Archive for the ‘Task Forces’ Category

WALDROP AND THE NTRA: AN ARMY OF ONE?

Thursday, March 26th, 2009
By Ray Paulick
Alex Waldrop is a good soldier who reminds me of Hiroo Onoda, the World War II legend who in 1944 was sent to Lubang island in the Philippines and told by his Japanese superiors to wage guerrilla warfare against the allied forces and to never give up. Along with a few others who survived a 1945 invasion by American soldiers, Onoda conducted operations from a base in the mountains of the island, even after leaflets were dropped saying the war had ended. Letters from loved ones begged Onoda to come home, but even after his fellow holdouts left him or died, Onoda carried out the orders given him.

It wasn’t until his one-time commanding officer flew to Lubang in 1974 that Onoda gave up the fight.

Waldrop, in his capacity as CEO of the National Thoroughbred Racing Associations, hasn’t fought as long as Hiroo Onoda did, but someone needs to tell him the war is over. The NTRA has about the same relevance and power as the Japanese Imperial Army did after the end of World War II.

It’s not Waldrop’s fault. He came into an untenable situation in December 2006 when the unraveling of the NTRA and Breeders’ Cup relationship was complete and the NTRA was left with little money and even less authority to carry out a mission to be the “league office” for horse racing. An organization that began in 1998 with high hopes and lofty goals of organizing and marketing a dysfunctional business that lacked structure, coordination and a strong central authority — the hallmarks of success for other sports — was, by 2006, a pale shadow of its former self.

What survived of the NTRA after its divorce from the Breeders’ Cup in 2006 was an understaffed press office and an industry lobbying effort in Washington, D.C., and not much more. Illusions of marketing grandeur or meaningful changes in how the sport was structured were gone like the budget the NTRA once had.

Eighteen months into Waldrop’s tenure at the NTRA, the Thoroughbred industry had a serious implosion. The filly Eight Belles died after the finish of the Kentucky Derby with millions watching on television in horror. Compounding the problem, Rick Dutrow, the trainer of Derby winner Big Brown, revealed one of our sport’s dirty little secrets, that anabolic steroids were in rampant use and, shockingly to many people, were perfectly legal. The public outcry was enormous, and the NTRA was ill-equipped to deal with it, because it lacked the authority to speak for the industry over which it had little control.

When hints of a Congressional inquiry surfaced, there was a scramble to react. The industry did what it always does: form committees and make recommendations. Foremost among those was a decision by Waldrop and the NTRA board of directors to create a new entity, the Safety and Integrity Alliance, which drafted an ambitious code of standards on a variety of safety and welfare issues for horses and jockeys. It was and is an admirable document, however meaningless it mostly likely will turn out to be.

Tracks that comply with the code of standards will be accredited by the alliance, sort of a “good horsekeeping seal of approval” that a track owner can frame and hang on his wall. And what about tracks that don’t comply? Well, they’ll have a little extra wall space. That’s the carrot and stick that Waldrop is armed with.

It goes back to something said during the Congressional inquiry held last June, when members of the House of Representatives repeatedly pointed out to Thoroughbred industry leaders how important it was for them to get their act together and establish a meaningful central authority unless they wanted the federal government to do it for them. After Alan Marzelli, the president of the Jockey Club, testified about some of the safety recommendations his organization was making to the industry, he was asked how the Jockey Club intended to have its recommendations adopted.

Marzelli’s response: “We believe in the power of persuasion.”

The power of persuasion (aka, committee recommendations) is what has kept this industry from realizing its potential as a major league sport. The harmless carrot and stick that Waldrop now carries in his briefcase is about as powerful as the army that Hiroo Onoda commanded on Lubana island for all those years after World War II.

Onoda survived, which I’m afraid is about all Waldrop and the NTRA and the rest of the racing industry can do with our current structure (or lack thereof). Maybe, just maybe, if enough tracks comply with the Safety and Integrity Alliance’s code of standards, we can stop the bleeding that’s been going on for some time, long before Eight Belles took her last breath or Rick Dutrow uttered his last insult. But stopping the bleeding is not a cure for what ails us.

What we have isn’t working. What we need are fewer organizations and fewer committees, more followers and fewer (but stronger) leaders. Why, someone pointed out to me the other day, do we need separate organizations like the NTRA, the Thoroughbred Owners and Breeders Association, the Jockey Club, the Breeders’ Cup, the National Horsemen’s Benevolent and Protective Association, the Thoroughbred Horsemen’s Association and so many others? He answered his own question: because none of those groups is willing to cede authority and lose whatever little fiefdom they control.

Waldrop keeps fighting, seemingly against all odds. When racing’s obvious problems were brought up twice recently in the New York Times, first by sports columnist William Rhoden and then by turf writer Joe Drape, Waldrop fired back in a blog at the NTRA’s web site, defending the Safety and Integrity Alliance and pointing out progress that had been made since the death of Eight Belles. He even tried to incite an angry mob to join his army and attack the messengers at the New York Times for the audacity of their observations.

It was rather pitiful. I’m not sure that Waldrop, like Hiroo Onoda, is much more than an army of one.

Copyright © 2009, The Paulick Report

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KENTUCKY TASK FORCE ISSUES REPORT

Monday, December 15th, 2008

By Ray Paulick

Kentucky Gov. Steve Beshear’s Task Force on the Future of Racing reported its findings in a hearing in the state capitol in Frankfort on Monday. The Task Force, chaired by Tracy Farmer, vice chairman of the Kentucky Horse Racing Commission, made the following recommendations through various subcommittees:
 
INDUSTRY FINANCIAL MATTERS RECOMMENDATIONS:
1-Kentucky needs increased purses to remain The Horse Capital of the World.
2-Kentucky’s Breeders’ Incentive Fund must remain competitive in order to retain the best stallions and mares.
3-Kentucky needs to expand the Kentucky Thoroughbred Development Fund to retain high-quality racehorses.

Keeneland president Nick Nicholson, who chaired the financial matters subcommittee, said his committee dug into a great deal of research comparing Kentucky’s breed programs with other states. “The stark reality is this,” Nicholson said. “The more we dug, the worse it looks. … Other states are trying to reach out and take what Kentucky has. The threat (to Kentucky) is very real, and it’s not long term – it’s imminent.” Nicholson said he has “100% certainty” that “if we maintain the status quo our position vis a vis other states will deteriorate.”

FUNDING AND STAFFING RECOMMENDATIONS:

1-Hire 10 new full-time staff members, consisting of two state stewards, two auditors, one paralegal, a staff attorney, two investigators, a racing veterinarian, and a veterinarian technician. Hire additional interim personnel as needed.
2-Put all three Thoroughbred stewards and Standardbred judges on the KHRC payroll.
3-Submit a budget request for a pari-mutuel information monitoring system as a capital project.
4-Require the various participants in the industry to share in funding the regulatory body.
 
The following funding mechanisms are proposed:
1-Dedicate to the KHRC a specific dollar amount from the General Fund from the pari-mutuel tax.
2-Increase takeout on exotic bets and win-place-show bets, and dedicate the increase to funding the KHRC.
3-Require the owners of the top three finishers to contribute toward the cost of drug testing in any race in which the purse is $10,000 or more.
4. Require the racetracks to continue to pay any cost of drug testing not covered by the owners.
5. Increase the pari-mutuel tax on racetracks with an average daily handle of $1 million or more and dedicate the increase to funding the KHRC.
6-License tote companies and advance deposit wagering (ADW) companies.
7-The subcommittee recommended that if other funding sources are not found, the amount of the reimbursements from tracks for the compensation of KHRC employees be increased and that tracks continue to pay for drug testing charges.

INTEGRITY OF RACING AND ALL PARI-MUTUEL ACTIVITIES RECOMMENDATIONS:
Short-term (end of fiscal year 2010)

1-Fill current vacancies in the positions of pari-mutuel wagering supervisor, director of enforcement and investigator.
2-Obtain CHRIMS system (Comprehensive Horse Racing Information Management System).
3-Require all racetracks and off-track betting sites to notify KHRC of communications, reports, or investigations by any state or federal regulatory agencies.
4-Require a track to record the exact time of races on all video feeds originating from Kentucky, require a tote company to certify the exact time of the closing of betting windows, require all tracks, tote companies and video providers to synchronize their time systems, and require tracks to provide a tote company with written permission for KHRC to receive handle and wagering information directly from the tote company.
5-License and regulate tote companies.
6-Establish a Kentucky Horse Racing Integrity Hotline.
7-License and regulate advance deposit wagering companies.
8-Develop a method to license and supervise all vendors of products sold to trainers, veterinarians and grooms for use at tracks.
9-Hire and train additional security personnel to investigate alleged violations of Kentucky laws and regulations.

Long-term
1-Direct the pari-mutuel wagering supervisor to review available wagering monitoring systems and programs and obtain an appropriate system.
2-Develop career paths for investigators, auditors and stewards.
3-Continue efforts to verify and regulate wagering into Kentucky pools.
4-Monitor the progress of national efforts regarding the early closing of pools.
5-Establish regulations regarding past posting, cancel delay, late odds changes and unusually low payoffs.

LABORATORY FACILITIES RECOMMENDATIONS:
1-Establish a nonprofit, world-class research and drug testing institute with a significant accreditation status.
2-Solidify, through further research, the cost estimates and identify potential additional revenue and funding sources.
3-Establish a foundation to begin raising a $10-million endowment for operating expenses.
4-Establish an executive board of up to five members, including a chief executive officer, one member of the KHRC, and one member of the Equine Drug Research Council to guide the institute. The executive board would develop goals and a detailed business plan, collaborate with financing partners, work with the University of Kentucky on organization structure and facility development, and hire a labor directory, among other functions. The Task Force did not address the issue of expanded gambling in Kentucky.

The full Task Force voted to approve the report, which will be sent to Gov. Beshear.