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Trouble In (Turf) Paradise: Sale Again Called Off, ’24 Meet Still Planned

News — Fri, 12 Jan 2024 21:18:10 +0000

For the second time in four months, a reported sale of Turf Paradise has been called off.

The track's current owner, Jerry Simms, broke the news at Friday's Arizona Racing Commission (AZRC) meeting without disclosing details or being pressed by regulators to provide any additional information.

Preparations for a planned Jan. 29-May 4 race meet are still underway, though, according to testimony from track officials, commission employees, and representatives of the Arizona Horsemen's Benevolent and Protective Association (AZHBPA).

The revelation that the deal was a no-go didn't seem to come as a shock to commissioners or stakeholders.

Specifics of the transaction had been shrouded in mystery and tinged with dysfunction since the outset.

At AZRC meetings in recent months, horsemen had expressed skepticism, frustration and even derision over whether Simms was working in good faith to make the sale. They had also alleged they were being kept out of the loop on key details about the future of the state's lone remaining commercial Thoroughbred track.

Simms had repeatedly denied those accusations. But it's no secret that Simms and Arizona horsemen have had an acrimonious business relationship for the better part of two decades.

Perhaps what was most bizarre about the Jan. 12 no-sale disclosure was the non-reaction from almost everyone else.

No commissioners asked Simms to elaborate on the failed deal, and when AZHBPA representatives were given their turn at the microphone to comment, they chose not to utter anything about the called-off sale. Instead they waxed glowingly about how well work for the coming race meet was progressing under Simms's stewardship.

The dialogue unfolded like this:

Friday's meeting had progressed about 35 minutes without any mention of the proposed sale, which was unusual considering the deal had previously been a focal point of discussion.

Back on Dec. 5, the AZRC had conditionally approved the '24 meet for Turf Paradise, which was to be conducted by Simms as he attempted to close on a sale of the 213-acre property to an entity known as Turf Paradise Land Trust.

On Friday, Turf Paradise general manager Vincent Francia was winding up comments about the work being completed in preparation for the meet when commissioner Linda York interjected to ask about an update on the sale, which Francia had not mentioned.

“Mr. Simms would be the one to provide an update to the commission,” Francia deferred, claiming that he didn't know if Simms was remotely listening in to the meeting to be able to comment. He offered to pass along a message to Simms, though.

A few moments later, Simms chimed in, claiming phone difficulties had at first prevented him from speaking.

Simms then took a few minutes to rail about an old feud over off-track-betting (OTB) with the now-defunct Arizona Downs, during which AZRC chairman Chuck Coolidge stepped in, asking him to stick to the current topic.

Simms continued his rant for a bit longer, then switched subjects.

“Commissioner York, right now, regarding your question about a sale? Right now there is no sale under contract. There is no deal. The deal was there before. The people never put up their money, and it just didn't happen.”

No commissioners asked why, what transpired, or what the falling-through of the deal meant for the future of Turf Paradise.

Instead, after a pause of several seconds chairman Coolidge just moved on to the next agenda item like nothing significant had just occurred.

Soon after, J. Lloyd Yother, the president of the AZHBPA, declined an opportunity to offer any sort of report when called upon to speak.

Yother deferred his time at the microphone to Leroy Gessmann, the AZHBPA's executive director, who said the Turf Paradise projects “are going slow, but they are moving forward….The racetrack, in the nine years that I've been here, is the best condition it's ever been in. For the first time in nine years, it was done properly [and] I want to thank Turf Paradise for getting a safe racetrack.”

Only later, during the public commentary portion of the meeting, did anyone briefly address the fall-through of the sale.

“That track is really not for sale,” said Stephen Nolan, a frequent critic of both Simms and the AZRC. “It's an illusion. A delusion that [Simms] is trying to portray. He won. He got his OTBs. He collects that money. He puts nothing back into the industry. That's obvious [by the condition of the property]. We need [the commission] to be proactive.”

In recent years, disagreements between the Arizona racing community and Simms have roiled in the courts and at AZRC meetings. Prolonged fights over OTB privileges, simulcast signals, and how the horsemen's purse money can be used have all been topics of heated debate.

Turf Paradise ended its most recent season in May 2023 with a different buyer doing due diligence to purchase the property. At the time, Simms said he wanted to retire to spend more time with his grandchildren.

On Aug. 1, Simms announced Turf Paradise wouldn't be opening in November as scheduled for its traditional six-month meet.

On Sept. 18, the months-long purported sale with the first buyer was publicly declared dead.

Ten days later, Simms announced a new buyer had suddenly emerged.

The AZRC met on Sept. 28 and Oct. 12 without anyone from the new prospective buying group coming forward to speak.

But during the Nov. 9 meeting, Simms introduced a representative from Turf Paradise Land Trust while claiming the two parties were at the escrow stage of a deal. AZRC staffers indicated that a vetting process to license the new ownership group was underway, but noted that process could take months to complete.

Despite their stated misgivings about Simms and the sale, on Nov. 10 the AZHBPA board of directors voted to extend required interstate simulcasting permissions so Turf Paradise's 37 off-track betting parlors wouldn't go dark and could instead keep generating revenue for purses at the upcoming meet.

During the Dec. 5 AZRC meeting at which Turf Paradise was green-lighted for racing in '24, Simms said the sale had hit snags, but he did not elaborate on them or indicate the deal was in jeopardy.

Now fast-forward to the Jan. 12 meeting. During the tail end of the public commentary session, Simms asked for and was granted a second turn to speak.

But instead of clarifying aspects about the future of Turf Paradise, Simms only made the overall situation more cryptic by underscoring that he wanted to move on from running the racetrack.

“You know, when I get a permit to run a track for three years, it doesn't mean I have to run three years if I want to retire,” Simms said. “If a doctor gets a license to practice medicine for five years, and after three years he wants to retire, he doesn't have to practice the entire five years…

“I want this industry to flourish. But I want to retire. And I'm allowed to retire. I feel badly for trainers that need a place to run. But at a certain age, I want to retire,” Simms said.

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Simms Portrays Turf Paradise Sale as Lifeline, but Arizona Horsemen Grow Skeptical

News — Thu, 12 Oct 2023 23:17:04 +0000

A report that a purchase-and-sale agreement for the currently closed Turf Paradise is just days away from being inked was met with skepticism, frustration and even derision from horsemen at Thursday's Arizona Racing Commission meeting.

Although the track's owner, Jerry Simms, framed the ongoing negotiations as a lifeline for Thoroughbred racing in a state that currently has no operational commercial track, J. Lloyd Yother, the president of the Arizona Horsemen's Benevolent and Protective Association (AZHBPA), said that Simms's oft-stated expectations of a new owner being able to conduct a race meet as soon as January are unrealistic, underscoring that, “my horsemen are getting pretty restless, and their livelihoods are at stake.”

Complicating matters for everyone is that the prospective deal has been shrouded in mystery since the buyer was first publicly named Sept. 28.

For the second commission meeting in as many weeks, no representatives of that would-be buying group appeared to speak about their plans for keeping racing alive at Turf Paradise during the Oct. 12 online-only meeting.

In fact, the name of that buying group–Turf Paradise Trust, LLC, whose principal is said to Frank Nickens–didn't even get mentioned by any party during Thursday's often-testy, back-and-forth testimony. Most references were generic, as in “the buyer.”

The Turf Paradise sale wasn't even officially on the meeting's agenda, either. But it was by far the dominant topic.

Commissioners largely just listened to Simms, the horsemen, and representatives from non-operational Arizona Downs spar verbally, and the board concluded the meeting without voting on or outlining any direct actions that would bring clarity to an increasingly confusing and controversial inflection point.

AZRC chairman Chuck Coolidge said toward the end of the heated discussion that the commission remained hopeful that “everything expedites in the right way.”

Other stakeholders used quite a bit more emotion when voicing their opinions on the Turf Paradise predicament, which stems from a months-in-the-making deal to sell the track falling apart on Sept. 18 and Simms announcing 10 days later that a new buyer had suddenly emerged with a desire to buy the 213-acre property and save the 67-year-old track from the wrecking ball.

“The state of Arizona horse racing is ridiculous. It's an absolute nightmare. Horsemen get fed information, some of it legitimate, some of it rumors,” said owner and trainer Cynthia George. “We're literally like children being used as pawns in a divorce battle [and] it's just absolutely unbelievable that horsemen get torn in every single direction…

“All these people want horsemen to have faith in the system,” George continued, “But what has really happened besides a lot of hot air? I don't know how else to explain it. Nothing real has happened…. We're trying to make life decisions. We're people with families…. And none of it is right. It should be completely unethical. It's fraudulent to keep posting media propaganda saying that Turf Paradise is going to open in January, when you can clearly go to Turf Paradise and see the walls falling off the grandstand.”

George's comments came after Simms testified that the deal was very close to coming together, and he repeated several times–like he had also stated on multiple occasions at the Sept. 28 meeting–that horsemen should be aware that he turned down offers of more money so he could try to make a sale to someone who wants to keep the sport going at Turf Paradise instead of developing the Phoenix property.

“I would say the contract should be signed this week. Could be [Friday]. Could be Monday or Tuesday,” Simms said. “There's just some other refinements to an agreement that have to be made. But I would say next week, for sure, and we'd have a signed contract. We already have a signed letter of agreement. This would be the purchase-and-sale agreement.”

Simms stated–but did not elaborate on–the fact that the buying group has had to change lawyers in the middle of these hectic negotiations.

In recent years, the relationship between the Arizona horsemen and Simms has been acrimonious. An extraordinarily long pandemic closure, multiple racetrack safety issues, and prolonged fights over off-track betting (OTB) privileges, simulcast signals, and how the horsemen's purse money can be used have roiled in the courts and at racing commission meetings.

Turf Paradise ended its racing season back in May with a separate buyer doing due diligence to purchase the property. But on Aug. 1, seven weeks before that sale was publicly called off, Simms announced the track wouldn't be opening in November as scheduled for its traditional six-month meet.

Arizona's horsemen have been dealing with heightened anxiety ever since.

“I understand it takes time and it's a big project to [arrive at] an escrow date and closing. But we're on such a tight time frame that my horsemen and my board are really uneasy,” Yother said. “This will be two weeks since we gave [Turf Paradise] the extension for the OTBs to run through Nov. 12, with the caveat that we can cut the signal at any time if something's not moving forward, and it seems to be at a stalemate.”

Even though Turf Paradise backed out of live racing for this autumn, Yother said the AZHBPA still gave its required permission for Turf Paradise to continue operating its 37 OTB outlets because the horsemen were led to believe those revenues would be used by Simms for repairs and upkeep that would allow the new buyer to begin a race meet in January.

“In the meantime, Turf Paradise has not started any work on repairs to the track to get ready for a meet,” Yother said. “Mr. [Vincent] Francia, the general manager of Turf Paradise, has expressed that he could possibly get ready in 60 days, but it would more likely be 90 days to get the track ready, to get horses in there. [So] we're not even close to being able to run in January. I think, in my interpretation, it's going to be either February or even later unless something happens between now and then.”

Yother said a number of outfits currently racing at Albuquerque Downs initially believed they would be allowed to remain at that New Mexico racino for a short while after the end of the Oct. 29 meet to keep their horses in training for Turf Paradise, but that is no longer an option.

“They've told them now they can't stay and they've got to go,” Yother said. “When Albuquerque's over, they've got to have a place to go. All we're trying to do is save racing in Arizona and try to find a place that we can bring our horsemen to and have a race meet. But [the Turf Paradise deal] is just being kicked down the road and kicked down the road, [and] it's at the point now where we have to do something or go to Plan B.”

Simms disputed that 60-90 day time frame for getting the track ready as “not an accurate number.” The dirt track just needs to be opened up, he said, and the turf course only needs a rye grass planting atop its current root system.

“There's nothing that has to be done to the barn area for the horsemen to come in,” Simms said. “Those barns are the same way they are now as when you left them” in May. “We're ready to go.”

Yother then responded with more specific list of repairs, including extensive work to the main track rail. Simms then disputed that needed to be done, claiming all the fencing had been fixed last spring.

“I'm just telling you that my horsemen and my board are extremely upset that nothing has taken place at this time. No good faith, nothing that's been happening at the track,” Yother said.

David Auther, a co-owner of Arizona Downs, wanted horsemen and commissioners to know that his track could provide the “Plan B” that Yother referred to.

“We still want to have our meet in May, or sooner, depending on what happens with Turf,” Auther said.

Arizona Downs didn't apply for a June-through-September race meet this year because of financial difficulties. The track formerly operated as Yavapai Downs between 2000 and 2010, when the ownership at that time filed for bankruptcy. It currently faces a Nov. 2 state administrative hearing on whether or not the AZRC should revoke its permit to operate because it hasn't been conducting live racing.

Permitting problems aside, Yother told the commission there is another problem that would give horsemen pause about working with Arizona Downs: He said both that non-operational track and Rillito Park, which traditionally runs weekends from early February through early April, are both in arrears for overdue purse money.

“They've been [put] on notice that if they do not get the horsemen's purse money paid, then we're not negotiating a new contract with them,” Yother said. “We have to get paid. We can't keep using our money when we're struggling and not getting paid on time.”

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New Buyer for Turf Paradise Emerges

News — Thu, 28 Sep 2023 22:46:29 +0000

The current Turf Paradise owner is courting a new buyer who just emerged last week as a potential savior for keeping racing alive at the state's otherwise-closing cornerstone track.

On Thursday, the Arizona Racing Commission (AZRC) voted to extend Turf Paradise's simulcasting privileges through Nov. 12 while regulators commenced a due diligence vetting process that could greenlight the sale.

The stated goal among stakeholders is to start a race meet in January under new ownership at the Phoenix oval.

The current management announced back on Aug. 1 that the 67-year-old track wouldn't be opening for live racing as scheduled in November.

The principal buyer in the deal was named as Frank Nickens by Arizona Horsemen's Benevolent and Protective Association (AZHBPA) president Lloyd Yother.

At a different point in the meeting, Turf Paradise general manager Vincent Francia said Nickens hadn't been able to attend the online-only Sept. 28 meeting, so he instead read a prepared statement on Nickens's behalf that Francia said was signed by Richard Moore, the chief executive officer for an entity called Turf Paradise Trust, LLC.

But other than disclosing the names of the principals and their potential buying group, virtually nothing was discussed at the meeting regarding their business or racing backgrounds.

The name of that limited liability company is not currently listed with the Arizona Corporations Commission, although it is possible the deal is coming together so quickly that the registration does not yet appear in the government's database.

“A lot of people have to understand that this guy [just] came forth [Sept. 20],” Yother said. “I do not know Mr. Nickens. I have no connections to Mr. Nickens. And all I can go on is what he discussed with the contract group with the HBPA.”

Yother said Nickens met Tuesday with AZHBPA representatives for several hours, then spoke again at an AZHBPA board meeting on Wednesday, at which the horsemen gave the prospective buyer their support to approve temporary simulcast permissions commencing Oct. 1.

That permission from the horsemen is necessary so that Turf Paradise's advance-deposit wagering agreements and 37 off-track betting parlors under won't go dark after Sept. 30 and can still generate purse account money.

“This all had happened in the last three or four days,” Yother said. “But it's the only 'olive branch,' if you will, that we could grab ahold of at this time to keep the OTBs open and running. All we're looking for is someone to run live racing in the state of Arizona and to save the industry.”

A planned sale of Turf Paradise to a different buyer, CT Realty, was first made public Apr. 12. At that time, TDN reported that racing was expected to continue there only as a placeholder for several more seasons while new uses for the 67-year-old venue went through the planning, approval, and construction stages.

About a month later, CT Realty announced that it would consider keeping racing going on a longer-term basis if it could successfully lobby the state legislature to approve historical horse racing machines or some other form of gaming at the track.

But on Sept. 18, Jerry Simms, who has owned Turf Paradise for 23 years, made it public that the deal to CT Realty had fallen through, and that the track and its simulcasting outlets would close Sept. 30.

The Nickens-led LLC buying group emerged immediately thereafter, Simms said.

“We've entered into a letter of intent. A purchase contract is being sent [Thursday] morning,” Simms said. “I believe the [AZRC on Wednesday] sent him his papers for his licensing and permit,” Simms said.

As Francia explained, “The plan is to open a live race meet in early January, and that is what we are all aiming for.”

Simms has been on the record since 2020 as saying that Turf Paradise operates at a “huge negative” financially.

Simms said several other potential buyers wanted the 213-acre property after the CT Realty deal blew up, but he underscored that he wants to sell to the Nickens group because that entity wants to keep the sport going instead of redeveloping the track for some other purpose.

“I had several buyers for the track. And I chose the buyer that I signed an agreement and [am] moving ahead with because he plans to run racing,” Simms said.

“He's very much an enthusiast; wants to have racing, is not interested in [redevelopment],” Simms said. “I want to save the industry, the jobs. I could have gotten even perhaps more money with one of the other buyers, [but I wanted} to save racing.”

In recent years, the relationship between the Arizona racing community and Simms has been acrimonious. An extraordinarily long pandemic closure, multiple racetrack safety issues, and prolonged fights over off-track betting privileges, simulcast signals, and how the horsemen's purse money can be used have roiled in the courts and at racing commission meetings.

“The purchase and sale, he's ready to move ahead,” Simms said. “He said he could close in 60 days.”

Simms added that if the deal doesn't get done by January, or if the AZRC hasn't completed its vetting process, he would be open to some sort of leasing arrangement that would enable a race meet to begin in 2024 even if the sale isn't official.

“Hopefully the [AZRC] will have enough time to do their due diligence. But the purchase and sale, he's ready to move ahead.”

The prepared statement from the Nickens entity that Francia read into the record stated that the new LLC is “working towards the purchase of Turf Paradise racecourse. We plan to keep live racing and to bring this facility into a new era [and continue] horse racing for the benefit of everyone involved. We feel the preservation of such a wonderfully historical facility and the preservation of thousands of jobs horse racing offers can carry the legacy of Turf Paradise on for another 50 years. We plan to completely redevelop the surrounding land, all for the benefit of horse racing. We look forward to a new, bright future for everyone at Turf Paradise.”

Beyond the horsemen-vs.-Simms feuding that has hovered over Arizona racing like a dark cloud for years, Turf Paradise and Arizona Downs, 82 miles north in Prescott Valley, have continually been at odds over race dates and the control of simulcasting signals.

Arizona Downs didn't apply for a June-through-September race meet this year because of financial difficulties. It has been mentioned as being up for sale or lease for well over a year, with 1/ST Racing and Gaming often rumored (but never confirmed) to be a potential buyer.

Arizona Downs formerly operated as Yavapai Downs between 2000 and 2010, when the ownership at that time filed for bankruptcy.

David Auther, a co-owner of Arizona Downs, questioned at Thursday's meeting why Turf Paradise would be getting simulcasting privileges even though its current ownership has stated it wants out of the live racing business.

“We need to consider enforcing the statute that is on the books that says each track gets its signal during its meet, and only during its meet,” Auther said.

“Having said that, we congratulate Turf Paradise on finding this buyer,” Auther continued, expressing slightly sarcastic incredulity about the prospect of “a guy that nobody knew of a week ago who's going to come in the door and pay hundreds of millions and have a contract in four days.”

Added Auther: “I'm sure that somebody's going to vet this. And I have a hunch the vetting won't take very long [and] we'll all know how to proceed here.”

TDN phoned Auther after the meeting and left a voicemail asking if he'd elaborate on why he didn't think the Nickens group's vetting process would take long. No callback was received in time for this story.

Nor did Francia, of Turf Paradise, return a message left by TDN asking for details about the deal and the background on who, exactly, the buying group is.

As AZRC chair Chuck Coolidge quipped at one point during Thursday's meeting, “It's not a traditional Arizona Racing Commission meeting without the two tracks going against each other, as always.”

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New Site Plan for Turf Paradise, but Future Racing Still Hinges on Gaming Legalization

News — Tue, 08 Aug 2023 19:38:49 +0000

A conceptual site plan newly submitted to the city of Phoenix for the proposed industrial development at Turf Paradise calls for the closure of the track once the under-agreement sale goes forward and development begins. But the incoming owner is still floating the idea of resuming racing at the 67-year-old Thoroughbred venue in the future if historical horse race gaming gets legalized in Arizona.

Audrey Jensen of the Phoenix Business Journal first reported Aug. 8 on the new details about the project, which has been named Winner's Circle Business Park. It proposes eight industrial buildings and two data centers on the 213-acre property that is being acquired by developer CT Realty. The sale, which was announced back in April, is on target to close by the end of this year.

James Watson, the managing partner of CT Realty, told the Phoenix Business Journal, “If we can get [gaming legislation] accomplished I think we can put the racetrack back on a really firm footing and build really beautiful product around it. We're at the moment trying to get some support from the governor…to create a big income stream to the state through these taxes.”

The new details about the Turf Paradise sale and development came one day after Arizona Horsemen's Benevolent and Protective Association (AZHBPA) president Lloyd Yother wrote in an open letter that he would “fight like hell” to ensure racing in the state is not dead.

“There are still many avenues to consider that will save Arizona horse racing. There are even options that include the possibility of running a late race meet in 2023 or possibly early in 2024,” Yother wrote. “If these don't pan out, our board will continue to exhaust every means available to bring horse racing back to Arizona in the very near future.”

Back on Aug. 1, the current ownership that is selling at Turf Paradise announced it wouldn't be opening the track in November as planned for its 2023-24 race meet. In response, horsemen held out hope that the incoming ownership would be willing to operate the remainder of the scheduled season from January through May 4. That aspect of the plan has not been confirmed by CT Realty.

When Turf Paradise concluded its 2022-23 meet in May, Arizona was left without an operational commercial race meet.

Arizona Downs, 82 miles north of Turf Paradise in Prescott Valley, didn't apply for a June-through-September race meet this year because of financial difficulties. That track has been mentioned as being up for sale or lease for over a year. It formerly operated as Yavapai Downs between 2000 and 2010, when ownership at that time filed for bankruptcy.

Elsewhere in the state, Rillito Park in Tucson traditionally runs weekends from early February through early April. Earlier this year, Cochise County Fair in Douglas ran a two-day mixed meet Apr. 15 and 16, as did Santa Cruz County Fair at Sonoita May 6 and 7.

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Open Letter to Arizona Horsemen: “Horse Racing in Our State is Not Dead”

News — Mon, 07 Aug 2023 13:48:39 +0000

In an open letter from AZHBPA President Lloyd Yother to Arizona horsemen released on Monday, he vowed to “fight like hell” to ensure racing in the state is not dead.

Yother's letter is in response to Turf Paradise officials announcing last week that the track won't open as usual in November as the sale of the property is imminent.

“I have had a few days to evaluate Turf Paradise and Arizona Downs' announced decisions to not hold race meets in 2023 or 2024,” Yother wrote. “However, I am here to make sure everyone in Arizona is well aware that horse racing in our state is not dead, and I plan to fight like hell to make sure of that!

Yother highlighted that the decision to close Turf Paradise not only affects the horsemen, but also the entire equine industry within Arizona.

“The horsemen and horsewomen throughout Arizona will especially be negatively impacted, but also all who earn their living through the equine industry here in our great state,” Yother wrote. “Owners, trainers, grooms, hot-walkers, our breeding farms and staff, veterinarians, farriers, feed and tack stores, hay straw and alfalfa producers will experience a substantial negative economic impact.”

Yother also gave a glimpse of hope and indicated there were ongoing discussions with some as-of-yet unnamed organizations in an effort to keep racing going in The Grand Canyon State.

“While some discussions cannot be made public yet, I can tell you there are several entities interested in negotiating with Arizona horsemen to establish a race meet at an existing track or even possibly building a new facility,” he said. “There are still many avenues to consider that will save Arizona horse racing. There are even options that include the possibility of running a late race meet in 2023 or possibly early in 2024. If these don't pan out, our board will continue to exhaust every means available to bring horse racing back to Arizona in the very near future.”

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Turf Paradise Won’t Open in November as Sale of Property Nears Closing

News — Tue, 01 Aug 2023 22:30:27 +0000

The current ownership that is selling at Turf Paradise in Phoenix won't be opening the track in November as planned for its 2023-24 race meet. But horsemen are holding out hope that the incoming ownership will be able and willing to operate the remainder of the scheduled season from January through May 4 if the real estate deal closes as expected by mid-December.

Turf Paradise management issued a statement via Facebook Tuesday afternoon confirming the decision.

Also on Tuesday, an email message reportedly sent to Arizona Horsemen's Benevolent and Protective Association (AZHBPA) members by that group's executive director, Leroy Gessmann, detailed potential next steps as the 67-year-old venue transitions to its new buyer, CT Realty of Dallas and Newport Beach, California.

“After several months of speculation and rumors, I finally have some definite updates that I can report to the membership,” Gessmann wrote. “Yesterday July 31, 2023, [AZHBPA] President Lloyd J. Yother received a call from [Turf Paradise owner] Mr. Jerry Simms, telling us that his final decision was to not run a race meet in November and December of 2023. After 23 years of running race meets, he felt it was time that he stepped aside and turn things over to the possible potential buyer, Mr. James Watson,” who is the managing partner of CT Realty.

“He wanted to announce this now, so horsemen had time to find alternative plans,” Gessmann wrote. “Mr. Simms has started laying off key employees, is issuing a national press release this week and stopped watering the turf track. So, I do not see things changing.”

Gessmann continued: “What is next for Arizona racing? After conversations with Mr. Watson, his status is that his final financial approval will be issued on Sept. 15. If this is approved and all the zoning goes through, then they plan to close the sale on Dec. 17. If all that falls into place, Mr. Watson is considering running a race meet starting in January through May 4. A lot of ifs in that last statement, but there is a chance for a race meet in January 2024.

“There also appears to be a lot of interest in Arizona Downs currently,” Gessmann wrote, referring to the track 82 miles north in Prescott Valley.

Arizona Downs didn't apply for a June-through-September race meet this year because of financial difficulties. That facility formerly ran as Yavapai Downs between 2000 and 2010. The ownership at that time then filed for bankruptcy.

Arizona Downs co-owner Tom Auther “is telling me he has had some racing companies contact him on the possibility of investing in Arizona Downs to allow the running of some type of race meet. This would require a lot of things to come together quickly and cooperation from the Department of Racing. But there are ongoing discussions,” Gessmann wrote.

“There have been some major racetrack operators expressing interest in building a new track in Maricopa County,” Gessmann wrote. “These alternatives may be longshots, but there is interest in rebuilding Arizona racing. I know Mr. Simms's decision to close the track is very disappointing and scary news to all of us. However, I want you to know that I, President Yother and the HBPA Board will continue to work on restoring racing in Arizona!”

The sale of Turf Paradise was first made public Apr. 12. At that time, TDN reported that racing was expected to continue there only as a placeholder for several more seasons while new uses for the venue went through the planning, approval, and construction stages.

About a month later, other news outlets in Arizona subsequently reported that CT Realty would consider keeping racing going on a longer-term basis if it could successfully lobby the state legislature to approve historical horse racing machines or some other form of gaming at the track.

The relationship between the Arizona racing community and Simms has been acrimonious. An extraordinarily long pandemic closure, multiple racetrack safety issues, and prolonged fights over off-track betting privileges, simulcast signals, and how the horsemen's purse money can be used have roiled in the courts and at racing commission meetings.

Simms has been quoted in the press since 2020 as saying that he operates Turf Paradise at a “huge negative” financially.

Gessmann told TDN back in April that, “Our understanding is it's going to be developed in stages, and they're going to race for one to two, [maybe] three more years depending on the development process.”

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Open Letter To The Stronach Group: Where Are The Answers?

News — Mon, 24 Jul 2023 20:34:20 +0000

Over a week has passed since The Stronach Group (TSG) announced with a short statement light on detail the closure of Golden Gate Fields at the end of the year–a momentous decision that figures to upend a way of life for so many in California.

Since then, the company has remained publicly mum on the reasons behind the closure, and its vision for the future.

Every day since the announcement, the TDN has submitted a series of questions, to which TSG has responded only once. “For now, the [Sunday] statement is going to be our comment around the story. We look forward to being in touch in the future about our plans,” wrote Stefan Friedman, a TSG spokesperson, last Monday.

The silence is troubling for the thousands of breeders, trainers, owners, grooms, hotwalkers and phalanx of individuals attempting to make a living from horse racing in the state.

With the clock racing towards the end of the year–when many will pack up bag and box, van and car, to start life anew on Christmas Eve–they face stark decisions about their professional futures and personal lives.

Do they try to make a go of it in Southern California, or do they ply their trade in another state? What's best for their families? What kind of investments should they be making at this year's sales? How do they shape their breeding plans for next year? And what kind of industry will exist to justify such investments?

These are tough questions to grapple with at the best of times–much harder still beneath a veil of uncertainty and not a little fear. The edifice of any successful racing operation is built upon foundation stones laid years, decades sometimes, in advance.

With this in mind, the TDN is publishing the questions submitted each day to TSG, and again asking when can stakeholders expect the answers they need to make those long-term business decisions that ensure this industry's future.

1 – It appears that TSG didn't give all the relevant stakeholders much (if any) of a prior warning before making the announcement. If that is indeed the case, why did TSG decide to make the announcement in this abrupt fashion?

2 – How many horses does TSG expect to be relocated to Santa Anita from GGF? And has TSG spoken with the connections of those horses about possibly making the move?

3 – Many of the horses at Golden Gate don't seem an obvious fit for the Santa Anita/SoCal circuit. Is TSG concerned that fewer horses than expected will make the move? Is TSG prepared to offer cheaper claiming races at SA (cheaper than $10,000) to accommodate the lower-level horses currently stabled at GGF?

4 – What was the reason for closing GGF? Are they economic reasons? If not, are the reasons to do with the recently proposed Berkeley City Council ordinance? Or are they a combination of factors?

5 – Did the economics from Computer Assisted Wagering (CAW) play any part in the decision to close GGF?

6 – Furthermore, TDN understands that the GGF purse account was in deficit to the tune of around $1.9 million. Did this play a part in the decision to close GGF? If so, is Santa Anita's purse account in the red or black?

7 – Is it true the state is stepping in to turn GGF into a park?

8 – What are TSG's thoughts about CARF's proposal to make Cal Expo a year-round hub of racing in the north?

9 – What specific long-term plans does TSG have for Santa Anita? Will TSG be making any substantial financial investments into the property, to show stakeholders that the company is sincere about the long-term viability of the facility?

10 – On top of that, will TSG be making any investments in the Santa Anita backstretch–in particular, to vastly improve living conditions for the backstretch workers living there?

11 – Does TSG intend to purchase the Arizona Downs facility?

12 – Will TSG extend GGF's closure date to accommodate the needs of California industry stakeholders in making the necessary adjustments to their businesses?

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Turf Paradise Nears Sale for Development; Horsemen Eye Arizona Downs Revival

News — Wed, 12 Apr 2023 20:28:48 +0000

Turf Paradise in Phoenix is reportedly in the due-diligence phase of negotiations to be sold for development.

Racing is expected to continue only as a placeholder for several more seasons while new uses for the 67-year-old venue go through the planning, approval and construction stages.

The incoming owner of Arizona's primary commercial Thoroughbred track is expected to transition the property in pieces to “industrial and multi-family uses,” according to the online media outlet Axios Phoenix, which first broke the story Apr. 12.

Leroy Gessmann, the executive director of the Arizona Horsemen's Benevolent and Protective Association (AZHBPA), told TDN in a Wednesday phone interview that a longer-term hope involves Arizona Downs, 82 miles north in Prescott Valley, being potentially sold to 1/ST Racing & Gaming, which might then pick up enough dates to sustain a circuit.

The possible sale of Arizona Downs to 1/ST Racing has been percolating since last year. 1/ST Racing owns Gulfstream Park, Santa Anita Park, Golden Gate Fields, Pimlico Race Course and Laurel Park. The firm's chief executive officer, Aidan Butler, did not return a voicemail message seeking confirmation of 1/ST Racing's involvement prior to deadline for this story.

“I understand that [1/ST Racing] has a contract with Arizona Downs, and they're kind of in the same stages,” Gessmann said. “They're going through their due diligence right now. I know [1/ST Racing] wants to continue racing at Arizona Downs. How it all ends up, we're all in kind of a holding pattern here to see how things develop.”

The relationship between the Arizona racing community and Jerry Simms, Turf Paradise's owner for 23 years, has been acrimonious. An extraordinarily long pandemic closure, multiple racetrack safety issues, and prolonged fights over off-track betting privileges, simulcast signals, and how the horsemen's purse money can be used have roiled in the courts and at racing commission meetings.

Simms has been quoted in the press since 2020 as saying that he operates Turf Paradise at a “huge negative” financially. He quipped to Axios Phoenix this week that “I'd rather spend time with my grandkids” than continue running the track.

Axios Phoenix reported that James Watson, the managing partner of CT Realty out of Dallas and Newport Beach, California, said he's “under contract” with Simms to purchase the property. Neither Simms nor Watson would provide Axios Phoenix with details of their negotiations, citing a confidentiality agreement.

Gessmann told TDN it's evident by what's happening around the track that the deal is getting nearer to closing.

“Mr. Watson is going through his due diligence,” Gessmann said. “The last couple weeks there have been companies here inspecting things, doing ground tests, and I know they're also working on rezoning possibilities.

“Our understanding is it's going to be developed in stages, and they're going to race for one to two, [maybe] three more years depending on the development process,” Gessmann continued. “With both parcels of land, I think they're right at 200 acres. There's a lot of empty ground here. They're going to start with the empty ground and then work towards the racing operation, I guess.

“We hope Mr. Watson will continue racing for a couple of years until we can make other arrangements,” Gessmann said.

“The horsemen are somewhat excited, yet also disappointed,” Gessmann said. “We're excited that Mr. Simms is moving on and relinquishing his hold in Turf Paradise. However, Mr. Watson is unsure on the future of racing, which is a possibility we all knew when it went up for sale, that it could get sold to a land developer.”

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Multiple Moving Parts in Monarch, AZ Simulcasting Morass

News — Thu, 25 Aug 2022 13:50:44 +0000

For over two years, the simulcasting signal from 1/ST-operated racetracks, along with several others around the country, has been missing in Arizona–the residual fall-out from a long-simmering dispute between the owners of Arizona Downs and the arm of The Stronach Group (TSG) tasked with distributing the company's signal.

In both California and Arizona, stakeholders argue that this simulcasting blackout has hit both the bettors and the industry–by how much appears open to debate.

A recent analysis by the Arizona Horseman's Benevolent & Protective Association (AZHBPA) of the projected lost revenue to California purses between 2020 and 2021 pinned the number at more than $1,1 million, and another nearly $900,000 in lost track commissions.

The estimated loss to Turf Paradise alone between the years 2021 and 2022 amounts to more than $1 million, said Vince Francia, general manager of Turf Paradise. For Arizona Downs, however, the impact has been “negligible,” say track operators.

Scott Daruty, president of TSG's Monarch Content Management, also downplays the impact of the hamstrung signal to Monarch's bottom-line, saying that the resulting lost fees is only a fraction of Monarch's total business. He also disputes the AZHBPA's projected losses to the California purse account.

Monarch's umbrella extends over several California tracks–including Santa Anita Park, Del Mar, Golden Gate Fields and Sonoma County Fair–as well as Turf Paradise, Lone Star Park, Gulfstream Park, Laurel Park, Pimlico, Rosecroft Raceway, Monmouth Park, and Meadowlands.

Against the backdrop of this ongoing dispute, there are indications that 1/ST is eyeing potential inroads into the Arizona marketplace.

Within recent months, representatives of 1/ST have visited Turf Paradise with the intention of possibly purchasing the facility, said Francia. AZHBPA executive director, Leroy Gessman, said that 1/ST recently did the same at Arizona Downs.

According to two sources familiar with the situation, 1/ST has made a thus far unsuccessful bid to purchase Arizona Downs.

Daruty declined to comment whether 1/ST has indeed made any formal bid to purchase Arizona Downs but called the Arizona marketplace “one that appears to have potential.”

“At that point, you're negotiating with a terrorist, right?”

The genesis of this rather convoluted simulcasting dispute goes back years.

In summary, when Arizona Downs reopened for live racing in 2019, Monarch sent its signal to the track itself but not to the track's network of Off-Track Betting parlors (OTB), and at a higher rate than its Arizonan neighbor, Turf Paradise.

In contrast, Monarch distributed its signal to Turf Paradise and its network of some 60 OTB's.

When asked about the contracting disparities between both Arizonan tracks, Daruty said at the time that Arizona Downs had been “consistently delinquent in its payments to our racetracks.”

In an effort to resolve industry stakeholder disgruntlement, the state passed in 2019 a law requiring all simulcast providers that send their races into Arizona to offer the products uniformly among all tracks and all their OTBs.

The following January, the Arizona Racing Commission passed a motion requiring the three racetracks in the state–Turf Paradise, Arizona Downs and Rillito Park–to comply with that law.

The commission also sent a letter to Monarch to “stop sending any simulcast signals to Arizona permittees racetracks and/or their additional wagering facilities.”

To all intents and purposes and despite various legal maneuverings in the interim, that state of affairs has remained, and Monarch has not beamed its signal into Arizona since.

At the start of Santa Anita's most recent winter meet, Monarch approached the operators of Arizona Downs with an offer of all Monarch content to the entire Arizona marketplace, including to Arizona Downs' network of OTBs, said Daruty.

According to Daruty, the operators of Arizona Downs made several unilateral modifications to the contract which were unacceptable. They included reducing the fees paid to Monarch tracks below the previously contracted rate between them, and a requirement for Monarch to “pre-approve” new simulcast locations without the ability to conduct legal and regulatory due diligence, said Daruty.

“At that point, you're negotiating with a terrorist, right?” said Daruty, once again raising Arizona Downs' reported history of delinquent payments.

“We can't abandon our principles and abandon our reasoned business approach to distributing our signals,” Daruty added.

Detailing a back-and-forth process of negotiations, Tom Auther, an Arizona Downs owner and partner, said that Monarch initially offered Arizona Downs a contract with non co-mingled pools–what he described as an immediate non-starter–and then an offer charging the track overall as much as twice what Turf Paradise was paying.

Monarch subsequently declined Arizona Downs' counter-offer, which was to pay Monarch 20% more in fees than Turf Paradise, said Auther.

“Twenty percent's still a lot of money,” Auther said. “If we paid what they want us to pay, the horsemen would not approve it because there'd be no money left–only three percent left in horse purses.”

When asked about Arizona Downs' reported history of defaults, Auther said that they had offered Monarch to escrow an adequate amount of money to offset the anticipated costs. “They refused it,” said Auther.

In an effort to understand the impact from the nixed signal into Arizona on California's horsemen, the Arizona HBPA contracted the firm Global Racing Solutions–founded and operated by Pat Cummings–to run the numbers.

According to GRS' calculations, California horsemen lost $1,115,000 in purse contributions between 2020 and 2021, and California track operators missed more than $877,000 in commissions during that same period.

To put that into perspective, California's purse total in 2021 was some $118 million.

TDN reached out to Thoroughbred Owners of California (TOC), who declined to comment.

As for Monarch, when they last ran the numbers, “the host fees that the Monarch tracks received out of the state of Arizona were less than one percent of the total host fees received by the Monarch tracks,” Daruty said. “It just doesn't move the needle for us.”

Daruty also said that the AZHBPA's projected California purse loss numbers were over-estimated, though added that Monarch hadn't run their own calculations.

And what of the potential impacts on the Arizona tracks? Again, there are mixed-signals.

Between 2021 and 2022, Turf Paradise lost an estimated $1,011,317 due to the missing Monarch signal, the estimated loss to the purse account was $944,915, and the estimated loss to the Regulatory Wagering Assessment (RWA)–a wagering tax used to fund the state racing department–was $61,139, according to Francia's calculations.

Auther, however, shared handle numbers with the TDN–taken, he said, from the state commission's website–comparing the year 2021 with 2018, when Turf Paradise received the Monarch signal.

According to Author's numbers, Turf Paradise lost in 2021 more than $8 million in overall handle compared to 2018. Turf Paradise operated in 2021 with 13 fewer OTBs than in 2018, however, and those OTBs were closed for 1038 days more than in 2018, according to Auther's calculations.

Auther also estimated that the annual hit to Arizona Downs' business without Monarch has been negligible. “It exists,” said Auther, about the loss. Horseplayers, however, have simply adjusted their betting patterns to other available options, he said, adding that the loss of the Monarch product to Arizona Downs was one of quality rather than numbers.

More broadly, Arizona HBPA president Bob Hutton broached what he sees as some of the more deeply felt impacts to the state's racing industry.

“With the state of racing the way it is, when we're trying to get fans to the sport, why is this good?” said Hutton, critical of Monarch's part in the negotiations. “This is costing horsemen all over the country money, and why? I don't get it.”

Turf Paradise, it should be noted, has been for sale since at least 2020.

According to Francia, 1/ST representatives recently toured the track with a potential eye to purchase the facility. “They have not made an offer but they have looked at the track,” he said.

According to Gessman, representatives from 1/ST have similarly toured Arizona Downs, adding that he was present at the visit.

According to two sources who wished to remain anonymous, 1/ST made the owners of Arizona Downs an offer for the facility which was subsequently declined.

Both Auther and Daruty refused to comment on any possible offer that 1/ST has made for Arizona Downs.

Though calling the Arizona marketplace one with potential, Daruty added that “I think all the infighting and frankly some of the regulatory dysfunction has just left it in a place that's not healthy.”

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Weekly Stewards and Commissions Rulings: Aug. 1-7

News — Tue, 09 Aug 2022 17:53:12 +0000

Every week, the TDN publishes a roundup of key official rulings from the primary tracks within the four major racing jurisdictions of California, New York, Florida and Kentucky.

Here's a primer on how each of these jurisdictions adjudicates different offenses, what they make public (or not) and where.

With the Horseracing Integrity and Safety Act (HISA) having gone into effect on July 1, the TDN will also post a roundup of the relevant HISA-related rulings from the same week.

CALIFORNIA

Track: Del Mar

Date: 08/07/2022

Licensee: Kent Desormeaux, jockey

Penalty: Sixty-day suspension

Violation: Disorderly conduct

Explainer: Having now appeared for a formal hearing held at Del Mar Race Track on July 29, 2022, LATS Ruling #55 issued at Santa Anita Park on March 4, 2022 is set aside. Jockey Kent Desormeaux is suspended for 60 days (August 8, 2022 thru October 6, 2022, inclusive) for violation of California Horse Racing Board rule #1874 (Disorderly Conduct – aggressive behavior in RV park – [second offense]) at Del Mar Race Track on November 23, 2021 and violation of CHRB Rule #1485(d) (License Subject to Conditions and Agreement – failure to abide by written agreement with the Winners Foundation).

Furthermore, Kent Desormeaux shall sign a testing agreement with the California Horse Racing Board while licensed in California and is ordered to be evaluated by the Winners Foundation and shall abide by the recommendations of that organization. Failure to do so may result in a suspension of his license. During the term of this suspension all licenses and license privileges of Kent Desormeaux are suspended and pursuant to California Horse Racing Board Rule #1528 (Jurisdiction of Stewards to Suspend and Fine) Kent Desormeaux is denied access to all premises in this jurisdiction.

FLORIDA

The following were only recently posted on the Association of Racing Commissioners International's “Recent Rulings” website and are not timely.

Track: Gulfstream Park

Date: 06/21/2022

Licensee: Teresa Pompay

Penalty: $1000 fine