Archive for the ‘TOBA’ Category

Delaware Park received a safety accreditation in June from the NTRA Safety and Integrity Alliance. It’s not known how the Delaware Racing Commission rule change affects that status.

The regulations were based on studies tying increased incidence of catastrophic breakdowns and injuries to toe grabs. WinStar Farm co-owner Bill Casner, former chairman of the Thoroughbred Owners and Breeders Association, presented some of those statistics during a talk at the 2008 Jockey Club Round Table in Saratoga Springs, N.Y. , in which he said horses and jockeys may be at higher risk when front toe grabs were worn. 

However, the Delaware commission reversed the regulation for the same reason. “The commission felt that the present regulations were putting jockeys in unnecessary danger,” said Wayne, who added that both the Delaware Jockeys Association and Jockeys’ Guild supported the change from two millimeters to four.

Random notes while waiting for the ice to melt …

The devastating snow and ice storm that hit Kentucky earlier this week has created serious economic hardships on Thoroughbred farms, many of which are without electricity and have suffered major damage, just as the foaling season is hitting full swing and the breeding season about to begin. Let’s hope organizations like the American Horse Council, the NTRA, Thoroughbred Owners and Breeders Association, the Kentucky Thoroughbred Association and the Kentucky Equine Education Project are in contact with government officials to seek relief, now that Gov. Steve Beshear has asked the Obama administration to declare a federal emergency.

Horse farms are already under extreme economic pressure because of the plunge in bloodstock prices, and this latest problem is only making things worse for them. It’s at times like these that these alphabet soup organizations can actually do some good.

DID FRANK STRONACH’S ONE-VOTE MARGIN over IEAH Stables in the Eclipse Awards outstanding owner category come by virtue of several racing secretaries who work for him? I have a great deal of respect for Stronach’s racing and breeding operation, which has produced solid numbers for many years now, but I just can’t fathom how 2008 was an Eclipse Award-winning year for him.  Ahmed Zayat’s stable earned slightly more money but only ranked sixth in the number of first-place votes. IEAH had a far superior year in terms of Grade 1 winners. George Strawbridge’s Augustin Stable had a better year when the number of starters was taken into consideration, as did the racing stables associated with Sheikh Mohammed. Here is the year-end ownership standings by money.

Apart from the National Turf Writers Association, which has historically published how its members vote, there is no disclosure from Daily Racing Form or the National Thoroughbred Racing Association about who votes – never mind who each individual votes for. But the NTRA should insist that racing secretaries or any other voters who work for racetracks owned by Stronach’s Magna Entertainment not be allowed to vote in categories where there is a potential conflict of interest. That would include the leading owner and leading breeder categories. The awards are too important to permit any conflicts of interest or suspicions of impropriety.

In the owner and breeder categories (the latter of which was for years determined by a committee vote), there seems to be little imagination or thought put in by voters, who more often than not look at which owner and breeder is at the top of the money list that is supplied with the ballot. If the people who vote for Academy Awards were that lazy, then “Paul Blart: Mall Cop” would win the Oscar for best picture this year.

Opportunity (the number of starters) should play a role in voting for outstanding achievement by an owner or breeder. Twice in the last eight years, a breeder who produced two individual champions in the same year from a small band of broodmares (Virginia Kraft Payson, with Farda Amiga and Vindication in 2002, and Aaron and Marie Jones, with Speightstown and Ashado in 2004) did not even get enough votes to be among the three finalists! That’s insulting to the thousands of Thoroughbred breeders who either can’t afford to or don’t choose to maintain massive numbers of broodmares.  (Click here to see what I wrote about this issue a few years ago at Bloodhorse.)

The NTRA needs to address this, either by eliminating the vote and simply giving the awards for leading owner and breeder to whoever wins the most money, or by changing the system of selecting the outstanding individuals in these two categories. I don’t think enough voters understand the importance of this category or what “outstanding” means when it comes to owning or breeding Thoroughbreds.

SPEAKING OF THE NTRA, what is its future? The organization is a shell of its former self, when it had widespread industry support and a mission to improve the economics of racing and breeding through increased pari-mutuel handle, marketing and greater exposure on television. Following its split from the Breeders’ Cup, the NTRA has lost much of its economic clout and influence, as it no longer has the annual championships to promote to the general public or to race sponsors that were tied in to group purchasing (i.e., John Deere, NetJets, Dodge), which only a few years ago produced upwards of $100 million a year in sales. Following the NTRA-Breeders’ Cup “divorce,” group purchasing through NTRA Advantage has dropped significantly.

Today, the NTRA seems to be playing more defense than offense, reacting to crises (i.e., the death of Eight Belles in the Kentucky Derby, Congressional inquiries, totalizator problems) but not really having the resources to go on the offensive in any areas, including marketing and promotion.

Complicating matters (and this isn’t new) is the ongoing struggle to maintain membership in the NTRA. Churchill Downs Inc., which is tabbed to pay approximately $400,000 in dues for its various tracks in 2009, hasn’t recommitted to membership. A source says Churchill might considering paying $200,000 in dues.  An NTRA official told the Paulick Report he hopes Churchill executives see value in the NTRA’s legislative activities, the “Racing to the Kentucky Derby” television series on ESPN, NTRA Advantage purchasing, the National Handicapping Championship, and the Safety and Integrity Alliance. The interesting thing about the latter, I’ve been told by sources, is that Churchill Downs CEO Bob Evans is the one who insisted the NTRA do something about the safety issues that led to the creation of the Safety and Integrity Alliance.

Magna apparently hasn’t committed to renewing its NTRA membership, either. If the NTRA loses the two largest track ownership companies, it will be further weakened, perhaps terminally.

CORPORATE SPONSORSHIPS ARE A CHALLENGE in the current economic climate, whether it’s the PGA Tour, NASCAR or horse racing. But it was, nevertheless, a surprise to see Bessemer Trust drop its sponsorship with the Breeders’ Cup. I would think the wealth management firm formerly chaired by Ogden Mills (Dinny) Phipps and now run by his cousin, Stuart Janney Jr., is encountering the same economic challenges that many financial institutions are (though Bessemer’s investment strategy is believed to be conservative).  

Janney responded to an email with the following comments: “I would say our reasons for dropping out are as follows. First, we have been a sponsor for some time, which means many of our clients have been entertained at a Breeders’ Cup event and having them back again is possibly less appealing than providing a different venue. Second, the two-day format works better for others than it does for us. Third, we have never been able to really derive full value from the TV ads as our target audience is very narrowly focused. Fourth, as we look at other sponsorships and ways to thank our clients or meet prospects, it helps in tighter times to have this money available. We believe our involvement with the Breeders’ Cup has been beneficial to Bessemer and the staff at the Breeders’ Cup has been a pleasure to work with.”

Copyright © 2009, The Paulick Report

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Bob Evans, president and chief executive officer of Churchill Downs Inc., said during a Friday morning press conference at the company’s flagship track in Louisville, Ky., that the CDI board of directors discussed the possibility of reducing the field size of the Kentucky Derby during a regularly scheduled meeting in New Orleans last week.

The Derby’s maximum field size of 20 is under scrutiny in the wake of the death of the filly Eight Belles in last year’s Derby, even though her fatal injuries occurred after the finish and apparently were unrelated to the number of runners or trouble she may have encountered in the race. The Derby traditionally has the largest field of any race in the United States. No Derby starter has fallen during the running of the race since 1970, when Holy Land clipped heels and fell going into the far turn.

By contrast, Breeders’ Cup fields are limited to 14 starters.

Maximum field size of 14 horses and the prohibition of fillies running against males were considerations in an original discussion document circulated by the National Thoroughbred Racing Association to industry leaders who formed what ultimately came to be known as the NTRA Safety and Integrity Alliance.

Field size or sex limitations were not part of the final recommendations of the NTRA Safety and Integrity Alliance Pledge, which can be viewed by clicking here.

Evans said CDI has devoted a great deal of time and resources to examine a wide range of safety issues since the death of Eight Belles and has adopted all of the safety recommendations made by committees formed earlier this year by the Jockey Club and Thoroughbred Owners and Breeders Association.

The CDI board discussed the reduction of the field size, Evans said, though he gave no indication whether a change will be made. “For now, it’s the way it’s always been,” he said. Nominations to the Triple Crown races, including the Derby, state that the size of the Derby can be “up to 20 horses.”

A reduction in field size might not be greeted favorably by horse owners and trainers who throughout the winter and spring closely follow whether their 3-year-olds are in the leading 20 contenders, based on money earned in graded or group stakes races. Churchill recently announced a marketing agreement with Kempton racecourse in England that will guarantee one spot in the Derby field to the winner of the Kentucky Derby Challenge Stakes, a 1 1/8-mile race on Polytrack, on March 18.

Handle on the Derby would also decline in the event of a reduction in the field size. Evans said Churchill has researched Derby handle in relationship to field size but would not say how much handle might fall. A reduction from 20 to 14 starters would also cost Churchill Downs $300,000 in lost entry and starting fees ($25,000 to enter and $25,000 to start).

Evans discussed the Derby field size and other safety measures following a media briefing announcing that Oaks and Derby ticket prices, with a few exceptions, would be frozen in 2009. “Our slowing economy is having a pronounced effect, and many of our customers have been affected in various ways as well,” Evans said. “Although the Kentucky Derby occupies an elite spot in the world of sports and tickets are typically in high demand, we want to keep our price points at the same level to help our customers in this challenging economic climate.” Click here to read more about the ticket price freeze.

The only exceptions will be scheduled price increases in the 30-year personal seat license program, which are coming off a three-year price freeze; some luxury suites and Marquee Village accommodations; and reserved seats in the infield.

Churchill Downs is also offering the opportunity for on-track customers to buy Derby reserved seats in a sweepstakes running each day from tomorrow (Saturday, Nov. 22) through Nov. 29. Individuals whose names are drawn will be eligible to buy two Derby tickets ranging in price from $88 to $207. (Derby tickets range in price from $88 for infield reserved seats to $693 on millionaire’s row.) One thousand of the tracks 55,000 seats are being offered in the sweepstakes. For more details, click here.

Copyright © 2008, The Paulick Report

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The Labor Day announcement that Stonerside Stables has been sold by Robert and Janice McNair to Dubai’s Sheikh Mohammed is troubling news – not over concerns that the sheikh’s Darley operation may become a dominating force in American racing and breeding but because of the symbolism of McNair’s departure from active participation in our sport.

With the exception of a few horses they are retaining, the McNairs sold the multi-state breeding, training and racing operation lock, stock and barrel for an undisclosed sum that surely approaches or exceeds $100 million.

The McNairs began development of the farm and racing stable in 1994, a mere 14 years ago. And now, just like that, they are getting out. Pfft!

Why?

The press release announcing the sale said Robert McNair found it increasingly difficult to devote enough time to Stonerside in light of his ownership of the National Football League’s Houston Texans, a franchise that McNair bid $700 million to buy and which played its first NFL game in 2002, five years after the Houston Oilers moved to Tennessee and were renamed the Titans. Despite going their first six seasons without a winning record, the Houston Texans were appraised by Forbes magazine as the fourth most valuable team in the NFL (behind the Dallas Cowboys, Washington Redskins and New England Patriots) with an estimated value of over $1 billion.

To get the Texans and return the NFL to Houston, McNair outbid entertainment mogul Michael Ovitz and billionaire oilman Marvin Davis, among others, who wanted to bring a franchise back to Los Angeles, which had lost the Rams to St. Louis and the Raiders to Oakland. McNair knew that the NFL was the sports world’s most valuable league, and understood the power that a strong league office, with the support of team owners, had in shared media rights, merchandising, sponsorships, and marketing. Stepping up with a bid of $700 million seemed like a big risk, but now it looks like a bargain.

While McNair was busy starting his NFL team, he also lent his support, time, personal resources and expertise to a project that the Thoroughbred Owners and Breeders Association was trying to launch: the Thoroughbred Championship Tour (TCT). The TCT was a property Thoroughbred owners would create through an investment of $25 million, hosting a series of races showcasing top horses in divisions tied to the Breeders’ Cup at tracks throughout the country. The TCT would control media and wagering rights for those races.

McNair was named chairman of the TCT, which after its public unveiling in 2003 was slow to get off the ground for a variety of reasons, including TOBA’s staffing inadequacies. TOBA board members and TCT officials went to the Breeders’ Cup and National Thoroughbred Racing Association (which at that time were effectively one organization) for support, but they were stonewalled by some of the same people who helped kill previous initiatives, including Fred Pope’s National Thoroughbred Association. Leading the charge against the TCT was G. Watts Humphrey, who along with Will Farish controlled the executive committee of the Breeders’ Cup until its governance was changed and its board elected by nominators.

The stonewalling worked. After a series of meetings among racing organizations that went on for years, TCT announced in 2005 that it was “suspending operations” – which might be a stretch. There never really were any operations…only discussions.

The opposition of Humphrey and other “old guard” Thoroughbred owners and breeders to the TCT and its “new guard” supporters had carryover effects beyond this attempt to create a series of races for the best horses in training. There were hard feelings by people like McNair who were trying to bring change to an industry that has long resisted it. Some in the new guard kept pushing for change through the Breeders’ Cup election and governance process, which still remains under the control of the old guard. Others have backed away from industry initiatives after getting a bad taste in their mouth from their experience with the TCT.

McNair is getting out of the horse business almost entirely, instead putting all of his considerable energy into the NFL, where there is more enlightened leadership and, as a result, heightened opportunities to grow a business.

This much we know: the NFL’s gain is the horse industry’s loss.