Posts Tagged ‘Alan Marzelli’
Tuesday, August 18th, 2009
By Ray Paulick
Equibase has been a financial success in the 19 years since it was created by the Jockey Club and member tracks of the Thoroughbred Racing Associations of North America. As a reader pointed out in a comment to yesterday’s Paulick Report article on Thoroughbred racing’s official database, Equibase paid out $3.6 million in dividends at the end of 2008 (that’s $2.4 million for the TRA tracks and $1.2 million for the Jockey Club). An earlier press release said Equibase had paid out $24.6 million in dividends since 1998.
But how is the company doing in fulfilling the mission its founders established for Equibase?
Alan Marzelli, president of the Jockey Club and chairman of Equibase, said in 1990 the “promotion and betterment of racing is behind the decision†to start Equibase. The company’s first president, David Haydon, said Equibase would “address racing’s need for fan base expansion.â€
Marzelli can point to the fact that the “industry†through Equibase since 1991 has owned its data, which previously had been collected and controlled by the “Daily Racing Form.†Limited portions of that data have been provided at no charge for promotional purposes to television, media and racetracks. Daily entries, jockey and trainers standings, and horse tracking software are available at no cost, as are race results for a limited time after a race is run. Equibase.com is a popular web site, by horse racing standards, though it pales in comparison with every other major league sport’s Internet presence.
Equibase.com also strikes out, big time, when compared to what the other major league sports web sites offer in the way of free statistics to their fans. It wasn’t until I started really digging around www.mlb.com (baseball), www.nba.com (basketball), www.nfl.com (football), www.pgatour.com and www.nhl.com (hockey) that I realized how woefully inadequate and misguided Equibase.com is as a sports information web site. It’s a commercial site, pure and simple.
Other sports use their web sites in large part to provide information for fans who have an appetite for statistics, whether it’s for the very popular fantasy leagues or for their own curiosity. It’s truly amazing the scope and depth of information you can find on these other sites. The theory is that informed and educated fans are more likely to become engaged with a sport, and providing as much information as possible on the Internet, the undisputed No. 1 source for information gathering, is the way to inform, educate and engage them. It might take a while for those sports to capitalize on fans who visit the web sites; perhaps they’ll go to a game, buy some team merchandise or at the very least provide a pair of eyeballs during televised events.
Racing can capitalize much quicker, since turning fans into horseplayers can be monetized through pari-mutuel wagering. You’d think racing would provide as much information as possible to fans in hopes of transforming them into paying customers, either at the racetracks or through legal online betting accounts. (There are rumors that some people bet on major league sports, too, but in the United States that’s only legal in the state of Nevada, and the sports leagues don’t get any of the revenue from those bets.)
Instead, however, Equibase, the official database of Thoroughbred racing, uses its web site in large part to promote its commercial ventures. Let’s do a comparison:
I’m a baseball fan who grew up in the 1960s watching greats like Willie Mays, Mickey Mantle and Ernie Banks (showing my Chicago Cubs bias). If I wanted to compare the lifetime statistics of any of those players to modern-day greats like Alex Rodriguez or Milton Bradley (just kidding), that information is just a click away at mlb.com.
Even better, if I wanted to see how Rodriguez or Bradley have done against pitchers like Randy Johnson or Roger Clemens, I could plug in the names and, voila, mlb.com gives me those statistics! (Click here for an explanation on how mlb.com’s stats work.)
Now let’s look at some racing greats. Say you wanted to compare the lifetime records of Cigar and Curlin, both of them two-time Horses of the Year in North America. Go to Equibase.com and click on the “search for products†dropdown menu on the left column. There you’ll have an option for “lifetime PP’s.†Type in the names of Cigar and Curlin, add them to your shopping cart, get out your credit card and buy the lifetime records of these two horses for $16. It’s a slightly different fan experience.
Want to know how Cigar’s trainer Bill Mott compares with Curlin’s trainer Steve Asmussen? Sorry, but Equibase doesn’t offer that kind of product. (It is available at the Jockey Club’s other data company, equineline.com, for $7 per report.)
Equibase does offer some products for free, including what it calls “E Leadersâ€â€”horses in various divisions that have produced the fastest Equibase speed figures (a poor man’s Beyer Speed Figure) for the year. I’m not sure how reliable these numbers are, though, since the highest speed figure for any horse racing in 2009 belongs to Researcher, who earned a 132 Equibase speed figure winning the Charles Town Classic Stakes in April. I guess in a sense you get what you pay for.
I’d tell you more about the Charles Town Classic winner, but I’m not willing to spend the $8 for his past performances or buy the chart of his race from Equibase for $1.50.
Charging for lifetime past performances and race charts is just one of many commercial products available at Equibase.com. There are tip sheets selling for as much as $12.50 per racing program, charges for video replays, charts, pedigrees, etc.
Do yourself a favor and go to some of the other major sports web sites, and explore the vast, comprehensive information that these leagues are willing to provide to their fans at no cost. The data is so rich you might get lost for hours, but the result might be a closer bond between you and that sport. There is an investment involved, but these other sports are willing to make that investment to help build and maintain a fan base, especially among the youngest demographic that is most familiar with using the Internet for gathering information.
After you’ve seen some of these other rich and creative web sites, take a look at Equibase.com. I’d be interested in your comments comparing Equibase.com with other sport web sites.
Racing, through the Jockey Club and TRA, made an initial investment in Equibase nearly 20 years ago so that the industry could own its data. The hope I had then, and the hope I still have today, is that the people who run Equibase will look beyond the bottom line of their profit and loss statement, and begin to use the statistics that the industry owns to make horse racing more popular and more accessible. All they’re doing now is making Equibase as profitable as it can be. It’s a bean counter’s mentality, and it’s the kind of business philosophy that will stifle any prospect of industry growth.
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Tags: Alan Marzelli, daily racing form, david haydon, equibase, equibase llc, equibase.com, Horse Racing, Jockey Club, pari-mutuel wagering, past performances, Paulick Report, racing fans, racing information, Ray Paulick, sports betting, thoroughbred racing associations, thoroughbred racing associations of north america, tra Posted in Industry Organizations, Jockey Club | 65 Comments »
Monday, August 17th, 2009
By Ray Paulick
It’s not that much of a stretch to say that Equibase is one of the Thoroughbred industry’s biggest success stories of the last 20 years. It can also be said that it’s one of the industry’s biggest disappointments.
Created in 1990 to end the century-old monopoly “Daily Racing Form†held on the acquisition and ownership of North American racing data, Equibase is a joint venture of the Jockey Club and the member tracks of the Thoroughbred Racing Associations of North America. For most of its existence, the “Racing Form†was owned by Walter Annenberg’s Triangle Publications (other products in Triangle included the Philadelphia “Inquirer “ newspaper, “Seventeen†magazine, and “TV Guide,†which at one time had 20 million weekly readers, the biggest circulation of any American publication; suffice to say Triangle was an extremely lucrative business).
Annenberg and his key lieutenants at the “Racing Formâ€â€”publisher Mike Sandler and editor Fred Grossman—had a cozy relationship with the racing industry. Racetracks were doing well in the 1970s and 1980s and so was the “Form.†Prices for racing’s only daily newspaper went up regularly (always preceded by a page two news brief about the rising cost of newsprint), but if horseplayers and fans complained, there was really no option for them; attempts by other publishers to collect data and compete with the “Form†were quickly squashed, with help in many cases from the racetracks, who didn’t want to upset the applecart.
But in a surprise move in 1988, Annenberg sold Triangle Publications to Australian publisher Rupert Murdoch for $3.2 billion. The transaction made more than a few people in the racing industry nervous. For the first time, they felt threatened that the new owner of the “Racing Form†might not be quite as benevolent as Walter Annenberg and his father had been. In order for Murdoch and Co. to squeeze profits out of this significant investment, there was the fear that these new owners might hold the industry hostage using the historical and contemporary racing data it acquired as part of the purchase.
Not long thereafter, a plan was hatched for the “industry†to begin collecting its own racing data, and Equibase was formed. There were great pronouncements about how Equibase would be used to serve the racing public, making a day of racing more enjoyable, and help address the sport’s need to expand its fan base.
A new publication, the “Racing Times,†launched in 1991 (and folded one year later), became Equibase’s first customer, and before long most racetracks began using Equibase racing data in past performances published in track programs. They were, in fact, competing with the “Racing Form” with their products.
Then and now, Equibase received a fee for every program sold. That has been one of Equibase’s biggest successes: collecting fees at its information toll gate.
Eventually, even the “Daily Racing Form†(which changed hands several more times after Murdoch’s 1988 purchase) became a customer of Equibase, shutting down its own track and field operations that had set the standard for charting American races.
The means by which the data was collected always seemed a bit crude to me. Whether it was the “Daily Racing Form†crew or Equibase’s employees, the method was the same: someone with a pair of binoculars perched in the press box watches a race and calls out (to another person or sometimes into a tape recorder) the running positions of each horse, including estimated margins, at specific points in a race. As you can imagine, it can often take some time to work through a field of a dozen horses, and by the time the chart caller gets through the field, some horses may have changed positions. The only truly accurate call of a race is a horse’s finishing position, which is taken from the photo finish camera.
In short, charting races is a very inexact science, and it can lead to some very misleading charts and past performances that horseplayers, fans and horse owners believe to be gospel. As a former “Racing Form†employee, I would often see charts of races where a horse was said to be 15 lengths behind the leader with a quarter of a mile to run, and then went on to win. Using the formula of one length equaling approximately one-fifth of a second, that horse, on paper at least, theoretically might run his final quarter mile in less than 22 seconds, a virtual impossibility.
I trust that Equibase’s standards have improved over the years, but the bottom line is the charts and each horse’s position in a race at different “points of call†is little more than an estimate made by the chart caller.
Equibase has been promising for almost 20 years now that it is working toward an automated chart collection process. Early in 1991, I felt like an acquaintance of the Wright Brothers at Kitty Hawk when I went out to the Kentucky Horse Park to watch a demonstration of an early chart-collecting system. An Equibase executive cobbled together a microchip processor, some wires, a slow-moving horse and an old Telex machine to show that data could indeed be collected automatically. Of course, getting racetracks to mimic the project with antennas and wires stretched around the racetrack was another thing.
Since then, we’ve seen sports like NASCAR lead the way in global satellite positioning. Trakus, a private company that is not part of the Jockey Club “family of companies,†is the leader in this technology for horse racing. Trakus technology has been in place at Woodbine racecourse in Canada since 2006. Del Mar and Keeneland also use Trakus to give fans a video game-like view of a race. The technology can also be used to automatically chart races and give horseplayers very specific information, such as how far a horse may have traveled during a race (based on how wide a trip he had), and when he demonstrated his fastest and slowest speeds. For some reason, the Jockey Club has not yet embraced this technology.
In between the humorous demo in 1991 and the Trakus installations in 2006, Jockey Club president Alan Marzelli (who is also chairman of Equibase) has promised automated charting of races in the “not too distant future.†In 2002, speaking at the Jockey Club’s annual Round Table, Marzelli said Equibase might be on the verge of revolutionizing how racing information is collected. “We are in the early stages of testing this technology,†Marzelli said, “so we don’t want to get too far ahead of ourselves. But we think that we may be close to finding an answer. If so, this new technology will not only provide entirely new ways for handicappers to analyze races, but it will also provide broadcast enhancements and new media applications that will help make televised racing more compelling and open up additional distribution channels for the sport. This is not a fantasy. Other major sports—football, baseball, and NASCAR being three prominent examples—are already enhancing their broadcasts using this technology, and the information generated by it today. At its board meeting earlier this week, the Equibase Management Committee heard about the success of our initial tests conducted at Keeneland in July, and authorized management to conduct further testing later this fall. So stay tuned for further news regarding this exciting initiative later this year.â€
Seven years later, the industry is still waiting for that update.
In the meantime, Equibase has been a very successful toll booth, charging horseplayers, fans and horsemen for things that other sports routinely give away at no cost. (I suspect it is a very profitable company, though Equibase’s financials are not made public.)
Granted, horse racing is a very statistically-oriented activity, and the collection of the data costs money. But golf, baseball and football (anyone ever heard of fantasy leagues?), among other sports, are also statistically heavy, and those activities manage to collect and disseminate their data without gouging its fan and customer base.
A baseball fan can go to MLB.com and check out box scores of all Major League Baseball games, not just this week, or this month, but last month or last year, or the year before that. There is no charge to go back and relive those games or to see what happened.
If a racing fan wants to go back more than a few days and see the charts of Rachel Alexandra’s (or any other horse’s) races, they have to pay for that privilege. Equibase’s toll booth is pervasive.
And that’s just the beginning of what Equibase charges for. Over the last 20 years, it has become the new monopoly, replacing the “Daily Racing Form†in that role. But is it as benevolent as the “Form†once was?
Tomorrow, we’ll take a further look at how other sports provide information to their fans at no cost, and compare that to horse racing’s official data company, Equibase.
Copyright © 2009, The Paulick Report
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Tags: Alan Marzelli, daily racing form, drf.com, equibase, equibase llc, equibase.com, fred grossman, Horse Racing, horse racing charts, horse racing data, michael sandler, mlb.com, monopolies, nascar, Rachel Alexandra, racing form, racing times, t.v. guide, trakus, triangle publications, walter annenberg Posted in Industry Organizations, Jockey Club | 27 Comments »
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.
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Tags: Alan Marzelli, alex waldrop, anabolic steroids, Breeders' Cup, congressional inquiry of horse racing, eight belles, hiroo onoda, Horse Racing, Jockey Club, Joe Drape, national horsemen's benevolent and protective associati, National Thoroughbred Racing Association, new york times, NTRA, ntra safety and integrity alliance, Paulick Report, Ray Paulick, rick dutrow, safety and integrity alliance, thoroughbred horsemen's association, Thoroughbred Owners and Breeders Association, william c. rhoden Posted in Breeders' Cup, Congressional Hearing, Horse Racing, Horse Welfare, Industry Organizations, Industry Reform, Jockey Club, National Thoroughbred Racing Association, Regulatory Issues, Task Forces, racing injuries | 24 Comments »
Tuesday, March 24th, 2009
By Ray Paulick
Will a bet-processing tote division be the newest sibling in the Jockey Club’s family of companies? That’s the word I’m hearing from a variety of sources within the industry who say the not-for-profit breed registry is itching to get into the tote business with a new, for-profit subsidiary along the lines of Equibase, the horse industry’s official database for racing information that the Jockey Club owns in partnership with the Thoroughbred Racing Associations of North America.
Alan Marzelli, the Jockey Club’s president and chief operating officer, declined to comment when asked by the Paulick Report about the company’s possible entry into the tote business.
It makes perfect sense for the Jockey Club to take over yet another segment of the Thoroughbred industry, though it would be a move that is not universally supported. Would its entry into the tote business be a case of merely doing what’s right for the industry, or an opportunity for empire building by the Jockey Club, which already has six for-profit divisions? Those divisions are Jockey Club Information Systems (a data provider to industry publications, sale companies, and others); equineline.com (which sells breeding and racing statistical reports); Equibase (which sells past performance information to Daily Racing Form and for programs sold at racetracks and provides some free information to the public); TrackMaster (which sells customized handicapping information); InCompass (which bills itself as a technology solutions company for the industry and is involved in such areas as racetrack paymaster accounts); and TJC Technology Services (which provides technological infrastructure and support for the various Jockey Club companies).
These Jockey Club companies are all inter-related. For example, Jockey Club Information Services and equineline.com require pedigree information, which is provided by the Jockey Club’s registration department. Racing results from Equibase are fed into TJCIS, equineline, and Trackmaster products for consumers and into software applications in racetracks. A bet processing or tote company and an account wagering division currently are missing pieces in a Jockey Club strategy to cover as many of the industry’s bases as possible. The various companies must pay for the data, but the money essentially shifts from one pocket to another.
Let’s look a little more closely at the state of the tote industry. The three existing companies – Scientific Games Racing (Autotote), AmTote and United Tote – each has roughly one-third of the North American market. All have been struggling for years, in part because racetracks have played one company against another in contract negotiations and have marginalized their business. As a result, they have not made the kind of profits that lead to substantial investment in research and development, and the end product has been one that is technologically inferior and suspect in its ability to maintain absolute integrity in wagering pools.
All three companies are for sale. AmTote, which Magna Entertainment acquired for $17.4 million in a two-phased purchase agreement in 2003 and 2006, is part of that company’s bankruptcy filing. Last month, Scientific Games, a company that makes most of its money in lotteries, hired a financial consultant to look into selling its pari-mutuel division, formerly known as Autotote. Youbet.com, an account wagering company that has not been profitable, paid $49 million for United Tote in 2005 (at least two times higher than the appraised value of some industry insiders). One year ago, Youbet.com officials said they were hoping to find a buyer for United Tote.
At this stage, a purchase by the Jockey Club of United Tote seems the most likely, and sources say a deal could be announced in the coming weeks. The company has contracts with the New York Racing Association, which walks in lockstep with the Jockey Club. United Tote also serves Keeneland, whose president, Nick Nicholson, was instrumental in the development of the “family of companies” strategy when he worked as executive director of the Jockey Club. United Tote has contracts with the other Kentucky racetracks, including Churchill Downs, which employs AmTote at the other racetracks it owns.
All of the uncertainty involving the three leading tote companies comes at a time when the integrity of the Thoroughbred industry’s pari-mutuel wagering systems is being questioned by racing commissions, track operators, and, perhaps most importantly, horseplayers. Autotote, in particular, has been at the center of several controversies, including the 2002 Breeders’ Cup pick six scandal when three of the company’s employees had the only winning ticket and were in line for a $3-million payout. It was discovered they hacked into the system and processed their pick six tickets after the first four races had been run.
Racing executives familiar with the tote business suggest that United Tote may have the best tote machines, while the back end or software infrastructure for AmTote is the most advanced. Scientific Games is viewed as the laggard of the three companies, from a technology standpoint.
SHADES OF EQUIBASE?
This all sounds a bit similar to when Equibase was created in 1990. The Daily Racing Form had been owned by Walter Annenberg’s Triangle Publications for well over a half-century when he sold it to Rupert Murdoch’s News America Corp. in 1988, ending what had been a very cozy relationship between the Form and the racing industry. Whether this upstart Aussie (whose publishing empire includes the New York Post, Fox and other major media outlets) upset Jockey Club pooh-bahs like chairman Ogden Mills (Dinny) Phipps or they were worried about price-gouging or additional changes in the Form’s ownership will probably never be known. But under the banner of the racing industry collecting and owning its own data (versus a private company like Daily Racing Form doing it), Equibase was established in the imposing shadow of the Jockey Club.
At the time, there were pronouncements that the industry needed to provide more information to fans. Alan Marzelli, then the chief financial officer of the Jockey Club, said the “promotion and betterment of racing is behind the decision” to start Equibase. David Haydon, a longtime Jockey Club employee and the first Equibase president, took it one step further, saying the new company would “address racing’s need for fan base expansion.” Jockey Club chairman Phipps himself said, “Everyone in the industry realizes we have to make a day at the races more enjoyable and less intimidating for the general public.”
Equibase has succeeded as a business. Now, instead of competing with the Daily Racing Form, which eventually closed its track and field data collection operations, the Form is its biggest customer, purchasing past performance information to provide in its daily newspaper and for its online products. Most racetrack programs now include past performances – at a fee to consumers.
But where exactly has Equibase succeeded in expanding the fan base or making the races less intimidating?
Other sports, from Major League Baseball to the National Football League, National Basketball Association, and the PGA Tour, provide extensive data at absolutely no cost to the fans. This information is used by fans to make watching the sports action that much more enjoyable, and allows them to be more informed, whether it’s for their own general knowledge or to participate in the fantasy leagues that have become so popular, especially with young people.
Racing, or more specifically Equibase, insists on charging its fans for some of the most basic data. Lifetime past performances of a single horse cost a consumer $8; lifetime stats on a jockey or trainer cost $7 on Equibase’s sister site, equineline.com. If you want career statistics for a baseball player, just go to Google and type “Barry Bonds stats” and you’ll have a plethora of choices for free.
If you want to look at a simple race chart that’s more than a few days old, Equibase charges you $1.50. You want the box score of an NBA game from last month? Go to NBA.com, and click on scores. They’ll provide you with more stats on the game than you could possibly ever want – at no charge.
“It is symptomatic of our industry being a step behind,” said one racing executive who has grown wary of Equibase’s profit-driven motive and thinks the company has strayed from its original mission. “It’s short-term thinking. If our objective in racing is for the horseplayers to win, we should do everything we can to help him, and increase the churn. That’s where the revenue for our business should come from, not from the statistics the horseplayer needs.”
Hank Zeitlen, the current president of Equibase, said fans can get deals for free past performances from some of the account-wagering companies (which, of course, have to pay Equibase to buy the data) and there is often past performances for “feature races of the week” that Equibase makes available at no charge.
“If you look back to 1990 and see what information was available and how it was made available, we’ve accomplished a lot,” said Zeitlen, who added that it’s unfair to compare racing with other sports. “The economic models of other sports are different than ours,” he said. “Each of those leagues has revenue coming from television. We don’t have that. And Equibase is not a handle-driven business.”
Zeitlen overlooked the fact that the tracks in the TRA that own two-thirds of Equibase (the Jockey Club owns one-third) are handle driven businesses.
JOCKEY CLUB’S THIRST FOR PROFITS
Perhaps it’s this thirst for profits that makes more than a few people wary that the Jockey Club may be getting into the tote business. There are some in that industry who say the Jockey Club, despite its claims, is not a very savvy technology company, and that its entry into the business would not be a giant leap forward – particularly if they wind up with a monopoly. Others believe the Jockey Club should focus on its core business, registering foals, and let private enterprise take care of other segments of the industry.
It was 10 years ago that Tim Smith, then commissioner of the National Thoroughbred Racing Associations, tried to forge a deal between the North American racing industry and IBM Global Services, which promised to modernize the tote system. An IBM executive told the Jockey Club Round Table in 1999 that he had never seen an industry so far behind in technology. The IBM proposal was blown up by some tracks who didn’t see the need for change or improvements in the industry’s tote and simulcasting technology.
Ten years later, we’re even farther behind. It’s clear something must be done to guarantee that the process of handling wagers is improved. If not, the industry will continue to lose the confidence of horseplayers, many of whom are convinced that past-posting of bets and tampering within wagering pools is all too common.
Is the industry ready for the Jockey Club’s family of for-profit companies to grow? Do we really have a choice?
Copyright © 2009, The Paulick Report
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Tags: Alan Marzelli, amtote, autotote, Breeders' Cup, breeders' cup pick six scandal, daily racing form, david haydon, Dinny Phipps, equibase, hank zeitlen, ibm global services, incompass, Jockey Club, jockey club round table, news america, Ogden Mills Phipps, Paulick Report, Ray Paulick, rupert murdoch, scientific games racing, the jockey club information systems, tim smith, tjc technology services, tjcis, totalizator, trackmaster, united tote, walter annenberg Posted in Industry Organizations, Jockey Club, Keeneland, New York Racing Association, Tote System, Wagering, daily racing form | 19 Comments »
Monday, December 29th, 2008
By Ray Paulick
One of the first projects that landed on my desk when I joined the Thoroughbred Times as managing editor in 1988 was a feature story on the Jockey Club, the organization historically entrusted with registering Thoroughbreds and being the keeper of the Stud Book. The article was accompanied by a lengthy mail-in survey of Thoroughbred Times readers. The story and the survey results were of great interest, for at the time I had no idea how broadly the Jockey Club reached across the entire industry and how unhappy rank and file breeders then were with the organization’s service, pricing and activities.
It should be noted that there was an agenda to the article. The Thoroughbred Times was then owned by Richard F. Broadbent, whose Bloodstock Research Information Services was facing new competition from a subsidiary of the Jockey Club. There were questions about whether a tax-exempt breed registry like the Jockey Club should create a subsidiary to compete with a private enterprise company like BRIS, which supplied statistical data to breeders, owners and various publications. A few years later, the Jockey Club helped form another for-profit company, Equibase, which competed with the Daily Racing Form to collect racing results (the Form eventually closed its track and field operations and became Equibase’s biggest customer). The Jockey Club has since started other for-profit businesses.
One of the things that struck me was the comparison between how the Jockey Club and the American Quarter Horse Association conduct their business. The Jockey Club is clearly a breed apart from its Quarter Horse counterpart. The AQHA, then and now, is a relatively transparent organization, one whose membership is open and whose leadership is democratically elected through regional and national elections. There is a board of directors, from which comes an executive committee and elected officers. The AQHA has term limits that prevent individuals from maintaining longstanding control of the organization. The AQHA web site publishes a great deal of information about its governance and membership rules, which can be read here.
By comparison, membership in the Jockey Club has always been by invitation only. Click here for an explanation about membership. It is "governed" by a rotating board of stewards, though that term is used loosely since the Jockey Club has been under the firm control of just two men since 1982, when Ogden Mills “Dinny” Phipps was named chairman and William S. Farish became vice chairman (pictured left). Click here to see the current list of Jockey Club members, stewards, and officers.
The AQHA is a huge organization that maintains the registration of more than five million Quarter Horses, with 135,000 registered in 2007 alone. There are nearly 350,000 AQHA members. According to Internal Revenue Service Form 990 for tax exempt organizations, the AQHA generated $54.4 million in revenue in the 2005-06 fiscal year, the most recent year available. At that time it had $73 million in total assets, including nearly $49 million in investment securities. Click here for the AQHA Form 990.
The AQHA, like the Jockey Club, maintains pedigree records, but also promotes the Quarter Horse breed through horse shows and publishes three magazines (the Quarter Horse Journal, the Quarter Horse Racing Journal, and America’s Horse) that had total circulation of over 400,000 in 2006.
The AQHA charges as little as $25 to register a Quarter Horse foal if done within seven months of birth. The organization is based in Amarillo, Texas, and its highest-paid officer, longtime executive vice president Billie G. Brewer, earned an annual salary of $424,928; treasurer Lee Callaway was paid $221,965 (both figures are from the IRS Form 990.) The two executive salaries represented 5.5% of the AQHA’s total payroll of $11,725,124.
The Jockey Club is also a rich organization, one that is exempt from federal taxes but also has several wholly owned for-profit subsidiaries. The Jockey Club’s 2006 IRS Form 990 states that it registered 37,300 foals that year. The Jockey Club generated $13.2 million in revenue in 2006, the most recent year the figures are available. It claimed $32 million in total assets, including $21.6 million in investment securities. Click here for the Jockey Club Form 990.
In addition, the Jockey Club claimed that its subsidiaries generated over $25.7 million in income for 2006 ($13.7 million by TJC Holdings Inc. & Subsidiaries, which is engaged in information services and software solutions; $4.9 million by The Jockey Club Racing Services, for the collection of Thoroughbred racing data; and $7.1 million by The Jockey Club Technology Services, Inc., for its technology services). Click here for more information on those subsidiaries, which include shared ownership in the data collection company Equibase, and full ownership of TJCIS (The Jockey Club Information Systems and data supplier Equineline), and InCompass Solutions, which provides software systems for racetracks.
The Jockey Club’s IRS Form 990 lists its annual Round Table Conference in Saratoga Springs, N.Y., publication of its Fact Book, and providing financial support to other industry organizations among reasons for its tax-exempt status, in addition to its breed-registry responsibilities.
The Jockey Club charges $200 to register a Thoroughbred foal, considerably higher than the AQHA’s fee. Its last increase was in 2000, when it was upped from $175. The Jockey Club, which for many years was known as the “New York Jockey Club,” relocated its registration department from New York to Kentucky in 1988.
Its highest-paid officer is president Alan Marzelli (pictured, left), who earned $672,796 in 2006, 58% more than the AQHA’s top executive. The Jockey Club has three executive vice presidents: James Gagliano, with a salary of $256,885; Daniel Fick, $243,546; and Laura Banllaro, $243,804. IRS Form 990 also lists but does not itemize another $542,776 in 2006 pension plan contributions for those officers. The salaries represented 39.1% of the Jockey Club’s total payroll of $3,626,092 (exclusive of its subsidiaries, each of which have its own executive staff and employees).
The Jockey Club’s 2006 tax return came to light recently when an entity called “CTBA Boardwatch” (which generally concerns itself with the inner workings of the California Thoroughbred Breeders Association) distributed IRS Form 990 to numerous individuals. A number of those people contacted the Paulick Report and were outraged over the salaries paid to Marzelli and his three executive vice presidents.
I don’t know the going rate of executive compensation for a tax-exempt company in New York, where three of the four Jockey Club officers are based (only Dan Fick, a former AQHA executive, is located in the Lexington offices of the Jockey Club). Perhaps those numbers are perfectly in line with other non-profits. I would imagine, though, that the going rate for an executive staff is higher in New York than it would be in Kentucky.
It does seem strange to me that the Jockey Club continues to maintain a nicely appointed office in the high-rent district of midtown Manhattan, on 52nd Street just off Park Avenue. I doubt that it’s gotten many walk-in customers seeking to register their foals since the registration department was moved to Lexington more than 20 years ago. It is conveniently located near the headquarters of Bessemer Trust, the Phipps family-run wealth management firm whose offices are just a few blocks away on Fifth Avenue.
I asked Jockey Club communications officer Bob Curran why the Jockey Club continues to have a New York office 20 years after the organization’s primary function was relocated to Lexington. A few days later I received the following statement from Jockey Club president Marzelli: “Beginning in 1989, when the first of our commercial subsidiaries was incorporated, The Jockey Club has created and developed a group of for-profit subsidiaries and strategic partnerships, each designed to serve specific segments within the industry by utilizing highly efficient, state-of-the-art technology platforms. We have built and managed this growing list of technology-based companies with a corporate office based in New York and operations centers in Lexington, Ky., and Mountain View, Calif.”
That didn’t really answer the question “why a New York office is necessary” although it did tell me something I didn’t know; namely, that the Jockey Club now has a division in California’s high-tech Silicon Valley town of Mountain View.
The bigger question is who is the Jockey Club accountable to. Is it simply Phipps and Farish and their hand-picked stewards? Is the breeders who have paid registration fees over the 100-plus years of its existence? Is the Thoroughbred industry at large? If there is accountability to the industry, why isn’t there more transparency in the operational and financial activities of the Jockey Club and its various subsidiaries? Why is its membership so restrictive and its governance so secretive?
James Gagliano, one of the aforementioned executive vice presidents, touched on some of these questions, during the Jockey Club Round Table in August in which he discussed some of the activities of the Jockey Club and its affiliate for-profit companies. Click here to read Gagliano’s remarks.
Are you satisfied that the Jockey Club is properly and responsibly representing the best interests of the Thoroughbred industry? Let us know in the comment section below, or take the Daily Paulick Poll about the Jockey Club and its activities, located on the left-hand column of the Paulick Report home page.
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Tags: Alan Marzelli, american quarter horse association, aqha, bessemer, bessemer trust, billie brewer, billie g. brewer, bloodstock research information services, bob curran, breed registry, bris, california thoroughbred breeders association, ctba, ctba boardwatch, daily racing form, dan fick, Dinny Phipps, equibase, Horse Racing, incompass, james gagliano, Jockey Club, jockey club racing services, jockey club round table, jockey club steward, jockey club survey, jockey club technology services, laura banllaro, Ogden Mills Phipps, Paulick Report, phipps family, quarter horse, Ray Paulick, richard f. broadbent, the jockey club information systems, thoroughbred, Thoroughbred breeding, thoroughbred times, tjc, tjc holdings, tjcis, Will Farish, William S. Farish Posted in Breeding, Industry Organizations, Jockey Club, daily racing form | 27 Comments »
Friday, August 15th, 2008
By Ray Paulick
One of the staples of the Jockey Club Round Table Conference on Matters Pertaining to Racing, to be held this Sunday in Saratoga Springs, N.Y., is a report on the activities of the Jockey Club, whose primary responsibility to the industry is registering Thoroughbreds and approving the names horses are given.

Of course, the Jockey Club wants to do much, much more than that, and its executive team, led by president Alan Marzelli, has focused on building the organization’s “family of companies” to include the collection and commercial sales of racing, breeding and auction data, the sale of handicapping information, software development, and technology services to racetracks, farms and other businesses in the industry. Either Marzelli or chief administrative officer James Gagliano will report on Sunday that every branch of the company is doing an outstanding job.
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.
Copyright © 2008, The Paulick Report
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Tags: Alan Marzelli, american graded stakes committee, Antony Beck, augusta national, bessemer trust, Bill Casner, Bill Farish, bloodhorse, bob elliston, Breeders' Cup, charles hayward, Claiborne Farm, D.G. Van Clief, dell hancock, Dinny Phipps, G. Watts Humphrey, Jockey Club, jule fink, Keeneland, Lane's End, National Thoroughbred Racing Association, New York Racing Association, nick nicholson, NTRA, nyra, Ogden Mills Phipps, peter willmot, reynolds bell, Robert Clay, steve duncker, stuart janney, Ted Bassett, Thoroughbred Owners and Breeders Association, TOBA, william farish Posted in Breeders' Cup, Horse Racing, Industry Organizations, Jockey Club, Keeneland, National Thoroughbred Racing Association, New York Racing Association, Paulick Report, Ray Paulick | 8 Comments »
Friday, June 20th, 2008
Have you ever been to one of those business meetings where the boss calls his managers together and “wants feedback” on an idea that, it’s clear to see, he has already decided to put into play? That’s what Thursday’s Congressional hearing, entitled “Breeding, Drugs, and Breakdowns: The State of Thoroughbred Horseracing and the Welfare of the Thoroughbred,” was all about.
The members of the subcommittee on commerce, trade and consumer protection weren’t at all interested in getting feedback from a broad mix of Thoroughbred industry participants. If they were, they would have invited track owners, jockeys and someone representing the Racing Medication and Testing Consortium to testify.
Most glaring, however, was the absence of any racing fans and horseplayers — the people who fuel the entire multi-billionaire-dollar industry with their bets. They would have had plenty to say. Where were all the fans?
Thursday’s hearing was all about reinforcing the predetermined opinion by some - if not all - of the subcommittee members that racing and breeding is in dire need of some form of federal intervention. It was a two-act play, masterfully choreographed by acting chairwoman Jan Schakowsky of Illinois and ranking Republican Ed Whitfield of Kentucky, who tipped their hand that they will try and amend the Interstate Horseracing Act to employ guidelines that could radically change how the sport is regulated and conducted.
Many of racing’s numerous flaws were exposed during the three-hour hearing, which came to an abrupt end when the members were called to the floor of the House of Representatives for a vote. The happiest man in the room when that happened was National Thoroughbred Racing Association CEO Alex Waldrop, the last of a dozen speakers providing testimony. House members were interrupted just before a question and answer session got under way in which Waldrop was likely going to be grilled.
In short order, those problems are:
- Drugs have contributed to a decline of the Thoroughbred breed and Thoroughbred racing
- Research, drug testing programs and horse rescue/retraining efforts are severely underfunded
- The lack of a central authority or national regulatory standards, and the existence of state-by-state regulations, have led to dysfunction
- Existing industry organizations and perceived industry leaders have failed miserably to address the problems successfully
Allowing Congress to interfere with any industry is a frightening thought, given some of the pointless and idiotic questions directed at the two panels. For example, if one of the Congressman had his way, inbreeding would be banned. What’s next, nicking? However, doing nothing under the present industry leadership is the greatest risk we can take.
The uninformed comment about inbreeding was far from being the most outrageous aspect of Thursday’s hearing. It was the complete absence, both in body and spirit, of the racing fan and horseplayer. To my knowledge there was only one mention of fans (by Waldrop, in response to a question) throughout the day, as if they didn’t exist. Let’s not forget that the word “consumer” is part of this subcommittee’s name.
Shame on the committee for not including racing’s ultimate consumers who fuel the industry’s revenue engine.
The NTRA is attempting to put together a coalition of horseplayers, but the NTRA’s track record is not exactly inspiring on many levels. But before we bludgeon that 10-year-old organization to death, it should be pointed out that divisiveness, lack of trust and reticence from other alphabet groups (TOBA, TJC, HBPA, THA, TOC, AAEP, RCI, TRA et al) to give up control emasculated the NTRA and prevented it from having the national oversight and major league commission office status it was designed to have.
Jockey Club CEO Alan Marzelli was pressed hardest by House members and ultimately came out looking the worst of all the industry experts during the hearing. When asked what authority the Jockey Club has to ban steroids and enact other recommendations of its safety committee, Marzelli said it has the “power of persuasion.” It was a pitiful and embarrassing moment for the industry, or a bad attempt by Marzelli to imitate Don Corleone of The Godfather.
The Jockey Club’s same power of persuasion has been ineffective on getting a national license for racehorse owners. If that power of persuasion was so strong, a national owner’s license would have happened 20 years ago when the Jockey Club created an ownership registry, which could have been a first step toward that goal. That boat never left the dock. Instead, we have a patchwork system of state licensing that is a poster child for the industry’s complete and total dysfunction when it comes to regulatory oversight. Look at the situation involving Curlin’s minority owners, the Midnight Cry Stable. Their horse, Einstein, couldn’t run in New York on Belmont Stakes Day because of licensing problems, but could run at Churchill Downs a week later because Kentucky has different licensing rules.
If the Jockey Club’s power of persuasion isn’t strong enough to get something as simple as a national owner’s license accomplished, how can we count on the same failed leaders to persuade 38 state agencies to uniformly ban steroids and enact other necessary change to move the sport forward?
By Ray Paulick
Copyright ©2008, The Paulick Report
Tags: Alan Marzelli, alex waldrop, Congressional Hearing, Curlin, ed whitfield, einstein, Horse Racing, Jan Schakowsky, Jockey Club, midnight cry, National Thoroughbred Racing Association, Paulick Report, racing medication and testing consortium, Ray Paulick, Www.paulickreport.com Posted in Congressional Hearing | 8 Comments »
Thursday, June 19th, 2008
The Paulick Report will be blogging live from Thursday’s hearing on horse racing from Washington, D.C.
9:45…The guests begin to assemble for the hearing on “Breeding, Drugs, and Breakdowns: the State of Thoroughbred Horseracing and the Welfare of the Thoroughbred,” and Christian Fjeld, staff counsel for the subcommitee on commerce, trade and consumer protection, doesn’t seem very happy about Rick (no show) Dutrow. “We havent heard from him, so we are still expecting to see him here, Fjeld said. “His chair and name placard will be here unless we here from him before the hearing starts.” Fjeld said it is “unusual” for someone not to call the committee to say they are unable to attend.
“Unusual?” That’s a good way to describe Mr. Dutrow.
9:50…Debbye Turner, correspondent for the CBS Evening News, is here to put the finishing touches on a piece she has been working on about Jess Jackson and the horse racing industry. She said it will air tonight. TV people sure look a lot better than print folks. She’s seated next to me and Joe Drape of the NY Times, which could make anyone look good.
9:55…The room is filling up quickly. Heavy press attendance and horse racing folks who are not testifying, including Roy Jackson, who raced Barbaro with wife Gretchen.
10:07…Meeting called to order by Democratic Rep. Jan Schakowsky of Illinois. She acknowledges subcommittee chairman Bobby Rush of Illinois (yes, the former Black Panther, but that is sooo yesterday), who is recovering from a serious health issue. She then reads an opening statement that charges horses racing are “doped with cocaine, caffeine and anabolic steroids.” A breeding expert apparently, she goes on to talk about how Eight Belles was inbred too much to unsound horses. Someone on her staff must be a Bill Nack fan. Nack wrote a piece critical of the pedigree of Eight Belles, who died in the Kentucky Derby, being inbred to Native Dancer. “It has become almost impossible to tell what their natural condition is (because of doping).” Oh, brother, this is going to be a long day. “What’s going on here?” she asks. Hey, that’s not fair to use that slogan. The Blood-Horse editorial page owns that. “Work with us to clean up your sport,” she says.
10:12…Next up is Rep. Ed Whitfield of Kentucky, the ranking Republican of the subcommittee. He cites three primary problems. “Our horses race more on drug induced ability than on natural ability,” Whitfield says. Second problem, he said, “is a lack of transparency.” Third issue “is a lack of an authority to make decisions and enforce rules and regulations. There is not any one entity that can enforce regulations.”
10:15…In fairness to No Show Dutrow, Joe Drape leaned over and said, “They lie,” in reference to politicians. What? OMG. “I know for a fact Dutrow called Whitfield’s office,” he said. Sorry, Rick. You’re absence is excused as far as I’m concerned.
10:10…Rep. Cliff Stearns of Florida talked about his home region in Ocala, Fla., then shifted to Eight Belles. “Was this a freak accident with Eight Belles?” He said he doesn’t want the federal government to run horse racing. “I don’t want you to work with us. I want you to work without us,” he said. Stearns talked about “rainers who give their horses cocaine and all they get is a slap on the wrist. Stearns said horses are committing suicide. I wonder, do they have mental problems, too, in addition to their physical weakness?
10:25…Rep. Lee Terry of Nebraska saluted Jack Van Berg, the Hall of Fame trainer who will be testifying later. Terry said he worked at Ak-sar-ben (hey, that’s Nebraska spelled backwards!) during college and the Van Berg name was huge back then. Wonder if the good Congressman knows Ak-sar-ben is toast.
10:30…After all the opening statements by congressman are finished, acting chairman Schakowsky states, “This hearing is completely bipartisan.” That could be a first in this town.
10:35…Schakowsky slaps Dutrow a hard one. “Disappointed” by his absence, she says. Lot of chuckles from the audience when she says she hopes, after he feels better, Dutrow will join the efforts to clean up the sport. Now I am conflicted. Who should I believe: Joe Drape or a politician?
10:37…Alan Marzelli of the Jockey Club is the leadoff hitter. Says he is “grateful” to be here. Anyone have a lie detector machine around here? A look around the room shows it is standing room only. “The thoroughbred safety committee’s work has just begun,” Marzelli says, after outlining the recommended changes the committee announced Tuesday. Marzelli said he is “confident” that 2008 will be the last year anabolic steroids are used in horses for racing or training.
10:43…Richard Shapiro, chairman of the California Horse Racing Board gets off a good line: “We used to have twice the horses and half the vets. Today we have twice the vets and half the horses.” Is “pharmacopia” a word? Shapiro used it to describe the prevalence of medication in racing today. He cites clenbuterol as an example of a drug that is misused. “It was intended for cattle,” he said.
10:46…Shapiro cut off by the chairman…”You have one minute left.” He reads faster! Shapiro wants a national racing charter with one set of rules for all. He is against a national regulatory body, but wants a national racing commission. Not sure I understand the difference.
10:50…Van Berg not happy with the status quo. He needs horses, and he should tell the chairwoman that Alysheba isn’t dead (unless she knows something we don’t…thanks for the comment and the heads up Alicia)
10:53…Randy Moss is g-oo-oo-oo-d. He should be on TV, he is so Randy. Great inflections and solid commentary. He talks about how U.S. racing’s emphasis on drugs has hurt the sport, then slowly says: “This…must…change.”
Moss for racing commissioner. Seriously.
10:56…Arthur Hancock has a tough act to follow, but his folksy Kentucky accent should go over well. “No one’s in charge,” said Arthur. We’ve heard this over and over, and it’s been Arthur’s mantra for many years. Will this change things? “Chemical horses make chemical babies,” he said, discussing drugs. Great story about the cat and mice. Finishes on a nice touch, quoting Winston Churchill with a twang.
11:03…Jess Jackson trumps Arthur Hancock! “I’m an eighth-generation horseman,” he proclaims. Arthur, the poor sap, is only a fourth generation horseman. And Jackson said he saw Seabiscuit…the horse…not the movie! I heard the movie was better than the horse. But the book was better than both. But seriously. Drugs? “Ban them,” he says. Jackson also wants more disciplinary measures taken against veterinarians. David Foley, executive director of the American Association of Equine Practitioners looks sternly in Jackson’s direction and whispers something to veterinarian Wayne McIlwraith, who speaks on the second panel. Jackson wants a national owner’s organization and said two words should be changed in the Interstate Horseracing Act to accommodate a national owners’ organization to negotiate with the tracks. I’m afraid Jackson is going to get the gong from the chair if he doesn’t wrap it up.
11:10…Question time from the chair. Do you believe in a national body? Yes or no? All say yes (but Marzelli says “industry” not “government”). Mixed responses about the federal government regulating drugs: Marzelli was a clear “no,” but the others say yes, some with conditions. Should all drugs be eliminated? Yes, all around. This should be easy, then, right? She’s onto Marzelli’s confidence about swiftly changing the drug rules nationally. Why? “I’m an optimist at heart,” Marzelli said. “We certainly make it difficult on ourselves.” Now he is patting himself on the back about creating Equibase…there’s a smokescreen if I ever saw one to avoid a very good question.
11:16…Whitfield aims at Marzelli, too, about the powerless of the Jockey Club to get its recommendations adopted. “What power do you have?” he asked. “We have the power of persuasion and consensus building,” Marzelli said, in a very low tone. “I would like to see the industry regulate itself.”
11:23…”The Jockey Club is a fiefdom!” Jackson says in response to a comment from Marzelli. Much laughter from the audience. Congress wants to enforce rules against inbreeding or wants the Jockey Club to do that? Marzelli is against these “selective and arbitrary measures.”
11:28…”The army needs a general,” Hancock says, in reference to a change in the Interstate Horseracing Act putting owners in charge of simulcast contracts.
11:30…Voting break.
What he would have said. Dutrow’s written testimony:
When I was contacted by one of your staffers and asked to speak here today I agreed because I wanted to share my insights and points of view on some of these issues and I hope that I can be helpful here.
I also hope that I was not asked to be here because of some of the problems I have had in the past. I hope your staff people were sincere in inviting me because they valued my insight. I want to be part of the solution and not part of the problem.
I also ask for your patience today. I’m not always the best at explaining things. I’ve been taking care of horses all my life. I dropped out of high school more than 30 years ago to take care of horses and sometimes I think I do better with horses than with people.
As you may know, I am the trainer for Big Brown, the very talented horse who won the Kentucky Derby and the Preakness this year. Despite my best efforts and those of the team of people around him, he did not win the Belmont Stakes but that’s horseracing. Big Brown is healthy and our plan right now is to keep him racing this summer and fall.
In addition to Big Brown, I am responsible for approximately 150 horses at any one time – 110 in active training and 40-50 at various farms getting ready to race. My operation has about 75 people, including grooms, stable hands, exercise riders, blacksmiths and vets, who care for our horse on a daily basis.
While some people’s focus is on the big days, we care about our horses and keeping them safe 365 days a year. Taking care of horses is a way of life for us. Our horses get the best care we can give them. They are gifted athletes and are trained to give their best performance when they run.
During the Triple Crown, I was asked several questions about my past and I expect those will come up today so let me address them.
My barn has been penalized in the past for medication violations. I was suspended and fined five years ago when traces of a prohibited substance, mepivicaine, turned up in a test for one of my horses. I said then that we don’t use it and I don’t know how it happened.
We have also had violations when legal, permitted, therapeutic medications have shown up in race day tests because they were given to the horse too close to the race. That’s something that many trainers in the country have had to deal with. But I take responsibility for the condition of my horses.
During the Triple Crown I told the media that my horses are given Winstrol on the 15th of each month. This is an FDA approved medication and is within the current rules of racing in most states. It is something we started a few years ago at the recommendation of one of our vets.
People have asked me why I do it. My observation is that it helps the horses eat better. Their coats brighten. They’re more alert. It helps them train. Having said that, our barn has won hundreds of races with horses that weren’t on steroids. Earlier this winter, I won two one million dollar races in Dubai, where steroids are prohibited. If steroids are banned in the United States, we’ll stop using them.
I also said that I’m not qualified to speak to the science of it. For that, I would suggest that you talk to the vets and scientific experts.
Thank you.
12:05…During the break, Congressman Whitfield’s wife, Connie, has subcommittee staff counsel Fjeld cornered. She, of course, is the vice chair of the Kentucky Horse Racing Authority accused recently by Kentucky State Sen. Damon Thayer of having a conflict of interest.
Interesting observation about the first panel from a Washington insider: “Well, they got that one set up just like they wanted.” In other words, the subcommittee is pushing for national oversight, and with the exception of Marzelli, all the witnesses said some form of national oversight is necessary.
12:25…Having some technical issues (hey, the Internet’s still new, right?).
During some lively (?) questioning from the chair, Arthur Hancock says the veterinarians are getting rich giving all those drugs to horses. Bet Arthur wishes he would have studied harder at Vanderbilt and gone to vet school. Foley and McIlwraith of the AAEP simultaneously lean forward with increased interest.
Moss makes a good comment in response to a question from Whitfield about why people don’t want a national authority. “Fear,” Moss says, “fear of lack of control.”
Van Berg sounds bitter talking about these “young guys” who come onto the racetrack and want to win and will do anything to win. “The veterinarians are mostly training the horses now,” he says. “If you don’t know what’s wrong with the horse yourself, you shouldn’t have a trainer’s license.”
12:36…Hancock was asked why the various organizations can’t work together, and whether any one organization is worse than others. He said no one was worse than others. “Ego has a lot to do with it,” Hancock said. “They all envision themselves as the saviors of racing. They have their own CEO. It’s some good people trying to pull a wagon, but they’re all pullin’ in different directions.
12:43…Whitfield asks Marzelli if the Jockey Club gives money to organizations that rescue or retrain Thoroughbreds for careers after racing. Like a good politician, Marzelli avoids the direct question, talking about the Jockey Club Foundation for human charities and the Grayson-Jockey Club Research Foundation that funds research on horse health issues. Whitfield repeats the question. Marzelli responds: “We believe every owner is responsible for their horse.” In other words, the Jockey Club does not support horse rescue/retraining operations. At least the Jockey Club is opposed to slaughtering horses, according to Marzelli…and probably babies, too.
12:48…Second panel, mostly veterinarians reviewing research, so for the next 45 minutes or so I’m going to do all I can to stay awakezzzzzzzzzzzzzzzzzzz.
12:54….Rep. Pitts of Pennsylvania stifles a series of yawns during Dr. Stover’s testimony reviewing statistics on fatalities at California racetracks over the past 25 years. Whitfield learns forward and does that squinty thing with his eyes, suggesting he is trying very hard to understand all this data flowing his way. Nowhere near the fireworks of panel one. But wait till Alex Waldrop is up and the subcommittee members turn on him.
1:00…Wayne McIlwraith takes the mike. He is one of the best veterinarians in the business and has probably presented research thousands of times during his distinguished career. If every practitioner at the racetrack had his ethics and knowledge, we wouldn’t be in such a mess.
Incidentally, for those who want to read the testimony of the veterinary panel and the previous panel, their written statements will be posted on the subcommittee’s web site later today: http://energycommerce.house.gov/Subcommittees/ctcp.shtml
1:10…Dr. Mary Scollay is reading too fast for me to comprehend at this stage, but I think she must have had some Jockey Club Kool-Aid during the break. She said “Jockey Club” a whole lotta times during her review of the research she’s been involved with.
1:12….Allie Conrad has a lot of passion for what she does at CANTER Mid Atlantic, and the subcommittee members seem to paying far more attention to her than to the previous veterinary presenters. Perhaps it’s because she is talking in layman’s terms, or maybe because she is “on message” with what the subcommittee wants to hear. In talking about some of the horses she ends up with at CANTER, she said: “These horses weren’t injured from a freak accident or a tragic misstep. They were injured over time with the assistance of trainers, owners, and veterinarians — all who shoud have put the horse’s welfare as a higher priority. … Racing is not bothering to take care of its own horses, and are allowing the public — often not even racing fans — to take care of the problems.” Powerful stuff and effective with the committee members, I’ll bet.
1:18…Here comes who I bet will be the day’s whipping boy, NTRA’s Alex Waldrop, who proudly said his organization is a “consensus builder.” Alex sounds defensive already, like he knows what’s coming during the Q&A session later. Maybe he can be saved by the bell (when the members have to go vote.)
1:21…Waldrop is almost shouting now. “This industry is no longer a rudderless ship.” Take that Arthur Hancock! “The last thing this industry needs is yet another layer of regulation.”
1:26…Brief question session because of an upcoming vote. Whitfield doesn’t ask a question of Waldrop but makes a statement to him: “I don’t think it’s unreasonable for the government to set minimum standards. I think the first panel displayed very clearly that there are serious problems within the industry.”
1:30…Who’s to blame, one Congressman asks, for the drug problems in racing? The consensus answer from the panel: “everyone.”
1:32…Hearing adjourned abruptly for a vote. Alex Waldrop walks away and mutters, “Saved by the bell.” Wonder if he’s been reading my blog?
Line of the day from Jack Van Berg when asked what it’s like to train horses today: “It’s chemical warfare out there?”
That is all for now….
Copyright ©2008, The Paulick Report
Tags: Alan Marzelli, alex waldrop, Allie Conrad, arthur hancock, Barbaro, CANTER, Cliff Stearns, Congressional Hearing, ed whitfield, Horse Racing, jack van berg, Jan Schakowsky, Lee Terry, Mary Scollay, randy moss, richard shapiro, rick dutrow, Roy Jackson, Wayne McIlwraith Posted in Congressional Hearing | 52 Comments »
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