By Ray Paulick
How many times have we seen this happen? A jockey, thinking he is on a “live” horse but with nowhere to go, makes a sudden lane switch in tight quarters at the top of the stretch, bumping or impeding another horse in the race. Oftentimes the “live” horse turns out to be a dud and is outrun to the wire, finishing out of the money. Because there is no need for an inquiry, the stewards scarcely give the incident a second look.
Sometimes, if the jockey in question is an apprentice or young journeyman, the stewards will call him or her in the next racing day to review the incident in the film room. Occasionally, the jockey might get a fine or suspension. Far too often, these incidents pass without any warnings or repercussions to the jockey. No harm, no foul, the thinking goes.
But then we have a situation in which there were severe consequences, as in Saturday’s Arlington Matron at Arlington Park near Chicago. Jamie Theriot, riding Sky Mom, was tucked in along the rail, right behind the leader, and anxious to let his horse run. Even though Rene Douglas and his mount, Born to Be, was racing shoulder to shoulder with Sky Mom, Theriot forced his way out, jostling with Douglas’ mount, and resulting in Born to Be clipping heels, throwing Douglas to the ground, and then rolling onto the fallen jockey and causing severe damage to his spine.
Moments later, the horse on the lead that Theriot was so impatient to pass, drifted off the rail while tiring, providing enough room to drive a Mack truck through. By then, however, it was too late. The damage had been done. Born to Be suffered a fatal injury, and Douglas likely had his highly successful career cut short. There’s a very good chance he’ll never walk again.
Theriot was only riding the way stewards in too many racing jurisdictions allow him to ride. Watch the replays from any track on any given day, and you’re likely to see similar moves by other jockeys — some with less experience, others with more — than the 30-year-old Theriot.
Stewards who don’t pay attention to these incidents, who live by the “no harm, no foul” philosophy, are like the referees in a basketball game who don’t call many fouls, who “let the kids play,” at least until things get out of control. The stewards who let these incidents pass, just as much if not more than Jamie Theriot, are to blame for the accident that so severely injured Douglas.
Theriot got a 30-day suspension for his actions in the race from the stewards at Arlington Park. It’s a moot point now, but I’m curious if there would have been any disciplinary action taken against Theriot had Born to Be not clipped heels and fallen after being bumped, and Douglas not been injured. Would the same move off the rail by Theriot, but with no accident and death to a horse and injury to a jockey, have resulted in a 30-day suspension? I don’t think so.
The Illinois Racing Board stewards refused to discuss the incident with the Paulick Report or with other reporters. It is part of racing’s secret society, the one that says the public has no right to know what these “judges” are seeing and thinking during or after the running of a race. In many racing states, it’s virtually impossible to find out if stewards have taken action against jockeys, trainers or other licensees, even though the rulings are a matter of public record.
By contrast, racing officials in many international jurisdictions routinely file in-depth stewards reports on every race they see. It is part of the culture in those countries that the racing public has a right to know. In some countries, trainers are required to disclose riding instructions to racing officials in advance if they are likely to result in a change in tactics. In other countries, jockeys or trainers are quizzed when a horse has a reversal in form. Interviews with jockeys about lane changes are published. Click on the following hyperlinks to see some examples of stewards reports in Dubai, Hong Kong, Australia and Singapore.
There are at least two reasons state racing commissions across the United States should insist their stewards file similar reports.
First, it will indicate whether or not these officials are doing their jobs, or how well they are doing them. The racing public, as well as horsemen, will keep the stewards’ feet to the fire and make sure they are paying attention and performing their duties. Many of the currently unreported riding incidents may no longer be brushed aside.
Second, the betting public deserves to know what is going on in the races on which they are betting their money. This is, after all, a game with betting at the foundation, and diligence and attention by the officials who are paid to keep the game clean and on the up and up should go a long way toward building confidence among horseplayers and satisfying the public’s desire and right to know.
Racing has so many challenges now, many of which do not have immediate solutions. This is not one of those “unsolvable problems.” Disclosure and transparency by racing stewards is easy. And it’s the right thing to do.
Better performance by racing stewards, along with greater transparency, may not have saved the life of Born to Be and the career of Rene Douglas. But what is the downside to expecting more from those who are hired to enforce racing’s rules?
By Ray Paulick Is Betfair developing a conscience? The world’s leading betting exchange, which recently dipped its toes into U.S. gambling waters with its purchase of the horse racing network and account wagering company TVG, has reportedly made a voluntary contribution to the Levy Board, the statutory group that disburses betting revenue from bookmakers, exchanges and the tote in the form of prize money for British racing.
The Guardian reported on Friday that Betfair recently made a voluntary payment of almost $2 million to the Levy Board in recognition of profits made by the exchange from clients outside of the UnIted Kingdom betting on British horse racing. The amount represents 10% of Betfair’s profits on such wagers.
Betfair has contractual obligations to the Levy Board on profits made from British punters, but this is apparently the first time the exchange made voluntary payments on gains from overseas clients betting on British racing. Betfair is based on Malta.
“We have sent a check,” Betfair spokesman Mark Davies told the Guardian, “as there is no statutory mechanism by which we can pay the levy in respect of our international business. We are doing this because we support British racing.”
That begs the question of when Betfair will begin to share its wealth with U.S. racetrack and horsemen (or , more simply,“Where’s ours?” as Australian-based pedigree consultant Byron Rogers asked when alerting me to Betfair’s voluntary payment to the Levy Board.) Though the betting exchange says it does not accept any wagers from the United States, it does offer betting on American horse racing to its international clientele. Currently, to my knowledge, Betfair does not share any profits from those bets with American racetracks or horsemen’s organizations. Negotiations have taken place between Betfair and Breeders’ Cup officials, as well as with the Thoroughbred Owners of California, but no revenue sharing deals have yet been struck.
It seems only a matter of time before American racetrack and horsemen’s organization officials link overseas wagering on American racing via Betfair to domestic contracts involving TVG.
Those who want to learn more about the relatively brief and exceedingly successful history of Betfair, a company founded in 2000 by Andrew Black and Ed Wray, might be interested in Colin Cameron’s new book: “You Bet— The Betfair Story: How Two Men Changed the World of Gambling.” Click here for details.
By Ray Paulick
Few readers of the Paulick Report have probably ever heard of and fewer still have probably ever met Japanese photographer Hisae Imai, and that’s too bad. She was an international ambassador for Thoroughbred racing and breeding who helped racing fans in Japan and elsewhere see the magic and mystique of horses through her art.
Amazingly Miss Imai was, to my understanding, legally blind. It’s something I’ve never quite understood, how someone with such poor vision could have such an exquisite eye for her subjects and create some of the most beautiful images of horses ever produced.
I first met her at the 1993 Japan Cup, when introduced by the American-based photographer of Japanese descent, Shigeki Kikkawa. She spoke about as much English as I spoke Japanese, so our conversation was extremely limited. But she handed me a packet of post cards as a small gift, and they were the most stunning and unique equine images I had ever seen – before or since.
The photographs of Thoroughbreds racing across the plush green paddocks or the deep snowy fields in the northern Japanese island of Hokkaido were absolutely beautiful, and her racing shots were always sharp. But it was her artistic images that were unforgettable: the horses running through clouds were my favorites. She had a seemingly never-ending well of creativity that connected with people who love horses.
Miss Imai has been widely honored in Japan for her art, but I don’t think she was in it for the glory or the money (her commercial web site can be found here). She had a passion for the animals,
spending hours upon hours with them to get one special shot. She traveled the world, covering major international races on several continents. In the few extended conversations we had, she always spoke of her subjects with reverence and a heartfelt emotion.
I wish I could say I knew her life story, for I’m sure it was fascinating, but the language barrier always limited us to a greeting, a deep bow from Miss Imai, and a poorly executed bow in return from me. She was ever gracious; 15 years after our first meeting she continued to thank me for a small article I had written about her art in a series in Bloodhorse magazine on the hugely popular Japanese racing industry.
She was a short woman who almost always sported a hat from what appeared to be an unusual collection, and she had a wonderful laugh. The enormous lenses she lugged around on her shoulder almost touched the ground as she moved about, always looking to find the right place to get the perfect shot. She was never in a hurry, yet never seemed to miss anything, either. She was a perfect fit for the Japanese racing industry, whose fans have an intense interest in their Thoroughbred stars, and not just in cashing a winning ticket on them. They bought souvenirs featuring their favorite horses; photos like Miss Imai’s that looked into their soul and captured their personalities.
Miss Imai was well into her 70s when her heart failed her last Tuesday. Fortunately, her work will live on through the art she created over more than 40 years of a life dedicated to horses.
It’s sometimes easy to forget what’s at the heart of this business. In all the talk of medication, integrity, takeout, and the myriad of issues that are dealt with on a daily basis, we cannot lose sight of the fact without that beautiful Thoroughbred, we have nothing.
Hisae Imai knew that as well as anyone I’ve ever met.
By Ray Paulick
Desert Party won Thursday night’s UAE 2000 Guineas at Nad Al Sheba racecourse in Dubai, rallying from just off the pace under Lanfranco Dettori to score an "under wraps" victory over Regal Ransom and pacesetter Redding Colliery. Vineyard Haven, winner of the Hopeful and Champagne Stakes last year and runner-up to Midshipman in Eclipse Award voting, finished a distant fourth in his first start in Sheikh Mohammed’s Godolphin silks. The son of Lido Palace had previously been owned by a partnership that included trainer Robert Frankel and Los Angeles Dodgers manager Joe Torre before a reported $12-million offer from the ruler of Dubai.
The winner was making his second start in Dubai for trainer Saeed bin Suroor, coming off a half-length win Jan. 22 in the Ford Flex Trophy, a prep for the Grade 3 UAE 2000 Guineas. A 3-year-old son of Street Cry out of Sage Cat, by Tabasco Cat, Desert Party began his career in the United States for trainer Eoin Harty, breaking his maiden on Polytrack at Arlington Park in June, then beating three horses in the Grade 2 Sanford on a muddy Saratoga dirt track July 24. Desert Party finished a well beaten sixth behind Vineyard Haven in Saratoga’s Hopeful. Bred in Kentucky by David Smith and Steven Sinatra, Desert Party was a $2.1 million purchase at Fasig-Tipton’s February sale of 2-year-olds in training at Calder after Paul Pompa had purchased him for $425,000 at the 2007 Keeneland September yearling sale.
Runner-up Regal Ransom, a $675,000 purchase at the same Calder 2-year-old sale, broke his maiden at Saratoga in August but finished eighth in the Grade 1 Norfolk in his only other U.S. start. He also ran second to Desert Party in the Ford Flex, his first race in Dubai.
Vineyard Haven, purchased privately after winning the Champagne Stakes by 5 3/4 lengths, appeared a bit rank in the early going while racing to the outside and just off the early lead of Redding Colliery. He failed to respond when asked by jockey T.E. Durcan and was never a threat down the stretch of the one-turn, one-mile contest.
By Ray Paulick
There are a number of ways to look at the just-released World Thoroughbred Rankings, which were compiled by racing officials/handicappers from around the globe and published by the International Federation of Horseracing Authorities. Which country had the highest representation? What about the stallions that produced the highest number of world-class runers and the trainers who developed them?
The rankings of horses from around the world are updated throughout the year, and can be viewed at the Web site of the IFHA, which maintains historical rankings as well. Click here to see the complete list of 2008 World Thoroughbred Rankings.
Leading Sires of Horses
On World Thoroughbred Rankings
Sire
Ranked
Horses
Sire’s Sire
Farm Stands
Located
Galileo
8
Sadler’s Wells
Coolmore
Ireland
Montjeu
8
Sadler’s Wells
Coolmore
Ireland
Sadler’s Wells
8
Northern Dancer
Pensioned
Ireland
Danehill
7
Danzig
Deceased
Ire/Aus
Kingmambo
6
Mr. Prospector
Lane’s End
Kentucky
Chester House
5
Mr. Prospector
Deceased
Kentucky
Fuji Kiseki
5
Sunday Silence
Shadai
Japan
Encosta de Lago
4
Fairy King
Coolmore
Australia
Flying Spur
4
Danehill
Arrowfield
Australia
Rock of Gibraltar
4
Danehill
Coolmore
Ireland
Tiznow
4
Cee’s Tizzy
WinStar
Kentucky
Agnes Tachiyon
3
Sunday Silence
Shadai
Japan
Cape Cross
3
Green Desert
Kildangan Stud
Ireland
Giant’s Causeway
3
Storm Cat
Coolmore/Ashford
Kentucky
Grass Wonder
3
Silver Hawk
Breeders’ Stallion Station
Japan
Jet Master
3
Jet Lightning
Klipdrif Stud
South Africa
O’Reilly
3
Last Tycoon
Waikato Stud
New Zealand
Rahy
3
Blushing Groom
Three Chimneys
Kentucky
Street Cry
3
Machiavellian
Darley
Kentucky
Zamindar
3
Gone West
Banstead Manor
Great Britain
From a nationalistic point of view, American interests dominated the standings by placing 84 U.S.-trained horses on the list of Northern and Southern Hemisphere runners, aged 3 and up, who were weighted at 115 pounds or higher. That list is headed, of course, by the 2007 Horse of the Year, Curlin, who was weighted at 130 pounds, equal to the weight assigned the Irish-trained 3-year-old, New Approach. The number of U.S.-trained horses is nearly twice as many as the 43 from Great Britain making the list, but it only stands to reason since there are far more races and graded stakes in the United States than in any other country. Following Great Britain was Australia ,with 36; Japan, 28; France, 27; Ireland, 21; Hong Kong, 13; Germany, 11; United Arab Emirates, 10; South Africa, 6; New Zealand, 3; Spain, 3; Canada, 2; Brazil, 1; Hungary, 1; Italy, 1; and Turkey, 1.
Not surprisingly, Aidan O’Brien, the young master of Ballydoyle in Ireland, trains the most runners on the list with 14. O’Brien is private trainer for Coolmore’s John Magnier and his associates. Sir Michael Stoute and Saeed bin Suroor were next, with nine each, followed by Robert Frankel, 8, Andre Fabre, 7, and Mike de Kock, with 6.
From a sire standpoint, Coolmore was a dominating force, as the accompanying table shows, led by their trio of the pensioned legend, Sadler’s Wells, along with young stars Galileo and Montjeu, both of whom were sired by Sadler’s Wells. Each of the three was represented by eight horses on the World Rankings. Following that top trio is another stallion associated with Coolmore, Danehill, who shuttled between Australia and Ireland. He has seven horses ranked at 115 pounds or higher for 2008, and also is the sire of two of the others on this list, Flying Spur and Rock of Gibraltar.
The highest American-based sire on the list is the Lane’s End stallion Kingmambo, who is represented by six runners on the World Rankings. Next is Chester House, a son of Mr. Prospector who stood at Juddmonte Farm before his unfortunate and premature death at age 8 in 2003. He was produced by the preeminent broodmare, Toussaud, who died most recently.
The 2008 World Thoroughbred Rankings were compiled by the World Rankings Supervisory Committee (a panel of handicappers/racing secretaries affiliated to the International Federation of Horseracing Authorities) in Hong Kong in December 2008. The committee comprised :
Nigel Gray (co-chairman)
Hong Kong
Garry O’Gorman (co-chairman)
Ireland
Greg Carpenter
Australia
Gerald Sauque
France
Dominic Gardiner-Hill
Great Britain
Phillip Smith
Great Britain
Harald Siemen
Germany
Marco Rinaldi
Italy
Kazuhito Matano, Dr
Japan
Takahiro Uno
Japan
Dean Nowell
New Zealand
Mike Wanklin
Singapore
Roger Smith
South Africa
Melvin Day
UAE
Tom Robbins
USA
with the following also present as observers :
David Hunter
Australia
Steven Lym
Canada
Bahadir Gur
Turkey
Taylan Karaer
Turkey
* * * * * *
For further details on the World Thoroughbred Rankings (WTR), please contact :
Nigel Gray, co-chairman World Rankings Supervisory Committee
Head of Handicapping and Race Planning, Hong Kong Jockey Club
Telephone +852 2966 8337
Email nigel.c.gray@hkjc.org.hk
Garry O’Gorman, co-chairman World Rankings Supervisory Committee
Senior Flat Handicapper, Irish Turf Club
Telephone +353 5997 26596
Email gaogorman@eircom.net
Tom Robbins, chairman North American Ratings Committee
Vice President (Racing), Del Mar Thoroughbred Club
Telephone +1 858 792 4230
Email tomr@dmtc.com
Gina Rarick and I grew up as neighbors of sorts – she on a Wisconsin dairy farm and I amidst the cornfields on the Prairie State side of the Illinois-Wisconsin border. We both gravitated toward journalism and the Thoroughbred industry, though her life’s work carried her across the Atlantic Ocean to Paris, France, while mine only brought me a few hundred miles down the interstate to within a half-hour’s drive of Paris, Kentucky.
Rarick (pictured, left) began her career in journalism nearly a quarter-century ago at the Milwaukee Journal and she wound up as the turf writer for the International Herald Tribune in Paris, France, covering major race meetings around the world. She never completely lost her rural roots, taking riding lessons while working in Chicago and later in Paris. She got serious about horses in France, getting her jockey’s license and riding into the winner’s circle in her first race in 2001 at the age of 38.
One year later, Rarick took out her trainer’s license, juggling a small stable with her journalism career, finally giving up the latter in 2008 to work full time as a trainer in Maisons-Laffitte. She hasn’t total abandoned writing, however, maintaining a frequently updated
blog at her web site, www.gallopfrance.com. You can contact Gina at grarick@gallopfrance.com.
Rarick has been reading about American racing’s problems and offers her international perspective in the following commentary, arguing that the Thoroughbred industry in the U.S. needs a strong central governing body. Let us know your reaction to Rarick’s assertion in the comments section at the end of this article or by taking the Daily Paulick Poll, found on the left-hand column of the Paulick Report home page. – Ray Paulick
By Gina Rarick
There has been endless debate over the past year about how to save racing in the United States, and the focus has turned lately to how to pay for it all and who gets what size piece of an ever-dwindling pie.
For my money, cleaning up the sport and turning the focus back to the well-being of the equine athlete is the first and only way to go forward, but for those who insist on dwelling on the business model, I’d like to offer a little international perspective that may be of use.
In France, where I train, the betting handle has nearly doubled over the past decade. It rose to 9 billion euros in 2007, the most recent year for which figures are available, from 5.5 billion euros in 1997. In the United States, the handle fell to 10 billion euros in 2007 from 13.7 billion in 1997. The figures are from the
International Federation of Horseracing Authorities, which converts all figures to euros for ease of comparison. The takeout in France fell to 26% in 2007 from 30% in 1997, while in the United States the takeout has been steady at about 21%. Both countries return about 8% to the sport.
In Great Britain, things are far more complicated because of the bookmakers. The overall betting handle rose to 15 billion euros in 2006, the latest numbers available, from 7.5 billion in 1997. But most of that betting was done with betting exchanges or bookmakers, who return just 1% to the sport, compared with the already-paltry 4% from the pari-mutuel Tote system. Overall takeout fell to 16% in 2006 from 22% in 1997.
Lies, damn lies and statistics. What does it all mean? First off, bookmakers and any sort of fragmented market are mortal for the sport.
Racing in Britain is in horrible shape, with breeders producing far more horses than the sport can support, counting on a lucrative export market that is drying up. The average purse in Britain last year was 15,000 euros (and that’s the total purse, not the win prize). But that tops the average 12,000 euro purse in the United States. In France, where the pari-mutuel PMU system has a monopoly on betting, the average purse was 21,000 euros.
One of the big arguments that bettors make is that lowering the takeout will increase the betting handle. But the takeout in the United States has remained constant for the past decade, while the handle has fallen.
True, the takeout in France and England has dropped, and the handle has risen. And it’s also true that big players are cognizant of this sort of thing. I’m a trainer, not a gambler (or at least not a serious one), but it’s my impression that most casual bettors, and certainly new, small players, pay absolutely no attention to the takeout. They’re here for the spectacle and the horses. When the pretty gray filly shatters her ankles and is euthanized on the track, they’re disgusted and they’re not coming back.
And as much as we like to think the whales run the sport, it’s the small players that provide the lifeblood. In France, the average bet last year was 11 euros; 40% of the players were women, and one in four were under 35 years of age. The PMU operation in France has a stunning marketing campaign, and the daily “Quinte Plus” handicap, where the object is to pick the first five past the post in order, has a huge national following. Many people who play don’t know beans about horses – they pick random numbers. That bet alone – offered on one race a day – was responsible for 23% of the handle last year.
The other misconception seems to be that the sport needs to draw fans to the track. Again, as a trainer, I would love to see more people in the stands other than the 10 guys and a cat that show up on any given day here in France. But the numbers in the United States and France show us that most people prefer to bet at home or at off-track facilities. In the United States in 2006, only 11% of the betting was done at the track, compared with 39% in Britain, where people have to show up to get the best odds from the on-course bookies.
In France in 2006, only 2% of the bets were made at the track. I’m not kidding. The only people who show up here are the ones who have to actually saddle the horse or ride it. But advances in technology and ever-better television coverage (at least in France) make it too enticing to curl up on the couch and bet by remote control. Accepting this, rather than trying to change it, seems the only logical way to proceed.
The powers that be in racing – both in France and abroad – seem to be focusing on the top end of the game rather than the bottom, which feeds the top. Your average race-goer (or racing couch potato) doesn’t know the difference between Curlin and a 10,000 euro claimer. These guys want to see full fields to make the betting interesting. Sure, it’s nice to have a good story with a horse running in Group or Grade 1 races to use as a marketing tool. But those stories are few and far between these days, and concentrating on building up only those top races, at the expense of the bottom end, will further eat into the handle.
No one wants to encourage breeding unsuitable horses, but maintaining a good program through all levels will keep people betting. I have rarely seen a card anywhere in America that features seven races with at least 10 runners each. In France, there have been hundreds of horses eliminated from spots during the Deauville winter season this year because of a glut of entries.
Rarely is there a race that doesn’t have a full field of 16.
I’m not saying we have a racing Utopia over here. Every jurisdiction has its problems, and ours is the cold north wind blowing from Brussels that is pushing France to open the betting monopoly. If this happens, our purses are likely to go the way of the rest of the Continent, and the sport will begin to die, just as it is in Germany, Belgium and, unfortunately, Great Britain. As it is, runners from all those countries are regular visitors here, trying to earn some money the old-fashioned way – by crossing the line first.
I can’t see how American racing can save itself without some sort of nationwide governing body. I know this idea is anathema to many and downright offensive to some, but I can’t see how the sport can survive with a different set of medication rules and different betting systems for every state. Only with a unified front — and a total ban on race-day medication — can the United States truly participate in the sport on an international level and build confidence at home.
Teruya Yoshida’s Screen Hero pulled off a huge upset in the 2,400-meter Japan Cup at Tokyo Racecourse on Sunday, taking the lead in the final 100 meters and holding off a fast-closing Deep Sky, winner of this year’s Japanese Derby. The 4-year-old filly Vodka, winner of the Japanese Derby of 2007 and the wagering favorite in the North American pool, was third. A third Japanese Derby winner, Meisho Samson, battled for the lead into midstretch but faded late.
A 4-year-old son of the Silver Hawk stallion Grass Wonder out of Running Heroine, by Sunday Silence, Screen Hero was bred in Japan by his owner’s Shadai Farm. He is trained by Yuichi Shikato and was ridden by Italian jockey Mirco Demuro, who one day earlier was issued a 30-day license to ride in Japan. Demuro has ridden at Japan Racing Association tracks on a temporary license every year since 1999.
The win was the fifth in 17 starts for Screen Hero and his first in a Grade 1 race. He was coming off a victory in the Grade 2 Copa Republica Argentino over the same Tokyo grass course. Click here to see past performances for the race.
Screen Hero covered the distance (about 1 ½ miles) in 2:25.50 and paid $122.80 to win in the North American pools. The race was televised in North America by TVG.
There were no North American horses in the race following the scratch by trainer Neil Drysdale of Canadian International winner Marsh Side due to a fever.
After 48 hours of being told horse racing needs newer and younger and more female fans, Ray Paulick is mad as hell and he isn’t going to take it anymore. He wants to know, among other things: Why does racing hate us old men? Ray’s gavel to snooze button coverage of the 32nd Asian Racing Conference takes a diversion today as he offers stream of consciousness (when conscious) coverage of the final programs from Tokyo, which touch on television, wagering, and the dreaded S.S. (synthetic surfaces).
CONFESSION: I’M AN OLD (55) MAN and am feeling a bit lonely. Racing doesn’t want me anymore. It seems more interested in younger people, men with fulls heads of hair, and women who giggle and love horses but have never bet more than $2 to show on a race. What have I done, to borrow from the Aussies, to hack you off? All I and my fellow old men do is go to your tracks, buy your lousy food, bet till our pockets are empty, and fall asleep on the train on the way home. Yet you would rather cater to people who don’t even like your product. Where’s the love, racing?
It’s not just an American problem, this fixation racing has on replacing the dead with people with a heartbeat. It’s going on in Australia, Hong Kong, Japan. Everywhere horses race, the marketers hate us old men.
Just yesterday, a producer from Fuji television, which broadcasts into 90% of Japanese homes, was lamenting that his Sunday racing telecasts have a demographic that is so old that he can only sell advertising time to rocking chair and walking stick manufacturers. Actually, it isn’t quite that bad, but old men were making up such an increasing percentage of the Sunday racing programs’ audience over the past 10 years (from 47% to 63%) to the point that producers decided to shake up the broadcast and bring in people who knew nothing about racing but had some connection with celebrity. There’s hope for David Hasselhoff over here in Japan!
Worse yet, Fuji’s racing telecast ratings declined over those 10 years, from 7.7 (about 3 million households) to 5.0 (about 2 million). Fuji’s metrics people are very clever, measuring their audience segments into eight categories (two youth, and three each by age group for male and female). The "old man" portion of the audience remained the same over those 10 years, with losses coming in the younger and female segment. So Fuji decided to take it out on the old men by providing programming that was irrelevant or irritating to them.
But wait. The Fuji TV producer, Masanari Funaki, said the younger generation is watching all of television less, not just racing telecasts. They have discovered the Internet, video games and mobile phone networking. Nevertheless, Fuji opted to ignore the old men and provide less information about handicapping and gambling (which us old guys like) and show more personality features, make the program more entertaining and focus more on "the sporting aspects of horse racing."
His reason? "We wanted to catch some of those sports fans who might be channel surfing," Funaki said. "We think it’s very important for viewers to see horse racing programs in the same way they see other sports programs, so we don’t overpromote the gambling aspect and get viewers to see the human element. We show more about jockeys, their histories and their background."
What a fool, I thought.
Not so fast, my friend. "This year’s racing telecast ratings are up," Funaki said.
Fuji TV also developed a Saturday night midnight racing telecast that focuses on handicapping the Sunday race, using well-known handicappers from six Tokyo newspapers who scream at each other about how stupid they are.Kind of like the three talking heads on TVG. "Those programs are very popular with younger men," Funaki said.
In my country, Mr. Funaki, old men are asleep by midnight.
SOMEONE ELSE ON THE TELEVISION PANEL SET UP A HORSEY PINATA representing the American racing industry and people took turns whacking it and reminding us of how stupid we are in the United States.
Those guys from the United Kingdom and Australia are so smart, just because they know how to tell time. Smug. They have a 3 o’clock race at Ascot and a 3;15 at Lingfield in the UK, and in Australia (where the clocks are upside down), they manage to televise about 12,000 horse races every day without having any post times overlapping with one another. The reason? Apparently, they can maximize wagering by coordinating post times for the races.
In America, experience has shown that it’s much better to have three races from major tracks all start at exactly the same time, so that simulcast or account wagering customers have to choose between races rather than bet on all three. It’s called maximizing stupidity, or something like that. "America’s most famous racetracks have races going off right on top of each other," said Brendan Parnell, chief operating officer for Australia’s Tabcorp. "They are cannibalizing or eating each other’s lunch and missing great opportunities. People are getting shut out."
Whack! Take that, you damned Yankees.
OLD MEN AREN’T THE ONLY ENEMIES OF RACING. So are governments, who set and enforce ominous hurdles that keep the sport from seizing on some great opportunities, such as a "global bet." (Aren’t most governments and racing regulatory bodies run by old men? Yes!)
John Stuart, who carries the creative title "director of international marketing and operations" for the make-believe Phumelela Gaming and Leisure Co. (what, there really is a place called Phumelela?), presented a science fiction video about a global horse bet called the "Universal," where fans in any country pick the first eight finishers of a big international race like the Japan Cup and create a betting pool in excess of a billion dollars. "Had Barack Obama been watching that," Stuart said, "he’d be shouting ‘yes, we can,’ ‘yes, we can.’ So should we be."
Of course, that will never happen because too many governments have protectionist laws prohibiting commingling of betting pools from one country to another. Plus, the American totalizator companies would still be accepting bets after the race is over.
A SERIES OF PRESENTATIONS ON MEDICATION featuring dreadfully boring attorneys and veterinarians has just about everyone in the room nodding off until a snappy Q&A segment near the end when the moderator directed a question about illegal drugs to Brian Stewart, head of veterinary regulation and international liaison to the Hong Kong Jockey Club. Specifically, Stewart was asked by Australian turf editor Bart Sinclair whether blood-doping agents like EPO, which have plagued cycling and some other sports, are being used in racing. Stewart nodded to the affirmative. "How big a problem is EPO?" Sinclair asked. "I’d say it’s widepread," Stewart said. That sent many Asian Racing Federation delegates straight to the bar for a stiff one.
THERE ALSO WAS MUCH DISCUSSION ABOUT HANDICAPPING INFORMATION. What should be given to these young fans who don’t exist yet? How should we deliver information to them? Gift wrapped with local currency, I think.
Howard Wright, senior editor for England’s Racing Post and one of the people in the media who "gets it," had me going there for a minute when he said the racing industry in Great Britain actually wants to make money from newspapers for providing information about horse racing to fans. Good one, Howard. They can’t be that arrogant over there, can they? Seems like the industry should be paying newspapers to promote the sport, not the other way around.
Howard, like me, is a slightly grumpy old man who does see the need for racing to replace those of us who will soon be pushing daisies. He also understands these young kids today don’t know how to read a newspaper, but doesn’t think the traditional ways of providing handicapping information (Racing Post, Daily Racing Form) should be abandoned. "One size fits all no longer applies," he said. "The media has to find ways of satisfying its traditional horse racing audience while also accommodating the PlayStation generation, who want their involvement presented in small pieces and want it now." It’s time for "Racing Form Lite" he said. Tastes great, less filling!
Howard also mentioned the budget cutbacks in most daily newspapers (e.g., they are dying faster than us old men), and suggested that racing isn’t alone in having its editorial space reduced. "Racing will never beat football," he reminded. Someone got out the Pinata again and started talking about how American newspapers have stopped covering horse racing altogether. Whack, whack, whack!
SOMEONE SUGGESTED THIS NEW THING CALLED THE INTERNET might be a good way to deliver information to these newbies. That’s where the kids are hanging out these days, aren’t they? To strategerize about this, the Asian Racing Federation found a really smart kid, Koichi Yamamoto, who must be the youngest senior research director the Dentsu Institute has ever had. (He got his MBA from Columbia University when he was, like, 12 years old.)
Yamamoto outlined how blogs and social networking have changed things and talked about how businsses need to reach "new influencers," people who are constantly communicating online by networking and commenting on blogs and never breathing fresh air. These "new influencers" might not be as informed as us old guys or as opinioned; in fact, they are more easy to influence than us stick in the mud types, Yamamoto said. But don’t inundate these "new influencers" with gibberish, he said, because they are adept at filtering out useless crap. "Only the most attractive and relevant information gets through," he said.
If the message gets through, however, Katy bar the door. Word of mouth is the new king, he said. Social trends spread at lightning speed. "People want to tell friends about things that at least some people know, but not too many people know," Yamamoto said. "The topicality window opens faster and closes faster."
Yamamoto said the newbs are hip to the trick of marketing people. "Increasingly sophisticated consumers can easily see through marketing schemes," he said. "Relationships with these consumers is more important than ever. Strong relationships turn information-filtering consumers into information-hungry consumers."
Can I get a translator please?
"WHAT IF STEVE JOBS WERE TO ENTER THE RACING INDUSTRY? How would Apple innovate the customer experience?" Those questions were asked by Edward Tse, a McKinsey and Co. consultant to the Hong Kong Jockey Club who encouraged racing associations to think more innovatively than they have done in the past. Tse reviewed the depressing statistics that show pari-mutuel handle losing altitude and asked if it is sufficient to simply launch new bet types, which many racing associations have tried. "Or," he asked, "do we need a new approach?"
He then listed six building blocks needed for innovation: 1) tax reform and product pricing; 2) customer segment expansion; 3) channel innovation and expansion; 4) product and service innovation; 5) image or brand building; 6) customer relationship management/loyalty.
Savvy guys like Tse do all sorts of analytics, and he said the most valuable ones are predictive in nature: in other words, get a swami to crunch your numbers. Short of that, he said, try and get predictive analytics that answer the following questions: What’s the best thing that can happen? What will happen next? If these trends continue, why?
Tse said companies that do this well include Capital One, the annoying credit card company that fills your mailbox with junk every day, the consumer electronics store Best Buy (news of their current problems hadn’t reached Tse yet), and the Harrah’s casino company, which he said "revolutionized the casino industry by adopting highly analytic customer focused innovation."
Harrah’s, he said, separates all of its customers into segments by profit potential, drives those customers to aspire to a higher level, optimizes placement of its slot machines in the best locations, and uses customer satisfaction measurements to shape their business plan. The whole point of this is to separate the customers from their money, and Harrah’s is extremely good at that.
Back to racing. Tse insisted that new approaches to the customer experience are required to modernize the industry. Following Harrah’s lead, racing associations must use deep customer segmentation and analytics as the foundation for innovation. "For most racing organizations," Tse said, "this will require a different mindset and new skills."
Unfortunately, many people with those skills end up working at a company like Apple.
DO LOWER PRICES INCREASE SALES? The Hong Kong Jockey Club was curious to see if the cost of a bet could affect how much is wagered, so they tried something foreign to most horseplayers: they lowered prices. Specifically, the HKJC offered rebates for losing bets made by some of their highest-rolling customers. The net result: players who received rebates, thereby effectively lowering their takeout, wagered more.
It wasn’t that easy, though. To give rebates, the HKJC had to cut a deal with government that gave them the flexibility to offer innovative programs like rebates. The agreement worked both ways, with the HKJC guaranteeing HK$8 billion in annual revenue to the government, more than they’d gotten the previous year. The HKJC wanted to expand the number of race days from 78 a year and the number of commingled simulcasts from 10. The government didn’t budge on those requests.
The rebates were for losing bets of HK$10,000 and up (about US$1,200) on win, place, quinella and quinella place wagers. To coincide with the introduction of the bets, the HKJC convinced 500 bettors from different wagering segments (frequent, occasional, big bettors, small bettors) to allow their betting to be tracked for analytical purposes. Not surprisingly, big, frequent players took advantage of the rebates the most, effectively lowering takeout from 18.7% to 16.9% and increasing the volume of their bets by having more money to churn. For the occasional and smaller players, the rebate and lure of lower takeout made little or no difference.
The rebates were funded by the HKJC, which looked at them as a marketing investment in their future. Handle increased, but not to the extent that it paid for itself. Bill Nader, the former New York Racing Association chief operating officer who is now executive director of the HKJC, said the organization hopes it will pay dividends in the long run.
MR. SEKIGUCHI, WHERE ARE YOU? Fusaro Sekiguchi, the flamboyant Japanese businessman who raced Fusaichi Sekuguchi to victory in the 2000 Kentucky Derby and has been a major buyer at foal and yearling sales around the world over the last decade, has been keeping a very low profile in his native Japan recently.
Some Japanese racing insiders have said he has sold most of his horses and others have suggested the global credit crunch may have dealt him a severe blow. Last time I saw him was in the paddock of the Tokyo Race Course at the Japan Cup a couple of year ago, where he was nattily dressed as usual. Sekiguchi has had some ups and downs in his racing and business career (famously failing to pay Keeneland on some yearling purchases prior to buying FuPeg for $4 million, and later getting fired by the company he started), and he always seems to land on his feet.
Here’s hoping we see him in the winner’s circle again real soon.
DARLEY JAPAN FARM EXPANDING: Darley Japan Farm, the Japanese breeding entity on Hokkaido owned by Ken Mishima, has expanded with the purchase of Nishiyama Farm, whose previous owner raced Paradise Creek, winner of the Eclipse Award as outstanding turf male in 1994. Though it’s a bit confusing, Darley Japan Farm and Darley Japan (which stands stallions) are separate entities, in part because of the licensing peculiarities of the JRA that require Japanese owners of breeding farms.
FINALLY, THE GRAND FINALE THAT WE HAVE BEEN LOOKING FORWARD TO…the "cage match" discussion arguing the merits of synthetic surfaces.
Ian Pearse of Pro-Ride surfaces of Australia, bragged on the results of the Breeders’ Cup at Santa Anita while Michael Dickinson, waiting for his turn to speak about his creation, Tapeta Footings, sat patiently onstage sticking pins into a voodoo doll that resembled Ron Charles, who chose Pro-Ride over Tapeta for Santa Anita, host of the 2008 and 2009 world championships.
Raji Jayaraju then sang the praises of the synthetic surface installed at the Singapore Turf Club track where he is senior manager. Singapore’s new track has been very useful because of the heavy rain they get in Singapore that often leaves the turf course extremely soggy. Jockeys and trainers said in a video that the synthetic track was terrific (under threat of a caning?).
Dr. Toshiyushi Takahashi, a representative of the JRA, presented some scientific research that showed why synthetic tracks might be safer than Japanese dirt tracks. The JRA installed synthetic material on one of its training tracks and compared hoof impact between dirt and synthetic tracks, measuring the velocity of impact and time of hoof stabilization at impact. Dr. Takahashi summarized by saying that synthetic tracks are more stable and provide more traction than dirt or wood chip tracks, and are more constant at the time of hoof landing.
But that science is meaningless in the face of comments from turf writers and horse players who are more concerned with tradition and form than the safety of horses.
"To those of you who train, for those of you who’ve got sand and dirt tracks, please switch to synthetics," Dickinson said. when asked about safety. "Whether you go with Tapeta, Pro-Ride or my good friend Martin Collins’ Polytrack, please change. It’s much safer for the horses." Apparently, someone "got to" the panelists and said no name calling. Cage match cancelled.
That’s it from the Asian Racing Conference. I’ll summarize what I’ve learned over these last few days in a forthcoming commentary.
The Paulick Report caught up with former New York Racing Association chief operating officer Bill Nader, who since April 2007 has served as executive director of racing for the Hong Kong Jockey Club. Nader is attending the 32nd Asian Racing Conference in Tokyo, where he gave a presentation on the Asian Racing Federation’s International Circuit.
Ray Paulick: Bill, can you briefly describe your responsibilities at the Hong Kong Jockey Club? Bill Nader: As executive director, I oversee all racing operations, and that extends to the laboratories, veterinarians, farriers, grooms, work riders, handicappers, racing stewards, racing registry, marketing, public affairs and also the international races. It’s a big operation. There are about 1,800 people reporting directly or indirectly to me, and we have tremendous people in the key positions from all over the world, from Hong Kong, Great Britain, Australia and New Zealand.
What’s the best part of your job? The popularity of the sport makes it contagious and gives you a reason to want to get up every day. There’s never a dull day. It’s the major sport in Hong Kong. There are single events that may be bigger, but in terms of something sustainable over the course of the year racing is the only game in town. One example: circulation of a daily newspaper increases by 30% on a race day.
Your biggest challenge? The ability for us to grow. It’s one thing to get where we are and sustain our position, but to take it to the next level. We think we can do that, but we need government support. We have 78 race meetings and we have to guarantee HK$8 billion (about US$1 billion) in revenue to the government. My two years have been lucky, we’ve been up in turnover. We’ve been able to grow from HK$60 billion in handle to HK$68 billion last year. Tax rate effectively is 73% of gross margin, before we pay prize money or overhead. We can only simulcast 10 single races per season and want to expand that but have been unsuccessful so far. There’s limited stabling and no breeding industry, so no room to expand. We have an active population of just over 1,100 horses. To get through 735 races, 90% of the races on turf, with those horses, it’s a challenging process.
What is the major difference between working at NYRA and working for the Hong Kong Jockey Club? Resources. Not just money but the depth of personnel at top levels all the way down. The Hong Kong Jockey Club is arguably the most professionally run racing organization in the world. It’s a finely tuned machine. Its can-do spirit is really evident day by day taking tough assignments and meeting the challenge, whether it’s working on the Olympic Games or the international races. The work ethic here, too, is amazing. Our employees work 11 or 12 hour days and won’t go home until they feel their job is done.
What do you miss the most about the U.S.? I miss a lot. Italian restaurants, sports, Broadway shows. There are no major league sports here. Overall there’s a lot of good things about Hong Kong, so it’s a trade-off.
How do you spend your leisure time?
I don’t have a lot of it. During the 10 months of the racing season, we’re fortunate to get one day off a month.
What do you know today you didn’t know before you came to Hong Kong?
It’s been amazing. It opens your eyes to come and see racing presented in a different system. The whole approach is different. You learn by just opening your eyes. I learned early on not to jump to any conclusions and get a feel for the methodology that’s employed in this part of the world. A lot of things done here we can’t duplicate back in America.
Are there things that we can do better in America? The position on medication is interesting. Talking to our vets, all of the countries in the Asian Racing Federation with the exception of Saudi Arabia have no medication. We have horses that run back in a week, sometimes in three days, no Bute, no Lasix, no medication. Even 2-year-olds in the States that run on Bute and Lasix, I wonder now if any of that is necessary. In this part of the world the climate can be tough, yet horses run as often or more often as they do in the states. America needs to take a hard look at medication policies.
Have you made any cultural faux pas in your new home? I’ve been very careful, though I was a little sloppy with my chopsticks at first. I have learned some customs. The number 8 is lucky, 28 is lucky. Four is death. In fact in a lot of office buildings if you get on a lift there is no fourth floor.
Any message for the racing public in the United States? The message would be that they try to open up and appreciate racing from this part of the world, much like I wish Asian people would appreciate American racing. When I got here in late April 2007, there was very little interest in the Kentucky Derby. It was a major event, and this is a horse loving part of the world, yet the biggest interest was that the queen was going to attend the Derby. There was no interest in the horses.
By Ray PaulickTo hear Carl Pascarella tell it, you’d think corporate marketers would have lined up from Louisville, Ky., all the way to New York’s Madison Avenue to bid on the Triple Crown sponsorship that Visa USA dropped in 1995 after a 10-year run. The relationship between the Triple Crown and Visa ended the same year Pascarella retired as the credit card giant’s chief executive officer.
Pascarella, speaking at a Tuesday afternoon session on Marketing & the Customer Experience at the 32nd Asian Racing Conference in Tokyo, used the familiar introduction from ABC’s “Wide World of Sports” to describe sponsorship of American racing’s highest-profile series, which begins with the Kentucky Derby on the first Saturday in May, continues two weeks later in the Preakness, and concludes three weeks after that with the Belmont Stakes.
First, there is the “thrill of victory,” Pascarella said. “From a sponsor’s standpoint, nothing gives you more of a thrill than the Kentucky Derby winner driving down the Preakness stretch with a three- or four-length lead and knowing, as a sponsor, that you’ve got legs, with another three or four weeks to promote in and outside the world of sports. It was something we could use from April on through to June.”
On the other hand, he said, there is “the agony of defeat. In six of eight years we had horses that won the first two legs and didn’t win the Belmont.” That defeat eliminated the possibility of further promotions congratulating the winner of the Visa Triple Crown Challenge and the accompanying $5-million bonus, as well as any additional races the winner might compete in, including the Travers Stakes or Breeders’ Cup.
The Triple Crown was one of several world-class sponsorships for Visa in the sports and entertainment world. “Each one of them,” Pascarella said, “had a common focus on a couple of very important things: understanding who their fan and audience was; and secondly, they understood how to drive value to that fan base. They had an unwavering commitment to both things. At Visa, we looked more to sports as being the pinnacle of entertainment for fans, or our customers. No other form of entertainment brings the same kind of excitement or elation as sports does.
“The sports that are best for our sponsorship,” Pascarella continued, “put the fan in the center of the activity. They create deeper relationships because it’s a fan-centric approach. They give the fan a way to get into the event itself.”
Pascarella recalled how much value he was able to give to Visa’s best customers — bankers and merchants — who would come to Louisville for the Kentucky Derby. “We’d bring them on a backside tour of Churchill Downs on the day before the Derby,” he said. “They’d see the horses who would be racing in the Derby the next day, meet trainers like Bobby Baffert and D. Wayne Lukas, and these people felt like they were part of it all. We were giving them something special because of a sponsorship that was invaluable. That’s what we were paying for, that extra feeling that allowed our customers to get inside the sport.
“We’re not looking at fan numbers, we are looking at fans who are engaged, fans who will be engaged with us and our products and services,” Pascarella said. “We look at selecting and evaluating sponsorships based on being able to drive consumer behavior. How have we lifted the brand, how have we changed behavior, how have we made the consumer closer to us as a result of the association? The more we win, the more we put into a sponsorship. But it’s not just about the money. It’s about the relationships you can build with your sponsor and what you can give your sponsor in return. You need mutually beneficial objectives.”
Interestingly, while Visa dropped its sponsorship of the Triple Crown, it entered into a five-year agreement with Churchill Downs to sponsor the Kentucky Derby. No company has stepped forward to sponsor the Triple Crown since Visa’s exit from the series. One reason may have been a decision by the New York Racing Association to end its association with NBC Sports, and put the Belmont on ABC/ESPN. Another may have been fragmentation within the three tracks that comprise Triple Crown Productions and a power struggle over how sponsorship revenues were divided. Currently, of course, they have nothing to divide from a Triple Crown title sponsor.
Pascarella, now an executive adviser to TPG Capital, also cautioned racing associations that the current economic climate will cause nearly every major corporation to reevaluate its advertising, marketing and sponsorship budgets. “Every economist projects a very deep and long recession,” he said. “That means your sponsors are going to be under a great deal of pressure. You need to reach out to them, even though your revenues also are going to be under pressure. If you reach out to them, and say, ‘How do we work together to get through this?’ that will go a long way.”
BRANDING GURU DAVID AAKER , professor emeritus of marketing strategy at the Haas School of Business at the University of California-Berkeley, talked about how racing can build its brand.
At a time when brand trustworthiness and quality perceptions of most brands are down significantly in the minds of the public, Aaker said there are opportunities to improve branding through increased energy. He cited the Nintendo video game brand as one recent phenomenon in the branding world. Five years ago, Aker said, Nintendo ranked 165th among brand names in Japan, moved up to 65th three y ears ago, fifth two years ago, and now ranks as the country’s leading brand, thanks to the energy created by the Nintendo Wii platform and games.
He cited five other very diverse brands that have energized themselves in recent years: 1) the Memphis Redbirds minor league baseball team; 2) the Indianapolis Motor Speedway; 3) PGA Tour golf; 4) Harley Davidson; and 5) Avon cosmetics.
All of those brands used one of two methods: energizing the business itself, or finding something with energy that is interesting and involving and attach it to the brand. “Both options are really powerful,” Aaker said.
The Memphis Redbirds, Indianapolis Speedway and Harley Davidson energized their brand by engaging their customers in multiple activities that built on the customer experience. The PGA Tour and Avon tied themselves to something with energy. The PGA Tour used Tiger Woods to its best advantage, and Avon linked its products to a breast cancer crusade and created the Avon Walk for Breast Cancer, with millions of people engaged each year. Similarly, Aaker said, Lowe’s home improvement stores attach their brand to Habitat for Humanity. In the case of Avon, he said, “Breast cancer is so important an issue and involving to the target audience that it provides Avon a way to get energy that it could never do through their products and services.”
Aaker said companies seeking to strengthen their brand should “find role models, companies in related or unrelated industries…someone who’s done it well with a brand people are talking about. What can you learn from them?”
In addition, he said, self-reflection is necessary. “What about the customer experience is boring or unpleasant? How can you mitigate that? What can be added to en rich and improve the customer experience.”
To find what he calls “branded energizers” like Avon’s breast cancer campaign, Aaker said companies should examine “what existing program has energy that fits your brand and can be connected to your brand…programs that aren’t part of the experience people are currently buying? What new program with energy can be developed that fits the brand and can be connected to the brand?”
“You have one of the most exciting events in sports and entertainment,” Aaker said. “But you need to ask yourself, ‘How can I add energy to my brand?’”
TELEVISION ADVERTISEMENTS PROMOTING RACING around the world were shown to the group and audience members were asked to vote on their favorites. The ads were divided into five categories: Celebrating the Horse; Sex and Glamour; The Punt; A Good Laugh; and The Buzz.Most provocative were ads from Australia promoting sex and glamour. Other countries featured included France, Turkey, Japan, Hong Kong, Germany, Ireland and the United States (two ads from Santa Anita were featured). Details tomorrow on the winning ad.