Archive for July, 2008

JACKSON SEEKS FAN INPUT ON CURLIN’S PATH

Tuesday, July 15th, 2008

 He’s not quite Uncle Sam looking for a few good men and women to sign up for the U.S. Army, but Jess Jackson does want something from the public: their opinion. Specifically, the Paulick Report has learned that the California winemaker and Thoroughbred horseman is seeking input from both fans and horsemen in an online poll on where 2007 Horse of the Year Curlin should race next.

The debate on whether or not Curlin should continue on his ambitious path toward the Oct.  5 Prix de l’Arc de Triomphe in France began among Jackson, his family, trainer Steve Asmussen and Jackson’s advisers shortly after the 4-year-old son of Smart Strike finished second to 2006 Breeders’ Cup Turf winner Red Rocks in last Saturday’s Man o’ War on the turf at Belmont Park. It was Curlin’s first start on grass.

Realizing the discussions and debate extend far beyond Curlin’s inner circle, Jackson decided to see where the public thinks Curlin should race next, so he asked for poll to be set up on his Stonestreet Farms web site at www.StonestreetFarms.com.

"It became obvious this weekend at Belmont Park that Curlin is not only a hero to me and my family but also to thousands of fans," Jackson said. "With so many people supporting Curlin and his future I wanted to ask the public where they think Curlin should go next."

The poll, which will be open through July 30, asks simply: "If you were Curlin’s owner, Jess Jackson, where should Curlin go next?"

A. Turf Campaign
B. Dirt Campaign
C. Synthetic Surface Campaign
D. Retire

In the meantime, Curlin has shipped from Belmont Park to Saratoga, where he will train for his next engagement, wherever that is.

Winner of last year’s Preakness Stakes, Jockey Club Gold Cup and Breeders’ Cup Classic en route to honors as champion 3-year-old male and Horse of the Year, Curlin has yet to race on a synthetic surface. This year’s Breeders’ Cup, held at Santa Anita during the Oak Tree Racing Association meeting, will be the first on synthetic track for the traditional dirt races. Santa Anita is installing a Pro-Ride synthetic surface this summer after experiencing drainage problems with the Cushion Track it had previously installed.

"Curlin is a true world class champion," Jackson said. "He continues to race at the age of four years old and stands as an inspiration and fresh change for the industry."

By Ray Paulick

Copyright ©2008, The Paulick Report

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WESTWARD HO!

Tuesday, July 15th, 2008

The road less traveled covered more than 3,000 miles, stretching from Central Kentucky through the upper Midwest, to the Great Plains, Wild West and finally to Southern California in time for Wednesday’s opening day of the summer meeting at Del Mar. There were sights for which words cannot do justice, natural wonders that make this country unique and awesome in its beauty.

And, oh yes, there were horses nearly everywhere the highways and backroads took us on this weeklong Westward trek.

There were no horse races, though we did pass by several "dark" racetracks, including Indiana Downs southeast of Indianapolis in the Hoosier State, Metra Park in Billings, Montana, and Wyoming Downs in rustic Evanston, Wyoming. But horses were everywhere, or so it seemed.

There was a horse show in Wisconsin, trail riders in Minnesota, and dude ranches in South Dakota. Rodeos in small-town Wyoming appeared to be as commonplace as little league baseball in the suburbs of most American cities. Real-life cowboys still use their horses to check fence lines under the Big Sky of Montana.

Horses remain an unmistakable and unique part of the fabric of American life, not just in the West but throughout the United States. But this trip West served as a reminder of how important the horse is to our society — past and present.

The Thoroughbred is just one thread in that colorful fabric. Yet it’s an important thread, providing entertainment and sport and competition at the highest level.

The Paulick Report recognizes that the horse industry is a business — a massive one that, according to the American Horse Council, produces a $102 billion economic impact annually and provides for 1.4 million jobs. The AHC’’s economic impact study estimates there are 9.2 million horses in the United States.

In all the annual numbers that we see in our slice of the business, Thoroughbred racing and breeding ($15 billion wagered, $1 billion in purses, another $1 billion in auction receipts), it’s sometimes easy to lose sight of what really drives the industry: the horse, and the fascination and love people hold for this majestic creature.

By Ray Paulick

Copyright ©2008, The Paulick Report

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Guest Editorial: Congressman Ed Whitfield

Monday, July 14th, 2008

One of the goals of the Paulick Report since our launch last month is to further the dialogue on the many critical issues the Thoroughbred industry faces, and to hear from different voices representing diverse points of view with which we may agree or disagree.

The following op-ed article was written by Congressman Ed Whitfield, a Republican from Kentucky, whose office contacted the Paulick Report about the possibility of its publication. The piece concerns the recent Congressional hearings on racing and his belief that the federal government can help the industry through an amendment to the Interstate Horseracing Act of 1978.-Ray Paulick

 

Time to Get Horseracing Back on Track

By U.S. Representative Ed Whitfield (KY-01)
Ranking Member, House Subcommittee on Commerce, Trade and Consumer Protection

Last month, the U.S. Congress held a hearing to examine the state of the horseracing industry in America. The voices of those who testified rang loud and clear across the country and an overwhelming consensus was reached on four key issues plaguing the Sport of Kings.

The first is that far too often, horses are given performance enhancing drugs and pain killers to ensure they run as fast as possible, while masking pain that may have provided a warning to avert a catastrophic injury for the horse and the jockey. The second is a lack of uniformity of applicable drug rules and data collection statistics regarding track accidents and safety issues among the 38 separate state racing jurisdictions. The third is the excess number of drug labs in the U.S. - over 18 today - and their inadequate funding to ensure quality and accurate testing. The fourth is the absence of any one entity with the authority or power to enforce uniformity in a myriad of regulations across state lines.

Horseracing is a $40 billion a year industry in the U.S. and generates more than 500,000 jobs nationwide. It is also a part of our nations’ history and a cherished tradition. Anyone who has spent a day at the races at Keeneland, Del Mar, Saratoga or attended the Kentucky Derby or the Preakness revel in the beauty of the horses, the pageantry of the event, romanticism of the sport and the skill of the jockeys.

However, when the American people read news stories about the rampant use of drugs administered to the horses and see it described as "chemical warfare;" when they realize that over 5,000 horses have died from injuries on racetracks since 2003; when they see the life threatening injuries suffered by jockeys riding the horses; and when they discover the number of horses that are sent to slaughter every year after falling into the lowest claiming races, horseracing becomes less appealing. In fact, a recent poll taken by a newspaper in Seattle found that 38 percent of those polled wanted to ban horseracing.

I do not want to see that happen and do not believe it will. I do, however, strongly believe that Congress can help the industry solve its problems and do so without creating an expensive new federal agency.

Congress can help because it can adopt minimum standards or guidelines for excellence, control and uniformity among the 38 racing jurisdictions. Just as important, Congress can enforce the minimum standards through the Interstate Horseracing Act of 1978. The industry came to Congress in 1978 and asked the federal government to become involved in horseracing by adopting legislation to allow the simulcast signal across state lines without interference or obstacles. Congress obliged and did not ask anything from the industry.

Today, simulcasting provides 85 percent of the revenue for horseracing, but the industry has not been able to solve the serious issues it faces. It is time for action. I propose that Congress set minimum standards in the 1978 Act and require state racing authorities to adopt those standards to continue receiving the benefits of simulcasting. The federal government working with industry leaders and groups can solve the problems and ensure a strong, safe and vibrant sport for future generations.

REBUFFED BY CUP

Monday, July 14th, 2008

On the surface, it seems unfathomable that the 40-some members and trustees, founding members and officers of the Breeders’ Cup who select the organization’s operating board of directors could have rejected Richard Santulli, whose business acumen is such that he is on the short list of candidates to succeed Warren Buffett, the “oracle of Omaha,” as chairman of Berkshire Hathaway. But that’s what they did on Friday, when the group voted to fill seven positions on the 14-member board. Neither Santulli, a New Jersey-based Thoroughbred owner and breeder, or Hill ‘n’ Dale Farm owner John Sikura received enough votes to secure a board seat.

The members and trustees re-elected all five of the candidates who sought re-election to two-year terms: Breeders’ Cup board chairman Bill Farish of Lane’s End Farm, Antony Beck of Gainesway Farm, Terry Finley of West Point Thoroughbreds, racetrack and casino owner R.D. Hubbard, and Satish Sanan of Padua Stables. Two open seats, made possible when board members Robert Clay and Joseph Shields Jr. were voted off the board of members and trustees by Breeders’ Cup nominators, were filled by Helen Alexander of Middlebrook Farm and Roy Jackson of Lael Stables.
Those seven are joined on the Breeders’ Cup board by the following individuals who were elected to two-year terms in 2007: Reynolds Bell Jr., Donald Dizney, Tracy Farmer, B. Wayne Hughes, G. Watts Humphrey Jr., and Robert Manfuso. The 14th board position is filled by the Breeders’ Cup CEO, Greg Avioli.

It is widely believed that the xenophobic duo of Farish and his father, Will, the vice chairman of the Jockey Club, lobbied heavily with the members and trustees to keep Santulli and Sikura off the board. Ironically, Santulli has been a client of Lane’s End, keeping mares at the Versailles, Ky., farm. Both Santulli and Sikura have been outspoken in their criticism of various aspects of the Breeders’ Cup in recent years. NetJets, the company Santulli founded and which is now part of the Berkshire Hathaway empire, was a Breeders’ Cup sponsor for several years but did not renew its sponsorship in 2008.
New Jersey-based Thoroughbred Daily News publisher Barry Weisbord, a close associate of Santulli, is believed to have lobbied to get Santulli elected. In addition, a number of Kentucky-based members and trustees pushed for the election of Sikura.

Simply put, Farish had the most juice in this election, and sources say it wasn’t even close.

The two new board members, Alexander and Jackson, represent old money. Alexander is an heir to the massive King Ranch, which raced 1946 Triple Crown winner Assault. She is widely respected for her independence and toughness, and support for her candidacy likely reached across the various factions.

Jackson, an heir to the Standard Oil fortune through his grandfather, William D. Rockefeller, is best known as the owner-breeder with wife Gretchen of Barbaro, the Kentucky Derby winner whose injury in the Preakness and unsuccessful battle to survive was a closely followed national drama two years ago. Having the conservative and low-keyed Jackson seek election was a stroke of genius by whoever convinced him to run. He and his wife, along with trainer Michael Matz, jockey Edgar Prado and veterinary surgeon Dean Richardson, were the human elements in the Barbaro story, and the Jacksons received plaudits from all corners for their handling of the horse’s post-Preakness struggles.

I’ve never heard anyone compare Jackson’s business experience with that of Richard Santulli, or his knowledge of the horse industry with John Sikura. But he is without enemies in the business and doesn’t make waves: a sure-fire qualification for an endorsement from the Farishes.

The respect for Alexander and the affection for Jackson notwithstanding, the rejection of a highly successful businessman like Santulli is mind-boggling. If he is good enough to be a candidate to run Berkshire Hathaway, it’s almost comical to think he would not be an asset on the Breeders’ Cup board.

The only conclusion I can make is that the most influential board members, led by Bill and Will Farish, are interested only in maintaining power by preventing individuals with different points of view from getting elected.

“Billionaires run the industry,” one horseman said to me after the election. “The only way to beat them is on the racetrack.” 

By Ray Paulick

Copyright ©2008, The Paulick Report

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THE WEEK THAT WAS: JULY 6-12

Sunday, July 13th, 2008

Curlin was the story of the week, in the court room and on the racetrack.

The 2007 Horse of the Year made his grass debut Saturday in Belmont Park’s Man o’ War going 1 3/8 miles and ran a solid race to be second to Red Rocks, the 2006 Breeders’ Cup Turf winner. Solid enough to warrant a trip to France for the Prix de l’Arc de Triomphe in October? Not in my book, not when you consider how much stiffer the competition will be and how much more challenging the conditions at Longchamp figure to be.

The fact that Curlin even raced in New York is a tribute to the power of attorneys. Only a few weeks ago it looked as though the legal entanglement minority owners Shirley Cunningham and William Gallion were in was going to prevent the horse from racing in New York because the owner’s license of Cunningham had expired and the New York State Racing and Wagering Board said it would not resissue the license because it would not be in the best interests of racing. Cunningham and Gallion were on trial at the time on a wire fraud charge related to their legal fees in a class-action lawsuit involving the diet drug Fen-Phen. Attorneys for Jess Jackson, Curlin’s majority owner, fought to turn over the Gallion-Cunningham ownership to a court-appointed receiver, and an attorney for the people in the class-action suit who were allegedly gouged wanted Curlin sold in a public auction.

Gallion and Cunningham are to be retried (with a different judge presiding over the case) after their first trial ended with a hung jury and a mistrial. Jackson’s attorneys won this round and were able to race Curlin in New York.

But the legal entanglement won’t be over until the fat lady involved in the Fen-Phen case sings. Curlin will probably have little babies running around by then.

THE PAULICK REPORT’s anonymous news tip line got word that some past-post betting took place at Tampa Bay Downs on a race from Philadelphia Park June 28, and we had an exclusive report on that incident  last Monday. Our friends at the Thoroughbred Times did a quick rewrite of the story later that day, which didn’t go down too well with us. A Paulick Report follow-up focused on the two leading industry trade publications, including Bloodhorse, where I served for 15 years, touching on the cozy relationship those magazines traditionally have with the advertising community, which frequently wield their considerable clout to alter editorial coverage. The article was not meant to categorize Frank Angst, the Thoroughbred Times author who rewrote the Paulick Report story without attribution, as a bad reporter. Not giving credit to another publication is how business is done in the trenches of the Thoroughbred trade publications. Angst, in fact, is a very good reporter whose coverage of the wagering side of the industry has been the best in the business.

The most important lesson to take out of the two articles is the fact that the pari-mutuel industry is operating with an antiquated tote system that could rock the integrity of the very core of the business. Past-posting has occurred, and no one can say with absolute certainty that it isn’t happening more frequently than we know.

THE DISTRIBUTION OF BETTING REVENUE among tracks, horseman’s purses and account wagering companies was at the center of the dispute between Ellis Park and the Kentucky Horsemen’s Benevolent and Protective Association that prompted Ron Geary to throw down the gauntlet and threaten to close Ellis Park for good recently. Geary backed off on his threat, opening the western Kentucky track a week late in what can only be termed a victory for horsemen. They also won a victory against Churchill Downs this past week when a simulcast contract was signed between Florida horsemen and Calder. The account wagering dispute still lingers there, as it does in many jurisdictions where the account wagering companies, especially those owned by racetracks, are getting an increasingly bigger share of the pie.

A new organization, the Thoroughbred Horsemen’s Group, is trying to reshape the business model for account wagering, and the Paulick Report profiled how the THG leaders are going about it.

THE NEWLY APPOINTED KENTUCKY HORSE RACING COMMISSION had its first meeting last week, and indications are that it will be full-speed ahead on regulations or a ban on anabolic steroids. Lo and behold, the makeup of the commission shows some diversity of viewpoints, despite the politics that are inherent in this process, and the Paulick Report gave the governor and his close ally Tracy Farmer two thumbs up on most of the appointments.

FINALLY, THE BREEDERS’ CUP BOARD OF MEMBERS AND TRUSTEES held an election on Friday to fill seven spots on its 14-member board of directors. All five board members seeking reelection won, and two open positions were filled by Helen Alexander of Middlebrook Farm and Roy Jackson of Lael Stables, which raced Barbaro. 

I’ll have more on the Breeders’ Cup election in tomorrow’s Paulick Report post.

By Ray Paulick

Copyright ©2008, The Paulick Report

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BOLD NEGOTIATIONS

Friday, July 11th, 2008

The racing industry is like a three-legged stool with the horseplayers and fans, owners and breeders, and racetracks and wagering companies comprising each of the three legs. Take one away and the stool collapses.

Horseplayers, as we all know, are the least organized, though some individuals from that group bet massive sums of money and can inflict economic punishment or rewards by shifting their action from one track to another.

Tracks are more organized than ever, largely because of the consolidation by Magna Entertainment and Churchill Downs, their respective wagering companies, ExpressBet and TwinSpires.com, and their joint venture simulcasting consolidator TrackMedia.

Owners and breeders are somewhere in between. Negotiation of purse and simulcast contracts with racetracks are negotiated by local horsemen’s groups (state division of the Horsemen’s Benevolent and Protective Association, Thoroughbred Horsemen’s Association, the Texas Horsemen’s Partnership, and Thoroughbred Owners of California).

Following the startup of TVG and other account wagering companies during the past decade, some of these horsemen’s groups began to notice a troubling trend. Increases in handle were being accompanied by a decrease in purses. The terms "leakage" was entering the racing vernacular and it was not the kind of leakage a package of Depends could help control.

This leakage of purse revenue was caused by multiple factors: more money was being bet off-track, with off-shore rebate betting shops and with fully licensed and state-regulated account wagering or advance deposit wagering (ADW) companies.

The economic pie (wagering on horse racing) was previously cut up with the biggest slice going to horseplayers, and the next largest divided equally between tracks and purse money for horse owners, and a smaller slice going to state and local governments.

A new player began bellying up to the table and demanding its own slice: account wagering companies.

The promise was that these companies were going to help bake a bigger pie and fatten everyone up. In truth, there has been only small growth in handle and more redistribution of wagering from on-track and inter-track to telephone and internet bets through account wagering companies. The net result is a reduction in the percentage of each dollar wagered ending up in purses for horse owners.

Some people think horse owners get enough in purse money already. I guess if you think a dollar invested should be rewarded with a half-dollar in return, you’re right. Horse owners put over $2 billion into the game each year so they can fight over $1 billion in purses. That’s not a very sound investment strategy.

Tracks were hurt by this trend, too, at least in the beginning and until they realized the need to operate the account wagering companies themselves.

State horsemen’s groups started talking to each other about this "handle up, purses down" phenomenon and formed a study group to seek solutions. Late last year, after determining that the economic business model for distribution of account wagering dollars wasn’t working, they decided to form a company, the Thoroughbred Horsemen’s Group, in an attempt to change the model.

Thoroughbred Horsemen’s Group counts 18 horsemen’s organizations among its members in 16 jurisdictions (California, Kentucky, Florida, Texas, Pennsylvania, Ohio, Louisiana, Maryland, Delaware, Arkansas, Virginia, West Virginia, Oklahoma, Minnesota, Indiana and Ontario).Collectively these groups negotiate contracts with 52 North American tracks.

Bob Reeves, a third generation horseman with decades of executive experience in the health, insurance and venture capital fields, is president of the TGH. He’s been head of the Ohio HBPA and that state Thoroughbred Owners and Breeders Association. TGH’s sole employee is Wilson Shirley, a consultant who formerly worked for the national Thoroughbred Owners and Breeders Association and Thoroughbred Owners of California.

Reeves and Shirley, on behalf of their member organizations, are negotiating with account-wagering companies to reshape the distribution formula from one that favors the wagering companies to one that puts more money into purse money, which will strengthen live racing and, ultimately, the racetracks themselves. "We are a shared resource," Reeves told the Paulick Report, in reference to the Thoroughbred Horsemen’s Group, which he called an "intermediary" in negotiations.

Sort of like William Shatner and Priceline negotiating with hotels for the best deals on behalf of consumers.

"We are trying to change the model to one that distributes the account wagering revenue based on a percentage of takeout instead of a percentage of handle," Reeves said.

Reeves said the Thoroughbred Horsemen’s Group has hired attorneys intimately familiar with anti-trust issues and is confident the organization is not in violation of the Sherman Anti-Trust Act. Churchill Downs Inc. has sued the Thoroughbred Horsemen’s Group, alleging violations of the Act.

The formulas for distribution of account wagering revenues are complicated. Account wagering companies first pay a host fee to the track and horsemen where the live race is being run on which a bet is placed. There sometimes is a source market fee, if the bet is made by someone who lives in a racetrack market. That fee is divided between the local track and purse accounts for that track. But more often than not, a bettor does not live within 25 miles, so the account wagering company pays no source market fee and retains the money as profit. That is where a big part of the leakage occurs. The net result is that the company handling the bet is getting more money than the horse owners who are putting on the live race on which the bet is made.

That’s like a retail store making more on a product than the manufacturer of the product. It’s backwards.

Naturally, the account wagering companies - especially those owned by the racetracks - don’t want to change the formula. The wagering companies see greater profits for themselves as more people stay home and bet rather than drive to a track or OTB. (And with $4-plus per gallon gas, that number could soar.) There have been stalemates in negotiations involving account wagering, which is why horseplayers were not able to bet by phone or computer on Churchill Downs, Lone Star Park, Calder and other tracks. Churchill reported large declines in handle and purses at their spring-summer meeting.

Horsemen won in their negotiations with Ellis Park owner Ron Geary, who threatened to close his track rather than change the previous account wagering structures. That victory should inspire the local horsemen’s organizations to stay the course in the current and upcoming negotiations. There may be short-term pain but remaining firm in their position will result in long-term gain.

"I am delighted with the resolve the different horsemen’s groups have shown," Reeves said. "We are trying to save racing." 

By Ray Paulick

Copyright ©2008, The Paulick Report

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NEW KY COMMISSION IN GOOD HANDS

Thursday, July 10th, 2008

It’s become something of a tradition in Kentucky politics for newly elected governors to dissolve the regulatory body for horse racing and create their own racing board. It’s something Brereton Jones, Ernie Fletcher and now Steve Beshear have done.

Governors in most other states are content to merely fill racing commissions with their hand-picked appointees as terms expire. In Kentucky, where horse racing is the number one industry and racing commissioners can wield considerable clout, there is more of a sense of urgency by governors and their allies.

The downside to this maneuvering is continuity in the regulation of the sport, and this latest iteration by Gov. Beshear to dissolve the Kentucky Horse Racing Authority and create the Kentucky Horse Racing Commission left no indication as to whether people like John Veitch, the chief steward for racing, and executive director Lisa Underwood have job security in the new regime.

There was good work being done by some members of the KHRA, and we can only hope that it will not go by the wayside. For example, one of the Authority members who was not retained on the new board, Franklin Kling, put considerable time and effort into issues related to wagering security, particularly past-post betting, or perceptions of past-post betting. It is common now, because of delays in communications from wagering hubs to the host track, for odds to change midway through a horse race. Clearly, the tote systems are not on par with the technologies in place for online banking and securities transactions, and there remains the potential for fraud and pool manipulation.

Many horseplayers are concerned that bets are being made after the start of a race, and some racetrack executives privately fear the same thing. There have been instances in Kentucky where that’s happened on simulcast races, and professional horseplayer Mike Maloney was brought in by the Authority to advise them on the issue. The latest example appears to have occurred at Philadelphia Park recently, when the Scientific Games totalizator system malfunctioned, allowing simulcast bettors at Tampa Bay Downs and possibly other locations to place wagers during and after the running of the fourth race June 28.

Kling provided at no cost to the commission information technology personnel from his company to examine the issue of tote communications and past posting, and according to sources there was progress in that area. This is a serious issue that needs attention, and there is no reason to discard the work that Kling and other members of a wagering security committee have done.

Fortunately, the man who advised Gov. Beshear on the appointments to the new commission, Thoroughbred owner-breeder Tracy Farmer, is a sharp and highly ethical individual, knowledgeable about the industry, and perceptive about what the public expects from a regulatory body. Farmer and his wife Carol have been strong supporters of horse rescue and retraining operations, something that many people in the industry have ignored for too long.

The commission includes some members whose background does not appear to have any connection to racing and is probably nothing more than political patronage. However, the retention of attorney Robert Beck as chairman was a wise move, as was the appointment of several people with both knowledge and experience in racing matters.

One example is attorney Ned Bonnie of Louisville, who is an expert in the medication field, having helped develop regulations for the sport horse world. Bonnie has been involved in numerous industry committees and has strong opinions about cleaning up the game. His involvement in the Thoroughbred industry goes back many year and includes a close friendship and association with the late Kent Hollingsworth, the esteemed, longtime editor of Bloodhorse magazine whose "hat, oats and water" mantra Bonnie had emblazoned on a sweatshirt that he frequently wore while jogging.
Farmer appears to have advised Beshear to balance the board with diverse views. Trainer John Ward has fought for tighter restrictions on medications while heading the Kentucky Thoroughbred Association and Frank Jones has been a voice for the Kentucky Horsemen’s Benevolent and Protective Association, which tried to keep Kentucky’s permissive medication rules intact. The inclusion of a veterinarian, Foster Northrup, is another move that will diversify the board’s makeup.

The best news came on Wednesday, when the new commissioners were sworn in, and Beck and Farmer indicated that they intend to pursue regulations for anabolic steroids.Steroids have been one of the sport’s dirty little secrets. There will be efforts to keep their use legal in Kentucky, and some veterinarians may say that their use benefits the health and welfare of the horse. But public perception is very important, and right now horse racing is losing that battle in a very big way. It’s time for steroids to be banned: period.

The political tradition by newly elected Kentucky governors to dissolve racing commissions and create new spots for political supporters can lead to problems. Fortunately, the people involved in the process in 2008 have the best interests of racing at heart.

Let’s hope there is a seamless transition. People who regulate Kentucky racing should be looked upon as national leaders. That hasn’t always been the case.

By Ray Paulick

Copyright ©2008, The Paulick Report

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ANOTHER SILLY SPAT OVER ‘HORSE CAPITAL’ CLAIM

Thursday, July 10th, 2008

ABC.net in Australia is carrying the blow-by-blow report of a battle royal between two small towns north of Sydney — Scone and Tamworth — both of which are claiming to be the "horse capital of Australia."

Apparently, Tamworth is calling itself the island nation’s "horse capital" because of a AUS$30-million equestrian center recently completed.

Barry Rose, the mayor of Scone, situated in the Hunter Valley region where many of Australia’s Thoroughbred farms are located, calls it nonsense. "The first thing that needs to happen if Tamworth wanted to be the horse capital is to get some horses," Rose said. "At the moment there are a couple of stud farms around Tamworth but in the immediate vicinity of Score there are 96 horse farms."

Reminds us of the silly spat a few years back between the executive directors of the Kentucky Thoroughbred Association, David Switzer, and the Florida Thoroughbred Breeders’ and Owners’ Association, Richard Hancock. They went toe-to-toe over claims to be the "horse capital of the world."

If memory serves, Hancock attempted to register  Ocala and Marion County as the "horse capital of the world" with the U.S. Patent and Trademark Office but was rebuffed. Switzer arranged to put "horse capital of the world" on a local water tank and signs throughout Fayette County.

Fortunately, Switzer and Hancock have bigger fish to fry these days….like how to keep developers from ruining what makes both areas so unique and suited for breeding and raising horses.

By Ray Paulick

Copyright ©2008, The Paulick Report

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POLITICKING FOR BREEDERS’ CUP BOARD AT WARP SPEED

Wednesday, July 9th, 2008

Phone lines in Central Kentucky have been burning up among the nearly 50 incumbent and newly elected members and trustees of the Breeders’ Cup, who will be responsible for electing seven individuals to the 14 member operating board of directors in Lexington, Ky., on Friday.

Five members of the board — Antony Beck, current board chairman Bill Farish Jr., Terry Finley, R.D. Hubbard and Satish Sanan - are up for re-election, and all five are expected to seek a new two-year term. There are two open positions previously held by Robert Clay and Joseph Shields Jr., who lost re-election bids to the members and trustees board, voting for which was conducted in June among all Breeders’ Cup program nominators. Clay was vice chairman of the Breeders’ Cup board of directors.

John Sikura is the only new name that has surfaced as a "declared" candidate for a board seat, though others will certainly will develop by Friday’s meeting.

In the meantime, numerous phone calls are being made by members of two distinct camps seeking proxies and support in advance of what figures to be a hotly contested election for control of the Breeders’ Cup. In previous elections

Here are the members and trustees listed on the Breeders’ Cup web site or last week’s election results: Josephine Abercrombie, Helen Alexander, John Amerman, Gregory C. Avioli, James E. Bassett III, Antony Beck, Reynolds Bell Jr., Boyd Browning Jr., Doug Cauthen, Alice Chandler, Brownell Combs II, Donald R. Dizney, William S. Farish, William S. Farish Jr., Tracy Farmer, Terrence P. Finley, James E. Friess, Thomas Gaines, Lucy Young Hamilton, L. William Heiligbrodt, R.D. Hubbard, B. Wayne Hughes, G. Watts Humphrey Jr., Roy Jackson, Brereton C. Jones, John T.L. Jones Jr., John T.L. Jones III, Tom Ludt, Wayne G. Lyster III, Robert T. Manfuso, Robert McNair, Clem Murphy, Maria Niarchos-Gouaze, Charles C. Nuckols III, J. Michael O’Farrell Jr., Bill Oppenheim, James A. Philpott Jr., Ogden Mills Phipps, Dan Pride, Don Robinson, Satish K. Sanan, Richard T. Santulli, John G. Sikura, Frank Stronach, Mark Taylor, D.G. Van Clief Jr., Charlotte Weber, Barry Weisbord, and Christopher Young.

By Ray Paulick

Copyright ©2008, The Paulick Report

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VINERY SACKS ASMUSSEN

Tuesday, July 8th, 2008

Tommy Simon’s Vinery Stable has moved 21 horses from the barn of trainer Steve Asmussen, not long after an allegation of a positive test for traces of the therapeutic anesthetic  lidocaine from an Asmussen-trained  horse that won a maiden race at Lone Star Park in Texas May 10.

Tom Ludt, general manager of Vinery, confirmed the move to the Paulick Report but would not comment on why the change was made. Ludt said the horses have been distributed among the half-dozen other trainers Vinery employs: Josie Carroll, Larry Jones, Doug O’Neill, Todd Pletcher, Michael Stidham and Michael Trombetta.
Jones is currently awaiting results of a split sample in the wake of an alleged positive test in one of his horses that raced in Delaware for the therapeutic bronchodilator clenbuterol, a Class 3 drug according to the Association of Racing Commissioners International.
Asmussen received notice from the Texas Racing Commission late last month that Timber Trick, a 2-year-old filly owned by Gainesway Stable, tested positive for lidocaine, a Class 2 drug that can be used as a “blocker” but also is found in many non-pharmaceutical products. Texas prohibits any trace of the drug in test samples and is classified as a "zero tolerance" state. Asmussen has retained the legal services of prominent owner Maggi Moss, a trial attorney who put her law practice on hold several years ago to concentrate on her racing stable.
According to the Association of Racing Commissioners International database, Asmussen has a total of 74 rulings involving him, including a number of medication violations, dating back to 1990. He served a six-month suspension in late 2006-early 2007 for a mepivacaine positive in one of his horses racing in Louisiana.

Asmussen, the leading North American trainer by wins and earnings in 2008, is also the conditioner for 2007 Horse of the Year Curlin.

By Ray Paulick

Copyright ©2008, The Paulick Report

 
 
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