Arizona Racing | Horse Racing Free Tips

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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Arizona Commission Meeting: ‘The Eyes Are On Us’

If there's a main takeaway from Tuesday's Arizona Racing Commission Meeting, it's an acknowledgement from officials and track management that the racing industry is monitoring Turf Paradise closely.

“We've got to do a better job at coming up with answers and coming up with solutions,” said commissioner Rory Goree, arguably the most outspoken member of the commission about Turf Paradise's poor equine safety record.

“I'm hopeful that here, in the near future, we as a commission will be able to talk about some of the solutions and ideas and make Arizona the light it needs to be, that we're making the change, doing the right thing instead of being the laughingstock that we are right now,” Goree added. “The eyes are on us.”

Repeated mention was given to racehorse Creative Plan (Creative Cause), who last raced at Turf Paradise Jan. 7, when a tailed off last of nine.

Creative Plan was recently euthanized due to irreversible damage to his suspensory ligaments and fetlock joints that had deteriorated over the course of weeks, according to an article in the Paulick Report Tuesday morning.

Between the time he last ran and his euthanasia, however, Creative Plan was sent to an Arizona horse auction, but went through unsold before being abandoned, the article found.

“With Creative Plan, there was a lot of finger-pointing going on, trying to cover our own butts,” admitted Goree.

In her latest track safety report, Sue Gale, the Arizona Department of Gaming's chief veterinarian, explained that Turf Paradise's race-day equine fatality rate was “creeping up.”

In a special commission meeting earlier this month, Gale said that the racing-related catastrophic injury rate was 2.8 fatalities per 1000 starts this season at Turf Paradise.

In her report Tuesday, Gale said that the fatality rate was now around 2.98 per 1000 starts at Turf Paradise.

According to the Jockey Club, the national fatality rate for 2020 was 1.41 per 1000 starts.

Gale said that she has included Creative Plan's death in the track's race-day fatality rate because he was injured during a race, “and then was put to sleep, or euthanized, this past week.”

However, another horse that fractured its fetlock earlier on in the meet, and who, despite efforts at rehabilitation was euthanized three months later, was not included within the track's race-day fatality numbers, Gale explained.

More broadly, official veterinarians, said Gale, have lately been scratching more horses on pre-race exams.

“It does seem that now we're about half-way through the meet, some of the horses are showing some wear and tear,” said Gale.

Nevertheless, one ongoing problem has been the lack of veterinarians “or administrative assistance” to help identify and red-flag horses at greater risk of catastrophic injury at Turf Paradise prior to pre-race exams, admitted Gale.

Gale said that, while she has been doing this task on a limited basis, “having someone on the staff that can do this on a more regular basis” would likely make a difference.

Rudy Casillas, the Department of Gaming's deputy director and racing division director, reported that he has asked Gale to start requiring the horsemen to submit updated veterinary medical records of every horse that is entered to race.

“That way, the veterinarians can review those medical reports of each horse that is entered to race and get a better sound picture of that horse's capability and physical status and medical status,” said Casillas. “That will be implemented coming forth, and, hopefully, that makes a difference.”

Another potential nexus of change is the state's claiming rules, said Goree.

“Seems like every morning I read the board and find out that there's a horse that's moved on, just wandering around on the backside, and I think it's because these horses are getting claimed so much they don't know where they live,” said Goree.

According to Goree, he has spoken with Rudy Casillas, the Department of Gaming's deputy director and racing division director, about the claiming rules.

“I know he's going to talk to the AG [attorney general] and see what we might be able to do,” said Goree.

Turf Paradise general manager, Vincent Francia, added more texture to the issue, reporting that there have been 441 claims thus far this season.

“That is a record here at Turf Paradise,” said Francia, pointing as a reason to the track's purses–now supplemented with both state and federal funds–with the average purse working out at about $19,000 per race.

“When you have a purse structure like we have, a lot of claiming is going to go on,” Francia said.

Another ongoing question mark at Turf Paradise has been the condition of the racing surface.

This week, Turf Paradise drafted in veteran track surface consultant Steve Wood to monitor the adding of organic materials and sand to the main track, Francia said.

The organic materials are put in to give the track “bounce” and to help maintain moisture levels, said Francia. The sand is to help prevent clumping of the clay-like materials, he added.

A problem seemingly as intractable as track conditions at Turf Paradise has been a shortage of official veterinarians. Indeed, at the commission meeting last October, Gale suggested putting a call out to practicing veterinarians in the area as an opportunity for them to “pick up some work.”

In an attempt to alleviate the burden, the gaming department has asked for funding for an additional veterinarian in the latest executive budget, said Arizona Department of Gaming director, Ted Vogt.

“It's been our number one funding issue for the past two fiscal years, so we're hopeful it'll get across the line this year,” said Vogt.

Earlier on in the meeting, the commissioners voted to approve Rillito Race Track's three-year racing permit application and the race-dates within that window, despite ongoing questions as to the facility's economic viability.

Casillas said that a prior financial review of the track found that it was “insolvent” with less than $1,000 in its bank account at the time.

Because of the importance of Rillito in the Southern Arizona racing calendar, however, “the department has worked tirelessly with Rillito staff to project Rillito's revenue streams, donations, purse monies, state and federal grant funds that are being provided to Rillito,” said Casillas.

That projected amount comes to roughly $900,000 plus. The department's original estimate of Rillito's costs to operate the race-meet was $1.2 million.

“Therefore, the division strongly recommends that Rillito tighten their belts, and be extremely vigilant and responsible and not expend needlessly,” said Casillas, who added that the gaming division would be monitoring their financial predicament closely.

“We want to openly inform Rillito that on an ongoing basis, the division will scrutinize their financial status, and expect that Rillito meet all their obligations, and more so, adopt generally accepted accounting principles to correct the past few years of disarray,” said Casillas.

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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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Turf Paradise Race Dates Approved, But Doubts Remain Over Meet

In a special meeting Monday morning, the Arizona Racing Commission formally approved the proposed 2021-2022 race dates for Turf Paradise–Nov. 5 through May 7–but hard practical questions remain over what participation at that meet could look like due to an ongoing standoff between the Arizona horsemen and Turf Paradise management.

As a result of welfare concerns springing from a 2020-2021 Turf Paradise race meet marred by a high number of equine fatalities, the Arizona Horsemen's Benevolent and Protective Association (AZHBPA) have stated they will not sign any race-meet contract until a list of track safety upgrades and other facility management-related requests have been satisfied.

Turf Paradise representatives argue that the Arizona HBPA's requests cannot be met in full, and that their efforts to get the facility up to code are sufficient to begin racing Nov. 5.

When asked whether the commission could step in to dictate track safety standards and protocols in the event the two parties fail to reach an agreement in time, commissioner Rory Goree demurred.

“We definitely want to stay out of the negotiation process,” Goree told TDN Monday after the meeting. “I don't want them living under fear that we might do something. I want to give them a chance to come together and do what they need to do.”

In a July 30 letter to Turf Paradise, the Arizona HBPA itemized 25 safety issues and broader management concerns, the primary one being track surface quality.

“Too many horses last year were euthanized or injured to the point they could no longer race,” the letter stated, before asking that Mick Peterson, director of the Racetrack Safety Program, be brought in to examine the surfaces.

During the whole of 2020 and thus far in 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 results from a public record act request.

The other 24 demands in the letter include upgrades and repairs to the backstretch, grandstand and clubhouse, along with a different track veterinarian.

The HBPA takes issue with current Turf Paradise veterinarian, Dr. Verlin Jones. “HBPA will pay 50% as long as it is not Dr. Jones,” the letter states.

To help substantiate their requests, the Arizona HBPA have shared at the last monthly commission meeting Aug. 12 and on social media a variety of pictures of Turf Paradise in various states of disrepair.

In a further ratcheting up of tensions, subsequent to that last meeting–during which Turf Paradise owner, Jerry Simms, stated that the facility could operate a meet this fall “without a contract” with the horsemen–Turf Paradise management issued a proposed stall application, parts of which the Arizona HBPA have taken exception to.

The proposed agreement gives Turf Paradise “the right to end the meet at any time.”

This contradicts one of the HBPA's 25 requests–namely, that the meet be run in its entirety, “unless the commission rules it is not safe to run. We can use the same language as the last agreement.”

Another sticking point for the horsemen concerns new language in the proposed agreement which places the onus of safety and risk squarely onto the trainer's shoulders.

The agreement states: “Applicant agrees that neither Turf Paradise, nor its officers, directors, employees or agents shall be liable for any loss, damage, death or injury of any kind to Applicant or to Applicant's employees, agents, invitees, exercise riders, jockeys or any member of their respective families, property or animals, regardless of whether such injury, loss, death or damage is caused by a condition of the facilities at Turf Paradise and/or any negligent act or omission of Turf Paradise, its directors, officers, employees and agents from any other cause.

“Applicant hereto specifically and knowingly assumes all risks of such injury, loss, death or damage, fully and completely.”

Last week, Simms issued a letter responding to the HBPA's concerns about certain language in the stall application.

The reason Turf Paradise has demanded it retains the right to end the meet at any time is “because of the threat by the AZHBPA to end Turf's ability to simulcast races from other tracks Sept. 23. The line was added to protect the track from a very real threat that would have brought an end to racing,” Simms writes.

In that same letter, Simms also claims that the language concerning liability is taken verbatim from Canterbury Park's stall application.

“It's not a problem for Turf Paradise's trainers to agree to and sign a stall application with this language in Minnesota but it's somehow a violation of those same trainers' rights here in Arizona,” Simms writes.

According to Bob Hutton, AZHBPA president, he has asked to meet with the Arizona Department of Gaming's director, Ted Vogt, and Racing Division director, Rudy Casillas, prior to any sit-down negotiations with Turf Paradise.

“I want to make sure that if we have something in writing with Turf Paradise that they're going to regulate them,” Hutton said, of the department of gaming.

TDN reached out to the department for a response but did not hear back before deadline.

Those attempting to bring together both sides are staking out a position from the fence.

“Obviously it is a facility that needs to have some money put into it,” said Goree, of Turf Paradise. “We can't keep coming back every year making a big to-do–it needs to come up with a long-term plan for our survival.”

At the same time, Goree takes issue with a one-sided levelling of blame, using his experience in greyhound racing as a point of comparison.

“The kennels always blame the track, and the track blame the kennels. There's blame between both of them,” said Goree. “The kennels sometimes would be running dogs they shouldn't have been running. They were running dogs that should have been in adoption.”

And using the fate of greyhound industry in places like Florida–the state last year voted to successfully ban the sport–Goree warned that the very public and acrimonious nature of these negotiations weigh heavily on an industry already under intense public scrutiny for its equine safety record.

“People who want to end racing see this and they will use it,” he said. “Public perception is going to kill us.”

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