Economic Impact Study Confirms Florida’s Equine Power as a Top National Horse Industry

According to the recently released American Horse Council Foundation 2023 Equine Economic Impact Study, the Florida equine industry contributes $12.8 billion to the Florida economy.

Florida Thoroughbreds contribute $3.24 billion annually to the Florida economy, more than one-quarter of that horsepower.

The study commissioned by the American Horse Council reaffirmed the status of the Florida equine industry, and specifically Thoroughbred horse racing, as a major sports and agricultural industry within the state.

Florida remains the third-leading equine state by population (behind Texas and California) with 335,000 head creating more than 112,000 jobs. Florida's 87,600 Thoroughbreds–one of every four horses in Florida–support 33,500 jobs total, or 30% of equine employment.

One-in-five Florida households participate in equine activities and more than 30% register as horse enthusiasts having owner, participant or spectator status. Florida lands dedicated to equine and equine-related activities total 561,000 acres.

“Florida, and specifically Marion County, has clearly maintained its rightful position as Horse Capital of the World by population, participation and economic value,” Florida Thoroughbred Breeders' and Owners' Association CEO Lonny Powell said.

“Even better, Sunshine State Thoroughbreds are consistently a top-three leading producer of Thoroughbred runners and second-ranked source of national stakes winners.”

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Amid Daunting Industry Issues, A Message To Symposium Students: Don’t Give Up

A panel discussion titled “From Data to Dollars: Understanding Horse Racing's Economic Impact As Racing's Future is Questioned” during Wednesday's Global Symposium on Racing hosted by the University of Arizona Race Track Industry Program (RTIP) led off with moderator Alan Foreman confronting “the elephant in the room that we dodge.”

Foreman, the chairman and chief executive officer of the Thoroughbred Horsemen's Association, said racing is facing an “existential moment” at a time when industry stakeholders increasingly must make the case for the sport's so-called social license to exist in the face of intense pressure from anti-racing activists and a younger generation of Americans who hold the belief that animal-based entertainment is more cruel than cool.

“It's not about foal crop. It's not about field size. It's not about whether we have a core product,” Foreman said, ticking down the list of the common concerns that industry insiders often debate.

“The single biggest issue right now [is] should the federal government, and should our state legislatures, continue to support our business?” Foreman said.

Foreman then rephrased his rhetorical question more bluntly so there would be no misunderstanding: “Is it time to end horse racing in this country?”

Foreman certainly doesn't think so, and neither did the panelists who joined him at the podium.

But the group did try to offer pearls of wisdom as to how industry stakeholders might fight back when confronted with that question.

Julie Broadway | Horsephotos

Their answers largely centered on the sharing of strategies for getting across the industry's far-reaching scale and the potential ramifications of ceasing racing, and several speakers even articulated how some entities in the sport have effectively lobbied their respective states to secure financial incentives, bolster racing programs, and modernize facilities, like the currently underway rebuild of Belmont Park and the planned re-imagining of Pimlico Race Course.

Foreman pointed out that even though there is now federal oversight in the form of the Horseracing and Safety Act (HISA) Authority, racing in the United States remains primarily a state-sanctioned business, and how much of the industry operates under laws that were enacted for vastly different economic reasons decades ago than what we face now.

Every year at about this time when applying for next season's racing dates, Foreman said, track operators increasingly have to defend why their states should support our sport's way of doing business.

“The point is, what the state giveth, the state can taketh,” Foreman summed up.

And demonstrating that we are upholding that “social license” must take the form of deeds and not just words, Foreman said. He and the other panelists also concurred that the sport's narrative also must be backed up by accurate economic data, which helps to drive home points to legislators and regulators.

What we need to successfully convey, Foreman said, is “if you talk about the economics of this business; the value of horse racing to the economies, of our local communities, of our states, of our country…I think that we can overcome this very challenging environment that we are in.”

Julie Broadway is the president of the American Horse Council (AHC), a national organization whose work and data helps not only racing stakeholders, but everything equine-centric in the country, under a scope that ranges from broad national issues to smaller initiatives at the local government level.

“You cannot sit still and sit back and wait for people in [government] to figure out what goes on in our industry and what it's all about,” was Broadway's assessment of how to approach dealing with politicians who can help usher through changes via legislation.

Regardless of the level of government, Broadway said the approach is largely the same. Getting your message across means 1) educating decision-makers; 2) setting context and dispelling misinformation and inaccuracies about your position; 3) stating the positive and pointing out unintended and/or negative consequences, and 4) making the overall narrative relatable and personal.

Those points are all underpinned by being armed with the proper data, Broadway said.

Najja Thompson | Fasig-Tipton

Najja Thompson, the executive director of the New York Thoroughbred Breeders, said that a lot of times when racing people go in to make their cases to legislators, they have to be aware that they'll be dealing with a lower-level staffer at first. “And they're not listening to me unless I have the data to implore them to get their representative to speak to me directly on why racing is important in New York,” he said.

But, Broadway added, racing industry stakeholders can't benefit from that data if they don't join in to help compile it.

Broadway gave the example of a recently undertaken AHC economic impact study that sought to include feedback from the racing industry. The data will eventually be used to underscore the importance of horse racing within America's larger equine population, and it will be available for anyone who wants to cite it in making their case for support from legislators.

Yet only four Thoroughbred tracks responded.

“This survey was out for more than six months,” Broadway explained. “I'm sad to say that the Thoroughbred racing industry had a really low response rate. I mean, we really had to beg for data.”

Broadway contrasted that with participation from the harness racing industry, “because they really stepped up. They are getting their own breakout report just on Standardbred racing [that will] cut across all states where Standardbred racing occurs.”

Lonny Powell, the chief executive officer of the Florida Thoroughbred Breeders' & Owners' Association, said he was stunned to hear that support from Thoroughbred tracks was so low.

“That's amazing. That's tough. How are we going to tell our story if nobody's even trying?” Powell said.

“I'm always a track guy,” Powell continued, alluding to his years in track management prior to a career turn toward executive jobs with industry entities. “And I just don't get it. I don't get why you wouldn't want to tell the story.”

Tom Rooney, the president and chief executive officer of the National Thoroughbred Racing Association, pointed out that being a reliable broker of data is important, but that you need to also skillfully be able to tell the story of those numbers in a narrative form to get your point across to non-racing listeners.

“Clearly, the data is about jobs. It's about farms. It's about these things that we're used to going away, and maybe having to change the way that we work,” Rooney said. “If you work in the horse racing industry, you're kind of the subculture of skills that's probably applicable [in] very few other places. So we live in our own world, and we wouldn't be here if we didn't think that world was a good and beautiful endeavor to belong to.”

Added Powell: “You've got to be able to tell somebody what the consequences are if your industry goes away.”

Lonny Powell | Serita Hult

Powell also pointed out that reams of data are great, but that time in front of legislators is limited, so racing stakeholders need to distill it into manageable, relatable chunks.

“You've got to know it. You've got to believe it. You've got to have confidence in it. And you really have to care about the industry you're talking about. Otherwise, it's just a study,” Powell said. “Make your story relatable to those that aren't in our industry.”

Several panel participants underscored that people in racing have to take the time to forge personal bonds with legislators so the sport's stakeholders can be viewed as trusted sources.

In other words, don't go seeking help from politicians for the first time only when “your back's against the wall,” Powell cautioned.

“Are you kidding me? You've got to develop relationships. That takes years,” Powell said.

Foreman stressed that the racing industry needs to hone (and often repeat) the message that the sport is an economic engine, and that the money it generates often gets reinvested back into the community in ways that aren't apparent to legislators.

“Here's something that very rarely gets talked about, but legislators love to hear this,” Foreman said. “Racing is a community. We take care of our people,” he continued, giving examples of how in his home state of Maryland, the horsemen's health system provides full health care for the people who work in racing.

“That is something that doesn't fall back on the local economy, that doesn't fall back on social services. It doesn't fall back on the state,” Foreman said. “It's the racing industry that supports that. We take care of the people who work with us, [and] that resonates with legislators. And that's why they're willing to support the industry, because they understand the local impact that it has.”

To get that story across to political decision-makers, Foreman said, “we combined the economic impact with the social license aspects of it, and that's the takeaway.”

Powell, however, had a different message to impart, speaking directly to RTIP students. He prefaced his comments by letting the RTIP majors know that he is a graduate of that program who was attending his 41st edition of the annual symposium, and that he understood how some of the presentations over the past two days that focused primarily on industry problems might be giving students second thoughts about pursuing a career in the sport.

“Don't change your major,” Powell implored them, his voice at times cracking with emotion. “That's exactly why you're needed in leadership. That's exactly why you're needed in this business. Because we need people that believe you can make progress versus 'ride it all out.'”

“It's difficult. It's changing,” Powell said of horse racing. “But you can't give up.”

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Florida Sire Stakes Moved As FL-Bred 2YO Incentives Announced

In an effort to further enhance the 2-year-old program in the state of Florida, 1/ST RACING, the Florida Thoroughbred Breeders' and Owners' Association (FTBOA), Florida Thoroughbred Horsemen's Association (FTHA) have announced that $1.75 million in Florida-bred racing incentives will be offered at Gulfstream Park in 2023. The renewed Florida-Bred Incentive Fund (FBIF) will pay out a total of $450,000 in bonus money to 2-year-old maiden winners.

The FBIF program offers Florida-bred two-year-old open maiden winners a minimum bonus of $2,500 for maiden-claiming races and up to $10,000 for a Florida-bred two-year-old winning an open maiden special weight race at Gulfstream.

The FTBOA will offer an additional $100,000 in win bonuses for eligible Florida-sired winners of open maiden special weights, paying $5,000 for up to 10 races for males and females.

“It's imperative that we all work together to promote and build a robust breeding and racing industry in the state of Florida,” Billy Badgett, 1/ST RACING's Executive Director of Florida Racing Operations, said. “To that end, it's important to attract new owners to our sport throughout Florida and the industry. These incentives, and the change in dates of the popular Florida Sire Stakes program, gives us a great opportunity to fulfill these goals.”

Additionally, the Florida Sire Stakes series, to be run at Gulfstream for the 10th straight season, offers $1.2 million in purses and have been pushed back on the annual racing calendar to give owners and trainers more time to prepare their Florida-bred juveniles for the lucrative series. The dates for the 2023 FSS are as follows:

  • Sept. 9–$100,000 FSS Desert Vixen S. and $100,000 FSS Dr. Fager S. at six furlongs;
  • Oct. 21–$200,000 FSS Susan's Girl S. and $200,000 FSS Affirmed S. at seven furlongs;
  • Dec. 2–$300,000 FSS My Dear Girl S. and $300,000 In Reality S. at 1 1/6 miles

“Florida's stakeholders are aligned with one focus–what can we do to help our breeding and racing industries?” said FTHA President Joe Orseno. “We need to find ways to make it worthwhile for breeders and owners to invest in our state. We believe that the new Bonus Program will encourage greater interest in buying and breeding Florida-breds. By moving the dates of the FSS races, late-developing 2-year-olds will have a better chance of participating. We are excited about the future of the Florida Thoroughbred industry.”

“FTBOA is pleased to work with Gulfstream and FTHA on a program for 2023 featuring our priority Florida Sire Stakes program while enhancing our Florida Breeders Incentive Fund for the benefit of our highly regarded Florida-bred 2-year-olds at Gulfstream on a summer through winter basis,” commented FTBOA CEO Lonny Powell.

FTBOA President George Isaacs added, “We are pleased with the continued FSS races as our industry centerpiece promoting Florida stallions and farms. I also consider it a plus anytime we can offer purse incentives for our bread and butter two-year-olds competing at all levels at Gulfstream. We anticipate this will be one of many cooperative efforts improving the industry economics and stability.”

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Lonny Powell Receives FSAE Honor

Lonny Powell, the CEO and executive vice president of the Florida Thoroughbred Breeders' and Owners,' was recognized as the Executive of the Year by the Florida Society of Association Executives at its annual conference held July 20-22 in Tampa.

The award, which was presented Friday during the conference awards luncheon, honors the association executive who has displayed the highest commitment to professional growth and pride in association management, with evident professionalism and leadership in both services to the association management profession and to the community.

“I am very honored to be selected by the FSAE as Florida Executive of the Year,” Powell said. “I extend my greatest appreciation to FSAE, their awards committee and salute the Association's state-wide and diverse membership of leading executives and decision makers in our Sunshine State's expansive non-profit, hospitality, member and trade association spaces. I also extend my appreciation to the member or members who nominated me in the first place to be considered for this Association's highest honor.”

Powell was also honored by the American Horse Council, which represents all breeds of horses in the nation's capital, with its acclaimed Van Ness Award in Washington D.C. in June.

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