Brenda Davis Reappointed to CHRB

California Governor Gavin Newsom has reappointed Brenda Davis to the California Horse Racing Board. Davis, who has served on the CHRB since 2020, has been Principal at the Brenda Davis Law Group since 2007. She was Managing Counsel at the California Farm Bureau Federation from 1999 to 2007 and was a Legislative Advocate and Negotiator in the Executive Office of the Attorney General at the California Department of Justice from 1996 to 1999. She is a member of the California State Bar, New Mexico State Bar, Mercy Foundation Board of Trustees and the Friends of Sacramento Arts Board of Directors. Davis, a Republican, earned a Juris Doctor degree from the University of California, Berkeley School of Law and a Bachelor of Arts degree in Public Policy Sciences from Duke University. This position requires Senate confirmation and the compensation is $100 per diem.

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Vocal Two-Circuit Supporters in Cali Come Out Firing in First of Many Expected North/South Skirmishes

The precarious, up-in-the-air future of California racing and whether or not the state can continue to support two geographic year-round circuits was made no clearer after Thursday's California Horse Racing Board (CHRB) meeting. The 3 1/2-hour session was dominated by discussion of competing North-versus-South plans that both tried to carve a sustainable path forward while underscoring the dire circumstances that face the industry with the June 9 closure of Golden Gate Fields looming like an unavoidable asteroid.

Although the CHRB concluded the meeting–which featured testimony that was at times emotional, hopeful, angry, and even ominous–without taking any voting action on the situation, proponents behind ideas that would turn one of the NorCal fairs locations into a venue capable of hosting nearly year-round Thoroughbred racing had a decided edge in turnout and vocal support.

In part, that's because those NorCal-based supporters enjoyed a home-track advantage, because the Jan. 18 CHRB meeting was held at Cal Expo in Sacramento, the preferred location for a year-round venue as outlined in a presentation by the California Authority of Racing Fairs (CARF).

But the locale wasn't the only factor, as much of the back-and-forth debate also came across as a referendum about larger racing entities allegedly trying to trump smaller ones, whether or not 1/ST Racing and Gaming–which owns both Golden Gate and Santa Anita Park–will be good for the state in the long run, and whether or not the Thoroughbred Owners of California (TOC) organization speaks for all the stakeholders in the state or just the higher-end stables based in SoCal.

Yet it was telling that no fewer than 26 industry stakeholders spoke before the board on this wide-ranging, controversial North/South topic during the public commentary period, and not a single one voiced support for an alternate plan proposed by TOC in conjunction with executives from Santa Anita Park and Del Mar Thoroughbred Club.

That TOC-backed concept would consolidate all commercial-track racing in the state at SoCal. The goal would be to maintain level purses there under a simulcast revenue “redirect” plan that would also try to accommodate displaced Golden Gate outfits by creating more opportunities for lower-level horses to race at Los Alamitos Race Course, dropping the “claiming floors” at both Santa Anita and Del Mar, and establishing “relocation allowances” for stables that had to pack up and move.

The TOC's takeaway message was that even though it is in support of any “feasible and viable” plan to keep year-round racing afloat in NorCal, a danger exists in the form of increasing economic pressures in the South that, in turn, could contribute to millions of dollars in purse overpayments at Santa Anita and Del Mar that would likely erode the overall California product.

“With the closing of Golden Gate, can we continue to support two full-time circuits? This is a fair question,” said Bill Nader, the TOC's president and chief executive officer.

“We are running out of time,” Nader continued. “If there is agreement on one point, I think it would be that the latest possible decision on the allocation of 2024-25 race dates would be at the CHRB meeting in March. This would help re-establish stability and certainty for the many who are looking for answers.”

Nader's tone was largely somber and straightforward as he discussed the TOC's rationale with executives from 1/ST Racing and Del Mar presenting alongside. But at times his comments were met with derision and catcalls from opponents, who greatly outnumbered the supporters of the TOC's plan.

Many of those same folks also cheered and applauded any mentions of trying to save year-round NorCal racing.

At one point, CHRB chairman Gregory Ferraro, DVM, asked audience members to respect decorum so that the outbursts wouldn't bog down the meeting. But his request to “stop the clapping and the booing” went largely unheeded.

Larry Swartzlander, the executive director for CARF, detailed his organization's work-in-progress plan to install a seven-furlong track inside the current main mile oval at Cal Expo, which for years has largely hosted Standardbred racing outside of the short season that the Thoroughbred fair races in Sacramento.

Swartzlander said Cal Expo would likely race 103 Thoroughbred dates in the future (on the outer oval), with cards scheduled roughly twice weekly when the other NorCal fairs weren't in season.

“We are looking at funding from horsemen, CARF, and potential grants,” Swartzlander said, admitting that his plan is just in its initial stages because horsemen in California have only known since July about 1/ST Racing's plan to close Golden Gate.

As a result, Swartzlander was light on specifics such as firm costs and a timeline.

Swartzlander said next up is a Jan. 26 meeting with the Cal Expo board of directors seeking conceptual approval.

“If the board does decline to approve racing at Cal Expo, we will move to Pleasanton,” as a potential year-round NorCal racing home, Swartzlander said. “The Pleasanton board is very strongly in support of racing, and if I have to make one commitment to you, Pleasanton will race.”

When CHRB executive director Scott Chaney pressed Swartzlander for cost details, Swartzlander gave an estimate for state-owned Cal Expo's overhaul in the $1- to 1.5-million range.

Chaney expressed surprise at such a low figure.

“I'm not going to lie. I think you're very low,” Chaney said.

“One of the things that concerns all of us is uncertainty right now,” Chaney said. “We're, I'm sure, bleeding horses every day because there's no clear plan. We don't know what we're doing in the future [and] I am concerned about timeline and cost at Cal Expo. I just think it's unrealistic. I know it's unrealistic, to be honest.”

Commissioner Wendy Mitchell said she appreciated CARF's efforts at coming up with a plan, but also expressed doubts.

“I don't see how any of this lines up,” Mitchell said. “And I guess my concern from a regulatory or from the industry perspective is I don't want to create false expectations for people that are really unattainable…. I don't mean to be negative or a doubter, but I'm trying to be realistic and pragmatic about what the industry is facing.”

Commissioner Damascus Castellanos said that the time crunch and uncertainty was caused by 1/ST Racing, not CARF.

“The industry was kind of slow to get going on this whole thing,” Castellanos said. “We would be so further along if [1/ST Racing] came to us with proper notice [and] the groups in this room today probably could have gotten together and been done with this plan.”

Ian McLean, an owner and breeder, said during the public commentary session that the CHRB itself is partly to blame.

“If I'm not mistaken, this board works for us. We don't work for you,” McLean said. “The one thing that I've asked this board for years and years is to give us more attention in NorCal. Give us more time. Make us more important. Listen to what we have to say, and make us feel like we matter. And I don't think that's been done.”

McLean said the CHRB's response to CARF's proposal is too focused on negativity and “looking for the holes” in the plan.

“And I agree that you should look for the holes,” McLean continued. “But you should also look for 'How could we patch those holes?'”

Jamey Thomas, a third-generation NorCal trainer, advocated for the CHRB taking a slower approach.

“CARF needs time to get all this situated and done,” Thomas said. “It's kind of been a rush job. They're rushing us, forcing us, to get this stuff done faster than it can be done. Again, if they had let us know a year ago, by now everything could have been in place, we would have had a place to run. And we will have a place to run. The thing is, we just need the time.”

Tom Bachman, who said he's been breeding and selling Thoroughbreds in California for 40 years, underscored that the state's bloodstock industry works on a different timeline.

“My concern as a breeder is that the decisions I make today, the results are three or four years away when I've got to sell,” said Bachman. “So it's very difficult to have faith that three or four years from now there's sustainable racing in California. So my breeding now has moved to Kentucky.”

Johnny Taboada, who was a TOC director until last Sunday, when he was one of three directors to resign in protest over the TOC's proposed statewide consolidation, told the CHRB that the NorCal fairs are in jeopardy without a year-round track in the region.

“If you rush into the decision without giving the chance for the NorCal [entities to come up with an plan for a] circuit, you're going to not only put people out of work, you're going to be closing the fairs as well,” Taboada said. “If we don't have the dates assigned to the North and therefore the money goes to the South, that will be the end of not only NorCal racing, but also the fairs.”

CHRB chairman Ferraro wrapped up the session by saying that this is only the first major discussion on an enormously important topic.

“We needed your information. We need your input,” Ferraro said. “I'm telling you, it's not easy sitting in this chair looking at this situation. It is almost a no-win situation for this board. We're going to do the best we can to do right by everybody. But obviously, we have no decision-making [Thursday], so we will have to end this meeting without a decision, and we'll see what happens over the next couple of months.”

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Moger, LaRoche, and Taboada Resign from TOC

Three directors of the Thoroughbred Owners of California (TOC) have resigned from their positions in protest of the board's co-signature on a proposal to the California Horse Racing Board (CHRB) that would concretize racing operations in South California at the expense, they say, of a potential viable racing circuit in the North.

The former directors also claim the proposal was submitted without their prior knowledge.

“On January 5th a letter from the TOC and the Southern California racetrack operators was sent to the CHRB requesting the allocation of race dates for late 2024 and 2025. Of course, these race date allocations would pre-empt the opportunity for a racing circuit in the North. The key point here is that this letter was written without our knowledge and despite the fact that the entire board met two days prior,” write Lindsay LaRoche, Johnny Taboada and Ed Moger in a letter to the TOC dated Jan. 12.

“By no means are these the only times the interests of Northern California members have been ignored or subjugated by TOC leadership,” the letter adds. “It is clear to us that the current leadership is not being transparent and not working to represent the entire state of California.”

The resignations come at a fraught time for the California racing industry as it attempts to piece together a revised racing framework in the wake of Golden Gate's impending closure in June and amid declining economic benchmarks.

With the clock ticking, complicating matters is how the California Association of Racing Fairs (CARF) has yet to publicly submit a proposal as to a potential Northern racing circuit beyond its annual fair dates. This year's fair schedule is currently set to close out with a fall fair meet at Fresno from Oct. 2 through the 13.

According to TOC president and CEO, Bill Nader, the board members were indeed informed during its meeting earlier this month that the organization would be submitting a letter to the CHRB ahead of its Thursday board meeting, outlining plans for consolidated racing operations in the South as a contingency “in the event the North does not put forward a viable plan that gains CHRB approval.”

“As far as the details in the packet, I wanted that included for transparency so that everyone had a chance to look at it before the meeting commenced–it's a lot to take in on the spot,” said Nader.

In a joint submission to the CHRB, the TOC, Los Alamitos chairman and CEO Ed Allred, I/ST Racing and Gaming CEO Aidan Butler, and Del Mar president and COO Josh Rubinstein ask the regulator to allocate race dates for the last 14 weeks of 2024 and for 2025 with operations concentrated in the South–beyond the Northern fair meets–citing the tough economics of currently maintaining twin North-South racing circuits.

The submission outlines a set of proposals, including a possible legislative change to permit Los Alamitos to card night Thoroughbred races beyond 4 1/2 furlongs for $5,000 claimers and below, and $8,000 maiden claimers.

Los Alamitos vice president Jack Liebau recently told the TDN that a legislative fix to go into immediate effect–as opposed to the start of January 2025, like most bills passed this year–needs an “urgency clause” requiring a two-thirds vote by the legislature.

Nader said that no decision will be made during this Thursday's CHRB meeting about race-date allocations.

“I personally do not see this discussion on the 18th being contentious,” said Nader, about the upcoming CHRB meeting. “I think it's just stating the facts and opening eyes to where we've been in the last 20 years, where we are now, and where we're going. No decisions will be made–it's only background.”

Nader also said that at the behest of the TOC, track management at Del Mar, Santa Anita and Los Alamitos had pushed back the deadline for the allocation of race-dates–from what would have required an “emergency” CHRB meeting in February to the regular CHRB meeting in March.

“At our board meeting [earlier in January], all three tracks had the opportunity to be present and speak at the beginning of the meeting. We did speak to them and we did get them to relax their position, to say that they were willing to wait until the 21st of March, at the March CHRB meeting,” said Nader, who added that CARF executive director, Larry Swartzlander, declined an offer to attend the TOC meeting.

“So, we were being responsive and respectful to the North,” Nader said. “It's been six months, we still haven't seen a plan [from CARF]. There are people all through the state getting very anxious.”

In their resignation letter, the three former TOC directors also claim TOC leadership “does not represent the interests of Northern California owners,” highlighting the recently announced 25% cut in purses at Golden Gate Fields–a result of a $3-million deficit in the track's purse account.

“Recently, the Northern California Racing Committee unanimously voted to oppose the purse agreement proposal from 1/ST Racing for the final Golden Gate Fields race meets,” the letter states.

“The result of this vote was not deemed important enough by TOC leadership to effect the TOC's approval of the cuts or even to be presented to the TOC Board as a whole for a vote,” the letter adds.

“There are emails and board minutes that would suggest otherwise,” said Nader, when asked about these claims. He added in a follow-up text that the TOC “did discuss the GGF purse cuts” at the January Board Meeting.

“It's a struggle, North and South. It's just a difficult time,” Nader added. “I'm not being critical of anyone. It's just the environment we're in right now. Everybody's just a little teed up–it's unfortunate.”

Efforts to consolidate racing operations in the South were given a major fillip in September of last year, when California lawmakers passed legislation that means if Golden Gate Fields is not licensed to operate beyond July 1 this year, proceeds from simulcast wagering in the north are funnelled south when there is no live racing in the northern half of the state after that date.

Moger did not respond to a request for comment prior to publication.

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CHRB Advisory Warns ‘EPO’-Labelled Supplement Contains Caffeine

In an advisory issued to trainers just before Christmas, the California Horse Racing Board (CHRB) warned that caffeine had been detected in two supplements marketed to performance horses analyzed by the Maddy Equine Analytical Chemistry Lab at UC Davis.

“As such, Horsemen are advised to exercise extreme caution when using these products in close proximity to a race,” the advisory states.

Under the Horseracing Integrity and Safety Act (HISA), caffeine is a Class B controlled substance, which comes with a possible 15-day suspension and $1,000 fine for a first offense.

The advisory shows pictures of two tubs of substances broadly labelled “EPO-Equine,” each labelled to sell for $525. EPO is the shortened version of Erythropoietin, a type of protein called a growth factor.

EPO stimulates the bone marrow to make red blood cells, which contain a protein called haemoglobin that carries oxygen around the body. As such, EPO is widely known as a performance enhancing substance.

When asked if EPO had also been detected in the two substances, CHRB equine medical director, Jeff Blea, simply said that “just caffeine” was detected.

The two substances, said Blea, were found during a barn search conducted at Los Alamitos. “It was not related to a caffeine positive,” he said, declining to say whose barn was searched.

“This one I think has been around for a long time,” said Blea, about the “EPO-Equine” product. “The caution is, be careful what you're giving your horses.”

When asked about the suggestive labelling, Blea said that he had called and emailed the company but didn't receive a response.

“It's all about marketing, right?” said Blea. “They're trying to sell a product.”

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