Tracks Cancel Friday Cards, Cite Poor Air Quality

The New York Racing Association, Inc. (NYRA) canceled live racing Friday at Belmont Park due to a rapid decline in air quality late this morning, the organization said in a release midday.

After horses were in the paddock for the first race, the decision was made in consultation with the New York State Equine Medical Director, NYRA management and veterinary staff in order to ensure the safety of all participants.

The indoor facilities at Belmont Park and Aqueduct Racetrack remained open for simulcasting. Live racing is scheduled to resume on Saturday at Belmont Park with a 10-race card with first post at 1:05 p.m. ET.

Earlier Friday, Woodbine Entertainment canceled their Friday card due to poor air quality, the track said in a release.

Environment Canada's air quality index for Toronto was listed as 'High Risk' and was expected to remain at that level throughout the day. Woodbine's decision to cancel came through consultation with the HBPA and was consistent with the AGCO's air quality guidelines.

Woodbine said they would continue to monitor the situation and provide updates as required. The next card of live racing, which includes five graded stakes races on Canada Day, is scheduled for Saturday afternoon at 1:10 p.m. ET.

Also, poor air quality in the Mid-Atlantic region caused by smoke from Canadian wildfires, forced the Maryland Jockey Club to cancel Friday's live program at Laurel Park, the organization said in their own release.

The entire 10-race program has been moved, as is, to Thursday, July 6 with a post time of 12:25 p.m. ET. Laurel would remain open for simulcasting and live racing is set to resume Saturday.

 

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Maryland Commission Chair Resigns, Citing ‘Emasculated’ Powers

Michael Algeo, who has served on the Maryland Racing Commission (MRC) since 2016 and was chairing that board, resigned from both positions, effective immediately, June 14.

Frank Vespe of Maryland's “Off to the Races Radio” was first to report the scoop on his show's June 17 broadcast.

Algeo's departure accentuates a time of regulatory upheaval within Maryland racing that in recent months has been marked by three other long-serving commissioners (David Hayden, Tom Bowman, Tom Winebrener) also either resigning from the MRC or not having their terms renewed by the governor.

Those recent departures have roughly coincided with the passage of a Maryland law in April to create a to-be-appointed oversight board with broad powers, the Maryland Thoroughbred Racetrack Operating Authority (MTROA).

In addition, the MRC is in the midst of the nationwide regulatory transition involving the Horseracing Integrity and Safety Act (HISA) Authority coming into power to police the sport's safety and drug testing.

Speaking on Vespe's show, Algeo also cited other concerns for the sport as he leaves his position, like the seemingly never-ending cycle of horse safety issues, plus the decades-old debate within Maryland about whether Laurel Park, Pimlico Race Course, or both figure into the state's long-term plans for racing.

“I've often compared it to playing a Whac-A-Mole game,” Algeo told Vespe. “The minute you address one issue, one crisis, up pops another. And so I just thought it was time for new blood, younger blood, somebody that can come in and have a fresh look. And God bless them, because it's a great industry, and I feel very honored to have served for the past seven years….I'm going to be as interested as everybody else to see where this goes and how this all ends.”

Asked by Vespe how all those pieces of the puzzle-the MRTOA, HISA, horse safety, the possible rebuilds at Pimlico/Laurel-are going to fit together under the commission's umbrella, Algeo admitted he didn't have a good answer.

“I'm going to plead ignorance,” Algeo told Vespe. “I don't know how they're going to fit together. [The question I often get now is] 'Oh, so Maryland has created a new racing authority to oversee Maryland racing. So there is no more commission?' That's the question I'm getting. That's the perception of people, and perceptions carry a lot of weight.”

Algeo continued: “I believe that the role of the MRC has been diminished significantly. It has been emasculated significantly. And it is not what it was when I started in 2016. And so it's going to be really interesting to see how two entities, the racing authority and the racing commission, work together.

“The simple answer is that the commission is a regulatory body, period,” Algeo told Vespe. “I have been told that the [MRTOA] is really just a failsafe creation in the event that [1/ST Racing, which owns Laurel and Pimlico] should leave Maryland and [some entity] is needed to run the day-to-day operations. But until it actually forms and we see how it operates, I still have a lot of questions.”

Algeo is a retired Maryland Circuit Court judge. His stint as the board's chair had been scheduled to end in October, with his term on the MRC expiring in July 2024.

Last month, Algeo was honored before the GI Preakness S. with the Special Award of Merit at Pimlico's annual Alibi Breakfast. That award recognizes those “who have made a positive impact on the racing industry.”

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6-Mo. Extension to Maryland Racing Agreement; Details Not Disclosed

Tuesday's Maryland Racing Commission (MRC) meeting yielded the news that the state's horsemen, breeders, and the operator of Pimlico Race Course and Laurel Park have agreed on yet another six-month extension agreement to keep racing going after a 10-year deal expired at the end of 2022.

The placeholder agreement will go into effect for the final six months of 2023, and it follows a similar six-month extension reached earlier this year that is set to sunset June 30. The eventual goal is to come up with a longer-term contract.

Mike Rogers, the president of the racing division for 1/ST Racing, which owns the Maryland Jockey Club, which in turn owns both Pimlico and Laurel, led off his monthly presentation with the announcement of the agreement with the Maryland Thoroughbred Horsemen's Association (MTHA) and Maryland Horse Breeders Association.

But when commissioner Robert Lillis asked Rogers to elaborate on a June 6 news story published in Maryland Matters that dealt with the MTHA agreeing to use purse money to subsidize operations at the two tracks, Rogers balked at answering.

“I don't think I'm at liberty to talk about the details of the extension agreement. I'm not authorized to talk about those terms,” Rogers said.

At that point, MRC chair Michael Algeo stepped in to clarify that he didn't feel the parties were required to disclose such details at this time, because the announcement of the agreement extension was not a matter that the commission had to act on or vote on that afternoon.

But another commissioner, George Mahoney, wanted to know, “At any stage, will the Maryland Racing Commission be privy to the terms of the six-month agreement?”

Rogers replied that, “I would have to defer to our lawyers on that. I don't know what the disclosure requirements are on that.”

Alan Foreman, an attorney who serves as the legal counsel for the MTHA, then offered to give an explanation from the horsemen's perspective.

“In fairness to all the parties, and in response to commissioner Lillis's question, the horsemen and the tracks and the breeders have been a party to a 10-year agreement that expired at the end of 2022 in which the horsemen and breeders [already] were helping to subsidize the operations of the racetracks,” Foreman said.

“That was no secret. That was the agreement entered into with the commission back [in] 2012 to stabilize the industry,” Foreman said.

“What the parties have done is to extend the [expired] agreement [from] January to June 30, and the extension now through Dec. 31 is under almost identical terms,” Foreman said.

“So there's nothing new here. It's what's been continuing since the beginning of the 10-year agreement, and ultimately, if and when there's a longer-term agreement, that issue will be addressed. So the so-called subsidy from the horsemen and breeders is not a new item,” Foreman said.

Algeo, a retired Maryland Circuit Court judge, then weighed in again.

“If I could kind of frame the issue so we make certain it's very clear, at this juncture this is not being presented today for the commission to motion, to rule on it, or to discuss,” he said.

“I mean, quite obviously, at least I'm not going to approve anything without knowing what's in the agreement,” Algeo said. “And so, we don't know what's in the agreement, so there's nothing for us to address.

“My understanding [is] that this is a courtesy on behalf of the Maryland Jockey Club and the horsemen and the breeders to indicate that they have extended it, which they have done, by the way, frequently… If it was required for us to approve that now, to address it, then obviously we would have to know the contents of the agreement.”

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After Preakness, Maryland Racing Will Return To Laurel, But For How Long?

Pimlico, the home of a Triple Crown race, is rundown and needs to be torn down and rebuilt. Its sister track, Laurel isn't in much better shape. To have two tracks in such condition does not make for a sustainable model for the future of Maryland racing, a problem that track owners and politicians have been trying solve for more than a decade.

But the latest round of give-and-take appears to have yielded a solution. Money once earmarked for a rebuild of both Pimlico and Laurel is expected to be used solely to rebuild Pimlico and to create a racing facility worthy of hosting the middle jewel of the Triple Crown. But there won't be any money left over for Laurel, which likely means the track is nearing the finish line.

The scenario has shifted dramatically since 2019 when the Stronach Group, which operates both Maryland tracks, was hoping to rebuild Laurel and close Pimlico. That would have meant moving the GI Preakness S. to Laurel. That led to the city of Baltimore filing suit against the Stronach Group trying to block them from closing Pimlico.

Under political pressure to keep Pimlico open, track ownership pivoted and along with horseman, breeders, political leaders and others, got behind a new plan. In May of 2020, The Racing and Community Development Act (RCDA) of 2020 was signed into law by then Governor Larry Hogan and on the surface, it seemed to be the answer to all of Maryland's problems. The legislation called for the Maryland Stadium Authority to issue up to $375 million in bonds that were earmarked to pay for a rebuild of both tracks. The Preakness was going to stay in Baltimore, Pimlico was not going to close and the Stronach Group would be able to go forward with its plans to have a new and improved Laurel as the centerpiece of the Maryland racing circuit.

“This is a very important day in the future of Maryland racing,” Alan Foreman, general counsel for the Maryland Thoroughbred Horsemen's Association, said when the legislation was signed into law.

And then the world shut down.

Within weeks of the RCDA being signed, COVID-19 was in full throttle and that meant that nothing was going to happen anytime soon when it came to building new racetracks in the state.

It's been a bit more than three years since the RCDA legislation was approved and the pandemic is a thing of the past. But, when it comes to Pimlico and Laurel, time has stood still. Untouched, they remain in the same poor condition that they were in 2020. No shovels have hit the ground and not a penny of government money has been spent to improve either track.

The problem is that the bill that was signed in 2020 is no longer a viable solution in 2023. Three years later, the $375 million originally budgeted to rebuild both tracks is not nearly enough to pay for the projects. By some estimates, due to inflation, the cost to rebuild both tracks has doubled. Additionally, rising interest rates have led to the bonds being worth less.

“Almost to the day that the RCDA was signed by governor the world shut down and COVID hit,” said Alan Rifkin, an attorney who represents the Stronach Group in Maryland. “Nothing was happening. When the world re-opened, interest rates and inflation went through the roof. The inflationary spiral was so substantial that things like lumber, concrete and steel cost 20 to 30% more right after COVID than they had been previously. The other problem is that the $375 million we estimated would only produce today about $220 million in proceeds. As you pay more in interest to bond holders, there's less in the proceeds after interest payments are made. From the interest rate spiral and the inflationary spiral, that has meant that there is not enough money to do both Laurel and Pimlico. No matter how much you stretch the blanket, the blanket cannot cover the entire bed. That is the problem.”

But there should be enough money to rebuild one of the tracks, and everything points to that being Pimlico and not Laurel. Pimlico will be spared because that is what the city and the state politicians want, since a new track and a Triple Crown race remains a big part of the fabric of Baltimore. And its apparent that without the blessing of political leaders in the state there is no way that the money needed to rebuild one track or the other would be made available to the Stronach Group.

“The legislature and the Governor's office, the powers that be, have directed the parties to prioritize Pimlico,” Rifkin said. “We understand that there is not enough money to do both capital projects.  The policy makers have instructed all of us in the industry working on this to prioritize Pimlico. We know that as a fact.”

“If there is going to be any redevelopment of the racetracks in Maryland, Pimlico has to be locked into that,” Foreman said. “That's because of the Preakness and because of the importance of the racetrack to the city of Baltimore. They are inextricably linked.”

Closing Laurel would solve some problems, but also create some others, namely what to do with all the horses stabled there. The Pimlico backstretch is not big enough to handle the state's horse population. A new training center that could accommodate as many as 1,000 horses would need to be built. Rifkin said that keeping Laurel open as a training facility is not likely to happen.

Mage | Jim McCue

Another issue may be the vision the Stronach Group has for a Maryland racing circuit with just one track. Rifkin maintains that the current structure, which includes year-round racing, is not economically viable. Not only does he want to see just one track, he wants to see a shorter racing season. That is something that could lead to a contentious relationship with horsemen.

“I don't think it should come as a surprise to anyone that operating two racing facilities 20 miles apart from one another is not conducive to profitability or, for that matter, sustainability under the current circumstances,” he said. “That is why we continue to raise the question of industry-wide restructuring in an effort to right size the number of facilities and right size the number of racing days in order to best ensure a viable, sustainable and profitable racing industry for years to come.”

Those are problems for another day. The emphasis now is on hitting the reset button on a project that would give Maryland racing a quality, modern facility that works for such a big event as the Preakness. With there still being a number of issues that have to be resolved before construction can begin on a new track, it's not clear what the timeline might be.

“There have been so many estimates so far as when a new Pimlico would be up and running,” Foreman said. “There was a time that people were estimating it would be ready for this year's Preakness. And as you know, the wrecking ball hasn't hit the grandstand yet. During construction Laurel will have to be operating during the time it will takes to construct a new Pimlico. I don't think the wrecking ball will hit Pimlico until a plan has been established for the racing industry in terms of year-round racing. That means that a training center site will have to be identified and plans for it will have to be developed. It's conceivable that construction could start after the Preakness next year, but a lot of work will have to be done between now and then to accommodate that happening.”

No matter when it happens, the future of Maryland racing is set to look nothing like the present. Pimlico is the more celebrated of the two tracks because it is the home of the Preakness, but Laurel has quite a history of its own. It opened on Oct. 2, 1911. In 1952, they ran the first ever Washington D.C. International, the first U.S. race that sought horses from overseas and it soon became one of the biggest events on the calendar. In 1984, the track was sold to Frank J. De Francis and his partners, Robert and John “Tommy” Manfuso, who brought several innovative improvements to Laurel.

But progress needs to be made in Maryland and most agree that the only way that will happen is if Laurel is razed and that a new Pimlico becomes the centerpiece of the future of Maryland racing.

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