Archive for the ‘New York Racing Association’ Category

A group of fans discussing Exceller’s death on an online forum decided to do more than mourn his death. They pledged to support Thoroughbred rescue efforts, initially at the United Pegasus Foundation in California. They eventually forming the Exceller Fund to keep alive the name of the horse trainer Charlie Whittingham called the best Thoroughbred never to win an Eclipse Award. Exceller was, however, posthumously elected to the National Museum of Racing Hall of Fame.

This grassroots organization of racing fans and horse lovers began with just a dozen people, each pledging a minimum of $15 a month to support rescue efforts. The Exceller Fund’s membership has grown to well over 100 members and has saved more than 250 horses since its creation. There are no only employees, only volunteers, and the Fund’s annual budget is approximately $70,000. (Click here to see the Exceller Fund’s financials.)

Click here to learn about becoming a member of the Exceller Fund or here to make a donation.

Its mission statement – Providing a Future Beyond the Finish Line – allows the Exceller Fund to work with local horse rescue organizations to transition horses to a second career after racing or breeding by acquiring horses that might be at risk for slaughter and caring for them until a new home is found. Its Web site provides a list of horses the Exceller Fund has adopted out or helped in other ways.

Barbara Kraus served as president of the Exceller Fund until 2003, when Bonnie Mizrahi, who had been in charge of fund-raising, took the reins. In August 2008, top New York trainer Gary Contessa was named president, a move that increased the organization’s visibility. “To have a major trainer such as Gary Contessa want to be our president and champion our efforts is a thrill and an honor,” Mizrahi said. “I believe this will signal to fans that racing does not turn a ‘blind eye’ to the horses once they are done, and I hope it will inspire others to realize that the Exceller Fund wants to work with racing to provide a “future beyond the finish line” for these magnificent Thoroughbreds.”

The Paulick Report will spotlight a different charity each day of Thanksgiving week, when we traditionally take time to reflect and give thanks to the blessings we have and to help those less fortunate. This is a difficult time for many Americans, and charitable organizations are feeling the effects of the global economic crisis. We hope you’ll spend a few minutes to learn about some of the charities that make us a better industry, and consider giving to these or to others that we won’t have the opportunity to publicize. Remember that no gift is too small.

Copyright © 2008, The Paulick Report

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The Belmont Child Care Association (BCCA) was established in 1998 to provide on-site care for the pre-school children of working families at New York-area racetracks and to provide funds for those families unable to afford the cost of care. It was formed at the initiative of the New York Thoroughbred Horsemen’s Association.

A 501(c)3 not-for-profit corporation, BCCA has benefited from the support of the New York Racing Association, Jockey Club and other organizations, but the construction of Anna House, the facility constructed on Belmont Park property leased for $1 a year, would not have been possible without the generosity of numerous individuals. Foremost among those are Michael Dubb, a Long Island developer and philanthropist who brought construction oversight and vision to the project and serves as BCCA’s board chairman, and Eugene and Laura Melnyk, who donated $1 million to kick off the capital campaign.

As anyone in the Thoroughbred industry knows, work days start early and can run seven days a week. Conventional day-care is not an option for many backstretch employees because of the cost or the hours the services are needed. Anna House, open 365 days a year from 5 a.m. to 1 p.m., provides a wonderful opportunity for the youngest children of backstretch workers to be cared for in a safe, nurturing and stimulating, learning environment.

An annual highlight for the Belmont Child Care Association is coming up on Dec. 13, when a special shopping event gives the children of Anna House a chance to be a gift-giver. Donated gifts, such as toys and clothing for infants, toddlers and teenagers, and books and adult clothing (warm clothing preferred) are set up at Anna House as a “store.” Children arriving at the facility have an opportunity to chat with Santa Claus, and with the help of a volunteer create a shopping list for their family. They then pick out their presents, which are wrapped and tagged by Santa’s volunteer helpers for Christmas delivery.

Last year, more than 350 children shopped for their families, and even more are expected this year.

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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.

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.

“The morning of the (June 7) Belmont Stakes, I had been woken up around 10 a.m.,” he told Mayne. "There was a knock on my door and there were several New York City Police Department detectives. They asked me to come outside because they didn’t want to talk to me in front of my family. They told me there had been a serious death threat lodged against me, basically from Tallahassee, Florida, from an extremist saying that if anything should happen to Big Brown in the race, myself and my family were not safe. Basically I was followed by eight to nine New York detectives all day, everywhere I went. Obviously after the horse was pulled up the rest is obvious.”

Mayne said ESPN/ABC learned of Iavarone’s story the day before the live interview aired and suggested that Iavarone’s emotional reaction to Big Brown’s defeat was “painted by that threat, not what the shortfall was of not winning the Triple Crown.”

“Obviously the horse is sound and is retired so I would not believe they would have any reason to harm myself or my family,” Iavarone said. “They have not told me the case is closed.”

The strange timing of Iavarone’s revelations notwithstanding, there are some details about his story that just don’t add up. I was seated directly behind Iavarone in the box section of Belmont during the running of the Belmont Stakes, and saw just one person who was clearly serving in a security capacity – a burly African-American man wearing a dark suit, an open collared white shirt and a “Big Brown” button on his lapel. It appears to be the same individual who has traveled with Iavarone to other races, including last weekend’s Breeders’ Cup.

Immediately after the race, while Big Brown was being unsaddled, I stood directly below the IEAH box and took a series of photographs of a shocked Iavarone, who was surrounded by his family members and fellow IEAH executive Richard Schiavo. There appeared to be no additional security around Iavarone and his family, only the same bodyguard described above. Certainly, I didn’t see “eight or nine New York detectives” in the immediate area.

I’m not accusing Iavarone of making up a story about a death threat. There were a series of incidents and revelations that made Iavarone something of a lightning rod with individuals within and outside of the racing community, some of which inflamed animal rights activities. There was the revelation that Big Brown raced legally on anabolic steroids when he won the Derby, the disclosure that Iavarone had lied about his past life as a “high profile banker on Wall Street,” the fact he had been fined and suspended by the National Association of Security Dealers, and the determination to run Big Brown in the Belmont despite suffering a quarter crack and missing training before the race.

Attempts by the Paulick Report to contact New York Racing Association officials to determine their knowledge of the alleged death threat and increased New York Police Department security detail were not successful.

Copyright © 2008, The Paulick Report

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Well, it was fun while it lasted, this dream of someday returning to Hialeah Park to enjoy horse racing in its most beautiful setting. Since making my first trip there in 1988, when the South Florida track already was in severe decline, I’ve held out hope that someone, somehow could restore it to some semblance of its past elegance.

At first, I let John Brunetti convince me that everyone really was out to get him and that if he could only get a break from state legislators and regulators he could be the one to bring Hialeah back. But then, as the years went by and I saw Brunetti’s recalcitrance and heard about his disingenuous actions from horsemen and others involved in Florida racing, my expectations were that Hialeah Park would never be reopened after running its last race in 2001.

Then along came Halsey Minor, reigniting the flame of hope many of us hold for Hialeah. The Internet entrepreneur and Virginia Thoroughbred owner and breeder put together a team of experts to appraise the property, map out renovations for the grandstand and clubhouse, design new barns, and develop an operating plan. He engaged Brunetti is discussions that so many of us hoped would lead to a sale of the track to Minor and the rebirth of the “sport” of racing in South Florida.

Brunetti is one of those guys who has a number in his head that isn’t based on appraised values, or highest and best use of the property. The price Brunetti wants today, the Paulick Report has learned, isn’t even in the ballpark of what he was trying to get previously from the state of Florida. It’s much higher.

There is no rationale for Brunetti’s demands, for he isn’t a rational man. He just has a price, and one that isn’t based on reality – especially the reality of an economy that has seen real estate values plummet, credit tighten and development slow to a crawl.

So the talks between Minor and Brunetti are dead, unless Brunetti has any second thoughts.

Given the nature of the economy, financial markets and zoning impediments that would keep Brunetti from bulldozing the track and putting up a business park or condos, Hialeah Park isn’t going anywhere soon. It will just sit empty as Brunetti gets older and more bitter about his plight. Minor, 43 years old and involved in many other business projects, can simply wait Brunetti out and see if his heirs have more interest in doing something with the track than Brunetti.

As Minor has been quoted as saying, in that scenario Brunetti would “forego any of the recognition of giving back what he took from racing."

The problem isn’t what NYRA’s marketing department has done over the last few months. It’s much bigger than that. The challenge for the “new” out-of-bankruptcy NYRA (which looks suspiciously like the old NYRA to me) is to redefine itself and somehow overcome a reputation defined by decades of arrogance and indifference to the public.

THANKS TO THE READER WHO TIPPED US TO THE LATE SCRATCH OF SAILORS SUNSET from Saturday’s Grade 1 Ancient Title sprint at Santa Anita. A check with the California Horse Racing Board’s equine medical director, Dr. Rick Arthur, confirmed that there was a scratch on that day’s program because a horse received a pre-race throat flush that involved something other than water, the only substance permitted on race day. Arthur said there appeared to be no performance-enhancing procedure attempted on the horse (i.e., a milkshake), but that a steward’s hearing would be conducted into the matter. If Sailors Sunset was indeed the horse in question, the hearing would involve trainer Marcelo Polanco.

California’s prohibition on race-day of throat-washing products such as Wind Aid that are commonly used in some other jurisdictions could create problems at this year’s Breeders’ Cup for trainers unfamiliar with CHRB regulations. For that reason, Arthur said, the Breeders’ Cup horseman’s handbook will explain its medication rules in detail and an associate steward will be assigned to outline California medication rules to every trainer with a horse in the Breeders ‘ Cup.

All were outstanding, without question, but in my book the race that might be the most overlooked was the track-record blowout by Fatal Bullet in the Kentucky Cup Sprint at Turfway Park. This 3-year-old Red Bullet gelding is a synthetic track specialist who could be very dangerous on the Pro-Ride surface at Santa Anita in the Breeders’ Cup Sprint.

Who did you like in these Breeders’ Cup preps?

Copyright © 2008, The Paulick Report

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By Ray Paulick

No horse has ever done what Exceller did 30 years ago when he defeated two Triple Crown winners, Seattle Slew and Affirmed, in the 1978 Jockey Club Gold Cup at Belmont Park. Given the unlikelihood that the sport will ever see two Triple Crown winners racing at the same time again, it’s hard to see how Exceller’s accomplishment will ever be matched. The son of Vaguely Noble may be the greatest horse never to win a year-end championship in the United States. He was an accomplished runner in Europe and in the U.S., winning 15 of 33 starts for Nelson Bunker Hunt (including seven of 10 starts in 1978), and earning in excess of $1.6 million — when million-dollar winners were rare.

Take a few minutes and enjoy this video of the 1978 Jockey Club Gold Cup.  It was a fascinating contest. Seattle Slew broke through the gate before the start. Then, Affirmed’s saddled slipped, compromising his chances. Seattle Slew was pushed to unbelievably fast fractions for a mile and a half race, yet he fought as gamely as any horse has ever fought, right to the finish. And Exceller, under Bill Shoemaker, rallied from 22 lengths off that rapid pace to get the win.

Sadly, neither the Jockey Club Gold Cup nor the many other outstanding victories are why Exceller is known to a generation of racing fans who never had the good fortune to see him run. This grand Thoroughbred, who gave so much for our pleasure, wound up in a slaughterhouse in Sweden in April 1997, less than 20 years after his greatest racing achievement.

Exceller’s crime? Failure to succeed as a stallion?

(Read more about Exceller’s racing career and his death in a Swedish slaughterhouse. Elected to the National Museum of Racing Hall of Fame in 1999, two years after his death, Exceller’s biographical information and Hall of Fame plaque fail to state his cause of death.)

Whether you believe that slaughter is a viable alternative for unwanted horses or are sickened by the thought that thousands of Thoroughbreds are led to slaughter for human consumption every year, the story of Exceller is a tragic one. No horse who did for the sport what Exceller did should have such an undignified death.

The same is true of the 1986 Kentucky Derby winner, Ferdinand, who is believed to have died in a Japanese slaughterhouse in 2002 after not living up to expectations as a stallion.

Exceller became a cause célèbre for some racing fans who were frustrated that the Thoroughbred industry and its leaders were doing next to nothing for so many former racehorses who failed to generate revenue for their owners and ended up being slaughtered. A group of them decided they would do something about it, forming the Exceller Fund, pooling their own resources and raising additional funds, and volunteering their time to save horses from slaughter and help them transition to a second career off the racetrack. The Exceller Fund is one of many such organizations struggling to make a difference on behalf of the horses and the Thoroughbred industry.

This Saturday, to honor Exceller’s Jockey Club Gold Cup victory, a number of racetracks across the U.S. will host a “Toast to Exceller Day,” in order to raise awareness and donations for the Exceller Fund and many other equine charity groups. A special cocktail, “The Exceller,”  is being sold at several tracks, including Mountaineer, Finger Lakes, Laurel Park and Presque Isle Downs, with proceeds benefting the Exceller Fund.

“I cannot thank our partner tracks enough for their support with this and I wish to especially thank the New York Racing Association for their commitment to the Exceller Fund that will be a lasting relationship for many years to come,” said leading New York trainer Gary Contessa, who in August was named president of the Exceller Fund.

Exceller did a great deal for Thoroughbred racing — then and now.

Copyright © 2008, The Paulick Report

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What you won’t hear in the report is how the tentacles of the Jockey Club and some of its individual members strategically reach into various organizations and businesses in an effort to exert control throughout the Thoroughbred industry.

To quote from the book, “The Right Blood: America’s Aristocrats in Thoroughbred Racing,” by Carole Case: “This is a story about money and power, and about a particular group of rich and powerful Americans—the men (and a very few women) of the Jockey Club. With its founding in New York City at the turn of the twentieth century, the Club took the reins of Thoroughbred racing in the United States, and it has never entirely let them go. For more than a century, then, the Jockey Club has dominated horseracing in this country.”

For better or worse, the Jockey Club, which has been ruled since 1982 by chairman Dinny Phipps and vice chairman William S. Farish, has considerable power over the Breeders’ Cup, Keeneland, National Thoroughbred Racing Association, the Thoroughbred Owners and Breeders Association and its American Graded Stakes Committee, Bloodhorse magazine, and the New York Racing Association, among others.

Here’s a quick rundown.

– William Farish’s son, Bill, is the board chairman of the Breeders’ Cup, which before its governance was changed a few years ago, had been tightly controlled by the senior Farish and his longtime friend and horse business partner G. Watts Humphrey. The battle over control of the Breeders’ Cup board has been detailed by previous articles in the Paulick Report..

– The senior Farish replaced Ted Bassett in 2006 as one of the three trustees who oversees Keeneland’s operations. Keeeland’s president, Nick Nicholson, is a former executive with the Jockey Club. There is some speculation that one of the senior Farish’s goals is to expand Keeneland to the point where it can bid to become a permanent host for the Breeders’ Cup, making it the Augusta National of the racing industry.. An expansion is on the drawing board now, with Keeneland making a possible Breeders’ Cup bid as early as 2011.

– The NTRA board is populated by several Jockey Club members, including Humphrey and Robert Clay, plus Jockey Club president Marzelli, and three racetrack executives — Nicholson of Keeneland, Bob Elliston of Turfway Park (owned in part by Keeneland), and Charles Hayward of the New York Racing Association, which has been controlled by Phipps for more than 30 years. At one point, the NTRA and Jockey Club shared office space in New York.

– The Thoroughbred Owners and Breeders Association has had some semblance of independence from the Jockey Club in recent years, through its chairman, Bill Casner, who is not a Jockey Club member but has been asked to speak at Sunday’s Round Table. Casner was recently succeeded by Reynolds Bell, currently a steward of the Jockey Club and a bloodstock agent whose major client is Farish’s Lane’s End Farm. Dell Hancock, whose family’s Claiborne Farm boards the Phipps family mares, served as chair of the American Graded Stakes Committee until recently being succeeded by Peter Willmot. Steve Duncker, currently the board chairman of NYRA, was a previous Graded Stakes Commiteee chair.

– Stuart Janney is chairman of Bloodhorse magazine, whose board also includes Bill Farish, G. Watts Humphrey, D.G. Van Clief, and Antony Beck—all Jockey Club members with the exception of Beck, who is very close friends with Bill Farish. Janney is a Jockey Club steward, a cousin of Dinny Phipps, and chairman of Bessemer Trust, the company founded by Phipps’ great-grandfather. He succeeded Humphrey as chairman, who in turn succeeded Bayard Sharp, Farish’s late father-in-law.

– The New York Racing Association’s close relationship with the Jockey Club is no secret. Its tracks serve as playgrounds for many Jockey Club members, most notably Dinny Phipps, who has the most desired finish line boxes at the NYRA tracks. The Jockey Club even has offices at the New York tracks. The Jockey Club once officially ruled New York racing, but lost its official control when a horseman named Jule Fink went to court after being denied an owner’s license. NYRA’s board is populated with Jockey Club members, and its chairman, Steve Duncker, like most chairman before him, is a member of the Club as well.

The tentacles clearly reach into breed associations, regulatory agencies and other organizations throughout racing and breeding.

What isn’t clear is why the Jockey Club, led by its chairman and vice chairman, wants so desperately to control the industry, and what they plan to do with that control.

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For those who have never attended, there is no “round table” at this annual throat-clearing exercise for many of the industry poobahs, and there is not really any discussion, either. It’s a precisely orchestrated show that leaves nary a stanza for improvisation, and there is no question about who the conductor is waving the baton. According to several individuals who have spoken at past Round Tables, Dinny Phipps goes over every speech with a fine-tooth comb, cutting out things he doesn’t like and adding points he wants to have made.

The Round Table is one of the projects of the Jockey Club that Phipps has overseen since becoming the breed registry’s chairman in 1982. That same year, William S. Farish became the Jockey Club’s vice chairman. That’s 26 years running as a two-man team, 

But let’s not look ahead to Sunday’s festivities just yet. Let’s go back in time to a day when Dinny Phipps wasn’t trying to save the entire Thoroughbred industry; he was merely applying his business skills, enthusiasm and charisma to New York racing.

Some people who confuse wealth and power with vision and business intelligence might say that Dinny Phipps was born to lead. He is a member of one of America’s wealthiest families. His great-grandfather, Henry Phipps, was Andrew Carnegie’s partner in what became known as U.S. Steel, and he was the founder of Bessemer Trust, for which Dinny Phipps has served as chairman. As if that wasn’t enough, Dinny Phipps’ grandfather, Henry Carnegie Phipps, married into another of America’s wealthiest families, that of Darius Ogden Mills, who struck it rich in the California Gold Rush. At one time, the Phipps family owned roughly one-third of the exclusive island enclave of Palm Beach, Fla., where Dinny Phipps officially resides (Florida has no personal income tax).

Dinny Phipps followed his grandmother (Mrs. Henry Carnegie Phipps of the Wheatley Stable) and his father, Ogden Phipps, into Thoroughbred racing. Phipps and his father also were skilled at “court tennis” (some call it real tennis), a game that also found popularity with royalty in 16^th and 17^th century France and England. Ogden Phipps was a mover and shaker in New York racing, serving for years as a trustee of the New York Racing Association and also as chairman of the Jockey Club.

Dinny Phipps was made a member of the Jockey Club in 1965, when he was just 24 years old. In 1971, at the age of 30, he was appointed to the board of trustees of the New York Racing Association. It was the same year the first Off-Track Betting shop opened in New York, a development that sent on-track business at the NYRA tracks into a long and steady decline.

Young Phipps wasn’t entirely a chip off the old block. Whitney Tower, writing in Sports Illustrated, said most members of the Phipps family went out of their way to avoid publicity. Tower wrote in 1965: “Until Dinny slightly altered the family pattern by hobnobbing in track press boxes and frequenting Toots Shor’s (a midtown Manhattan bar and grill frequented by celebrities and athletes), none considered the press anything more than a necessary evil of the modern age."

Tower, whose sense of humor could be wicked, also wrote of the young (and still growing) Phipps’ court tennis skills in the 1965 article that featured the Phipps family’s Bold Lad, an early season Kentucky Derby contender. “Dinny, who, like Bold Lad, has never missed an oat in his life (weight, 275 pounds), is defending amateur doubles champ with Northrup Know, after playing No. 2 on both the tennis and squash teams at Yale.”

Phipps was moved up to a newly created position of vice chairman of the NYRA board in 1974. The chairman, Jack Dreyfus, bred and raced under the name Hobeau Farm and was best known as the creator of the mutual fund through his financial company, the Dreyfus Fund. Dreyfus also spoke willingly about his bouts with clinical depression and became a vocal proponent of a drug he was given to treat the problem.

In an extraordinary editorial in the Feb. 16, 1976, Bloodhorse magazine, editor Kent Hollingsworth called for Dreyfus’ ouster as NYRA’s chairman.

‘The roof is leaking,” Hollingsworth wrote of NYRA and its three racetracks, Aqueduct, Belmont Park, and Saratoga. “In other sports when the trend is downward, the coach or manager is fired. … (Dreyfus) has lost the confidence of a growing number of New York owners and trainers and cooperation of management and horsemen is absolutely essential to reverse the downward trend of New York racing.”

Hollingsworth then endorsed Phipps to become the new chairman.

“Young Dinny Phipps, vice chairman of NYRA, has the support of most New York owners and trainers. As chairman, Phipps would be more accessible, and greater cooperation with horsemen could be attained. Also, the vacant slot for a director of racing needs filling now, by a man who has the experience and rapport with both management and New York horsemen. … The NYRA needs new – not just new, but better – direction. It needs it now, for all of racing cannot afford to have New York racing continue downward.”

Five months later, in July 1976 Dreyfus stepped down and Dinny Phipps was appointed NYRA’s chairman. “I hope I can fulfill the duties of this office with the same energy, foresight and creativity displayed by Jack Dreyfus,” Phipps was quoted in the Bloodhorse. “Working under him has been a valuable experience.” The Bloodhorse article gave no professional or business background  on Phipps, only saying that he was the son of Ogden Phipps.

By today’s standards, on-track business looked pretty good when Phipps took over. Aqueduct’s early-season meeting had average on-track attendance of 20,722, Belmont Park’s summer meeting averaged 24,387, and its fall meeting averaged 20,363. Saratoga had a daily average of 18,894.

But there were serious problems, and they would only get worse. By the time Phipps left in 1983, those same numbers were 13,340 at Aqueduct, 19,530 at Belmont summer and 16,735 for Belmont’s fall meeting. Saratoga was the lone bright spot, increasing to 26,644 by 1983.

Phipps spoke before New York legislators after his appointment, saying: “Thoroughbred racing in New York State, once a growth industry, has fallen on evil days, and a period of crisis is clearly upon us. And this has happened, purely and simply, because growth has stopped. … There may be those who will argue that concern for on-track growth is misplaced in the era of OTB and who anticipate the day when tracks will operate primarily to serve off-track clientele. If this day comes, we believe it will mark the end of both OTB and the tracks. We do not believe that OTB can flourish and prosper in a climate of ever-declining interest in on-track racing. The tracks make customers for OTB, not the other way around.”

But under the headline “Better Days Ahead,” a story in Bloodhorse magazine in November 1976 quoted Phipps telling the American Trainers Association that NYRA was going to “make an all-out effort” to improve conditions.  

The efforts went unnoticed by Sports Illustrated the following June after Seattle Slew clinched the Triple Crown with a win in the Belmont Stakes. “The 70,000 people who showed up at Belmont Park Saturday did so despite the best efforts of the New York Racing Association to keep the race a secret,” the Scorecard item read. “No wonder the NYRA is in trouble. … NYRA chairman Dinny Phipps needed a bang-up selling job. So, the week of the Kentucky Derby, just one month before the Belmont, Phipps hired a marketing expert and gave him the title vice-president in charge of marketing. It seemed like a smart move.

"But new VP Ted Demmon admits that the only thing he knew about horses is which end the tail is on. “His previous job was marketing vice-president for Hardee’s, the ‘hurry on down to’ hamburger joints, where he was also in charge of product development. While Phipps hasn’t yet assigned him that job, someone at the NYRA should have told Demmon that a man named Billy Turner has just spent a year developing the hottest product the NYRA could have hoped for. Yet just three days before Seattle Slew was to become the first undefeated Triple Crown winner in the history of racing, the television ads in New York were still inviting people to come out to beautiful Belmont Park, where, just maybe, some afternoon they might see another Secretariat.”

At the end of 1977, his first full year as chairman, Phipps was scarcely mentioned in Bloodhorse’s annual index of articles. The few references included the fact he had commissioned artist Richard Stone Reeves to paint a portrait of Bold Ruler, that he was awarded the P.A.B. Widener Trophy in Kentucky, that he was re-elected as a director of the Grayson Foundation and that he and his wife had a son born in July (sort of like those stud news items that announce when a major stallion’s first foal is born).

But things were happening at NYRA. In September 1977, Thomas FitzGerald was forced out as NYRA president and James Heffernan was brought in to replace him. There were labor problems with mutual clerks, and a TV deal was struck to show some major races on CBS.

The major emphasis after Phipps took over as NYRA chairman was to convince then-Gov. Hugh Carey to push for a reduction in takeout in hopes that it would stimulate handle and on-track attendance. Independent research commissioned by NYRA, the Pugh-Roberts Study, showed business would go up between 12-15%. How hard did Phipps work on this? “We put in two hours every working day just on this one thing,” said Phipps, who even made two trips to the state capital in Albany. Eventually, a 20-month takeout reduction experiment was approved, and Phipps became the toast of racing. 

The New York Turf Writers named him “the man who did the most for New York racing.” In February 1979, Phipps was given the Eclipse Award of Merit by a committee representing Daily Racing Form, the National Turf Writers Association and the Thoroughbred Racing Associations.

Hollingsworth, Bloodhorse’s editor, remained one of Phipps’ biggest supporters, writing of NYRA: “The management is tops; NYRA board chairman O.M. (Dinny) Phipps is young, innovative, responsive, with a competent staff of experienced professionals that knows what should be done and does it.”

Six months after giving Phipps the Eclipse Award of Merit, however, the presenters might have wanted to call for a “do-over.” Business at the Belmont summer meeting was down in attendance and up only slightly in handle after the takeout reduction, falling well short of the Pugh-Roberts Projections. NYRA’s overall year-to-date business was even more dismal, with attendance dropping 13% and betting off 8.4% through the first seven months of 1979.

“Despite reduced takeout and million-dollar promotion campaign, no light has appeared yet at the end of the tunnel,” Bloodhorse’s New York correspondent William Rudy wrote. “Nor was the atmosphere a happy one. Horesmen were irate over what they termed general ineptitude in the racing department, and a new organization, the New York Thoroughbred Horsemen’s Benevolent Association, was formed with Jack Gaver president and Joe Trovato and Murray Garren vice presidents. The group issued a statement that said: “You must be able to communicate with the NYRA if you have a problem or disagree with existing policies. … The fact is that the NYRA now is pretty much a closed shop at top levels.”

The critical Bloodhorse article said NYRA’s board members were mostly yes men who “all go along with decisions made. … Members are often informed at board meetings of actions already taken. There is, on occasion, dissent from former NYRA chairman Jack Dreyfus Jr., a gentleman who seems inhibited by a feeling he should not criticize his successors.”

For his work, Phipps was rewarded with re-election as chairman in May 1980, a year that ended just as poorly as the previous year: Belmont attendance was down 8.2% and 3.8% in handle, while Aqueduct’s late-season meeting dropped 13% in atteance and 8% in handle.

The following year, former treasurer Jerry McKeon replaced Heffernan as NYRA president. The legislature began looking at the 1985 expiration of NYRA’s franchise and invited racing people to speak at a hearing of a joint legislative task force in Albany. Penny Chenery, who raced Secretariat, expressed her displeasure over the actions of the board and management of NYRA, telling legislators: “If you gentlemen perceive as I do a lack of responsiveness on the part of NYRA, I urge you to require of the board of trustees responsibility for the performance of the NYRA and its CEO,.”

After nearly 6 ½ years as NYRA chairman, Phipps resigned the post in January 1983, and he was succeeded by Thomas Bancroft, who also failed to reverse the slides at Aqueduct and Belmont that accelerated during the Phipps era (Saratoga was an exception). 

Phipps has remained on the NYRA board, and some have likened his stepping down in 1983 to the recent replacement of president Vladimir Putin in Russia, who was constitutionally prohibited from running for a third consecutive term. Just as Putin has not stepped aside after being nominally replaced by Dimitri Medvedev as president (Putin remains “prime minister”), high-placed industry sources say that Phipps continues to call many of the shots in New York racing from behind the scenes.

In that is the case, Dinny Phipps, if nothing else, is a master of the power play.

Copyright © 2008, The Paulick Report

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