Arizona Downs | Horse Racing Free Tips

New Twist In Arizona Racing Saga Tabled As Commission Requests Hearing On Monarch Contracts

Those following the ongoing saga of racing and simulcasting in Arizona walked away from the latest meeting of the Arizona Racing Commission on Oct. 8 with limited clairity. Negotiations are ongoing between Turf Paradise and the horsemen regarding a live meet at the Phoenix track in 2021, which under current terms is likely to take place Jan. 2-May 1. While commission staff have seen a proposal to race those dates, the group held off voting on it until a final agreement is reached between the two parties.

(Read more about the dispute between Turf Paradise and the horsemen in this Sept. 23 column from Ray Paulick.)

Commissioners did ask track officials about rumors the facility has sold off certain equipment and let the track and barn area slide into disrepair. Representatives from Turf Paradise assured the commission that if racing dates were granted, the track would be safe for horses and humans in time for the meet to begin. Turf Paradise general manager Vincent Francia said “none of the essential equipment” like ambulances, water trucks and other maintenance vehicles had been sold.

Turf Paradise representatives also hoped the commission would grant a reduction in the minimum number of live racing dates required to operate OTBs in the state, given the current Arizona and federal-level state of emergency declarations. The commission delayed action on this question and requested more information about the language of existing rules allowing a reduction in minimum live racing dates as it may apply specifically to a pandemic.

For many, the most critical item on Thursday's agenda was consideration by the commission of simulcast agreements between Monarch Content Management and Arizona Downs in Prescott Valley, and Monarch with Turf Paradise. Monarch, owned by The Stronach Group, brokers simulcast contracts on behalf of Stronach tracks Santa Anita, Golden Gate Fields, Gulfstream Park, Laurel Park, Pimlico, plus Del Mar, Monmouth Park and Tampa Bay Downs.

Attorney Kory Langhofer, representing Arizona Downs, revealed that the most recent draft of the agreement Monarch sent the track would require money wagered at Arizona Downs OTBs to be held in a separate pool and not commingled into the host track's pools.

“It's going to have a profound effect on the commercial viability of those sites,” Langhofer said.

Langhofer also suggested he understood the copy of the contract offered to Turf Paradise by Monarch did not have this restriction, instead allowing money wagered at those facilities to go into the host track's pools as is customary.

“It hasn't been approved and my client won't approve it because it's unreasonable,” said Langhofer, who urged the commission not to approve the contract between Monarch and Turf Paradise either. He was unsure whether Monarch imposed similar restrictions on operators in other states.

Arizona has a law on the books, similar to one in California, requiring that if a company sells simulcast signals to one track in the state, it must sell to all. Attorneys for Turf Paradise, which is apparently in favor of Arizona Downs OTBs being restricted this way, pointed out that the law doesn't say anything about what the pool arrangements should be. Language in the rule that contracts can't be “anti-competitive and deceptive” refer to the rates charged for signals, not to the specific constructs of a deal. Scot Claus, an attorney for Monarch, accused Arizona Downs of repeatedly defaulting on its contracts with Monarch and said that out-of-state tracks sending their signal into Arizona cannot be forced to take wagers into their pools.

Ultimately, the commission voted unanimously to hold a special hearing to consider the Monarch contracts, with instructions that attorneys for each party should file briefs of no longer than 25 pages before the next racing commission meeting. The next regularly scheduled commission meeting is Nov. 12, 2020.

The post New Twist In Arizona Racing Saga Tabled As Commission Requests Hearing On Monarch Contracts appeared first on Horse Racing News | Paulick Report.

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Arizona Horsemen Secure Some Disputed Purse Funds

At the six-month mark of the shutdown of live racing in Arizona that is the result of both the pandemic and a prolonged fight over off-track betting (OTB) privileges, the Arizona Horsemen’s Benevolent and Protective Association (AZHBPA) has reportedly secured some of the disputed money from the horsemen’s account that had been controlled by Turf Paradise and placed it into a trust to pay purses if and when racing resumes elsewhere.

This news was shared in the form of a widely circulated email that made the rounds on social media Monday. It was purportedly written to the AZHBPA membership by National HBPA president Leroy Gessmann and dated Sept. 12.

“[AZHPA president] Bob Hutton, with suggestions from the Board members, was able to acquire part of our purse fund from Turf Paradise,” the email stated. “These funds are now in our control in a trust account and will remain there until our legal issues with Turf Paradise are resolved. When they are available, they will only be used for purse money, for whatever track wants to run a live meet! We have retained an attorney that is working on getting the rest of our money and all money earned in 2021 by Turf Paradise’s OTBs. If [Turf Paradise] won’t host a live meet for Arizona horsemen, they should not be able to profit from our business.”

The state’s two commercial tracks are Turf Paradise in Phoenix and Arizona Downs 82 miles north in Prescott.

Turf Paradise ended its spring meet prematurely Mar. 14 as the COVID-19 pandemic swept the nation. Last month track management withdrew its dates request for a traditional 2020-21 autumn-to-spring meet, citing liability concerns related to COVID-19.

Arizona Downs is the former Yavapai Downs. It reopened in 2019 under the new name but called off part of its race meet because of a simulcasting signal dispute that eventually wound up in the courts. Its 2020 summer season never started as scheduled because local health officials would not extend permission to reopen under pandemic conditions.

At a Sept. 10 Arizona Racing Commission meeting, members of the horse racing community lobbied for officials to help clear the way for expanded dates at Arizona Downs.

“Arizona Downs future with racing is totally dependent on the proposal that Arizona Downs presents to the HBPA board,” the email stated. “The HBPA will make sure the purses are funded properly and that the management team is performing to the standards that the Arizona Horsemen deserve…The HBPA is about live racing and any permittee that doesn’t support live racing will not be recognized by our group. No permittee will be able to operate OTBs after Dec. 31, 2020, without having a live meet!”

At the Sept. 10 commission meeting, chairman Rory Goree said that moving forward, the commission needs to “start looking at what the requirements are regarding live racing versus having an OTB [and] what powers we may have regarding if [a licensee is] not offering live racing [but still operating] OTB networks.”

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AZ Breeders: ‘No Future’ Without Commission Help to Kickstart Live Racing

Thursday’s Arizona Racing Commission (AZRC) meeting opened with the chairman Rory Goree asking stakeholders to “refrain from discussing anything” related to a controversial appeal over who controls purse account money that is scheduled for the October meeting. And it ended with Turf Paradise owner Jerry Simms apologizing for the frustration the state’s Thoroughbred community feels over his decision not to incur liability by running a 2020-21 meet during a pandemic.

In between those brief, book-ended statements that define the currently closed status of racing in Arizona, commissioners heard a slew of impassioned pleas from breeders, owners, and trainers all desperately imploring the AZRC to take some form of action so that live racing can get back up and running in the state for the first time since March.

Last month, Turf Paradise withdrew its request for a traditional autumn-through-spring meet, citing COVID-19 concerns. Arizona Downs months ago called off its summer race meet after failing to secure permission top open from local health officials. Beyond the pandemic, a prolonged fight over off-track betting (OTB) privileges, simulcast signals, and how the horsemen’s purse money can be used has been batted back and forth in the courts and during commission meetings, clouding the future of the state’s two commercial tracks.

“Anybody sitting within the Arizona breeders has seen the value of their horses drop 50%-plus, with no place to run our horses in-state,” said Kevin Owens, a board of directors member of the Arizona Thoroughbred Breeders Association. “There’s a couple of big farms and there’s a lot of people who have people who have ‘backyard’ horses that count on Arizona as a state to facilitate a racing facility to bring these Arizona-breds to track. I don’t know what’s going to happen. I would certainly hope the commission is getting behind Arizona Downs to try to assist them in any way possible to get their meet open [and] operating.

Owens was referring to the possibility of Arizona Downs taking on some winter race dates, an idea that is feasible but depends in part upon the yet-to-be-decided status of the purse account.

“We have no future,” Owens continued. “We’ve been destroyed in this business. Our studs aren’t worth anything. We have a sale coming up [Nov. 19], that by all potential is going to be a bloodbath. We are continuing with our sale, [and] I would encourage the commission to maybe show up at the sale and see what we’re about. We haven’t had much interest from you guys in actually getting into our business and seeing what we do and what it costs to sponsor a sale like this and raise a bunch of horses.

“We’ve given more than one chance to Turf Paradise, and it’s time to move on. There’s been no good faith put forth by that facility at this point, and I believe that we should put everything that we have behind Arizona Downs, as it seems like they are the only ones that are going to have a chance to survive in this state. We need to go forward with an entity that’s concerned with the racing public, the horsemen, and the breeders.”

Breeder, owner and trainer Stacy Campo told commissioners that, “We really need this to happen. I have 18 horses ready to go into training immediately. Twelve of them are Arizona-breds. And you know, we’ve worked very hard to be able to sit here and be the backbone of racing in Arizona. And I hate to say it, but the breeders in Arizona are the backbone. We do supply the stock [and] we need to get live racing. Arizona Downs can do it. I’ve got the horses and the supply to go up there and run.”

Cynthia George, who said she is an owner, trainer, pony person, and exercise rider, underscored that, “the time is critical, because people can’t hold on much longer. Many [out-of-state] meets are coming to a close, and we all need a place to go…. If there’s [an in-state] track available, we need to open.”

Owner Freddy Alvarez added that, “Arizona Downs is the future for the horsemen. We need a place to go. We own 12 horses…. I know [the commission does its] best, but all it takes is a couple of eyes at Turf Paradise to see there’s nothing going on there,” with regard to reopening in the conceivable future.

Robert Hutton, the president of the Arizona Horsemen’s Benevolent and Protective Association, said that, “the horsemen of Arizona are not looking for handouts, but only the opportunity that is offered when a live meet takes place…. It is time for this industry to move forward without the constant distraction that has hindered us for years.”

Not a single one of the 10 horse community members who spoke at the meeting expressed constructive or encouraging sentiments for Turf Paradise over Arizona Downs.

Yet despite all the support thrown behind Arizona Downs, Tom Auther, an owner and partner in Arizona Downs, said he had “nothing to report” in the section of the AZRC agenda devoted to updates from the tracks.

Jerry Simms, the owner of Turf Paradise, did have something to say during the public commentary period after most of the horse community members had spoken. He began by saying that he understood their frustration, but that he felt like he was in a “no good deed goes unpunished” position.

Simms said he has been involved in the Turf Paradise ownership for 20 years, and that the track has been operating at a “huge negative” in recent years.

“The track owes me $8 million. And there hasn’t been a distribution since 2005. But I was happy—and am happy—to continue doing that,” Simms said.

But then, Simms added, COVID-19 changed everything.

“I made the decision that I didn’t want to have the liability,” Simms said. “There are many lawsuits out there where people are suing, and claiming that [business owners are negligent for operating in a pandemic]. And it was a difficult decision for me to make. But we sat down with my top management and realized this is what we had to do. We just didn’t want the liability of putting people in that kind of risk. But I completely understand the frustration that the folks have had. I’m sorry about that part. That’s all.”

Although no immediate lifeline for the return to live racing was proposed by the AZRC, Goree said that moving forward, his organization needs to “start looking at what the requirements are regarding live racing versus having an OTB. I would just want the department to maybe start looking at that and report back to us as to what powers we may have regarding if [a licensee is] not offering live racing [but still operating] OTB networks.”

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Uncertain Future for Arizona Racing Industry

At the Arizona Racing Commission meeting last month, representatives from the state’s flagship racetrack, Turf Paradise, announced that they wouldn’t be running their scheduled 2020-2021 race meet between November and May, blaming a variety of factors including health concerns due to the global pandemic, and economic question marks surrounding the operations of Off Track Betting (OTBs) facilities.

That decision has sown seeds of confusion and doubt among many involved in the state’s racing industry–a scenario complicated by ongoing friction between the horsemen and Turf Paradise management.

“Definitely a huge impact,” said trainer Jared Brown, who ordinarily is based in Canada during the summer and at Turf Paradise in the winter. Brown’s southern sojourn is usually a time for restocking his stable for the year ahead, but without that opportunity this winter, “it will impact my business a big deal,” he added.

With the next commission meeting looming this Thursday, perhaps the most pressing issue is this: What may happen to the 2020-2021 race dates, seemingly up for grabs?

“I don’t know what the future is,” said Kevin Owens, an Arizona-based breeder and former president of the Arizona Thoroughbred Breeders Association (ATBA). “I think it’s important to get Arizona open. Give some hope to the people.”

Tom Auther, an owner and partner in Arizona Downs, said that he has informed the Arizona Horsemen’s Benevolent and Protective Association (AZHBPA) that his track could be in a position to conduct a truncated meet this winter. But first, funding would have to be secured–another bone of contention thanks to a fight over who controls the funds in the purse account.

According to Vincent Francia, Turf Paradise general manager, the funds contractually belong to Turf Paradise. “The purse monies are for a specific purpose,” said Francia. “And that is for the horsemen that race at Turf Paradise.”

The horsemen, however, argue that they have control over the purse account. As per a prior arbitrated settlement, “that purse money belongs to the horsemen,” said Leroy Gessman, president of the National HBPA, who added that the account currently totals an estimated $2.1 million. “It’s the property of the HBPA,” he said.

The AZHBPA has asked the racing commission to make a ruling on the dispute, said Gessman, who added that the issue is an item on the agenda at the October racing commission meeting. However, “it is still unclear if they have the authority or not” to make that ruling, he wrote, in a follow-up email.

Indeed, according to Francia, such a dispute can only be settled through third-party arbitration, conducted separately from the commission. If the purse money is released to the AZHBPA, that would pave the way for Arizona Downs to possibly stage a truncated meet this winter, said Gessman.

For that to occur, the facility would need about two months of preparation to make it safe for training and racing, said Auther, who added that Dennis Moore, the Southern California-based expert in racetrack surfaces, recently visited Arizona Downs to examine the track surface.

“We’ve never raced in the winter before,” said Auther, explaining some of the racetrack surface safety issues that would need to be navigated. Ultimately, he added, ongoing uncertainty in the state makes planning difficult. “We just don’t know what’s going to happen,” he said.

What’s more, the door appears to remain ajar for Turf Paradise to reverse course and conduct a race meet this upcoming winter.

“I don’t want to give our horsemen false hope,” Francia said, stressing the unpredictable nature of the pandemic. “What I am saying is we’re keeping all of our options open.”

These developments form just the latest chapter in a fraught relationship between the horsemen and Turf Paradise. When the facility officially closed its doors at the beginning of May, for example, track management gave the AZHBPA 30 days to remove its belongings from its Turf Paradise office.

These tensions persisted prior to the August commission meeting, when the AZHBPA emailed the operators of Turf Paradise a list of 17 questions and demands surrounding such issues as the multi-year agreement that the HPBA entered into with Turf Paradise, stable area renovations, and contingency plans in the event of a second wave of COVID-19 infections this winter.

A number of horsemen interviewed for this story voiced concern about Turf Paradise management recently selling off track equipment and certain items of the facility–a possible indication, they said, of the track’s lack of long-term commitment to the sport.

“This is something we do every year,” Francia explained. “If we had to conduct a race meet, I would need a couple weeks to put it together, but we could do that.”

When asked if Turf Paradise is indeed for sale, Francia responded that Turf Paradise owner Jerry Simms is open to offers. “That’s certainly one of the options we’d look at,” said Francia. “But there are no buyers out there right now for Turf Paradise.”

Others have more immediate concerns. According to Arizona racing commissioner Rory Goree, stakeholders need to “put their differences aside” in order to thrash out a way forward “that works for all of us.”

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