Archive for the ‘International Racing’ Category

TOKYO, Japan– It’s not just the trains that run on time in Tokyo—the buses do, too

I arrived Wednesday evening at the Keio Plaza Hotel, the official press headquarters for the Japan Cup, after a 24-journey from Kentucky. Despite the lack of a good night’s sleep since Saturday, I still had that 3 a.m. jet-leg alarm go off in my head my first night here.

The itinerary for Thursday was to meet in the lobby for a 6 a.m. bus trip to Tokyo racecourse to observe the training of the five international horses in Sunday’s Japan Cup—two-time Breeders’ Cup Turf winner Conduit and Grand Prix de Chantilly winner Scintillo from Europe, and Joe Hirsch Turf Classic winner Interpatation, Northern Dancer Turf winner Just As Well and 2008 Canadian International winner Marsh Side from North America.

I walked into the lobby earlier than my customary five minutes late, asking the bell captain at precisely 6:01 a.m. if the Japan Racing Association bus had yet arrived. “It left a minute ago,” he said. I shouldn’t have hit the snooze button.

No worries. Shinjuku Station is just a five-minute walk from the hotel, and there’s a Starbucks on the way. But Tokyo, I discovered, is not an early-morning town. Starbucks wasn’t open yet, and for good reason. The streets are deserted at that hour of the day. This is, it turns out, a city that sleeps.

THE TRAINING WENT WELL ENOUGH, and the press conference that followed was predictable. Jonathan Sheppard may be the only trainer who spoke that would pass a lie-detector test. Each trainer (or assistant) of the five international horses was asked on a scale of 1-to-100 how his Japan Cup entry was doing. All said 100%, with the exception of Sheppard, who said “about 95%.”

A brief summary of the international horses:

Scintillo seems overmatched in here, but Richard Hannon is a trainer to be respected. The son of Fantastic Light is clearly a horse who likes a distance of ground, so he should be closing in the final stages of the Japan Cup. But a victory would shock me.

Conduit. Trainer Michael Stoute hadn’t arrived yet, but his assistant said the decision was made to run in the Japan Cup following a post-Breeders’ Cup evaluation of the son of Dalakhani’s condition. I have to think the travel from Europe and back for the Breeders’ Cup, followed by the trip to Japan, might take a toll. But he’s entering stud in Japan for 2010, and this is a chance for Conduit to go out in style in front of the breeders who will have the opportunity to support him at stud.

Interpatation. Trainer Bobby Barbara and owner Elliot Mavorah (pictured, right) seem to be having the time of their lives in Tokyo, and why not? It’s an all-expense paid trip for the horse and his connections, and it’s nice to see an owner and trainer who are clearly making the best of it. Mavorah profusely thanked the JRA for extending the invitation and said he hoped the horse’s performance justifies it. Despite Interpatation’s win over Gio Ponti on a deep, deep Belmont Park turf in the Joe Hirsch, he’ll be an enormous longshot on Sunday, and the ground will be firm. Someone asked Mavorah about the name, and he told a story about how he was an Orthodox Jew and was trying to build a synagogue and needed some type of legal interpretation. He wanted to name the horse “interpretation,” but that name was taken, so he purposely spelled it wrong and that name went through.

Just As Well. Wouldn’t a Japan Cup victory be an interesting tale for this 6-year-old son of A.P. Indy, who was off nearly two years while experiencing lameness that veterinarians never could fully explain. During that time, breeder George Strawbridge elected to get rid of Just As Well and Sheppard made a deal with his longtime friend and client to buy him. “It would be a shame for someone else to get him and be successful,” Sheppard said he told Strawbridge, adding that Strawbridge wins whenever Just As Well wins because he still owns the dam and some siblings. But a Japan Cup victory would still be a tough one to explain to the boss!

Marsh Side. He was the hard-luck horse of the 2008 Japan Cup when he was scratched from the race due a fever after arriving in Japan. Trainer Neil Drysdale thinks the 6-year-old by Gone West is best suited to large turf courses like Tokyo’s, along with the courses at Woodbine and Dubai. “He’s a big horse and doesn’t run as well on the American courses with their tighter turns,” he said. Marsh Side will stay in training in 2010, said Drysdale–who was accompanied to the podium by bloodstock agent Patrick Lawley-Wakelin—unless someone is interested in standing him at stud. “I believe he deserves a chance to be a stallion,” Drysdale said. Hint-hint!

NAOHIRO GODA IS MY GO-TO GUY on all matters pertaining to Japanese racing. He is a world traveler, savvy about racing and breeding just about anywhere, but a true expert on what’s going on in Japan. Goda said 2009 will be the 12th consecutive year that pari-mutuel betting on JRA racing will be down—despite numerous measures by the government entity to increase handle through an expanded menu, a rearranged schedule of Grade 1 races in the autumn, and even a reduced takeout promotion on some major races. In 2011, the JRA will be introducing a pick five wager (similar to pick threes, pick fours, and pick sixes in the U.S.).  Multi-race wagers have previously not been legal in Japan.

The big problem, Goda said, is that Japan’s trendy youth market is less and less interested in the sport of horse racing. They are more interested in computer games and other sports, especially soccer. Betting on soccer has been introduced in the last decade, and that’s hurt horse racing, too. One of the most popular bets on soccer is a computer assisted wager that eliminates any need to think or handicap.

Horse racing isn’t the only form of gambling that is suffering in Japan. Legal betting on motorboats and bicycle racing is down, too, and the Pachinko parlors (the closest thing Japan has to slot machines) are also off.

Despite the dire news about Japanese horse racing, it’s still a pretty popular sport, as evidenced by the throng of writers and photographers on hand for Thursday morning’s workouts and press conference. Tokyo’s daily sports newspapers are devoting several pages to the Japan Cup, despite the absence of a true Japanese superstar this year. It is still big business and Sunday’s Japan Cup will be sure to draw more than 100,000 people to Tokyo race course, and handle on the race will dwarf what is wagered on Kentucky Derby or Breeders’ Cup Day in the United States.

THE JAPANESE REALLY DO GET CAUGHT UP IN FADS. Just two years ago, when my wife Carol and daughter Meg traveled with me to the Japan Cup, we came across Tokyo’s first Krispy Kreme donut shop just to the south of the Shinjuku Station. We were amazed to see the DisneyWorld-like lines outside the story, complete with a sign telling the donut-hungry public how long the wait would be to get inside (it was 45 minutes when we walked by…and, no, we didn’t wait). This morning, when I returned from the track I noticed there wasn’t a single person standing outside the Krispy Kreme shop. I guess it’s yesterday’s news. But those warm donuts are still just as tasty!

Copyright © 2009, The Paulick Report

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By Ray Paulick
One or two million dollars just doesn’t get you what it used to.

Was it that long ago that felonious financier Robert Brennan shook up racing’s Triple Crown with a $2-million bonus linking victories in three stakes at the now-defunct Garden State Park in New Jersey with a win in the Kentucky Derby? Spend a Buck went after and won that bonus following his runaway victory in the 1985 Kentucky Derby, leaving  officials at the three Triple Crown tracks apoplectic when he skipped the Preakness and Belmont Stakes. They were so worried they went out and did the unthinkable: working together to create their own bonus scheme (which has now lapsed after Visa dropped its Triple Crown sponsorship).

The original Triple Crown Challenge bonus would pay a total of $5 million in purses and bonus money to any horse that won the Triple Crown (it was upped to a $5-million bonus plus purse money in 1997), and a $1-million bonus to the horse accumulating the most points from top three finishes in all three races. The latter bonus was dropped after the 1993 Triple Crown.

The absence of a bonus hasn’t hurt the Triple Crown, although without a participation bonus there have been fewer 3-year-olds running in all three races. I guess the feeling is that the owner of a horse that wins the Triple Crown will get his bonus when he retires him to stud (assuming he’s not a gelding or filly).

This past year, several entities clamored to get 3-year-old filly superstar Rachel Alexandra and older female champ Zenyatta in the same race. Jim McIngvale, the Houston furniture store owner better known as Mattress Mac, made the first run by offering to put up $2-million for a match race at Sam Houston Race Park in his home town. That gave McIngvale 15 minutes or so of free publicity, but it was a match race that was never going to happen. (McIngvale’s Gallery Furniture recently announced it is sponsoring a new $100,000 race on the Texas Day Champions program Dec. 5 at Sam Houston, proving he’s more than a publicity seeker. McIngvale and the Houston track haven’t given up on a race involving the two fillies, either, and offered $1.5 million if they showed up to face one another during the track’s winter meeting.)

TVG then teamed up with the New York Racing Association in an effort to get Rachel Alexandra and Zenyatta to both contest the Oct. 3 Beldame at Belmont Park. TVG offered to put up $400,000, which would increase the purse for the Grade 1 race to $1 million. That at least got some consideration from both camps, but it wasn’t in the cards for either Rachel Alexandra or Zenyatta.

Finally, the Breeders’ Cup gave it the old college try, offering to pad the winner’s share of the $5-million Breeders’ Cup Classic if both Rachel Alexandra and Zenyatta were in the starting gate. That would have resulted in a $3.7-million winner’s share of the Classic. But Rachel’s majority owner, Jess Jackson, had already made it clear he wouldn’t run his filly on the synthetic track at Santa Anita which he disparagingly calls “plastic.”

It’s no wonder, then, that the Japan Racing Association is having a hard time getting much buzz over its Autumn International series of four Grade 1 races on consecutive Sundays, beginning Nov. 15 with the Queen Elizabeth II Commemorative Cup, and continuing with the Nov. 22 Mile Championship, the Nov. 29 Japan Cup and Dec. 6 Japan Cup Dirt. The four races offer about $13 million in total purses, plus lucrative bonuses for horses that have won or finished second in major stakes in North America, Europe, Australia or Dubai.

For example, if Kentucky Derby winner Mine That Bird won the Japan Cup Dirt, a 1 1/8-mile race run clockwise at Hanshin racecourse in Osaka, he would receive $1.37 million of the $2.9-million purse but also get a bonus of $1.37 million for his Derby win, making the victory worth a total $2.7 million. That’s about the same as the Breeders’ Cup Classic’s winner’s  share of its $5-million purse. I’d venture to say Mine That Bird would face a much softer field in Japan than he’ll see on the Pro-Ride track at Santa Anita. Of course, he could run in both races.

The Derby is but one of 12 American races whose winners would qualify for a bonus ranging from $525,000 to $1.37 million for winning the Japan Cup Dirt. Even a second-place finish for those horses in Japan would pay them a bonus between $210,000 and $550,000. Click here to see the bonus scheme for the Japan Cup Dirt.

The Japan Cup on turf has similar bonuses. That race winner could take home more than $4 million in purse money and bonuses and the second-place finisher could win as much as $1.6 million in purse and bonus money. Click here for complete information on the Japan Cup’s purse and bonus details.

Nevertheless, based on recent interest in the Japanese races from American horsemen, it’s doubtful many serious contenders will be shipped to Tokyo or Osaka to contest these rich races, bonuses or not. No American horse has won the Japan Cup since 1991, when the late Charlie Whittingham sent Golden Pheasant postward for a victory. Golden Pheasant was the fourth American horse to win the Japan Cup in the race’s first 11 years.

In recent years, the Japanese have dominated the race with horses they bred or bought in the West as yearlings, winning nine of the last 11 runnings. The quality of Japanese-bred horses has improved, largely through the importation of stallions and broodmares from Europe and the United States in the 1980s and ‘90s. I think Americans have gotten tired of sending their horses over to Japan and getting their butts kicked.

The Japan Cup dirt, inaugurated in 2000, has had just nine runnings, with eight going to Japanese-trained horses. The lone exception was in 2003 when the Doug O’Neill-trained Fleetstreet Dancer, a previously unheralded runner in California, posted a huge upset.

American horsemen have been leery of sending good horses to the Japan Cup dirt, in part over legitimate concerns that the dirt tracks in Japan are deep and sandy. In fact, when Fleetstreet Dancer won, it may have been due in part to the fact rain tightened up the racetrack.

There’s a lot of money at stake in the Japan Racing Association’s Autumn International races, but purse money apparently doesn’t carry as much weight as it used to for some horse owners. Either that, or American horses ain’t what they used to be.

Copyright © 2009, The Paulick Report

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By Ray Paulick
It’s a long, long way from Lexington, Ky., to Cape Town, Africa’s southern-most city, where I was invited to attend a two-day international breeders conference and share my thoughts on Thoroughbred industry trends and challenges with members of South Africa’s Cape Breeders Club.

By Ray Paulick
There’s an old expression never to pick a fight with someone who buys ink by the barrel (people don’t get their news in print publications the way they used to, but you get the point). Similarly, it’s probably not a good idea to get into a money-measuring contest with someone who amassed a fortune selling oil by the barrel.

That’s what seems to have happened with the Breeders’ Cup, whose operating deficit and financial challenges are the subject of an outstanding article by Matt Hergarty in Wednesday’s Daily Racing Form (click here to read).

First run in 1984, the Breeders’ Cup has grown from a one-day championship of seven races worth $10 million to a two-day event with 14 races and purses totaling $25.5 million. It was the richest day of racing when it was created, and Breeders’ Cup officials have tried to maintain that status, even as the Dubai World Cup program, fueled by Sheikh Mohammed’s oil money, enthusiasm and competitive nature, grew substantially from its debut in 1996, when it offered $5.1 million in prize money.

The Dubai World Cup program exceeded the Breeders’ Cup in prize money beginning in 2000, when its purses were increased to $15.25 million for seven races, topped by the $6-million Dubai World Cup. That year’s Breeders’ Cup carried $13 million in purses (topped by the $4 million Classic). Another million in purses was added to the Breeders’ Cup in 2003, increasing the day’s prize money to $14 million for eight races (a Filly & Mare Turf race had been added to the original menu in 1999).

Dubai’s purses took another huge leap in2006, when they were increased to $21.25 million for seven races. Shortly after those hikes were announced Breeders’ Cup officials scrambled to keep up with the sheikh after worrying they might get left in cloud of desert dust. Purses for the eight Breeders’ Cup races in 2006 were increased to $20 million, including a $1-million jump for the Classic, which became a $5-million race.

The biggest difference between the Breeders’ Cup and the Dubai World Cup program is the source of funding. Nominations for foals and stallions, along with a percentage of betting handle, are the primary sources of revenue for the Breeders’ Cup. Sheikh Mohammed, the ruler of Dubai, can arbitrarily set prize money for the World Cup program. Though Dubai at one time was an oil-rich country, gas and petroleum now account for less than 10% of its revenue, according to reports. Construction, real estate and tourism are major contributors to Dubai’s current economy (though the world’s economic slowdown have hurt each of those sectors). Nevertheless, Dubai remains a wealthy country, and Sheikh Mohammed controls its purse strings. He can turn the faucet for the Dubai World Cup on or off at his pleasure.

Because wagering and event day ticketing is such an important part of the Breeders’ Cup revenue stream, officials with the organization decided to increase the number of wagering opportunities as it added to the prize money. The 2007 championships at Monmouth Park included three new races, bringing the total to 11 races worth $23 million, and the event was extended to two days. Last year, another two contests were added, bringing the total to 14 Breeders’ Cup races worth $25.5 million. That exceeded the Dubai World Cup purses—for now. However, Sheikh Mohammed has said the 2010 World Cup race will carry a $10-million purse, and it’s likely he’ll add to some of the others to make the program the richest day of racing in the world.

Meanwhile, because revenue didn’t keep up with the increased costs at the Breeders’ Cup (nominations are down, and the additional races didn’t generate as much handle as expected), the organization is running at a deficit and is considering a cut in championship purses, among other things.

Perhaps the increased number of races and the expansion from one to two days was a mistake. There is a dilution effect when there now are, for example, four championship races for 2-year-olds (two on dirt, two on turf), as opposed to the previous two; as well as when there is a sprint division, a turf sprint division and a filly and mare sprint division; or a dirt (or synthetic) sprint, mile and mile and a quarter race.

The old mindset of keeping up with the sheikhs is no longer an option. Whether or not oil is a significant contributor to Dubai’s economy anymore, Sheikh Mohammed appears to have much deeper pockets than the Breeders’ Cup. Trying to match him dollar for dollar may have gotten the Breeders’ Cup into the financial hole its now in.

So the question is: If the Breeders’ Cup is fiscally challenged, should it reconsider all those new races added to the menu and think about going back to a one-day championship?

Copyright © 2009, The Paulick Report

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