This Side Up: Like It or Not, All in this Together

This time, it's not just the Susans that have a black eye.

You'll forgive me a little hesitation before addressing the 146th running of a race that can seldom have been staged in so febrile a context. Two weeks ago, I was incautious enough in this column to hope for just a nice, boring Derby, after the rancour of 2019 and the dismal postponement of 2020. Then, last week, I asked why even his own industry had been so ungenerous to a trainer who had now won four of his seven Derbys with horses that had at various times changed hands for an aggregate $54,500.

Me and my big mouth, huh? But then I'm no different from anyone else. Every single member of our community will feel like he or she has something at stake in the latest contamination of its standing in the wider world: from our judgement, to our very livelihoods. By the same token, we all have a share in how we go about repairing matters.

Because this is not just a question of whether or not Bob Baffert can cogently secure exculpation. The merits of his case will be tested by due process. For the rest of us, the imperative will remain the same regardless of the outcome. We cannot keep missing our cue.  If all we do is mutter resentfully, every time society turns up the spotlight, then we can't be surprised if the theatre gradually empties until they take off the show altogether.

True, some of Baffert's own peers have responded with candid vexation to the latest and most conspicuous fissure he has opened in perceptions of our sport. They have been irritated by his emotive attempts to depict himself as a victim of “cancel culture”, and to transpose fault from his own regime–which seems, on a charitable reading, at least to be curiously accident-prone–to a lack of regulatory discrimination.

Albeit Baffert has raised the bar, his profession includes many paragons of achievement who have never had so much as peppermint on a horse's breath. These tend to respect boundaries rather than push them. Yet even some who position themselves on the “pragmatic” end of the therapeutics spectrum are exasperated. They view Baffert's history of infringements not as inherently sinister but as tiresome and avoidable.

Some feel that even proceeding to Pimlico with Medina Spirit (Protonico) guarantees a lose-lose scenario both for his connections and for the sport as a whole. To be clear, The Stronach Group have handled an invidious position competently. They couldn't and shouldn't stop the horse running. Nor could they have made their position more accessible and coherent than by a) rightly stating that “we cannot make things up as we go along” while also b) stipulating with Baffert exhaustive pre-competition testing. But it's a horrible situation, all round, with the hapless horse transformed overnight from a symbol of hope to one of despair. If he is beaten, connections will have gained nothing from standing up for his right to run. And if he does win, well, it'll be interesting to hear what kind of reception he gets on returning to unsaddle–and, indeed, when entering the Belmont paddock with his trainer's third Triple Crown on the line.

As we've already suggested, however, the story has already left Baffert and Medina Spirit far behind. (Which is exactly what makes so many people mad at Baffert, even if they consider his horse a perfectly deserving Derby winner.) Predictably enough, the mainstream news agenda has hastened to combine this trauma with various others recently endured by our sport, too wearily familiar to require reprising here. Just as predictably, and just as promptly, apologists have complained of a parallel conflation, so that trainers concerned only for the welfare of their horses are tarred with the same brush as those who cheat brazenly with blood doping or steroids.

But you know what, that's exactly why people out there in Main Street can't tell the difference between, say, Christophe Clement and Rick Dutrow. What else can we expect, if people inside the business keep telling the lay audience that they just don't understand, and please to go away? The choice is clear: insist on our gray areas, or sacrifice them to a corporate clarity of purpose. As it is, what is the world beyond our parish supposed to make of professional associations litigating for what will inevitably be perceived (however unfairly, and however complex the reality) as their constitutional right to dope racehorses?

Medina Spirit this week at Pimlico | MJC photo

We cannot keep putting each new alarm back on “snooze”. It's only human for Baffert, in a corner like this, to be turning round the guns so that it's all someone else's fault: hyperregulation, clumsy veterinarians, whomever. But the rest of us have to do better than that. Whatever the merits of his own case, we're all in that same corner now. And we have to earn, really earn, a way out.

So for now forget all those picograms and thresholds, and whether Baffert is as innocent as he claims, or whether he's a little too reckless, or worse. The fact is that our whole culture, to this point, has enabled far more obviously egregious cases at every point of the compass: guys who are thriving because a) the worst that can happen is that your assistant gets a few days with his name on the racecard and b) too many investors would prefer a piece of a barn's inexplicable strike-rate than to admit that it's actually all too explicable.

Some stables won't even enter at particular tracks, or against particular trainers, because they know they won't be in a clean fight. Many of us, especially when patrons of Messrs. Servis and Navarro professed such amazed indignation, have remembered Captain Renault being “shocked, shocked” that gambling is taking place in Rick's Café. (He is, of course, promptly handed his winnings by a croupier.)

Let's not kid ourselves either that this is only happening at bush tracks, or that we can solve everything by turning Baffert into a pantomime villain. Just as he can't blame everyone else, nor can everyone else blame only Baffert. Do that, and we'll very soon discover how short a slip divides frying pan and fire.

In the end, Captain Renault comes good. But he needs the inspiration of high-principled Victor Laszlo, the one man in Casablanca whose conscience permits him to sleep well. So who, in our business, will step up for that role?

Well, again without presuming any judgement on Baffert himself, it was fascinating to see B. Wayne Hughes of Spendthrift yet again taking a lead. Hughes prides himself on not giving a damn what other people think, so long as he is satisfied that he is doing right. That attitude has not always endeared his rivals, even if they have largely ended up imitating his every move. And you can bet that nothing has panicked Baffert this week more than Spendthrift “hitting the pause button”.

Having always proudly plowed a different furrow from what the English know as “the Establishment”, Hughes has also been in the vanguard in facilitating microshare entry into elite racing. Quite clearly, he understands how the very survival of our sport no longer depends on the jousting of wealthy egos, but on popular engagement. And that requires us to go out there with absolutely nothing to hide.

If we can do that, then we might be granted the respect and time to solve our other problems: breakdowns, say, or what to do about the whip. (Besides, one of the key premises of hay, oats and water is obviously to prevent breakdowns.) But first we have to go into Main Street ready to show everyone, with undiluted honesty and pride, every single thing we do with these beautiful animals.

Oh, one more footnote. The biggest hole in this horse race may not be where everybody is looking. Because whatever Baffert may or may not have to explain, his peers have fallen badly short in presenting just three of the Derby field for the second Classic. If their regimes are really so wholesome, then they shouldn't be scared of what history tells us: that many a Preakness winner has left behind Derby defeat precisely because of a robustness that wasn't artificial.

It's all very well telling Baffert that he must turn out every pocket when he comes to a big race. But he might be entitled to wonder whether one or two of his rivals meanwhile have nothing to hide except their racehorses.

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Homebred ‘Stars’ in the Making for Spendthrift

A pair of Spendthrift Farm homebreds stamped themselves as 3-year-olds to watch for the second half of the season with recent jaw-dropping 'TDN Rising Star' performances.

Following Sea (c, 3, Runhappy–Quick Flip, by Speightstown) earned his 'Rising Star' badge with a flashy maiden win at second asking for Hall of Fame trainer Bob Baffert on the GI Arkansas Derby undercard, good for a gaudy 97 Beyer Speed Figure.

The bay was hustled to the front by Joel Rosario in the six-furlong affair and was pressed on his inside through an opening quarter in :21.89. He began to shake clear heading into the far turn, kicked for home in complete control and was never seriously asked down the lane en route to an effortless 5 3/4-length decision.

Following Sea's final time of 1:09.92 bested the 1:10.13 final clocking posted by Edgeway (Competitive Edge) at the same distance later on the card for filly and mare sprinters in the Carousel S.

Following Sea previously crossed the line a solid second after a wide trip on debut behind stablemate and subsequent GI Runhappy Santa Anita Derby fourth Defunded (Dialed In), but had his number taken down and placed third for causing interference shortly after the start at Santa Anita Mar. 6.

“We always loved him and raised him right here on the farm,” Spendthrift General Manager Ned Toffey said. “He's taken a little bit–he's a good-sized colt and had a couple of ticktack issues that kept him from running earlier. Bob was a little frustrated with his first start–he still showed some talent–but he really put it together Saturday. I loved what I saw. The way he made that move on the turn and put the race away at that point… It looked very easy. It looked very fluid. And it looked very fast. We thought something like that might be there and couldn't be happier.”

As for what's next and potentially stretching Following Sea out going forward, Toffey said:

“It's hard to know how he'll stretch out, but yes, he has the size and shape. Runhappy was definitely best sprinting, but you really never know until you try them. We're eager to find out ourselves.”

Toffey continued, “If a horse is ready to go on and make the move into much bigger company, it's always been really impressive how well Bob does that. For now, we're just gonna enjoy the win and let the horse tell Bob what he's ready to do next.”

Quick Flip–a winner of her first three starts at two, including Tampa's Sandpiper S.–was purchased by Spendthrift Farm carrying Following Sea in utero for $230,000 at the 2017 Keeneland November Sale. She is a half-sister to the Baffert-trained SW & MGSP Qahira (Cairo Prince) and SW Stormin' Lyon (Storm Boot), and hails from the family of GISW Mitterand (Hold Your Peace).

In addition to the stakes-placed Inspeightof (Orb), Quick Flip's most recent produce includes a 2-year-old Into Mischief filly, purchased by bloodstock agent Mike Ryan for $450,000 at last year's Fasig-Tipton Selected Yearlings Showcase, and a 2021 Hard Spun colt. Quick Flip will be bred back to Authentic, per Toffey.

“It looks like a bargain now,” Toffey said with a laugh of purchasing the now 12-year-old mare. “Those are always tricky–buying one in foal can really go either way. We certainly had a lot of respect for Runhappy and liked the mare's page. Thought she would be a good, useful mare for us to breed in house. We're very excited going forward.”

Missy P. (f, 3, Into Mischief–Greer Lynn, by Speightstown) was another no doubt 'Rising Star' carrying the orange-and-purple silks of B. Wayne Hughes's operation, romping by 9 1/2 lengths going 5 1/2 furlongs on debut for Hall of Famer Richard Mandella at Santa Anita Mar. 12.

The full-sister to GISW and fellow 'Rising Star' Mia Mischief forced the issue from an outside second, cruised up to challenge approaching the quarter pole and opened daylight in the stretch under a handride by Flavien Prat to win like a 2-5 shot should. She earned a 90 Beyer Speed Figure for the effort.

Missy P. has posted three moves since her unveiling, most recently working five furlongs in :59.80 (5/22) at Santa Anita Apr. 8.

“Richard has thought about the [GII] Eight Belles [S. going seven furlongs at Churchill Downs Apr. 30] or just running her for some listed blacktype out in California,” Toffey said. “We'll see. That may be the thing to do–get her blacktype before we go bear hunting.”

He continued, “I was out in L.A. this last weekend and was able to see her. The phrase that came to my mind watching her train was, 'coiled spring.' She's really a muscular and well-defined filly. About the time of her first start, Richard said that she weighed 1,200 pounds. That's a big horse. She just looks great. She's a good, correct filly.”

Mia Mischief, heroine of the 2019 GI Humana Distaff S. at Churchill Downs, was sold by Spendthrift for $135,000 as a Keeneland September yearling. She later brought $300,000 as a Fasig-Tipton Florida Select 2-Year-Old and $2.4 million from Stonestreet as a horse of racing age/broodmare prospect at the 2019 Fasig-Tipton Kentucky Fall Mixed Sale.

“Missy P. is much more substantial and much more powerful,” Toffey said. “That's saying a lot because Mia Mischief was a really stout, well-made muscular filly herself.”

Having Missy P. join Spendthrift's racing stable wasn't always the plan. She was scratched from the Fasig-Tipton Saratoga Yearling Sale after getting cast in her stall, Toffey said.

“She's one that we may have dodged a bullet on,” Toffey said. “She just was a little off behind when we were getting very close to needing to ship her up to the sale. We always felt very good about her being fine, but you couldn't take one like that to sell.”

Missy P.'s dam Greer Lynn, a winner of one of four career starts for Hughes, is a daughter of the fantastic producer Roll Over Baby (Rollin On Over), dam of GSWs Roll Hennessy Roll (Hennessy) and Sing Baby Sing (Unbridled's Song); MSW & GSP Majorbigtimesheet (Carson City); SW & MGISP Value Plus (Unbridled's Song); and MGSP Werblin (Unbridled's Song).

Greer Lynn was acquired privately by Spendthrift after RNA'ing for $400,000 as a Keeneland November weanling.

“She essentially was a failed pinhook,” Toffey said. “We bought her with the intention of flipping her back in a yearling sale. She just didn't grow and wasn't at a real impressive stage as a yearling, so we kept her and put her into training. Again, like a lot of horses, we always felt like there was plenty of talent there, but she just had some minor things that kept her from really demonstrating it. She was always a beautiful mare and kind of a classic, Speightstown type. We bred her to a lot of horses in house and maybe we didn't always give her the best opportunity to be successful, but Into Mischief is pretty good at righting those wrongs.”

Sent to leading sire War Front by Spendthrift, Geer Lynn brought $700,000 from SF Bloodstock at the 2019 Fasig-Tipton November Sale, then switched hands again at the 2020 Keeneland November Sale, bringing $750,000 from Summer Wind Equine. Greer Lynn is also represented by a 2-year-old Goldencents filly, purchased by bloodstock agent Mike Ryan for $300,000 at last year's Fasig-Tipton Selected Yearlings Showcase, and a Medaglia d'Oro colt of this year. She aborted her 2020 War Front foal.

In addition to the aforementioned Mia Mischief, the Into Mischief/Speightstown cross is also responsible for recent GI Carter H. winner Mischevious Alex and MGSW Engage.

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From OBS March Juvenile ‘Into’ Leading Sire

The buying team at Spendthrift Farm had it down to two different 2-year-old colts from the first crop of the late Harlan's Holiday at the 2007 OBS March Sale. Did they ever pick the right one.

Into Mischief (Harlan's Holiday–Leslie's Lady, by Tricky Creek), winner of the GI CashCall Futurity and the back-to-back reigning champion general sire, got the final nod of the pair, bringing $180,000 from B. Wayne Hughes's operation following a :10 2/5 breeze.

The striking blaze-faced bay–standing the 2021 season for $225,000 at Spendthrift Farm–graces the cover of this year's OBS March catalog ahead of the two-day sale, slated for next Tuesday and Wednesday in Ocala with sessions beginning daily at 11 a.m.

“I can't remember who had the other Harlan's Holiday [13 were entered], but the last day we looked, we literally went from one to the other, just to compare them directly,” Spendthrift Yearling Manager Seth Semkin said.

“They were actually very similar looking. Harlan's Holiday stamped them quite a bit as far as how they looked. At the time, Richard Mandella was coming to the sales with us. Into Mischief was over in the knee a little bit, but those were the kinds of things that were Richard's call, and it didn't bother him. We went and looked at the videos again, and at the end of that little process, thankfully, we decided on Into Mischief.”

Five juveniles shared the :10 flat bullet–two ticks faster than Into Mischief's breeze–for an eighth of a mile over the former dirt surface at OBS. The sale was topped by $900,000 Darley Stable-purchase Forest Echoes (Forest Wildcat), one of three 2-year-olds to bring half a million or higher. The topper won four of 34 career starts and posted $106,281 in earnings.

“Into Mischief was a great value and he breezed beautifully,” Spendthrift General Manager Ned Toffey said. “I don't think any of us realized what we had when we first got him. Other than just thinking he was a nice horse.”

Hughes was the sale's leading buyer, purchasing four head for a total of $1.05 million. The quartet also included the following year's GII Robert B. Lewis winner Crown of Thorns (Repent) ($300,000 OBS March 2yo), who came within a nose of upsetting the 2009 GI Breeders' Cup Sprint. Into Mischief was the least expensive acquisition of the group.

“It was a strong work,” Semkin said of Into Mischief's breeze. “When it was still dirt there, it was very sandy and it depended on where you were in the set and what the track was like at the time you worked. It was an impressive work. He was a hard trier even when he breezed there.

“We also bought Crown of Thorns that year,” he continued. “That was the horse that we really wanted out of that sale and we ended up paying a lot more for him than we did for Into Mischief. All the credit goes to Mr. Hughes. He was game enough to do it and trusted us and allowed us the freedom to go to those sales. It goes to his desire to get racehorses and his willingness to bid the way he does.”

Into Mischief was no worse than second during his six-race career for the aforementioned Hall of Fame trainer carrying Hughes's famed orange-and-purple colors. His resume also included a win over subsequent GI Breeders' Cup Sprint upsetter Dancing in Silks (Black Minnaloushe) in the Damascus S. at three and a second-place finish in his career finale in the GI Malibu S. at Santa Anita.

Into Mischief was sidelined following a runner-up finish as the favorite in the GII San Vicente S. and was forced to sit out the spring Classics. His CashCall win over Colonel John was his lone career attempt around two turns.

“He was underrated, even as a Grade I winner,” Toffey said. “He was underappreciated as a racehorse. Richard would be forthright with you that the horse got into some foot problems that were really not what you would label as 'unsoundness.' That really kept him off the Derby trail and out of the majority of his 3-year-old year and he had a fairly abbreviated career. If you looked at his race record, you might assume he was unsound, but he absolutely was not. He was a very talented and very honest racehorse.”

Bred in Kentucky by James T. Hines, Jr., Into Mischief first brought $80,000 from the late, great bloodstock agent Buzz Chace as a Fasig-Tipton Kentucky Fall yearling. He was consigned as Hip 22 to OBS March as a pinhooking prospect by David McKathan's former nom-de-course M&H Training and Sales. Along with Jody Mihalic, McKathan currently operates under the Grassroots Training and Sales banner.

“Buzz bought him as a yearling and he was pinhooking him,” McKathan said. “That's how I came to have him. Obviously, he was a pretty nice horse. And back then, that was good money. He came to me and I broke him and we took him over to March. I was always proud of Buzz for buying the horse. He loved him. I was with Buzz when he bought him up there. The reality of it, the horse walked dead at 'ya, but he had a lot of action in his walk. I remember commenting to Buzz, 'That doesn't bother you?' He said, 'Nah, he'll move good.' Buzz had a great eye for a horse.”

McKathan added with a laugh, “I know I started to buy them when they walked like that from then on.”

Hines campaigned Into Mischief's dam Leslie's Lady (Tricky Creek), a $27,000 Keeneland September yearling purchase, to five wins from 28 starts, led by a win in the 1998 Hoosier Debutante S. and runner-up finish in the following year's Martha Washington S. at Oaklawn.

After Hines's passing in February 2006, Leslie's Lady, in foal to Orientate, realized $100,000 from Clarkland Farm at that fall's Keeneland November Sale, a year after producing Into Mischief. Hines was best known for breeding and racing champion older horse Lawyer Ron (Langfuhr).

Leslie's Lady, of course, has since gone on to also produce the brilliant four-time champion Beholder (Henny Hughes) ($180,000 yrl '11 KEESEP purchase by Spendthrift Farm) and GI Breeders' Cup Juvenile Turf winner Mendelssohn (Scat Daddy) ($3 million yrl '16 KEESEP purchase by M.V. Magnier). She was named the 2016 Broodmare of the Year.

Her unraced American Pharoah 3-year-old filly America's Joy was a record $8.2-million purchase by Whisper Hill Farm as a Keeneland September yearling.

“I often think if Beholder had come ahead of Into Mischief, you might have had to add a zero to that $180,000 [for Into Mischief at OBS March],” Toffey said. “Ironically, Beholder was the same price, so that's been a good number for us. They are two of the least expensive horses that we've bought over the years.”

With Horse of the Year Authentic and champion female sprinter and 'TDN Rising Star' Gamine leading the way, Into Mischief established the all-time single-season record for a sire in North America with $22,506,085 in progeny earnings in 2020. He is the only stallion ever to eclipse $20 million in earnings in a year.

Into Mischief, already the sire of 90 stakes/38 graded/eight Grade I winners, has 11 juveniles–Hips 10, 85, 224, 275, 291, 296, 315, 399, 453, 456, 497–consigned to this year's OBS March Sale.

“Share the Upside was one of the programs we started to try to convince breeders to breed to him,” Toffey concluded. “It just shows you, as Mr. Hughes likes to say, 'Nobody really knows.' We weren't quite sure what we had until he proved it to all of us. We're glad he's on our team.”

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Stud Farms Sue Over 140-Mare Cap, Allege ‘Blatant Abuse of Power’ by The Jockey Club

Spendthrift Farm, Ashford Stud and Three Chimneys Farm are suing The Jockey Club in federal court over the “stallion cap” rule that went into effect in 2020, alleging that the 140-mare breeding limit now being phased in amounts to a “blatant abuse of power” that acts as an “anti-competitive restraint” and threatens to disrupt the free-market nature of the bloodstock business.

The plaintiffs contend that the stallion cap “serves no legitimate purpose and has no scientific basis” while alleging that the nine stewards of The Jockey Club who voted to adopt the rule change purportedly did so based more on a desire to satisfy their own “conflicting economic interests” rather than their organization's stated purpose of “facilitating the soundness of the Thoroughbred breed.”

Two Kentucky Horse Racing Commission (KHRC) officials are also named as defendants in the complaint, which was filed Tuesday, Feb. 23, in United States District Court, Central Division, in Lexington, Kentucky.

Although KHRC chairman Jonathan Rabinowitz and KHRC executive director Marc Guilfoil were not directly involved in The Jockey Club's decision to impose the cap on matings (known as Rule 14C), the suit contends that in their official KHRC capacities, those two are responsible for overseeing how the state delegates Thoroughbred registration authority to The Jockey Club.

So by extension, the suit alleges, if The Jockey Club in the future refuses to extend registration privileges to foals produced by matings that are considered over the cap limit, the KHRC will be barring those horses from competition, thus “effectively eliminating the economic viability of any such foals.”

The suit contends that in this instance, “The Jockey Club is not fulfilling an administrative function of merely identifying and registering, for the KHRC, those horses that qualify as purebred Thoroughbred horses; instead, The Jockey Club is making its registration decisions, and rejecting actual Thoroughbred horses, based on whether its Stewards approve of the breeding decisions of the horse's owners.”

The suit also states that The Jockey Club Stewards' “have conflicting economic interests-owning and/or representing various competing racing and breeding private entities,” and that their “economic interests will be served by the Stallion Cap.”

At the time the decision was announced in May, 2020, the stewards were Barbara Banke, Michael O'Farrell Jr., Everett Dobson, C. Steven Duncker, Ian Highet, Stuart Janney, William Lear Jr., John Phillips, and Vinnie Viola.

It is not immediately clear based on the complaint why the KHRC officials were singled out for inclusion in the litigation. In fact, the suit makes a point of stating that “the effect of the new Jockey Club Rule 14C is the same outside of Kentucky, as all other racing jurisdictions in the United States condition a horse's eligibility to enter a Thoroughbred race on registration by The Jockey Club.”

The farms are seeking an unspecified amount of compensatory and punitive damages against The Jockey Club (but not the KHRC). The plaintiffs are demanding—without stating exactly why in the suit—that those amounts be tripled. However, the Clayton Antitrust Act empowers private parties injured by violations of the Act to sue for treble damages under Section 4 and injunctive relief under Section 16.

As such, the plaintiffs are asking for “an injunction requiring The Jockey Club to repeal its Rule 14C or, in the alternative, permanently prohibiting The Jockey Club from enforcing its Rule 14C and from denying registration on account of the number of mares covered by any horse's sire.”

The suit also demands “an injunction requiring the KHRC, through its Chairman and Executive Director, to permit Thoroughbreds to race in Kentucky regardless of their inclusion in The Jockey Club registry.”

The suit also wants a court declaration stating that the alleged property rights breaches by the defendants are “arbitrary and capricious and violate their due process and equal protection rights guaranteed by the Kentucky and the U.S. Constitutions…” The suit also argues that the rule violates the Sherman Antitrust Act and suppresses competition.

“As a result, the highest quality Thoroughbred horses will be bred less times than market economics would otherwise dictate,” the complaint contends. “Hundreds of millions of dollars of stud fee revenues will be impacted; all owners of mares will pay higher prices to breed their mares; and less well-connected owners of mares will be precluded entirely from access to high quality stallions.

“In addition, owners of the premiere Thoroughbred stallions and stallion prospects will potentially move or sell their horses out of Kentucky to other countries whose Thoroughbred registries do not impose any Stallion Cap,” which the suit states is “every other country in the world besides the U.S.”

A press release circulated by the group Tuesday morning charges that, “Membership of The Jockey Club is by invitation only, and the decision was made by its Board of Stewards without discussion or a vote at the Club's Annual General Meeting. The Jockey Club Stewards making the decision had clear conflicts of interest given they also represent or own various breeding and racing entities who stand to benefit now that owners of mares are being denied their first-choice stallion.”

Tuesday afternoon, The Jockey Club issued the following statement:

“In May 2020, The Jockey Club board of stewards announced that it had adopted a final rule limiting the annual breeding of individual stallions. The rule reflects The Jockey Club's goal to preserve the health of the Thoroughbred breed for the long term. The rule applies prospectively to stallions foaled in 2020 or later; it does not apply to stallions already out to stud. The Jockey Club publicly proposed a draft rule in September 2019 and received many thoughtful comments, which the stewards carefully considered in formulating a rule that will promote diversity of the Thoroughbred gene pool and protect the long-term health of the breed. Because the rule applies only to stallions born in 2020 or later, any effect on future stud fees or breeding economics is speculative. The Jockey Club stands by the rule and its purpose, which is to preserve the health of the Thoroughbred breed for the long term. The Jockey Club will continue to maintain the Principal Rules and Requirements of The American Studbook in keeping with its mission to ensure the health of the Thoroughbred breed.”

Sherelle Roberts-Pierre, a KHRC spokesperson, wrote in an email that “The KHRC is aware of this lawsuit, and our legal team looks forward to addressing these issues in the litigation process. We have no additional comment at this time, due to the KHRC's policy about not commenting on pending litigation.”

Cap Background

Citing the significant, decades-long decline in the North American foal crop and concerns “with the narrowing of the diversity of the Thoroughbred gene pool,” The Jockey Club announced on Sept. 6, 2019, that its board of stewards was considering a per-stallion breeding limit of 140 mares that would be phased in over a multi-year period.

The proposed cap was met with a hazy mixture of consternation and support within America's bloodstock community. At the time, The Jockey Club President and C.O.O. James Gagliano wrote in response to a TDN query that “We neither expect nor see a basis for a legal challenge.”

When the cap was voted in by The Jockey Club's stewards and announced as effective on May 7, 2020, the new 14C rule drew support for its attempt to broaden the stallion base and to spread the wealth, so to speak. And The Jockey Club's seemingly conciliatory grandfathering-in of existing stallions also appeared to provide a welcome degree of a time buffer by phasing in the changes.

But the cap was still criticized by some industry stakeholders for creating a two-tier system of different rules that will now apply to different stallions based on age.

And some members of the bloodstock community just plain didn't like being told how to manage their matings.

According to the new version of Rule 14C, for stallions born in 2019 and earlier, there remains no limit to the number of mares reported bred in the United States, Canada, and Puerto Rico. For stallions born in 2020 and later, the maximum number of mares covered will now be 140. To enforce compliance, The Jockey Club simply will not register any foals that are not the product of the sire's mating with the first 140 mares to which that stallion was bred in any given year.

According to The Jockey Club's Report of Mares Bred, 42 stallions bred over 140 mares in 2020.

Of that total, 16 of those 42 stood at either Spendthrift, Three Chimneys or Coolmore/Ashford.

Those 16 stallions bred a total of 1,088 mares over what will be the new cap of 140: Spendthrift (576), Coolmore (429) and Three Chimneys (83).

Nine of the top 10 highest-covering stallions stood at Spendthrift or Coolmore; 13 of the top 15 stood at the three farms bringing the suit.

It's still too early to try to put a hard-dollar prognostication on future financial implications of the stallion cap. But the farms' complaint tries to do so retroactively and makes several ballpark projections.

According to the suit, “If Rule 14C had been applied in 2019, the breedings of 43 stallions would have been restricted and over $85 million in stud fee revenues would have been impacted for that year alone. Similarly, if Rule 14C had been applied in 2020 to stallions born before 2020, the breedings and stud fee revenues would have been similarly restricted.

“Moreover, as a result of the foregoing, new Jockey Club Rule 14C has already diminished the value of the 2020 weanlings acquired by Plaintiffs, whose future productivity as stallions will be artificially limited by that Rule, and it has already diminished the value of Plaintiffs' current crop of stallions as the potential productivity of the foals they produce will be limited by that Rule,” the court filing states.

Institutional Clout vs. Private Property

The farms' suit is not shy about portraying The Jockey Club as an influence-wielding entity that is allegedly rife with factionalism.

In one instance the suit states that the organization “has also leveraged its power over the North American Thoroughbred industry by unlawfully conspiring with other registries throughout the world to expand the geographical reach of its rules.” In another section, it states, “Indeed, at least one Jockey Club Steward has publicly acknowledged that economic protectionism—rather than any interest in curtailing inbreeding among Thoroughbreds—is the real purpose behind the Rule.”

It also contends that, “The Jockey Club has leveraged the commercial power it exercises as the State sponsored registry of Thoroughbred horses into numerous other related profit-making ventures.”

But while enumerating a list of alleged conflicting business interests among The Jockey Club's stewards might make for splashy headlines, the legal meat of the case appears to rest on the contention that “Plaintiffs' interests in their Thoroughbred horses and their right to generate fees from the breeding and sale of such horses are protected property rights under the Fifth Amendment of the U.S.Constitution, as made applicable to the states by the Fourteenth Amendment to the U.S.Constitution.”

As applied in Kentucky, the suit alleges that Rule 14C “does not tend to protect or preserve health or safety; instead, its sole purpose is economic protectionism; it is designed to protect the economic interests of owners of second-tier stallions who will usurp the breedings that would, under free market conditions, have otherwise gone to the first tier stallions but for the imposition of that Rule.”

“Moreover,” the suit states, the rule “violates the dormant commerce clause because it is aimed at economic protectionism and it imposes a burden on interstate commerce that is clearly excessive in relation to the putative benefits that it claims to promote. In addition, Defendants' actions in imposing and abiding by the Stallion Cap constitute an impermissible taking of Plaintiffs' property interests.”

The suit continues: “Plaintiffs had a reasonable expectation that they could continue to conduct their Thoroughbred breeding business in accordance with the recognized standards for production of Thoroughbred foals…. Defendants have offered no compensation for the loss of Plaintiffs' protected interests nor any means of seeking such compensation.”

Commenting on behalf of the plaintiffs in a prepared statement, Spendthrift Farm owner B. Wayne Hughes said: “The introduction of the Stallion Cap by The Jockey Club is a blatant abuse of power that is bad law, bad science and bad business. A handful of individuals from a private club in New York have been allowed to make a decision that will negatively impact the future of Thoroughbred racing and breeding both in Kentucky and the whole country.

“We have filed this complaint to defend the industry from anti-competitive, un-American and arbitrary decision making that is not based on scientific evidence.

“If they can limit the number to 140, what's to stop them from limiting it to 100 or 80 or any other number down the road? What if your mare isn't one of the 140? We are really concerned about the small breeder's ability to survive this.”

The post Stud Farms Sue Over 140-Mare Cap, Allege ‘Blatant Abuse of Power’ by The Jockey Club appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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