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View From The Eighth Pole: Keeping HISA Out Of Racing’s Alphabet Soup

The Horseracing Integrity and Safety Authority (HiSA) got off to a solid start last month when Maryland attorney Charles Scheeler was elected by fellow directors to chair the nine-person board that will act as an independent oversight body on medication and safety issues for Thoroughbred racing in the United States.

The board includes some names that should be familiar to horse racing people (i.e., former Breeders' Cup and National Thoroughbred Racing Association executive D.G. Van Clief Jr., retired Keeneland president Bill Thomason, former New York Racing Association chief financial officer and president Ellen McClain, and Joseph De Francis, whose family previously owned Maryland tracks Laurel and Pimlico).

But there are others who bring major league sports experience to the Authority. Adolpho Birch spent 23 years at the National Football League's headquarters focusing on enforcement of integrity and drug issues, while Leonard Coleman served as president of Major League Baseball's National League (and is a former member of the Churchill Downs Inc. board of directors).

From the world of politics comes board member Steve Beshear, who served as Kentucky's attorney general, lieutenant governor and governor (his son Andy is Kentucky's current governor). Dr. Susan Stover from the University of California at Davis has blazed a trail of ground-breaking research on equine injuries and prevention. Scheeler played a significant role in Major League Baseball's Mitchell Report, which investigated the use of performance-enhancing drugs in that sport.

It is an outstanding group with a variety of skill sets that should work well together as the industry moves into uncharted waters with the development of national rules on medication and safety issues that will require the approval of the Federal Trade Commission in Washington, D.C.

The Authority's second step from the gate was a stumble – temporarily it is hoped – with the appointment of industry organization veteran Hank Zeitlin as interim executive director. Zeitlin is like that retread football coach with a mediocre record who keeps finding new teams to give him a chance. He's gone from management positions at The Jockey Club, to Equibase, to the Thoroughbred Racing Associations of North America in an undistinguished manner.

I'm going to take Scheeler's word for it that Zeitlin is being hired on an interim basis only – that Zeitlin's institutional knowledge will be somewhat useful as Scheeler and other board members get up to speed. He is not the person for the job long-term if the Authority is looking for a dynamic executive as its leader.

I'd almost forgotten that there still is a Thoroughbred Racing Associations of North America and that Zeitlin was collecting an industry paycheck from them. The TRA is not to be confused with the NTRA – the National Thoroughbred Racing Association. They are two distinct groups in racing's alphabet soup of organizations.

I'm not even sure what the TRA does any more, except to count and pass through the money its racetrack members earn for their ownership share of Equibase, the industry's official database that the TRA tracks co-own with The Jockey Club (TJC). Long ago, including during Zeitlin's tenure there as president, the Equibase board decided the company's primary role was to be profitable rather than to serve as a marketing and growth tool for Thoroughbred racing as almost all other sports use their historical data.

Does the industry still need the TRA? Does it really need the NTRA? Can it get by without the Thoroughbred Owners and Breeders Association, or the Association of Racing Commissioners International?

This might be a good time for a downsized industry to look at consolidating some of these organizations and their responsibilities. TRA could probably outsource Zeitlin's current job as its executive vice president to an accountant. The Thoroughbred Racing Protective Bureau, a subsidiary of TRA that once served as an important integrity and security division for horse racing, may fulfill some role in connection with the Authority, particularly when it comes to wagering security, the primary area in which the TRPB is now involved.

The NTRA is a ghost of what it was originally designed to be when it was established nearly 25 years ago. Having long ago given up on being a “league office” for horse racing, the NTRA in recent years has focused on lobbying in Washington, D.C., running a profitable handicapping tournament, and presenting the Eclipse Awards. With NTRA president Alex Waldrop announcing that he will retire at year's end, this might be an opportune time to divvy up those responsibilities to existing groups like The Jockey Club or Equibase and save some money on salaries.

Same goes for the Thoroughbred Owners and Breeders Association (TOBA), whose only real purpose is the grading of North American stakes. Since The Jockey Club prepares the statistical data at TOBA's behest for the annual grading process, that responsibility could easily be transferred. TOBA has been operating in the red in recent years, with its chief executive taking home roughly 30% of the organization's annual revenue.

And what about the Association of Racing Commissioners International (ARCI)? Its primary function seems to be the development of model rules for a variety of activities in racing, including medication and safety policies. With those two categories falling under the Authority's umbrella, there will be a lot less meat on the bone for ARCI president Ed Martin to chew on.

Nothing will change, of course. Some of these organizations with uninspired leadership have evolved into nothing more than jobs programs, and they're not going away. Racing cannot afford to let the Horseracing Integrity and Safety Authority (HISA) be steered toward mediocrity and become just another ingredient in racing's bland alphabet soup. Its success is too important.

That's my view from the eighth pole.

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Alex Waldrop To Retire As NTRA President At End Of 2021

National Thoroughbred Racing Association (NTRA) President and Chief Executive Officer Alex Waldrop announced Wednesday that he will retire at the end of 2021 after 15 years at the helm of the organization.

Waldrop has had a distinguished career in the horse racing industry, serving as President of Churchill Downs and later as Chair of the equine, gaming, and entertainment practice group at the Kentucky-based law firm Wyatt, Tarrant & Combs, where he served as the NTRA's general counsel before joining the organization full-time in his current role.

During Waldrop's tenure at the NTRA, the association transitioned from a member dues-driven organization into a self-sustaining, program-driven operation with more than 90 percent of the entity's revenues now derived from programs that support the industry.

Under Waldrop's leadership, the NTRA grew its footprint in Washington, D.C., solidifying its position as the industry's leading voice and the entity that represents all segments of the Thoroughbred industry on Capitol Hill. As the trade association for the Thoroughbred industry, the NTRA has focused its lobbying on legislation having a direct and material impact on its members and their business activities as they relate to horse racing, breeding and pari-mutuel wagering.

“My decision to step down at the end of this year is driven by the knowledge that the NTRA is now financially strong and strategically well positioned to lead on key issues affecting Thoroughbred racing,” said Waldrop. “It's the right time for new leadership to take the reins and lead the organization in new and exciting directions. While I will truly miss my colleagues at the NTRA, I am certain they are prepared to meet the challenges ahead. I also have great confidence in the NTRA Board to lead the organization through this time of transition.”

Throughout much of 2020, the NTRA worked to ensure that the industry was not left behind as federal lawmakers crafted numerous important pieces of economic stimulus legislation tied to COVID-19 relief. Another major focus of the NTRA over the past two years was the ultimate passage of the Horseracing Integrity and Safety Act (HISA), which became law in December 2020. The NTRA played a key role in bringing together various factions of the industry represented on the NTRA Board to find common ground in their support of HISA.

Support of and by horseplayers led to one of the biggest highlights during Waldrop's time at the NTRA when in 2017 the U.S. Treasury Department formally adopted modernized regulations regarding the withholding and reporting of winning pari-mutuel wagers. The new regulations were the culmination of nearly a decade of work on Capitol Hill by the NTRA, and overnight resulted in dramatically reduced reporting obligations for horseplayers and practically eliminated withholding on winning wagers, allowing horseplayers to retain more of their winnings and leading to higher pari-mutuel handle.

Waldrop also serves as President of NTRA Horse PAC®, the Federal Political Action Committee of the NTRA that has raised more than $5 million through voluntary contributions to support political parties and candidates for elective office at the federal level.

In 2008, Waldrop and the NTRA led an industry-wide effort that resulted in the creation of the NTRA Safety and Integrity Alliance, an entirely new program and self-regulatory body that for more than a decade has identified and implemented national safety and integrity standards at many of the nation's leading racetracks. Since its inception, the Alliance has helped spearhead reforms in the areas of improved medication and testing policies; guidelines for injury reporting and prevention; safety research; providing a safer racing environment; and post-racing care for retired race horses.

During Waldrop's tenure, the NTRA National Horseplayers Championship grew from an event offering just over $500,000 in prize money to one that now offers purses and awards totaling nearly $4 million.

The NTRA's group purchasing arm, NTRA Advantage, realized unparalleled success during Waldrop's tenure. Advantage surpassed $1 billion in sales to the equine industry in 2019 and has provided nearly $200 million in savings to industry participants. Longtime Advantage partner John Deere is among the industry's longest-running sponsors through its support of Churchill Downs, the Breeders' Cup and the Advantage program.

Earlier in Waldrop's career, as President of Churchill Downs racetrack, he led the effort to develop a master plan for renovation of the historic Churchill Downs, which led to a $126 million modernization of the facility and paved the way for future capital investments on the property that continue to this day.

“Alex was the right person at the time to lead the NTRA. He stabilized the organization, refocused its mission and core functions and produced results that have and will continue to benefit our industry in the future. He led the organization's unparalleled achievements in Washington, from modernizing the law governing withholding of winnings to benefit our horseplayers, to tax reform for our breeders and owners, pandemic relief for all stakeholders and safety, health and welfare standards for our equine athletes. Most importantly, through his quiet but tireless leadership, he was able to bring consensus among competing industry stakeholders for the industry's best interests during challenging times. He deserves our gratitude and respect.”

Alan M. Foreman, Chairman of the Thoroughbred Horsemen's Association (THA) and the NTRA's longest serving Director.

“On behalf of the Breeders' Cup, we want to thank Alex for his time and dedication to the NTRA and the overall Thoroughbred industry, including his commitment to equine safety through the Safety and Integrity Alliance and support for the Horseracing Integrity and Safety Act.”

Drew Fleming, President and Chief Executive Officer, Breeders' Cup and NTRA Board Director

“Under Alex's leadership, Del Mar has been a longtime supporter of all of the major NTRA programs—the Safety and Integrity Alliance, NTRA Advantage, the National Horseplayers Championship ― and the NTRA's federal legislative activities in Washington that are so vital to all segments of the horse racing industry. Each of these programs has realized sustained growth while providing ongoing value to members like Del Mar.”

Josh Rubinstein, President of Del Mar Thoroughbred Club and NTRA Board Director.

The NTRA board of directors has begun a formal transition process and is conducting a search for Waldrop's successor. Interested candidates are invited to send their resume to CEOposition@NTRA.com.

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HISA Board Chair: We Will Be Tough

Addressing the media Wednesday through a Zoom call, Horse Racing Integrity and Safety Authority Chair Charles Scheeler said that the authority will go to great lengths to clean up the sport and its efforts will include increased out-of-competition testing and investigative work that goes beyond the standard methods of drug testing.

When asked whether or not rules and penalties under the authority may be stricter than they are currently with state racing commissions, Scheeler replied: “It's certainly a possibility in some areas.”

He continued: “We need to make it so there is a sufficient deterrent so that the people who would violate these rules will think twice or three times and ultimately won't do it. My firm belief is that no matter how robust the drug testing system is it's not going to be sufficient in and of itself to deter the sort of doping that we want to deter. What we want to add in a very powerful way is an investigative unit to enforce the anti-doping rules. You see in sports that the greatest deterrents all came out of non-test cases, like Balco and Biogenesis and the recent work of Five Stones in horse racing. We intend to have a vigorous component to follow up on the rumors or the syringe that is found in the stall. What you have to come up with is comprehensive package that will significantly decrease usage. Some folks just look at it as, not if I should play fair or not, but through a very cold blooded cost-benefit situation. The costs have to be greater than the rewards.”

To achieve those goals, out-of-competition testing will be increased under the authority.

“There is definitely going to be more emphasis on out-of-competition testing,” Scheeler said. “I would not necessarily assume that it will happen at the expense of after-competition testing, which will remain in a fully robust form.”

During the 30-minute session with the media, Scheeler touched on a number of subjects:

(*) He said that racing will become more popular with the general public once the sport has been cleaned up.

“A cleaner and fairer sport is also going to be a more popular sport,” he said. “Quite frankly, one of the reasons horse racing has lost popularity is that many have been turned off by the fact that you have so many horses breaking down during the course of a racing season. It is our job to make racing safer for the horses and for the jockeys. It is our premise that if we do so then horse racing will have chance to regain some of the popularity it used to enjoy. It is essential for the long term viability and popularity of the sport that we show we are doing whatever we can to make this sports safer for the participants.”

(*) Lawsuits questioning the constitutionality of HISA are pending and could delay the implementation of the Horseracing Integrity and Safety Act. Scheeler said those lawsuits have not kept the authority from moving forward. HISA is supposed to go into effect July 1, 2022.

“The lawsuits are not stopping the work from going forward,” Scheeler said. “We have started our work and we fully intend to meet the deadlines that are set forth in the act. Not only do we need to be up and running by July, 2022 but also we have to get a whole slew of proposed rules to the Federal Trade Commission so they can provide the public with an opportunity for review and for comment. We have every intention of being up and running in July, 2022 and meeting the deadlines in the act.”

(*) Scheeler cited the ongoing story with Medina Spirit (Protonico) as an example of what's wrong with the current system of policing the sport and enforcing the rules.

“I do think that the situation with Medina Spirit is instructive in a couple of areas,” he said. “One of the problems is that you have different types of penalties in different states for betamethasone and we really need to have a uniform system. It is very confusing to the public that certain levels of different medications are allowed in some jurisdictions and not in others. In this era, horses travel and compete in any number of jurisdictions. What we will bring to the table that will be very helpful in this type of situation is a system whereby the public is going to know what the rules are and that they are going to be the same in every Triple Crown race. The tolerances will be the same, the permitted substances will be the same and that there will also be testing in the same fashion. If there is a sanction it will be applicable across the board and not at some racetracks and not others. What this particular situation really speaks to is importance of having a uniform results management and enforcement structure.”

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‘Monumental Task Ahead Of Us’: Charles Scheeler Elected Chairperson Of HISA Board

The Horseracing Integrity and Safety Authority's board of directors has held its inaugural meeting and elected Charles Scheeler as chairperson of the board. This meeting marks a major step in the operational and organizational transition of the Authority from the nomination and selection process to the critical work of developing uniform safety and integrity rules for the horse racing industry.

“I'm honored to be selected by my fellow board members as the first chairperson of the Horseracing Integrity and Safety Authority. We have a monumental task ahead of us, and I want to thank the nominating committee for bringing together this outstanding group of individuals whose inherent integrity and combined expertise give me confidence in our ability to meet the challenge,” said Scheeler. “All eyes are on the Thoroughbred industry as we move into the third leg of the Triple Crown, and on behalf of the board and its standing committees, I'd like to express our unwavering commitment to our mission to protect the wellbeing of human and equine athletes and the integrity of the sport.”

Scheeler is a retired partner at DLA Piper. His extensive background includes serving as lead counsel to former Senator George Mitchell in connection with his independent investigation of performance-enhancing substance use in Major League Baseball (the Mitchell Report). He also served as the monitor of the Pennsylvania State University investigation relating to compliance with its obligations under the Athletics Integrity Agreement with the National Collegiate Athletics Association and Big Ten Conference. Additionally, Scheeler led an investigation by an independent commission examining health and safety practices within the University of Maryland football program. The resulting report recommended an array of best practices designed to place the university at the forefront of student-athlete health and safety.

“Charles Scheeler is the right choice as the Authority's first board chair and brings a wealth of experience and leadership to the role,” said Authority board member Leonard Coleman. “His deep background and exceedingly positive reputation on issues of critical importance in sports speak for themselves, making him a strong nominee for the board. I'm very pleased to see him take on this expanded role.” Coleman was also co-chair of the Authority's blue-ribbon nominating committee that identified the initial board of directors and standing committee members.

Prior to joining DLA Piper, Scheeler was a federal prosecutor in the U.S. Attorney's Office for the District of Maryland from 1984 to 1989. During his time in public service, he successfully prosecuted racketeering, narcotics, money laundering and fraud cases.

In addition to practicing law, Scheeler is an engaged member of the community. He serves as chair of the board of Rosedale Federal Savings and Loan Association. He also serves as chair of the Johns Hopkins Bayview Medical Center and is a member of the boards of Johns Hopkins University, Johns Hopkins Medicine and the CollegeBound Foundation. Scheeler graduated from the University of North Carolina at Chapel Hill and Harvard Law School.

“With the election of Charles Scheeler as the Authority's chair, the board of directors is moving ahead with the development of uniform safety and integrity rules and regulations for the industry,” said Nancy Cox, who will continue to serve as chair of the Authority's nominating committee. “Under his leadership, the Authority is well positioned to recommend and implement a new and effective regulatory framework to safeguard the future of horse racing.”

Under the oversight of the Federal Trade Commission, Authority board and standing committee members are responsible for developing, implementing and enforcing a series of uniform anti-doping, medication control, racetrack safety and operational rules to enhance equine safety and protect the integrity of the sport for participants, fans and bettors.

As part of the national governing framework that will be established for the sport, the 2020 Horseracing Integrity and Safety Act (HISA) created a set of baseline standards and reforms from which the Authority will begin its work. The anti-doping and medication control standing committee, in partnership with the U.S. Anti-Doping Agency (USADA) will advise the Authority on permitted and prohibited substances, laboratory testing standards, in- and out-of-competition testing and programs related to research and education. The racetrack safety standing committee will advise the Authority on training and safety standards, veterinary exam protocols, racing surface quality and maintenance, centralized databases for injury and fatality tracking and analysis, uniform track safety standards, and research and education related to every facet of racetrack safety.

“The Authority is working with the Federal Trade Commission to implement a series of uniform safety standards to reform and govern one of our nation's most treasured pastimes by the July 2022 program effective date,” said Scheeler. “Our work to protect the integrity and safety of the sport for our equine and human athletes, participants and fans is the top priority for everyone involved with the Authority. We will deliver on our goals and fill the long-standing need for national oversight of this storied sport to ensure it can be enjoyed for generations to come.”

Additional information on HISA and the Authority can be found at hisaus.org.

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