BOOGITY BOOGITY BOOGITY BESHEAR
By Ray Paulick
Where is the outrage?
Kentucky legislators seem to be getting in each other’s way to grease the skids for a tax break of up to $36.75 million to Bruton Smith, the ultra-rich chairman and chief executive officer of Speedway Motorsports, which owns seven NASCAR racetracks and last year purchased Kentucky Speedway from a partnership that included Jerry Carroll, the former owner of Turfway Park. Smith also is founder of Sonic Automotive, which owns 200 automobile dealership across the United States.
Smith’s net worth has been estimated as high as $1.5 billion by Forbes magazine in its annual list of the world’s billionaires. Admittedly, poor ol’ Bruton has fallen on hard times with the economic crisis and subsequent fall in the stock market. His net worth today is probably less than $500 million. Can you blame him for seeking a government handout?
Nevertheless, it’s a little cheeky for this good old boy octogenarian from North Carolina (pictured, left) to wander, hat in hand, into Kentucky, a state facing a serious budget crisis, and ask for a tax break so that he can renovate Kentucky Speedway and maybe, just maybe, bring a NASCAR race to the Bluegrass State. That’s something Carroll wasn’t able to accomplish when he built the Northern Kentucky car track, a failure that led to his pending lawsuit against NASCAR.
Smith wants Kentucky to pay him 25% for expansion costs at Kentucky Speedway. He has proposed spending $75 million to renovate and expand the Sparta, Ky., track. And no one in state government is outraged.
Where are the legislators who are quick to criticize pleas for financial help from the horse industry, the state’s No. 1 agribusiness and one that employs upwards of 100,000 individuals, simply because there are some wealthy Thoroughbred farm owners?
Where is Gov. Steve Beshear, who came into office with widespread support from horse farmers throughout the state on the promise that he was going to help them be more competitive with neighboring states that are getting subsidized by slot machines or video lottery terminals?
Where are they? Well, they’re probably making plans for some boogity boogity boogity while attending the next NASCAR race. According to the Lexington Herald-Leader, Beshear and cabinet secretary Larry Hayes have already been to NASCAR events in Charlotte, N.C., and Bristol, Tenn., at tracks owned by Smith, “to learn how big an attraction the events are.”
There are, undoubtedly, some future fact-finding missions for members of Kentucky’s august legislative body. Perhaps a trip this weekend to the Atlanta Motor Speedway, another track owned by Smith’s Speedway Motorsports, or two weeks later to Bristol, where our NASCAR-lovin’ pols can be wined and dined on chicken wings and Bud Lights in one of the track’s luxury suites.
There are no two ways about it: this deal stinks. Call Gov. Beshear’s office at (502) 564-2611 and tell him to just say no to tax breaks for billionaires. If Kentucky is meant to host a NASCAR race, a welfare check for someone like Bruton Smith should not be part of the bargain. He doesn’t need the money nearly as much as Kentucky does.
UPDATE: On Wednesday morning, Beshear announced that because of the state’s budget crisis he is cutting $200,000 from the annual Derby morning breakfast traditionally given by Kentucky’s governor. This year’s guests will be asked to pay $1 for each food item purchased (Kentucky state employees will prepare the food), as opposed to previous free breakfasts for guests. The state won’t be renting tents for this year’s breakfast, so let’s hope for clear skies on Derby morning. Click here for details.
Copyright © 2009, The Paulick Report
Sign up for our Email flashes to get the latest news, analysis and commentary from Ray Paulick
Visit the Paulick Report for all the latest news throughout the racing world.
Tags: auto racing, boogity boogity boogity, bruton smith, gov. beshear, Horse Racing, jerry carroll, kentucky speedway, larry hayes, nascar, Paulick Report, Ray Paulick, sonic automotive, speedway motorsports, steve beshear, turfway park
March 4th, 2009 at 12:46 pm
With regards to Bruton Smith and welfare for billionaires—remember that Kentucky reelected Mitch McConnell (the architect for the financial failures of the Bush administration) back to Washington for another term. So, in effect a majority of the people in Kentucky favor welfare for billionaires.
March 4th, 2009 at 12:59 pm
Good point Ray, NASCAR is the last thing we need here, especially with an upfront bail-out. If I wasn’t as familiar with Kentucky politics, I would think this is a joke. I am calling Steve’s office as soon as I send this message.
March 4th, 2009 at 2:19 pm
that hillbilly burton smith could teach KEEP and the kentucky horse people how to git er dun in frankfort
March 4th, 2009 at 2:31 pm
No question it “stinks,” especially as Beshear has done squat for the horse industry which heavily impacts the state’s economy. Time for everyone to call 502-564-2611 and start yelling.
March 4th, 2009 at 2:49 pm
If you want to email the governor, go to http://governor.ky.gov/contact/contact.htm. And if you want to email your legislator, see http://www.lrc.ky.gov/whoswho/email.htm for an email directory or http://www.lrc.ky.gov/legislators.htm if you’re not sure who your state senator or representative is. Let them hear from us.
March 4th, 2009 at 4:23 pm
Since Beshears has done nothing for the horse business and KY has forgotten us. Why have the gov on the stands the first saturday in may.
March 4th, 2009 at 4:33 pm
Ray,
I have spent quite a lot of time studying the NASCAR marketing model and deciphering how it could be brought into the Thoroughbred arena. I have no doubt that Boogity, Boogity is exactly what is going on, and as the NASCAR people have learned how to schmooze their way to the top.
As I have pointed out many times, twenty years ago NASCAR was considered a place for “red necks” (no disrespect intended) to get drunk. Now it’s the number two sport in America, there are numerous of reasons why, and boogity is one of them. However with it’s popularity the politicians want to be seen as one helping the number two sport in America - and securing a hell of a lot of votes in the process. On the other hand Thoroughbred racing has taken serious political and marketing hits for some years now, and instead of trying to rectify the situation the powers that be are fighting amongst themselves.
So whom are the politicians going to back – the votes – or the money that they can take with tax increases.
March 4th, 2009 at 7:57 pm
At least make that crooked car dealer pick up the Derby Day breakfast tab
March 4th, 2009 at 8:46 pm
It’s funny, in a very sad way, that high performance racehorses are the largest single agricultural crop, the generator of over 100k jobs in Kentucky, directly or indirectly, a 4.5 billion dollar industry and THE signature enterprise WORLDWIDE for Kentucky and we get treated as if we are a porn shop on the Paris Pike. If we farmed pigs, or cows or alpacas or something other than horses, we’d get a tax break on feed, fence, equipment, etc etc. But we don’t. Last time I checked the world doesn’t beat a hasty path to the Bluegrass every September to check out the Alpaca crop or the latest freshmen Bulls. Granted the legislature might actually do something about it this session, but I’m not betting on it
As much as I’d like to blame the infighting we’re so famous for, (why, just last month at the farm managers club, I was going to wrestle Ray to the floor just to stay in character) it’s not the problem. The problem is that horse racing is primarily a gambling enterprise and the holy rollers in the legislature just can’t stand the idea of legal sin. Illegal, that’s perfectly ok. That millions are bet illegally on football or basketball, or any other human athletic event moves them not.
March 4th, 2009 at 10:42 pm
The present ofifcials in Frankfort are not for the throughbred industry, they talk how important tourism is and how beautiful our state is from border to border. They are BREAKING my “Unbridled Spirit”. Move over Makers Mark here we come. Theodore Roosevelt
March 5th, 2009 at 7:07 am
This is cutting-edge, grass-roots political action. With proper oversight from the press and concerned citizens, there is no reason for politicians and other officials to misbehave and misuse public funds. We can stop them.
Well done. And thanks to Margaret for the links to the government officials who need a nudge in the sane direction.
March 5th, 2009 at 8:40 am
Outstanding takedown of an appalling scheme. Divide and conquer is the tactic Kentucky politicians use to keep our state poor, stupid, and begging them for goodies.
We will have great difficulty making real progress as a state until we shut down the whole economic development “tax incentive” program. It’s just too much power for politicians and too wasteful for taxpayers.
March 5th, 2009 at 11:49 am
Zed and Ray, have you guys ever just asked straight up what amounts of money would make Kentucky purses competitive without the yoke and potential corruption of racinos? Is KEEP too owned by the ‘Gaming” industry to change course?
March 5th, 2009 at 12:59 pm
Pony Ho … I’m not sure I quite understand your assumption or question. As for KEEP, this is the first time I’ve heard that it’s “owned” by gaming interests. It’s a broad-based horse industry organization that is simply trying to level Kentucky’s playing field with that in many other states. And where is the additional purse money going to come from to make Kentucky’s purses competitive without VLTs or slot machines?
And DLP…..I don’t think there’s anything in Kentucky’s constitution that guarantees the governor free TV time in the Derby winner’s circle. Why not put someone in there who cares about the industry and has actually done something for it? Any suggestions….?
March 5th, 2009 at 2:00 pm
Ray, the money could come from the General Fund ,and KEEP’s profile was invisibility until the issue of slots became the focus of those like Brer Jones and Tracy Farmer and that ethics 527 which helped elect Beshear. I just think that if things are so dire that Kentucky’s horse racing industry is dying ,that a plan B should be forthcoming because right now I don’t see slots selling in Kentucky. So, how much to keep Kentucky’s race horse business competitive? PS They can ALWAYS find the money in Frankfort when they want to!!!
March 5th, 2009 at 5:07 pm
Pony Ho I see your point and I’ve been told by a lobbyist that there’s no chance of slots in Kentucky for years and now casinos are closing down all over the place .Kentucky late to the party again. Horse racing advocates need to change course or quit crying.
March 5th, 2009 at 7:47 pm
How many casino operations are going down with Stronach? Any?
April 4th, 2009 at 10:00 am
I don’t follow what was just posted.