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Senator Feinstein Pens Letter to Stronach Group About Golden Gate Closure

California Senator Dianne Feinstein issued a letter Wednesday to The Stronach Group (TSG), which owns Golden Gate Fields, requesting answers to the reasons behind the planned closure of the track at the end of the year, and the impacts from the company's decision on other industry sectors.

Since TSG announced on July 15 with a short statement light on detail the closure of Golden Gate Fields–a momentous decision that figures to upend a way of life for many in California–the company has remained publicly mum when pressed about the decision.

“I appreciate the steps The Stronach Group has taken in recent years to address equine safety and welfare concerns at your tracks and for your ongoing operation of Santa Anita Park. Nevertheless, your decision to close Golden Gate Fields will affect many California residents and merits further explanation,” wrote Feinstein, in a letter posted on the senator's website. The Los Angeles Times first reported the missive.

In the letter, Feinstein details the following questions that she enjoins the company to answer:

What is your rationale for closing Golden Gate Fields and why did you choose December 2023 as the closure date?
Will you help employees of Golden Gate Fields find other work in the horseracing industry or elsewhere? If so, which employees and how? Will you offer them positions at the other racetracks you operate?
What are the plans for the land?
How will the closure impact the other track you operate at Santa Anita Park?

“Golden Gate Fields has hosted horse racing since 1941 and is the last remaining full-time horse racing track in Northern California. As you have noted, your decision will have profound impacts on the livelihoods of the permanent and race-day employees at Golden Gate Fields as well as regional horse owners, trainers, jockeys, and stable personnel that consider it their home track,” Feinstein wrote.

Feinstein's letter follows TDN's own efforts to elicit answers from TSG about the closure of Golden Gate.

Between July 16 and July 24, TDN submitted each day to TSG a series of questions covering a variety of issues. TSG responded only once. “For now, the [Sunday] statement is going to be our comment around the story. We look forward to being in touch in the future about our plans,” wrote Stefan Friedman, a TSG spokesperson.

In light of the ongoing information blackout, the TDN published those questions on Monday in an open letter to the company, asking when stakeholders can expect the details they need to make tough long-term business decisions.

Feinstein has inserted herself before in this manner into California racing industry matters.

In late 2021 after the sudden death of GI Kentucky Derby winner Medina Spirit (Protonico), Feinstein called on the California Horse Racing Board (CHRB) to conduct a “thorough, transparent and independent investigation.”

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Open Letter To The Stronach Group: Where Are The Answers?

Over a week has passed since The Stronach Group (TSG) announced with a short statement light on detail the closure of Golden Gate Fields at the end of the year–a momentous decision that figures to upend a way of life for so many in California.

Since then, the company has remained publicly mum on the reasons behind the closure, and its vision for the future.

Every day since the announcement, the TDN has submitted a series of questions, to which TSG has responded only once. “For now, the [Sunday] statement is going to be our comment around the story. We look forward to being in touch in the future about our plans,” wrote Stefan Friedman, a TSG spokesperson, last Monday.

The silence is troubling for the thousands of breeders, trainers, owners, grooms, hotwalkers and phalanx of individuals attempting to make a living from horse racing in the state.

With the clock racing towards the end of the year–when many will pack up bag and box, van and car, to start life anew on Christmas Eve–they face stark decisions about their professional futures and personal lives.

Do they try to make a go of it in Southern California, or do they ply their trade in another state? What's best for their families? What kind of investments should they be making at this year's sales? How do they shape their breeding plans for next year? And what kind of industry will exist to justify such investments?

These are tough questions to grapple with at the best of times–much harder still beneath a veil of uncertainty and not a little fear. The edifice of any successful racing operation is built upon foundation stones laid years, decades sometimes, in advance.

With this in mind, the TDN is publishing the questions submitted each day to TSG, and again asking when can stakeholders expect the answers they need to make those long-term business decisions that ensure this industry's future.

1 – It appears that TSG didn't give all the relevant stakeholders much (if any) of a prior warning before making the announcement. If that is indeed the case, why did TSG decide to make the announcement in this abrupt fashion?

2 – How many horses does TSG expect to be relocated to Santa Anita from GGF? And has TSG spoken with the connections of those horses about possibly making the move?

3 – Many of the horses at Golden Gate don't seem an obvious fit for the Santa Anita/SoCal circuit. Is TSG concerned that fewer horses than expected will make the move? Is TSG prepared to offer cheaper claiming races at SA (cheaper than $10,000) to accommodate the lower-level horses currently stabled at GGF?

4 – What was the reason for closing GGF? Are they economic reasons? If not, are the reasons to do with the recently proposed Berkeley City Council ordinance? Or are they a combination of factors?

5 – Did the economics from Computer Assisted Wagering (CAW) play any part in the decision to close GGF?

6 – Furthermore, TDN understands that the GGF purse account was in deficit to the tune of around $1.9 million. Did this play a part in the decision to close GGF? If so, is Santa Anita's purse account in the red or black?

7 – Is it true the state is stepping in to turn GGF into a park?

8 – What are TSG's thoughts about CARF's proposal to make Cal Expo a year-round hub of racing in the north?

9 – What specific long-term plans does TSG have for Santa Anita? Will TSG be making any substantial financial investments into the property, to show stakeholders that the company is sincere about the long-term viability of the facility?

10 – On top of that, will TSG be making any investments in the Santa Anita backstretch–in particular, to vastly improve living conditions for the backstretch workers living there?

11 – Does TSG intend to purchase the Arizona Downs facility?

12 – Will TSG extend GGF's closure date to accommodate the needs of California industry stakeholders in making the necessary adjustments to their businesses?

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Greg Ferraro Q&A, Part II: HISA Rollout “Inconsistent and Uneven”

After Sunday's announcement that The Stronach Group (TSG) will close at the end of the year its flagship Northern California racetrack, Golden Gate Fields, the company at the helm of the sale has gone silent, ignoring all of TDN's requests for comment this week.

To bring much-needed illumination on this seismic decision, the TDN spoke Thursday morning with Greg Ferraro, the California Horse Racing Board (CHRB) chairman.

Among several points raised, Ferraro shared his thoughts on the need for a fixed hub of racing in Northern California to secure the long-term viability of the state's racing industry, and for necessary renovations of Santa Anita's backstretch accommodation as a condition of licensure at the track.

Ferraro also expressed concern that TSG has not fully considered the potentially stark ramifications from Golden Gate's closure on the rest of the state's stakeholders, including the breeders, owners, trainers and other licensees.

“I have the feeling–I don't know–but I have the feeling since The Stronach Group hasn't put anything out there yet, that perhaps they don't have their plans fully developed,” Ferraro said.

Read part one of the interview here.

The CHRB chair, however, didn't just speak on Golden Gate Fields. Ferraro also shared his thoughts and concerns surrounding the ongoing rollout of the Horseracing Integrity and Safety Act (HISA)'s Anti-Doping and Medication Control (ADMC) program.

Part two of this interview has been lightly edited for brevity and clarity.

TDN: Let's shift gears and move on to the ongoing rollout of HISA's Anti-Doping and Medication Control program. Very broadly, how would you assess the job they've done so far?

GF: I would say it's inconsistent and uneven.

Their rules are somewhat complicated for people. Sometimes they haven't made things completely clear. But their application of the rules and their disciplinary actions have been uneven and inconsistent.

What the basic plan is, is to make a major cultural change in the way racing operates. And in order to do that, you have to have some trust within the industry. I don't think their initial steps have built any sense of trust. So going forward, the industry's a little reticent, let's put it that way.

TDN: What specifics can you point to when you say, 'inconsistent and uneven'?

GF: The incident with the joint injections where some trainers were fine and others weren't. Some horses were disqualified and others weren't. They withheld the names of violating trainers for a long time. Nineteen trainers.

Then there's the inconsistency in the enforcement of this provisional suspension [in the event of a positive for a banned substance]. That's been quite a concern to trainers because a trainer could be put out of business with basically no warning, the way they are going about it.

From a California point of view, we're always quite concerned about due process. [Trainer Ray] Handal is a perfect example. They suspended him. Then, once they looked into it, they found out it was contamination in the feed. It's happened before. The mill runs the cattle feed before they run the horse feed, and the horse feed is contaminated.

So here, this guy is knocked out of business for [nearly] a week, traumatized financially and emotionally, and then it's reversed.

Instead, if they had they just notified the trainer, investigated for a few days and had a hearing before [potentially] suspending somebody, it seems to me that's a fairer way to go. I think most of the trainers in California are used to that kind of system, and that's their feeling as well.

TDN: What you're saying is the current system of an automatic provisional suspension after a positive for a banned substance needs to be eliminated or modified?

GF: Yes. Given the American jurisprudence system of innocence until proven guilty and due process, I think it needs to be reorganized.

TDN: You mentioned joint injections. In California prior to HISA, the intra-articular corticosteroid fetlock injection rule mandated a 30-day stand down period prior to racing, and all intra-articular corticosteroid joint injections had a 10-day stand down before workouts. HISA's intra-articular joint injection rule requires a 14-day stand down before racing and a seven-day stand down before workouts. Do these weaker intra-articular joint injection rules concern you?

GF: Yes, that's a concern to us. It's a step backwards for California. We noticed once we put that rule in place in California, we dropped the musculoskeletal breakdowns dramatically. So, we think it's important.

We tried to get HISA to go along with [California's rules], but they wouldn't. We're still in discussions with them about it. We've cooperated a lot with HISA and we've been supportive of them. And I don't want to come across as being negative of HISA. But for California, you know, it's a bit of a step backward. It's a big expense. And we're not getting that much out of it because we've been ahead of the game nationally for quite some time now.

The corticosteroid issue is something they need to take another look at. Corticosteroids are not bad per se. But corticosteroids and high-speed works combined are not good at all.

Take any athlete that goes into training. Over time, their joint health degenerates. It's just part of what happens. You wear the surfaces down. You can't really slow that [process] down, but you can certainly speed it up. And one way to speed it up is to inject joints [with corticosteroids] in close proximity to high-speed works.

And so, what we've done in California–and what HISA needs to do–is impress upon the trainers that they need to discontinue this attitude of injecting to run or to work and look at corticosteroids as something that they use as a medical treatment combined with rest and other rehabilitative procedures.

Long-term, intra-articular corticosteroids should be eliminated completely from racing.

Santa Anita | Benoit

TDN: What argument does HISA give in pushing back against adopting California's stricter rules?

GF: You have to realize that much of the rest of the country had [weaker] rules [than California]. And so they say, 'we're getting so much pushback from the rest of the country that we can't do it.'

But what we've argued is to let California have its stricter rules and use us as a model. Then, at some point in time, you can go back to the rest of the country and say, 'well, California's had this rule in place and look what it's done. It's been beneficial. Why don't we adopt it nationwide?'

California is the point of the spear in terms of dealing with the public and the liability of horse racing. I think they should use us as a sort of leader in animal welfare and jockey welfare.

TDN: Do you think HISA's approach on this issue runs counter to their stated mandate of animal welfare and safety?

GF: Correct. What it takes is somebody with enough backbone to stand up to the pushback.

I mean, we got pushback in California, too. But we did what we thought was right and it's proven to be beneficial. Now, the horsemen look at us and say, 'well, we didn't like it in the beginning, but we realize it was worth the sacrifice.'

TDN: Are you worried California, after a sharp downward trend in equine fatalities in recent years, might now see an uptick in fatalities and injuries as a result?

GF: Absolutely. That's what our worry is.

TDN: Wow. Because of this, has the CHRB thought about the possibility of California opting out of HISA–at least until these fixes have been secured?

GF: No, we wouldn't do that. We're supportive of HISA overall. We think the concept of a standard rule nationwide is beneficial to the industry overall. These are growing pains. I think we're better off to work within [HISA]. Us pulling out is just not an option.

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Greg Ferraro Q&A: Northern California Racing ‘Necessary’ For Racing’s Viability

Sunday's news that The Stronach Group (TSG) will close its flagship Northern California racetrack, Golden Gate Fields, at the end of the year has ripped through the state racing industry like a cannon shot.

It has left owners, breeders, trainers, grooms and a whole multitude of individuals whose livelihoods hinge around the sport scrambling for answers as they attempt to plot their futures in a vacuum of hard facts.

Instrumental in this confusion is the glaring dearth of public information coming out of TSG. Every day this week, the TDN has submitted a series of basic questions about the company's decision to sell Golden Gate Fields and its short- and long-term plans in California.

TSG has responded only once, on Monday, pointing to its Sunday statement–a statement scant on detail.

Seeking clarification therefore on the reasons behind, and ramifications from, Sunday's news, TDN spoke with Greg Ferraro, the California Horse Racing Board (CHRB) chairman.

Ferraro didn't just speak about Golden Gate Fields, but also shared his thoughts and concerns surrounding the ongoing rollout of the Horseracing and Integrity Act's anti-doping and medication control program (ADMC).

The HISA-related portion of this interview will be published in part two in Saturday's TDN.

The following has been lightly edited for brevity and clarity.

TDN: When did you first know that TSG was selling Golden Gate?

GF: The staff at CHRB heard about it last Friday. Somebody from the agency called with some questions about Golden Gate. [CHRB] staff said, 'well, why are you asking these questions?' And they said, 'Well, the state was in negotiations to make a deal on Golden Gate.'

Then we called The Stronach Group executives and said, 'Do you know what's going on?' They said, 'Yes, Golden Gate is going to be sold,' and asked us to keep it confidential until Monday when they intended to make an announcement. But obviously, it leaked and came out on Sunday.

TDN: Which state agency contacted the CHRB?

The California Business, Consumer Services and Housing Agency. [It presides] over several boards including Parks and Recreation and Natural Resources. We're one of them as well.

TDN: Is the end date for Golden Gate of December 2023 set in stone?

From what my sources told me yesterday, yes, that's set in stone. Any idea of extending dates beyond [Dec.] 18th is a no go.

TDN: Do you know what the motivating factors were in the decision?

No, I don't. Probably the ability to make a deal with the state. Developers have never been interested in the Golden Gate property because of the height limit [on developments]. You can't develop it to make any money.

TDN: Is that what it's going to be used for, a park?

It's not final yet, but I know that's what the negotiations are about.

TDN: Do you think that proposed Berkeley City Council ordinance had any sway in the decision?

I don't think so. Golden Gate has fought those battles before, and I think they would have fought it again.

TDN: What do you make of TSG's argument that this consolidation will reinvigorate racing at Santa Anita?

They claim that they're going to make capital investments in San Luis Rey and Santa Anita to improve racing and make up for the difference of the loss of training facilities in Northern California. I don't know how that's going to work. We'll have to wait and see what they propose.

TDN: Do you know what those capital improvements are?

No, I don't. They haven't detailed anything yet. I assume by our board meeting in August [16th] they'll have some kind of a proposal.

TDN: You haven't seen any detailed TSG proposal yet?

No, I haven't.

TDN: Does it concern you that they'd make such a momentous decision without simultaneously sharing with the public their vision for the future?

It could have been presented a little better, let's just say.

TDN: Are you worried that they don't have a detailed plan?

I'm worried that the proposal is not going to satisfy the needs of the Northern California horseman.

TDN: What do you make of CARF's proposal for Cal Expo to become a hub of racing in the north?

It's an interesting proposal. They're talking about Pleasanton, Santa Rosa and Cal Expo, with the idea that they could race maybe up to 10 months and have their headquarters at Cal Expo.

The problem is the harness [racing industry] has a 10-year contract for training at Cal Expo. So, I don't know where harness racing would go or how you would get around that. But I think it's worth looking at. It's something California horsemen and the breeders are certainly interested in.

TDN: How important is maintaining a substantial racing presence in Northern California for the future of California racing, in your opinion?

It's vitally important. If you just take a look at the foals bred in California, 35% of them race at Golden Gate Fields. That's a substantial number of horses. The thought of moving all these horses to southern California, there's only 20% of them that are suitable for down here. So, what are you going to do with the rest of the horses?

I think some sort of Northern California [circuit], or if it's not Northern California alternate track somewhere, would be necessary for the viability of racing.

TDN: If TSG's vision goes ahead and you see those horses from up north come down south to consolidate racing down there, could that facilitate the collapse of the breeding industry in California, which already isn't terribly healthy?

That's what the breeders are worried about. Yes.

TDN: Are you worried about it as well?

Fifty percent of the horses that race at Santa Anita are California-breds, and that's only 20% of the foal crop.

TDN: It sounds as though then you're leaning towards the CARF proposal.

I think it's interesting. I wouldn't say I'm leaning towards anything at this point. Myself and the rest of the board, we feel it's up to the industry to really solve this problem. We can't do it. The board can't do it. We can assist. We can approve any proposals that look interesting.

But I think at this point, the board would sit back and wait and see what the industry comes up with, what alternate plans they have, and then we can help guide or participate with the industry to solve the problem.

CARF's proposal is interesting. We haven't seen yet what The Stronach Group's proposal is. And maybe there are alternate proposals. Everything's happened so fast that we really haven't had time to dig into what the proper solution would be.

TDN: TSG has been quiet since the announcement, at least publicly. Could the CHRB hold an emergency meeting before Aug. 16 to force the company to divulge information that stakeholders need?

It's something we would consider, but there's no sense holding the emergency meeting if there's no information to come forward at that meeting. So, right now we're looking at different groups to see if they have their proposals consolidated enough to give us a chance to look at it.

I have the feeling–I don't know–but I have the feeling since The Stronach Group hasn't put anything out there yet, that perhaps they don't have their plans fully developed.

TDN: If indeed TSG doesn't have a solid plan, given how integral they are to the future of California racing, do you have concerns about their approach to conducting their business?

Of course. Yes.

The other issue is the money. Betting in Northern California, the money stays in Northern California. In Southern California, the betting stays in Southern California. But The Stronach Group is looking at these capital expenditures. They're going to request part of the Northern California money, and I'm sure that the other groups like CARF and perhaps the breeders are going be opposed to that. So, the real fight may be over where the funds go.

TDN: Speaking of capital expenditures, I think a key thing for many trainers, and certainly the stable staff and the grooms, are the backstretch living conditions at Santa Anita. If indeed TSG succeeds in its plans, could a rehaul of the Santa Anita backstretch be a condition of their license?

Absolutely. It would be.

We're always concerned about the welfare of the backstretch workers given Santa Anita as it stands now. They couldn't absorb any more backstretch workers in those facilities. And so, something would have to be done.

The welfare of the backstretch workers is a primary concern for the board. As it is, where are those people going to go after Dec. 18th? I mean, the week before Christmas, they're out of work, you know? And, and so, that's quite a concern for us as to what's going to happen to those people.

TDN: What do you see when you plot California racing's future–especially a likely future without Los Alamitos. And what role could and should the CHRB play in shoring things up?

It's a concern to us. I mean, Los Alamitos is probably short-lived. If something happened to Doc. [Dr. Ed] Allred, I think that would be the end of Los Alamitos. That leads to Santa Anita and Del Mar. And given the value of Santa Anita's property and The Stronach Group's performance so far, you wonder how long Santa Anita could survive.

So yes, the CHRB is quite concerned about the continued viability of California racing. It's mostly in the hands of the industry. But we're certainly going to take any steps we can to help the industry survive and be healthy.

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