KHRC Rules the Focus On Day 2 of Medina Spirit DQ Appeal

A deeper dive into the Kentucky Horse Racing Commission's rules defining what medications are considered prohibited versus those that are considered therapeutic and the standards for out-of-competition testing in relation to betamethasone as opposed to post-race testing were the hot topics during day two of the Kentucky Horse Racing Commission's hearing addressing trainer Bob Baffert's appeal Tuesday.

Baffert filed the appeal to clear from his record a 90-day suspension he already served this spring, along with reversing Medina Spirit (Protonico)'s disqualification from his victory in the 2021 GI Kentucky Derby.

Both were the result of the Baffert trainee testing positive for betamethasone after winning the first leg of last year's Triple Crown, which led to the stewards' February ruling which disqualified the horse, cost owner Zedan Racing Stables the $1.86-million purse, and served Baffert his suspension (which ran from April through early July) and a $7,500 fine.

The day started off with Kentucky chief steward Barbara Borden taking the witness stand, where she stayed nearly four and a half hours while providing testimony, as Baffert's team argued that since the betamethasone was administered as an ointment rather than injected, it did not violate any regulations. However, the KHRC maintained that any systematic presence of betamethasone, regardless of how it was received, is prohibited on race day.

Borden took to the stand at 9 a.m., where she began answering questions from KHRC general counsel Jennifer Wolsing, setting the foundation for further inquiry with a review of Gamine (Into Mischief)'s disqualification from her third-place finish in the 2020 GI Kentucky Oaks following her post-race blood test that revealed the presence of betamethasone. Along with Gamine's disqualification, Baffert was fined $1,500.

From there, Borden responded to questions specifically regarding what transpired following the confirmation of Medina Spirit's betamethasone overage in the 2021 Kentucky Derby.

“I'm not happy when there's any medication violation. I felt like the process we were gonna go through…there was going to be a lot of publicity, [it would be] bad for racing in general, [and] would possibly be drawn out like it has been,” she responded when asked by Wolsing what her reaction to the positive test result was.

When asked if her decision in the final ruling was influenced at all by factors such as the media, the cases with Churchill Downs and the New York Racing Association, or Gerard O'Brien–Borden's significant other of 30 years that is a seasonal employee of Turfway Park (which is owned by Churchill Downs)–Borden was firm in her answer, “no.”

She reaffirmed that the stewards' decision was based on Baffert's four offenses in the 365-day period, including Gamine and Medina Spirit's overages of betamethasone in Kentucky–both considered Class C violations–and the overages of lidocaine found in the post-race samples of Charlatan (Speightstown) and Gamine after each won on 2020 GI Arkansas Derby Day, which are considered Class B violations.

“We did consider everything that was presented to us and ultimately this was our unanimous decision,” she said.

Also, during Wolsing's time taking testimony from Borden, she presented results of a review of positives for betamethasone that noted since the threshold change on Aug. 25, 2020, there were only two positives, and both were in Baffert horses: Gamine and Medina Spirit.

Over an objection by Baffert's attorney Clark Brewster, Wolsing presented a 2016 case regarding a betamethasone positive that involved trainer Tom Amoss, where he explained that he believed it came from application of an ointment. Though the case was dealt with under old rules, the case was presented to draw a parallel to the Baffert case, as Borden said the administration of the betamethasone was irrelevant then and Amoss was sanctioned and the horse that tested positive was disqualified.

The case of Kentucky-based trainer Carlos Lopez, who was suspended a total of 180 days following four violations within a year-period in 2014 and 2015, was also brought up as a parallel to Baffert's case.

In the final moments of Wolsing's cross-examination of the witness, Wolsing asked Borden if the ruling handed down to Baffert by the stewards for his four offenses in that year period was a penalization that she'd stand behind today. Borden was quick to respond, “Yes.”

After a brief break, Brewster began his questioning of Borden, focusing intently on the line drawn between what is considered a therapeutic medication and what is a prohibited medication, specifically in the case of the topical ointment Otomax, which contains betamethasone. Though she acknowledged that it is used therapeutically, Borden said that betamethasone is prohibited completely in a post-race sample, meaning it cannot be present in the horse's system at any level on race day.

Brewster also focused on Kentucky's out-of-competition rules, which center around out-of-competition testing's focus on finding substances that are never allowed in the horse, but does allow betamethasone as a therapeutic use, since those tests are not administered on race day.

Borden was adamant to point out that these rules only applied to out-of-competition testing, not testing completed on the day of a race, which strictly prohibits betamethasone.

Later on, Brewster questioned Borden about the Kentucky rules that offer different guidance of various medications based on method of administration, while also citing the differences in rules for non-steroidal anti-inflammatory drugs (NSAIDs) and corticosteroids (which is the category betamethasone falls under), as both are considered Class C medications.

He also cited the lack of detail that came with the 14-day stand down period, which was added in August 2020, and emphasized that it appeared to be “advisory” rather than firm. Brewster also noted the lack of limit or threshold listed, along with the absence of a stop or start time for the stand down period.

“There is no reference at all in a stand down definition that it is regulated by a lab test, is there?” he asked Borden.

“Not in this definition,” she replied.

Later in the day, Kentucky equine medical director Bruce Howard took to the witness stand, where he explained how the out-of-competition testing was handled prior to the 2021 Kentucky Derby, how testing was handled on race day, and what the process of collecting and sending out the post-race samples was like.

“We tested every horse in the Derby, even some that didn't draw in,” said Howard, when asked about the out-of-competition testing conducted.

It was during this time that Howard shared that pre-race testing of Medina Spirit, conducted Apr. 18, did not reveal any detection of betamethasone.

“I was a little surprised we didn't find it,” said Howard. “If it was being applied every day, I would've expected we'd still see it.”

When asked about his reaction to Medina Spirit's betamethasone positive in his post-race sample following his Derby victory by attorney Luke Morgan, representing the KHRC, Howard said, “I hate it when we have this happen. It leads to a lot of problems, obviously. My wish every year is for a good, safe, clean race.”

In terms of substances in the Kentucky rules that do not list a threshold for, Howard made it clear that they are not allowed at any level in the horse on race day, which follows guidance from the industry's Racing Medication and Testing Consortium and the model rules of the Association of Racing Commissioners International.

“Moving these drugs away from race day would give us a clearer picture when we did our race day exams,” Howard said, in response to a question about the stand down period rule change. “If there is a systemic level of corticosteroids or NSAIDs or any of these kinds of drugs, it doesn't matter how it gets in. Anything that can cause a systemic level in a horse concerns us.”

Rounding out the day's session, Brewster questioned Howard on the absence of betamethasone from the list of medications with detection thresholds, also citing a lack of matrix.

“If the medication is not listed with a threshold, it is a limit of detection drug,” replied Howard.

Brewster also brought up whether trainers were properly notified that there was a rule change, which established a zero tolerance of betamethasone, arguing they were not. Howard referenced the guidance from national and international bodies that study medication in racing, also pointing out that he offered his contact information for anyone who had questions concerning the new rule.

Howard ended his time on the stand, and the day's session, answering a few final questions presented by Morgan.

When asked if the route of administration of a drug mattered in terms of a positive finding of a banned substance on race day, Howard firmly replied, “No.”

The hearing in Frankfort, Ky., continues for a third full day beginning at 9 a.m. Wednesday and will move along with morning and afternoon sessions Thursday. If the hearing is not done by Thursday afternoon, it will resume next Monday.

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Baffert Takes Stand in Day One of ’21 Derby DQ Appeal

Trainer Bob Baffert spent 2 1/2 hours on the witness stand testifying at a Kentucky Horse Racing Commission (KHRC) appeal hearing Monday.

Baffert's intent by filing the appeal is to clear from his record a 90-day suspension he has already served while also reversing the KHRC's disqualification of Medina Spirit from the 2021 GI Kentucky Derby.

Those penalties were the result of the Baffert-trained colt returning a positive for betamethasone after crossing the finish wire first in America's most historic and important horse race.

Beyond the already-served suspension (which ran from early April through early July) and a pending KHRC fine for $7,500 (that is also being appealed), Medina's Spirit's betamethasone overage also triggered separate banishments and sanctions from racing at the Churchill Downs, Inc. (CDI) portfolio of racetracks, plus at the New York Racing Association tracks.

Baffert has either fought or is in the process of fighting both of those sanctions in court, but right now he is precluded from having a trainee in the 2023 Derby because of CDI's actions against him (as part of a two-year ban, CDI had also denied Derby participation to the Hall-of-Fame trainer in 2022).

Monday's hearing rekindled many of the same pro-and-con arguments that have been repeatedly articulated by both sides over the past 16 months in various courtroom and hearing settings.

This latest KHRC hearing process could last the entire week.

Horse Racing Nation (HRN) published live updates of the Aug. 22 proceedings in Frankfort, Kentucky.

HRN reported that Jennifer Wolsing, general counsel for the KHRC, framed the case in straightforward terms during her opening statement.

“This is a very simple case,” she stated. “Betamethasone is a class C medication which has been prohibited in Kentucky.”

Clark Brewster, who represents Baffert, countered with his own opening statement that focused on disputing the KHRC's claim that there was an applicable “limit of detection” rule while also disputing the KHRC's assertions that Baffert had a pattern of medication rulings against him.

HRN also reported that, “Brewster also sought to discredit Industrial Labs, which returned the positive test on Medina Spirit, suggesting that the company needed to come back with positive tests to stay in business.”

Brewster also claimed there was a difference between injecting betamethasone (which Baffert has denied) and using it topically as an ointment like Otomax (which is Baffert's explanation of how the drug got into Medina Spirit), according to HRN.

“I won't say it was a mistake [to give Medina Spirit an ointment the day before the Derby],” Baffert was quoted as saying in HRN. “If you use an ointment to humanely heal a rash, it's not a mistake.”

At one point during testimony, Wolsing questioned Baffert's knowledge about medication rules in Kentucky, and asked Baffert to read aloud the ingredient list for Otomax, which includes betamethasone valerate.

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Baffert Stay Request Denied by KHRC

The Kentucky Horse Racing Commission (KHRC) voted 10-0 Friday to deny stays of penalties while trainer Bob Baffert and owner Amr Zedan appeal their equine drug positive rulings related to Medina Spirit's disqualification from the 2021 GI Kentucky Derby.

One of Baffert's attorneys, W. Craig Robertson III, told TDN after the vote that the decision was “very disappointing.” He added that “I have never seen the KHRC not grant a stay in the past. We will take the matter back up with the Franklin Circuit Court on Mar. 17.”

Robertson is referring to an active court case initiated Feb. 28 by Baffert and Zedan to keep their penalization from being enforced while their case gets appealed at the commission level. When their request for an injunction came before that court Mar. 2, the judge said he would hold off on a full hearing for the matter until after the KHRC had a chance to vote on the stay.

Baffert is facing a 90-day suspension and $7,500 fine for now-deceased Medina Spirit's betamethasone overage in the 2021 Derby. Zedan has been ordered by the KHRC to forfeit his colt's purse winnings.

The Mar. 4 KHRC hearing was split up into three parts: First, attorneys on each side (one for Baffert/Zedan and one for the KHRC) were allowed 10 minutes to state their cases. Then the KHRC voted to go into executive session to discuss that matter. That session lasted about 30 minutes and was kept from the public. Then the board reconvened in open session for a roll call vote with zero public discussion.

Ten commissioners voted to deny a stay. Three (Kerry Cauthen, Lesley Howard, Charles O'Connor) abstained because of an “actual or perceived conflict of interest.” Tom Riddle appeared to be muted on the Zoom feed and did not cast an audible voice vote.

Attorney Clark Brewster, representing Baffert and Zedan, said that by refusing to grant a stay, the KHRC was administering a “devastating virtual death blow” to Baffert's business.

After the vote, Brewster told TDN in a phone interview that the lack of a stay would mean the disbanding of Baffert's entire racing stable.

“He's got 88 horses. He's got 70 different [employees] who are the principal earners for their families. It's irresponsible to not allow him an opportunity to put on his evidence and have people judge that evidence and those facts honestly and objectively without bias or an agenda,” Brewster said.

“Do I think the court [will] grant a stay? I can't conceive of  a situation where they would not,” Brewster added.

But with the threat of having to shut down his business for 90 days still looming as a very real possibility, Brewster was asked if Baffert was actively making contingency plans for that outcome.

“Well, I haven't discussed that, honestly, because I'm very confident [that the court will grant a stay],” Brewster said.

Brewster added that courts generally take a hard look at situations in which an agency like the KHRC is “the investigator, the prosecutor, the judge and the jury. You have to really look at making sure there's no bias or there's no particular conflicts in that setting before you allow [the agency] to adjudicate those facts…. I mean, the rules don't even permit a 90-day suspension.”

TDN asked Brewster directly if come May 7, he believes Baffert will have starters in the Kentucky Derby considering both KHRC's ruling against him and the private-property banishment imposed upon him by Churchill Downs.

“It just depends whether the decision-makers, based upon the facts that we have, are objective and dispassionate and neutral,” Brewster said. “[If so] then the answer is 'certainly.' If we don't have the opportunity to get to a spot where that evidence can be decided by a neutral, detached decision-maker, then it's in doubt.”

Brewster's argument at Friday's KHRC meeting largely focused on the stay itself, which had been denied Feb. 25 by KHRC executive director Marc Guilfoil. But he also talked about the difference between betamethasone's administration via the skin rash ointment Otomax (which is how Baffert said Medina Spirit came up positive) versus intra-articular injection to help with joint discomfort (which Baffert denies administering).

“The [denial of the] stay was based upon one line from Mr. Guilfoil that said there's no good basis,” Brewster said during his presentation. “But we never had a conversation with Mr. Guilfoil. He wasn't present at the hearing. I don't know how we could not have had an opportunity to address that with him before he issued the denial.”

Brewster also told the KHRC that the only factual findings that the stewards made dealt with Baffert's recent history of medication violations. But, he argued, Baffert was not given any opportunity to see that evidence or be allowed to comment on or refute it.

“The stewards' ruling in this matter–we don't really know what they ruled. There's no facts. [State law] requires there to be factual findings. What are the facts? What did they decide? We put on a pretty extensive presentation of evidence, both in testimony and in rules and in literature. None of it was commented on,” Brewster said.

“We don't know whether they rejected the testimony. We don't know whether they found [the betamethasone overage to have come from an] ointment or an injectable. We don't know. There's no way to tell. And the law, in Kentucky particularly, it's very clear that if you don't have [findings] articulated, there can't be deference granted to it. In other words, an appellate court or a reviewing body couldn't give credence to a report that punished someone that had no factual findings,” Brewster said.

“The truth of the matter is this case really comes down to a really fine point. And that is, betamethasone is regulated in Kentucky…on the basis of an intra-articular injection. It specifies the exact medication and has a 14-day restricted administration time. That's it…. There has never been a threshold set in the rules…. That's a substantial issue that will be litigated…ultimately in a court. But to disregard not even a reference of it in the findings, is not justifiable sufficiently to have punishment imposed–devastating punishment–without a stay,” Brewster said.

“Betamethasone is a permitted therapeutic medication under Kentucky. Everyone we talked to understood [the KHRC rule pertains to] the injectable, not the salve. But rather, the administration [of] a salve deposits very low bioavailability in a horse. The testimony, irrefutably, at the hearing in front of the stewards [showed] it couldn't possibly have any possible effect on the horse itself,” Brewster said.

“This isn't the kind of violation, any way you look at it, that would warrant a 90-day suspension or that would result in a massive fine [and] the disbanding his barn. This is an overreaction, I believe. But without the factual findings set forth, we don't know what the stewards thought.”

The KHRC adhered strictly to the 10-minute-per-lawyer time limit, and the video feed promptly cut of Brewster in mid-sentence while he was wrapping up his remote presentation.

Jennifer Wolsing, the general counsel for the KHRC, told commissioners that “the question before you is whether there is good cause to grant a stay.”

Wolsing referenced Baffert's history of drug violations in roughly the year preceding Medina Spirit's positive, and also noted the trainer's public avowals regarding better medication oversight in his racing stable and his subsequent attempts to shift the source of the betamethasone that was found in Medina Spirit's system.

“The effect of [all] this was to diminish confidence in an entire industry–breeding, racing and sales,” Wolsing argued.

“The science does not support Mr. Baffert's theory that betamethasone makes a difference to the horse by route of administration. To put it simply, betamethasone by any other name is still a banned substance on race day…. The source of the betamethasone is irrelevant to the pharmacological impact on the horse,” Wolsing said.

“The most important thing that we have to remember as regulators is that our regulations reflect the science. This is what we are here to uphold,” Wolsing said.

“The threshold limit for betamethasone is not stated, which means the threshold is 'limit of detection.' We have threshold limitations for some medications. But we do not have threshold limitations for betamethasone.

“I would also add that in our regulations, Class C betamethasone is not divvied up into betamethasone valerate, betamethasone acetate; anything like that. It is just plain betamethasone, in all of its forms, is a Class C medication if it is present in the horse's system above limit of detection on race date,” Wolsing said.

“Now maybe this betamethasone did come from Otomax. Maybe it didn't. But when you look at our regulations, that doesn't make a difference. And when you look at the science, it doesn't make a difference either.”

Just prior to the vote, Wolsing summed up the KHRC's decision about granting a stay as being about, “Do we want to give Mr. Baffert an opportunity to repeat his negligence, or is it appropriate to deny the stay? The decision is yours, but I certainly recommend that the commission uphold Mr. Guilfoil's decision.”

The KHRC did just as their lawyer recommended, and now the case heads back to court for the Mar. 17 hearing. The judge did say Wednesday that the original Mar. 8 effective date for the penalties would not be allowed to go into effect until after he issues his decision Mar. 21.

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Baffert Sues CDI, Carstanjen & Rankin Over Suspension

Trainer Bob Baffert has filed a lawsuit in U.S. District Court for the Western District of Kentucky against Churchill Downs Inc. (CDI), CDI CEO Bill Carstanjen and CDI Board Chair Alex Rankin. Baffert is seeking a preliminary or permanent injunction that will enjoin Churchill from barring him. At present, Baffert cannot compete in the 2022 or 2023 runnings of the GI Kentucky Derby or any other races at Churchill or Churchill-owned tracks.

He  is also fighting a separate action from the Kentucky Horse Racing Commission, which suspended him for 90 days after Medina Spirit (Protonico) tested positive for betamethasone in last year's Derby.

“The notion that Churchill Downs, which is not even tasked with regulating horse racing in Kentucky, could unilaterally ban a trainer by an edict coupled in a press release without having the facts or any semblance of due process should arouse outrage in any fair-minded person,” said Baffert's attorney Clark Brewster.

Shortly after the lawsuit was filed, Churchill issued a scathing statement, declaring that its fight against Baffert was about protecting the integrity of racing.

“The lawsuit filed by Bob Baffert is disappointing, but certainly not surprising,” the statement read. “His claims are meritless and consistent with his pattern of failed drug tests, denials, excuses and attempts to blame others and identify loopholes in order to avoid taking responsibility for his actions. These actions have harmed the reputations of the Kentucky Derby, Churchill Downs and the entire Thoroughbred racing industry. Churchill Downs will fight this baseless lawsuit and defend our company's rights. What's at stake here is the integrity of our races, the safety of horses and the trust of the millions of fans and bettors who join us every year on the first Saturday in May.”

The Baffert side did not mince words, either. The lawsuit charges that “CDI has, with malicious intent, caused significant damage to Baffert's ability to conduct his customary business on a national scale. From context, it is apparent that CDI's targeted sanctions have the singular aim of destroying Baffert's career.”

The crux of Baffert's case against Churchill is twofold, that the ban deprives him of his right to due process and that only the state racing commission is permitted to issue a ban against trainers.

“Despite the prevalence of actual reckless and dangerous conduct by others trainers and owners (which have sometimes culminated in Racing Commission suspensions), CDI has arbitrarily and capriciously singled out Baffert for this baseless sanction in violation of Baffert's procedural and substantive due process rights under the Fourteenth Amendment to the United States Constitution,” the suit reads.

A federal court ruled that the New York Racing Association violated Baffert's due process rights when issuing a suspension of its own against the trainer. That forced NYRA to hold a hearing into the Baffert matter, the results of which have yet to be determined. However, NYRA is a quasi-state organization and the courts generally treat such an entity differently than they do a privately held company like Churchill. In most cases, private tracks can ban individuals and do so without due process.

On the issue of whether or not Churchill can ban an individual, Baffert's legal team is arguing that such a suspension can only be handed down by a racing commission.

“Baffert expressly agreed to cooperate with the Racing Commission's regulatory process when he entered horses at Churchill Downs and to submit to any penalties imposed after a final order issued by that body. Baffert's culpability, if

any, will be determined in that forum,” the suit reads.

The lawsuit also seeks to force Churchill to award points for the Kentucky Oaks and Derby in the event a Baffert-horse places in a prep race. Churchill has declared that all Baffert-trainees are not eligible to earn any points in the preps, still another factor that might keep Baffert's horses out of those races.

But even if Baffert can win this round in court that does not mean he will be eligible to compete in the Derby. In order to do so, he will also have to find a way through the courts to get a stay of the Kentucky Horse Racing Commission's ban, which is set to begin Mar. 8.

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