The wow factor of a $10 million race is enormous but the details have to be worked out to make sure the investors get the right return.
![Champion: Tommy Berry on Chautauqua.](/web/20170205104631im_/http://www.smh.com.au/content/dam/images/g/u/5/x/s/v/image.related.articleLeadwide.620x349.gu5seh.png/1486276670365.jpg)
The launch of The Everest on Wednesday appeared to be rushed. It came across as a concept rather than a finished product. Some wags at Randwick on Saturday were keen to point out that the website (www.theeverest.com.au) carries a tag at the bottom, spruiking the page was created by "crazy domains".
The numbers – a $600,000 buy-in for a $10 million race – are magical and are hard to comprehend straight away.
And the response was been incredible. There are already meetings in place for the free-to-air television rights this week. Seven has the inside running, with its current deal not due to expire until the end of 2017, and it is expected a sponsor will be signed within a month or two.
So it seems The Everest is going to be a boon for racing in Australia. The country's best product – its sprinters – will finally be running for the country's biggest prize.
But the concept has also had its critics. They say it is elitist in nature, that it is a departure from everything that makes Australian racing great, which is that everyone is equal so long as they have a good horse.
The industry will get behind the concept, with the studs and owners working out where they will find the $600,000 to pay for their slot in history. But the battlers? Well, a battler can't afford $600,000. For the vast majority of people, that is a house not a spot in a race.
The Everest was the talk of the track on Saturday, but potential investors wanted to know the specific conditions, which will be ironed out in a meeting on Monday.
The expressions-of-interest paper, to be released later in the month, will answer questions about what the $600,000 buy-in gets owners. The slots, some say, are too expensive, but a dining and advertising package on ATC tracks could be added to make the Everest a full-year experience for slot holders and give them more value.
The Everest is perfectly placed to enhance the spring because it will not draw on horses that are targeted for the major staying races in Melbourne.
The inaugural event will have the benefit of being held on a date that isn't regularly available because this year there is an extra Saturday between Epsom Day and Melbourne Cup day due to how the October long weekend holiday falls. That means the October 14 meeting won't replace a normal carnival meeting in Sydney.
The biggest winners in The Everest will be jockeys and the trainers, as they are guaranteed the equivalent of three Saturday wins simply for having a runner in the race under the published prizemoney split up. An owner has to come up with $600,000 for a slot and takes all the risk.
If their horse runs third, he will make $80,000 for the investment after the buy-in is subtracted, while his trainer gets the same and the jockey gets $40,000. So the owner's expenses for the race are more than his return. For those finishing fourth and beyond, the losses will start to mount up.
Perhaps, the ATC or Racing NSW should look at paying the jockey and trainer percentages for this race, which will cost $1.4 million as part of the promotion. They have both said the rules will change for The Everest.
The prize structure should allow a greater opportunity for return, if you finish fifth you should get your $600,000 back. That would make the three-year sell on slots easier. No one likes to lose money.
Most importantly, The Everest has to have the best horses in it. Which means the slot holders will break or make this race, so they have to be looked after.
The ultimate racing form guide with free tips, live odds and alerts for all racing.