Letter To The Editor: Churchill’s ‘Unprecedented’ Suspension Of Baffert

My wife and I recently started working on our travel plans for next year's Triple Crown races. Unfortunately, that will likely not include the 2024 Kentucky Derby as our trainer, Mr. Bob Baffert, for the 3rd year in a row still won't be allowed to race our horses at Churchill Downs, should our horses be so qualified. We have had to deal with this for the past few years with multiple horses, where Churchill Downs, a public entity, has deemed itself to be a higher power than the various state horse racing commissions and arbitrarily and capriciously chose to exact its own extended punishment on Mr. Baffert for, what now really appears to be, personal and vindictive reasons.

It's disappointing that Churchill Downs has decided to use its private property exclusion rights in the manner it has. Not only has Churchill Downs initially applied these rights to suspend Mr. Baffert for a period eight times as long as that imposed by the Kentucky Horse Racing Commission (the body responsible for implementing the rules of racing), Churchill Downs decided in July 2023 to apply these rights indefinitely to a validly licensed trainer with no regulatory violations since his initial suspension. Extending the suspension and leaving it open to review at the end of 2024 is unprecedented.

I am not aware of other sports where the tracks, arenas or stadiums can dictate what athletes, coaches or owners are allowed to compete in their facilities. When NASCAR penalizes drivers, crews or other team members for infractions, does Daytona Speedway, Bristol or other tracks randomly ban those same drivers and crews for additional length of times? Imagine if Jerry Jones, who owns Texas Stadium, was allowed to ban a specific athlete, coach or team from competing at Texas Stadium because he wasn't happy with punishment the NFL governing committees meted out for a late hit, a personal foul or Deflategate. What if MLB, NHL, NBA/WNBA, MLS or any other competitive sport league allowed for arena owners to do this for petty offenses under the guise of specific conduct being detrimental to the sport? It's ludicrous and unimaginable!

With the advent of HISA we now have a national governing body in place that is developing consistent standards across all states. The Kentucky state rules that existed at the time of the original suspension with respect to betamethasone, a controlled substance, have been superceded by HISA regulations. Mr. Baffert was suspended for 21 picograms (or .021 nanograms) of betamethasone in Medina Spirit. The most recent HISA regulations now use a screening limit of .20 nanograms of betamethasone in horses before any action would be taken. It's ridiculous to me for Churchill Downs to extend Mr. Baffert's suspension given that 21 picograms is almost 90% below the threshold!

I have had the opportunity to work with many world class public and private companies during my career as a partner at a large global firm, having worked closely with C suites and boards on over 500 transactions. I have never seen behavior like this from a board in my career. The allegations around the “false narrative” that the Churchill Downs board has used to defend this action indicate to me there is something deeper and more personal. It appears that Churchill Downs is sending a message to all horsemen and horsewomen not to cross Churchill Downs or proffer alternative points of view lest similar suspensions, far in excess of what is deserved, will be meted out to them. This bullying and abuse of power is not in the best interests of the sport.

It's not just the trainer that suffers either. By extending the suspension, Churchill Downs is not just punishing Mr. Baffert, but Churchill Downs is punishing me. There is significant value that has been lost. Similarly, Churchill Downs is punishing my partners. Churchill Downs is punishing other owners with horses with Mr. Baffert. Churchill Downs also is punishing Mr. Baffert's employees and their families. Churchill Downs is punishing fans, old and new, many of whom are drawn to the sport because of Mr. Baffert.

The bigger issue at play here is the upside down relationship between Churchill Downs and the athletes/horses, the coaches/trainers/breeders and owners. Churchill Downs is nothing without them. I am not alone in this opinion. It would be a shame to see the history of Churchill Downs diminished because of the bullheadedness of a few.

With the upcoming 150th anniversary, the story isn't going to be just about who's there, but who's not and why.

Gregg Slager, Waves Edge Capital, LLC

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Baffert/Zedan File New Medina Spirit Appeal

Owner Amr Zedan and trainer Bob Baffert, connections of the ill-fated Medina Spirit (Protonico), filed a petition for a judicial review of the Kentucky Horse Racing Commissions's disqualification of the colt from his win in the 2021 GI Kentucky Derby.

The news, first reported by Bloodhorse, noted that the petition was filed in Franklin Circuit Court in Kentucky Tuesday and also includes a protest over Baffert's suspension in Kentucky.

BloodHorse reported that Zedan and Baffert claim in the petition that the “laboratory limit of detection” used to identify betamethasone in Medina Spirit “is contrary to the plain terms of KHRC regulations and is void as arbitrary and capricious.”

They also argue that KHRC's exercise of rule making and adjudicatory powers is illegal and that the penalties against Zedan “are unconstitutional, arbitrary and capricious.”

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CDI To Open Six Race And Sports Books At Kentucky Properties Sept. 7

The Kentucky Horse Racing Commission (KHRC) has approved temporary licenses for six Churchill Downs Inc. (CDI) properties to begin accepting in-person sports wagers on Thursday, Sept. 7, the company said via a release Wednesday morning.

CDI will operate Race and Sports Books at its racetracks and Historical Racing Machine (HRM) facilities in Kentucky which include:

CDI's new sports betting kiosks will be located among existing bar and simulcast areas for guests to place wagers. Each of CDI's HRM venues will implement a “Bet & Jet” feature that offers guests designated parking spaces for 15 minutes in order to quickly and easily place their in-person sports wager.

“CDI is excited to bring our experience operating retail sports wagering experiences to Kentucky with many thanks to the Kentucky General Assembly, Governor Beshear, the KHRC and the Kentucky Public Protection Cabinet for their efforts in making this a reality,” said Bill Carstanjen, CEO of CDI,”

In addition to retail sports betting, the KHRC also approved temporary licenses for three online sports wagering service providers that will operate in partnership with CDI's racetracks: FanDuel, Penn Sports Interactive and Fanatics. Approved service providers can begin accepting online wagers on Thursday, Sept. 28.

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Sports Wagering Licenses Approved in Kentucky

The Kentucky Horse Racing Commission (KHRC) voted to approve temporary licenses for sports wagering operators and service providers, Kentucky Gov. Andy Beshear announced Tuesday.

A temporary license grants up to one year of operation in the state while under continued review. With the approval of these licenses, Kentucky bettors now know the retail facilities where they can place a sports wager and which mobile applications will be licensed in the state.

“The countdown continues as we move closer to sports wagering with retail locations opening in just 16 days,” said Gov. Andy Beshear. “Thank you to the KHRC commissioners for their dedication to getting this done right and getting it done in time for the opening of the NFL season.”

“We are excited to open sports wagering on our target date as we continue working through this careful process dedicated to wagering integrity and protecting bettors in the state of Kentucky,” said KHRC Chairman Jonathan Rabinowitz.

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