Pari-Mutuel Clerks Say They Will Honor Derby Day Picket Line At Churchill Downs If Valets Go On Strike

The pari-mutuel clerks employed by Churchill Downs Incorporated in Louisville, Ky., announced they will honor the Churchill Downs valets' picket line, if they decide to strike on the day of the Kentucky Derby. The absence of 200 pari-mutuel clerks at the Derby would shut down hundreds of betting stations and disrupt the money-making engine of Churchill Downs Incorporated.

SEIU Local 541's Executive Board President Don Vest said: “The pari-mutuel clerks stand in full solidarity with valets who have been patiently waiting for a fair contract since last fall. They have informed the valets that they will honor the picket line if they choose to go on strike tomorrow.”

Valets employed by Churchill Downs Incorporated at Churchill Downs Racetrack have not had a contract since October.  The parimutuel clerks' support comes as Churchill Downs refused to accept the offer by valets, represented by SEIU Local 541, to meet with a mediator this morning to resolve the open contracts at Churchill Downs Racetrack and Turfway Park. Turfway valets have not had a contract since April 2020.

Ronnie Shelton, an SEIU Local 541 member and veteran of the Kentucky Derby,  criticized Churchill Downs' attempts to prolong a contract dispute that they delayed for months and ultimately risk disruptions to the Derby: “Churchill Downs' offer to meet next week without agreeing to use a mediator, and with no assurances that they will actually move on any of their proposals, is unacceptable and insulting, especially when they canceled our last meeting abruptly and refused to acknowledge our offer to finalize a deal. The biggest day of the year is tomorrow, and Churchill Downs is suggesting we work under a substandard contract so they can drive up their profits.

Shelton continued, “Our patience for excuses is wearing thin because we know Churchill Downs could pay us fairly in a second without feeling even the slightest pinch. There is no need to delay or threaten the Derby, and it's on Churchill Downs to stop the insulting delay tactics and agree to a fair contract.”

On Wednesday, the Greater Louisville Labor Council also pledged their support for Derby valets. President Todd Dunn said: “From the valets to the pari-mutuel clerks to the folks who put together the garland of roses, the Kentucky Derby is Union made. All of these workers are vital. With Derby just hours away, the Greater Louisville Central Labor Council is prepared to stand with these workers in any action. An injury to one is an injury to all.”

Churchill Downs Incorporated posted $1.054 billion in net revenue for 2020, and its CEO Bill Carstanjen made $10.5 million, yet the company is refusing to pay its valets at Churchill Downs Racetrack (CDRT) and Turfway Park a fair wage and provide basic workplace protections to ensure adequate staffing levels at the racetracks. The ratio of the CEO's compensation to the median salary of the other full-time employees in 2020 ($26,000) is 404:1. In the first few seconds of opening betting, the company easily makes the $27,000 it would cost to fully cover modest raises for its entire valet workforce.

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Kentucky Oaks Wagering Rebounds With Third-Highest Handle In History

The 147th running of the $1.25 million Longines Kentucky Oaks (Grade 1) at Churchill Downs Racetrack in Louisville, Ky., saw Malathaat capture the Lillies in a field of 13 under sunny skies and fast track conditions in front of 41,472 spectators spread across the expansive and spacious grounds of the racetrack.

Wagering from all-sources on the full Kentucky Oaks race card totaled $54.3 million, up 76% compared to the 2020 Kentucky Oaks, which was held in September with only essential personnel in attendance. All-sources wagering on the Kentucky Oaks race was $17.4 million up 74% from last year's Kentucky Oaks race.

The total wagered on the 13-race card was almost 10% lower than the record Oaks day handle in 2019, when $60.2 million was wagered on 13 races. This year's handle was the third-highest in the history of the Oaks despite the limited on-track attendance due to COVID-19.

Malathaat, owned by Shadwell Stable and bred in Kentucky by Stonestreet Thoroughbred Holdings LLC, rallied from a stalking position and held off a determined filly, Search Results, to win the Longines Kentucky Oaks by a neck at odds of 5-2 in a final time of 1.48.99. This win marks the 4th Kentucky Oaks victory for trainer Todd Pletcher and the 2nd for jockey John Velazquez. Malathaat is a daughter of Curlin out of Dreaming of Julia and now has lifetime earnings of over $1.2 million.

Today we celebrate Malathaat and her connections, but also the fans who joined us to enjoy this beautiful day of racing,” said Churchill Downs President Mike Anderson. “The success of the 147th Kentucky Oaks is a tribute to the team at Churchill Downs, our community partners, sponsors and participants who worked tirelessly to ensure that we could safely and responsibly welcome back the fans that are an essential part of this great tradition.”

Churchill Downs Inc. continued the tradition of using Oaks day as a platform for the company's charitable initiatives. This year's virtual Kentucky Oaks Survivors Parade presented by Kroger with supporting partner Ford, honored survivors of breast and ovarian cancer along with honorees who are actively receiving treatment with a moving video montage accompanied by a live performance by vocalist Shea Leparoux, wife of seven-time Breeders Cup Championship jockey Julien Leparoux. The tribute was concluded with an honorary lap around the racetrack by the Norton Healthcare Mobile Prevention Unit. CDI has contributed over $1 million to charitable partnerships dedicated to the early detection and prevention of breast and ovarian cancer. The five-year charitable partnership with Louisville-based Norton Healthcare extended this year to also celebrate Norton employees who volunteered to staff a public vaccine clinic at Churchill Downs in late March and early April.

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Churchill Employees Union Threatening Derby Day Strike

Local 541, the racetrack employees union that includes Churchill Downs valets, has threatened this week to strike over a wage and contract dispute.

A press release sent on behalf of the group Friday said that, “With less than 24 hours until the 147th Kentucky Derby, Churchill Downs Incorporated failed to attend a meeting early this morning to, once and for all, finalize a contract with its valets and avoid major disruptions at the Derby. The governor and mediator were notified of the meeting last night; even still, the valets were once [again] met with radio silence by their employer.”

The Greater Louisville Central Labor Council was expected to take part in a leafleting action Friday afternoon to “preview a potential Derby with valets and parimutuels on strike.”

A statement attributed to valet Ron Shelton was issued later in the day Friday: “Churchill Downs' offer to meet next week is unacceptable and insulting, especially when they canceled our last meeting abruptly and refused to acknowledge our offer to finalize a deal. The biggest day of the year is tomorrow, and Churchill Downs is suggesting we work under a substandard contract so they can drive up their profits.

Churchill Downs made over a billion dollars last year and paid its CEO over $10 million–it is the poster child for corporate greed. Since November, we have been waiting patiently for Churchill Downs to meet our request for a fair contract that allows us to take care of ourselves and our families. Our patience for excuses is wearing thin because we know Churchill Downs could pay us fairly in a second without feeling even the slightest pinch.

There is no need to delay or threaten the Derby, and it's on Churchill Downs to stop the insulting delay tactics and agree to a fair contract.”

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Under Glare of Probing Questions, Curious Answers in Kentucky

The Week in Review by T.D. Thornton

In theory, state racing commissions are supposed to provide a layer of checks and balances by making both racetrack operators and horsemen accountable for their actions. In practice though, that often doesn't happen because regulators in many jurisdictions fail to ask probing questions of licensees during open, public meetings.

In Kentucky, for example, if you want the most concise on-the-record snapshot of what's going on with the circuit, the best source generally isn't a Kentucky Horse Racing Commission (KHRC) meeting. Instead, the proceedings of the Kentucky Thoroughbred Development Fund (KTDF) advisory committee are usually far more informative and insightful.

Bill Landes III, who chairs that committee as a representative of the Kentucky Thoroughbred Owners and Breeders Association (KTOB), is known for cutting to the chase and asking blunt, common-sense questions. Representatives of the state's five Thoroughbred tracks must update the advisory board on how each track is spending money for purses, capital improvements, marketing, and other aspects of their racing operations, and those executives are obliged to answer every query tossed at them, because the KTDF board recommends to the full commission how to allot the millions of dollars in purse supplements generated by live, simulcast and historical horse race betting.

During last week's KTDF advisory board meeting, two exchanges stood out. One put management of Turfway Park on the spot over equine safety. The other revealed surprising reluctance by a Kentucky Horsemen's Benevolent and Protective Association representative to embrace a master plan for improving the infrastructure and quality of racing at Ellis Park.

At one point during the Apr. 6 video meeting, Tom Minneci, the senior director of finance at Churchill Downs, Inc. (CDI), the gaming corporation that owns Turfway, had just finished giving a financial rundown of the track's recently-completed meet.

Landes then asked KTDF board members if there were further questions for Turfway, and Doug Hendrickson, who represents the KHRC on the KTDF advisory committee, had a one-word query: “Fatalities?”

Minneci deferred comment to Tyler Picklesimer, Turfway's director of racing and racing secretary. When Pickelsimer did not immediately respond, Minneci asked Chip Bach, the track's general manager, for help in coming up with the answer.

There was an awkward moment of silence, during which both Pickelsimer and Bach seemed to be caught off guard by the KTDF wanting to know about horse deaths.

“I've got our handle numbers in front of me. I don't have that in front of me,” Bach said. After another pause, he added, “Tyler, do you see it?”

Pickelsimer responded that he did not know the number of equine fatalities that had occurred at his track over the last three months. “I know it was a good meet, but I don't have that in front of me, no.”

Landes, who can be as diplomatic as he is direct, didn't see the need to make the Turfway execs squirm any longer over not knowing something important that they should have. He suggested to have the minutes of the meeting reflect their non-answer as a “deficiency” that needed to be addressed at the next meeting.

Bach promised to come up with the correct figure at that time. He probably should have stopped there, but felt compelled to add that, “The problem with some of the fatality numbers is horses can meet that number after they've left the track. So I just want to make sure that we've got a right number for you. Sometimes we have to go to the commission to get that number.”

This is disquieting on several levels. First, as a corporation, CDI likes to describe itself as being an industry leader in equine safety. Yet neither the GM nor the director of racing at its Turfway operation could state for the record how many fatalities occurred there over the past 90 days, or even offer a ballpark figure.

It's also circularly bizarre that a KHRC board member asked Turfway executives the fatalities question in the first place, but a Turfway official responded that he needed to check with the KHRC to obtain the correct number.

Ellis Park Twilight Zone

Later in the meeting, Jeff Inman, the general manager at Ellis Entertainment LLC, was running down a list of necessary (but generally low-level) capital improvements that Ellis Park was trying to have completed before the start of its meet June 27.

Landes politely interjected, wanting to know when Inman's company was going to come through on the big-ticket items it promised when it bought Ellis Park in 2019, like the widening of the turf course and the installation of lights, which would allow Ellis to slide into a more lucrative twilight simulcast time slot while avoiding the brutal summer heat that is detrimental to horse health and sometimes causes cancellations.

Landes termed those improvements “long overdue, and everybody knows it.”

Inman replied that the turf course widening is likely to happen first, but not until after the 2021 meet.

“If we regain capital funding, we will start work after the horses leave, [by] late October, early November,” Inman said.

J. David Richardson, who, like Landes, represents the KTOB on the KTDF advisory committee, concurred with the chairman.

“I do believe that Ellis Park has enormous potential to do much, much better with at least some opportunity to run under lights and expanded turf racing on a course that's not torn up because you have to overuse it,” Richardson said. “I really want to reiterate…how positive I think this could be for Ellis Park, for Kentucky racing, and for strengthening the whole circuit that we all are trying to do in terms of making Kentucky horses more valuable.”

Landes said he believed that Kentucky Horsemen's Benevolent and Protective Association (KHBPA) president Rick Hiles and KHBPA executive director Marty Maline “would agree with me [that] if you get twilight racing at Ellis Park and some lights there, there ain't no telling what y'all could do. And I'm not telling you something you don't know. I'm hoping Rick and Marty agree with that.”

But when Landes directly asked Hiles–who is a KTDF advisory committee member representing the KHBPA–for his opinion on the Ellis improvement plan, Hiles said he couldn't fully endorse the concept of twilight racing.

“I'm a little concerned about moving racing post times back too far, simply because of the ship-ins from Louisville and Lexington losing an hour in time zones and coming back late at night,” Hiles said. “Getting back at 12, one, two o'clock in the morning–I just don't know how [horsemen] are going to react to that.”

Landes seemed surprised by the HBPA's noncommittal stance, but he tactfully acknowledged that the concerns Hiles articulated about the late nights were valid. (Maline, who was present for the video meeting, chose not to speak on the subject.)

“Well, you have that issue to a certain extent at Turfway,” Landes reasoned, meaning late shipping after night racing. “And [at Ellis] it's either coming in at one or two o'clock in the morning or dealing with 108 or 110 degrees” during afternoon racing.

“I just don't know,” Hiles said. “School, for me, is still out on it.”

It must have been frustrating for Landes and other KTDF advisory board members to be pressing Ellis to make good on promises that could strengthen the entire circuit only to learn that the elected horsemen's representative on their board wasn't entirely supportive of the idea.

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