CARF Issues Statement After 1/ST Ultimatum on NorCal Racing Dates

Ahead of a critical California Horse Racing Board (CHRB) meeting Thursday to decide essentially whether or not to give Northern California stakeholders a fighting chance to build a circuit in the void left by the imminent closure of Golden Gate Fields, 1/ST Racing and Gaming set out their stall Tuesday in a letter to the regulator urging them to decline race dates to the North.

In a proposal to the state regulator, the California Association of Racing Fairs (CARF) outlined a 10-week meeting this year that would run from Oct. 19 to Dec. 15 at Pleasanton.

If the CHRB affords those dates to the north, 1/ST Racing and Gaming executive vice-chairman, Craig Fravel, warned of several consequences, including purse cuts at Santa Anita, reevaluation of planned investment projects at Santa Anita, and the “analysis of alternate uses” for Santa Anita and San Luis Rey.

“While this is understandably disconcerting to owners, trainers, and workers in the North the ultimate survival of the full ecosystem is at risk,” wrote Fravel.

On Wednesday, CARF issued a statement saying that while they did not have a great deal of time to put a plan together, “we did have an incredible depth of experience.”

“We brought together the best and the brightest of our sport. Our commitment was to develop a horse racing plan that is modern, enhances the economic and social health of the community, is safe for the horses and jockeys, fun for our fans and generates excitement in Northern California,” wrote Larry Swartzlander, CARF executive director, justifying the North's plan in several bullet points, including how “Alameda provides a financially sound location.”

“We anticipate more dynamic racing fields–higher purses and betting opportunities that enhance the fun,” wrote Swartzlander. “At the same time, we have adhered closely to ideas offered by experts as we continue focusing on the health of our horses and jockeys.”

In Tuesday's letter to the CHRB, Fravel questioned one of the potential logistical hurdles standing in the way of CARF's proposal: A golf course that operates on the Pleasanton infield.

“There is clearly a contractual issue with the golf operator that is not disclosed in the materials and extremely vague language regarding protocols that will be implemented,” wrote Fravel.

In a prior letter to CHRB chair, Greg Ferraro, members of the California Thoroughbred Trainers (CTT) and the Jockey's Guild urged the board to support year-round racing in the North, arguing that issues with the infield golf course had already been addressed.

“Active play and access to the golf course will continue to be strictly prohibited during racing hours as has been done in the past,” the letter states.

“Horse racing and the golf course are both important to the community. It does no good to permanently close the golf course only to anger the community. Horse, rider, and personnel safety remains the single greatest priority; however, we firmly believe both can coexist–as has been successfully done for over 40 years,” the letter adds.

“Nets surrounding the golf course provide cover, and since they have been put in place, there have been no accidents. In addition, Alameda County Fair will actively manage and limit play and course activities during training to areas of the course that pose little risk to balls being hit on to the track. For example, these managed activities will include supervised youth programs like the First Tee,” the letter states.

In a brief call Wednesday with owner-breeder Justin Oldfield–part of a working group geared around cultivating the plan–he said that CARF has put forward a proposal that meets all the CHRB's required conditions.

“Tomorrow, it's absolutely imperative that the CHRB weigh in and award us dates based on the merits of that plan,” he said.

“We have a lawful and tested racing association that's going to manage the meet. We have financing that's been put up as seed money that shows the strength of the 13 member fairs within CARF,” said Oldfield.

“People want to stay here,” Oldfield added. “There are families. Businesses. There's an agricultural component to this. Three-quarters of the horses in the North are Cal-Bred. Look, those horses aren't going to go south.”

Outspoken owner-breeder Tom Bachman said Wednesday that 1/ST's letter to the CHRB comes after too many cuts to the industry by the company and too little investment.

“They should be trying to make the pie bigger rather than trying to take a bigger piece of a shrinking pie,” said Bachman. “They do the opposite of what they should be doing.”

As for potential purse cuts at Santa Anita, earlier this week the California Thoroughbred Breeders Association (CTBA) announced how purse bonuses paid to California-breds that win maiden races would be sliced when Santa Anita's spring meet begins on Apr. 19, as first reported by the DRF.

The bonuses–which are being cut from $17,500 to $15,000–are paid to maiden winners in open company or state-bred races at races at 4 1/2 furlongs or more.

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1/ST Racing Says It May Sell Or Close Santa Anita

1/ST Racing, the owners of Santa Anita, have threatened to close or sell the “Great Race Place,” making the threats on the eve of a critical meeting of the California Horse Racing Board (CHRB) in which the future of racing in the northern half of the state will be decided. Santa Anita has been calling for racing to shut down in the North, which, it believes, will help strengthen racing at Santa Anita and the other Southern California tracks.

The story was first reported by John Cherwa in the Los Angeles Times.

With 1/ST set to close Golden Gate Fields on June 9, the future of Northern California racing is very much up in the air. Hoping to save racing in that part of the state, Pleasanton, a fair track, will ask the CHRB to approve a 10-week meeting that would run from Oct. 19 to Dec. 15.

If those dates are approved, it may complicate Santa Anita's efforts to reallocate revenue from simulcasting that is currently split between the northern and southern tracks. 1/ST is backing legislation that would reallocate simulcast money from Northern California to Southern California in the event that racing ceases to exist in the northern portion of the state. Santa Anita believes it needs the extra simulcast money to make racing viable in its part of the state.

Additionally, Santa Anita is hoping that with Golden Gate shutting down, many horsemen from that area will relocate to Santa Anita. If that happens, Santa Anita management believes it can add a fourth day to its weekly racing schedule and will be able to card races with bigger fields.

On Tuesday, Craig Fravel, the executive vice-chairman of 1/ST Racing and Gaming, sent a three-page letter to the CHRB, urging the Board not allocate the extra dates being sought by tracks that are members of the California Authority of Racing Fairs (CARF).

Fravel contended that if racing is approved at the CARF tracks “an analysis of alternatives for Santa Anita and San Luis Rey (training center) will be undertaken in short order. As noted, the current financial model and required capital expense make no sense and the consolidation of operations as discussed last year and at the January Board meeting is the only alternative that has been presented.”

Fravel also wrote that over the last five years Santa Anita has incurred operating losses in excess of $31 million while investing over $32 million in capital projects.

“The current model is simply unsustainable,” Fravel wrote.

Fravel also contended that the proposals being floated by the CARF tracks “is lacking in so much detail that it is difficult to understand what has been done over the last eight months and even more difficult to understand how the Board can be asked to put the entire thoroughbred industry in the state at risk by allocating dates on the basis of speculation.”

Fravel also said that allocating dates to the CARF tracks will lead to immediate purse cuts at Santa Anita and planned capital projects will be re-evaluated.

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