Citing Conflict of Interest Issues, Rooney Self-Recuses from MRTOA Training Center Decisions

To avoid any potential conflict-of-interest issues, Tom Rooney, an appointed voting member of the Maryland Thoroughbred Racetrack Operating Authority (MTROA), has recused himself from any further decision making in the selection of a year-round training center, said Alan Foreman, another voting member of the non-profit.

The new organization is positioning itself to assume control of day-to-day racing operations in Maryland, pending legislative approval. In a proposed plan, The Stronach Group, which owns Pimlico Race Course, would turn over ownership and daily operations of the track to the state and to the MTROA, respectively.

Complementing a revamped Pimlico would be the selection of a companion training facility to accommodate roughly 700-800 horses.

The MTROA identified eight potential training facilities for purchase. They include the Shamrock Farm Training Center, a little over 20 miles from Pimlico. Shamrock Farm is a 155-acre facility owned by the Rooney family since 1948, according to the facility's website.

Foreman said that Shamrock Farm was selected as a possible training site due to the Rooney family opening the door to its possible sale.

Initially, Rooney said that “'if in fact the farm is a possibility, I'll resign from the Authority because I don't want anybody to think there's a conflict of interest there,'” said Foreman, who is also general counsel for the Maryland Thoroughbred Horsemen's Association (MTHA).

Rooney sits on the Maryland Horse Breeders Association (MHBA) board. The MHBA “did not feel that he should step down,” said Foreman.

“But Tom said, 'if I don't step off the board, I'll want to make very clear that I'm recusing myself with respect to any matters related to Shamrock Farm or consideration of Shamrock as a training facility. You can deal directly with the family,'” said Foreman.

“Tom would not participate in the vote for the training center,” Foreman added. “So, it isn't just that he would recuse himself from Shamrock, but he has recused himself from voting on the location of the training center.”

According to a MTROA report dated Jan. 5, if a decision is made to move forward with Shamrock Farm as a training center location, “a third-party appraisal process will be used to substantiate a purchase price,” the report states.

In a separate report, the MTROA rates the eight different possible training facilities by several criteria, including their location, size, cost to purchase and cost of redevelopment.

According to this rating system, two facilities come out jointly on top–Shamrock Farm and Mitchell Farm Training Center, a 97-acre facility near the Aberdeen Proving Ground. The third-rated facility is the Bowie Race Track, a 131-acre training facility.

According to Foreman, these three facilities will undergo independent appraisal in preparation for a final training site vote.

The ambitious reconfiguring of Maryland's horse racing infrastructure hinges upon legislative approval. The recently unveiled report came with the endorsement of Maryland's governor, Wes Moore.

“Our hope is, we can coalesce around a site by the end of the legislative session,” said Foreman. The Maryland General Assembly's 90-day legislative session is scheduled to run until Apr. 8.

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Differences Over ‘Pimlico Plus’ Project, Proponents Say ‘We can’t let perfect get in the way of good’

Acknowledging that there are differences of opinion about specifics of the “Pimlico Plus” plan that envisions a publicly funded future of racing at a state-owned, modernized track in Baltimore, the construction of a new training facility elsewhere, and a non-profit operator taking over day-to-day racing, the leaders of the Maryland Thoroughbred Racetrack Operating Authority (MTROA) on Thursday asked stakeholders not to let quibbling over details derail the larger goal of getting the ambitious plan approved by the legislature so that horsemen can control their own destiny.

“There are a lot of skeptics,” said Alan Foreman, who is the general counsel for the Maryland Thoroughbred Horsemen's Association (MTHA) and is also that group's representative on the MTROA. “Some of the critics have already come out very quickly without letting us continue to do our work. My own personal perspective is the status quo in racing is simply not going to survive going forward. We have a once-in-lifetime opportunity here. This will not present itself again. And we can't let the perfect get in the way of the good.”

The MTROA's vision for the $400-million makeover, which was made public in a Jan. 5 report, has a number of key components coming into alignment right now, Foreman said.

There is support from the Maryland governor, the speaker of the House, and the president of the Senate, Foreman said.

In addition, The Stronach Group (AKA 1/ST Racing and Gaming), which owns Pimlico Race Course and Laurel Park, has agreed in principle to an exit strategy that would turn over ownership of Pimlico to the state and cede control of daily Thoroughbred racing operations to an entity that would function similarly to the New York Racing Association (NYRA).

In exchange, The Stronach Group would be allowed to eventually sell or redevelop Laurel while retaining rights for Maryland's two signature races, the Preakness S. and the Black-Eyed Susan S. Those rights would then be leased back to the new operating entity.

Despite the momentum the project seemingly has going for it, Gregory Cross, the MTROA's chair, warned that getting Pimlico Plus signed into law is far from a slam-dunk.

“It's an extremely, extremely difficult budget year,” Cross said. “We're lucky to be preserving what we have [and] fitting it [into] what has been allocated-very lucky.”

Foreman agreed: “We're really threading the needle here, folks.”

Added Cross, “While we have been given some support, it's far from an assurance of passage, so we've got a lot of work to do.”

That work, Foreman, said, includes not just the passage of legislation, but acquiring and beginning development on a training center, engaging a design consultant to flesh out the reimagined Pimlico beyond the broad concept that is currently on paper, signing off on negotiations with The Stronach Group, and putting together the non-profit operating team.

The MTROA would like all of that done by Jan. 1, 2025.

“There are only two states in the country where there is any forward-thinking development going on,” Foreman said. “NYRA, which is rebuilding Belmont, and now it's going to be Maryland racing. We have a very unique opportunity to position Maryland racing for the future. Through this project, I think we guarantee at least a portion of our funding base with the General Assembly. [But if] we didn't do this, we wouldn't be protected going forward.”

The MTROA envisions between 140 and 160 racing dates per year at Pimlico.

Foreman said the alternative, based on a presentation The Stronach Group made to the MTHA, would nearly slice that number in half.

“The Stronach Group's vision of the future is a maximum of 80 live racing dates in Maryland,” Foreman said. “Two 40-day boutique meets, with a shift of [gaming] revenue from the horsemen and breeders to them, to make them profitable. Under the current scenario, they do not see a way in which they would invest any money into the Maryland tracks. So we would be essentially at the status quo if we don't do any of this.”

Foreman continued: “Can you sustain live racing, and can you sustain a breeding industry, on 80 live racing days with vastly inflated purses, which is going to squeeze out the middle and the small horsemen, and bring probably large, out-of-state outfits into the state of Maryland? Where [else] do we think we can do something where we can control our own destiny and make this work?”

Foreman said he “firmly believes” Pimlico Plus is feasible. He further noted that the MTHA currently pays “$11-plus million” in subsidies to the Stronach Group just to conduct basic operations that keep the sport running at Laurel (which has been besieged by main-track safety issues for years) and Pimlico (which is outdated and hosts racing only for brief meets in the spring and September).

Still, the horsemen in attendance for the Jan. 11 videoconference had no shortage of concerns. Chief among them was housing for stable workers.

Last week's report stated there would be no housing actually on the backstretch at Pimlico. It would be nearby, in a neighborhood widely considered to be dangerous.

The report also identified three top candidates for training centers (Shamrock Farm in Woodbine, Mitchell Farm in Aberdeen, and the former Bowie Race Track in Bowie), but none of them would include dormitories for workers.

Trainer Ferris Allen put it this way: “I think the [MTROA] needs to understand that a lot of our employees are on foot or on bicycles. They don't drive. They work on H-2B visas and things like that. So on-site housing is a very essential part of running our business.”

As for Pimlico, Foreman said, “Working with the city, the plan is to incorporate backstretch housing into the community, contiguous to the racetrack. But that's all going to be part of a much more complete and dynamic redeveloped area, and not what you see in that area right now. It is a unique concept, one that we think will work, and one that will have to be fleshed out as we go forward.”

Regarding the training centers, Cross said, “At this time there's no money for that. It's a $25- to $30-miliion cost. And the zoning is very questionable as to whether it would be allowed.”

David Richardson, the executive director of the MTHA, who was moderating questions as they came in during the video conference, added that, “I will say I'm getting inundated with texts and comments about the need for backstretch housing at the training facility. If there's any feedback from horsemen, it's how crucial [the housing] component is.”

Foreman and Cross both indicated the MTROA would take into account the horsemen's concerns about housing going forward.

Other questions from horsemen included wanting to know specifics about the Preakness and Black-Eyed Susan S. licensing deals, but the MTROA didn't disclose many specifics.

“I don't want to get into too many details on that, but essentially we would be paying an annual fee [in exchange for] full control over the Black-Eyed Susan, the Preakness, and we would have full control over all revenue streams,” Cross said. “They're going to donate Pimlico to this new operating authority. We're going to license the Preakness. That's the essence of the deal.”

Asked if there was any consideration given to pushing back the proposed construction by a few months so Pimlico could capitalize off the 150th running of the Preakness at Pimlico in 2025, Cross said that idea would be too costly in terms of money and time.

“At the end of the day, we decided to model after Belmont, which is closing for two years and then coming back. And that is going to allow us to complete the construction on a timely basis,” Cross said.

But even though the plan calls for Pimlico to reopen in 2027, no deadlines are etched in stone at this early stage of the project.

Foreman said that even if Pimlico wasn't completely renovated in time for a grand reopening in May 2027, he expected it would be “at least in [a] phase [of partial usage] that we would still be able to accommodate the Preakness.”

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MTHA To Host Community Meeting On MTROA Reports

An online community meeting for members will be hosted by the Board of Directors of the Maryland Thoroughbred Horsemen's Association (MTHA) on Thursday, Jan. 11 at 11 a.m. ET to discuss the reports recently released on behalf of the Maryland Thoroughbred Racetrack Operating Authority (MTROA).

The MTROA has been examining options for the future of the Thoroughbred racing and breeding in the state, specifically facilities and operating models. The reports are to be considered by the Maryland General Assembly, which begins its 2024 legislative session Jan. 10.

MTROA Chair Gregory Cross and Alan Foreman, a member of the Board of the MTROA, will make presentations and field questions from attendees.

Registration is required. Join-in instructions will be provided by email following registration.

Read T.D. Thornton's Week In Review for further analysis.

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Amid Daunting Industry Issues, A Message To Symposium Students: Don’t Give Up

A panel discussion titled “From Data to Dollars: Understanding Horse Racing's Economic Impact As Racing's Future is Questioned” during Wednesday's Global Symposium on Racing hosted by the University of Arizona Race Track Industry Program (RTIP) led off with moderator Alan Foreman confronting “the elephant in the room that we dodge.”

Foreman, the chairman and chief executive officer of the Thoroughbred Horsemen's Association, said racing is facing an “existential moment” at a time when industry stakeholders increasingly must make the case for the sport's so-called social license to exist in the face of intense pressure from anti-racing activists and a younger generation of Americans who hold the belief that animal-based entertainment is more cruel than cool.

“It's not about foal crop. It's not about field size. It's not about whether we have a core product,” Foreman said, ticking down the list of the common concerns that industry insiders often debate.

“The single biggest issue right now [is] should the federal government, and should our state legislatures, continue to support our business?” Foreman said.

Foreman then rephrased his rhetorical question more bluntly so there would be no misunderstanding: “Is it time to end horse racing in this country?”

Foreman certainly doesn't think so, and neither did the panelists who joined him at the podium.

But the group did try to offer pearls of wisdom as to how industry stakeholders might fight back when confronted with that question.

Julie Broadway | Horsephotos

Their answers largely centered on the sharing of strategies for getting across the industry's far-reaching scale and the potential ramifications of ceasing racing, and several speakers even articulated how some entities in the sport have effectively lobbied their respective states to secure financial incentives, bolster racing programs, and modernize facilities, like the currently underway rebuild of Belmont Park and the planned re-imagining of Pimlico Race Course.

Foreman pointed out that even though there is now federal oversight in the form of the Horseracing and Safety Act (HISA) Authority, racing in the United States remains primarily a state-sanctioned business, and how much of the industry operates under laws that were enacted for vastly different economic reasons decades ago than what we face now.

Every year at about this time when applying for next season's racing dates, Foreman said, track operators increasingly have to defend why their states should support our sport's way of doing business.

“The point is, what the state giveth, the state can taketh,” Foreman summed up.

And demonstrating that we are upholding that “social license” must take the form of deeds and not just words, Foreman said. He and the other panelists also concurred that the sport's narrative also must be backed up by accurate economic data, which helps to drive home points to legislators and regulators.

What we need to successfully convey, Foreman said, is “if you talk about the economics of this business; the value of horse racing to the economies, of our local communities, of our states, of our country…I think that we can overcome this very challenging environment that we are in.”

Julie Broadway is the president of the American Horse Council (AHC), a national organization whose work and data helps not only racing stakeholders, but everything equine-centric in the country, under a scope that ranges from broad national issues to smaller initiatives at the local government level.

“You cannot sit still and sit back and wait for people in [government] to figure out what goes on in our industry and what it's all about,” was Broadway's assessment of how to approach dealing with politicians who can help usher through changes via legislation.

Regardless of the level of government, Broadway said the approach is largely the same. Getting your message across means 1) educating decision-makers; 2) setting context and dispelling misinformation and inaccuracies about your position; 3) stating the positive and pointing out unintended and/or negative consequences, and 4) making the overall narrative relatable and personal.

Those points are all underpinned by being armed with the proper data, Broadway said.

Najja Thompson | Fasig-Tipton

Najja Thompson, the executive director of the New York Thoroughbred Breeders, said that a lot of times when racing people go in to make their cases to legislators, they have to be aware that they'll be dealing with a lower-level staffer at first. “And they're not listening to me unless I have the data to implore them to get their representative to speak to me directly on why racing is important in New York,” he said.

But, Broadway added, racing industry stakeholders can't benefit from that data if they don't join in to help compile it.

Broadway gave the example of a recently undertaken AHC economic impact study that sought to include feedback from the racing industry. The data will eventually be used to underscore the importance of horse racing within America's larger equine population, and it will be available for anyone who wants to cite it in making their case for support from legislators.

Yet only four Thoroughbred tracks responded.

“This survey was out for more than six months,” Broadway explained. “I'm sad to say that the Thoroughbred racing industry had a really low response rate. I mean, we really had to beg for data.”

Broadway contrasted that with participation from the harness racing industry, “because they really stepped up. They are getting their own breakout report just on Standardbred racing [that will] cut across all states where Standardbred racing occurs.”

Lonny Powell, the chief executive officer of the Florida Thoroughbred Breeders' & Owners' Association, said he was stunned to hear that support from Thoroughbred tracks was so low.

“That's amazing. That's tough. How are we going to tell our story if nobody's even trying?” Powell said.

“I'm always a track guy,” Powell continued, alluding to his years in track management prior to a career turn toward executive jobs with industry entities. “And I just don't get it. I don't get why you wouldn't want to tell the story.”

Tom Rooney, the president and chief executive officer of the National Thoroughbred Racing Association, pointed out that being a reliable broker of data is important, but that you need to also skillfully be able to tell the story of those numbers in a narrative form to get your point across to non-racing listeners.

“Clearly, the data is about jobs. It's about farms. It's about these things that we're used to going away, and maybe having to change the way that we work,” Rooney said. “If you work in the horse racing industry, you're kind of the subculture of skills that's probably applicable [in] very few other places. So we live in our own world, and we wouldn't be here if we didn't think that world was a good and beautiful endeavor to belong to.”

Added Powell: “You've got to be able to tell somebody what the consequences are if your industry goes away.”

Lonny Powell | Serita Hult

Powell also pointed out that reams of data are great, but that time in front of legislators is limited, so racing stakeholders need to distill it into manageable, relatable chunks.

“You've got to know it. You've got to believe it. You've got to have confidence in it. And you really have to care about the industry you're talking about. Otherwise, it's just a study,” Powell said. “Make your story relatable to those that aren't in our industry.”

Several panel participants underscored that people in racing have to take the time to forge personal bonds with legislators so the sport's stakeholders can be viewed as trusted sources.

In other words, don't go seeking help from politicians for the first time only when “your back's against the wall,” Powell cautioned.

“Are you kidding me? You've got to develop relationships. That takes years,” Powell said.

Foreman stressed that the racing industry needs to hone (and often repeat) the message that the sport is an economic engine, and that the money it generates often gets reinvested back into the community in ways that aren't apparent to legislators.

“Here's something that very rarely gets talked about, but legislators love to hear this,” Foreman said. “Racing is a community. We take care of our people,” he continued, giving examples of how in his home state of Maryland, the horsemen's health system provides full health care for the people who work in racing.

“That is something that doesn't fall back on the local economy, that doesn't fall back on social services. It doesn't fall back on the state,” Foreman said. “It's the racing industry that supports that. We take care of the people who work with us, [and] that resonates with legislators. And that's why they're willing to support the industry, because they understand the local impact that it has.”

To get that story across to political decision-makers, Foreman said, “we combined the economic impact with the social license aspects of it, and that's the takeaway.”

Powell, however, had a different message to impart, speaking directly to RTIP students. He prefaced his comments by letting the RTIP majors know that he is a graduate of that program who was attending his 41st edition of the annual symposium, and that he understood how some of the presentations over the past two days that focused primarily on industry problems might be giving students second thoughts about pursuing a career in the sport.

“Don't change your major,” Powell implored them, his voice at times cracking with emotion. “That's exactly why you're needed in leadership. That's exactly why you're needed in this business. Because we need people that believe you can make progress versus 'ride it all out.'”

“It's difficult. It's changing,” Powell said of horse racing. “But you can't give up.”

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