Baffert: Without Stay, KHRC Suspension Will ‘Effectively Put Me Out of Business’

The connections of recently disqualified GI Kentucky Derby winner Medina Spirit (Protonico) took to a Kentucky court Monday in an attempt to keep their equine drug positive penalizations from being enforced while their case gets appealed at the commission level.

Trainer Bob Baffert is facing a 90-day suspension and $7,500 fine for now-deceased Medina Spirit's betamethasone overage in the 2021 Derby. Owner Amr Zedan has been ordered by the KHRC to forfeit his colt's purse winnings. But the DQ of Medina Spirit from America's most important horse race will affect both men beyond those penalties, their Feb. 28 court filings argued.

“If I am suspended, I will be prevented from entering horses to race anywhere in the United States,” Baffert stated in an affidavit that accompanied an amended civil complaint and a request for a temporary injunction against the KHRC's rulings. “This is because any suspension imposed by Kentucky will be recognized through the reciprocal arrangements between the racing jurisdictions of each state. Certain races only come around once a year and are limited to horses of a particular age. Every day that I am prevented from entering horses in races is one day of lost opportunity that I can never regain, and for which I will be harmed.”

Baffert's KHRC suspension is set to run Mar. 8 through June 5. He has appealed the Feb. 21 ruling. But on Feb. 25 the KHRC denied him a stay against enforcing the penalties. Such stays are a common–but not mandatory–practice at most state racing commissions unless the infraction is considered overly egregious or if the penalized person is deemed to be dangerous.

“Moreover, any suspension will likely have the effect of harming my business for a significant period of time much longer than the suspension itself,” Baffert stated. “The suspension will precipitate horses currently in my care–worth tens of millions of dollars–being moved to other trainers because their owners cannot allow those horses to be excluded from participation in the lucrative races. This will effectively put me out of business in all states.”

Monday's filings by Baffert and Zedan in part amended their initial June 7, 2021, complaint in Franklin County Circuit Court that initially sought an injunction to keep the KHRC from allegedly violating their due process rights. The new version Feb. 28 asked for four forms of legal relief:

“1) For an Order of this Court granting Plaintiffs' appeal pursuant to KRS 230.320(2)(f) and staying Stewards Rulings 21-0009 and 21-0010 pending their appeal; 2) For an Order of this Court granting Plaintiffs an injunction pursuant to Civil Rule 65.04 staying Stewards Rulings 21-0009 and 21-0010 pending their appeal; 3) For their costs herein expended, including reasonable attorney fees; and 4) Any and all other relief to which they may appear entitled.”

The amended complaint outlined for the judge how the process of appeals and stays is supposed to work, according to the plaintiffs' perspective.

“Typically, given the preliminary nature of a Stewards Ruling, the KHRC stays any implementation of penalties imposed therein until all appeals are exhausted and there is a final and binding decision. This is in large part because the KHRC recognizes that irreparable harm will be suffered by licensees if they are forced to presently suffer the consequences of a ruling that is subject to being reversed later. For example, a trainer who is forced to serve days of a suspension now cannot ever get those days back if the ruling imposing the suspension is subsequently vacated.”

At a later point in the document, it explained, “Absent a stay of the Stewards Rulings, Zedan will be forced to return purse monies and Baffert will be prevented from pursuing his chosen profession and enjoying the fruits of his labor through the exercise of his state issued occupational license, in addition to having his reputation tarnished.”

The complaint also raises a new issue: That the KHRC is allegedly exceeding the suspension time frame that it is allowed to impose on Baffert for this sort of infraction..

“Further, even if a suspension was appropriate (which it is not), the KHRC rules only provide for a 30-60 day suspension and not 90 days,” the filing stated, citing 810 KAR 8:030, Section 4(3)(a). “Thus, even in the light most favorable to the KHRC, the suspension is unlawfully long.”

As the plaintiffs put it, such a purportedly unlawful suspension would unleash a cascade of irreparable harm upon the Hall of Fame conditioner.

“The owners of the horses Baffert trains, many of whom are at the pinnacle of the global Thoroughbred racing industry, are currently making decisions to protect their ability to race at numerous upcoming races, including the Triple Crown. A 90-day suspension would prevent Baffert from participating in the Triple Crown. Any suspension of Baffert which impacts his ability to enter horses in races across the country, including the Triple Crown, negatively impacts those decisions…”

As Baffert put it in his affidavit, “In California, where I am based, any suspension over 60 days will require me to vacate my barns and remove all signage. As a result, I will be effectively put out of business.

“Graded stakes are the most elite races and a Grade I stakes race is the highest level of racing in the industry. Graded stakes generally offer the largest purses, and are intended to showcase the best horses in the industry. All three Triple Crown races are Grade I stakes races. A 90-day suspension will prevent me from participating in any of those races in 2022.”

(Note: The GI Belmont S., the third leg of the Triple Crown, is scheduled this year for June 11, which actually falls outside of Baffert's KHRC penalization period.)

TDN could not obtain a comment from the KHRC prior to deadline for this story. The KHRC in the past has reiterated that it does not comment on pending litigation.

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KHRC Denies Baffert a Stay of Suspension

The Kentucky Horse Racing Commission (KHRC) has denied trainer Bob Baffert's request for a stay of a 90-day suspension handed down to him earlier in the week for Medina Spirit (Protonico)'s betamethasone positive in the 2021 GI Kentucky Derby. The KHRC also denied a stay of its decision to disqualify Medina Spirit from first place in last year's GI Kentucky Derby.

The Louisville Courier Journal and the Daily Racing Form were among the first to report the story. In most circumstances, once a trainer or owner has appealed a racing commission decision, stays of a suspension are a formality and they remain in place throughout the appeal process. Craig Robertson, one of two lawyers working on the Medina Spirit case for Baffert and owner Amr Zedan, told the Courier Journal that a denial of a request for a stay “is unprecedented in my experience.”

The KHRC's decision will force the Baffert legal team to head to the courts in an effort to receive a temporary restraining order that would force the KHRC to put the suspension on hold.

“Denial of the stay is consistent with arbitrary and capricious manner in which the stewards have ignored the facts and law in this manner,” said Baffert's other attorney, Clark Brewster. “Fortunately, we will soon procedurally eclipse the biased actors and have the ear of adjudicators that adhere to the rule of law instead of man.”

According to the DRF, a letter signed by Marc Guilfoil, the executive director of the KHRC, was sent to Brewster and Robertson in which Guilfoil wrote: “I do not find good reason to grant a stay.” Guilfoil also wrote:  “your clients have the right to petition for a review of this decision.”

At present, Baffert is under a suspension that will prevent him from entering any horses in the Derby or any other races at Churchill Downs and Churchill Downs-owned tracks. His status at the NYRA tracks remains up in the air as NYRA has granted Baffert a hearing, which may be a precursor to it also suspending him. A decision in the NYRA matter has not yet been announced.

But the Churchill ban and the potential NYRA ban are not reciprocal and do not have to be recognized by other racetracks. Prior to his being suspended by the KHRC, nothing stood in the way of Baffert competing in the GI Preakness S. or in the Derby preps at Oaklawn Park, Santa Anita and elsewhere.

But if his lawyers are unable to get a court to go against the KHRC's decision, Baffert's stable will have to shut down completely, with the suspension set to begin on Mar. 8.

There's little doubt that the KHRC is determined to play hardball with Baffert. Though it took nine months to even hold a hearing into the matter, once the wheels were set in motion, Baffert was quickly suspended and given 90 days rather than a lesser penalty. The KHRC based the 90-day suspension on Baffert having had four drug violations within a 365-day period. In making their decision, the stewards representing the KHRC dismissed the contention from Baffert's side that the betamethasone got into the horse's system through an ointment, which, they argued, is not a violation of the rules. Denying a stay is the latest sign that the KHRC is not going to back down.

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No Baffert Trainees Nominated to Oaks

A total of 103 horses have been nominated to the GI Kentucky Oaks and they all have one thing in common: none are trained by Bob Baffert.

According to Churchill Downs Senior Director, Media Services, Darren Rogers, it was not a case of Churchill rejecting Baffert's nominees, but a matter of Baffert failing to nominate any horses.

Baffert is under suspension at Churchill and ineligible to race in the Oaks, but that doesn't mean that horses currently under his care won't be able to compete in the race. Baffert's owners have the option of removing their horses from his barn and giving them to another trainer, which would allow them to run in the Oaks. Owners also have the option of paying a $1,500 late nomination fee that would make their horses eligible for the Oaks. If a horse has still not been nominated by April 16, a $25,000 supplemental entry fee can be paid at entry time.

Baffert and his legal team could also find a solution through the court system, perhaps getting an injunction or finding some other avenue that would force Churchill to accept his entries.

Why Baffert did not nominate any of his horses is unclear. Was it a sign that he is not going to fight the Churchill ban and is resigned to not competing in either the Oaks or the GI Kentucky Derby? And, with the chance that his horses could compete in the Oaks for another trainer, why wouldn't their owners have made sure that the nomination fee, which is just $200, was paid?

The TDN sent texts to Baffert and his lawyers Clark Brewster and Craig Robertson and only Brewster responded, writing “Bob is considering all options.”

Baffert has won the Oaks three times, most recently in 2017 with Abel Tasman (Quality Road).

Baffert has a handful of horses who, under normal circumstances, would be considered top threats for the Oaks.    His team of 3-year-old fillies is led by GIII Las Virgenes S. winner Adare Manor (Uncle Mo), who is No. 1 in the latest edition of the TDN's Kentucky Oaks Top 10. The TDN list also includes the Baffert-trained Eda (Munnings) at No. 6. She is the winner of last year's GI Starlet S., but has not run since.

Baffert's top colts have been nominated to the Kentucky Derby, but the process of nominating for the Derby is different from the Oaks. The 3-year-old males are nominated to all three Triple Crown races at once and there are no restrictions in place that would keep Baffert out of the GI Preakness S.

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Baffert Legal Team Optimistic After KHRC Hearing

A full 289 days after the running of the 2021 GI Kentucky Derby, the Churchill Downs stewards finally got around Monday to holding a closed-door hearing regarding the positive post-race test for Medina Spirit (Protonico). And while a decision may not be imminent, Clark Brewster, the lawyer representing trainer Bob Baffert, emerged from the hearing hopeful that his side will prevail.

“Upon an honest and fair-minded review, Bob Baffert and Medina Spirit will be fully exonerated,” Brewster wrote in a text.

As has been the case with the Kentucky Horse Racing Commission (KHRC) since the running of last year's Derby, the hearing was shrouded in secrecy, which left many questions unanswered. Brewster said he did not know when a decision would be announced.

“How long is a string?” he texted, using a phrase that meant he did not know the answer and did not want to venture a guess.

Medina Spirit tested positive for the medication betamethasone.

Should the Churchill stewards decide to disqualify Medina Spirit, Brewster, Baffert and owner Amr Zedan would have the option of appealing the decision to an administrative law judge. It seems likely that's an option they would take in a legal battle that could drag on interminably.

At first Baffert denied that Medina Spirit had ever been treated with betamethasone, but then changed his story. He said the horse was treated with a skin ointment before the Derby to deal with a rash and the ointment contained betamethasone. The Baffert team subsequently had a split sample from the race tested and said it proved that the betamethasone came from the ointment, which meant that it was not injected into the horse, something that, possibly could have improved performance. The stewards may decide that it does not matter where the drug came from and that its presence in Medina Spirit warrants a suspension, no matter the circumstances.

“We are now left to trust that the stewards will apply the uncontroverted facts to the Kentucky Racing rules as they are written,” Brewster said in his text. “Medina Spirit was treated by veterinarian prescription with a topical salve for a skin infection. The Kentucky rules expressly permit use of topical salves and the treatment given to Medina did not violate any rule. The post-race specimen positive reporting 21 picograms of betamethasone was caused by the topical salve. The Kentucky Rules (and all other jurisdictions) restrict only Betamethasone Acetate or Sodium Phosphate (which appears in a horse's system when injected with betamethasone). These formulations are Injectable solutions into a horse's intra-articular joint. Medina Spirit was never injected with betamethasone and the evidence presented today proved that conclusively.”

Brewster wrote that Baffert has been treated unfairly.

“The false narrative regarding this case was sprung early and spread widely by uninformed or malevolent accusers and spread by careless reporting,” he said.

Even should the stewards decide to maintain Medina Spirit as the winner, Baffert could still be on the outside looking in when it comes to the 2022 and 2023 Derbies. He is under a two-year suspension issued by Churchill Downs and the track would be under no obligation to lift its ban if Baffert is cleared by the KHRC.

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