Posts Tagged ‘Helen Alexander’

On the surface, it seems unfathomable that the 40-some members and trustees, founding members and officers of the Breeders’ Cup who select the organization’s operating board of directors could have rejected Richard Santulli, whose business acumen is such that he is on the short list of candidates to succeed Warren Buffett, the “oracle of Omaha,” as chairman of Berkshire Hathaway. But that’s what they did on Friday, when the group voted to fill seven positions on the 14-member board. Neither Santulli, a New Jersey-based Thoroughbred owner and breeder, or Hill ‘n’ Dale Farm owner John Sikura received enough votes to secure a board seat.

The members and trustees re-elected all five of the candidates who sought re-election to two-year terms: Breeders’ Cup board chairman Bill Farish of Lane’s End Farm, Antony Beck of Gainesway Farm, Terry Finley of West Point Thoroughbreds, racetrack and casino owner R.D. Hubbard, and Satish Sanan of Padua Stables. Two open seats, made possible when board members Robert Clay and Joseph Shields Jr. were voted off the board of members and trustees by Breeders’ Cup nominators, were filled by Helen Alexander of Middlebrook Farm and Roy Jackson of Lael Stables.
Those seven are joined on the Breeders’ Cup board by the following individuals who were elected to two-year terms in 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 is widely believed that the xenophobic duo of Farish and his father, Will, the vice chairman of the Jockey Club, lobbied heavily with the members and trustees to keep Santulli and Sikura off the board. Ironically, Santulli has been a client of Lane’s End, keeping mares at the Versailles, Ky., farm. Both Santulli and Sikura have been outspoken in their criticism of various aspects of the Breeders’ Cup in recent years. NetJets, the company Santulli founded and which is now part of the Berkshire Hathaway empire, was a Breeders’ Cup sponsor for several years but did not renew its sponsorship in 2008.
New Jersey-based Thoroughbred Daily News publisher Barry Weisbord, a close associate of Santulli, is believed to have lobbied to get Santulli elected. In addition, a number of Kentucky-based members and trustees pushed for the election of Sikura.

Simply put, Farish had the most juice in this election, and sources say it wasn’t even close.

The two new board members, Alexander and Jackson, represent old money. Alexander is an heir to the massive King Ranch, which raced 1946 Triple Crown winner Assault. She is widely respected for her independence and toughness, and support for her candidacy likely reached across the various factions.

Jackson, an heir to the Standard Oil fortune through his grandfather, William D. Rockefeller, is best known as the owner-breeder with wife Gretchen of Barbaro, the Kentucky Derby winner whose injury in the Preakness and unsuccessful battle to survive was a closely followed national drama two years ago. Having the conservative and low-keyed Jackson seek election was a stroke of genius by whoever convinced him to run. He and his wife, along with trainer Michael Matz, jockey Edgar Prado and veterinary surgeon Dean Richardson, were the human elements in the Barbaro story, and the Jacksons received plaudits from all corners for their handling of the horse’s post-Preakness struggles.

I’ve never heard anyone compare Jackson’s business experience with that of Richard Santulli, or his knowledge of the horse industry with John Sikura. But he is without enemies in the business and doesn’t make waves: a sure-fire qualification for an endorsement from the Farishes.

The respect for Alexander and the affection for Jackson notwithstanding, the rejection of a highly successful businessman like Santulli is mind-boggling. If he is good enough to be a candidate to run Berkshire Hathaway, it’s almost comical to think he would not be an asset on the Breeders’ Cup board.

The only conclusion I can make is that the most influential board members, led by Bill and Will Farish, are interested only in maintaining power by preventing individuals with different points of view from getting elected.

“Billionaires run the industry,” one horseman said to me after the election. “The only way to beat them is on the racetrack.” 

By Ray Paulick

Copyright ©2008, The Paulick Report

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Curlin was the story of the week, in the court room and on the racetrack.

The 2007 Horse of the Year made his grass debut Saturday in Belmont Park’s Man o’ War going 1 3/8 miles and ran a solid race to be second to Red Rocks, the 2006 Breeders’ Cup Turf winner. Solid enough to warrant a trip to France for the Prix de l’Arc de Triomphe in October? Not in my book, not when you consider how much stiffer the competition will be and how much more challenging the conditions at Longchamp figure to be.

The fact that Curlin even raced in New York is a tribute to the power of attorneys. Only a few weeks ago it looked as though the legal entanglement minority owners Shirley Cunningham and William Gallion were in was going to prevent the horse from racing in New York because the owner’s license of Cunningham had expired and the New York State Racing and Wagering Board said it would not resissue the license because it would not be in the best interests of racing. Cunningham and Gallion were on trial at the time on a wire fraud charge related to their legal fees in a class-action lawsuit involving the diet drug Fen-Phen. Attorneys for Jess Jackson, Curlin’s majority owner, fought to turn over the Gallion-Cunningham ownership to a court-appointed receiver, and an attorney for the people in the class-action suit who were allegedly gouged wanted Curlin sold in a public auction.

Gallion and Cunningham are to be retried (with a different judge presiding over the case) after their first trial ended with a hung jury and a mistrial. Jackson’s attorneys won this round and were able to race Curlin in New York.

But the legal entanglement won’t be over until the fat lady involved in the Fen-Phen case sings. Curlin will probably have little babies running around by then.

THE PAULICK REPORT’s anonymous news tip line got word that some past-post betting took place at Tampa Bay Downs on a race from Philadelphia Park June 28, and we had an exclusive report on that incident  last Monday. Our friends at the Thoroughbred Times did a quick rewrite of the story later that day, which didn’t go down too well with us. A Paulick Report follow-up focused on the two leading industry trade publications, including Bloodhorse, where I served for 15 years, touching on the cozy relationship those magazines traditionally have with the advertising community, which frequently wield their considerable clout to alter editorial coverage. The article was not meant to categorize Frank Angst, the Thoroughbred Times author who rewrote the Paulick Report story without attribution, as a bad reporter. Not giving credit to another publication is how business is done in the trenches of the Thoroughbred trade publications. Angst, in fact, is a very good reporter whose coverage of the wagering side of the industry has been the best in the business.

The most important lesson to take out of the two articles is the fact that the pari-mutuel industry is operating with an antiquated tote system that could rock the integrity of the very core of the business. Past-posting has occurred, and no one can say with absolute certainty that it isn’t happening more frequently than we know.

THE DISTRIBUTION OF BETTING REVENUE among tracks, horseman’s purses and account wagering companies was at the center of the dispute between Ellis Park and the Kentucky Horsemen’s Benevolent and Protective Association that prompted Ron Geary to throw down the gauntlet and threaten to close Ellis Park for good recently. Geary backed off on his threat, opening the western Kentucky track a week late in what can only be termed a victory for horsemen. They also won a victory against Churchill Downs this past week when a simulcast contract was signed between Florida horsemen and Calder. The account wagering dispute still lingers there, as it does in many jurisdictions where the account wagering companies, especially those owned by racetracks, are getting an increasingly bigger share of the pie.

A new organization, the Thoroughbred Horsemen’s Group, is trying to reshape the business model for account wagering, and the Paulick Report profiled how the THG leaders are going about it.

THE NEWLY APPOINTED KENTUCKY HORSE RACING COMMISSION had its first meeting last week, and indications are that it will be full-speed ahead on regulations or a ban on anabolic steroids. Lo and behold, the makeup of the commission shows some diversity of viewpoints, despite the politics that are inherent in this process, and the Paulick Report gave the governor and his close ally Tracy Farmer two thumbs up on most of the appointments.

FINALLY, THE BREEDERS’ CUP BOARD OF MEMBERS AND TRUSTEES held an election on Friday to fill seven spots on its 14-member board of directors. All five board members seeking reelection won, and two open positions were filled by Helen Alexander of Middlebrook Farm and Roy Jackson of Lael Stables, which raced Barbaro. 

I’ll have more on the Breeders’ Cup election in tomorrow’s Paulick Report post.

By Ray Paulick

Copyright ©2008, The Paulick Report

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