Posts Tagged ‘richard santulli’

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. 

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. 

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 Jackson 
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.”

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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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. 

Copyright © 2009, The Paulick Report

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By Ray Paulick
The 25 candidates for the 13 open positions on the Breeders’ Cup Board of Members and Trustees were asked by the Paulick Report last week to respond to six questions about themselves, their priorities and recommendations for the organization, and their thoughts on Breeders’ Cup governance issues.

Click here to read or print out a PDF document with all the responses (UPDATED JUNE 3), which are listed alphabetically.

Additionally, click here to access the biographies supplied to the Breeders’ Cup by each of the candidates. Nominators who have not received a customer number and passcode with voting instructions should e-mail the Breeders’ Cup nominations department or call (859) 514-9423.

Do you know an individual or organization who you think we should consider for an upcoming “Good News Friday” feature? Then please e-mail info@paulickreport.com with the name of the individual or organization and a brief description of why you think they should be featured. Additionally, we’d like to thank Rob Whiteley and Liberation Farm for encouraging us to bring to light some of the industry’s positive stories and for sponsoring this exclusive Paulick Report feature.

By Ray Paulick
Good news doesn’t always make us feel good. To me, that’s the story of the Permanently Disabled Jockeys Fund, a 501(c)3 charity that has the thankless task of providing financial assistance to help former jockeys cope with the realities of lives too often spent in wheelchairs. It’s an organization doing exceptionally important work, and like many other worthy causes it struggles to get the funding it needs.

That there is even a Fund for permanently disabled riders is almost a miracle, given the turmoil the Jockeys’ Guild went through under the disastrous leadership of Wayne Gertmenian, whose 2001-2005 reign of terror left the organization teetering on the brink of bankruptcy, and its Disabled Jockeys Fund depleted. Gertmenian was removed as president in November 2005, just a month after a Congressional hearing on the Guild uncovered massive problems. The Guild eventually was forced into bankruptcy.

Racing executives like Steve Sexton of Churchill Downs Inc. and Don Amos, then with Magna Entertainment, helped lead the charge to start a new Fund, and in May 2006 the Permanently Disabled Jockeys Fund was created as part of NTRA Charities. One month later, with seed money from Churchill Downs Inc., Magna and other tracks, it was able to begin offering financial assistance to permanently disabled riders in need.

LaSala said many racetracks have really stepped up to help raise money for the Permanently Disabled Jockeys Fund. Horsemen’s organizations have not been as supportive, though individuals in the ownership ranks, including Richard Santulli, chairman of NetJets, Bill Casner of WinStar Farm, Barbaro owners Roy and Gretchen Jackson, and Michael Bello, a California-based owner, have made significant contributions. In 2008, thanks to Santulli and Casner, the Fund raised $500,000 during the Triple Crown, which amounts to more than half of the Fund’s $800,000 annual operating budget. Santulli and Casner again kicked in major contributions to the Fund at this year’s Kentucky Derby.

“Jockeys have the most hazardous occupation of any professional athlete, and I feel are greatly unappreciated,” said Casner, the former chairman of the Thoroughbred Owners and Breeders Association and a self-described “ex-gallop boy that got on about 25,000 of those beasts over 16 years as a young racetracker,” one who “had my share of hitting the ground and having several flip over on me …but for the grace of God."

“There are around 1,500 licensed professional jockeys,” Casner added, “with most of them struggling with weight and making a living. They put their lives and bodies at risk every time they get on one of our horses and most will deal with a plethora of injuries over a career. If they are lucky they will walk away and not have to deal with paralysis. Exercise riders and backstretch help should also be included in this group. While they do not experience the injury opportunities that race riders do, they are still subject to the same events. It is only right that we as an industry work with the jockeys to help them help themselves as well as other backside employees. I comment Richard Santulli, as well as the riders, for taking the leadership on this important charitable endeavor over the last two Triple Crowns.”

Riders have been directly involved in some of the creative fundraising that’s been done for the Permanently Disabled Jockeys Fund. At Keeneland this spring, “Riders Up!” a karaoke competition involving many current and past jockeys, was the highlight of a very popular dinner that raised $50,000 for the Fund.

Earlier, in Hot Springs, Ark., restaurateur Mike Loy provided free dinners at his popular KJ’s Grill and racing fans paid $100 each to dine and meet some of their favorite jockeys, raising another $17,000 for the Fund. A similar event, “Dining With the Dynasties,” will be held at Arlington Park Aug. 7, the day before the Arlington Million, thanks to Arlington boss Richard Duchossois and track president Roy Arnold, who is now a member of the Fund’s board of directors. Retired Hall of Fame jockeys like Pat Day and Gary Stevens, along with other current and former riders, including some of those who benefit from the Permanently Disabled Jockeys Fund, are expected to participate at the Arlington event.

Speaking of Pat Day, there is good news about him and Hall of Famer Jerry Bailey, two former Jockeys’ Guild presidents who resigned from the organization when the former manager, John Giovanni, was forced out and Gertmenian was brought in. Now that the Guild has regained its credibility and is on the road to financial recovery under the leadership of Terry Meyocks and a newly configured board, Bailey and Day have rejoined the organization in a show of support. Meyocks said a number of other current riders who had quit the Guild during the Gertmenian era have also come back into the fold.

Earlier this year, the Permanently Disabled Jockeys Fund became a standalone 501(c)3 charity, and it is no longer part of NTRA Charities. It continues to struggle for its funding. “We need the support of the entire industry and all of its partners,” LaSala said.

Please contact the Fund if you would like to help. Its web site will have an online donation link in the near future. In the meantime, you can send donations to the Permanently Disabled Jockeys Fund, P.O. Box 803, Elmhurst, IL 60126. The telephone number is: (630) 595-7660 and fax is (630) 595-7655.

Liberation Farm celebrates the many horsemen and horsewomen who strive each day to make things better for horses and those who work with them.  To learn more about Liberation Farm, click here.

Previous Good News Friday subjects: Father Chris Clay, The Race for Education, Military Appreciation Day at Keeneland, Kentucky Oaks Pink Out for the Susan G. Komen Foundation, Mary Lee-Butte and the Blue Grass Farms Chaplaincy, Mary Jo Pons and the Radio Reading Network, TV Ratings Are Up.

Copyright © 2009, The Paulick Report

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Saratoga typically dominates the racing scene in late July and August, so it was good news for Del Mar that the West Coast track had its opening a week earlier than the Spa this year, putting it in the national spotlight at least for a few days.

And a very good debut  it was, with the largest opening-day crowd in history – despite an increase in parking and admission prices, soaring gasoline prices and a spiraling economy. A stubborn TVG (do they have any friends left in the industry?) continues to make it difficult for fans to wager online, and that factor had to contribute to a 10% drop in handle.

Last year’s problems with the newly installed Polytrack (the afternoon heat softened the wax, making it more like mushytrack) seem to have been corrected, and the race times in the afternoon are several seconds faster than they were in 2007. Just as important, the track is safe – so far. But horseplayers can’t be blamed for holding back a bit on their Del Mar wagers if they’re uncertain about the kind of track they’ll be getting. More closers than front-runners seem to be winning, but the track is playing fair.

Speaking of playing fair (or not), why did the controlling members of the Breeders’ Cup board of members and trustees gang up to keep NetJets founder Richard Santulli off the 14-member operating board of directors in a recent election? Santulli is a highly respected businessman who brings everything to the table you’d think the Breeders’ Cup board needs. Apparently, however, he lacked the one thing the controlling members wanted: a nodding head.

One fellow the controlling board members favor is Terry Finley, the founder and president of West Point Thoroughbreds, a successful racing partnership. The week after Finley was re-elected to the Breeders’ Cup board, the organization teamed up with West Point in a creative promotion  for the popular ESPY Awards on ESPN that gave all the participating celebrities and athletes the opportunity to redeem a free share in a West Point horse and enjoy a free, VIP trip to the Breeders’ Cup championships. West Point in turn would be able to promote the celebrity/athletes as a West Point partner. No matter how innocent the choice of West Point may have been, it’s amazing no one within the Breeders’ Cup saw the potential to read this as another good ol’ boy deal of “we’ll scratch your back if you scratch ours.”

A guest editorial submitted to the Paulick Report by Kentucky Congressman Ed Whitfield is sure to have heads shaking with disagreement in some corners over Whitfield’s proposal to amend the Interstate Horseracing Act of 1978 to address some of the issues the industry is struggling with, including medication. Kentucky’s newly configured racing commission and the California Horse Racing Board took steps this past week to regulate anabolic steroids, and that’s a good thing, but Whitfield’s efforts may be gaining momentum in Congress.

A Paulick Report reader called it typical for the “land of fruits and nuts” when Calilfornia Gov. Arnold Schwarzenegger appointed former actress Bo Derek  to the California Horse Racing Board, but what’s wrong with having someone whose life is largely committed to the protection of animals (horses in particular) on a governmental board that regulates horse racing? We weren’t the only one to call the appointment a “10.”

Interesting that on the same day the Paulick Report was writing about the death of print coverage of horse racing (at least in the Los Angeles Times, the nation’s fourth-largest newspaper that axed its two racing writers) , Jess Jackson was stimulating interest with an online poll asking the public to help him guide Curlin through the rest of his racing career. Sure, it’s a gimmick, but it’s a smart one that got a lot of people talking about racing’s biggest star instead of racing’s biggest problems. Within a couple of days, more than 10,000 people had voted in the poll. Go here  to vote or see the current results of the poll.

Anyone else wondering what’s up at the Downs? Churchill Downs, the publicly traded company cut a couple of dozen jobs  this past week in the wake of a falling share price. CEO Bob Evans hasn’t pulled a rabbit out of his hat yet, and neither has the team of techies he put together in California’s Silicon Valley to develop new products and ideas. Confrontations with horsemen over distribution of account wagering revenue haven’t been productive to Churchill Downs or the industry. 

By Ray Paulick

Copyright ©2008, The Paulick Report

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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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