Posts Tagged ‘Don Robinson’
Thursday, July 9th, 2009
By Ray Paulick
(UPDATED: 6:30 p.m.)
Three of the four incumbent Directors of the 13-member Breeders’ Cup board did not receive enough support from their fellow Members and Trustees to retain their positions in an election that culminated with an annual meeting today at Keeneland in Lexington, Ky.
Re-elected to a two-year term on the board of Directors was Robert Manfuso of Maryland’s Chanceland Farm and a former investor in the Maryland Jockey Club racetracks. Newly elected to the board were five individuals: Tom Ludt of Vinery; Clem Murphy of Coolmore/Ashford; Richard Santulli of Jayeff “B” Stables; Oliver Tait of Darley; and Duncan Taylor of Taylor Made Farms and Sales Agency. Incumbents Reynolds Bell Jr., G. Watts Humphrey, and Don Robinson failed in their bids for re-election. The other candidate not receiving enough votes was John Sikura of Hill ‘n’ Dale Farms, a board candidate for the second consecutive year.
In last month’s election of Breeders’ Cup Members and Trustees, two individuals on the board of Directors, Donald Dizney and Tracy Farmer, failed to be re-elected and were thus ineligible to run for re-election on the smaller board of Directors. Thus, five of six incumbents on the board of Directors failed to be re-elected.
The 48 Members and Trustees, past presidents and current officers of the Breeders’ Cup  had the option of voting online from July 1-8 or in person at today’s meeting, during which a presentation was made by William Field of the international consulting firm, Value Partners, on behalf of the Strategic Planning Committee that has been drafting a 10-year plan for the organization.Â
Vote totals were not provided for the board of Directors election, despite assurances to the Paulick Report in May by Breeders’ Cup president Greg Avioli that results to both the Members and Trustees and board of Directors elections would include the number of votes every candidate received. Following the Members and Trustees election in June, Breeders’ Cup only released the number of votes received by the winning candidates, not by those who failed to be elected. Avioli declined to comment when asked about today’s board of Directors election results.
Following the meeting of the Members and Trustees, the newly-named board of Directors met and re-elected Bill Farish to a one-year term as chairman of the board. Manfuso was elected vice chairman, replacing R.D. Hubbard in that position. Hubbard is one of the seven other board members, along with Helen Alexander, Antony Beck, Farish, Terry Finley, Roy Jackson, and Satish Sanan (their terms expire in 2010).
The other officers re-elected to one-year terms were Avioli, president, and Matthew Lutz, treasurer. Robert Watt, an attorney who has represented the Breeders’ Cup in the past, was elected to the post of secretary, replacing James A. Philpott Jr., who resigned after serving in that post since 1983.Â
The board unanimously approved the following Committee Chair appointments: Audit and Finance Committee – Oliver Tait; Investment Committee – Richard Santulli; Compensation Committee – Satish Sanan; Host Site Committee – R.D. Hubbard; Racing and Nominations Committee – Clem Murphy; Marketing - Roy JacksonÂ
The Breeders’ Cup will host a teleconference for its nominators and the media with Value Partners at 2 p.m. (EDT) Friday, July 10, to review the recommendations of the strategic plan in greater detail.
“Our five new Directors comprise an outstanding group of individuals with knowledge and expertise that will be vital to the Breeders’ Cup in the opportunities before us.†chairman Farish said in a statement. “We also express our sincere thanks to Reynolds Bell, Watts Humphrey and Don Robinson for their excellent and distinguished service to the board.â€
Humphrey, a partner of Farish’s father, Will Farish, in numerous ventures at the Farishes’ Lane’s End Farm, has been a Breeders’ Cup board member for many years and was a member of the Executive Committee that essentially ran the organization prior to its decision to allow nominators (beginning to 2006) to elect a board of Members and Trustees, who in turn vote for the board of Directors. Bell, a bloodstock agent with close ties to Lane’s End, had been rumored to be Bill Farish’s preferred candidate to replace him as chairman if Farish serves the maximum of five years in that position. He was re-elected today to his fourth year as chairman.
Copyright © 2009, The Paulick Report
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Tags: Breeders' Cup, breeders' cup board of directors; breeders' cup members and trustees, breeders' cup election, Clem Murphy, Don Robinson, donald dizney, duncan taylor, G. Watts Humphrey, Oliver Tait, Paulick Report, Ray Paulick, reynolds bell, richard santulli, robert manfuso, tom ludt, tracy farmer
Posted in Breeders' Cup | 1 Comment »
Monday, July 6th, 2009
By Ray Paulick
Some people have asked me why I think it is so important for there to be a change in leadership, starting with the 13-member board of Directors, at the Breeders’ Cup. There currently are six board seats up for election, with electronic voting currently taking place from July 1-8 among the 48-person board of Members and Trustees (along with two ex-presidents and two current officers of the organization). The Members and Trustees hold their annual meeting on July 9, where the electronic votes and those cast in person will be tabulated. Ten individuals are running for the six seats, and there is marked difference in their philosophies.There are numerous reasons for there to be a change, not the least of which is that it is simply time for someone else to run the organization. The Breeders’ Cup for too long has been in the clutches of a handful of people who have run it, for better or worse, as a private club.
But it’s much more than that. Some of the recent decisions made by management and approved by the 13-member board of Directors have been roundly criticized, and deservedly so. Among them are the decision to hold back-to-back Breeders’ Cups at Santa Anita on a synthetic main track that many horsemen dislike; the ticket-pricing mistake at the 2008 Breeders’ Cup; the short-lived decision to suspend the Breeders’ Cup stakes supplement program; and the oddly configured and regionally uneven structure of the “Win and You’re In†qualifying races.
Let’s look at “Win and You’re In†first. Daily Racing Form publisher Steven Crist, in calling the series “illogical and imbalanced,†pointed out what appears to be a significant anti-New York bias. In an interview with Breeders’ Cup marketing executive Peter Land, Crist gave Land just enough rope to hang himself with his explanation. Land, Crist wrote, said Saratoga was left out of the “Win and You’re In†series because the Breeders’ Cup decided to “invest in the fall rather than the summer.†But that didn’t explain why Del Mar, whose meet overlaps Saratoga’s, had eight stakes labeled “Win and You’re In†while Saratoga had zero.
As Crist wrote, “When the industry’s leaders wonder why racing often is not considered a big-league professional sport, they need look no farther than the patently unfair and incomplete ‘Win and You’re In’ schedule to see why.â€
In addition, there is bad blood between executives of the Breeders’ Cup and the New York Racing Association, and because of that some thought has been given to excluding Belmont Park as a future host site of the championships. It last served as host in 2005.There’s no place for this kind of pettiness in a sport that is struggling, and for the Breeders’ Cup board to allow this feud to continue is inexcusable.
Land, I’m afraid, may also be the culprit for the price-gouging then went on at the 2008 Breeders’ Cup, when horsemen and fans who wanted to attend either of the two days were required to buy a two-day package. If that wasn’t bad enough, the seat prices were outrageous in comparison to past years. At least Land and the Breeders’ Cup recognized the errors of their ways, and for 2009 have eliminated the two-day package requirement and reduced prices substantially.
That’s fine, but what on earth were they thinking when they set those prices? (And, yes, I know, there was a meltdown in the economy in September, just a little over a month before the Breeders’ Cup. But it was clear before then ticket sales were slow in reaction to the high prices.)
The philosophy of selecting host sites has been an important subject of a Breeders’ Cup Strategic Planning Committee that has been meeting for the past several months. There is one camp that feels the event should rotate evenly among California, Kentucky and New York, and another that wants to see Kentucky on an every-other-year rotation with the two coasts. There also may be those who want to establish a permanent site (with some suggesting an expansion of Keeneland would be tied to that decision to make the Lexington track a permanent host). Yet no one (other than some Californians perhaps) seems to like the idea of back-to-back Breeders’ Cups at Santa Anita Park on the Pro-Ride synthetic main track. But that’s what we have, and there already are repercussions, with Jess Jackson saying there is no way he will run Preakness-winning filly Rachel Alexandra in this year’s Breeders’ Cup.
Who thought that was a good idea?
Finally, much has been written and said about the move last December to eliminate the stakes supplements that have been part of the Breeders’ Cup since its inception. The outrage that led to a reversal of the decision seemed not so much based on eliminating the program, but on the timing and manner of how the decision was made—namely, in a vacuum.
It’s this “we know what’s best for you†philosophy and the kicking and screaming against transparency (board meetings without published agendas, minutes or attendance records for those meetings that are not made available, promises of complete election results but delivery of only partial vote counts) that may have led so many Breeders’ Cup nominators to vote against incumbents and associates of the “old guard†or “status quo†candidates in the recent election of Members and Trustees.
I encourage those who were newly elected, along with existing Members and Trustees who believe a change in leadership would benefit the Breeders’ Cup, to vote for the following candidates in the board of Directors election: Tom Ludt of Vinery, Clem Murphy of Coolmore/Ashford, Richard Santulli of Jayeff “B†Stables, John Sikura of Hill ‘n’ Dale, Oliver Tait of Darley, and Duncan Taylor of Taylor Made Farm and Sales Agency. It’s my belief they represent positive change for the future of the Breeders’ Cup.
Let me repeat what I wrote about these six candidates last week. They are very strong candidates who bring a diverse set of skills and industry and/or outside business experience. Santulli and Sikura were rebuffed in last year’s election, which outraged many breeders who recognize both men for their intellect and commitment to this industry. Santulli has an extraordinary reputation in the business world, and Sikura is widely respected as a man with, as the saying goes, “skin in the game,” and a no-nonsense approach to getting things done. Murphy and Tait represent the two largest farms with the greatest global vision and would be a great asset to the board of Directors as the Breedrs’ Cup seeks to expand internationally. Ludt has demonstrated independence and a common-sense approach to analysis and problem solving in various industry leadership positions, and Taylor is one of the brightest marketing people in the Thoroughbred industry today who has a compassion and drive to see the industry reconnect with the public.
Reynolds Bell, G. Watts Humphrey Jr, and Robert Manfuso, who are running for reelection, have been a part of the leadership that’s been involved in some of the questionable decisions of the recent past. It’s time for them to be replaced. The fourth candidate running for reelection, Don Robinson, only recently joined the board after the resignation of B. Wayne Hughes. I have heard nothing but good things about Robinson and how he conducts his business at Winter Quarter Farms. He was, however, appointed to the board by Bill Farish, the Breeders’ Cup chairman who is said to dole out committee chairmanships and other appointments with the expectation that those he favors remain loyal to him when push comes to shove.
And there’s some pushing and shoving going on right now in the scramble for those six open board seats.Â
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Tags: Bill Farish, Breeders' Cup, Breeders' Cup board of directors, breeders' cup board of members and trustees, breeders' cup election, Clem Murphy, Don Robinson, duncan taylor, g. watts humphrey jr., John Sikura, Oliver Tait, Paulick Report, Ray Paulick, reynolds bell, richard santulli, robert manfuso, tom ludt, william farish jr.
Posted in Breeders' Cup, Industry Organizations | 14 Comments »
Thursday, June 18th, 2009
By Ray Paulick
For those of you wondering whether I’d gone into the witness protection program following the announcement of election results for the Breeders’ Cup board of members and trustees (where 10 of those elected were recommended here in an earlier analysis), fear not. As one of my mentors in this business often reminds me, family should be a person’s top priority, and I’ve spent the last couple of days carrying out his advice.
Several things stood out when the results were announced on Tuesday. First, I believe they represent a victory for continuing the trend toward transparency and openness for the organization. There should be no turning back to the days of secrecy with how the industry’s money is being spent at the Breeders’ Cup. Minutes to board meetings should be posted on the Breeders’ Cup web site, information about committees and subcommittees needs to be published, and decisions should no longer be made in a vacuum. I believe the board of directors, which has taken steps in the right direction over the last couple of years, has been put on notice in that regard during this year’s vote by nominators.
Second, I believe the results showed dissatisfaction with the status quo. Two members of the smaller operating board of directors, Don Dizney of Florida and Tracy Farmer, were not re-elected to the larger board of members and trustees. It’s that larger board that decides who to elect for the smaller operating board, and to be a candidate you have to be on the board of members and trustees. Dizney and Farmer will be replaced on the smaller board after having been defeated in the election.
Third, the results show the strength of stallion farms and coalitions, something I wrote about last year. I don’t think any one stallion operation has the votes to elect an individual to the board of members and trustees, but several farms working together can do so. And there was coalition building going on prior to and during this election process.
Finally, and perhaps most significantly, the leading vote getter among Breeders’ Cup nominees, Richard Santulli, is the same man rejected by a majority of members and trustees voting for the smaller board of directors last year. I wrote then that the members and trustees made a huge mistake in not electing Santulli to the board. He is a man with great energy, enthusiasm for this industry and great business experience that could be put to extraordinarily good use by the Breeders’ Cup. He is chairman of NetJets and often is mentioned as a potential heir apparent to Berkshire Hathaway’s Warren Buffet. Perhaps the “old guard” on the board of members and trustees voted against Santulli because NetJets dropped its Breeders’ Cup sponsorship, or maybe because he is closely associated with Thoroughbred Daily News Publisher Barry Weisbord, who can be a prickly critic of the status quo. It’s also widely believed that Santulli felt the Breeders’ Cup should have sought executive experience from outside of horse racing when current Breeders’ Cup president and CEO Greg Avioli was given the job in 2007. Putting him on the smaller board could add some discomfort to management.
Whatever the reason, the nominators in this election voiced strong disapproval of the vote to keep Santulli off the operating board. Let’s hope he still has the interest in giving his time, energies and insights to the industry and will submit his name for nomination later this month.
There are six open spots on the board of directors, and if dissatisfaction with the status quo and the old guard carries over into that election, we could have a significant change in philosophy on the operating board. As mentioned, the board positions currently held by Tracy Farmer and Donald Dizney are open because they failed to be re-elected to the board of members and trustees. The other four candidates that are up for re-election are Reynolds Bell, Don Robinson (appointed to fill out the remainder of the term held by B. Wayne Hughes, following the decision by Hughes to resign from the board earlier this year), G. Watts Humphrey and Bob Manfuso.
Bell and Humphrey are closely associated with Lane’s End Farm, owned by William S. Farish, the father of current Breeders’ Cup board chairman Bill Farish. For years, Humphrey and the senior Farish were the guiding force of the Breeders’ Cup executive committee, back when the organization practiced limited transparency and operated under the auspices of a self-perpetuating board.
While the old guard from the Jockey Club (Farish is a Jockey Club member, his father-in-law is chairman Ogden Mills (Dinny) Phipps and his father is vice chairman, Humphrey is a longtime member and former steward, and Bell is a member and current steward of the club) did maintain control in the last board election, their grip on power has been weakened. I expect the slate of candidates from opponents of the status quo/old guard to make a concerted effort to defeat Humphrey and Bell in the upcoming election. Sources say Bell, who does extensive bloodstock work for Lane’s End, has been hand-picked by the Farishes to replace Bill Farish as Breeders’ Cup chairman if Farish serves five years, the limit for a chairman under the organization’s current bylaws. He has served three years in that role.
There will be much more here in the coming weeks on the Breeders’ Cup board election, which takes place during a meeting of the newly elected members and trustees on July 9. Candidates seeking a position on the board have until June 30 to state their intention to run.
Copyright © 2009, The Paulick Report
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Tags: Barry Weisbord, Bill Farish, bob manfuso, Breeders' Cup, breeders' cup election, Dinny Phipps, Don Robinson, donald dizney, G. Watts Humphrey, Greg Avioli, Jockey Club, lane's end farm, netjets, Ogden Mills Phipps, reynolds bell, richard santulli, tracy farmer, William S. Farish
Posted in Breeders' Cup, Industry Organizations, Jockey Club | 6 Comments »
Tuesday, May 5th, 2009
By Ray Paulick
The Breeders’ Cup has begun to let the sun shine on the annual election process that determines who ultimately sits on the organization’s board of directors. For the first time this year, the Breeders’ Cup has decided to publish a roster of eligible voters and their available number of votes; complete results of its elections, with vote counts for winners and losers; it is requiring candidates for the board of directors be declared prior to the annual meeting, with no nominations to be accepted from the floor; has established on-line voting for both the members and trustees election and for the board of directors; and its officers have agreed to abstain from voting in the board of directors election.
The process began on Monday, May 4, when stallion and foal nominators could begin nominating candidates to run for 13 openings on the 48-person Breeders’ Cup board of members and trustees. By now, nominators should have received a letter from the Breeders’ Cup with a customer login and passcode to access a secure voting website that will be open for one week until May 11. Individuals must receive a minimum of 50 votes to be nominated (one vote is assigned for each foal nominated to the Breeders’ Cup and one vote for each $500 in stud fees for nominated stallions). There are 39 elected positions on the board of members and trustees, each with three-year terms, and 13 positions are up for election every year. The other individuals on the board of members and trustees are founding members of the Breeders’ Cup, past presidents and corporate officers.
When nominators go to the voting site, they should have access to a complete list of nominators and the total votes each nominator is eligible to cast. The disclosure of the nominators and number of votes is new to this year’s election.
The next step (from May 12-15), following the closing of nominations, is tabulation of the list of nominees. Individuals that received the required 50 votes are sent a consent form and will be requested to provide a short biography and suitable photo.
On May 18, True Ballot, a company that specializes in elections for labor unions, professional organizations, etc., mails nominators a letter with customer login and password information for secure online election voting. Nominators may request a paper ballot if they prefer.
Voting for the members and trustees election is open from June 1-15 among all nominators to the Breeders’ Cup program.
Following are the 13 members and trustees whose terms are expiring this year: John Amerman, Boyd Browning, Alice Chandler, Donald Dizney, Tracy Farmer, Tom Ludt, Clem Murphy, B. Wayne Hughes, Ogden Mills Phipps, Dan Pride, Richard Santulli, John Sikura, and Frank Stronach. These members and trustees whose terms are expiring are automatically re-nominated unless they opt out of the election.
On June 22, True Ballot will report the results of the members and trustees election and Breeders’ Cup will publish the results. Those results won’t be made official, however, until the annual meeting of members and trustees is held on July 9, and the candidates with the most votes are put up for election by the existing members and trustees. Prior to the vote at the annual meeting, according to section 4.2 of the Breeders’ Cup bylaws, nominations from the floor can also be made by members and trustees.
All members and trustees wishing to be candidates for two-year terms on the smaller board of directors have until 5 p.m. on June 30 to submit their names to Jim Philpott, the Breeders’ Cup corporate secretary. While the election for those open board positions (there are six this year) is conducted during the July 9 annual meeting of members and trustees, individuals unable to attend may vote through the election web site or via proxy, provided the member holding the proxy reveal the identity of each proxy he or she has received at the annual meeting. Each member is entitled to vote for up to six candidates.
The six board members whose two-year terms expire in July are: Reynolds Bell, Don Dizney, Tracy Farmer, Don Robinson (who is serving the remainder of the term of B. Wayne Hughes, who resigned from the board in January), G. Watts Humphrey, and Robert Manfuso. There are 13 elected board members, plus Breeders’ Cup president/CEO Greg Avioli.
Breeders’ Cup will publish the results of the board election, including votes, at the conclusion of the July 9 meeting.
Officers are elected at a subsequent meeting of the newly elected board of directors. According to Breeders’ Cup bylaws, no individual may serve more than five consecutive years as chairman or vice chairman of the board. Bill Farish of Lane’s End Farm is in his third year as chairman.
In a memo to the Breeders’ Cup members and trustees, Farish outlined the changes to this year’s election (publication of vote totals by nominator, full election results, on-line voting for both elections, proxy procedures, and officers electing to abstain in board of director election). “These changes to the election procedures are intended to provide full transparency to all nominators and ensure confidence in the election process,” Farish said in the memo.
The changes were requested by members and trustees who felt previous elections lacked sufficient transparency.
Additional changes have been requested, including amendments to the bylaws that would eliminate voting in the election for the board of directors by current officers (they have voluntarily abstained from the upcoming election); voting in the board of election by past presidents (James E. Bassett III and D.G. Van Clief Jr.); and voting in the board of election by founding members of the Breeders’ Cup, some of whom are no longer active in the Thoroughbred industry.
I’ll have my own thoughts on the Breeders’ Cup election process in a follow-up commentary tomorrow.
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Tags: Alice Chandler, b. wayne hughes, Bill Farish, boyd browning, Breeders' Cup, Breeders' Cup board of directors, breeders' cup elections, Breeders' Cup members and trustees, Clem Murphy, D.G. Van Clief Jr., Dan Pride, Don Robinson, donald dizney, Frank Stronach, G. Watts Humphrey, Greg Avioli, Horse Racing, James E. Bassett III, John Amerman, John Sikura, Ogden Mills Phipps, Paulick Report, Ray Paulick, reynolds bell, richard santulli, robert manfuso, tom ludt, tracy farmer, true ballot, trueballot.com
Posted in Breeders' Cup, Industry Organizations, People | 5 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 »
Wednesday, July 9th, 2008
Phone lines in Central Kentucky have been burning up among the nearly 50 incumbent and newly elected members and trustees of the Breeders’ Cup, who will be responsible for electing seven individuals to the 14 member operating board of directors in Lexington, Ky., on Friday.
Five members of the board — Antony Beck, current board chairman Bill Farish Jr., Terry Finley, R.D. Hubbard and Satish Sanan - are up for re-election, and all five are expected to seek a new two-year term. There are two open positions previously held by Robert Clay and Joseph Shields Jr., who lost re-election bids to the members and trustees board, voting for which was conducted in June among all Breeders’ Cup program nominators. Clay was vice chairman of the Breeders’ Cup board of directors.
John Sikura is the only new name that has surfaced as a "declared" candidate for a board seat, though others will certainly will develop by Friday’s meeting.
In the meantime, numerous phone calls are being made by members of two distinct camps seeking proxies and support in advance of what figures to be a hotly contested election for control of the Breeders’ Cup. In previous elections
Here are the members and trustees listed on the Breeders’ Cup web site or last week’s election results: Josephine Abercrombie, Helen Alexander, John Amerman, Gregory C. Avioli, James E. Bassett III, Antony Beck, Reynolds Bell Jr., Boyd Browning Jr., Doug Cauthen, Alice Chandler, Brownell Combs II, Donald R. Dizney, William S. Farish, William S. Farish Jr., Tracy Farmer, Terrence P. Finley, James E. Friess, Thomas Gaines, Lucy Young Hamilton, L. William Heiligbrodt, R.D. Hubbard, B. Wayne Hughes, G. Watts Humphrey Jr., Roy Jackson, Brereton C. Jones, John T.L. Jones Jr., John T.L. Jones III, Tom Ludt, Wayne G. Lyster III, Robert T. Manfuso, Robert McNair, Clem Murphy, Maria Niarchos-Gouaze, Charles C. Nuckols III, J. Michael O’Farrell Jr., Bill Oppenheim, James A. Philpott Jr., Ogden Mills Phipps, Dan Pride, Don Robinson, Satish K. Sanan, Richard T. Santulli, John G. Sikura, Frank Stronach, Mark Taylor, D.G. Van Clief Jr., Charlotte Weber, Barry Weisbord, and Christopher Young.
By Ray Paulick
Copyright ©2008, The Paulick Report
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Tags: Alice Chandler, Antony Beck, b. wayne hughes, Barry Weisbord, Bill Oppenheim, Boyd Browning Jr., Breeders' Cup, Breeders' Cup board of directors, Brereton C. Jones, Brownell Combs II, Charles C. Nuckols III, Charlotte Weber, Christopher Young, Clem Murphy, D.G. Van Clief Jr., Dan Pride, Don Robinson, Donald R. Dizney, Doug Cauthen, Frank Stronach, g. watts humphrey jr., Gregory C. Avioli, Helen Alexander, J. Michael O'Farrell Jr., James A. Philpott Jr., James E. Bassett III, James E. Friess, John Amerman, John G. Sikura, John T.L. Jones III, John T.L. Jones Jr., Josephine Abercrombie, L. William Heiligbrodt, Lucy Young Hamilton, Maria Niarchos-Gouaze, Mark Taylor, Ogden Mills Phipps, Paulick Report, R.D. Hubbard, Ray Paulick, reynolds bell jr., Richard T. Santulli, Robert McNair, Robert T. Manfuso, Roy Jackson, Satish K. Sanan, Terrence P. Finley, Thomas Gaines, tom ludt, tracy farmer, Wayne G. Lyster III, William S. Farish, William S. Farish Jr.
Posted in Breeders' Cup | Comments Off
Thursday, July 3rd, 2008
The startling election results for the Breeders’ Cup board of members and trustees conducted among nominators to the program teaches us one thing about this relatively new process: no single farm or entity can stack the board with its own candidates.
That is driven home by the fact that Robert Clay of Three Chimneys Farms, the current vice chairman of the Breeders’ Cup board of directors (the 14-person board elected by the 48 members and trustees), did not receive enough votes to retain his spot as a member/trustee. It is confirmed again by the election loss of James McAlpine, a longtime Magna executive associated with Frank Stronach, who presumably would have thrown the considerable clout of his Adena Springs Farm behind McAlpine in the Breeders’ Cup election process that Stronach himself helped bring about through reforms in governance several years ago. (Those reforms were detailed in a two part series in the Paulick Report: Part 1, Part 2). In voting conducted during the month of June, Breeders’ Cup nominators received one vote for every $500 they paid in foal or stallion nominations. Stallion farms with the high-end stud fees obviously hold the most votes, since a $100,000 stud fee would give a farm 200 votes in the process. Yet even with a Three Chimneys stallion roster that currently includes $460,000 in annual “published” stud fees (and, thus, 920 votes, theoretically), Clay was unable to secure enough votes to retain his seat on the board of members and trustees.
As a result, Clay, who has served on numerous industry organization boards over the last 25 years, will not be eligible to run for re-election to a two-year term on the 14-member Breeders’ Cup board of directors, the group that makes the key operational decisions for the organization. That election will be held during a meeting of the newly elected board of members and trustees in Lexington July 11. To be eligible to run for the board of directors, an individual must be on the larger board of members and trustees. Just as consensus building is necessary to get federal legislation passed in Congress, individuals seeking seats as Breeders’ Cup members/trustees must build coalitions among different groups of nominators. Clay apparently did not do that; nor did three others seeking re-election on the board of members and trustees: Robert Cromartie, Leverett Miller, and Joseph Shields, Jr.
Elected to the board of members and trustees were Helen Alexander of Middlebrook Farm; Doug Cauthen of WinStar Farm; Bill Farish Jr. of Lane’s End; Terry Finley of West Point Thoroughbreds; Lucy Young Hamilton of Overbrook Farm; Maria Niarchos-Gouaze of Poseidon Services Inc; Charles Nuckols III of Nuckols Farm; Bill Oppenheim, a bloodstock agent who writes for Thoroughbred Daily News; Don Robinson of Winter Quarter Farm; Mark Taylor of Taylor Made Farm; Charlotte Weber of Live Oak Stud; and Barry Weisbord, publisher of Thoroughbred Daily News. Of that group, Alexander, Farish, Young Hamilton, Niarchos-Gouaze, Nuckols, and Taylor were re-elected.
In addition to Clay, Cromartie McAlpine, Miller and Shields, the following nominees to the board of members and trustees did not get enough votes for election: Bobby Flay, Arnold Kirkpatrick, Allan Lavin Jr. and Ric Waldman.
Seven of the 14 board of director seats will be open for nomination during the July 11 election, including the seats that have been held by Clay and Shields, whose terms expire. With their required departure, there will be at least two new members elected. In addition, the two-year terms of Antony Beck, current board chairman Bill Farish Jr., Terry Finley, R.D. Hubbard and Satish Sanan also expire, with each eligible for re-election.
The smaller board of director positions are staggered, and the following six individuals were elected to two-year terms in July 2007: Reynolds Bell Jr., Donald Dizney, Tracy Farmer, B. Wayne Hughes, G. Watts Humphrey Jr., and Robert Manfuso. The 14th board position is filled by the Breeders’ Cup CEO, Greg Avioli.
It may be noteworthy that Clay, Miller and Shields were considered part of the “old guard,” as each are members of the Jockey Club, which for decades has tried to assert control over many industry organizations. Not everyone newly elected or re-elected to the board of members and trustees can be classified as “old guard” or “new guard,” but victories by Doug Cauthen, Bill Oppenheim and Barry Weisbord clearly indicate that efforts were made by nominators with large blocs of vote to inject new blood into the organization that runs the two-day championships scheduled to be held for the next two years during the Oak Tree Racing Association meeting at Santa Anita Park in Southern California.
What new alliances are formed among the newly seated board of members and trustees will determine who is retained, newly elected or rejected from the smaller board. That new board, to be seated in September, will determine whether Bill Farish will remain chairman and will also elect a vice chairman of the board. More importantly, the new board will control the fate of the Breeders’ Cup—at least until the next election.
By Ray Paulick
Copyright ©2008, The Paulick Report
Tags: Allan Lavin Jr., Arnold Kirkpatrick, b. wayne hughes, Barry Weisbord, Bill Farish Jr., Bill Oppenheim, Bobby Flay, Breeders' Cup, Breeders' Cup board of directors, Charles Nuckols III, Charlotte Weber, Don Robinson, donald dizney, Doug Cauthen, Frank Stronach, g. watts humphrey jr., Greg Avioli, Helen Alexander, Joseph Shields Jr., Leverett Miller, Lucy Young Hamilton, Maria Niarchos-Gouaze, Mark Taylor, Paulick Report, Ray Paulick, reynolds bell jr., Ric Waldman, Robert Clay, Robert Cromartie, robert manfuso, Terry Finley, tracy farmer
Posted in Breeders' Cup, Industry | Comments Off
Wednesday, July 2nd, 2008
Robert Clay, the owner of Three Chimneys Farm and vice chairman of the 14-member Breeders’ Cup board of directors, did not receive enough votes from nominators to retain his seat on the organization’s 48-person board of members and trustees, the Paulick Report has learned. In something of a changing of the guard for the Breeders’ Cup, Clay was one of four incumbents on the board of members and trustees who was not re-elected. The others were Robert Cromartie, Leverett Miller and Joseph Shields Jr., the latter also a member of the smaller board of directors.
Voting took place during June, with nominators getting one vote for each $500 spent for foal or stallion nominations. Farms with major stallions or a large number of nominated foals had the largest blocs of votes.
Elected to the board of members and trustees were Helen Alexander, Doug Cauthen, Bill Farish Jr., Terry Finley, Lucy Young Hamilton, Maria Niarchos-Gouaze, Charles Nuckols III, Bill Oppenheim, Don Robinson, Mark Taylor, Charlotte Weber, and Barry Weisbord. Of that group, Alexander, Farish, Young Hamilton, Niarchos-Gouaze, Nuckols, and Taylor were re-elected. Farish, son of Lane’s End owner William S. Farish, is chairman of the Breeders’ Cup board.
The nine nominated for board of members and trustees positions but not receiving enough votes for election were: Clay, Cromartie, Bobby Flay, Arnold Kirkpatrick, Allan Lavin Jr., James McAlpine, Miller, Shields Jr., and Ric Waldman.
The primary purpose of the 48-member board of members and trustees is to elect 13 members to two-year terms on the board of directors (the 14th board seat is filled by Breeders’ Cup CEO Greg Avioli). To be elected or re-elected to the board of directors, an individual must be on the larger board of members and trustees. That group meets in Lexington, Ky., July 11 to elect seven individuals for the open positions on the board of directors. Two of the seven — Clay and Shields — are now ineligible to run. The other five whose terms are expiring and will be eligible for re-election are Antony Beck, Farish, Finley, R.D. Hubbard and Satish Sanan.
By Ray Paulick
Copyright ©2008, The Paulick Report
Tags: Allan Lavin Jr., Arnold Kirkpatrick, Barry Weisbord, Bill Farish Jr., Bill Oppenheim, Bobby Flay, Breeders' Cup, Breeders' Cup board of directors, breeders' cup election, Charles Nuckols III, Charlotte Weber, Don Robinson, Doug Cauthen, Helen Alexander, James McAlpine, Joseph Shields Jr., Leverett Miller, Lucy Young Hamilton, Maria Niarchos-Gouaze, Mark Taylor, Paulick Report, Ray Paulick, Ric Waldman, Robert Clay, Robert Cromartie, Terry Finley
Posted in Breeders' Cup, Industry | 2 Comments »
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