The winning artwork was announced at an honorary ceremony in the Brown Center at the Maryland Institute College of Art. Senior Advisor of Arts & Culture for the City of Baltimore Tonya Miller Hall was in attendance, representing Mayor Brandon Scott. MICA dignitaries, Park Heights's City Council representatives and 1/ST RACING leadership also attended the announcement alongside participating artists.

The submission deadline for the third annual competition was Mar. 12, at which point the public was encouraged to visit preakness.com/the-art-of-racing to peruse the digital gallery and cast a vote for their favorite work of art. The top 10 vote-getters were then judged by a panel that included elected officials, community leaders and art professionals to select the winner.

“My objective was to capture the colors, excitement and festive mood of Pimlico Race Course and the Preakness S.,” said Kahl. “I chose the loose and romantic medium of watercolor to depict this scene as it best depicts the movement and drama of the day.”

Kahl received a $4,000 prize and two VIP tickets to Preakness 149. His work will be reproduced on a curated collection of Preakness 149 merchandise that will be available for purchase online and onsite during Preakness weekend. Proceeds from the sale of merchandise will be used to advance the activities of Park Heights Renaissance as it pursues affordable housing for families and provides employment opportunities to people of Park Heights.

“The platform given to rising artists, both amateur and professional, who have entered Preakness: The Art of Racing competition over the past three years underscores the vibrancy of the Preakness S. and its unique cultural footprint,” said Audra Madison, Director of Marketing, Maryland Jockey Club. “It brings me joy to see the diverse array of artwork entered into the competition each year, and I hope community members share the same sense of celebration.”

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According to the report, the transfer could occur as early as this summer, per state officials, with the state taking over racing operations in 2025.

The report says that the transfer will enable the state of Maryland to earmark hundreds of millions of dollars towards modernizing the track as well as the construction of a new training center at a location yet to be determined. On Thursday, a bill was introduced in the Maryland General Assembly that would pave the way for the construction and for the state to run racing in the state on a daily basis.

“This is a new day … We get to bet on ourselves. We're going to control our own destiny,” said Baltimore attorney Greg Cross, who heads a state authority that came up with the plan and negotiated the deal with The Stronach Group, told the Banner.

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Featuring more than $12.5-million in elevated purses and $7.5-million in incentives for both dirt and turf runners, there is a $5-million additional bonus on the line to the owner (s) of the horse who wins the 149th GI Preakness S., GI California Crown, and GI Pegasus World Cup Invitational.

Turf horses will have a similar series and prize structure, with a $2.5-million bonus offered to the connections who win the GIII Dinner Party S., GII California Crown John Henry Turf, and GI Pegasus World Cup Turf Invitational.

Also included in the announcement was the news that the purse for the second jewel of the Triple Crown will increase to $2-million, and coupled with elevated purses in other contests, will make Preakness 149 Saturday the most lucrative in the event's history with $3.3-million to be won. The first race of the new series will run May 18 at Pimlico Race Course.

Replacing the Awesome Again S., the GI California Crown will debut on what is dubbed a 'reimagined opening day experience' Sept. 28 for Santa Anita Park's 2024 fall meet. The $1-million contest for 3-year-olds and older will run at 1 1/8-miles while the GII California Crown Eddie D. Turf Sprint and GII California Crown John Henry Turf will both feature $750,000 purses in what will be California's richest day of racing.

The anchor leg of the series goes to the 2025 Pegasus World Cup Jan. 25, which will feature the $3-million Invitational and $1-million Turf Invitational. The live broadcast will include the presentation of the potential $7.5-million bonus should any horse accomplish the feat of sweeping the series.

1/ST will also put up $5-million for a Coast-to-Coast Pick'Em Challenge sweepstakes, requiring fans and bettors to successfully pick the first four finishers of each series race, in order. It will be free to enter through the 1/ST betting app, and is there are no perfect winning entries, the most overall correct entry will win a $100,000 cash prize.

“My team and I continue to believe and invest in the modernization of Thoroughbred horse racing with a commitment to the highest level of international safety standards and horse care as we continue to elevate our already industry-leading wagering, entertainment and hospitality programs,” said 1/ST Chairwoman and CEO, Belinda Stronach.

“To back this up, 1/ST is adding to the legacy of the Preakness by increasing the purse, creating a new marquee race event for the majestic Santa Anita Park–The California Crown–and continuing to build on the phenomenal success of the Pegasus World Cup.  We're proud to work with incredible partners who share our vision and see the future of world-class Thoroughbred racing combined with unique and elevated guest experiences.”

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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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So far this year, the answer to that question is that maybe things will be better in 2024 than we might have thought. There have been several recent positive developments for the sport, many of them having to do with state governments investing in the game's future.

We learned last week that the New Jersey Senate joined the state's Assembly in passing a bill that would extended a $10-million annual purse subsidy through 2029. Governor Phil Murphy is expected to sign the bill. New Jersey is one of only a handful of states where the racing industry does not receive revenue from gaming. Without the $10 million, Monmouth's purses wouldn't be large enough to compete with tracks in neighboring states. According to the Daily Racing Form, Monmouth distributed $31 million in purses over 56 live racing days, for an average of $553,000 a day, the highest in its history, with one-third of that money coming from the subsidy.

It wasn't that long ago that Monmouth was operated by the state and then Governor Chris Christie threatened to shut the track down. In 2011, he said that Monmouth would “disappear” if private management wasn't put in place at the state-owned facility.

The news out of New Jersey was just the latest example of a state government showing that it believes in the future of the sport. In Maryland, Governor Wes Moore endorsed a plan authored by the Maryland Thoroughbred Operating Authority that will overhaul racing in Maryland. The proposal, which is dubbed “Pimlico Plus,” would mean a re-envisioned Pimlico site, with a new clubhouse, stables for 700 horses, a 1,000-seat event space, 2,000-car parking garage, veterinary facilities, a possible hotel and other new amenities. Laurel will close once the new Pimlico is ready to open for business and a new training facility will be built at a site that has yet to be determined.

Pimlico Plus has a hefty price tag. According to the Baltimore Banner, the new Pimlico will cost between $274 million and $284 million, while the new training facility would cost about $113 million. In 2020, the Maryland General Assembly approved the sale of $375 million in bonds for capital improvements for Pimlico and Laurel. The projects that were on the table at the time stalled, but the $375 million is still available and, with legislative approval, can be used to rebuild Pimlico.

The deal would require 1/ST Racing and Gaming, which owns Pimlico Race Course and Laurel Park, to transfer ownership of Pimlico to the state, and for 1/ST Racing to cede control of its day-to-day Thoroughbred operations to a non-profit entity as of Jan. 1, 2025. The non-profit entity would be structured so that it is similar to the New York Racing Association. 1/ST Racing will retain the rights to the GI Preakness S. and the GII Black-Eyed Susan S., which it would license to the non-profit operating authority.

The Maryland deal was announced about eight months after New York Governor Kathy Hochul's budget included a $455- million loan to NYRA that it will use to build a new Belmont Park, which is expected to open in 2026. Hochul did so despite fierce criticism from some advocacy groups, including PETA, that questioned the move. Victor Matheson, a Holy Cross College professor and expert on sports economics told the New York Post, “Basically it looks like with this project, you're kind of hitching your wagon to an industry that is in long-term decline.”

Belmont was last refurbished in the sixties and is a mammoth structure built during an era when 35,000 people might show up to the track on a Saturday afternoon. It is also not winterized, the primary reason why the Breeders' Cup has not been run at Belmont since 2005. New York racing needed a new Belmont and needed to consolidate so that there was just one downstate track. Thanks to Hochul, it's going to happen.

In October, Keeneland announced a major capital investment project highlighted by the construction of a permanent paddock building. Once again, a state government came forward to help with the costs. Keeneland is working with state and local government to secure incentive funds to support the project, which is expected to cost nearly $93 million. Already, upon the recommendation of the Tourism, Arts and Heritage Cabinet, Keeneland received preliminary approval from the Kentucky Tourism Development Finance Authority for incentives to support the project totaling up to $23.2 million.

“Keeneland is a historic destination for our local families and travelers, and this exciting investment will create more opportunities for everyone to enjoy, while boosting our signature horse racing industry and Kentucky's $12.9 billion tourism industry,” said Gov. Andy Beshear. “The horse racing industry is as indispensable to our economy as it is to our culture, and after a record-breaking year for tourism in 2022, leaders like Keeneland are going to help ensure Kentucky's success continues for years to come.”

Last week, we also learned that the purse for the Kentucky Derby has been raised to $5 million. It was $3 million. In addition, the 2024 spring meet at Churchill will offer purses totaling more than $25 million or a 25% increase over 2023.

This happened because Kentucky racing has never been healthier. Revenue from Historical Horse Racing Machines has created huge purses in the state. Maiden special weight races at Churchill Downs went for $120,000 and allowance races were worth $141,000 last fall.

“These record purse increases are a symbol of the health of horse racing in Kentucky,” Bill Carstanjen, CEO of Churchill Downs Incorporated said when announcing the Derby purse increase. “Churchill Downs Incorporated's over $1-billion investment into live and historical horse racing in Kentucky over the last five years has meaningfully strengthened the entire Kentucky Derby Week and year-round racing program. It's important to acknowledge the state legislature for its commitment to working closely with private enterprise in a truly collaborative partnership to support the continued growth of Kentucky's signature industry.”

None of this means that 2024 will be perfect or that we shouldn't brace ourselves for the next set of problems. But this sport is resilient, as the recent developments have shown. Let's hope for more of the same in 2024.

Triple Crown Purses

Churchill Downs was not the only track to raise the purse for its Triple Crown event. The purse for the GI Belmont S. has been increased to $2 million from $1.5 million. That's a step in the right direction, but it's not enough. Along with the Breeders' Cup, the Triple Crown races are supposed to be the sport's most important events. Their purses should reflect that. All three races should have purses of $5 million. As of now, there is a gap between the Derby and the $1.5-million Preakness and the Belmont, which isn't good for the Triple Crown. There should be enough money out there to have three $5-million races.

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The MTROA has been examining options for the future of the Thoroughbred racing and breeding in the state, specifically facilities and operating models. The reports are to be considered by the Maryland General Assembly, which begins its 2024 legislative session Jan. 10.

MTROA Chair Gregory Cross and Alan Foreman, a member of the Board of the MTROA, will make presentations and field questions from attendees.

Registration is required. Join-in instructions will be provided by email following registration.

Read T.D. Thornton's Week In Review for further analysis.

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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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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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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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“Everything turned out great. People loved coming back,” tour director and guide Fran Burns said. “I think it actually gained popularity because more people had heard about it, either on television or through word of mouth.”

Admission to the Sunrise at Old Hilltop tours is free and is on a first-come, first-served basis between 6 a.m. and 9 a.m. from Tuseday through Friday. Patrons can sign up at the registration tent on the track apron.

For more information, visit www.preakness.com/sunrise-tours

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