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Mike Anderson Named 14th President Of Churchill Downs Racetrack

Churchill Downs Incorporated (“CDI” or “Company”) (Nasdaq: CHDN) today announced that Mike Anderson has been named the 14th President of Churchill Downs Racetrack, home of America's greatest race, the Kentucky Derby.

Anderson brings to the role 24 years of proven strategic and operational leadership experience at CDI, having recently served as Vice President of Operations, where he led the planning, construction and opening of over $300 million in capital projects across the Company's properties. He joined CDI in 1996 as Controller and has held a number of roles with the Company, including Vice President of Corporate Finance, Investor Relations, Risk Management and Treasurer. Anderson will report to Bill Mudd, President & Chief Operating Officer of CDI.

“Mike Anderson is a uniquely qualified leader to assume the role of President at Churchill Downs Racetrack having successfully and consistently delivered on Company goals across multiple departments,” said Bill Mudd, President & COO of CDI. “Over its 146-year history, the Racetrack has grown into an incredibly sophisticated and complex business organization, and Anderson is poised to lead it through continued growth and success.”

“The opportunity to serve this Company, the Commonwealth and our community as President of Churchill Downs Racetrack is the privilege of a lifetime,” said Mike Anderson. “As a native of Louisville, it is humbling to consider what this historic place represents to so many people. I am eager to build upon the great traditions of the Kentucky Derby and continue the Company's work to establish a legacy of integrity and inclusivity both at Churchill Downs and within our industry.”

CDI named Mike Ziegler Senior Vice President and General Manager of Churchill Downs Racetrack, a role he will fulfill while retaining his current responsibilities as Executive Director of Racing for the entire Company. CDI will conduct a search to support Ziegler in that function as the Company expands resources dedicated to safety and integrity in horse racing. Prior to joining CDI in 2015, Ziegler served in numerous leadership roles across the industry.

“Mike Ziegler brings to Churchill Downs Racetrack unparalleled knowledge of all aspects of horse racing and racing operations,” said Mudd. “This expertise coupled with Mike Anderson's robust strategic and operational skills positions the Company for success and likewise advances these talented executives into roles from which they can maximize their strengths. I couldn't be more excited for these two individuals or our company.”

CDI also announced that Ryan Jordan has been named Vice President of Operations, Corporate where his responsibilities will include operational support for all business units. Jordan joined CDI in 2009 as Vice President of Operations for Churchill Downs Entertainment Group and was later named Senior Vice President and General Manager of Churchill Downs Racetrack.

“I am excited for Ryan to join us in this key position at Corporate,” said Mudd. “It is a great opportunity for him to expand his experience base and further contribute to the Company.”

These changes are effective immediately.

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Jockeys & Jeans Fundraiser at Churchill Downs Canceled

Jockeys and Jeans announced the cancellation of the fundraiser for Permanently Disabled Jockeys Fund scheduled for Nov. 14 at Churchill Downs.

“It’s sad because the needs of former jockeys who suffered career ending injuries go on, but given the need to battle this deadly disease, it is necessary,” said Jockeys and Jeans President, Barry Pearl.

Added Churchill’s Executive Director of Racing Mike Ziegler, “Due to the nature of Jockey and Jeans and the way it brings people together from all over the country, we want to ensure that it can be held at Churchill Downs when it can be the biggest and best! We are saddened to postpone the 2020 event, but in full agreement with PDJF and Jockey and Jeans’ choice.”

The event typically attracts 15 or more jockey Hall of Fame members who gather to honor the six permanently disabled former jockeys who attend. Jockeys and Jeans was founded in late 2014 by a group of former jockeys, which has raised over $1.5 million for the PDJF through six annual events and several stallion season sales.

The Permanently Disabled Jockeys Fund pays a $1,000 monthly stipend to some 60 former jockeys who suffered catastrophic racing injures. Some 40 are either pari or quadriplegics, while some of the others suffered severe brain injuries.

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View From The Eighth Pole: A Coup d’Etat Of Kentucky Horsemen

Horse owners and trainers should very much beware when a racetrack advocates on behalf of a new horsemen's organization. That is what is happening in Kentucky as Churchill Downs Inc. in Louisville and The Red Mile in Lexington have endorsed a fledgling group to rival the 47-year-old Kentucky Harness Horsemen's Association to represent horsemen at the new casino/harness track in Oak Grove near the Tennessee border, an hour's drive northwest of Nashville.

In fact, “endorsed” may not be a strong enough term. It wouldn't be that much of a stretch to say Churchill Downs Inc. and The Red Mile have masterminded a quiet coup d'etat of an existing harness horsemen's organization and that the Kentucky Horse Racing Commission obsequiously rubber-stamped it in April, giving legitimacy to a nebulous entity called the Kentucky Harness Association.

Approval of this dubious move is on the agenda of the Kentucky General Assembly's Legislative Research Commission at the state capitol in Frankfort on Thursday. There's no reason to believe the commission will do anything but accept the changes recommended by the Kentucky Horse Racing Commission.

There is so much wrong with this, not the least of which is that Churchill Downs Inc. appeared to work in collaboration with the Kentucky Horse Racing Commission on language for the regulation that helps create this new organization while neutralizing the longstanding harness horsemen's representative.

Last Nov. 22, Mike Ziegler, executive director of racing for Churchill Downs Inc., sent an email to Marc Guilfoil, executive director of the Kentucky Horse Racing Commission, stating: “Per a conversation between John and Secretary Russell, attached are the proposed regulation changes in a word document for the track extension regulation and the Standardbred horsemen group.”

The email was acquired from the commission via public records requests.

Interestingly, Nov. 22 is also the date of a letter Ziegler sent to Guilfoil saying that “it has been brought to our attention that the Kentucky Harness Association has requested approval from the Kentucky Horse Racing Commission to serve as an association representing Standardbred horsemen in the Commonwealth. Churchill Downs Incorporated is fully supportive of this request.”

It's amazing how Ziegler and Churchill Downs Inc. simultaneously went from having something “brought to our attention” to actually proposing language for the regulation to make it happen – all on the same day.

In that Nov. 22 email from Ziegler to Guilfoil, “John” would be John McCarthy, a powerful lobbyist in Frankfort representing Churchill Downs Inc. “Secretary Russell” would be Gail Russell, then secretary of the Public Protection Cabinet for lame duck Gov. Matt Bevin, who lost his bid for reelection on Nov. 5, 2019.

While the wheels were set in motion during Bevin's tenure as governor, his successor, Andy Beshear, will share in the blame if these changes are approved by the general assembly.

By their own admission, this new Kentucky Harness Association had a grand total of three members when the issue came before the Kentucky Horse Racing Commission for recognition. Let me repeat that: three total members.

The person said to be the organizer of the Kentucky Harness Association, Bob Brady, is brother-in-law of Ken Jackson, a member of the Kentucky Horse Racing Commission. Jackson voted in favor of recognizing the organization started by his brother-in-law that could be charged with negotiating contracts on behalf of hundreds or thousands of horse owners and trainers.

Brady and Jackson are partners in a Lexington-based Standardbred auction company co-owned with the entity that owns The Red Mile harness track. The latter endorsed Brady's new organization, an association it might negotiate contracts with. This is about as incestuous as you can get.

It should also be noted that Jackson, in his role with the Kentucky Horse Racing Commission, made the motion in 2018 to award the Oak Grove casino and harness license to Churchill Downs Inc., which partnered with the Keeneland Association on the proposed project. There were other viable bidders.

Why should anyone in the Thoroughbred industry care about what organization represents harness owners and trainers at a small Kentucky casino/racetrack?

If you are a Thoroughbred owner or trainer, don't think this can't happen to you. I've seen this movie play out in Florida, where loopholes in state law are exploited to create bogus race meetings that operate with the approval of sham horsemen's organizations. The organizers do this to exploit revenue from casinos, card rooms or simulcasting and they don't have to share revenue with the sham horsemen's organizations. Can this happen in Kentucky? I wouldn't bet against it.

Churchill Downs pulled a bait and switch scheme at Calder Race Course in Florida, getting horse owners and trainers to support a slots machine referendum and then, after public approval, tearing down the grandstand and eventually connecting the casino license the horsemen helped secure to a jai-alai permit.

I can't blame Churchill Downs Inc. for trying to overthrow a legitimate harness horsemen's organization and replacing it with hand-picked toadies. Company executives are only trying to maximum revenue to shareholders and increase the potential for their own bonuses. They are not looking out for the best interests of the horse industry.

That's my view from the eighth pole.

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