Showing posts with label sports. Show all posts
Showing posts with label sports. Show all posts

Tuesday, 18 January 2011

Why ASEAN will failed to host World Cup?

It was reported that ASEAN, which comprises Brunei, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, Vietnam and Malaysia, is going big in World Cup. Since all of these countries did not manage to qualify on the pitch, they're going through back-doors.
ASEAN is going to bid for FIFA World Cup 2030 !!!


Wow... When I first heard about this news, I am very excited. But, after calming down and figured it out, I doubt ASEAN could succeed in bidding the world's most popular event because of the following reasons. Second surprise came, when Malaysia was said to lead the pack for the bidding. Malaysia, the unlikely team which became the winner of ASEAN cup recently, may found ourselves "syok sendiri".


Common Sense
  • Our level is nowhere near the World Cup level. Although we still have plenty of time before 2030, ASEAN needs much efforts to up the level, at least on par with South Korea.
  • To select a team who represents all the hosting countries, it would be very difficult. By then, the supposedly ASEAN team will became "rojak" team. Sure, there will be heated arguments on which players shortlisted and how many players from each countries.
  • Each countries have their own identity and culture, which needs to be show casts to the world given the world wide coverage. Would Malaysia want to lose our color?
Economic Sense
  • From the countries involved, who will be the chosen host? And, where will be the grand final? Because, that important locations would determine the profitability of the multi-billions event.
  • Since ASEAN do not have a common currency regime, some countries may lose out to another due to different currency exchange rates.
  • How much costs would each members shared?
Finance Malaysia suggests that Malaysia could bid for the World Cup by teaming up with Singapore. Two is better than the whole ASEAN. Of course, if can, we can host the entire event ourselves.

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Saturday, 26 June 2010

Goodbye to BJCorp’s Investors

While everyone seems keen to take part in sports betting starting English Premier League on August, prime minister suddenly surrender to political wills for NOT allowing the license last night.


The license was said to be already given to Ascot Sports Sdn Bhd “orally”, and since then, Berjaya Corp (BJCorp) had acquired 70% stake in Ascot Sports for RM 525 million. Shareholders are happy and many analysts are setting high target price for BJCorp. Due to objections from various parties on sports betting, Tan Sri Vincent Tan (BJCorp largest shareholder and Ascot Sports’ owner) surprise us for donating the entire proceeds of RM525 million to charity.

Let’s examine the issue carefully…
  1. If he is so confident, why Tan Sri Vincent Tan sell its stake in Ascot Sports before officially getting the green light?
  2. Why not after, when he can fetch a higher value than RM525 million?
  3. In the first place, why Tan Sri Vincent Tan would like to share the pie with investors?
It is expected that BJCorp will issue a statement on Monday in relations to this issue. Hope the press conference will went through smoothly. Take care.

Saturday, 17 April 2010

Sports Betting: Kaki Bola to Kaki Judi?

Recently, market talk has increased on the possibility of an approval of a sports betting license in Malaysia. What? Malaysia? YES

Introduction to Sports Betting…
For “kaki bola”, sports betting definitely not a strange activity for them – I am not saying that every ‘kaki bola’ also bets. As long as there was demand, almost any kind of sports in the world can become a common interest for betting. Example, tennis, baseball, badminton, golf, F1 racing, and even sepak takraw… Of course, we can not left out world’s most popular sports – football. According to some estimates, the illegal gaming syndicate market size is about RM10 billion, similar to the current 4D market size, of which the majority is from sports betting.
  
Further liberalization of gaming industry?
In Malaysia, 4D is the only legal betting activity that existed, besides going up to Genting Highlands. On the whole, further liberalization are positive, given that this would help enlarge the government revenue pie by taking market share from the illegal.

As soon as before World cup 2010?
I do not think that it can be implemented so fast because this must be brought-up to Cabinet for approval (a very complicated place now).


Sports betting a new opportunity for betting company?
Not necessarily. It all depends on how it is being implemented. The main issues were:

  1. the extent of restriction being imposed by government
  2. high prize payout ratios involved 
  3. gaming taxes to be borne
  4. agent commissions to be paid
  5. sports betting is much more complicated than normal 4D betting

The prize payout ratios for sports betting are very high, at 90-95%. Depending on the type of sports betting allowed, the prize ratio would vary. Example, a win/lose/draw system, as practiced in Singapore, got a lower prize payout ratio than betting on an odds system.
  
I believe that government would not allow an online betting system, as this would involve a whole set of other risks and control issues, like currency exchange. As such, the license would likely be for betting via the existing 4D outlets with a win/lose/draw system. This is because an odds betting system, with live features, must go through the un-control-able online mode, which is not encouraging.
  
However, win/lose/draw betting is NOT so popular to punters, given the more exciting nature of the odds system of betting available in the illegal market. Convenient wise, this would lose out, as punters had to place a bet physically at 4D outlets, as compare with a phone call in illegal market.