PAULICK REPORT FORUM brought to you by Breeders’ Cup: CONTESTING NEW YORK WITH CONTESSA
By Ray Paulick
Gary Contessa, born and raised on New York’s Long Island, got his start in the horse business as a teenager working with Standardbreds at Roosevelt raceway, but switched over to Thoroughbreds while still in high school, walking hots at Aqueduct beginning in 1974.
He became a groom, then worked as assistant trainer first for Jimmy Picou and then for Hall of Famer Frank Martin at the New York tracks. When he decided to open his own public stable, he wasn’t able to get stalls in New York, so he called Bobby Kulina in New Jersey, who gave him his start there. He didn’t make it back to New York until the mid-1990s, but has been a fixture ever since, winning numerous training titles and leading all New York trainers by wins in four different years.
A member of the board of the New York Thoroughbred Horsemen’s Association, Contessa has become a vocal critic of New York Gov. David Paterson and other politicians who have failed to name an operator for a video lottery terminal facility approved for Aqueduct nine years ago.
On Sunday, after horsemen held a rally at Belmont Park saying 35,000 jobs are at risk and caused the first race at Aqueduct to be cancelled, Contessa said the New York racing industry was facing a “catastrophic situation” because of the VLT delay and rising purses in neighboring states that are getting subsidies from slot machines or casinos. Contessa provided more details about that state of New York racing to the Paulick Report.
You described the New York racing situation as catastrophic. Explain what you mean and how it has affected your own stable.
First of all, it’s expensive to train in New York. The day rate minimum is around $90 a day and some get $120. My payroll is about $70 a day per horse and it’s another $20 a day to feed a horse. It’s an expensive place to train. And the competition is coming from the fact Philadelphia Park purses are on par with us, and the day rate is $50-$60. Penn National is creeping up on us on purses. Trainers can train for much less there and in New Jersey. We are under tremendous pressure from New York’s Department of Labor to pay time and a half for overtime. That’s raised our payroll 25% minimum. Nowhere else does that happen. At every other track the employees—the hotwalkers and grooms–are paid a flat rate. Workers’ comp is 17% at a minimum. Feed, hay and straw are expensive because it’s trucked in from hundreds of miles away. In New Jersey, there’s farmland right by the tracks.
I have owners leaving me to go race at Philadelphia Park. I have owners calling me now asking if I’ll have a presence at Monmouth Park. Owners that used to be great New York owners are saying if you go to New Jersey I’m ready to get back in the game.
I used to have over 100 horses; now I’m in the 60s. I still have the same owners, but they are losing money. Overnight and stakes purses are being cut, but expenses are the same or more. Why would they want to keep racing in New York? I spend a good part of my day convincing owners to stay, that things are going to change. But it’s been nine years, and nothing has changed. The VLTs have been our savior for nine years and it’s one false promise after another. Two governors ago, George Pataki picked Steve Wynn’s group, Excelsior, and said they’d be up and running in 45 days. Then (Gov. Eliot) Spitzer walked in and said we are starting over again. It’s been one political blunder after another.
What’s happened with your employees?
I had as many as 97 people working for me. This week’s payroll is 42. Every week I get a printout from the state Department of Labor listing every former employee on unemployment, and right now I have 27 former employees collecting. It used to be two or three. Believe me, if the purses were up, if the VLTs were here, if there was a reason for my owners to invest, they would be in. Those same owners want to race in New Jersey or Pennsylvania now.
So are you going to open divisions outside of New York?
I have been forced to, and anyone with any kind of brain has done this, apply for stalls at Monmouth. I have owners who will get back in the game because of Monmouth. Slowly but surely I am headed the wrong way in New York.
In an effort to survive in this game, I am going to have a presence in Monmouth Park. If a maiden runs for $40,000 in New York and $75,000 at Monmouth, how does a trainer say to his owner, we’ll run in New York for $35,000 less. I have a gun to my head right now. We are falling way behind here.
Why stay in New York then?
I’m New York born and raised. My family is here, my wife and I own a 200-acre farm. We breed here. New York is where I want to be, but I’m finding it more and more impossible to survive as a horse trainer in New York. This year for the first time ever I sent 15 horses to Gulfstream. I thought I’d never do that but it was successful.
So what happens if the VLTs are installed?
Everyone around us has slots or money from casinos: Penn National, Philadelphia Park, Woodbine, New Jersey, and purses have gone up. It’s been a nightmare because of the politicians, the governors. Yet we are a bigger metropolis, have more people, and our VLTs would be a tremendous success. We have such a pool of people. We have tracks with trains running to them. Imagine the people who would show up. Yet nine years and nothing. And then we have the problem with a bankrupt OTB operation. We can’t progress without VLT money. Betting on horses alone is not going to put us on the same level as the others around us.
And the VLTs is not really about the horsemen. We are looking at 7% or less. The lion’s share of VLT revenue goes to education in New York. It’s been estimated New York’s school system will get $1 million per day once the VLTs are going at Aqueduct. School budgets are being cut, so it is just ridiculous
Have you ever been tempted to throw in the towel, give up on racing, or move on to another state?
I own an arcade that has laser tag and is used for a lot of birthday parties. I was smart enough to invest in another business. That’s been a major success. There’s not a day goes by where I haven’t thought of cashing in my chips and go into that business full time and open more businesses. But my heart is in this game. My presence in New York is because I love people and horses and nature. I love being able to be a horse trainer. I love the game and it kills me that not a day goes by that I don’t think about getting out
The frustration level must be very high. What led to Sunday’s boycott?
The governor finally chose a provider, the Aqueduct Entertainment Group. Everyone from day one said it would never happen, and it got thrown out. We were afraid that was going to happen. So here we go again, another false promise, another group that can’t deliver, another negative situation and black eye for New York racing. Our frustration boiled over. We are not going to stop. We are going to continue and make people notice. It’s a do or die situation. Nobody is going to survive this. We have to wake people up.
Copyright © 2010, The Paulick Report
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Tags: aqueduct, belmont park, Bobby Kulina, Breeders' Cup, david paterson, eliot spitzer, Frank Martin, gary contessa, george pataki, Jimmy Picou, laser tag, monmouth park, New York Thoroughbred Horsemen's Association, Paulick Report Forum, penn national, Philadelphia park, Ray Paulick, Roosevelt raceway, vlts, woodbine
March 24th, 2010 at 8:14 am
I worked with Gary as part of the Excelsior team and he was fantastic to work with. Despite opposition from the horsemen that sold out to Empire, he stood with us every step of the way. Go back and read Excelsior’s proposal for racing. It was a blueprint for NY racing. When we got screwed, NY racing got screwed.
March 24th, 2010 at 9:20 am
I completely understand Gary Contessa’s problems and why his owners want to race at Monmouth. We started our stable only three years ago after unsuccessful partnerships. As middle class investors, it is becoming increasingly difficult for us to stay in NY although we also are born and raised, worked and retired here. We live only 40 min. from Belmont and Aqueduct and want our horses to train and race there and enjoy the process first hand. Our friends who own thoroughbred horse farms are struggling to survive. We care about them too. When we try to sell our foals at auction, their being NYbreds is no longer the attraction it once was when owners at Phila. Park receive 40% bonuses. The state laws governing this industry are obsolete and counter productive. I believe Senator Eric Adams is trying to get the legislation moving and have all the stakeholders negotiate an acceptable reorganization plan for the bankrupt NYCOTB. KIosks in sports bars should be part of that plan because young sports bar patrons are the most likely demographic to become interested in our sport. Our long term survival is dependent on attracting younger fans. Our short term survival depends on the survival of a reorganized NYCOTB and Aqueduct’s VLT racino. Breeders need a fair percentage of NYRA’s simulcast revenue to support their awards.
March 24th, 2010 at 10:06 am
Gary’s absolutely right about the New York cost structure. For an owner to break even on a horse, that horse has to win $50,000-$60,000 in purses, not an easy task when purse levels are back where they were a decade ago. And, as he points out, trainers don’t make any money on a $90 day rate either; they need the 10% from wins if they’re going to have any money to live on.
Either we get some desperately needed action from Albany, or we watch the horses keep heading south and west. The problem is, how do you get the attention of people in Albany who seem totally unconcerned with anything but their own job protection and perks?
March 24th, 2010 at 10:28 am
It’s really a sad testamony to our system of government when people have to resort to these kind of measures because politicians are unwilling or unable to do the job we’ve elected them to do.
March 24th, 2010 at 10:43 am
The horsemen, both east and west, need to stop looking for a bailout and take a long look at themselves. We cannot continue to expect others to solve our problems in horse racing. Look within, come up with things you and your fellow horsemen can do, to bring about change. What we have been doing in years gone past no longer works. Wake up! Years ago I was taught by a talented editor to bring a solution when tabling criticism. Horse racing can start by addressing the young with a “grass roots” promotion. We’ve blown the last two generations, and soon that number will be three. Just like we seldom here 4H mentioned any longer, we have put the horse on one side of the fence and the family and prospective young people who might become interested, on the other. I gave this suggestion to Ron Charles, CEO at Santa Anita. Nothing has happened. Dedicate an area, and there is plenty of that these days, to an entire barn. Pay a retired horseman or horsewoman, to run it. Bring in retired horses. Give accessibility to those families who wish to participate. Hands on. I know the word liability will come in, but deal with it. You can have a facility on the grounds of the track and one off. Work with the local school district. I have seldom seen kids who get the exposure, the chance to get up close to a horse, who didn’t become enamored with the experience. Let these young people, brush, groom, walk, and work with the horses any day they wish. Then we might see some young people gravitate back to the world of the horse and horse racing itself. Secondly, make the horse racint experience more enjoyable. If you don’t start a grass roots problem soon, it won’t matter what you do in the other areas. The young are off doing lots of other things and it doesn’t involve horse racing. I have more suggestions but I don’t want to bother you with them. The horsemen need to wake up and begin solving the issues which have seen our great sport go into free fall.
warren eves
las vegas
March 24th, 2010 at 11:10 am
We sympathize with New Yorkers, but California has the highest minimum wage in the country at $8 per hour with mandatory $12 overtime. We are classified as an entertainment industry rather than agricultural, which makes our labor laws even worse with restrictions on hours. Our taxes, insurance and unemployment exceed everyone else’s.
Warren, years ago Santa Anita had a “hotwalking school” much like what you described that was run out of the receiving barn, designed to help new people break into our sport. Students groomed, walked, bathed, etc. It didn’t really work. These students were not adequately prepared for a real job and it did not seem to generate new interest in racing.
March 24th, 2010 at 11:22 am
The New York story is a vivid illustration why our racing/breeding business must get government out of it. Since the politicians first spotted a percentage of Pari-Mutuel handle as a cash cow, they have been milking it to a slow death.
Faced with that reality, is it not amazing that we still have calls for Federal Government “intervention”? The “Interstate Act”, with it’s upside down structure, is the story of what government can do for us. Remember, “I’m from the government, I’m here to help you”, ?? That line always got laughs. It is still getting laughs. The laugh is on us.
The perpetual problem is finding a strong person to take the leadership of all who wish to throw out the old and bring in the new.
Volunteers? Anybody? Anybody?
March 24th, 2010 at 1:28 pm
Garrett Redmond—I agree with you. We have too many wishy-washy people lacking leadership skills. I think Alex Waldrop would be a logical choice to steer TB racing’s future, if only he had the authority to implement the changes we need.
March 24th, 2010 at 1:33 pm
Garrett, with all due respects, in your pipe dream, are you smoking hash, crack, or what?
March 24th, 2010 at 3:31 pm
Garrett, you are correct in that we need leadership. I believe we have the leaders in our industry, some new, some old. I listened to a young one at the Belmont Park rally, who spoke. The problems, greed, disorganization and empowerment. The bigger problem, as long as we are derived from gambling, Government is never going away or letting us go. And as everyone knows, we don’t exist without gambling.
John
March 24th, 2010 at 7:15 pm
I HAVE TO LAUGH, GARY CARES ABOUT HORSES? HOW ABOUT GO MIKEY GO? WINNER OF THE ALBANY FOUND IN A KILL PEN. ONCE HE WAS EMBARASSED HE DID SOMETHING UNTIL THEN IT WAS “NOT MY PROBLEM” GO TO YOUR ARCADE AND GET OUT OF RACING
March 24th, 2010 at 7:28 pm
Does anybody here realize that the takeout on NY racing is 26%?
How can anybody with an IQ higher than single digits think that significant growth will ever happen charging 26%?
Welfare money might plug the holes for a while, but don’t ever expect any significant growth in handle.
March 24th, 2010 at 8:00 pm
ITP Says:
March 24th, 2010 at 7:28 pm
Does anybody here realize that the takeout on NY racing is 26%?
Hey dumbo…it is better to keep your mouth shut and have people wonder if you are a fool than it is to open it and remove all doubt.
NYRA TAKEOUT %
Takeout (percentage of each dollar wagered retained by racetrack)
16% Win, Place and Show
18.5% Daily Double, Exacta, and Quinella
16% Pick 6 on non-carryover days.
26% Pick 6 on carryover days, Pick 3, Pick 4, Trifecta, Superfecta.
March 24th, 2010 at 8:02 pm
What on earth is Garret Redmond talking about???
March 24th, 2010 at 9:32 pm
geese,
26% takeout on any bet is criminal.
appx. 1/3 of NYRA’s total handle is charged 26%.
Charge the pools with the most potential for growth 26% which equals absolutely no chance for growth…and you are calling me dumbo?
Hilarious stuff!
Welfare wanted!
March 24th, 2010 at 10:28 pm
Gary, I wish you the best. And training at MP or Philly is/will be a nice fallback, because you’re (rationally) describing a lost cause.
At some point, make the break. Escape from the Third World of horse racing (NYS).
March 25th, 2010 at 1:06 am
The leaders in New York were unfairly taken to task by the former governor of New York. In their weakened state, they have been unable to mount any enthusiasm among the ranks to get the pols off their case. It is a pathetic and dire situation.
New York is the most important racing venue in the country and it continues to be a political football.
Maybe somebody should start cultivating Andrew Cuomo right now and forget the current powers in Albany.
March 25th, 2010 at 7:50 am
Steve Wynn had no association with Excelsior Racing until April 2007, so how could former Governor Pataki, whose term expired in 2006, according to Mr. Contessa have picked Wynn’s group? At the time of the Ad Hoc committee recommendation I thought Excelsior’s public faces were Steve Swindal/Yankees and Richard Fields?