Posts Tagged ‘Maryland Jockey Club’

By Ray Paulick
If anyone can explain the confusing situation in Maryland regarding slot machine revenue to horsemen and the future ownership of the Maryland Jockey Club racetracks—Pimlico and Laurel Park, owned by Frank Stronach’s bankrupt Magna Entertainment Corporation—I figure it’s Richard J. Hoffberger. A longtime owner/breeder and operator of the equine specialist Hoffberger Insurance Group, Hoffberger has been president of the Maryland Thoroughbred Horsemen’s Association since the group’s formation in 1987.

The Paulick Report caught up with Hoffberger on the road this week somewhere between Baltimore and Philadelphia Park to get an update on the challenging circumstances the Maryland racing and breeding industry is facing, with increasing competition from slots-rich states all around: Delaware, Pennsylvania and West Virginia.

What is the general feeling of Maryland horsemen right now?
Certainly there is a feeling of why didn’t we do this a long time ago? Fifteen years ago I stood at a podium talking to the press and introducing the concept of slots at Maryland racetracks. We said we would send $100 million to $150 million in tax revenue to the state each year and help save the Maryland horse industry. Using the conservative figure of $100 million a year, that was $1.6 billion ago. The state needs the money and the horse industry is in dire straits.

It’s typical political wrangling and it’s happening in too many states on too many issues. I don’t think anybody in today’s world would argue health care doesn’t need reform, but how do you do it? Nobody has really argued that slots at the racetracks is a bad idea, but how to you do it? It’s not just us: Kentucky, New York and some other states are going through the same thing. There is definitely a feeling of frustration.

Does the Maryland THA have a preference among the six groups eligible to bid on the Maryland Jockey Club tracks in the bankruptcy auction that’s been delayed several times and is now scheduled for March 25?
We hope a scenario exists where there can be slots at Laurel. We’ve always wanted slots at the racetrack. Our philosophy and desires are unchanged. We want somebody who wants to run races. We are in the racing business and we want somebody who wants to run races. We never contemplated slots would not be at the racetrack (the Arundel County Council approved a plan putting slots at the Arundel Mills Mall and not at nearby Laurel Park). If slots are at the track, they would be required to run 220 days of live racing a year, or less with agreement of the horsemen. But if there are no slots at the track, that provision doesn’t apply.

What is happening with slot machines throughout the state, and in particular Anne Arundel County, where there’s a petition drive to overturn the council decision?
The way it works in Maryland, slots revenue to the horse industry is not location specific. Two locations, in Cecil County and Ocean Downs, will probably be the first of the five specific locations approved for slots to open. The split going to purses is the same irrespective of location. The problem is if the racetrack operator can’t make any money, we could have the scenario of cash available for purses but not have any place to run. That’s the big fear.

Theoretically, higher purses attract better horses and create better wagering opportunities, driving up handle. Could that apply in Maryland if the tracks don’t get slots?
Throughout the U.S. in the last 20 years we haven’t found a scenario where tracks can compete favorably with slot machines. The biggest example is what happened in Illinois when (Richard) Duchossois spent all that money to rebuild Arlington Park and is struggling because of the riverboat competition and actually closed down for a while.

So what’s up with the petition drive to overturn the county commission’s zoning approval for slots at the Arundel Mills Mall?
The law in Anne Arundel County not specific to slots says if the zoning board, the county commission, passes a zoning law, then the citizens have the right to overturn the zoning approval with a petition signed by 19,500 people within 40 days of the zoning regulation being signed into law. It then it goes to a public referendum. Approval of slot machines is predicated on zoning approval. When Arundel Mills got zoning approval, there was a move afoot to overturn the ruling. Enough signatures appear to have been gathered; approximately 40,000 have been submitted though not yet approved. Any referendum would be in November.

If the zoning decision is reversed in Anne Arundel County, the whole bid process starts again, and somebody else has to apply for zoning. It’s back to square one.

What impact does the Anne Arundel situation have on the value of the Maryland Jockey Club tracks and the potential auction?
Obviously if the potential for slots existed, assuming that Arundel Mills gets knocked out, then the possibility exists for them to go back to Laurel. You don’t have to be an economist to see the value of the property goes up. It’s a gamble. But every business is a gamble.

When horsemen do get benefits from slots revenue, how much of a difference could it make to purses?
Assuming the Baltimore City and Anne Arundel County locations are up, we could be looking, by the time the machines are mature, at $70 million to purses each year. That’s the maximum. We could be looking at $100 million a year in total purses in Maryland.

What do you think is going to happen to Pimlico and the Preakness?
I think they’ll stay. Pimlico and the Preakness is a money maker. If you won Pimlico in a poker game this afternoon, you’d be the happiest guy in the horse business.

Have the delays and uncertainty damaged Maryland’s breeding industry beyond repair, or can it bounce back?
Look at what happened in Pennsylvania. That came on pretty quick. Can we bounce back? Yeah. Have horse will travel. We tell politicians it’s very easy to put horses on a van. We talk about the Baltimore Colts packing up everything in a moving van and leaving in the middle of the night. The difference is, in the horse industry, you can ship five mares a day, and in 100 days you’ve lost 500 mares. Your breeding industry is dead.

The key in Maryland, everybody in the horse industry wants to see what happens with the auction of the tracks. Is it going to get delayed again? Magna, in bankruptcy, has been running races, which is good. We’ll see who buys the tracks. There’s six groups putting in proposals, which is kind of like nominating for a stakes. Even if you won the lottery this afternoon you couldn’t become a bidder. Penn Gaming is a potential bidder. Who knows what they want to do. Cordish (which won the Arundel Mills Mall zoning approval for slots) is a bidder, and MID (Stronach’s MI Developments, which struck a deal in bankruptcy court to keep Santa Anita Park, Gulfstream Park, and Golden Gate Fields) is in there. It’s anybody’s guess, and I don’t even think the people bidding know how it’s going to end up. All those players say they are in it to get the job done.

Copyright © 2010, The Paulick Report

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Attorneys for Magna Entertainment have struck a deal in U.S.  bankruptcy court with unsecured creditors that will allow Frank Stronach to maintain control of Santa Anita Park, Gulfstream Park and Golden Gate Fields and the account wagering company Xpressbet.com and the Amtote totalizator company, Reuters and Bloomberg have reported.

After you’ve read the stories,feel free to return to the Paulick Report and comment on this latest development regarding Stronach and his affiliated companies. — Ray Paulick

A bill proposed by Democrat Frank Turner would reduce the percentage of proceeds set aside for slots to go to purses from 5.5% to 2%, capping supplements at $50 million.

Of course, this deceit would be easier to take if it were going to a great cause, but instead it is just to increase the Maryland lottery’s share for running the VLTs. Certainly, the lottery deserves compensation for its duties in this matter but that money is already built into the legislation that has already passed. Why would Turner be looking for more money to go in that direction?

Click here for the full article

Then come back to the Paulick Report and let us know what you think.

- Bradford Cummings

According to the Baltimore Sun, a Delaware bankruptcy judge on Tuesday agreed to postpone Magna Entertainment Corp’s sale of two horse racing tracks in Maryland and rejected a bid by the former track owners to lock up slot machine gambling rights at one site.

Click here for the Baltimore Sun article

Then come back to the Paulick Report and let us know what you think.

After last year’s approval for a 4,750 slot machine parlor at Arundel Mills Mall by the Arundel County Council, an anti-slot coalition is working to find 19,000 signatures for a petition to stop the development. This is certainly par for the course and a completely expected next step in this saga. However, the fact that the Maryland Jockey Club has gotten involved with helping this petition drive makes things a whole lot more interesting.

Is this "the enemy of my enemy is my friend" move on the part of the Maryland Jockey Club a well calculated strategy or a short-sighted reaction that will have negative consequences in the future?

Click here to read the Baltimore Sun article

Then come back to the Paulick Report and let us know what you think.

- Bradford Cummings

After last night’s Arundel County council meeting, slot machines have been approved at the Arundel Mills mall. With many voters feeling hoodwinked and the racing industry understandably upset, Tom Chuckas, president of the Maryland Jockey Club, called this ‘a sad night for Maryland racing’.

But Chuckas is not giving up, joining forces with Stop Slots at Arundel Mills in an effort to gather enough signatures to halt the zoning bill and put the issue before voters next year.

Read the full story here and then come back to the Paulick Report and let us know what you think.

- Bradford Cummings

By Bradford Cummings

Imagine a Christmas where Walmart was not allowed to run $10 DVD player sales out of fear someone would be trampled. How about attending a Poison concert at Madison Square Garden unplugged due to concern of noise pollution? Or what if Major League Baseball used nerf balls so errant objects wouldn’t hurt fans? Those might be ideas to spring out of the minds of Magna Entertainment or Maryland Jockey Club executives.

Like a Catholic picnic without the gambling, this year’s infield experience was a complete flop by past standards after track officials adopted a new rule banning fans from bringing in their own beer. In years past, many of the infield denizens brought in as many cases of beer as they could carry. With estimates from regulars ranging between 10-25% of the usual Preakness crowd, it seems even harder to calculate the exponential difference in enthusiasm and, well, drunkedness. This certainly has its downside for the average $50 a ticket fan, but an orderly and underplayed infield would at least be good for law enforcement, right? You might be surprised.

“I grew up right down the street,” a Baltimore Fire Fighter named Dan told the Paulick Report. “Even as a kid, I remember the excitement of the Preakness. It was something you looked forward to all year. This is just sad.”

He was sitting on his bike with four other co-workers, all slouched in stances more likely to knock back a couple donuts than to help resuscitate a passed out drunk. Asked how many obviously inebriated people they saw by 2:30 in the afternoon, Dan and another fire fighter separately claimed one, caught each other’s eye and concluded they both dealt with the same guy. “It’s just not the same without the beer.” Another chimed in enthusiastically, “There ain’t no tits,” a reference to the many female flashers who partied hard in years past.

But surely they were glad no one was getting hurt this year. After all, Pimlico wouldn’t make these sorts of changes without concern for the average fan’s well being. Guess again.

“It’s not like people were dying out here,” explained fireman Dan. “The most common injury was a laceration on a guy’s index finger. It didn’t get much worse than that.” As Dan described, an infielder would be making his way through a beer, get the impulse to throw it in the air and get his finger caught in the hole.  Stupid? Yes. Tradition changer? Probably not.

Then why did they make this transformation? Our man Dan had a theory. “This is a sign they want to move the Preakness.” Wait! Stop the presses! Does our unassuming fire fighter friend have a connection with the Maryland Jockey Club that we don’t have? Although we started sweating like a kid whose best friend got an X-Box 360 before he did, the odds are significantly in our favor. But this sort of conspiracy theory, especially coming from law enforcement, doesn’t bode well for the good will not being created by the second leg of the Triple Crown.

If Baltimore’s finest were against this move to clean up the infield, surely the fans were at least skeptical. Wrong once more. We found Matt, an Orioles fan and Jager bomb connoisseur, about to throw a drink down the hatch.

“I actually kind of like it,” said our new pal. “When I was in my early 20’s, I got into the party. But now that I’m a little bit older (31), I find myself enjoying the calmer atmosphere. I think this is good for the fans.” Of course, he’s an Orioles fan so his perspective might have been a little off.

So, attendance is definitely down, no doubt. But there still had to be a party somewhere and gosh darn it, we were going to smell it out. With no one in our way, we walked quickly through the “crowd” and towards the bandstand. Surely, there were half-naked women and out of control 20-somethings as far as the eye could see. Once again, we found nothing more than a civil group of respectable citizens sipping $3.50 beers in plastic cups and being exceedingly polite to each other. There were even middle school and high school kids with their ZZ Top-loving parents in tow speckled through the gathering.

But finally, we found it, a tent with the familiar noise of frat guys just inches away from doing something stupid enough to break their bones. We hurried over to catch something nefarious, something to redeem this once rowdy ritual. Something like this video.

And we did find something like it, a video game version of the infamous port a potty beer run. And true to form, no one was playing. Did the video game version get any play throughout the day? “Not much,” the attendant said. Clearly, he was the only person more bored than law enforcement officers.

Done correctly, a move toward extra security is a good thing, effectively threading the needle between fun and safety. But at Pimlico this year, it appears the needle got stuck in their hand. Fortunately, I think we know a fire fighter who can help.

By Ray Paulick

How often do you have a guilt-free chance to get sloppy drunk and chow down on an  honest to goodness Maryland breakfast of fried chicken, biscuits and gravy, and scrambled eggs? At least once a year if you come to the Alibi Breakfast that is part of the Preakness tradition at Pimlico Race Course in Baltimore.

(Actually, I’m not sure how many people are drinking the Black-Eyed Susan signature drink. It seems more of those in attendance are dumping out the souvenir glass contents in the nearby bathroom sink and saving the glass to take home.)

Legend has it that the breakfast began at Old Hilltop in the late 1930s when trainers and other horsemen would gather to shoot the bull about the chances of their horses in the upcoming Preakness. It’s grown to be a major media event in the clubhouse of the rickety racetrack. Trainers of most Preakness horses show up to be interviewed, but the concept is to give them a chance to make an excuse ahead of time in case their horse loses.  It’s also an opportunity for the Maryland Jockey Club to honor members of the media for their contributions. This year’s winners are Tom Pedulla of USA Today, recipient of the David F. Woods Memorial Award for best Preakness story of 2008; Old Hilltop Awards  for longstanding coverage of the sport with excellence to Jeannine Edwards of ESPN and Bob Fortus of the New Orleans Times-Picayune; and the Jerry Frutkoff Preakness Photography Award to Rob Carr of the Associated Press.

The late, great Jim McKay, an icon of sports broadcasting and one of the greatest all-time supporters of the Maryland horse industry, used to host the event. Then along came Chris Lincoln, the longtime voice of horse racing on ESPN. The duties this year were handled by local broadcasters Scott Garceau and Keith Mills, who frankly had a hard time filling the big shoes of their predecessors.

The live blog begins shortly….

10:15 a.m. … This could be better than expected. One of the hosts said their job was to keep this from becoming the Alibi Lunch. The invocation used to be about 30 minutes long, but this year’s blessing given by Reverand Monsignor Robert J. Jaskot was quick and to the point. Bless the horses and those around them.

Tom Pedulla’s award winning story focused on Kent Desormeaux and his son Jacob, who suffers from Usher syndrome that cost him his hearing at birth and is taking away his sight. Very touching acceptance speech by a gracious man who asked that we all keep Jacob in our prayers. These guys are going to have me in tears pretty soon.

Bob Fortus said as a racing fan all he ever wanted was to have his ticket paid for to come to such events as the Preakness and to win an award was just gravy. Groovy. 

As for Jeannine Edwards, I’m thankful for the work she’s done in both horseracing and college basketball for ESPN. Her halftime interviews with former University of Kentucky coach Billy GIllispie were classic, and his insulting were a sign that he was a bad fit for the program. When the UK program comes rolling back under John Calipari, we’ll have Jeannine in part to thank!

10:25 a.m. … On to the interviews of the trainers and owners. Kentucky Derby winner Mine That Bird is up first. Trainer Chip Woolley called the last two weeks a whirlwind, saying he’s gotten a lot of phone calls from many of the unsung trainers in the business. "He’s a real patient rider and has great instincts," Woolley said when asked about the change in riders from Calvin Borel to Mike Smith.  Woolley thought the police escort given to the van bringing Mine That Bird was pretty cool. "Last time the police were after me I went to jail," said Woolley. Co-owner Mark Allen (pictured left), who hatched a short-lived plan to keep Rachel Alexandra out of the Preakness and appropriately wore his black cowboy hat, did his talking before the breakfast as he was a popular guest of local television crews.

10:30 a.m. … Bob Baffert, trainer of Pioneerof the Nile, was welcomed back to the Preakness after an extended absence and then asked about being elected to the Hall of Fame this year. Baffert said he was happy it happened while both of his parents were still with him. He said he thought he was going to win this year’s Derby until Mine That Bird rallied from last to win in a romp. "I’d heard stories that having a bird crap on you is good luck, and said owner Ahmed Zayat had a bird make a mess on his glasses in Louisville early Derby week.  "But I think having two birds crap on you (Mine That Bird being the other)" wasn’t so lucky, Baffert said.  Baffert said part of him was happy Rachel Alexandra was in the race and part of him wasn’t.

Trainer D. Wayne Lukas asks Baffert "what part of you wants (Rachel Alexandra) in the race?" Lukas claims Marylou Whitney’s Luv Gov is named after the disgraced New York governor "Ed Spitzer." Wayne doesn’t get off the sports pages much, I’m afraid. "We don’t have any grandiose plans here," he said, referring to his two 50-1 shots.He said he was going to seek advice from the Mine That Bird connections, who won the Derby at 50-1.

10:40 a.m. … David Hawkes, trainer of Big Drama, said his colt got "real comfortable right away" after being the first Preakness starter on the scene. He said the presence of Rachel Alexandra makes the race "real tough." Blinkers are coming off Big Drama, who is expected to be the speed of the race.

Vic Carlson, Musket Man’s co-owner said "we’ll probably be betting him to show," since he’s never been worse than third in seven starts. Carlson said Musket Man will be vanning to Pimlico the day of the Preakness from Monmouth Park.  He said he got a good trip the first half of the Derby, in which he finished third, but in the Preakness he hopes "Pioneerof the Nile will stay in his own lane" down the stretch. Apparently, Eibar Coa considered claiming foul against Garrett Gomez, rider of Pioneerof the Nile, for interference in the stretch of the Derby, but the race was made official before he could.

Larry Jones: "We just glued him back together," he said of Friesan Fire’s cuts and scrapes suffered in the Derby. How about his trip, he was asked. "Well, it wasn’t what we were looking for," though he said some of the problems were "self inflicted. We just hope the other horses will leave him alone." Asked about the speed of the race, Jones said, "I’ll bet David wishes he could put those blinkers back on.(Big Drama) … The field is very tough, but that’s what the Triple Crown is supposed to be about." What about the retirement talk? "I don’t get (sentimental). If this horse runs like he did in the Kentucky Derby, that (retirement) may come on Sunday."

10:45 a.m. …Trainer Al Stall is starting his first Triple Crown runner in Terrain. Nice prank by the emcees to introduce him as Art Stall. (Except I don’t think they were kidding.) Al is happy to be here. We’ll check in with him Saturday night to see if he still feels that way.

10:50 a.m. … They got Gary Stute’s name right as the trainer of Papa Clem, then asked him where he was when his father Mel won the Preakness 23 years ago with Snow Chief. "I was standing right next to him, and four strides before the wire, I said ‘congratulations’ to him," Stute recalled. He got the meanest look from his dad he ever saw, Gary said, in reference to the old tale about never giving someone a "you got it" until the horses cross the wire. "Once he passed the finish he let out a big smile," Stute said of his father. Both of Gary Stute’s parents will be in attendance for hte Preakness. Stute mentioned that he won’t give any riding instructions to Rafael Bejarano.

Tom McCarthy, owner and trainer of General Quarters, has been around the racetrack a long time and said it was a tough thing to tell his wife and kids so many times that he couldn’t be with them on a Saturday because he had a horse running. They didn’t know much about racing, he said, adding he "made up new words" to explain some of the losses his horses suffered. Talking about the Derby, McCarthy wasn’t happy with the messy, wet racetrack on Derby day and said he likes the sandier strip at Pimlico. Referring to Mine That Bird’s stretch run along the rail, McCarthy said, "He was flying while we were swimming."

10:55 a.m. … Don Lucarelli, co-owner of Take the Points, apparently is a sports gambler, saying he "takes tthe points" when betting on games. He likes longshots, which Take the Points will be, as he’s 30-1 on the morning line. Take the Points is vanning in on Saturday morning, from Belmont Park. Take the Points is adding blinkers, Lucarelli said, on the advice of Alex Solis, who rode the colt to a fourth place finish in the Santa Anita Derby in his last start in April.

11:00 a.m. … Scott Blasi wonders why he’s doing the interviews as he had to do with Curlin so many times "because Steve (Asmussen) misses his plane." What about the 13 post for Rachel Alexandra? "I talked about it with Steve and we think it’s a great post. We just hope Calvin doesn’t get confused about the outside rail and get too close to it." Borel loves riding the rail, but it’s the inside rail he takes. "Calvin knows more about her than anybody. He was a big part of her development at Hot Springs (Oaklawn Park) and knows more about her than any of us. We’re just excited to be running her off (former trainer) Hal Wiggins’ training."

That’s a wrap, from what in my memory was the fastest Alibi Breakfast in recent history.