Posts Tagged ‘mike gill’

GILL’S GANG OF MISFITS

Tuesday, February 2nd, 2010

By Ray Paulick
It was no dream team that Michael Gill assembled to run his racing operation in Pennsylvania over the past year, at both his farm in Oxford, Pa., and at Penn National race course near the state capital of Harrisburg. In fact, the cast of felons and rule breakers working for Gill has proven to be a regulatory nightmare for the Pennsylvania State Horse Racing Commission charged with policing the sport in the Keystone State.

In the wake of the highly publicized decision Jan. 23 by Penn National jockeys to boycott races with Gill-owned runners, track management has asked the moribund racing commission to investigate allegations by the jockeys that horses prepared by Gill’s two principal trainers present a safety risk and have suffered a high number of catastrophic racing injuries. But, by law, there’s only so much the racing commission can do, even if the commissioners and top executives took their jobs seriously.

The commission can conduct post-mortem examinations on the horses that died while racing at Penn National. It can search the barn and interview employees at the track where Gill’s horses were, until the Jan. 23 incident, trained by Darrel Delahoussaye. But it cannot conduct any kind of investigation at Gill’s Elk Creek Ranch, where as many as 140 racehorses have been stabled and trained since Gill, a New Hampshire-based mortgage executive, reemerged as a racehorse owner in the second half of 2008 after a two-year hiatus. The commission, a division of the state’s Department of Agriculture, has no jurisdiction over “private property.”

Elk Creek Ranch is centrally located in Chester County’s horse country in southeast Pennsylvania, roughly 90 minutes from Philadelphia Park, Penn National, Laurel and Charles Town racetracks. It was purchased by Gill out of necessity earlier this decade when an increasing number of tracks opted not to give stalls to Gill or his trainers because of his aggressive claiming tactics. Gill unsuccessfully tried selling the property when he got out of racing in 2006, the year he received an Eclipse Award as the outstanding North American owner. The award recognized the 2005 racing year, the third consecutive year Gill led all North American owners by races and money won. He added a fourth title in 2009, when his stable piled up $6,670,490 in earnings after his horses won 370 of 2,247 starts.

But the 54-year-old Gill has done more than accumulate wins and money from horse racing purses. To go along with his own checkered past in the sport, Gill has assembled a team of trainers, veterinarians and affiliated bloodstock agents that have shown an almost habitual disregard for the rules of racing.

Here are some examples, based on law enforcement records and rulings from the Association of Racing Commissioners International:

-Gill, in the 1980s, was suspended or ineligible for licensing in Massachusetts and New Hampshire on different occasions for financial obligations. He decided to train his own horses in 1995 and was nailed for having injectable drugs, syringes and needles during a barn raid at Rockingham Park. The New Hampshire Racing Commission suspended Gill for three years. When he returned, he left the training to others. Gill’s RCI rulings.

-Anthony (Tony) Adamo, Gill’s 38-year-old racing manager and one of his trainers, compiled 11 separate violations in 2009, with fines of $3,300—mostly for entering ineligible horses in various races. Adamo, however, has no suspensions or major medication violations on his record during or prior to his association with Gill. Adamo’s RCI rulings.

-Trainer Darrel Delahoussaye, a 47-year-old trainer fired by Gill after Laughing Moon’s breakdown on Jan. 23 became the catalyst for the jockeys’ revolt at Penn National, paid at least $1,500 in fines following eight separate rulings in 2009 against him by the Pennsylvania State Horse Racing Commission.

Delahoussaye had his license revoked by the Louisiana Racing Commission in 1984 following a felony conviction and did not become eligible for reinstatement until 1993. Since then, he has been suspended twice for possession of needles, syringes and injectable drugs—once in Ohio in 1998 and once in Michigan in 2000.

The Ohio Racing Commission also suspended Delahoussaye for one year in 1998 after he was ruled to have “mistreated, abused or engaged in an act of cruelty to a horse; used appliance other than whip for the purpose of stimulating speed.” The appliance was described in court documents as a “wooden stick with stripped electrical cords stuck to it.” A veterinarian and two assistants testified seeing a horse at Beulah Park “jump two or three feet in the air” and then witnessed Delahoussaye unplugging an electrical cord from the wall. Delahoussaye appealed the case but ultimately lost. Delahoussaye’s RCI rulings.

-Cole Norman, 41, hired by Gill to train horses stabled at Elk Creek Ranch last summer, served nine months in jail for negligent homicide, a felony, and was released in January 2009. On Feb. 5, 2007, near Hot Springs, Ark., Norman drove head-on into a car driven by 86-year-old Virginia Heath,killing the woman who was a cousin of former President Bill Clinton. Norman, six-time leading trainer at Oaklawn Park, was found to be under the influence of prescription drugs, to which his attorney said he was battling addiction. Prosecutors said seven different drugs were found in Norman’s system at the time of the crash. Later that year while out on bail, Norman was again arrested for DUI and drug possession after reportedly sideswiping a row of mailboxes in Louisiana.

But Norman has also compiled a prodigious number of medication violations as a horse trainer. Since 1996, the son of the late trainer Gene Norman, has been assessed fines or suspensions in at least 30 cases involving medication violations in Louisiana, Arkansas, Texas and Oklahoma. In a rare foray to California in 2005, Cole was accused of milkshaking the horse Top Commander in the Grade 1 Bing Crosby Handicap at Del Mar. According to the California Horse Racing Board’s equine medical director, Dr. Rick Arthur, the total carbon dioxide level (39 millimoles per liter) found in Top Commander was the highest recorded of any horse in the 10 months milkshake testing had been conducted. “At 37, there can be some question (of how the TCO2 reached that level),” said Arthur, “but at 39 no one will argue with you that the horse was milkshaked.” Norman also had two TCO2/milkshake violations in Louisiana in 2006. Other rulings on his RCI rapsheet include possession of unlabeled medication in his tackroom and providing Oaklawn Park’s official clocker with incorrect names of horses working out. Norman’s RCI rulings.

-Veterinarian Kevin L. Brophy, 55, bases his practice at Penn National, but according to Tony Adamo is also Elk Creek Ranch’s principal vet. Brophy has 13 rulings in the RCI database, most recently a $500 fine from the Pennsylvania State Horse Racing Commission for submitting “an inaccurate vet treatment report” for a Gill horse named Monsoor on Oct. 23, the night the son of Mt. Livermore won a $4,000 claiming race at Penn National. After his next race, a Nov. 11 victory carrying a $5,000 tag, Monsoor pulled up lame and has since been sold by Gill to trainer/bloodstock agent Mark Wedig for $1.

Brophy has been fined a number of times during his career for failure to file complete or accurate veterinarian treatment sheets, and on one occasion in 2004 for “submitting a fraudulent treatment slip.” Brophy’s RCI rulings.

-Veterinarian Louis A. Grasso, who recently started working on horses from Elk Creek Ranch, was the central figure in two criminal cases involving banned medication and has had to surrender his racing license or had it denied in New York and New Jersey. In 1991, the 53-year-old Grasso, primarily a Standardbred practitioner, was convicted of the federal crime of selling anabolic steroids to an undercover agent. Nine years later, on April 11, 2000, the New York-based Grasso was under surveillance in Delaware while visiting a private racing stable and agents with the office of Narcotics and Dangerous Drugs attempted to stop him. A high-speed chase ensued on Delaware’s Highway 13, with Newcastle County police eventually pulling him over. According to a source, a “treasure trove” of prohibited drugs, including blood-doping agents, was found. Grasso pleaded guilty to a misdemeanor charge of resisting arrest and put on probation with the threat that any violations may result in charges involving confiscated drugs.

On the matter of Grasso’s license being reinstated by the New York State Racing and Wagering Board in 2005, a hearing officer ruled against him, saying “undisputed evidence in the case discloses that Dr. Louis A. Grasso has been convicted of serious felony grade crimes and that he has violated the conditions upon which his license was based.” The refusal was based on Grasso’s “experience, character and general fitness” being “inconsistent with the public interest.” Grasso’s RCI rulings.

-Finally, Mark Wedig, a trainer from West Des Moines, Iowa, is listed on bills of sale as the purchaser of a number of Gill horses in December and January—at a cost of $1 each–that were described to the Paulick Report by a one-time Elk Creek Ranch employee as too lame or too slow to compete. Wedig, 54, had his license suspended for five years by the Iowa Racing Commission, from 2002-07, for “conduct detrimental to racing” for forging signatures on claiming slips and lying to stewards investigating the case. The commission said Wedig acted in a “premeditated, corrupt, deceitful and fraudulent” manner that reflected “negatively on the integrity or best interests” of racing. Wedig’s RCI rulings.

DRILLING HORSES INTO THE GROUND
According to an individual at one time employed at Elk Creek Ranch who spoke on the condition of anonymity, Gill’s horses have been “drilled into the ground” since the arrival of Cole Norman as the farm’s trainer last summer. “Cole is set in his ways,” this person said. “He trains the crap out of them. They breeze every seven days (track condition permitting). They tap the joints of the horses, sometimes right after a race, and they tap ‘em every week, again and again and again if they don’t get sound. They are going to the well too many times. You are not supposed to tap a lame horse.”

The Paulick Report checked the references of this Elk Creek Ranch whistleblower, confirming as many of the details provided as possible. We feel confident the information provided is accurate.

Adamo, this individual said, is often the one who does the injections of hyaluronic acid and/or cortisone—a contention Adamo disputes. “Tony only does the upper and lower knee joints and the ankle,” the whistleblower said. “He doesn’t do anything behind. He probably would if he had more experience.”

“That’s why we have vets there,” Adamo said in response to questions about whether he injects horses on the farm. “We’ve given pre-race shots, or if a horse is sick we’ve given Banamine, but that’s as far as I’m going to go.

“I’m at Penn National one day at Philly Park one day,” he continued. “Between me and Cole we’ll go over the horses and give a list to the doc. Hopefully he does everything on that list. But it’s tough to get him there ( to Oxford) every day.”

Adamo defended his record as a trainer as it relates to breakdowns. "I had five breakdowns on all my starts there," Adamo said of Penn National. "I run just as many horses at Philly Park and had one there. I’m not blaming the racetrack, and I’m not justifying it. One is too many."

‘I’M NOT DISCUSSING ANYTHING’
According to the Practice Act of Pennsylvania governing veterinary medicine, animal owners or their employees are exempted from the rules requiring that only licensed veterinarians treat an animal, at least on private property. However, racing regulations strictly prohibit a trainer from injecting a horse or to simply be in possession of needles and syringes on racetrack property.

Norman isn’t currently licensed as a trainer because of his felony conviction and it isn’t clear when he can be reinstated. For the time being, while he is on parole, he is able to train on the farm and send the horses to the track, where they race under Tony Adamo’s name as the trainer listed in the program. The racing commission, because it does not have jurisdiction over the farm, isn’t able to determine whether or not Norman is the one actually training the horses.

The veterinary supplies are said to have been purchased through Kevin Brophy, who declined to comment to the Paulick Report on any aspect of his relationship to Gill’s operation. “I’m not discussing anything,” Brophy said.

Grasso, reached in New York, said he only recently started working on Gill’s horses, adding that it doesn’t bother him that he can’t take his veterinary practice to the racetrack. “I don’t even go for it (his license),” Grasso said. “I’ve got my farm, got a clinic (in Orange County, New York). That’s all I need.”

The horses at Gill’s farm are well-cared for, the Paulick Report informant said. “If you walk in the barns, you wouldn’t say the horses are underfed or neglected. It’s more the medical treatments, the tapping or the training of sore horses. It’s a shame, because it’s a really good group of grooms that take care of the horses.”

That observation was backed up by Gail Emerson, a humane police officer sent in by the Large Animal Protection Society Jan. 29 for a surprise inspection of the Elk Creek Ranch horses after the organization received an anonymous complaint last week. “Everything was perfect,” she told the Paulick Report. “The horses were well fed, with plenty of water. Every horse I went by came to the front of the stall with their ears pricked.”

Yet there have been dozens of horses vanned off the farm to parts unknown in recent months, some of them described by the Elk Creek Ranch whistleblower as “three-legged lame” or with terrible skin or joint infections. “They joke about how these horses are going to the Girl Scouts in Nebraska or to the zoo,” the individual said, the latter a possible reference to the nearby Bravo Packing company in Carney’s Point, N.J., a company that makes food for zoo animals out of horse meat. When another employee complained about the jokes, the employee was told, “At least we’re not selling them at the (killer) sales; they’re going right to the factory.” The Paulick Report has not been presented with any evidence that a large number of Gill’s horses have ended up at a Canadian slaughterhouse or at Bravo Packing.

Mark Wedig, the Iowa trainer who described himself as a “small fry,” was listed as the buyer of a number of horses Gill sold for $1 each in December and January, including Monsoor, Shes a Cure, Cotton King, Sir Ray, Devil’s Squeeze, My Dance Partner, Phantom Regiment, Taxability, Hector the Connector and Rushing Stag.

Wedig told the Paulick Report he sold Cotton King, said to have a badly infected leg, along with “two mares” to a breeder he knew only as “Charles,” a man Wedig said plans to send the horses to Belize in Central America. Someone whose name he couldn’t remember said he wanted to breed Sir Ray to some mares in Iowa. A barrel racer in southwest Iowa got two of the Gill horses from Wedig, who said he didn’t have a name or phone number for her. Wedig said he plans to rehab the rest at the In Front training center near Mountaineer Park in West Virginia, then bring them back to the races.

When asked if he ever drove horses to slaughter plants in Canada, Wedig said: “Never.”

In an interview with the Paulick Report last week, Gill said “all of the horses go to retirement programs” when their racing careers end, though he didn’t specify which programs or where they are located.

“I don’t know if he is naïve, just doesn’t care, or thinks the horses are going to retirement and turns a blind eye,” the Elk Creek Ranch whistleblower said of Gill. “He may be a good businessman with mortgages, but he’s not with horses.”

Copyright © 2010, The Paulick Report

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GILL CENTER OF CONTROVERSY AGAIN

Monday, January 25th, 2010

By Ray Paulick
If only Michael Gill had kept his word in 2006 when he said he was getting out of horse racing after being leading owner in North America by money and races won for three consecutive years. A lot of people would be happier and a number of horses might still be alive.

Gill did get out of racing in 2006, the year after he was inexplicably voted an Eclipse Award as outstanding owner. Unfortunately, he got back in the game late in 2008, and he was back on top again as leading owner by both races and money won in 2009.

But wait, doesn’t horse racing need more owners, not fewer of them? Not if they’re like Mike Gill. Not in my book, at least. Gill claims relentlessly and runs an absurd number of horses: he had 2,235 starts in 2003, 2,885 in 2004, 1,870 in 2005, and 2,247 in 2009. His best year earnings-wise was $10,811,631, an average of $3,748 per start. Many people feel he is using the animals as nothing more than a commodity to get what he wants. His critics, and there are many, say the horses too often pay the ultimate price.

Nothing outstanding about that. For the life of me, I don’t see how anyone ever could have voted to give him an Eclipse Award.

Jockeys at Penn National Race Course apparently took a vote of a different type on Saturday night, allegedly telling track management they would refuse to ride in any more races in which Mike Gill-owned horses were entered. The vote was taken following the fifth race, after third-place finisher Laughing Moon broke down past the wire, causing another horse to also go down. Laughing Moon’s jockey Rickey Frazier escaped injury.

It was the second breakdown of a Gill-owned horse at Penn National in three nights, Melodeeman having suffered a similar catastrophic injury on Thursday night. Melodeeman was trained by Anthony Adamo and Laughing Moon by Darrel Delahoussaye—Gill’s two trainers at Penn National.

There was a lengthy delay between Saturday night’s fifth and sixth races as the jockeys stated their case. Eventually, a Gill horse, Justin M, was scratched from the sixth race, and the remainder of the card was completed without incident. Gill had no other horses entered following the sixth.

“Gill’s horses are breaking down at a race that’s just not normal,” said a Penn National horseman who spoke on the condition of anonymity, “and it’s not the racetrack. The track is safe. The riders did a very honorable thing, finally saying ‘enough is enough,’ and did so at the risk of a backlash from management. The guys said we are not putting our lives in danger, or the horses in danger.”

According to Equibase charts, in just over three months, 14 other horses owned by Gill have either broken down, were pulled up, returned lame, or eased at Penn National. There were nine in October, three in November, one in December and two in January. (The count includes Saturday night’s incident involving Laughing Moon, even though the Equibase chartcaller did not report the horse broke down past the wire.) Most of the horses are running in bottom level claiming races. At Penn National, however, thanks to slot machine revenue, $5,000 claimers can run for as much as $20,000, with $12,000 going to the winner. An owner can make money squeezing a win out of a horse he claimed for $5,000, even if that horse never runs another race.

Chris McErlean, vice president of racing for Penn National Gaming, said he was not at the track on Saturday but got a report on the incident. McErlean said it is his understanding that horses entered by Gill to race later in the week already have been scratched voluntarily by their trainers. “That wasn’t necessarily at our direction,” McErlean said. “No formal actions have been taken.”

McErlean also said the Pennsylvania State Horse Racing Commission is investigating. “They could be looking into Mr. Gill’s horses in particular, but breakdowns in general,” he said. “They also could be looking at certain veterinarians.”

At the beginning of 2010, Penn National has started reviewing all breakdowns, McErlean said, conducting meetings that involve “the trainer and any other interested parties, the track, the racing commission, and our vet. Every horse that breaks down gets a necropsy done, starting at the beginning of this year. This was initiated by Penn National with the cooperation of the racing commission. Every horse that does break down or is involved in a death does get a necropsy done. We are doing this more for information gathering, to see if there is any connecting of the dots. People are concerned about this and we want some answers.”

Many of Gill’s starters are not stabled at Penn National but ship in from his Elk Creek Ranch in Oxford, Pa. While those horses are on private property, neither the racing commission nor Penn National has access to them. When any horses ship in to race and go to the receiving barn, a state or association veterinarian conducts a pre-race inspection. Horses stabled at the track (and Gill is believed to have 40-50 stalls at Penn National) are not routinely given pre-race exams.

Controversy has followed Gill everywhere he’s gone in racing. He’s been denied stalls at some tracks, banned from the entry box at another, and has not been shy about filing lawsuits.

When he failed to win an Eclipse Award in 2003, Gill put out a statement comparing himself to Seabiscuit’s owner, Charles Howard, in an underdog role against the establishment.

“I can’t help but think that the vote was a vote against me, rather than a vote against the accomplishments,” Gill wrote. “And I don’t understand that. We all cheered ‘Seabiscuit’ last year, a movie about hope and the underdog rising from obscurity to challenge racing’s establishment and emerge victorious.”

Unfortunately, for Laughing Moon and numerous other horses that took their last breath while racing for Gill, there is no hope. The best hope is that he leaves the sport again—this time for good.

Efforts to reach Gill were unsuccessful.

Copyright © 2010, The Paulick Report

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AMERICAN GRADED STAKES STANDINGS brought to you by Keeneland: WHO SHOULD OWN THE ECLIPSE?

Thursday, January 7th, 2010

By Ray Paulick
Eclipse Award voters can be unpredictable when it comes to the outstanding owner category. Since there is no definition for the awards, voters can choose between owners whose stables were deep in talent, winning major races throughout the year; those who piled up wins and purses in lower level races with massive operations; or endearing owners with one big horse.

Mr. and Mrs. Eugene Klein in the 1980s, Allen Paulson in the 1990s, and Juddmonte Farms in the current decade represent the stables that competed at the top level with multiple stakes horses. Dan Lasater in the 1970s, John Franks in the ‘80s and ‘90s, and Richard Englander and Mike Gill since 2000 were voted Eclipse Awards by winning a bundle of money and races. Mr. and Mrs. Bertram Firestone (Genuine Risk, 1980), Dotsam Stable (John Henry, 1981), Francis Genter (Unbridled, 1990), Carolyn Hine (Skip Away, 1997), and Lael Stables (Barbaro, 2006) picked up Eclipse Awards as outstanding owner by virtue of one big horse.

The finalists for outstanding owner of 2009 represent two of those three types of stables. Godolphin and Juddmonte were among the leaders in American Graded Stakes victories, while Mr. and Mrs. Jerry Moss raced Horse of the Year finalist Zenyatta (they also campaigned a Grade 2 and Grade 3 winner).

It’s interesting that the Mosses were finalists as the owners of Zenyatta, but not making the top three in balloting was Jess Jackson’s Stonestreet Stable, which owns Zenyatta’s chief rival in Horse of the Year voting, Rachel Alexandra, in partnership with Harold McCormick.

Does that suggest Zenyatta is favored to win Horse of the Year over Rachel Alexandra? I don’t think so. In my opinion, the Mosses are more popular among voters than Jackson, who thumbed his nose at the Breeders’ Cup because it was run on a synthetic track at Santa Anita Park. Zenyatta not only ran in the Breeders’ Cup (admittedly it was at her home track), but took on colts in the Classic and became the first filly or mare to win that race. Earlier in the year, however, Jackson took some calculated risks with his star 3-year-old filly, running her against colts on three occasions, including the Woodward against older horses in her eighth and final start of the year.

Voters failed to make Jackson a finalist in 2007 or 2008, either, when Curlin was voted Horse of the Year. Do I see a trend here?
 
Interestingly, Dolphus Morrison, the breeder of Rachel Alexandra, is a finalist in the outstanding breeder category (along with Frank Stronach’s Adena Springs and Juddmonte Farms), despite her being the only American Graded Stakes winner of 2009 that he bred.

I make Rachel Alexandra a slight favorite to win Horse of the Year over Zenyatta.

Based on numbers, Godolphin should be favored to win the outstanding owner Eclipse. Sheikh Mohammed has won one previous outstanding owner award in 2006, sharing it with Lael Stables after they each received 110 votes.

Of course, I would have made IEAH the favorite to win the 2008 outstanding owner Eclipse Award, but Stronach Stable won by a single vote even though IEAH far outpaced Stronach in American Graded Stakes wins.

Godolphin was represented by nine American Graded Stakes winners of 2009, including six Grade 1 winners. Juddmonte had four American Graded Stakes winners, three of which won Grade 1 events. Juddmonte far outpaced Godolphin by money won ($6,525,818 to $3,768,896), finishing second in the money standings behind Mike Gill, who operates a large claiming stable. Juddmonte had 116 starters in 2009 compared with 67 for Godolphin. Sheikh Mohammed’s Darley Stable earned $4,977,513 in purses from 343 starts, so the combination of Godolphin and Darley won $8.7 million.

There is a scenario for the Mosses to win as outstanding owner. Perhaps the voters who cast their ballot for the owner who had the best year winning big races will be divided between Godolphin and Juddmonte. Those who in the past have supported the owners of one big horse may align themselves behind the Mosses.

Stranger things have happened.



AMERICAN GRADED STAKES STANDINGS brought to you Keeneland: DARLEY AND GODOLPHIN DOMINATION

Thursday, November 5th, 2009

By Ray Paulick
It should come as no surprise that Sheikh Mohammed is the leading owner of American Graded Stakes winners in 2009 through his Darley and Goldophin racing stables. The ruler of Dubai has invested far more money in his international racing and breeding operation than anyone else in the world, and his American stable has performed exceedingly well this year.

Going into the Breeders’ Cup world championships at Santa Anita this weekend, the Sheikh has 17 American Graded Stakes winners this year—nine with Darley and eight with Godolphin. Those horses have won a total of 23 American Graded Stakes races.

The numbers figure to rise this weekend. Godolphin will be represented by 16 runners on the two Breeders’ Cup programs Friday and Saturday, and Darley will have three starters, many of them either morning line favorites or solid contenders.

Godolphin is currently second behind Frank Stronach’s Stronach Stables in lifetime Breeders’ Cup earnings, and he’s almost certain to pass Stronach after this year’s races. Stronach has won $8,492,000 from 17 starters (five winners), and Godolphin has earned $7,818,200 from 39 starters (three winners). Not included in those totals are three additional Breeders’ Cup winners owned or co-owned by Darley and two listed under the ownership of Sheikh Mohammed.

A closer look at the Godolphin/Darley American Graded Stakes winners of 2009 reveals that six of them have won at least one Grade 1 stakes: Flashing, winner of the Test Stakes; Gayego, Ancient Title; Music Note, the Ballerina and Beldame; Pyro, the Forego; Seventh Street, Apple Blossom and Go for Wand Handicaps; and Vineyard Haven, Frank J. De Francis Memorial Dash.

Those six Grade 1 winners equal the total for all American Graded Stakes winners by the current runner-up in the standings, Ahmed Zayat’s Zayat Stables. Three of Zayat’s AGS winners have won a Grade 1 race (Pioneerof the Nile, Thorn Song and Zensational).

If the Darley and Godolphin Stables are combined, Sheikh Mohammed would be the leading owner by money won, according to Equibase (click here for the list), with earnings of just over $7.5 million. However, they are separate stables and are listed separately in the standings, Darley ranking third behind Mike Gill and Zayat Stables and Godolphin 12th.

Let’s hope that Eclipse Award voters are aware that the two stables are both part of Sheikh Mohammed’s racing operation and do more than just cast their ballot for the owner with the most money won. But Eclipse Award voters have made some strange selections for outstanding owner and outstanding breeder in recent years, so Sheikh Mohammed would be no shoo-in if the voting was held today.

But there are a few more American Graded Stakes on the racing calendar, starting this weekend with the Breeders’ Cup. When all the dust settles, I anticipate Darley and Godolphin to have an even more dominating position in the American Graded Stakes standings than they do today.

MONDAY MORNING QUARTERBACK: CHURCHILL VS. HORSEMEN

Monday, September 15th, 2008
Ray Paulick

What in the world is going on inside the Churchill Downs Inc. executive offices? It’s slashed purses at Calder Race Course in South Florida by 17% and whacked almost $1 million from the fall stakes program at its home track in Louisville, Ky. Key management changes have been made at Calder and Fair Grounds in New Orleans, La., and press releases seem to be blaming horsemen for most of the problems.

Investors haven’t been wild about Churchill Downs stock (CHDN), which closed at $46.45 Friday and hasn’t seen $50 a share since May 1. It’s 52-week high, $57.55, was achieved last December.

CEO Bob Evans and the TrackNet Media Group that was formed with Magna Entertainment to broker simulcast deals has refused to talk seriously with the Thoroughbred Horsemen’s Group, which is negotiating account wagering contracts with racetracks on behalf of local horsemen’s groups such as the Kentucky or Florida Horsemen’s Benevolent and Protective Associations. In fact, Churchill has filed anti-trust lawsuits against the organizations. Evans may be hoping that the longer he puts off dealing with the THG, the less resolve the horsemen will have to stick together in attempting to forge a better contract on account wagering.

That strategy doesn’t appear to be working. To the contrary, it looks more like Churchill Downs’ partner in TrackNet Media is bailing. Frank Stronach, the chairman and acting CEO of Magna Entertainment, sent out a press release a couple of weeks ago saying that Magna recognizes the THG as a beneficial national organization and is negotiating with THG.

For too long, horsemen have been losing ground and losing revenue as the percentage of dollars wagered that goes to purses has declined. The growth of simulcasting to non-pari-mutuel entities such as off-shore rebaters and account wagering companies has been at the expense of horsemen. It’s important horsemen understand why the status quo isn’t good enough and why they need to change the simulcast model, something the THG is trying to do.

SPEAKING OF WAGERING, hats off to Bloodhorse editor Dan Liebman for calling out the Jockey Club after it capitulated to Evans and to Churchill Downs’ biggest shareholder, Dick Duchossois, and decided to no longer provide the trade magazine with meet ending pari-mutuel handle figures. Churchill tracks under Evans and Duchossois have said that handle is no longer a meaningful statistic. Oh, really?

The decision by the Jockey Club to no longer provide this key economic indicator was disgraceful, but I wouldn’t hold out any hope the poobahs there will change their mind.

 

NO ONE PREDICTED KEENELAND’S SEPTEMBER YEARLING SALE WOULD BE UP, so it’s not that surprising to see a 13% drop in the gross receipts through the first six sessions of the 15-day marathon. That 13% equates to a $41-million decline in revenue that will not go into the pockets of breeders this year, and that red number only figures to increase as the sale reaches the second half.  The drop in revenue will ripple throughout all kinds of Thoroughbred-related businesses.

The good news from the first four days (Books 1 and 2) was that the median held up fairly well, declining only 10% from $200,000 to $180,000. The home run horses, those selling for a million dollars and up, didn’t materialize as often as they have in recent years, but the middle market was relatively steady. “Most of us survive off the middle,” one breeder told the Paulick Report. “Getting one of the big horses is like hitting the lottery, but it’s not something you really plan on.”

Smart gamblers don’t play the lottery, and intelligent breeders know there are far more people playing in the middle market than at the top. As long as the middle is healthy, so are the breeders. There is just a lot less icing on the cake this year.

Others who are selling throughout the September sale breathed a sigh of relief if their best horses sold well during the first two books out of fear that the bottom of the market may collapse once the sale reaches books five and beyond.

WHO HAS BOUGHT THE MOST HORSES SO FAR IN THE MONTH OF SEPTEMBER? It wasn’t John Ferguson, or Shadwell Estate or the newly formed Legends Racing.  Hint: It wasn’t at the Keeneland September yearling sale.

September’s busiest buyer so far (though not biggest spender) is a fellow named Mike Gill, the 2005 Eclipse Award-winning owner who has been on a claiming binge this month at Philadelphia Park. By our count Gill has claimed at least 30 horses in September at Philadelphia Park alone after similar buying sprees in Maryland and Massachusetts earlier in the year.

You remember Gill, don’t you? He’s the fellow who built a huge claiming operation earlier this decade, bought a training center, won a bunch of claiming races and then publicly complained when he led the nation in wins and earnings in 2003 and 2004 but didn’t get voted an Eclipse Award as outstanding owner.

The whining did him some good. When balloting was conducted for the 2005 racing season, Gill was once again the owner with the most wins and purse money won. This time, in what may be the worst decision in the history of the Eclipse Awards, voters representing the National Turf Writers Association, National Thoroughbred Racing Association and Daily Racing Form gave Gill the award as “outstanding owner.”

Why do I say that it was the worst Eclipse Award decision in history? I’ve got nothing against claiming operations and recognize it is the bread and butter portion of nearly every racing program in the country. However, in my mind, the Eclipse Awards are about excellence, whether it’s horses or people. Sheer numbers, especially at the claiming level, should not be misconstrued as excellence. In the category of outstanding owner, breeder, trainer and jockey, the leading candidates should be judged by how they performed at the top level of the sport, not the bottom level.

Gill, who was recently in the news because of some regulatory problems at his mortgage company, said he was getting out of the horse industry in 2006 when he accepted his Eclipse Award as outstanding owner. Many people had two words for him: good riddance.

“I’m going to miss racing, and I think racing is going to miss me, too,” Gill told Bloodhorse magazine.

Actually, Mike, we didn’t.

THE PHILADELPHIA INQUIRER WON’T BE COVERING GILL’S EXPLOITS since it accepted the early retirement of Turf writer Craig Donnelly only a month after the paper, the nation’s eighth largest, dramatically reduced the space allotted racing in its sports section. At that time, Inquirer editors told the Paulick Report it was keeping Donnelly but obviously they had a change of heart.

Newspapers may be an endangered species in the near future. Turf writers at daily newspapers already are.

Copyright © 2008, The Paulick Report

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