Tag: California Horse Power Coalition

Last week, industry organizations announced the launch of the California Horse Power Coalition, a collaborative endeavor sold as something of a unified foghorn to extol the good word of the sport's economic and cultural impacts.

The list of Coalition members reads like a who's who of California racing industry mainstays, including Del Mar, Santa Anita, the Thoroughbred Owners of California (TOC), the California Retirement Management Account (CARMA), the California Thoroughbred Breeders' Association (CTBA) and others.

To discuss this new venture–along with a suite of other timely industry talking points–the TDN spoke with newly minted TOC president and CEO, Bill Nader.

Before joining the TOC, Nader's decades-long career in industry management included long stints in senior positions with both the Hong Kong Jockey Club and the New York Racing Association.

The following is from a longer interview, heavily edited for brevity and clarity.

TDN: What was the genesis for the California Horse Power Coalition?

Nader: Well, it was really to speak up for California horse racing and the equine industry [in general] to provide simple and clear communication that shows the enormous contribution we make to jobs, agriculture and tourism across the state. We've all come together.

TDN: Is this because you think the industry's economic clout hasn't really been relayed to the public in a very effective manner so far?

Nader: When I say to speak up for California horse racing, it's really to make sure that the correct messaging is going out. The mission here is to preserve, protect equine culture and the industry, and bring awareness to the significant benefits that we bring to the state.

Horse racing is one of the oldest and most celebrated sports in the world. Through the coalition, we highlight not only the economic impact but also widespread employment and the part we play to help drive tourism.

When I would come over here for the Breeders' Cup with the international community–people coming from Europe and Asia–they were positively blown away at how beautiful these racetracks are. Then, when you add in the history and the tradition with the value that it creates for the state–in terms of the creation of jobs, agriculture, tourism–it's a pretty powerful position to be in.

We want to draw that out and make sure it's communicated in a way that people easily understand.

TDN: What specific events or actions are planned through the coalition? 

Nader: We'll work together as a unit to deliver unified messaging to get the maximum impact. I think horse shows and expositions will be a good opportunity, but also, each of the partners using their own platforms to get the message out and provide opportunities to like-minded people who love horses and love horse racing to be able to join in.

TDN: How do you plan to get this message out to the people that need to hear it the most? Targeting politicians, for example?

Nader: We want to get it to the widest possible audience within the state to really understand who we are and what we represent and what we bring. So yes, that would be part and parcel of the segment that we're trying to reach. But back to the original point, I think it's about speaking up for California.

Look at it over history, from Seabiscuit to Flightline, all the great horses in between, the high-profile people–whether they're owners, trainers, or jockeys that have played an important role during that time–but also the people who do the work on the backstretch each and every day. This is a voice for all of us, right?

It's a voice for all of us to be able to say, 'we've been here a long time, we've been a big part of California, we've got great history and tradition, we've great people, we've a great story to tell, and now we're going to tell it.' This coalition is a vehicle to deliver that message that we should all be very proud of.

TDN: If anyone is interested in getting involved, what should they do? 

Nader: Right now, we're asking people to join in. We'll get a list together, and then with that, we can then determine next steps, how best to leverage what we have. There will be the rollout over the different platforms at the different shows and expositions. Hopefully people will have ideas for us, too. It's going to be a two-way communication.

TDN: You've landed at the TOC in the midst of various swirling developments for the state's industry, none more so than the shifting sands beneath the Horseracing Integrity and Safety Act (HISA). Last week, the California Horse Racing Board (CHRB) reaffirmed its intent to enforce HISA's rules in the state. Given the question marks over HISA's constitutionality–and therefore, about its enforcement authority moving forward–do you think that was the right move?

Nader: The right move? How do you mean?

TDN: The CHRB supporting enforcement of HISA right now.

 Nader: We have a TOC member, Rick Gold, who's been at the forefront from day one representing us with HISA. He's now on the [HISA] Horsemen's Advisory Group. He's been there every step of the way.

California is also in a unique position that our rules are closely aligned with the HISA rules. [Despite] the recent uncertainty in the appeals courts and the cloud of uncertainty going forward, we are committed and have been committed to safety and integrity. Over the last three years in California, we've come a long way and put extraordinary emphasis on making these improvements.

From where we stand, we remain committed to safety, integrity, and we also believe in uniformity. Our interest in that is steadfast.

TDN: Are you concerned that moving forward, HISA-related rulings that come down in California will be subsequently appealed or challenged on the grounds that they're unconstitutional? 

Nader: We have to take a step back now and wait to see how the HISA situation plays out. Fortunately, we're coming at it from a position of strength. But it's too speculative for me to really say with any clarity as to what may or may not be in a situation like that.

TDN: Another key industry issue has been sports betting, with both sports betting-related ballot measures failing in the recent elections. What are the next steps for sports betting in the state?

Nader: We need to regroup and find a way to work collaboratively with industry partners to determine the next steps. I think it's too soon after the election to have a firm plan in place, but California is a major market and sports betting is available in about 28 states.

We hope to see some immediate upside early next year through 'merged wallet,' which makes horse racing available on sports betting platforms across the country. That could bring some upside to handle on our races that are conducted here in California, and hopefully that results in some real upside for purses.

TDN: Looking forward to any future sports betting efforts here in California, is it too soon to speculate how the racing industry might fit into that? 

Nader: The one thing I would like to say to that, betting on horse racing has been a big part of California for about a hundred years at highly regulated, well-established racetracks.

So, expanding the menu for legal wagering to other sports–with wagering conducted at racetracks–might be the only entry point to help channel gaming demand responsibly and also create a new stream of income for the state. We're in a strong position to fit the racing industry into whatever is considered possible in the next cycle.

TDN: Outside of Del Mar–which once again produced impressive numbers this summer–field size is an ongoing industry concern in the state. How do you see your role at the TOC in helping to bolster field sizes here in California?

Nader: I think our role is to really do anything within our means to improve the value proposition for horse owners, which translates into trickle down benefit to other stakeholders, such as trainers, jockeys, everybody. I think the one thing about field sizes, the betting public should never be overlooked. This is where the relationship between the racing product and the betting public are connected.

Look, it's a growing concern, not just across the country but globally. In my last days in Hong Kong, we were concerned that field sizes were averaging just under 12 horses per race, which sounds like a lot to anybody here, but it was a bit troubling in Hong Kong because the aim was to average 12 and a half horses a race. But there was a real concern there that it was dropping to 11.98.

So, it's relative, whether it be Asia, Europe, America, the decline in the foal crop and the number of races and supply and demand–how it all really works together–but in the end, we want to put forward competitive, entertaining content for the betting public which will then drive handle.

We are taking a serious look at all the resources that are available to us to then target those resources to achieve the best outcome over the full calendar year.

TDN: What are we doing right and what are we doing wrong about field sizes? 

Nader: Look, having worked in New York and in now coming to California, I think the brand image of a Saratoga or Del Mar, they have a built-in advantage. But there are things here like Ship & Win and other things that we have in California.

This is where I think we need to take a little bit more time and really evaluate what works, what doesn't work, how we can target our resources more effectively, more efficiently, and come up with a plan that really works not only for the TOC, but also for the tracks and for the horseman and for the public. When you look at something like this, you have to take the 360 view, think of how it impacts everybody.

When it comes to this topic, the betting public is a big part of the audience. It's not just the owners, trainers and tracks. This is what we're putting forward. On one side, we're looking for quality. But we also want quantity. So, it's a matter of how we put those pieces together.

We don't have that secondary income stream that other states have through an alternative form of gambling, that's why we need to be very, very sure we're being effective and efficient in our use of resources.

TDN: Field sizes, of course, are closely tied to handle which is tied to purses. Can current levels in the purse account be maintained if field sizes and handle continue to take a knock?

Nader: I think it can. We'll make an announcement soon enough for Santa Anita. The first condition book for Santa Anita's [winter/spring] meet will be coming out soon.

With 'merged wallet' coming on the scene in January, we're cautiously optimistic. In the beginning, there will be about five states which will [use] 'merged wallet.' We can then monitor what the benefits or what the positive impact is from that. And then we'll have a better idea in terms of purse structure as we move forward into the new year where we stand.

This is a new source of an untapped income where we don't have a way to really quantify how much that might be.

TDN: Are you able to speculate? 

Nader: Well, different people have different opinions on it. I really don't. It could be something in the neighborhood of $5 million for California.

TDN: Annually?

Nader: Yes.

TDN: By the time your tenure ends at the TOC, what do you hope to have achieved? 

Nader: I think from the standpoint of horse ownership, the single most important thing is to make purse money more attractive, to increase the quality of racing, to present racing in a way that it is–from the standpoint of the integrity of racing and the integrity of the wagering–to make it as good as it can be for the racing fan. I think those are the fundamental things that help drive results.

I always thought there were four pillars for success in Hong Kong and I don't think it differs here: Quality of racing, integrity of the racing and wagering, field sizes to make the racing attractive, and liquidity. Liquidity, that comes with greater handle. I think all those things are connected, and if you can get those four pillars correct, then you can walk away thinking, 'job well done.'

It's not easy. I get that. But those are the things that we really have to work on together because the TOC can't do that on its own, and the racetracks can't do that on their own.

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