Posts Tagged ‘Thoroughbred Owners and Breeders Association’

As the Paulick Report continues to grow, we will be bringing on more turf writers and industry insiders to share their opinions and perspective on the racing industry across the country and internationally. Longtime turf writer Martha Claussen, currently with SureBet Racing News, will be writing a piece for the Paulick Report once a month opening our readers to the South/Southwest region of the American racing industry.

- Ray Paulick
 

By Martha Claussen
There are few names in the Thoroughbred industry as well known as Bob Bork.

I met up with Bob for lunch this week in Houston. My intent was to interview him for a Paulick Report story on the difficulty of smaller tracks getting a graded stake. We discussed his hard-fought battle to get a grade for Sam Houston Race Park’s Connally Breeders’ Cup Turf in 2005, but soon branched out into so many topics, that I felt compelled to revise my story angle.

Bob came to Texas in 1995 to serve as general manager of Sam Houston Race Park and was  promoted to president in 2002. He brought a solid knowledge of racetrack management, having served as vice president, general manager and chief operating officer of Arlington International in Chicago; vice president and general manager of Philadelphia Park and general manager of Garden State Park in New Jersey. Bork made some major changes to save the Houston Class 1 track, which opened to much fanfare in 1994, and two years later filed for bankruptcy. Houstonians didn’t quite "get" horseracing. They liked their football, basketball, baseball, rodeo and even supported the Houston Dynamo, a MLS team that made its Houston debut in 2008. 

Bork, loved the challenge. He switched the post times from afternoons to evenings and increased the number of simulcast track offerings. He was the mastermind behind the 12% takeout on Pick 3 wagers, and even more daring, the ten-cent superfecta, which Sam Houston began offering in 2005. Many tracks across the country, including the most venerable in Kentucky and California, followed suit.

Sam Houston has two well-regarded track surfaces. The main dirt track has a Brazos sand base that has been popular with horsemen and boasts one of the lowest fatality records in the nation. It’s turf oval is named after the late John B. Connally, the governor whose support of pari-mutuel racing lead to the opening of Sam Houston and other Texas tracks. The Connally Breeders’ Cup Turf Stakes had been run at Sam Houston since 1996. Many noted trainers including Hal Wiggins, Bill Mott, Bobby Frankel, Steve Asmussen and Graham Motion, shipped horses in for the mile and one-eighth handicap.  Beginning in 2000, Bork and Sam Houston racing secretary Eric Johnston annually approached the American Graded Stakes Committee of the Thoroughbred Owners and Breeders Association for consideration on the Connally Turf. Their best shot came after the 2004 edition of the stakes which attracted a nationally prominent field of turf specialists, most notably Better Talk Now. The heralded Graham Motion trainee did not win the Connally (heavy rain that evening rendered the course yielding and the front running Warleigh led gate to wire), but captured the Grade 1 Breeders’ Cup Turf later than year.

Bork, who was also serving as president of the Thoroughbred Racing Associations (TRA), attended the graded stakes session in December, 2005, and was thrilled when the committee gave the Connally its Grade 3 status for the 2006 calendar year.

When asked if that was one of his proudest moments, Bork reflected for a moment, and said no. He went on to discuss the challenge of getting OTBs in Pennsylvania and the uphill battle with legislators. In 1989, it was finally passed in the house and senate, but vetoed by the Governor. Bork and other industry officials  had a three-day window to get a reversal and worked 24-7 to get the word through media sources that tax-payers would benefit greatly from the revenue spawned by off track betting. Just hours before the deadline, OTBs passed in the state. Exhausted, but elated, Bob got in his car to return to his office. On the way, he decided to stop in a local watering hole and have a beer. The place was empty, except for the bartender and a regular, who was already three sheets to the wind at noon. No sooner than Bob had pulled up a barstool, the patron stared at him and yelled out "I know you; you’re the guy on tv."  Wino aside, that was a highly memorable career moment for Bork.
 
Some industry veterans can be aptly described in a few words. Smart, dedicated, focused, passionate, driven. There are few words to sum up the total essence of Bob Bork. He is all those, but irreverent irascible, unconventional and sometimes, hilariously funny as well.

I worked for Bob for ten years at Sam Houston Race Park. He was a tough task master, but in retrospect, we had a lot more fun than many people in the workplace. Bob balanced his authority with a challenge to each one of his department heads to be innovative and creative. Of course, that did  not mean that every idea or suggestion was taken into account. On more than one occasion, I researched, prepared and walked into his office with an elaborate plan. Minutes later, I was dismissed with words including "don’t let the door hit you on your ass on your way out". At first I was offended, but over time, I came to understand that Bob only kidded certain people. If he didn’t respect you, you received the silent treatment. Despite the quirks, Bork had no trouble pitching in when someone was shorthanded, even taking on concession stand duties when the hot dog line for the “Quarter Night" promotion got too long.

The marketing department, under the savvy leadership of Bryan Pettigrew, produced a video spoof on Bob. Our goal was to incorporate as many "Bobisms" as possible. There were lots, including “everyone’s a marketer”, “prove to me that if I let you spend $100,000, you will bring in over $100 K in revenue”, “mopes” and our personal favorite, if you tried to sneak out before the evening races were over, even if you had been there 14 hours since 8:00 am, he would ask you if you were working “half day”?

Bryan portrayed Bob and the rest of us took our turn at getting shot down.  We unveiled the video to Bob and his wife, Judy on Derby Day and held our collective breath as he watched. First a smile, then a chuckle followed by an ear to ear grin. He knew we had captured his true spirit. Judy loved it more than Bob; she asked for extra copies for the Bork Christmas gathering.
 
Running a racetrack is a tough job. The general manager attempts to balance the needs of the horsemen, simulcast patrons, live racing fans and employees, all the while trying to make a profit in these challenging economic times. Bob was pretty good with the horsemen and empathized with their frustrations over lower purses than the surrounding states (Louisiana, Oklahoma and New Mexico) with VLTs. He did get into it with a Texas owner who preferred to run his mare against state-bred company instead of facing Take Charge Lady in the 2002 NTRA Great State Challenge. Bob asked nicely, implored and came marginally close to begging. The owner would not change his mind. A heated encounter took place in the winner’s circle when the owner simply told Bob "you can’t tell me where to run my horse" and Bob, without missing a beat replied "I can tell you not to run at my racetrack."
Three years ago, Maxxam, the parent company of Sam Houston, selected a new management team focused on making the track more of an entertainment destination. Bork retained a position as chairman and worked on legislative affairs as well as his national role as president of the TRA. His contract with Maxxam expired eight months ago.

He refuses to use the word “retirement” and would gladly go back to work full time. But for now, he has plenty of hobbies and past times. He is a great cook, loves to create concoctions with his juicer and enjoys heading to Freeport on the weekends to enjoy his 35′ Viking fishing boat.  He is also working out with a trainer several times a week, not just to stay in shape, but to compete in the 2011 Chevron Houston Marathon, a 26.1 mile run through the city of Houston held in January. The race attracts 22,000 participants each year, including some internationally elite runners. Bob’s goal: to win his age group and best his time of 4.29 he ran in 2001.
 
Gotta love the guy!
 
Martha Claussen has been involved in the racing industry since 1997 as a publicity director and writer for the Houston Chronicle, Texas Thoroughbred Magazine and SureBet Racing News.

By Ray Paulick
In an unprecedented move, the Thoroughbred Owners and Breeders Association’s American Graded Stakes Committee has taken “graded” status away from three races in Pennsylvania that had already been run in 2009 because the Pennsylvania State Horse Racing Commission failed to follow drug testing protocol required by the TOBA committee. The races in question are the former Grade 2 Pennsylvania Derby and Fitz Dixon Cotillion Stakes at Philadelphia Park and the former Grade 3 Masters Stakes at Presque Isle Downs.

To repeat, these races were advertised and run as American Graded Stakes, and the various trade publications and Thoroughbred industry data bases reported them as being graded after they were run. It was not until the American Graded Stakes Committee met recently that the races were stripped of their graded status.

At first blush, the decision doesn’t seem fair, especially to the owners and breeders of the horses who either won or placed in those stakes. Why should they be punished for something (drug testing protocol) that was completely out of their control?

But, frankly, I like the fact TOBA is flexing whatever muscle it has to strengthen the integrity of the game, to tighten drug and safety rules and create some level of national standards for the best and most important races run in the United States. The committee members should be congratulated for setting these standards (click here to read the American Graded Stakes Committee’s protocol), and, for the first time, showing their commitment to integrity by enforcing them.

Andy Schweigardt, who administers the AGS program for TOBA, said committee members were “disappointed” they had to take such a dramatic step, one that could have had significant economic implications on the horses losing the important status that comes with an American Graded Stakes victory. In this instance, all three winners either previously or subsequently won a graded race of the same or equal standing, so it did not impact them. According to an article at bloodhorse.com, however, three of the horses that placed in the Pennsylvania races lost their standing as “graded stakes placed” or slipped from grade 2-placed to grade 3-placed. So there are some potential economic damages.

Schweigardt said the committee engaged legal counsel prior to the decision to revoke the race grades. In other words, TOBA feels safe in the event of litigation by anyone who might feel they were harmed by the decision. I’m not sure the Pennsylvania State Horse Racing Commission should have the same comfort level.

What the Pennsylvania State Horse Racing Commission failed to do is conduct testing for alkalizing agents, commonly known as milkshakes, something that is part of the American Graded Stakes drug-testing protocol.

All racing commissions in states that offer American Graded Stakes are notified of the protocol in advance by Schweigardt, who then follows up in the autumn of the year the races are run by requesting a letter from each racing commission stating their compliance with the protocol. “We hadn’t received (the letter of compliance) from Pennsylvania as of the mid-November deadline,” said Schweigardt. “We got ahold of someone just before Thanksgiving, and he said at the time he couldn’t send the letter because they hadn’t done the testing for alkalizing agents.”

“One of the reasons given was budget constraints,” Schweigardt added, “but the others were philosophical in that they disagreed with us, saying their scientific counsel told them the use of alkalizing agents in Thoroughbreds doesn’t have any affect on performance, therefore it would be a waste of money.” Schweigardt said Dr. Lawrence Soma was the source of the scientific advice to the Pennsylvania State Horse Racing Commission. Pennsylvania does test for “milkshakes” in Standardbreds.

Pennsylvania State Horse Racing Commission chair Dr. Corinne Sweeney did not return a phone call from the Paulick Report to discuss the issue and Joe Mushalka, director operations for the commission, said he could not talk about it though said a press release would be released in the next few days.

“TOBA’s decision (to require testing for alkalizing agents) was based on the fact it was important, as seen in California and other states,  and by a desire of the Racing Medication and Testing Consortium to put together a model rule on how to go about properly testing and regulating this practice,” Schweigardt said. “And, quite frankly, there was concern from racing fans that this was in their perception a significant performance enhancer in horses.”

The position taken by the Pennsylvania Horse Racing Commission is ignorant and arrogant and demonstrates some of the ongoing challenges in the scientific community on which the horse industry depends on drug testing and medication issues. Some people and institutions simply think they are smarter or more informed than others, even when their positions fly in the face of industry consensus. The Pennsylvania State Horse Racing Commission comes out looking like fools in this case and owes an apology to the owners and breeders of the horses that competed in the three races that had their graded stakes status revoked, and to the fans whose confidence in this sport is wavering because of medication and drug testing issues.

This was industry regulation at its worst.

* The American Graded Stakes Standings only includes races in the United States. Additionally, sales stats are only included for horses that were sold.

Copyright © 2009, The Paulick Report

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By Ray Paulick
I took no glee in writing about bloodstock agent Jim Cullen’s legal and financial problems earlier this week. The trail of lawsuits, unpaid financial obligations and charges of alleged wrongdoing from some of his former clients and associates do not paint a pretty picture to outsiders interested in investing in the Thoroughbred industry.

For his part, Cullen has responded to my article at the website he maintains for his company, Cullen Bloodstock. Click here to read his response. Feel free to comment below on whether you feel he was wronged by the Paulick Report expose, or in subsequent, similar articles at bloodhorse.com and drf.com.

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By Ray Paulick
Know and Trust is a 2-year-old filly owned by some former clients of bloodstock agent Jim Cullen and trained by Cullen’s childhood friend and college roommate William Denzik Jr.

Cullen was recently given a one-year banishment from participation at Keeneland Association auctions, based on violation of a Code of Conduct written by the Sales Integrity Task Force, an initiative of the Thoroughbred Owners and Breeders Association. Fasig-Tipton is also enforcing the one-year suspension, which runs through 2010, and other sales companies around the country are considering taking the same action. The sanctions came earlier in November, nine months after Trumbulovich, Kevin Geiger of Colorado and Vincent Colbert of Massachusetts contacted the Task Force with complaints about their former bloodstock adviser. “We could easily have turned our back on this, walked away and say we got screwed,” Colbert said. “We talked it over and decided we didn’t want this to happen to somebody else.”

But that is just the beginning of Cullen’s troubles. He has been sued by several parties, including horse owner Cam Horton, the stallion season firm Early Season Income, National City Bank, and Wells Fargo Bank. The Internal Revenue Service says Cullen owes $233,143.72 in taxes from 2003-05. He agreed in 2007 to pay Cam Horton $333,000 for not reimbursing Horton for a season to A.P. Indy after Horton’s mare aborted, and has not met that obligation. A Fayette County judge has ordered him to pay National City Bank $348,181.65. Wells Fargo is in the process of foreclosing on Cullen’s home.

FROM JOURNALISM TO PINHOOKING

Cullen is a former journalist who worked for Thoroughbred Times as a news reporter, then served as editor of the Texas Thoroughbred magazine while contributing to the Blood-Horse as a free-lance correspondent. He also was employed for a short time by the Thoroughbred Owners and Breeders Association based in Lexington. As recently as August of this year, he was a guest speaker at a new owners’ seminar Blood-Horse Publications sponsored in conjunction with the Texas Thoroughbred Association prior to a Fasig-Tipton yearling sale.

‘I’M A GOOD HORSEMAN. I’M OBVIOUSLY NOT A GOOD BUSINESS PERSON’

A number of mares in the partnerships were bred, and the partners were billed for stud fees, which they subsequently paid for, according to Cullen’s sworn testimony in the March 2009 deposition involving the National City Bank lawsuit. Under questioning from attorney Emily Cowles of Morgan & Pottinger (representing National City) and Mike Meuser of Miller Griffin and Marks (representing Trumbulovic, Colbert and Geiger), Cullen admitted that on numerous occasions he did not use the money billed to clients for stud fees to pay those fees. Many of the fees were never paid to the farms.

Here is an excerpt regarding Cullen’s purchase of stallion seasons, the billing of clients and non-payment to farms:

MEUSER: Okay, and I can show you the other invoices. But on each occasion that you billed Mr. Colbert or Mr. Geiger or Mr. Trumbulovic for these stud feeds you labeled them specifically on your invoice that that’s what they were being billed for.

MEUSER: All right. And you had made the contractual arrangements with the farms to obtain those seasons?

CULLEN: Correct.

MEUSER: And you knew that when you received those monies from my clients you were obligated to to use them to satisfy those obligations?

CULLEN: See, I didn’t know that. I thought like I, like I’ve made clear, I thought that the whole protection of an LLC was designated to give you license to use that to the best benefit of the company as provided you satisfied what this obligation was for.

CULLEN: I can understand. Yes, sir.

MEUSER: … that a client who received this bill and paid it would have the expectation that their agent who they trusted would use those monies properly?

CULLEN: Yes, sir. Yes, sir. I, I agree to that. I mean.

MEUSER: That’s all I have.

CULLEN: Okay.

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By Ray Pauick
Every sport, whether it’s baseball, basketball, football, golf, hockey or tennis, keeps track of its major league records. Baseball doesn’t mix statistics of Triple A players with those in the American or National League, just as the NFL doesn’t compare its players’ individual performances and records with those in Arena Football. The PGA Tour and Champions Tour keep separate records.

Why should horse racing be any different?

Since 1973, horse racing in the United States has had a clearly defined “major league” of races designated as Grade 1, Grade 2 and Grade 3 among the tens of thousands of races run throughout the country. These races (there are 489 of them this year) are the “best of the best,” restricted only by age or sex, not by state where bred or other conditions that apply to many maiden, allowance, claiming or even stakes races. Yet the overwhelming majority of statistics presented day in and day out mix the best races with the worst in sire, owner, trainer breeder and jockey standings. 

The  American Graded Stakes program (formerly North American Graded Stakes, until the Jockey Club of Canada opted to grade its own races) is overseen by a committee of the Thoroughbred Owners and Breeders Association, which uses specific criteria to evaluate the relative quality of open, unrestricted stakes races. The American Graded Stakes Committee consists of owners, breeders, and racing officials from around the country; the committee meets after the Breeders’ Cup each year to evaluate and grade the races for the following year.

The Paulick Report believes American Graded Stakes are one of the most underutilized assets of our sport and can be the foundation for a national program that could lead to the development of a “major league” for horse racing. But that’s a discussion for another day and food for thought for some of racing’s various organizations to ponder.

Our role in compiling information on the winners of these races and publishing American Graded Stakes Standings, which is brought to you by Keeneland, is to highlight which stallion sired the most graded stakes winners of the current year, which trainer or owner won the most, which breeder bred the most, which consignor sold the most, and which sale company auctioned off the highest number of winners of America’s best races.

Racing and breeding is a statistical endeavor, and we think the most important statistics involve the winners of the best races. Those races are the American Graded Stakes.

Over the coming weeks, the Paulick Report will examine each of the categories in more detail, looking at who owns, breeds, trains, consigns, buys and sells the most winners of American Graded Stakes. We’ll try to identify value and pick up on trends that can help industry participants better understand where the next Graded Stakes winner may come from. 

For example, so far in 2009, the median price of a yearling that went on to win a graded race in 2009 was $63,665; 2-year-old median for 2009 graded stakes winners is $180,000; and weanling median price for a 2009 graded stakes winner is $55,000. The lowest-priced yearling that won a graded stakes was the $1,000 Autism Awareness, the lowest-priced weanling was the $25,000 Our Edge, and the lowest-priced 2-year-old was the $10,000 Secret Gypsy.

The accompanying lists are for American Graded Stakes through July 26. We’ll update the lists each week so the industry, for the first time, has an up-to-date leaders lists of these important races. In our analysis, we’ll add some context to the raw numbers. And as with anything we publish, we’ll open the comment section to our readers in hopes that you’ll have some suggestions to make these lists even more meaningful and useful.

Immediately after the regulations on toe grabs went into effect in April, stewards at Delaware Park noticed an increase in the number of horses stumbling coming out of the starting gate and began to track the statistics at Wayne’s request. “They noticed two, three or four horses a day were stumbling, and riders were coming off horses." Wayne also said track maintenance crews and the starting gate crew tried different things to alleviate the increase in stumbles at the start, to no avail.

Copyright © 2009, The Paulick Report

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By Ray Paulick
Are you happy with the job racing regulators are doing? Could these individuals who serve on commissions, boards, or government agencies, many of them as unpaid political appointees, be doing a better job? What about the paid staff at the commission level, or the racing commission stewards or veterinarians?

Copyright © 2009, The Paulick Report

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