Maryland Legislature Approves Plan to Reform State Racing Industry

A bill to radically reform Maryland's racing industry has passed both chambers of the state legislature, with the House voting 105-32 Monday night to approve a project that will see among other things ownership of Pimlico Race Course transferred from 1/ST Racing and Gaming to the state and the establishment of a year-round training facility for Maryland's horsemen and women.

After the Maryland House of Delegates initially passed the legislation unanimously, the bill was subsequently amended by the Senate. This amended bill was then sent back to the House for Monday's concurrence vote.

The legislation will now go to the desk of Maryland governor, Wes Moore, for a final signature, with a veto seemingly unlikely.

“I've worked with governors going back to the mid- to late-1970s in Maryland, and most were very supportive of the industry in one shape or form. But Governor Moore was absolutely committed to this project. His support was instrumental in getting this passed,” said Alan Foreman, voting member of the non-profit Maryland Thoroughbred Racetrack Operating Authority (MTROA), about passage of HB 1524, otherwise known as “Pimlico Plus.”

The MTROA is an industry-led non-profit created last year by the legislature to essentially oversee and help facilitate the Pimlico Plus plan. Pending gubernatorial approval, the rollout of the plan will be a multi-year project beginning June 1, when the law goes into effect.

Among key provisions of the plan, the legislation requires the formation of a non-profit to manage daily operations of Maryland's new industry infrastructure. Those responsibilities are currently filled by the Maryland Jockey Club, owned and operated by 1/ST Racing. The MTROA will have ultimate oversight of this new entity.

“Like the [New York Racing Association] reports to the franchise oversight board, the entity to be created in Maryland will report to the MTROA,” said Foreman.

Though much-needed renovations to Pimlico could begin later this year, said Foreman, the 2025 Preakness is still expected to be staged at the Baltimore track, with the 2026 edition set to be hosted temporarily at Laurel Park.

“After Preakness 2025, Pimlico will undergo full construction, and the plan is that the 2027 Preakness will be at Pimlico under the auspices of the new non-for-profit.” said Foreman. “For the horsemen, racing will be conducted at Laurel for the next three years.”

Like Pimlico, Laurel is currently operated by 1/ST Racing under the umbrella of The Stronach Group (TSG). Transfer of Pimlico from 1/ST Racing to the state comes at a nominal one-dollar price-tag.

The MTROA has already negotiated a licensing agreement with 1/ST Racing to operate and promote the GI Preakness S. and the GII Black-Eyed Susan S., Maryland's two signature races.

“It's a 10-year agreement with five-year renewals,” said Foreman. “After ten years, if the state wanted to buy it out, it could. But any renewals would be for five-year intervals.”

Complementing a revamped Pimlico will be the selection of a year-round companion training facility to accommodate the horses not stabled at Pimlico. According to Foreman, some 1,300 horses are expected to be split evenly between the two facilities.

The MTROA has identified eight potential training facilities for purchase, rating them by several criteria, including their location, size, cost to purchase and cost of redevelopment. According to this rating system, two facilities come out jointly on top: Shamrock Farm and Mitchell Farm Training Center.

Shamrock Farm Training Center is a 155-acre facility just over 20 miles from Pimlico. Mitchell Farm Training Center is a 97-acre facility near the Aberdeen Proving Ground. The third-rated facility is the Bowie Race Track, a 131-acre training facility.

The legislation also allows the Maryland Stadium Authority–a state-founded entity to help fund and operate key building projects in Maryland–to issue $400 million in bonds to help bankroll the Pimlico Plus plan.

Ultimately, ownership of Laurel Park will be transferred fully to TSG for redevelopment at the beginning of 2028, “unless we have to extend the lease,” said Foreman.

According to Foreman, state taxpayers won't be on the hook should the non-profit formed to manage daily operations going forward run into operating deficits.

“If there's an operating loss when the non-for-profit takes over, the Thoroughbred purse dedication account has to backstop the losses. It will not come from taxpayer dollars,” said Foreman.

“I can't overstate the historical moment this is for Maryland racing. It's historical for the City of Baltimore. This is great for the City of Baltimore. It stops decades of worries about Pimlico and the future of the Preakness in Maryland and Baltimore. It's great for the Park Heights community. And I think it's great for the racing industry overall,” said Foreman.

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Alan Foreman Joins TDN Writers’ Room Podcast

These are busy times for Alan Foreman, who is the general counsel to the Maryland Thoroughbred Horsemen's Association, a member of Maryland's Thoroughbred Racetrack Operating Authority (MTROA) and serves as an ombudsman for the Horseracing Integrity and Safety Authority (HISA) and the Horseracing Integrity & Welfare Unit (HIWU). He took time out of his schedule to join the TDN Writers' Room Podcast, sponsored by The Green Group.

It is his work with the MTROA that has received the most attention of late as the Authority recently issued a plan that would completely overhaul Maryland racing. Pimlico will be rebuilt and when that is done, racing will cease at Laurel. The Stronach Group will turn the tracks over to the state, which will become the new operator, but will maintain the rights to the GI Preakness S. and the GII Black-Eyed Susan S. A new training center will be built.

This is the evolution of a 2020 plan which called for the rebuilding of both Laurel and Pimlico. A total of $375 million was put together for that project, which eventually stalled because of a number of factors. Those same funds will be used to for a new Pimlico.

“Pimlico became the hub property for this project, and working with the Maryland Stadium Authority and other experts that we worked with over the past six months, we have a plan to go forward and it is within range of the cost of the bonds that were initially authorized by the Maryland General Assembly,” Foreman said. “So that's the genesis of this project going forward. It's a mountain of work that's been done in the last six months. But now the rubber hits the road.”

It is still not clear what the agreement means, which allows The Stronach Group to retain the rights to the Preakness and Black-Eyed Susan. Major questions remain, like, how will the revenue from those two days of racing be divided up?

“There's a framework for an agreement that is now being negotiated between the state and Stronach,” Foreman said. “It's estimated that agreement will be finalized within the next 30 to 60 days. It's critical that the agreement be finalized because we have started the legislative session. Legislative leadership and the governor are going to be very interested in the outcome of those negotiations. But I think both sides are confident that they will come to a final written agreement because the ink is not dry on this deal and there are still matters to be negotiated. But the framework is that because Stronach owned the rights to the Preakness, they will license the event to the state of Maryland and the state of Maryland will, as a not-for-profit, run the Preakness. The division of revenues is being negotiated. It will be a fair agreement to both sides.”

As far as his work with HISA/HIWU goes, Foreman admits that there have been problems, particularly when it comes to trainers receiving hefty fines and suspensions for infractions that may be the result of environmental contamination. He says work is being done to make a fair system.

“I've never seen an intentional administration of a cocaine or a methamphetamine to a horse, and there wouldn't be a reason to do it,” he said. “The industry pre-HISA did a very good job of handling these cases. This was something that was not broken and needed to be fixed. And somehow in the new system it got broken. Fortunately, it's being fixed under new rule changes that we're waiting for the Federal Trade Commission to approve that will give HIWU the discretion to determine that it is more likely than not that the positive was a case of contamination or inadvertent exposure, as we like to call it, and not an intentional administration. The penalties have been substantially reduced per this rule change that's coming.”

This week's look at a Coolmore sire focused on champion 2-year-old Corniche (Quality Road). He was undefeated as a juvenile with wins the GI American Pharoah S. and the GI Breeders' Cup Juvenile. He was purchased for $1.5 million at the 2021 Ocala April Sale by a team that included TDN Writers' Room regular Zoe Cadman, who recalled how she was blown away the first time she saw the horse. Standing for $25,000, Corniche's first foals are arriving this week.

Elsewhere on the podcast, which is also sponsored by WinStar Farm, the Pennsylvania Horse Breeders Association,1/ST Racing, West Point Thoroughbreds and XBTV.com, the team of Randy Moss, Cadman and Bill Finley looked back at the impressive maiden win at Gulfstream by 'TDN Rising Star' Conquest Warrior (City of Light) who overcame a ton of trouble to post the victory. A $1 million Keeneland September purchase, he's one to keep an eye on as the road to the GI Kentucky Derby progresses.

The team was united in its praise of Churchill Downs for raising the purse of the Derby from $3 million to $5 million, while also calling on the two other Triple Crown tracks to match Churchill's move. Cadman also brought up the point that the GI Kentucky Oaks goes for $1.25 million and is deserving of a substantial purse hike.

To watch the Writers' Room podcast video, click here. To listen to an audio version, click here.

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Citing Conflict of Interest Issues, Rooney Self-Recuses from MRTOA Training Center Decisions

To avoid any potential conflict-of-interest issues, Tom Rooney, an appointed voting member of the Maryland Thoroughbred Racetrack Operating Authority (MTROA), has recused himself from any further decision making in the selection of a year-round training center, said Alan Foreman, another voting member of the non-profit.

The new organization is positioning itself to assume control of day-to-day racing operations in Maryland, pending legislative approval. In a proposed plan, The Stronach Group, which owns Pimlico Race Course, would turn over ownership and daily operations of the track to the state and to the MTROA, respectively.

Complementing a revamped Pimlico would be the selection of a companion training facility to accommodate roughly 700-800 horses.

The MTROA identified eight potential training facilities for purchase. They include the Shamrock Farm Training Center, a little over 20 miles from Pimlico. Shamrock Farm is a 155-acre facility owned by the Rooney family since 1948, according to the facility's website.

Foreman said that Shamrock Farm was selected as a possible training site due to the Rooney family opening the door to its possible sale.

Initially, Rooney said that “'if in fact the farm is a possibility, I'll resign from the Authority because I don't want anybody to think there's a conflict of interest there,'” said Foreman, who is also general counsel for the Maryland Thoroughbred Horsemen's Association (MTHA).

Rooney sits on the Maryland Horse Breeders Association (MHBA) board. The MHBA “did not feel that he should step down,” said Foreman.

“But Tom said, 'if I don't step off the board, I'll want to make very clear that I'm recusing myself with respect to any matters related to Shamrock Farm or consideration of Shamrock as a training facility. You can deal directly with the family,'” said Foreman.

“Tom would not participate in the vote for the training center,” Foreman added. “So, it isn't just that he would recuse himself from Shamrock, but he has recused himself from voting on the location of the training center.”

According to a MTROA report dated Jan. 5, if a decision is made to move forward with Shamrock Farm as a training center location, “a third-party appraisal process will be used to substantiate a purchase price,” the report states.

In a separate report, the MTROA rates the eight different possible training facilities by several criteria, including their location, size, cost to purchase and cost of redevelopment.

According to this rating system, two facilities come out jointly on top–Shamrock Farm and Mitchell Farm Training Center, a 97-acre facility near the Aberdeen Proving Ground. The third-rated facility is the Bowie Race Track, a 131-acre training facility.

According to Foreman, these three facilities will undergo independent appraisal in preparation for a final training site vote.

The ambitious reconfiguring of Maryland's horse racing infrastructure hinges upon legislative approval. The recently unveiled report came with the endorsement of Maryland's governor, Wes Moore.

“Our hope is, we can coalesce around a site by the end of the legislative session,” said Foreman. The Maryland General Assembly's 90-day legislative session is scheduled to run until Apr. 8.

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‘Pimlico Plus’ Concerns: Roving Preakness, Future Of Turf Racing, Synthetic Readiness

'The Week in Review', by T.D. Thornton

A few items that stand out after sifting through Friday's “Pimlico Plus” report issued by the Maryland Thoroughbred Racetrack Operating Authority (MTROA). The ambitious $400-million plan, which is subject to legislative approval, re-imagines the state's racing consolidated at one publicly funded track in Baltimore, the closure of Laurel Park, the construction of a new training facility in the state, and 1/ST Racing and Gaming ceding control of day-to-day Maryland racing to a non-profit entity.

Triple Crown traditionalists who are already in a tizzy about the GI Belmont S. needing to relocate to Saratoga Race Course and change its distance for 2024 because of the complete overhaul of Belmont Park had better brace for a radically nomadic renewal the sport's signature series in 2025.

If the proposed re-imagining of Pimlico Race Course gets green-lighted by the Maryland legislature as per the MTROA's desired timetable, and if the New York Racing Association (NYRA) confirms the expected Belmont-at-Saratoga festival again for next year, the 2025 series of spring Classics could feature the GI Kentucky Derby run per usual at Churchill Downs, followed by the GI Preakness S. at Laurel Park (the placeholder host during Pimlico's reconstruction), and the Belmont S. at Saratoga for the second season in a row (at the truncated distance of 10 furlongs because NYRA doesn't want to start what is traditionally a 12-furlong race on the Spa's far turn).

Even assuming that a modernized Belmont Park is ready to take back its namesake stakes in 2026, the Maryland time frame still has Pimlico's construction ongoing through at least that year, meaning the earliest return to Triple Crown normalcy, in terms of host tracks and race distances, could be 2027.

In addition, the 150th running of the Preakness will occur in 2025, but the festivities will likely be muted because of the temporary move. The anniversary will certainly be recognized, but don't expect a Preakness-at-Laurel celebration to have the same cachet Churchill will enjoy this year when it unveils long-planned facility upgrades and partners with the city of Louisville for an extended Derby 150 bash. It will be tough for whoever controls the rights to the Preakness to take advantage of the historical hoopla associated with its big anniversary if the race gets moved to temporary digs 28 miles south of Baltimore.

The Preakness is only one day, but the turf racing season in Maryland usually lasts for more than six months. Consolidating racing at Pimlico will mean limiting grass racing to one smaller course that won't get much of a break during the sweltering summer months.

    When Laurel's expanded turf course opened in 2005, it was billed as a game-changer for Maryland racing, and it has proven to be an investment that paid off handsomely in terms of delivering more grass opportunities, boosting field sizes and generating handle.

While Pimlico's existing (and proposed new) turf course is seven furlongs in circumference, roughly the same as Laurel's (seven furlongs and 254 feet), the key difference is width–Pimlico's existing/proposed width will remain at 70 feet according to the MTROA report, while Laurel's is a generous 142 feet wide, allowing for the ability to move portable rails out 17, 35, 53, 70 and 87 feet to provide six different running lanes.

Just last month, the Maryland Thoroughbred Horsemen's Association (MTHA) issued a press release that underscored how the “Laurel turf is integral not only to the Maryland racing product but the overall mid-Atlantic racing product.”

According to the MTHA's count, in 2023 Laurel ran 273 turf races, the most since 2019 and the highest number among all racetracks in the mid-Atlantic region. Average field size for the course was 9.2 horses per race over six-plus months of usage, while the average field size for dirt races at Laurel between Jan. 1 and Nov. 30 was only 6.8.

Pimlico, which conducted short meets in May/June and September 2023, ran 72 grass races, giving Maryland access to 345 in-state turf events. But the actual number of turf races at Pimlico isn't as important as the break its meets afford Laurel's course, which had shown signs of strain in previous years when Pimlico didn't run during the summer.

Pimlico's ability to carry on Maryland's reputation as a strong grass-racing state is dubious given the course's size and a calendar that will give it a summer break only when the Timonium fair is in session at the end of August and early September.

The turf course at Colonial Downs is 180 feet wide and 180 miles south of Pimlico. Over the course of a 27-date 2023 summer meet, the Virginia track ran 213 turf races, the second-highest in the region, according to the MTHA's numbers.

To Maryland, Colonial looms as a horse-siphoning threat in both the short term (for the several years Laurel will race almost non-stop while Pimlico gets rebuilt) and over the long term, when Pimlico takes over with a turf course that isn't as expansive or versatile as the one it's replacing.

Whether Pimlico's main track and turf course remain in their existing locations or get rotated to better fit within the redesigned property's footprint (both options are outlined by the MTROA), one of the report's “Guiding Principles” states that “The dirt track shall be engineered to be 'synthetic-ready' allowing the quick and economical transition from dirt cushion to a synthetic cushion.” The proposed new training facility is also supposed to have this “synthetic ready” infrastructure in place.

Wanting both Pimlico and Maryland's new training center to have the option of switching over from dirt to a synthetic surface in the future seems to be a good idea from a planning perspective, because it's unknown at this point if a federal mandate requiring synthetics might be in the pipeline from the Horseracing Integrity and Safety Act Authority. But claiming that having such infrastructure is going to position Maryland to be able to “quickly and economically” pivot from one surface to the other understates the difficulty of taking on this sort of after-the-fact conversion.

More than two decades of synthetic-surface history in North America has shown that making a switch is, by its very nature, neither fast nor cheap.

When Woodbine Racetrack changed from Polytrack to Tapeta during the winter of 2015-16, the work took three months, was purposely scheduled for the offseason, and had to include a settling-in period before horses were allowed on it. Turfway Park made the same surface switch in 2020, but had the luxury of an April-to-November time window between race meets to get the project done properly. To a certain degree, both those tracks were “synthetic ready” because they were switching from Polytrack to Tapeta. The cost for each project was measured in seven digits.

Can you imagine if “Pimlico Plus” reopened in 2027 with a dirt surface, and at some point soon after that the entity running the operation decided Maryland's only racing venue needed to cease racing for a while in order to switch over to synthetic?

By all means, build the base and its infrastructure to the best possible standards with a focus on safety. But if a synthetic surface is in Pimlico's future, decide on that right from the outset without making it seem like a subsequent change from dirt could realistically be “quickly and economically” accomplished.

When Laurel closed for five months in 2021 to replace its main dirt track with an entirely new dirt surface, Maryland racing had Pimlico to fall back on so racing on the circuit wouldn't go dark. If Pimlico becomes the state's sole Thoroughbred track, there will be no Plan B for Maryland racing if it needs to repair or switch surfaces.

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