Posts Tagged ‘Breeders’ Cup World Championships’
Wednesday, May 27th, 2009
By Ray Paulick
The “polls” open on Monday, June 1, for the election of 13 individuals to the board of members and trustees of the Breeders’ Cup. Eligible to vote are breeders who nominated foals or stallions to the Breeders’ Cup program in 2008. There are 25 individuals seeking the 13 positions. Click here for the list of nominees.
Earlier this month an article in the Paulick Report outlined some of the positive changes that are bringing more transparency and efficiency to this year’s members and trustees election.
In past Breeders’ Cup elections, for example, there was no disclosure of the number of votes to which breeders or stallion syndicates were entitled, and no tabulated results were reported when all the ballots were counted. Both of those issues have been corrected for the 2009 members and trustees election.
There still are some issues that need addressing, including one involving voting rights for stallion owners. Breeders who own major shares in syndicated stallions are unable to vote those shares unless they happen to be the syndicate manager. The ballots are emailed to the entity (usually the stallion farm) that paid the stallion nomination, and the Breeders’ Cup board (dominated by stallion farm representatives) voted not to allow “split” balloting. In other words, if you own 40% of a stallion that stands for $50,000, you do not get the 40 votes that your stallion ownership should entitle you to. The syndicate manager is allotted all of a $50,000 stallion’s 100 votes (each $500 in nominations is equal to one vote). It shouldn’t be that difficult for those ballots to be split, and it certainly seems like the right thing to do.
Because tabulated results of past members and trustee elections have not been made public, there is no way of knowing how close the voting was. But the Paulick Report has learned that the majority of Breeders’ Cup nominators who received ballots for the 2007 election did not vote. In fact, according to a source, fewer than 25% of the ballots mailed were returned.
What that suggests to me is that many breeders felt their vote would have very little impact. Perhaps they felt the stallion farms controlled the election, and their one or two votes were insignificant.
Collectively, however, those individuals who each nominated only a handful of horses to the Breeders’ Cup can have an enormous influence on the election. Every vote matters. (For confirmation of this basic tenet of democracy, see the 2008 election for the U.S. Senate in Minnesota.)
Why is the election of the board of members and trustees important? Simply stated, the people elected by nominators decide the future of the Breeders’ Cup through their election of the 13-member board of directors. It’s the smaller board that makes critical decisions on issues ranging from whether to continue the stakes supplement program, to site selection for future championships, to the executive team that manages the Breeders’ Cup on a daily basis.
So, if you are one of those individuals and want your votes to count, you have to make certain the Breeders’ Cup has your correct mailing and/or e-mail address to e-mail or mail you the voting information (on June 1, you should receive a log-in name and password for the secure on-line election site, and voting is open for two weeks).
You also want to make certain Breeders’ Cup and its election partner, True Ballot Election Services and Solutions, have you registered for the proper number of votes. (For questions, contact Dora Delgado, the Breeders’ Cup’s senior vice president of nominations, at bcnominations@breederscup.com).
Since there is very little time for public campaigning by those seeking election to the board of members and trustees, the Paulick Report is hoping to provide some information on each of the candidates. We have asked all 25 of the candidates to answer a few questions about why they are running, what changes, if any, they might want to see in the Breeders’ Cup, and how they feel about some of the issues related to operations and governance of the organization.
The Paulick Report plans to publish those responses in their entirety before voting begins on Monday. We think it will help all breeders make the most informed decision they possibly can before casting their votes.
Copyright © 2009, The Paulick Report
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Tags: Breeders' Cup, Breeders' Cup board of directors, breeders' cup election, Breeders' Cup governance, Breeders' Cup members and trustees, breeders' cup nominations, Breeders' Cup World Championships, Paulick Report, Ray Paulick Posted in Breeders' Cup, Industry Organizations | 9 Comments »
Monday, February 2nd, 2009
The Breeders’ Cup board of directors meets Wednesday, and they’ve got a lot to talk about. The organization that hosts the two-day world championships is facing difficult financial challenges caused by a steep reduction in stud fees that contribute toward a significant portion of the Breeders’ Cup annual operating budget. Foal nominations also are expected to be down in 2009. The 2008 event, hosted by the Oak Tree Racing Association, failed to produce the $5-million in on-track revenue that Oak Tree guaranteed to the Breeders’ Cup, and the two organizations are negotiating a settlement on the difference. This year’s event, scheduled at Santa Anita, is projected to produce well short of $5 million.
Compounding these financial pressures was the loss of approximately $11 million in the stock market, dropping Breeders’ Cup cash reserves from $40 million to $29 million. As a result of the declining revenue, market budgets and racing telecasts have been cut. The board initially voted to suspend the Breeders’ Cup stakes supplement program, but reversed the decision after an outcry from nominators. To make up for revenue shortfalls, the board voted to use some of its cash reserves.
Some industry stakeholders are beginning to speak out, suggesting that the Breeders’ Cup management team and board of directors may be jeopardizing the future of the program with some of their decisions. Among those critics is Peter Blum, a longtime, Atlanta-based owner and breeder who wrote a guest commentary in the Jan. 10 issue of Thoroughbred Times saying the time has come for breeders to “take back” the Breeders’ Cup from those who currently run it.
Two weeks later, Breeders’ Cup board member Satish Sanan responded with a counterpoint to Blum that was also published in the Thoroughbred Times. Sanan spoke with the Paulick Report about Blum’s criticism, and also outlined a Breeders’ Cup strategic planning committee that Sanan is heading.
Blum wrote a response to Sanan’s commentary that was published as a letter to the editor in the Jan. 31 issue of the Thoroughbred Times, and also copied the letter to the Paulick Report. In the interest of continuing the dialogue about the Breeders’ Cup management and governance issues, we are republishing the letter below in its entirety.
Blum’s viewpoints printed here do not necessarily represent those of the Paulick Report. I spoke with Blum over the weekend, and learned more about the specific criticism he has with how the Breeders’ Cup board of members and trustees and its smaller board of directors are elected, and how the board can be more transparent. Those comments will appear in tomorrow’s Paulick Report. – Ray Paulick
Management changes are needed at Breeders’ Cup
Election process flawed; all breeders should have input into the organization’s direction
By Peter Blum
I feel compelled to respond to Satish Sanan’s guest commentary in the Jan. 24 edition of Thoroughbred Times.
It is apparent that Mr. Sanan has contributed in major ways to several positive accomplishments achieved by the Breeders’ Cup, and I applaud his efforts and his commitment to “the Cup” and to the industry. I hope, also, that Mr. Sanan and other genuinely involved members of the inner Board do not take my comments personally, as my comments are not intended to be personal in nature. Even more importantly, none of my comments are an “attack” on the Breeders’ Cup itself. In no way do I wish to damage the concept or viability of the Breeders’ Cup per se and our important festival of racing.
My intention is simply to speak out about the poor fiscal decisions made by management and the way our money is invested and allocated. I am also greatly concerned that the original purposes of the Breeders’ Cup have been re-directed further away from benefitting the breeders who write the checks that make the Cup races possible. The shocking decision to eliminate the 121 supplemental stakes races is powerful evidence of a management culture and a decision-making process that is off-track and out of step with constituents who already receive a paltry amount of breeders’ awards in return for their contributions.
Although the decision was quickly rescinded because of widespread outrage, the mindset that led to the original announcement is disturbing. Many options were available instead of eliminating the entire supplemental program. For example, the program could have been scaled back in number, or all supplemental purses reduced by a certain percentage. In addition, purses for the Breeders’ Cup festival could also have been scaled back. The title of Breeders’ Cup “champion” is a huge motivator and, to most owners, worth more than the purse money.
Frankly, it is hard to stomach an investment strategy that led to losing approximately 25,000 foal nominations in a high-risk stock market. Knowing that paid-in money had to be paid out, this failure of fiduciary responsibility is inexcusable.
Furthermore, I am concerned about the process involved in electing the inner Board and the skewed voting structure that is in place to keep the same people in power. The deck is stacked when Breeders’ Cup officers, past presidents, and founding board members are also allowed to vote (if necessary) on who gets in the inner circle. It appears that four officers, six founding members, and two former presidents are eligible to vote on the composition of the inner board. This virtually ensures that the same small group of people maintains their power and control over the Board.
We need a cross-section of industry participants with an effective mix of fresh ideas and high-level business expertise to develop new strategies that serve the breeder, while preserving our championship events in the best way possible. However, I fail to see how a new mix of people and ideas can be put in place unless the election process is changed.
I am further troubled by the lack of communication on important issues and decisions between the management/inner Board and the many accomplished and dedicated horsemen on the outer Board. The fact that many members of the outer Board first learned by e-mail of the decision to drop the Supplemental Stakes Program, just one hour before the press release went out, is hard evidence of leadership operating in a vacuum.
As with Mr. Sanan, my comments about Greg Avioli’s leadership are intended to be descriptive, and not personal. In my Jan. 10 guest commentary, the only mention of Mr. Avioli’s name came about because the Thoroughbred Times editorial staff inserted his name in place of my titular reference to “the CEO of the Breeders’ Cup.”
If mentioning Mr. Avioli by name suggests anything that needs addressing, however, then let him speak up about the many questions and observations regarding his leadership that have recently appeared in print. A leader must be held accountable for his actions.
I have been deeply moved to hear from so many concerned breeders and respected industry participants who have thanked me for my efforts to bring attention to what I and many others see as poor strategic decisions. I have been told a humbling number of times how much my being a voice for their concerns is appreciated.
I asked a number of questions in my commentary which Mr. Sanan chose to ignore. The only one I believe he tried to answer resulted in his stunning statement that our industry is better off today than it was in 2006 when he became involved as a Breeders’ Cup inner Board member. I am not sure we are looking in quite the same way at an industry with falling attendance, lower handle, shrinking purses, a steadily declining fan base, and a continuous exiting of owners. Even Las Vegas not that many years ago accounted for 10% of the national handle, but now only brings in 4% of the total. Readers can decide for themselves whether or not we are better off today.
On a positive note, I agree unequivocally with Mr. Sanan’s last paragraph which reads: “In difficult times like these, we need more dialogue and less name-calling. We need constructive people looking for solutions who are willing to work together to make things better.” And, I thank Mr. Sanan for his leadership on a Breeders’ Cup strategic planning committee that is currently seeking to obtain input from professionals outside the industry related to formulating an effective long-range plan. Gaining perspective and ideas from “outside” is an intelligent way to proceed, but it will still be up to the Breeders’ Cup management and inner board to evaluate the sense of specific ideas and strategies. Therefore, it is essential that we elect the best and most representative people as possible to fill decision making positions on the Board.
I believe that if people are not part of the solution, they are part of the problem. Where Mr. Sanan and I differ, perhaps, is about who should be the constructive people looking for solutions. In this regard, however, the recent addition of Don Robinson of Winter Quarter Farm to the inner Board is a welcome development. As a relatively small but successful breeder, Mr. Robinson brings a needed perspective to the table. Hopefully, he will be an active and assertive voice to represent many other small breeders who often seem to be forgotten.
This is a time to speak up or, before long, we may not have much to speak up about. It is clearly a time when we need to put our egos aside and work cooperatively and cohesively toward injecting more effective ideas into the formulation of crucial decisions that affect the entire industry. The same small group of people in power should not have the ability to re-elect themselves year after year.
We cannot continue down the same path that has led us to the sad place where we find ourselves today. Together, we can make a difference to bring about much needed change.
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Tags: Breeders' Cup, Breeders' Cup board of directors, Breeders' Cup World Championships, Don Robinson, Greg Avioli, oak tree racing association, Paulick Report, peter blum, Ray Paulick, satish sanan, thoroughbred times, winter quarter farm Posted in Breeders' Cup, Industry Organizations | 8 Comments »
Friday, January 23rd, 2009
By Ray Paulick
Satish Sanan has never been afraid to speak his mind, whether he’s at a Thoroughbred auction, the racetrack or a corporate boardroom. Still a relative newcomer to this industry (he and wife Anne bought their first yearlings at Keeneland in 1997 for his family’s Padua Stables), Sanan has been a proponent of greater transparency and disclosure in many facets of racing and breeding.
A native of India who was educated in England and is now a U.S. citizen and successful businessman, Sanan was first asked to join the Breeders’ Cup board in 2003. He was elected to the 13-member board of directors when the organization restructured its governance in January 2006. “I’ve seen the good, the bad, and the ugly when it comes to the Breeders’ Cup,” Sanan told the Paulick Report, “but I’ve seen a lot of progress lately.”
If there is progress in the future, Sanan might deserve a large share of the credit. He is head of a strategic planning committee that’s hired a world-class consulting firm to examine virtually every aspect of the Breeders’ Cup and present a strategic plan to the board of directors in July. The committee was his idea, after he criticized the organization for not having a five- or 10-year strategic plan, instead operating tactically on a year-to-year basis and making decisions on what Sanan called “knee jerk reactions” to events.
But while Sanan has been critical of some aspects of the Breeders’ Cup, he strenuously objected to the tone and content of an editorial written by owner-breeder Peter Blum that appeared in the Thoroughbred Times of Jan. 10, 2009, and was referenced here in the Paulick Report. Sanan wrote a rebuttal to Blum that was published in the Jan. 24 edition of the Thoroughbred Times, citing a series of changes and improvements to the Breeders’ Cup since the new board was elected three years ago. (Neither Thoroughbred Times commentary is available online.)
“I felt the (Blum) article was all negative and non-factual,” Sanan told the Paulick Report. “He is objecting to a number of things, but doesn’t back it up with anything, and I tried to go through it step by step and back it up with a lot of data.”
Sanan said there are some who will criticize “whatever the Breeders’ Cup board and its management do. The perception is that it’s still the ‘old guard,’” he added, “that (board chairman) Bill Farish runs it and his dad (William S. Farish of Lane’s End) tells him what to do. But the reality is a lot of people on that board are pretty damned vocal and will say what they want to say. From operations to communications to financial management to the whole structure, I tell you it is so much better than it was five years ago.”
The younger Farish and chief executive officer Greg Avioli worked closely with Sanan in the early stages of the strategic planning process, beginning in August and September. “We asked for volunteers (among the 48 individuals on the Breeders’ Cup board of members and trustees) and got a very positive response, with more than 15 committee members,” Sanan said.
During a personal trip to London, Sanan scheduled an appointment with Spectrum Value Partners, a global consulting firm that was referred to him by Malcolm Glazer, owner of the Tampa Bay Buccaneers of the National Football League and majority owner of the English Premier League football giant Manchester United. Spectrum Value Partners offers strategic advice to a number of telecom and media clients worldwide, and also has a roster of sports clients, including several teams in the English Premier League. They also have had some horse racing clients, according to Sanan, including At the Races television, the Melbourne Cup and Victoria Cup. Click here to learn more about some of the sports consulting done by Spectrum Value Partners.
“We needed a firm that can take a 500,000-mile view and help us put together a five-year plan,” Sanan said. “The Breeders’ Cup needs to put a plan in place, like NASCAR did 10 years ago, something that says, ‘Here is where we want to be in five years, or 10 years.’
“They did a terrific presentation to the board, and the process has started,” Sanan said.
The first step was development of a lengthy questionnaire distributed to the 48 Breeders’ Cup members and trustees. The nearly 70 questions cover considerable ground, including sections on governance, nominations, perceptions about the Breeders’ Cup, comparisons with other sporting events, international issues, external challenges, and expectations about the future. The consulting team from Spectrum Value Partners, led by partner William Field and assisted by Janice Hughes, Richard Mooney and Sam Evans, will then conduct one-on-one interviews with roughly 50 major industry stakeholders from around the world. It will also gather information from racetracks and horseplayers, Sanan said.
In the midst of this, a two-day retreat for the strategic planning committee will be held in South Florida in February.
“One of the things I’ve been critical of is that we rely on one-day of revenue (now two days) with the championship races and on stallion and foal nominations,” Sanan said. “Breeders’ Cup needs to find alternative forms of revenue and not be dependent on foal nominations from breeders, but to somehow do more for breeders. Should we consider multiple cities for the event, like the World Cup does in soccer? We are in the baking stage, but I believe something good is going to come out of this.
“Whether or not it will be implemented remains to be seen.”
Putting together strategic plans is something Sanan has done in all of his businesses. “If you can put together a five-year plan and execute it, it’s very helpful,” he said. “You may have to adapt the plan each year, tweak it a little because of external events, but we’ve always executed these plans in my businesses. For some reason, a lot of people don’t do it in this (the Thoroughbred) industry.
“There is a big difference between running a business and building a business,” he added. “It’s in building and growing and transforming that you learn a great deal. The Breeders’ Cup is a great entity with a good brand name. We should be able to generate a couple hundred million dollars worth of revenue. This can be transformed into a huge, international, highly successful organization. Whether we can get there or not, I don’t know. But as part of the process, I’m going to give it a go.”
Copyright © 2009, The Paulick Report
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Tags: at the races, Bill Farish, Breeders' Cup, Breeders' Cup board of directors, Breeders' Cup World Championships, english premier league, Greg Avioli, Horse Racing, malcolm glazer, manchester united, melbourne cup, nascar, padua stables, Paulick Report, peter blum, Ray Paulick, satish sanan, spectrum value partners, tampa bay buccaneers, Will Farish, William S. Farish Posted in Breeders' Cup | 10 Comments »
Monday, January 5th, 2009
By Ray Paulick
“It’s hard to get half the people in this industry to agree on what day it is,” a Central Kentucky breeder said to me a couple of weeks ago, shortly after the Breeders’ Cup announced suspension of the stakes supplement program for 2009. “I can’t believe 83% of the people voting in your poll agreed that the Breeders’ Cup board made the wrong decision.”
The day after the results of the Daily Paulick Poll were reported (83% opposed the decision by the board of directors not to use cash reserves to fund the program, 10% supported it and 7% were unsure), the Breeders’ Cup reversed field, reinstating the stakes supplements – at least for 2009. Breeders’ Cup president Greg Avioli said he did not “anticipate the fervor of the response” to the original decision to suspend the program. Apparently, the poll results reflected the response Avioli and board members received in the way of telephone calls and emails from nominators to the Breeders’ Cup from around the country.
This wasn’t the first time judgments ran strong on an issue on which readers of the Paulick Report were asked to vote. The polls are not scientific, but the results are quite interesting and we are flattered by the daily response. This much we’ve learned: You’ve got opinions.
The most recent results, in fact, represent the strongest sentiment of any of the 40 polls we have conducted since just before the Breeders’ Cup World Championships in late October. (Click here to see archives of all the Daily Paulick Poll results.) We asked, “Does the National Thoroughbred Racing Association provide a strong central organization to move racing forward in the future?” The results have been stunning, with 94% saying “no” and only 6% answering “yes.”
In some ways, the question about the NTRA mirrored the results of earlier polls regarding the state of the industry and thoughts about some of the organizations that lead it. In mid-November, we asked, “In general, are you satisfied or dissatisfied with the way things are going in the Thoroughbred industry in the United States at this time.” The question was parallel to the right track/wrong track question the Gallup organization periodically asks of American citizens about the state of the nation.
According to our poll, 91% answered “dissatisfied,” suggesting the industry is currently on the wrong track. Of the remainder, 4% said they were satisfied and 5% were unsure. One e-mailer suggested that the 4% who said they were satisfied must not have understood the question.
Along those same lines, in early December we asked, “Are you confident the individuals in charge of the most prominent racing and breeding organizations in the United States are adequately addressing the problems the industry is currently facing?” That resulted in an 85% no confidence vote, with 10% saying they are confident in our industry leaders and 5% unsure.
A specific question about one of the year’s biggest stories, the creation of the NTRA Safety and Integrity Alliance, indicated skepticism among voters. While 8% agreed that it was a “major step forward in the areas of medication and safety issues and will result in significant improvements” and 27% called it a “good idea, but it’s too early to say whether or not it will be effective,” fully 44% voted that the alliance was “designed to keep the federal government from stepping in and taking action” on safety and medication. Another 22% said it will be “ineffective because the NTRA lacks authority to enforce its recommendations.”
Poll responses to questions about how to improve the economics of racing were less conclusive. For example, we asked which of three areas of growth were most important to the future success of racing: reinvigorating on-track business, expanding account wagering through TV or on-line video streaming, or getting subsidies from slot machines or other forms of gaming. Reinvigorating on-track business got the most votes, 45% of respondents, barely ahead of the 41% who believe account wagering is the industry’s best hope. Only 14% believe growth from slots/alternative gaming is the answer. A more specific question about slot machines ended with a four-way dead heat, with each of the following answers getting 25% of the votes: 1) slots are a short-term fix to boost revenue; 2) they are a long-term necessity for racing to be competitive; 3) they are a necessary evil; and 4) I oppose slot machines at tracks.
On the issue of simulcast revenue, the poll run in conjunction with an article by Fred Pope on what he calls “ Priority 1: Racing’s Business Model” found 63% agreeing with Pope that host tracks and owners where the live race is run should get the lion’s share of takeout revenue. Another 29% believe it should be divided equally between the host site and where the bet is taken, and only 7% support the current model that leaves most of the revenue from simulcast wagers with the bet takers.
The level of takeout has been hotly debated in the comment sections of Pope’s article and several other related pieces. Our only poll question on the subject came after the Kentucky Horse Racing Task Force recommended an increase in takeout to help fund additional staff for the Kentucky Horse Racing Commission. Only 17% agreed with that recommendation, with 83% opposed to an increase in takeout to fund the commission.
We’ve touched on many other areas in our polls. For example, 55% of voters opposed Breeders’ Cup putting all of the filly and mare races on the Friday program of the two-day championships, with 18% in support and 27% taking a “wait and see” approach; 49% opposed having the Breeders’ Cup dirt races run on a synthetic track, while 39% supported it and 12% unsure. In the breeding world, in mid-December, 65% of voters said stud fees had not been reduced enough, 31% said the reductions were “about right,” and 4% felt they had been lowered too much. A comparison of the three highest-priced new stallions of 2009 found that Henrythenavigator offered greater value and opportunity for success to breeders than Curlin and Big Brown. The votes were 52% for Henrythenavigator, 44% for Curlin and 4% for Big Brown.
Finally, in light of the depressed bloodstock markets and a downward trend in pari-mutuel handle in 2008, a year-end poll asked readers if they believe 2009 will be a better year. Only 24% said they feel 2009 will be improved from 2008, with 52% saying it will be worse and 24% believing it will be the same.
Naturally, we hope our readers will be proven wrong and that 2009 will be a year that the industry addresses some of its biggest issues: organizational structure, leadership and a new business model that reflects the reality that roughly 10% of wagers are taken on-track where a race is being run. It’s clear there is a high level of discontent currently running throughout the industry, but it’s just as obvious that the passion to have racing stage a comeback is equally strong.
Copyright © 2009, The Paulick Report
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Tags: Account Wagering, advance deposit wagering, ADW, Big Brown, Breeders' Cup, Breeders' Cup World Championships, Curlin, daily paulick poll, filly friday, fred pope, gallup poll, Greg Avioli, henrythenavigator, Horse Racing, kentucky horse racing task force, National Thoroughbred Racing Association, NTRA, ntra safety and integrity alliance, Paulick Report, priority 1: racing's business model, racing's business model, Ray Paulick, right track/wrong track, Simulcasting, stud fees, synthetic racetracks, takeout, Thoroughbred breeding, thoroughbreds Posted in Account Wagering, Breeders' Cup, Breeding, Horse Racing, Horse Welfare, Industry, Industry Organizations, Industry Reform, National Thoroughbred Racing Association, Simulcasting, Slot machines, Synthetic surfaces, Thoroughbred Business | 15 Comments »
Wednesday, December 17th, 2008
By Ray Paulick
While the Breeders’ Cup board of directors acted swiftly to reverse last week’s suspension of the $6-million stakes supplement program for 2009, somewhat overlooked in the swirl of controversy was the organization’s loss of $11 million in the stock market this year. Breeders’ Cup president and CEO Greg Avioli said the losses were not as severe as those suffered by endowments and funds related to other industries (i.e., the Harvard and Yale endowments have lost billions), but some Thoroughbred breeders are questioning why so much of the money from foal and stallion nominations and other revenue was tied up in a volatile equities market in the first place.
The losses, first reported by the Paulick Report on Monday, have dropped Breeders’ Cup cash reserves from $40 million to less than $30 million. The board of directors originally had voted unanimously not to use those cash reserves to plug any of the projected $10-million revenue hole in the 2009 budget, a move that led to the brief suspension of the stakes supplements as well as deep cuts in the marketing and television budget.
Avioli said the market losses, which exceeded the size of the budgeted deficit for 2009, were unrelated to the board’s original decision.However, an examination of the Breeders’ Cup 2007 annual report shows $2.7 million of unrealized and realized gains on investments were reported as revenue. Total revenue for the year was $56.5 million against expenses of $56.3 million. Without that $2.7 million capital gains reported as income, it appears the Breeders’ Cup would have had an operating deficit of $2.5 million in 2007. It’s unclear to me what becomes of the reported income, now that potential “paper gains” in the equities market have been wiped out in the tumultuous economic climate of 2008. It will also be interesting to examine the 2008 financials to see whether unrealized or realized gains in stock holdings exist or are reported as revenue.
The 2009 operating budget before last week’s cuts were announced was projected to be down $10 million, from $50 million to $40 million. Critics have complained the company should have first undergone more corporate belt tightening (which it has been doing since 2006, when Avioli replaced D.G. Van Clief Jr. as CEO) before cutting out the stakes supplements and marketing expenses.
The supplements have been part of the Breeders’ Cup program since its inaugural year in 1984, when $10 million was put into championship purses and $10 million into other stakes. That was done to give the Breeders’ Cup broad appeal to potential nominators across the country, and the supplemental money was dispersed at both large and small racetracks.
In his statement about the decision to use cash reserves to reinstate some portion of the stakes supplements in 2009, Breeders’ Cup board chairman said the board is “not in a position to commit to the stakes program beyond 2009.” The Breeders’ Cup board and executive team have discussed elimination of the stakes supplements in recent years, citing research that shows the money has not been a great incentive for breeders to nominate their foals.
Farish also said in his statement that “the Board still believes, as I do personally, that it’s critical to maintain sufficient reserves to allow for the long-term viability of the Breeders’ Cup.” Avioli said the cash reserves are viewed by the board as a catastrophic fund in the event the Breeders’ Cup is canceled because of unforeseen circumstances (equine disease outbreak, fire, earthquake or other disaster) or a multi-year financial crisis. Business interruption insurance would cover a great deal of any potential losses if the event had to be cancelled – in which case the current $25.5 million in championship purses would not have to be distributed.
The odds against holding the event, which can be moved from one venue to another in the event of a crisis, would appear to be slim. The Kentucky Derby has been run continuously since 1875 despite two World Wars and the great flood of 1937 that covered much of Churchill Downs.
IRS Form 990 for the Breeders’ Cup shows $28.3 million in stocks and bonds holdings in 2006 with another $7.8 million in U.S. treasuries and $2.5 million in Breeders’ Cup properties (the 2007 Form 990 is not yet available). Earlier this year, the Paulick Report has been told, members of the Breeders’ Cup board and its Investment Committee were urged by at least two individuals on the larger board of members and trustees not to keep such a high percentage of the organization’s reserves in the equities market. The Investment Committee, chaired by G. Watts Humphrey Jr. (its other members are Farish, Antony Beck, Donald Dizney, Ogden Mills “Dinny” Phipps, Joseph Shields, and Satish Sanan, who recently was appointed), opted to keep a substantial part of the assets in stocks. By year’s end, the assets have fallen sharply.
A number of breeders told the Paulick Report the money should never have been invested in the market because they view the Breeders’ Cup as a pass-through organization. “It’s our money,” one breeder said. “I didn’t pay $500 to nominate my foal so the Breeders’ Cup could buy stock in Coca-Cola. An emergency fund should be kept, but the rest of the money should go into purses.”
Cash reserves were an important part of the program 25 years ago, one founding member of the Breeders’ Cup said, because putting together and keeping a coalition of stallion farms was not an easy task, and there was the threat that if one or two major farms pulled out it could cause the whole concept to collapse. Keeping enough reserves to fund the program for a full year was considered a strategic defense against any boycott.
The coalition has held together, however, despite some bumps in the road along the way. The Breeders’ Cup has expanded from the $10 million championship day of seven races to a two-day event worth $25.5 million. The stakes supplement program has been reduced several times over the years from its original $10-million budget, and it now appears to be in jeopardy beyond 2009.
Farish said in his statement the board is looking at other ways to provide benefits to nominators of the program, though gave no further specifics. One benefit would be to continue to do what the board has done in the last five days: listen to those who support the program through their stallion and foal nominations. Beyond that, the board should provide greater transparency and disclosure about financial matters, committee appointments and board activities. The production of a 2007 annual report, something that had not been done in the early years of the Breeders’ Cup, was a good first step.
The Breeders’ Cup is designed to promote Thoroughbred racing and enhance public awareness of the entire industry. But it should always be remembered that the foundation and single biggest stakeholders remain the breeders who have financially supported the program since it was nothing more than a vision in the creative mind of the late John Gaines.
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Tags: Antony Beck, Bill Farish, Breeders' Cup, breeders' cup annual report, Breeders' Cup board of directors, breeders' cup cash reserves, breeders' cup stakes program, Breeders' Cup World Championships, churchill downs, D.G. Van Clief Jr., Dinny Phipps, donald dizney, G. Watts Humphrey, Greg Avioli, John Gaines, Joseph Shields, kentucky derby, Ogden Mills Phipps, Paulick Report, Ray Paulick, satish sanan Posted in Breeders' Cup, Industry Organizations | 23 Comments »
Monday, December 15th, 2008
By Ray Paulick
Last week’s decision by the Breeders’ Cup board of directors to suspend the program that put $6 million in purse enhancements into stakes races around the country in 2008 has brought an angry outcry from breeders who nominate their foals and stallions to the Breeders’ Cup in part because of the incentive created by that money. Some are saying they feel betrayed by the board and want a refund on their nominations because the decision was announced after the foal nominations deadline. Others are suggesting the move will cause some breeders to stop nominating stallions and foals in the future.
A press release issued late Friday said the stakes program has been suspended for 2009 and other cost-cutting measures have been adopted due to “anticipated losses in nominations revenue because of recent trends in the bloodstock market and decreased revenue related to the worldwide economic downturn.”
Breeders’ Cup president and CEO Greg Avioli told the Paulick Report on Sunday that a $10-million decline in revenues is anticipated: $4 million less in stallion and foal nominations compared with 2008; $3 million less in sponsorship money; and $3 million less in revenue from the two-day world championships, which are scheduled to return to Santa Anita Park in Southern California Nov. 6-7.
Purses for the world championships will remain at their 2008 level of $25.5 million. The board’s vote on the various budget actions at its Dec. 11 meeting was unanimous, Avioli said.
The Breeders’ Cup press release failed to disclose that the non-profit organization has lost approximately $11 million in the stock market this year and that its cash reserves have declined by more than 25%, from $40 million at the beginning of 2008 to less than $30 million today.
Even with those losses, some breeders believe the cash reserves, which many of them view as an “emergency fund” created from their nominations money, should have been used to make up the projected 2009 budget shortfall as an alternative to elimination of the $6 million from the stakes program. Avioli said the board did not want to budget a deficit for 2009 and would not dip into cash reserves to pay operating costs.
“The projections are for us to go from $50 million to $40 million in revenues,” he said. “That’s what the board was faced with, and it was a simple choice for 2009, once they determined we would not operate at a deficit: reduce championship purses or suspend the stakes program.”
To help meet the budget reductions, Avioli said, marketing costs for the “Win and You’re In” Breeders’ Cup Challenge Series have been cut from $6 million to $2 million. “That means no national media this year,” he said, “no inserts in major publications. We eliminated all the mid-year ABC telecasts and we are down to two shows on ESPN in the fall, four and five weeks out from the championships. That saved us $500,000.”
The changes caught many people by surprise, including numerous members of the 48-person Breeders’ Cup board of members and trustees contacted by the Paulick Report. The members and trustees have no specific power other than to elect the 13 members of the Breeders’ Cup board of directors, but some of them feel the smaller operating board should at least consult or poll them on issues as important as the decision to suspend the stakes program.
STAKES PROGRAM A REASON TO NOMINATE
“Nobody called me, nobody said a word to me, and there was no discussion about this,” one member/trustee said. “This stakes program is one of the reasons people nominate. The purse supplements give breeders, especially those outside of Kentucky, an incentive to participate. Without this program, many of them will stop nominating their foals and stallions.”
Another member/trustee who is based outside of Kentucky concurred. “There are a lot of breeders in my state with 40 or 50 foals a year who pick out the 10 best ones and nominate them,” he said, “not because they think they can win one of the big races but because of these smaller Breeders’ Cup stakes around the country. It’s the only reason they nominate.”
Minnesota-based breeder David Miller wrote the Paulick Report, saying: “As a regional breeder who has nominated his foals for the last few years, these supplements were my only chance to realistically recoup the investment. What is my recourse? The money is paid in and after re-reading the nominations terms, it appears the Breeders’ Cup will be making no refunds under any circumstances.”
Avioli disagrees that the stakes program has played a major role in nominations. “We’ve done qualitative and quantitative research and we never got results back that the stakes program was the driving reason people nominated,” he said. “The two reasons that came out in research is the opportunity to have a horse be eligible for the championship days and the perceived increased value at sales for Breeders’ Cup nominated horses. This is not something we took lightly when we removed it, and I can’t tell you it’s not going to be restored in the future.”
Kentucky-based breeder Tom Evans, who operates Trackside Farm, made the following comment about the suspension of the program: “As a breeder who annually contributes funding for the Breeders’ Cup, I would appreciate the financial detail as to why the Breeders’ Cup needs to suspend nearly $6 million in co-funding for 2009 stakes races throughout the country. The catch phrase ‘challenging economic environment’ lacks the detail that supporters of the program deserve. And, since the Breeders’ Cup finds it necessary to suspend funding, what measures have they taken to cut costs in other areas such as corporate overhead and executive compensation?”
Avioli — whose compensation package was $517,965 plus another $248,175 in employee benefits in 2006 (the most recent year the Breeders’ Cup IRS Form 990 is available) – said the organization eliminated five full-time positions in the last year and will cut one additional job by the end of 2008. “Our total (2009) compensation budget is basically flat with 2008,” he said. The Breeders’ Cup 2007 annual report showed $3.6 million spent on personnel costs (2008 figures are not available). It is paying $266,160 in 2008 and 2009 to former CEO D.G. Van Clief Jr. as part of an $890,000 severance package he received when he stepped down in 2006.
WHAT IS THE PURPOSE OF THE CASH RESERVES?
John Sikura, of Hill ‘n’ Dale Farm in Kentucky, a member/trustee who unsuccessfully sought a seat on the operating board earlier this year, has been an outspoken critic of the Breeders’ Cup board’s handling of its cash reserves. Sikura doesn’t understand why the reserves are not being used to cover anticipated shortfalls in 2009 to keep the stakes program intact.
“Those reserves are there for times of emergency,” Sikura said. “This is certainly one of those times. They should have funded the program, at the very least through 2009, because people have made reliances on this stakes program, and to have the rug pulled out from under them is wrong. These programs are not secondary to the racetracks or to the people who own horses.”
Avioli claims the reserves are there to “protect against catastrophic occurrences that would cause cancellation of the championship event” – such as the kind of equine disease outbreak that shut down Australian racing last year or an earthquake or other natural disaster. Business interruption insurance would cover some, but not all, of a catastrophic event, Avioli said.
“Second, like any organization, you have reserves so that you have security that the organization will continue if unforeseen circumstances arise,” he said. “Say this economy stays down for four or five years and nominations don’t come close to former levels. If you don’t have reserves, what are you doing to do? The question is, what’s the level of the reserves that need to be maintained, and that’s a function of the board of directors.”
Some believe the board has built its cash reserve fund as a defense against the possibility of a boycott by stallion farms or syndicates that could grow unhappy with the direction of the Breeders’ Cup and stop nominating.
The cash reserves are overseen by an Investment Committee chaired by G. Watts Humphrey Jr., a board member who for many years served on the Breeders’ Cup Executive Committee with William S. Farish prior to the 2006 changes in governance that brought some semblance of democracy to the organization. Farish’s son, Bill, has served as chairman of the board since 2006.
The other members of the Investment Committee are Antony Beck, Donald Dizney, Ogden Mills “Dinny” Phipps, Joseph Shields, and recent appointee Satish Sanan. As board chairman, Bill Farish is automatically on every Breeders’ Cup committee, Avioli said.
Phipps was voted off the board of directors in 2007 and Shields was voted off the board of members and trustees earlier this year. As chairman, Humphrey is authorized to invite anyone he wants, and he appointed Shields and Phipps to the committee. The cash reserves are entrusted to three or four different financial advisers. Contrary to rumors, Phipps’ Bessemer Trust is not one of the groups handling the Breeders’ Cup cash reserves, according to Avioli.
Critics of the Investment Committee complained that scheduled meetings have been cancelled or postponed this year as the cash reserve fund was battered by market volatility and the global financial crisis that hit in September.”Farish and Humphrey do what they want,” one member/trustee told the Paulick Report.
Another member/trustee said the cash reserves should not be looked upon as an emergency or catastrophic fund if a large percentage of it is invested in the stock market. “That’s a long-term investment strategy,” he said, “so it makes no sense to call it an emergency fund if it’s in equities.”
Avioli defended the board’s handling of the cash reserves, even though the Paulick Report learned that at last week’s board meeting the Investment Committee indicated it was likely going to “get out of the equities.”
“Should the money have ever been invested in the stock market?” Avioli said. “If you say ‘no,’ we wouldn’t have had the $40 million to begin with. If you accept that it was in the market and want to see how it was managed in the last 18 months, I’d say it’s done reasonably well compared with other industries. It’s down from $40 million to $30 million, but given these markets that’s not atrocious.”
“I’ll bet a lot of the members and trustees don’t even know there is an Investment Committee,” one member/trustee said when learning of the $10-million-plus in losses. “It’s all part of the cloak and dagger secrecy that some of the people still engage in, even after we went through this new process of electing the board. People like the guys who run this committee do whatever they want with it. They can make all the bad decisions and they don’t think they have to be held accountable.”
Another commented: “There is an unrecognized aristocracy in the United States, and these guys think they are part of the First Family.”
Sikura is disappointed at the message the Breeders’ Cup board’s decision sends out to the industry. “In times like these, people are looking for some reassurance in the business from some of the industry foundations,” he said. “By taking this action, the Breeders’ Cup board failed to provide that reassurance.”
Do you have an opinion on the Breeders’ Cup board’s decision to not use some of its $30 million in cash reserves to make up a projected budget shortfall and instead eliminate the $6 million in purse supplements to the Breeders’ Cup Stakes Program? Take the Daily Paulick Poll on the left-hand column of the Paulick Report homepage or leave your comments in the space provided below.
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Tags: Antony Beck, Bill Farish, Breeders' Cup, Breeders' Cup board of directors, breeders' cup cash reserves, Breeders' Cup Challenge, breeders' cup compensation, breeders' cup investment committee, Breeders' Cup members and trustees, breeders' cup nominations, breeders' cup stakes program, breeders' cup suspends stakes program, Breeders' Cup World Championships, david miller, Dinny Phipps, donald dizney, G. Watts Humphrey, Greg Avioli, hill 'n' dale, John Sikura, Joseph Shields, Ogden Mills Phipps, Paulick Report, Ray Paulick, santa anita park, satish sanan, tom evans, trackside farm, Will Farish, William S. Farish, win and you're in Posted in Breeders' Cup, Industry Organizations | 22 Comments »
Monday, October 27th, 2008
By Ray Paulick
There are many ways to look at this year’s Breeders’ Cup World Championships from a business and sporting standpoint, and not all examinations are going to lead to the same destination.
The most important question is whether or not the 2008 Breeders’ Cup was a success or failure. Was the decision to hold the Cup at a racetrack with a synthetic surface a wise move? Has the expansion of the world championships from eight races in one day to 14 races in two days helped or diluted the event?
How is success or failure of the Breeders’ Cup measured? Is it attendance, pari-mutuel handle, revenue, TV ratings, racing results, international participation?
It’s difficult to measure some of these factors because the circumstances of the Breeders’ Cup have changed so much between 2008 and previous years, rendering it an apples to oranges comparison. Making those comparisons even more challenging are the current economic conditions that have hit all levels of society this year, from Wall Street bankers to blue-collar workers. Virtually every industry is feeling a severe impact.
Putting that aside, last year’s Breeders’ Cup at Monmouth Park was the first time the event was stretched over two days, and handle totaled just over $147 million ($31.5 on the Friday program and $115.7 on Saturday) despite poor weather and messy track conditions (a near monsoon came through New Jersey during Friday’s program and the track was very sloppy on Saturday). This year’s two-day handle increased by only 5.5%, to $155.5 million ($47.9 million on Friday, $107.6 million on Saturday), despite perfect weather and the addition of three new Breeders’ Cup races. Comparisons are for the whole cards, including non-Breeders’ Cup races run at Monmouth Park last year and Santa Anita this year.
Steve Crist’s weekend blog at DRF.com (Friday, Saturday), which detailed the race-by-race betting figures for the last three years of the Breeders’ Cup, shows that handle dropped sharply on the races moved from the Saturday card in 2007 to Friday (Filly & Mare Turf, Juvenile Fillies, Ladies’ Classic) this year. That makes perfect sense, since there were fewer people betting Friday’s program this year than there were betting Saturday’s program last year. But there were five Breeders’ Cup races on Friday this year, when the all of the filly and mare races were packaged as "Filly Friday" or "Ladies Day," compared with three in 2007, leading to the increase in Friday-to-Friday comparisons.
Handle dropped virtually across the board on Saturday’s races this year, with the day’s total handle declining by 7%, from $115.7 million in 2007 to $107.6 million in 2008. It was the lowest handle on a Saturday Breeders’ Cup since 1999, when $100.3 million was bet on the races from Gulfstream Park.
Santa Anita’s on-track handle of $11.8 million was down almost 10% from the $12.7 million wagered on-track at Monmouth Park in 2007 and a steep decline of 33% from the 2006 Saturday Breeders’ Cup at Churchill Downs, when $18.3 million was bet on-track during the one-day event.
Saturday’s on-track business was the lowest for a Breeders’ Cup since 1997, when $11.2 million was wagered at Hollywood Park. The last time the Breeders’ Cup was held at Santa Anita, in 2003, one-day on-track handle totaled $16.3 million. This year’s two-day on-track handle was $18.7 million.
The economic climate has not been good for racing in 2008. Most major race meetings have experienced double-digit declines in business. For the Breeders’ Cup to increase handle from 2007 is an accomplishment, though not a major one when considering both the additional races and superior weather conditions.
It is difficult to say there has not been a dilution of the event based on the early evidence. Do the positive benefits outweigh any negatives? I think it’s too early to tell.
Attendance was up this year from 2007, but that should have been a no-brainer following the poor weather at Monmouth Park. Breeders’ Cup officials got greedy with ticket prices and, to their credit, have admitted as much. The increase in prices was outrageous, especially for the Friday program, and it is hoped they will be scaled back considerably next year.
TV ratings have not yet been reported, but it’s hard to imagine they will be up from 2007.
The racing was spectacular on both days – and safe. More than a few people commented at the conclusion of the Breeders’ Cup that no one died or suffered any serious injuries, a sad commentary on the bumpy road the sport has been traveling in recent years. The Pro-Ride synthetic track was fast and safe, though it appeared to compromise some horses who had only raced on conventional dirt tracks and help those horses with synthetic track or turf experience.
Synthetic surfaces have increased the difficulty of handicapping, and running the traditional Breeders’ Cup dirt races on the Pro-Ride track may have led some big players to downsize their bets. The Classic, according to Crist’s figures, handled $24.3 million in bets this year, down from $30.1 million at Monmouth Park last year and $37.7 million at Churchill Downs in 2006.
The dominance of European horses was widely embraced by Breeders’ Cup officials, including president Greg Avioli, who sees international participation as the last, best hope for further growth in pari-mutuel handle. The success of Raven’s Pass and four other European-based winners on Saturday’s program will ensure enthusiastic participation from European horsemen when the races return to Santa Anita in 2009, but there is no guarantee that’s going to mean greater interest among horseplayers outside of North America. There is a conceivable backlash among American breeders who provide the financial foundation of the Breeders’ Cup program through foal and stallion nominations. Some of them view this as an American event, and they would be happier if the considerable purse money stayed in this country. On the other hand, those breeders who want to reach an international audience with their sale yearlings may cheer the success of European-based runners.
The Breeders’ Cup will conduct a post-mortem on the event to determine what worked and what didn’t. Many have said the Oak Tree Racing Association and Santa Anita did a terrific job from a logistical standpoint, and there may not be a more telegenic racing facility in America in late October than the "Great Race Place." There were many people critical of the decision to hold the event at Santa Anita in consecutive years, but those critics surely are fewer in number following this year’s Breeders’ Cup
Provided that no major changes are made in the format, holding the Breeders’ Cup at Santa Anita next year will be more of an apples to apples comparison, allowing Cup officials to assess whether or not the expansion from one day to two was a sound decision.
Tags: Breeders' Cup, breeders' cup results, Breeders' Cup World Championships, business of racing, Greg Avioli, Horse Racing, monmouth park, oak tree racing association, pari-mutuel handle, pari-mutuel wagering, Paulick Report, Ray Paulick, santa anita Posted in Breeders' Cup, Horse Racing, International Racing, Synthetic surfaces, Wagering | 12 Comments »
Saturday, October 25th, 2008
Ray Paulick will be live blogging Saturday’s Breeders’ Cup World Championships, which begin at 1:10 p.m. Eastern with the first ever running of the 1 1/2-mile Marathon.
Please note that there is a late scratch in that race: Add Heat was withdrawn from the Marathon Saturday morning because of a suspensory injury to his right front leg. There is also a scratch in the seventh race, the Sprint. Ancient Title winner Cost of Freedom was scratched from the race following a veterinary inspection Saturday morning.
Ray’s live blogging will begin shortly before the first race.
12:50 p.m. … Looking back on yesterday, I’m a bit concerned about my Saturday Breeders’ Cup selections and predictions that it’s going to be a big day for the Europeans. None of yesterday’s five winners came from Europe, although Coolmore/Aidan O’Brien runner Heart Shaped had some people convinced (Jerry Bailey) that she won the Juvenile Fillies Turf. Could the warm weather be a bigger factor than some of us anticipated?
12:55 p.m. … People are still buzzing about the ignorant comment made by trainer Rick Dutrow in a feature on female trainers that was shown during the ESPN2 telecast on Friday. The feature focused on Helen Pitts and Carla Gaines and on the challenges they have faced and the sacrifices they’ve had to make. It began with a quote by D. Wayne Lukas about the 1970s and how he wouldn’t hire women because "I always felt someone would fall in love with them and that would cause problems in the shedrow." Gaines, a social worker in Alabama before she began training horses, said she sacrificed having "children, marriage, things of that nature. I always wanted a career. I never thought I was the kind of person who could stay home, raise children and clean house. It’s just not me."
Then they switched to Dutrow, he with the foot in mouth disease. "I liked watching Bobby Frankel, Charlie Whittingham," Dutrow said. "I’ve tried to be around those guys to learn what they do. I wasn’t gonna walk in the barn and try and pick up things on what a woman trainer does. It’s just got no interest to me at all."
Gaines responded: "It’s his opinion. Everybody watched Charlie Whittingham and Bobby Frankel. He says what he thinks. That’s OK. He just better never be in a race with me. I might have to beat him."
Todd Pletcher provided his observation: "I don’t think there’s anything that indicates that you have to be a man or a woman to train horses effectively. Either one is perfectly capable." Lukas capped off the piece by saying that it’s all about winning. If you win, you’ll get more and better horses.
1:00 p.m. … ABC is on the air, with their 2 1/2 hours of coverage. It switches to ESPN at 3:30 p.m., which continues to baffle some people. It’s really not that hard to switch channnels. It happens in golf and other sports quite frequently. Good intro on the Breeders’ Cup narrated by the incomparable Bill Nack, the former senior writer for Sports Illustrated who is serving as essayist on the Breeders’ Cup telecasts.
1:05 p.m. … "This is our grand stage for horse racing," says Jerry Bailey. "A great performance here cements your reputation for an entire career. This is the kind of day that I live for, baby." Moss points out that the Europeans were shut out but says "they’ve got a lot of bullets." Moss also gives a "hip, hip, hooray" to the fact that this is the first steroids-free Breeders’ Cup.
1:06 p.m. … A run-through of the six reporters working the telecast was mostly forgettable except for Caton Bredar, who will be reporting via horseback on the Pro-Ride surface, which heats up from the sun. "I’ll have the hottest seat in the house," she proclaims. Caton, I’ll leave that up to chauvinist pig Rick Dutrow to decide.
1:10 p.m. … Come on! We’re only 10 minutes into the broadcast and they’re already recycling some of the features from yesterday’s ESPN2 show? They’re doing that dollar comparison between the Breeders’ Cup and other major sporting events. But they’re loading into the gate now for the Marathon.
1:15 p.m. … 49-1 longshot Booyah takes the early lead, and the field is strung out as if in a harness race. Midway down the backstretch, Zappa takes over, but it’s a short lived lead. Muhannak has clear sailing on the outside and moves to the front, while the heavy favorite Sixties Icon has to check while awaiting room before straightening away into the stretch. Trained by Ralph (pronounced Rayfe) Beckett and ridden by Patrick Smullen, Muhannak breaks through for the Europeans, holding off a fast-closing Church Service to win it. Big Booster is third, with Delightful Kiss fourth. Sixties Icon and Zappa both came up empty in the stretch. Muhannak, a 4-year-old gelding by Chester House bred in Ireland by Mount Coote Stud, races for Richard Pegum. Though this was his U.S. debut, Muhannak has plenty of synthetic track experience in England and is a perfect 3-for-3 since joining trainer Beckett’s barn.
Marathon prices: $26.80 on a $2 win bet, and the $1 exotics paid: $133.10 for the exacta, $987.10 for the trifecta, and $3,955 for the superfecta. Time for the 1 1/2 miles on the Pro-Ride track was 2:28.24. Chart.
1:25 p.m. … The Turf Sprint is the race where I absolutely love the filly, Only Answer, from Andre Fabre’s stable. She is not getting any early action and is 18-1 on the board. The one horse getting bet below its morning line is course specialist California Flag, down from 15-1 morning line to 8-1.
1:45 p.m. … Aaron Gryder’s jockey introductions are actually pretty clever. Loved the comment about Kendrick Carmouche, the son of the famous "fog jockey," Sylvester Carmouche, who hid in a fog bank at a Louisiana bull ring track and came rushing out of the fog with a huge lead when the field turned for home. He got caught. "He won’t be able to play that same trick his dad did," Gryder said. "This is sunny California, and he can’t hide in the fog."
1:50 p.m. … I’ve decided to wheel and backwheel Only Answer in the exactas and box her with Fleeting Spirit, Diabolical and California Flag in the trifecta. I’m not usually a gimmick player, but I smell a big payoff for someone here.
1:53 p.m. … Mr. Nightlinger sets the face pace with betdown California Flag pushing him, but the speed doesn’t last in here. Richard Migliore gets the last run with the longest shot on the board, Desert Code at 36-1, who runs down Diabolical in the final yards to win it. Storm Treasure is third and Fleeting Spirit fourth. Desert Code won on this course during the winter meeting, taking the ungraded Joe Hernandez Stakes but most recently finished seventh in the Morvich Handicap in a race he needed. "I tried to anticipate being a little bit closer (to the pace)," Migliore tells Jerry Bailey after the race. Desert Code ’s near the back of the back entering the stretch, but Migliore saved ground crossing the Pro-Ride surface before finding a seam on the outside at about the eighth pole. It’s a very popular win for horsemen and racing fans in New York, who have always appreciated Migliore’s class as much as his riding skills. Underrated conditioner Dave Hofmans trains the 4-year-old son of E Dubai for the Tarabilla Farms. "The horse was training super, and he loves this downhill course," Hofmans said.
I was right about one thing: big payoffs. Desert Code paid $75 to win; the $1 exacta paid $393.10, the tri was $6,184.50 and the superfecta was $29,663.30. My selection, Only Answer was mired near the back of the pack after breaking well and was never a factor. Chart.
2:10 p.m. … Sometimes it’s hard to tell if it’s a bet down or a bad morning line. Pyro was 20-1 on the morning line and is now at 7-1. Probably a little of both. Well Armed is the heavy favorite in the Dirt Mile, getting bet down from his 3-1 morning line to 6-5.
2:15 p.m. … Kenny Mayne repeats an interesting comment from Aaron Gryder, the rider of Well Armed, whose comeback from a near-death experience was prominently played up in the telecast, with all the credit going to owner Bill Casner. "My horse has a better chance of winning today than Curlin has in the Classic," Gryder is said to have told the ESPN crew. At 6-5 odds, you have to wonder how many other people Gryder told. After two longshot winners, you might expect to see a return to predictability here. Well Armed is my pick, but I think Surf Cat is capable of pulling off an upset, and he’s a big overlay, at 13-1. Mast Track is another huge price, 18-1, up from 6-1 on the morning line, but that’s probably due to the cloud over his physical condition. Trainer and owner Bobby Frankel said he was very unlikely to run earlier in the week because of a quarter crack. He wouldn’t run him if he wasn’t sound, in my opinion, so that makes Mast Track an interesting possibility here, too. I can’t take 6-5 on Well Armed.
2:30 p.m. … ABC’s "historical milestones" feature is a good one, taking us back to 1984 and through the years of the Breeders’ Cup World Championships. The musical accompaniment was fun, including references to the artist formerly known as Prince. Did I just hear crusty ol’ Bruce Headley say he loves Prince’s "When Doves Cry"?
Oh, for the love of God … more interviews with Michael Iavarone. Now he’s telling Kenny Mayne about the death threat he received before the Belmont from someone in Tallahassee, Fla. Is that why he has that big bodyguard following him around? ESPN tried to contact the deputy that worked the case and they couldn’t get ahold of him? Is that Kenny Mayne’s way of saying he doesn’t believe Iavarone’s story?
2:35 p.m. … More boxcar prices. Albertus Maximus, getting a dream ride from Garrett Gomez, collars pacesetter Two Step Salsa to win the Dirt Mile over Rebellion, with Two Step Salsa hanging on for third and My Pal Charlie fourth. Well Armed never looked comfortable and was not a factor. Gryder had some trouble with Well Armed on the first turn, but it wasn’t enough to take him out of contention. He wound up ninth. Mast Track was fifth and Surf Cat 12th. They covered the mile on the fast Pro-Ride track in 1:33.41.
The winner is a 4-year-old son of Albert the Great bred and owned by Brandon and Marianne Chase and trained by Vladimir Cerin. He’s been placed in some big races (third in the Goodwood, second in the 2007 Swaps Stakes), but this is his first graded stakes victory. Albertus Maximus had been trained by Gary Mandella until the owners moved him to Cerin’s barn prior to a Sept. 1 ungraded stakes victory at Del Mar. "I just felt the horse was going backwards and we all knew the horse had talent," Marianne Chase said in the winner’s circle. "We all believed in this horse, and finally the moment of truth came, we turned him over to Vladimir and he’s done just absolute miracles."
Mutuels: Albertus Maximus paid $14.60 to win, the exacta was $109.30; trifecta $1,636; and superfecta $19,804.30. Somebody’s making money! Chart.
2:55 p.m. … Another Joe Torre interview. He and Michael Iavarone are going head and head for the most over-exposed people on the two days of racing telecasts. (He also did a trophy presentation, something Iavarone hasn’t done yet.) But maybe Iavarone will be able to win the Mile trophy again this year with Kip Deville.
3:05 p.m. … Time for chalk? Goldikova is the solid betting favorite here and a favorite is due to win after four longshots. She looks splendid on the track. Lots of chuckles on the set when Randy Moss repeats the tiresome line from Rick Dutrow about defending champ Kip Deville. Dutrow’s biggest concern is wondering how much to bet. Nick Luck, the guy with the accent and the great racetrack name, says something very intelligent about the Mile, though I’m not sure what it was exactly. But he sounded so smooooth saying it. Geek alert. Best place for geeks at Santa Anita is directly behind Kenny Mayne and Hank Goldberg. Get on the cell phone and call someone who cares to say that you’re on TV. Hank’s going for the 4-11 exacta, Goldikova and Whatsthescript. Sorry, Hank, can’t see the 11 hole getting up for second on this course. I like Goldikova and Shakis from the rail for second.
3:15 p.m. … Jeannine Edwards with Rick Dutrow, who takes us on a romantic journey down memory lane,.. "I’ve been up and down. We’re pretty used to this sort of thing," he nonchalants. I can almost here Sinatra…."That’s life, that’s what people say, riding high in April, shot down in May."
3:18 p.m. … As they load, Trevor Denman points out how light a filly Goldikova is.Well, all I can say is, "Rick, I hope you bet to place." Goldikova was everything promised, and more. It was a simply brilliant performance and a flawless ride by Olivier Peslier, putting the daughter of Anabaa in a good spot just behind the pacesetting Thorn Song, and then driving through a narrow opening in midstretch with incredible acceleration. Freddie Head was a great jockey and he is proving to be just as good a trainer — the first to both ride and train a Breeders’ Cup winner (he handled two-time Mile winner Miesque). Of course, he has the pedigree. Kip Deville ran his race, but was only second best. Whatsthescript made a good late run to get third, with Precious Kitten fourth. This was a "wow" performance, the kind that wlil linger in the mind for years to come. "I think she’s as good as her," Head said in comparing Goldikova to Miesque. "She’s definitely in the same league."
Mutuels: $5.60 was the win price on Goldikova, with $13.60 on the exacta, $47.60 on the trifecta and $302.20 on the superfecta. Chart.
3:29 p.m. … OK, everyone, grab the remote control and switch over to ESPN from ABC.
3:30 p.m. … Yesterday I indicated that Forever Together likely cinched an Eclipse Award as filly and mare turf champion. Now I’m not sure so. It was just one performance, but Goldikova is the best distaffer to race on North American turf this year, in my opinion, and deserves consideration as a North American champion. Her European races don’t count, but what a career she’s had, winning six of nine starts and never finishing worse than third.
3:35 p.m. … On to the Juvenile, where Munnings is being ignored by the bettors. He’s at 9-1 off a 7-2 morning line. The horse with some action is Square Eddie, the recent acquisition by Paul Reddam who won the Breeders’ Futurity in his only U.S. start. At 9-2 on the morning line, he’s currently the 5-2 choice. Jay Privman reports that trainer Todd Pletcher is scratching his head over what tactics to have jockey John Velazquez employ on Munnings. He may be the only speed in the race, but speed has not been holding on very well on the Pro-Ride track. I look for a slow pace in this one, but I can’t see Munnings being very far from the front early.
3:53 p.m. … This tidbit from a Privman interview with Paul Reddam. Square Eddie’s trainer, Doug O’Neill, is home with the chicken pox.
3:59 p.m. … Square Eddie and Midshipman duel for the early lead in the Juvenile, the opening quarter in :23.55 and half in :47.08. Munnings took back, and Midshipman never looked back. Garrett Gomez gets another win and Bob Baffert possibly has another Kentucky Derby contender and his sixth Breeders’ Cup winner. This is the colt that was bred and owned by Bob and Janice McNair’s Stonerside Stable until they sold their operation — farm and horses — to Sheikh Mohammed. Midshipman was part of the package. "I’ve always wanted to train for Sheikh Mo," Baffert said at the time. It remains to be seen whether or not the horse stays with Baffert, however, as the Sheikh has been known to bring his American 2-year-olds to Dubai. Square Eddie was second best, just ahead of Street Hero in third and Terrain in fourth. Munnings got a good trip from there but flattened out after rallying wide into the stretch and finished 10th. Coolmore’s Bushranger, in from Europe, was 11th. Ooops. The camera trained in on Baffert and wife Jill celebrating as Midshipman crossed the wire in front, but Randy Moss said "that’s actually not Jill." Actually, Randy, it was. "It’s good to win one for Darley," Baffert said, "but to the McNairs, great job."
Mutuels: Midshipman paid $9.20 to win; exacta $19.70, trifecta $72.20, and trifecta $736.70. This race shows that you can win on the lead if the fractions are realistic. Chart.
4:10 p.m. … John Ferguson accepts the trophy for the ruler of Dubai and defers to the missing sheikh when asked about Midshipman’s future. "Obviously that’s up to Sheikh Mohammed," he said, as Baffert listens intently over Ferguson’s shoulder. Might we see this horse in Dubai? Ferguson is asked. "Possibly." I couldn’t make out what Baffert said under his breath, after that response.
4:20 p.m. … The saddest part of the awful ESPN feature using "song girls" from the University of Southern California to cheer during a race was the fact the Santa Anita grandstand was completely empty when they were filmed. I have to remind myself that you can’t fill all six hours of a telecast with horse and races.
4:40 p.m. … You can’t keep Frankie Dettori down forever. He rode the hair off of Donativum to beat fellow European Westphalia in the Juvenile Turf,. Coronet of a Band finished third, with City Style fourth. Donativum, racing for Princess Haya of Jordan (married to Sheikh Mohammed), is a gelding by Cadeaux Genereux trained by John Gosden, who spent some time training in California in the ’80s and won the inaugural Breeders’ Cup Mile with the mare Royal Heroine at Hollywood Park in 1984. Tough loss for Westphalia and the Coolmore team. "It’s great to come back to Santa Anita and win a Breeders’ Cup race," Gosden said. "It’s progressed well," Gosden said of the Breeders’ Cup since its inception in 1984, "and I think the development of the two days and the work that the Breeders’ Cup committees have done in creating what they have here at Santa Anita, for the two days of racing, the fillies yesterday were out of this world. It is just superb racing at the highest quality. To me it is the Northern Hemisphere championships. There is no other word for it."
Mutuels: $13.60 to win, with the exacta paying $23.60, the trifecta $152.90 and the superfecta $3,024.10. Chart.
Dettori’s flying dismount would have been panned by Olympic gymnastic judges. He didn’t exactly stick the landing.
4:55 p.m. … Good use of the telestrator by Bailey, who points out how jockeys Johnny Murtagh and Dettori both went for the same narrow opening in midstretch. Murtagh got the first jump, but Dettori had the best horse.
5:15 p.m. … The Sprint field is ready to go. Midnight Lute is the big question mark here. So is Fatal Bullet, who was just overpowering in his last start at Turfway Park and is a synthetic track freak. But he’s not been facing this kind of competition.
5:20 p.m. …. So much for those questions. Both Midnight Lute and Fatal Bullet ran big, but the Baffert-trained Midnight Lute was just too good, overpowering Fatal Bullet in the final sixteenth to win going away, just as he did a year ago at Monmouth Park. This may be the best training job in Bob Baffert’s career. Midnight Lute has had just one race since last November, and that was a terrible effort in the Pat O’Brien Handicap at Del Mar in August. The horse had a hock injury and a quarter crack that Baffert had to fight and show patience, something that has never been his strong suit. Fatal Bullet ran big on the lead and was second best, with Street Boss and In Summation rallying for third and fourth, respectively. The six furlongs was run in a blazing 1:07.08.
This was Garrett Gomez’s fourth Breeders’ Cup win in two days and the second today for Baffert."I’ve never had a horse like this. He’s just incredible," Baffert said. "He’s one of the best horses I’ve ever trained in my life. I’ve been bragging on this horse forever, but he showed today he is a great horse." The son of Real Quiet (who race for Midnight Lute’s co-owner Mike Pegram) has now now six of 13 starts over four years. At one time he was a Derby hopeful after breaking his maiden so impressively as a 2-year-old at Del Mar, but throat problems compromised him. Subsequent throat surgeries have helped.
Mutuels: Midnight Lute paid $7.40 to win; exacta was $23.80; trifecta $62.50; and superfecta $242.30. Chart.
5:40 p.m. … Nick Luck, the guy with the accent who specializes in European horses, uses a hunk of the Santa Anita turf to show why the track drains so well and is firm. It also might have something to do with the fact that it doesn’t rain in California for six months at a time, Nick. Anyways, Bailey, who mows his own lawn, said the big difference between turf courses in the East and in California is the length of the grass. They keep it much shorter out here, Bailey says, but that’s so golfer Gary Player can go out and work on his game while he’s visiting Santa Anita,.
5:42 p.m. … .ESPN feature on Mike Smith is a good one. Nobody doesn’t like Mikey, and it’s great to see him getting the good horses again. He works hard at his profession, and is a gentleman as well. Bailey says Smith is not only the fittest jockey in America, but one of the fittest athletes in the country. "He’s amazingly fit," Bailey says.
5:55 p.m. … At long last, John McCririck is on the air. He makes Hank Goldberg look small. McCririck thinks Soldier of Fortune is terribly underpriced in the Turf and Eagle Mountain is good value. Dare I say I agree with him? John is a cariacature, but he genuinely knows and loves the game. I’ve had the good pleasure of spending quality time with him over the years at many races and find him to be as knowledgable as they come on international racing.
6:08 p.m. … Michael Stoute had the truest "stayer" in the Turf, and he came flying down the stretch to snatch victory away from Eagle Mountain, who looked a certain winner as the field hit the top of the stretch. A 3-year-old coming off a three-length victory in the 1 3/4-mile St. Leger Stakes at Doncaster, Conduit was ridden perfectly by Ryan Moore. it was Conduit’s fifth win in nine starts. Eagle Mountain sat just off the early pace in perfect position under Kevin Shea, overtook favorite Soldier of Fortune in midstretch, but was no match for the winner. Dancing Forever closed to get third from Soldier of Fortune. "He’s raced on firm turf," Stoute told Jeannine Edwards when asked about what gave him confidence that Conduit could handle the firm going. "He’s a very clean and good-actioned horse. We had no qualms about the ground."
Mutuels: $13.60 to win; exacta paid $53.60, the trifecta $1,406.70 and the superfecta $5,622. Chart.
6:25 p.m. … For the first time all weekend, I’m nervous, with some butterflies swirling around in my stomach. I usually only get this way for the Kentucky Derby or when a horse is going for the Triple Crown at Belmont Park. That’s what sets the Classic apart from all the other races in the Breeders’ Cup, at least in my mind and in my gut. I can’t imagine how the owners of these horses must feel.
6:30 p.m. … Of the numerous features shown on this weekend or on any racing telecast for that matter, none has ever put a lump in my throat like the story done on Classic contender Colonel John and Karri Casner, the daughter of WinStar Farm co-owners Bill and Susan Casner who was killed in the terrorist bombings in Bali. It was tough to watch, but beautifully done and certainly put things in perspective.
6:40 p.m. … "It’s not really about the money, it’s about the competion," Jess Jackson tells Jeannine Edwards. He hasn’t been listening to Joe Tessitore, who must get $100 bucks every time he reminds viewers that this is richest event in all of sports. Randy Moss disses Steve Asmussen for not allowing ESPN to bring a camera inside the barn for 30 seconds. "Don’t you know who we are, pal? We’re the worldwide leader in sports!"
6:50 p.m. … ESPN reports there are 55,000 people at Santa Anita, including California Gov. Arnold Schwarzenegger, who is shown giving Bo Derek a kiss on the cheek near the winner’s circle. The horses for the Classic are loading.
6:53 p.m. … Raven’s Pass wins the 25th Breeders’ Cup Classic by 1 3/4 lengths over Henrythenavigator, making this the first one-two European sweep ever in the race. Tiago gets up for third, and a gallant Curlin is fourth, after making a huge move on the turn and going to the lead at the top of the stretch. What a stretch run! Finally, one of my selections to beat the favorite pays off, and it was, as I suggested in my preview, a big day for the Euros. European-based horses won five of the nine races.
Complete order of finish: Raven’s Pass, Henrythenavigator, Tiago, Curlin, Go Between, Colonel John, Smooth Air, Champs Elysees, Duke of Marmalade, Fairbanks, Student Council, and Casino Drive. Time was a very snappy 1:59.27.
It was the second win on the day for Gosden and Dettori, two of the best in the world at what they do. Casino Drive set the early fractions of :23.77 and :47.60, with prompting from Fairbanks, but neither was around when the real running began at the top of the stretch. "I was always in a spot where he needed to be I thought," said Robbie Albarado of Curlin. "I was content where I was. I had to go a little bit wider than I wanted to, but that’s Curlin. That’s his patented run." Albarado didn’t want to blame the synthetic surface for the defeat. Steve Asmussen spoke off camera to Jeannine Edwards, saying, "It was a turf race, it wasn’t a dirt race. Horses can train well over the synthetic surface. It doesn’t mean they will run well over it. When he came by the first time and I saw that he was off the bridle, I got worried." Edwards said the Santa Anita crowd gave Curlin a standing ovation when he came back to be unsaddled. Bravo!
7:05 p.m. … Gosden, who spent 11 years training in the United States, tells Edwards: "He’s improved a lot through the year. He’s trained beautifully and he’s mentally relaxed more than ever. I felt the distance wouldn’t be a problem. His sire (Elusive Quality) was a very good miler, but Charlie Whittingham trained Lord At War, the broodmare sire. He won the Santa Anita Handicap at a mile and a quarter."
7:10 p.m. … Princess Haya, Sheikh Mohammed’s wife, had a better day than her husband, as the owner of Raven’s Pass, beating him 2-to-1. Raven’s Pass was bred by Robert and Janice McNair’s Stonerside Stable, which sold the colt earlier this year when Bob McNair opted to get out of racing and concentrate on his NFL football team, the Houston Texans.
Mutuels: Raven’s Pass paid $29 to win, with the exactga paying $150.50, the trifecta $2,395, the superfecta $10,236. Chart.
7:15 p.m. … Dettori’s enthusiasm is such a great asset for the game. He hasn’t always been the most pleasant fellow I’ve run across, but we all have our good and bad days. His love of the game comes through so well at moments like these, however, such as when he gives Bo Derek a big kiss and almost puts his lips on the camera lens He is a showman, one of the best in our business.
7:20 p.m. … In the trophy presentation in the winner’s circle, John Ferguson ignores Gov. Schwarzenegger’s demand to have Raven’s Pass return next year ("I’ll be back!") and defend his title. Sorry, Arnie, but Sheikh Mohammed’s got a little more juice than you do, and he doesn’t have to listen to you.
7:25 p.m. … It takes a jockey to finally thank the Breeders’ Cup corporate sponsors. After the parade of owners receiving Breeders’ Cup trophies all ignored the various race sponsors, Garrett Gomez thanked "all the sponsors" when he received his Bill Shoemaker Award as the outstanding jockey for the third time in the last four years. It’s pretty standard operating procedure in other sports to have the participants thank the sponsors, but racing people are different.
7:30 p.m. … "The great thing about synthetic surfaces….they keep horses safer, and we saw that today," Randy Moss says at the end of the telecast after a brief discussion about how running the main track races on the Pro-Ride is going to be debated. "I wouldn’t hang my head if I was Curlin," Bailey said, who added that Zenyatta gets the edge from him over Curlin for Horse of the Year. Moss concurs, giving the nod to Zenyatta for her perfect record.
7:40 p.m. … Final thoughts.Santa Anita made for a spectacular setting on television, and the racing was equally good. In the last two days, we have seen some tremendous performances, especially by three fillies who stood out: Stardom Bound and Zenyatta on Friday and Goldikova on Saturday. The male horses that made the biggest impression in my mind today were Midnight Lute and Raven’s Pass. But the warrior who made this day so big going in was one who finished off the board: Curlin. He deserved the standing ovation from the Santa Anita patrons for the year he provided to us all in 2008, from Dubai to Kentucky to New York to California. In 16 lifetime starts, this was the first time that Curlin failed to finish in the top three. He’s the best we’ve seen in some time.
The synthetic track will get credit for being a great equalizer for the Europeans, but let’s not forget that this was the first Breeders’ Cup where the American horses were not aided by anabolic steroids. That’s an even bigger equalizer, and perhaps the most significant change in all of the many changes that Breeders’ Cup officials have made in the last 12 months. It was long overdue, but a welcome change nonetheless.
Copyright © 2008, The Paulick Report
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Friday, October 24th, 2008
Ray Paulick will be live blogging Friday afternoon’s Breeders’ Cup World Championships card from Santa Anita beginning around 3:15 p.m. Eastern. To get the latest news on the "Filly Friday" program, including bettings odds and results, along with Ray’s observations and analysis of the ESPN2 telecast (and a scorecard on his own selections), check back frequently throughout the day.
3:15 p.m. … The first "wise guys" horse of the day is Ventura, the Robert Frankel-trained filly who was 5-1 on the morning line but has been bet down to 2-1 in the Filly and Mare Sprint on the synthetic Pro-Ride track. She is the co-favorite with the morning line choice Indian Blessing. Zaftig is another early bet-down, currently at 9-2 from her 8-1 morning line for trainer Jimmy Jerkens. Ventura comes off a strong runner-up effort in the Woodbine Mile on turf. The daughter of Chester House has three synthetic track races, with two wins, one in England and one at Keeneland this spring in an allowance race that served as her U.S. debut.
3:20 p.m. … While we wait for the action to begin, there’s some good news about one of tomorrow’s contenders in the Breeders’ Cup Classic. WinStar Farm’s Colonel John, the winner of the Santa Anita Derby and Travers Stakes, will race as a 4-year-old next year, according to WinStar’s co-owners Bill and Susan Casner. That news came from the notes team collecting information daily on each Breeders’ Cup starter. Click here to read about Colonel John and all the other Classic entrants in Friday morning’s notes. Click here to read today’s "flash notes," a quick daily activity report on every horse entered in the Cup.
3:26 p.m. … Post parade for the Filly and Mare Sprint has begun. ESPN2 telecast doesn’t begin for a few more minutes, so there won’t be much time to set up what the Breeders’ Cup World Championships is all about. "We’re on the air, and let’s go to Trevor Denman for the call of the first race."
3:30 p.m. … ESPN2 is on the air, trying to set things up as best they can. in the few minutes before the first Breeders’ Cup race. There’s a quick money comparison between the Breeders’ Cup purses and other championship events, from the Daytona 500 to Wimbledon. And there are people at Santa Anita! There is a buzz in the crowd. Oh, happy day.
3:35 p.m. … The very capable Joe Tessitore is hosting the telecast, with assistance from Randy Moss and Jerry Bailey. Reporters include Jeannine Edwards, Jay Privman and Caton Bredar. No sign of Hank Goldberg and his piggy bank yet.
3:38 p.m. … What kind of camera angle is that? Where are they….what a great time to use obscure camera angles, at the most important races of the year. "Why is this so hard to follow?" someone said as we tried to figure these bizarre camera angles.
3:40 p.m. … The wise guys were right. Ventura romped, beating Indian Blessing by daylight, with Zaftig third. My pick in the race, Dearest Trickski, set the face pace and then folded like the $10,000 claimer she used to be. Trainer Bobby Frankel’s got that cheshire cat grin working in the post-race interview. Owner and breeder Khalid Abdullah makes a rare appearance in the winner’s circle with one of his horses, even though he’s been one of the most successful owners of Breeders’ Cup horses. He rarely travels to the U.S. for the races. Ventura pays $7.60 to win and the $1 exacta with Indian Blessing pays $12.70. $1 trifecta is $48.70 and the $1 superfecta with Miraculous Miss pays $733.30. Final time is a scorching 1:19.90. Chart.
3:45 p.m. … Tessitore hands it over to someone with an English accent and a made-up name of Nick Luck. I assume that’s just his racetrack name. Nick is the foreign horse expert. Where’s John McCririck? Oops…first bad technical flub. Tessitore is talking about something and some loud music crashes over him.
3:50 p.m. … Privman grabs Dodgers manager Joe Torre for a quick post-race interview. Turns out he and Bobby Frankel are best buddies.
3:53 p.m. … Hank and his bank make their first appearance. "I’m a little bit educated," Hank insists. Kenny Mayne says Hank would bet on giraffes if he had to, introducing a cute feature about Hank, playing himself and a mutuel clerk. This is a nightmare,…two Hank Goldbergs on one telecast?
4:00 p.m. … The wise guys are out again, this time slamming the odds on the horse I picked in the Juvenile Fillies Turf, Consequence. She was 8-1 on the morning and is now 5-2. Former Sports Illustrated senior writer Bill Nack is introduced as the essayist on the weekend telecasts. Good move by ESPN2. Not since the days of the great Jack Whitaker on ABC have racing telecasts enjoyed someone who could comment with intelligence and eloquence. Nack wrote and did voiceovers on the 25 greatest Breeders’ Cup moments that will be sprinkled throughout the telecasts today and tomorrow.
4:08 p.m. … Props on the anchor desk. Tessitore, Moss and Bailey show off a sample of turf from the Santa Anita grass course and the Rose Bowl football field. The point was lost on me. Next up is a Bailey interview with South African horse breeder and golfing great Gary Player (who plugs Sentient jets, a race sponsor). Gary then tees up a golf ball on the grass course and aims it at one of the windows in Frank Stronach’s office. Fore!
4:15 p.m. … Overhead shot of Santa Anita shows dozens of people in the track infield. The infield parking lot looks to be about one-third full. They’re loading into the gate for the Juvenile Fillies Turf. Another horrible directing job….way too many camera cuts to figure where they are on the track. Laragh tried to take this field all the way, but got nipped at the wire by Maram and Heart Shaped. Saucey Evening was fourth.
4:20 p.m. … Maram is trained by Chad Brown, a former Bobby Frankel assistant who went out on his own this year. Johnny Murtagh rode a terrific race, breaking from the outside and getting the Storm Cat filly Heart Shaped into a ground-saving position. Prado took Laragh through some quick fractions, and she was game to the end. Brown’s grandfather died earlier this week and was buried in New York today. Brown said his grandfather would have wanted him to be at the Breeders’ Cup. Talk about the highs and lows of racing. Jose Lezcano rode the winner, who is unbeaten in three starts, including a narrow victory in the Miss Grillo Oct. 1. She’s a daughter of Sahm (beter than a "son of Sahm"). The photo finish shows Maram getting up to beat Heart Shaped by a matter of inches. The winner paid $24.20. $1 exotics were: $175.10 for the exacta; $898.90 trifecta; $5,796.30 superfecta. Our pick, Consequence, finished seventh and was never a threat. Time of the race was 1:35.10. Chart.
4:30 p.m. … C.S. Silk is taking a lot of money in the Juvenile Fillies, bet down to 9-2 from her 15-1 morning line. Stardom Bound is a solid favorite at 8-5.
4:35 p.m. … The obligatory feature on synthetic surfaces shows, guess what? There is no consensus on whether it’s good or bad. Caton Bredar on horse back says the Pro-Ride surface temperature is 145 degrees. Don’t go runnin’ barefoot on that, Caton!
4:43 p.m. … Now seriously, whoever is directing this telecast should try to remember one thing: people who watch horse races are interested in finding the horse they like and following its progress. Constant camera cuts and jumps make it almost impossible.
4:45 p.m. …. Returning from a commercial break, we hear Randy Moss saying he wants to see if someone is perspiring. He can only be talking about the all-time sweat king, Hank "The Bank" Goldberg. Post parade for the Juvenile Fillies. Sentimental pick is Stardom Bound, the favorite, who will be sold by 84-year-old owner Charles Cono in Kentucky after the Breeders’ Cup. Chris Paasch, her trainer, has hinted at retirement because of health problems. He’s a good guy and good for the game. Same reaction I had when hearing that Larry Jones was thinking of hanging it up because of the pressure that followed the death of Eight Belles. I’ll bet Larry just cuts back on the number of horses he trains and will continue. The way things are going it might be my only winning bet of the day.
4:58 p.m. … Stardom Bound will have to win from last place.Betdown C.S. Silk took the lead, followed by Be Smart. A half-mile in :45.92. Stardom Bound makes a six wide swoop around the turn and takes the lead. What a breathtaking performance! Dream Empress finishes second, with Sky Diva third and Dave’s Revenge fourth. Stardorm Bound was ridden with tremendous confidence by Mike Smith. This is what a championship performance looks like.
Quick story about this filly. Mother-in-law Helen touted me on Stardom Bound at Del Mar when she lost her debut July 20. I got to the track shortly after that race was run, and she said "Stardom Bound is a good one. She was unlucky to lose." Helen was right. Hope she stuck to her guns and made a winning bet today. The winner paid $5.20, and the exotics were: $24.50 for the exacta; $77.90 for the tri, and $2,538.90 for the superfecta. Time of the race was 1:40.99. Chart.
5:10 p.m. … Stuart Janney, presenting the trophy for the Juvenile Fillies, doesn’t seem to think Charles Cona has the strength to hang onto the miniature Ecorche horse that is emblematic of the Breeders’ Cup. "This is very heavy," Janney says, "and I’ll give it to whoever would like to hold it." Cona grabs it out of his hands. Cona is asked about whether or not he is going to go through with the sale. "We’re thinking," Cona says to much laughter.
5:14 p.m. … Here comes a Filly Friday feature on life at the track, focusing on female trainers Carla Gaines and Helen Pitts. Wayne Lukas, who’s been married to several females, says he never wanted to hire a woman because he’s afraid someone would fall in love with them. Nice. Gaines was asked what she sacrificed for the racetrack lifestyle. "Children….marriage," she says. Good feature. Uh-oh. Let’s put a little sour taste in it by bringing in Rick Dutrow for words of wisdom. He essentially says, "I have no interest in learning anything from a woman trainer." That’s why we luv ya, Rick. Dirt bag.
5:22 p.m. … They brought some celebrity with too many lip injections to scare the horses in the paddock. Lisa Rinna? I’m told she’s famous for being famous and that’s about it. "Rider’s up…Woo-hoo."
5:26 p.m. … What racing telecast would be complete without a Jeannine Edwards-Mike Iavarone interview? Why did you retire Big Brown and take all that money for breeding him instead, she asks him. Blah-blah-blah, he says. "His life is incomplete and my life is incomplete," Iavarone says. So was mine, Mike, until this interview. Question: Why do you have a bodyguard at the track all the time? Do that many people dislike you? There are billionaires that drive to the track in their own car, walk through the gates on their own, and wander around without a bodyguard. I know you have a nice tan and all, but that doesn’t make you a a celebrity — with or without a bodyguard.
5:32 p.m. … I’m wondering if Hank Goldberg had his sweat glands removed. Or did ESPN2 borrow Sarah Palin’s makeup artist for the telecast? Speaking of sweating, Forever Together drinks a lot of Guinness beer, according to Randy Moss, to make her sweat more. She stopped sweating in Florida, apparently. Hank, were you listening?
Frankie Dettori guns Folk Opera to the lead in the Filly & Mare Turf, gettting the first quarter in a slow :25.46 and half in :50.02. Halfway to Heaven sits in the perfect spot in second and Wait a While third. Slow three quarters in 1:14.78. Out of nowhere comes Forever Together, who sweeps by them all to win, with Sealy Hill second, Wait a While third and Visit fourth. Julian Leparoux gets it done. Forever Together, racing for George Strawbridge and trainer Jonathan Sheppard, comes off a win at Keeneland in the First Lady on Oct. 3 Good thing they don’t do a breathalyzer test for these horses. Forever Together might be DQed because of the Guinness.
Meanwhile, there is a run on Guinness at the nearby liquor store by other trainers.
5:46 p.m. … Bailey accuses the French jockey of being bi-coastal. Good thing Julian isn’t listening. Trainer Sheppard (one of the great jump trainers ever) gets his first Breeders’ Cup win after seconds with Storm Cat and With Anticipation. He hit the lottery with Storm Cat, however, getting a lifetime breeding right in the horse from owner W.T. Young and enjoying a long, profitable run. Strawbridge says he and Sheppard have been friends who have been "forever together." I notice Sheppard is sweating a bit from the heat…or was it the Guiness?
On a serious note, Strawbridge is the second cancer survivor to win on Friday, following trainer Chris Paasch. Part of the decision to have Filly Friday was to raise awareness and research funds for breast cancer in women. Cancer is a disease that doesn’t discriminate.
5:54 p.m. … Payoffs in the Filly & Mare Turf, run in 2:01.58 for the 1 1/4 miles. Forever Together, a 4-year-old by Belong to Me, paid $11.80 to win. Exotics: $224.50 for the exacta; $996.10 trifecta; $13,505.10 superfecta. Hank Goldberg had the winner. I didn’t. My pick, Halfway to Heaven, was in perfect position but had nothing left for the stretch run, finishing eighth. Chart
6:02 p.m. … Crowded paddock for the Ladies’ Classic. Everyone wants a close-up look at Zenyatta, and for good reason. She is spectacular looking. Aaron Gryder’s jockey introductions have been an OK addition to the show. Just got some insight from someone close to the Darley/Godolphin camp. Cocoa Beach is jumpin’ out of her skin, but the filly I picked to upset Zenyatta, Music Note, isn’t on her game. Let’s see how good the inside information is. It may not matter. If Zenyatta runs her race, the only contest is for second.
6:08 p.m. … Great feature on Zenyatta…little about the filly, a little about the music business that owner Jerry Moss has been such a big part of. Sting, the Police. But how come no one has asked Jerry why he failed to sign the legendary Captain Beefheart to a contract? Just realized that the Downbeat winning exacta would be Zenyatta-Music Note.
6:16 p.m. … Bear Now sprints to the lead in the Ladies’ Classic, with Zenyatta dropping back to last. Opening quarter in :23.71. Malfunction on the timer for the half mile (it said :58.08). Zanyatta on the move as the field makes the final turn. She’s good, sweeping by the on the far outside, but this was no gimmie. Cocoa Beach got an inside trip and ran hard, making the daughter of Street Cry work for the victory. Music Note gets third, with Carriage Trail fourth and Hystericalady fifth. Big day for Sheikh Mohammed, who stands Street Cry and owns the second and third place finishers.
Zenyatta’s jockey Mike Smith tells Jerry Bailey while on horseback: "Jerry, I’m in awe. Those are the best mares in the world right there. She’s just amazing. … She was there at any time that I wanted her." Let the Horse of the Year debates begin."She just makes things happen," trainer John Shirreffs tells Jeannine Edwards."She is so special and we are so blessed to have her in our barn." Randy Moss tells us that Jerry and Ann Moss intend to race Zenyatta next year when she’s five. Would that be cool, or what?
Prices: $3 to win, $6.70 on the $1 exacta; $34.30 on the tri; $116.80 for the superfecta, and $254.50 for the Super High 5. Chart.
6:30 p,m. … Nice touch: Joan Gaines, the widow of Breeders’ Cup founder John Gaines, presents the winning trophy to the Mosses. "This is our first Breeders’ Cup win, and she’ll be our first champion," Moss says. "It’s pretty amazing, pretty fantastic." Moss is fighting off tears. "I can’t help it. Applause makes me pretty emotional, somehow. I’m sorry."
A good way to end a very fine day of racing. It was mostly formful, accident free, and definitive in all of the applicable Eclipse Award divisions: Ventura in the filly and mare sprint division; Stardom Bound, 2-year-old fillies; Forever Together, filly and mare turf; and Zenyatta, older filly and mare and possibly, just possibly, Horse of the Year.
We’ll be back for more tomorrow. I hope my selections for Saturday are better than today’s 1-for-6.
Copyright © 2008, The Paulick Report
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Tags: betting the breeders' cup, bill nack, Breeders' Cup, breeders' cup results, Breeders' Cup World Championships, carla gaines, chris paasch, eight belles, espn2, filly and mare sprint, filly friday, folk opera, forever together, Frank Stronach, frankie dettori, Gary Player, george strawbridge, guinness, hank goldberg, helen pitts, IEAH, jack whitaker, jerry bailey, jerry moss, joe tessitore, joe torre, jonathan sheppard, julian leparoux, kenny mayne, larry jones, lisa rinna, live blogging the breeders' cup, Michael Iavarone, mike smith, Paulick Report, randy moss, Ray Paulick, rick dutrow, santa anita, sealy hill, stardom bound, storm cat, stuart janney, ventura, wait a while, wayne lukas, zenyatta Posted in Breeders' Cup | 10 Comments »
Friday, October 24th, 2008
By Ray Paulick
Top to bottom, this may not be the most talented group of Breeders’ Cup horses that’s ever been assembled, but it’s the biggest handicapping challenge I can ever recall, especially considering new races like the Marathon, Turf Sprint, Dirt Mile and Juvenile Turf.
As mentioned yesterday, the Breeders’ Cup Web site has loads of good information, including race schedules and post times, wagering menu, free Equibase past performances, a useful wagering calculator, a list of simulcast locations and advice for beginners. You can bet the Breeders’ Cup races through any of the approved account wagering companies.
My handicapping philosophy is to beat the favorite whenever possible, since the average percentage of winning favorites is around 33%. You might discern from the following selections that I think the Europeans are going to have a big day on Saturday. The factors leading me to believe that will be true are 1) the synthetic surface that some Europeans train on; 2) the tighter medication rules that specifically ban anabolic steroids for the first time; 3) the quality of European horses being sent to this year’s event.
Here’s my advance prognostication on the day’s nine championship races. Good luck and safe racing to all.
Special note: please be sure to check back in to the Paulick Report, beginning around 3 p.m. Eastern, for my live blog of Filly Friday. I’ll also be live blogging Saturday’s nine races, beginning at 1 p.m. Eastern.
Marathon
This looks like a two-horse race between European runner Sixties Icon and Zappa (whose namesake, the late rocker Frank Zappa, was the founder of the Mothers of Invention and was a real-life sixties icon). That works for me, but it’s an all chalk exacta. I give the edge to Sixties Icon, in part because of jockey Frankie Dettori’s experience edge at mile and a half races. Zappa is sharp and may try to steal the race under Garrett Gomez. Muhannak has plenty of synthetic track experience in Europe and likes the distance. Cedar Mountain will be closing late.
Selections: 1-Sixties Icon 2-Zappa 3-Muhannak 4- Cedar Mountain
Turf Sprint
One of the great things about the Breeders’ Cup is finding a horse you absolutely love and then discovering that it’s a longshot. That’s the case with Only Answer, a French-based filly in the care of the legendary horseman Andre Fabre, who is in top echelon of Breeders’ Cup trainers. I think she has an excellent chance to beat the boys in this spot, and Santa Anita’s ace morning line maker Jeff Tufts has her pegged at 20-1 on the morning line. Jockey Olivier Peslier, in my opinion, is as good a big-race rider as there is in the world, and he knows this filly well. The downhill turf course is a tricky one for horse and rider, with the run across the main track causing difficulty for some. It’s one of the best “horses for the course” plays in racing, which makes local runners California Flag and Get Funky formidable challengers in here. Fleeting Spirit has a lot of class, as does Diabolical, either of whom are good enough on their best days to win. I’m going for the price play.
Selections: 1-Only Answer 2-Fleeting Spirit 3-Get Funky 4-Diabolical
Dirt Mile
The status of Mast Track is in doubt as I write this, and I would be very surprised if trainer and owner Robert Frankel runs him on Saturday. If he is scratched, that’s going to make things a lot easier for Well Armed, a Tiznow gelding who seems to have found a perfect spot here, though I’d prefer him to have drawn more of an inside post position. The Eoin Harty runner can go to the lead or rate, depending on the circumstances, and the mile distance suits him perfectly. Surf Cat should be more effective at this distance, too, after running dull races in his last two starts. Bruce Headley has tightened the veteran up with some quick works. No one seems to have more confidence in his horse than Wayne Catalano, and there’s a lot to like about Lewis Michael, who grabs the advantageous rail post. Pyro’s a tough one to assess in here. His only synthetic track try at Keeneland was a disaster, but all synthetic tracks aren’t the same.
Selections: 1-Well Armed 2-Surf Cat 3-Lewis Michael 4-Pyro
Turf Mile
Irish-bred filly Goldikova has made few mistakes in her eight-race career for French trainer Freddie Head, who has enough confidence to run her against colts here at her best distance. She’s drawn perfectly in the four post and has big-race rider Olivier Peslier in the saddle. It’s not the strongest Mile field we’ve seen. Shakis is a game old-timer who always finishes with a rush. If Alan Garcia can avoid traffic problems from the rail, he won’t be far away at the finish. Kip Deville ran a puzzler last time out in Canada on a yielding track for Rick Dutrow. I’d throw that race out as he goes for a defense of his crown. U S Ranger doesn’t win very many but usually gets up for a share of the money and has been facing tough company all year. Whatsthescript got an impossible post position on the outside.
Selections: 1-Goldikova 2-Shakis 3-Kip Deville 4-U S Ranger
Juvenile
Post positions really come into play here, with the two horses I like the most, Bushranger and Midshipman, drawn way outside, a distinct disadvantage in the relatively short run to the first turn. Munnings, who has chased juvenile division leader Vineyard Haven (not entered in the Breeders’ Cup by trainer Robert Frankel) in his last two starts, draws the much friendlier rail post for his first try around two turns. That’s enough to give him the edge in this spot for trainer Todd Pletcher, especially in a race without much early speed. The son of Speightstown should get the best trip under John Velazquez. Bushranger may be the best horse and he’ll have to be overcome his 11 post. Street Hero has been steady since breaking his maiden in June and remains in top form for Myung Kwon Cho.
Selections: 1-Munnings 2-Bushranger 3-Midshipman 4-Street Hero
Juvenile Turf
Westphalia looks to me like the obvious choice here, and I wouldn’t be surprised if he is bet down to near favoritism from his 5-1 morning line. He’s in top form and has had a bit of a rest since his last win at Doncaster in mid-September. Coronet of a Baron obviously has is precocious and talented, and the shift from synthetic to turf by trainer Eoin Harty is an interesting move. Darley already has Midshipman going in the Juvenile and this gives them a good chance to sweep the two races. Of course, arch-rival Coolmore has Bushranger in the Juvenile and Westphalia in here, giving them a strong hand as well. The Darley-Coolmore rivalry will be interesting to follow throughout the two days. Bittel Road is unbeaten on turf and is the morning line choice, but he hasn’t seen this kind of competition yet. Donativum is in the more than capable hands of trainer John Gosden, who knows how to have a horse at peak form when it matters most.
Selections: 1-Westphalia 2-Coronet of a Baron 3-Bittel Road 4-Donativum
Sprint
Smallest number of runners in this race since 1986, obviously a byproduct of two new races: the Filly and Mare Sprint and Dirt Mile. I doubt that defending champ Midnight Lute scared anyone away based on his only start of the year, a dismal 10th in the Pat O’Brien at Del Mar. He’s worked sensationally for Bob Baffert since then, but it’s hard to see him up sharp enough to beat the likes of Street Boss or In Summation. I give the clear nod here to the California horses, led by the Bruce Headley-trained Street Boss. My intuition tells me Bruce Headley didn’t have the son of Street Cry cranked to the max for the Ancient Title when second to Cost of Freedom, and recent works suggest he’s ready to roll here. In Summation is a thorough professional who can be counted on to run his race. Midnight Lute will be running late. Fatal Bullet has the best chance of upsetting the local horses’ applecart.
Selections: 1-Street Boss 2- In Summation 3-Midnight Lute 4-Fatal Bullet
Turf
While Europe’s bigshots were locking horns in the Prix de l’Arc de Triomphe on Oct. 5, Mike de Kock was bringing the top-class Eagle Mountain back to the races from a fractured pelvis and year layoff at Newmarket. The Rock of Gibraltor colt won the comeback, a Group 3 race at Newmarket, and some big money subsequently came in on the horse with a British bookmaker to win the Breeders’ Cup Turf. The former Coolmore/Aidan O’Brien runner looked sharp in a morning spin at Santa Anita is primed for a big effort. Soldier of Fortune comes off a hard-fought defeat for O’Brien in the Arc. That was just his third race of the year and he might have another good one in him. Winchester turned in a monstrous performance at Arlington Park to win the Secretariat for Dermot Weld, far surpassing his European form. This is a big step up, but he showed a fondness for American style racing in that effort. Conduit completes my all- European superfecta. American turf horses appear weak again this year, but let’s not forget how English Channel romped in the 2007 Turf over supposedly superior Europeans.
Selections: 1-Eagle Mountain 2-Soldier of Fortune 3-Winchester 4-Conduit
Classic
By the time the finale rolls around, we should have a pretty good idea how European turf horses have adapted to Santa Anita’s synthetic Pro-Ride surface. I don’t have the benefit of knowing that right now, so I can only speculate how Duke of Marmalade, Henrythenavigator and Raven’s Pass will take to the track. But I guess we can say the same thing about Curlin, who has trained well on the track but never raced on a synthetic strip. Curlin may be the best horse we’ve seen in the last 10 years, in terms of his accomplishments if not his brilliance. But based on his last two victories over relatively weak competition, I think he’s beatable here. But who will beat him? Go Between, a synthetic track specialist who’s logged thousands of miles this year going from coast to coast? Casino Drive, the unbeaten but lightly raced, Japanese-trained sibling to two previous Belmont Stakes winners? Colonel John, the best 3-year-old in training following the retirement of Big Brown? The Aidan O’Brien duo of Duke of Marmalade and Henrythenavigator, who have combined for nine Group 1 victories on European turf this year? All have a realistic chance, but I’m taking the John Gosden-trained Raven’s Pass for the upset under Frankie Dettori. The Elusive Quality 3-year-old colt hasn’t gone beyond a mile, but Gosden knows from his previous experience in California that most top-class Europeans can stretch their ability out in the U.S. Raven’s Pass has had a month off since defeating Henrythenavigator in the Queen Elizabeth II Stakes and is in absolute top form. Curlin will run hard as always, but he’s had a long year for trainer Steve Asmussen. Go Between is a steady performer for Mott, who’s handled him intelligently all year. Colonel John may be the best 3-year-old, but the jury is still out on how good this year’s sophomore crop really is.
Selections: 1-Raven’s Pass 2-Curlin 3-Go Between 4-Colonel John
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Tags: aiden o'brien, andre fabre, Big Brown, bittel road, Bob Baffert, Breeders' Cup, breeders' cup handicapping, breeders' cup selections, breeders' cup wagering, Breeders' Cup World Championships, bruce headley, bushranger, casino drive, colonel john, conduit, coolmore, coronet of a baron, cost of freedom, Curlin, darley, dermot weld, dirt mile, duke of marmalade, eagle mountain, eoin harty, Fatal Bullet, fleeting spirit, frank zappa, freddie head, free past performances, get funky, go between, goldikova, handicapping the breeders' cup, henrythenavigator, Horse Racing, in summation, john gosden, juvenile, juvenile turf, kip deville, lewis michael, marathon, mast track, michael de kock, michael stoute, midnight lute, midshipman, mile, mothers of invention, muhannak, olivier peslier, only answer, pari-mutuel wagering, Paulick Report, pyro, raven's pass, Ray Paulick, rick dutrow, robert frankel, shakis, sixties icon, soldier of fortune, sprint, street boss, surf cat, todd pletcher, turf spring, u s ranger, well armed, westphalia, winchester, zappa Posted in Breeders' Cup, Curlin, International Racing, Racing Greats, Ray Paulick, Synthetic surfaces, Wagering | 5 Comments »
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