ sees these powerful problems as a major opportunity to not only reverse the loss trend, but install the industry into a phenomenal and lucrative growth cycle benefiting all stakeholders. We propose a large-scale rejuvenation undertaking using standard and cutting-edge solutions. Our proposed solution projects, combined, could boost horseracing’s yearly revenues by 5% to 25% or more. Our proposed image makeover could install horseracing as one of the top-5-sports in the US. Φ Φ Φ
[1] “Pari-Mutuel Handle” (The Jockey Club®, taken June 10, 2013) At: http://www.jockeyclub.com/factbook.asp?section=8
[2] McKinsey & Company, “Driving Sustainable Growth for Thoroughbred Racing and Breeding” (TJC, Aug 2011). At: http://jockeyclub.com/resources/selected_exhibits_1.pdf
Major rejuvenation efforts are needed to counter critical consumer erosion trends and their underlying causes as well as other revenue drains.
Chief among the issues is a new cultural-bias paradigm in the younger consumer base with respect to animal welfare stigmas as well as the industry’s inability to adequately defend against consistent image attacks. Equally, industry de-centralization and lack of discipline focus and sound management of key business units is ensuring against global solutions, needed capital investments, cohesive leadership, adequate defense and growth capabilities, national strategy, planning and controls, as well as an array of other big-picture remedies. Moreover, consumers, communities and venues remain misunderstood, undervalued, and often mismanaged or mistreated—key needs remain vastly unmet.
In spite of the troubling outlooks, Creatorans™ sees these powerful problems as a major opportunity to not only reverse the loss trend, but install the industry into a phenomenal and lucrative growth cycle benefiting all stakeholders. We propose a large-scale rejuvenation undertaking using standard and cutting-edge solutions. Our proposed solution projects, combined, could boost horseracing’s yearly revenues by 5% to 25% or more. Our proposed image makeover could install horseracing as one of the top-5-sports in the US. Φ Φ Φ
[1] “Pari-Mutuel Handle” (The Jockey Club®, taken June 10, 2013) At: http://www.jockeyclub.com/factbook.asp?section=8
[2] McKinsey & Company, “Driving Sustainable Growth for Thoroughbred Racing and Breeding” (TJC, Aug 2011). At: http://jockeyclub.com/resources/selected_exhibits_1.pdf
OFFICIAL PM REPORT EXCERPT - Part i: Executive Summary
1. Horseracing will continue to see declines that could result in a $7.3 billion industry by 2023 (figure 1) based on current economic trends. Accelerating fan attrition rates could push declines deeper, settling at $5.8 billion over the same period (figure 3).
2. The lack of centralized authority and controls at the national level is ensuring against reforms, upgrades, investments, and other critical resources and needs.
3. The industry’s near abandonment of image control is accelerating revenue declines and ensuring market size shrinkage, lowering future revenue outlooks.
4. Media coverage remains at insignificant levels and too focused on... (redacted)
5. Community, government, and “good neighbor” policies and programs remain inadequate, ensuring lower, over-all industry supports.
6. Marketing budgets and programs at all levels remain non-competitive with respect to budgets and execution. Wasteful and inappropriate consumer targeting has taken hold.
7. Lack of consistent national regulations and stringent centralized authority with respect to animal welfare, drug and safety issues will continue to cannibalize the industry’s image, reputation and consumer base, hence revenues.
8. ... (redacted)
9. While some progress has been made to abate key problem issues, the industry is moving far too slowly and inadequately to hinder its fan attrition rate and revenue loss trends.
10. Unabated counter-forces are ensuring the forward progress of public cultural-biasing and accelerating the stigma installation process to push horseracing closer to a cultural taboo than a supported social value. Gen Y majority (not all) appears to represent the first major segment in US history to generally oppose horseracing—Gen Z is expected to outcrop more negatively.
11. to 14. ... (redacted)
15. The lack of centralized coordination has led to the abandonment of sound public relations management from a national industry perspective. ... (redacted)
16. to 20 ... (redacted)
21. The current status quo path, if sustained, will likely result in the near total obliteration of the American horseracing industry within 2-3 decades. Today’s younger generations will become vitally important to the sport but the majority will likely remain resistant to patronizing it in sufficient numbers to prevent critical mass collapse. Many key factors vitally important to the industry’s future remain overlooked even now. Φ Φ Φ
2. The lack of centralized authority and controls at the national level is ensuring against reforms, upgrades, investments, and other critical resources and needs.
3. The industry’s near abandonment of image control is accelerating revenue declines and ensuring market size shrinkage, lowering future revenue outlooks.
4. Media coverage remains at insignificant levels and too focused on... (redacted)
5. Community, government, and “good neighbor” policies and programs remain inadequate, ensuring lower, over-all industry supports.
6. Marketing budgets and programs at all levels remain non-competitive with respect to budgets and execution. Wasteful and inappropriate consumer targeting has taken hold.
7. Lack of consistent national regulations and stringent centralized authority with respect to animal welfare, drug and safety issues will continue to cannibalize the industry’s image, reputation and consumer base, hence revenues.
8. ... (redacted)
9. While some progress has been made to abate key problem issues, the industry is moving far too slowly and inadequately to hinder its fan attrition rate and revenue loss trends.
10. Unabated counter-forces are ensuring the forward progress of public cultural-biasing and accelerating the stigma installation process to push horseracing closer to a cultural taboo than a supported social value. Gen Y majority (not all) appears to represent the first major segment in US history to generally oppose horseracing—Gen Z is expected to outcrop more negatively.
11. to 14. ... (redacted)
15. The lack of centralized coordination has led to the abandonment of sound public relations management from a national industry perspective. ... (redacted)
16. to 20 ... (redacted)
21. The current status quo path, if sustained, will likely result in the near total obliteration of the American horseracing industry within 2-3 decades. Today’s younger generations will become vitally important to the sport but the majority will likely remain resistant to patronizing it in sufficient numbers to prevent critical mass collapse. Many key factors vitally important to the industry’s future remain overlooked even now. Φ Φ Φ
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Project Metamorphosis is a series of 6 reports. Part I (research study) is now made available to select horseracing industry stakeholders. Contact Creatorans™ for details.
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