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

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

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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Safety Featured at AZ Commission Meeting

At a special Arizona Racing Commission Meeting Wednesday, Turf Paradise's equine safety record was once again a serious bone of contention, with commissioner Rory Goree calling the track's equine fatality numbers “deplorable.”

In her routine track safety report, Sue Gale, the Arizona Department of Gaming's chief veterinarian, explained that 22 horses have died at Turf Paradise since the start of the meet, on Nov. 5 of last year–nine racing-related fatalities, five during training, and eight due to illness.

The racing-related catastrophic injury rate works out to 2.8 fatalities per 1000 starts thus far this season at Turf Paradise. According to The Jockey Club, the national fatality rate for 2020 was 1.41 per 1000 starts.

Last year in Arizona–including both Turf Paradise and Arizona Downs–the fatality rate was 1.94 per 1000 starts, said Gale.

“Unfortunately, this month of January, we did have a week where there were four horse breakdowns within one week,” said Gale, who didn't provide any context on the possible reasons underpinning the fatalities other than to explain that such events are often multifactorial.

“We're waiting on the postmortems that we do on all racing fatalities and we will be having a racing safety committee meeting later this month to go over those reports and see if we can see any common factor that we can focus some attention on,” said Gale, who added that the safety meeting would likely occur after the next Arizona Racing Commission meeting Feb. 15.

Of the commissioners, Goree was by far the most critical of the situation. “We're still killing horses at a terrible rate out there, and I'm sick of it,” he said.

What's more, since the start of the latest Turf Paradise meet, there have been three equine ambulance failures, said Goree.

“One of them, a horse was picked up improperly. Another time, the second, the equine ambulance became inoperable and was unable to assist a horse on the track,” said Goree.

“The third time, an incident in the paddock in what was described as, quote, to me, 'a shit-show with the equine ambulance unable to get into the paddock until the 10th try and an incompetent track vet,'” said Goree.

“We keep killing horses like this, we're going to be out of business,” Goree said. “And I have to ask myself: How did we get to this point?”

One reason, said Goree, is insufficient funding to institute prior recommendations to tackle the state's rocky safety record, which goes back years.

Indeed, the high equine fatality rate during Turf Paradise's 2017-2018 season prompted the issuance of this commission report.

“What happened in 2017, our budget got whacked,” explained Goree. “Somebody went down to the legislature and lobbied to reduce RWA.”

The Regulatory Wagering Assessment (RWA) is a wagering tax used to fund the department.

“We got whacked by a million dollars. We were not able to implement bringing in another state vet. We were not able to implement bringing in another safety steward,” said Goree.

“And he we are, still with the same problems we had in 2017,” he added. “We're still killing horses at a terrible rate out there. And I'm disgusted about it, and I'm tired of it. We need to take action.”

Another key area of concern has been the condition and maintenance of Turf Paradise's training, racing and stabling facilities.

Indeed, an Arizona Department of Gaming inspection of Turf Paradise on Oct 20 last year–a little more than two weeks before the start of the current meet–found numerous human and equine health and safety failures, including a lack of necessary track maintenance equipment, and railings that needed to be fixed or replaced.

Some of the broken turf railing support arms “have sharp protruding points that would easily impale, severely injure or kill an equine or jockey if they were to fall on it,” the report states, before concluding with a list of eight key recommendations.

According to Rudy Casillas, the Department of Gaming's deputy director and racing division director, the agency continues to work with Turf Paradise to upgrade and purchase new equipment, the latter of which has recently included new tractors and a new roller to seal the track.

“We're monitoring with the track superintendent on a daily basis the track condition and whether it needs any soil and materials put into it,” said Casillas. “We have had Turf Paradise hire a consultant to come out, look the track over every couple of weeks and make recommendations.”

Casillas added that the department has inserted a provision into state and federal grant monies being issued to permitted tracks to fund the position of an additional veterinarian.

“That money would be held out to allow the department to hire a department veterinarian in addition to Dr. Gale, so that we can have 100% pre-race exams by certified veterinarians,” said Casillas.

A shortage of official veterinarians has been an ongoing issue in Arizona. Indeed, at the October commission meeting, Gale suggested putting a call out to practicing veterinarians in the area as an opportunity for them to “pick up some work.”

Nevertheless, Gale said Wednesday that Turf Paradise has recently hired a new track veterinarian, Alyssa Butler.

“She and I meet prior to the races to discuss which horses we consider might be of concern, and also after the races when she lets me know which horses have problems,” said Gale. “I think that communication has been key, and is going to maybe greatly improve, or would hope that it greatly improves, our outlook here for the remaining half of the Turf Paradise meet going forward.”

The current Turf Paradise meet is scheduled to end May 7.

Earlier on in the meeting, the latest attempt to return simulcasting signals from The Stronach Group (TSG)-owned racetracks into Arizona crumbled when the commission denied the company's Simulcast Horse Racing Import Signal contracts for Turf Paradise and Arizona Downs.

It has been roughly two years since Monarch–the TSG arm tasked with distributing the company's signal–sent its product into Arizona.

Representatives for Turf Paradise told the commission that the track supported their contract and that the loss of Monarch's signal had cost them millions in lost revenue.

Nevertheless, Kory Langhofer, counsel for Arizona Downs, argued that their contract provided an anti-competitive fee rate when compared to Turf Paradise, that it included an unlawful provision barring Arizona Downs from operating OTB sites within 60-miles of Turf Paradise, and that it unfairly prohibits Arizona Downs from unilaterally expanding its business.

“All three of these things together, we can't make it work,” said Langhofer.

In the end the commissioners agreed, denying the contracts on a 2-1 vote.

There also remains no confirmed race dates this year for Arizona's Rillito Race Track, which ordinarily runs a meet in February and March.

Casillas explained that there have been delays in the permit application process due to the track's questionable financial viability.

“We have discovered some financial concerns,” said Casillas. “We're working with them on a daily basis.”

Casillas added that Rillito projects approximately $120,000 a day in revenues from admission, parking and food and beverage sales.

According to Casillas, the department's own calculations show that it costs Rillito approximately $1.2 million to run the race-meet.

“Without the state and federal monies being contributed to them, they would be running a little shy to run the meet,” said Casillas. “I'm hoping that come the 15th everything is on track that we can proceed with having you review their financial state and determine whether or not you want to make an approval on their permit and race days.”

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Concerns Over Track Conditions, Veterinary Shortage as Turf Paradise Meet Looms

Once again, issues of horse and rider safety at Turf Paradise were a bone of contention during the latest Arizona Racing Commission meeting Thursday, due to a shortage of attending veterinarians at the track and concerns over the overall state of the facility.

The upcoming Turf Paradise meet is scheduled to start on Nov. 5 and run through May 7 next year. There are roughly between 664 and 700 horses currently stabled and training there, with around 1,500 eventually anticipated.

But according to Sue Gale, the Arizona Department of Gaming's chief veterinarian, those horses are attended by a shortage of active veterinarians.

“The main concern that we have, found out that several veterinarians that practice on the backside were not returning to Turf this year,” said Gale, about the venue switch from the recently concluded Arizona Downs meet to the upcoming Turf Paradise meet.

Gale stressed that this shortage applies to attending veterinarians only, not official veterinarians, and she doesn't envisage the scarcity would necessitate a halt to racing.

Nevertheless, Gale added, “it would be a good idea to put some information out to the various practicing vets in the area because certainly there is an opportunity to pick up some work.”

Several stakeholders raised during the meeting concerns over the general condition of the track surface and facility itself–an ongoing problem highlighted by a 2020-21 Turf Paradise race-meet marred by a high number of equine fatalities.

During the whole of 2020 and as of Aug. 19, 2021, 67 Thoroughbreds and Quarter Horses have suffered equine fatalities at Turf Paradise–18 during morning training, 31 during racing, and 18 due to other circumstances–according to a TDN public records act request.

During Thursday's meeting, Gale provided a state-wide update on equine fatality numbers.

According to Gale, there have been 15 race-day fatalities in Arizona so far this year: Two at Arizona Downs (which ran June 1 through Sept. 15) and 13 at Turf Paradise.

This works out, Gale added, to a rate of 1.94 fatalities per 1,000 starts–currently lower than the 2020 statewide rate in Arizona of 3.11.

The 2020 national average was 1.41 per 1,000 starts.

In discussing some of the factors underpinning these numbers, Gale zeroed in on two key variables. The first concerned a lack of comprehensive historical record keeping in evaluating horse soundness.

“We have been doing pre-race exams,” Gale said. “However, we have not been maintaining the records and not making full use of the history of the horses in order to direct greater scrutiny to those horses that might be at higher risk.”

The second concerned a lack of thorough and consistent track surface maintenance standards.

“This requires looking at the composition of the surface, the consistency of that, the depth of the cushion of the surface, the moisture content and what maintenance is done,” said Gale.

During the public comment period, several industry stakeholders took aim at the track conditions and safety protocols at Turf Paradise.

These criticisms included a shortage of outriders and compromised rail support beams that could prove potentially dangerous in the event of a horse collision.

“This surface is not right,” warned trainer Kevin Eikleberry. “We have some purse money–we should have a very good meet. But if we have a racetrack like we have right now, we will not. We will have more breakdowns than we can handle.”

Turf Paradise general manager, Vincent Francia, didn't directly address these criticisms.

Earlier in the meeting, however, Francia explained that much of the work has been completed to prepare the facility for the start of the meet. This includes an apparent fix to a problem with the facility's water trucks, said Francia.

“Should something give us a challenge with one of our water trucks, we have plans to make sure water is put on the track,” said Francia.

When pressed by one of the commissioners, Rudy Casillas, the gaming department's deputy director, explained that the department routinely visits Turf Paradise to conduct inspections, and provides the operators with “updated information” about their findings.

“We've given Turf [Paradise] up until the 20th to get certain things completed and repaired,” Casillas added. “We will continue to monitor as we go forward.”

During the meeting, Leroy Gessmann, the Arizona Horsemen's Benevolent and Protective Association's executive director, broached the impending implementation of the Horseracing Integrity and Safety Act (HISA), and its potential effects on the state industry.

His presentation hit many of the key topics of conversation around the federal bill, including the currently unanswered question of cost, and the status of the various lawsuits against HISA.

“USADA will take over the testing,” Gessman said, of the United States Anti-Doping Agency. “If there is a bad test, they are going to take over the hearings, so, the hearings won't be done any longer by your stewards for Thoroughbreds.”

(TDN recently reported that there'll likely be a tiered approach in the beginning, with the severity of the infraction governing which set of regulatory personnel–either the state stewards or USADA's–will handle such a hearing)

“HISA has put together a committee, I believe it's two or three people, that have started going around to different jurisdictions to meet with the commissions and are giving them a preview of all this information,” said Gessman.

“I would say someone will be contacting the department shortly and you guys will be getting a visit on how things are going to go,” he added.

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