Stronach Group Outlines Plans for Southern California

Two weeks after an initial company announcement on the closure of Golden Gate Fields at the end of the year, The Stronach Group (TSG) issued details Friday on their plans for consolidating racing operations at its Southern California racing and training facilities, Santa Anita and San Luis Rey Downs.

The plan–shared via Zoom during a press briefing lasting about 30 minutes–appeared large on big-ticket promises though short on specifics in other key areas, including the broader industry impacts from the closure of Golden Gate Fields.

The following details were divulged in the form of a press release:

  • Over $1 million to support the relocation of horses, trainers, jockeys, backstretch employees and caregivers from Golden Gate Fields to Santa Anita Park as part of the consolidation of racing in Southern California, and to support the California breeding program.
  • A $4.5 million, brand-new all-weather synthetic track that will replace the existing training track at Santa Anita Park. This change will not only allow for the seamless transition of horses used to running on the synthetic track at Golden Gate Fields but will serve to improve the overall safety environment at Santa Anita Park.
  • A commitment to fund a portion of 2024 heath care premiums for Golden Gate Field employees.
  • The creation of a job board accessible to backside employees to support the transition to Santa Anita Park.
  • An investment of $500,000+ (over two years) toward building a state-of-the-art equine pool for hydrotherapy and horse exerciser, accessible to trainers at Santa Anita Park, that will help horses more easily recover from injury.
  • $23.2 million toward a backside barn improvement program.
  • In addition to returning a fourth day of weekly racing to Santa Anita Park resulting in 26 extra race days, 1/ST RACING will invest $2.5 million into building a turf chute at the track.

During the course of the press conference, CEO of 1/ST Racing and Gaming Aidan Butler and Craig Fravel, executive vice-chairman of 1/ST Racing and Gaming, expanded upon some of these details.

The biggest ticket item concerns the $23 million toward backstretch improvements. “The initial piece of work is to replace every single roof and outer extremity of the barns,” said Butler.

“This is a huge undertaking. We have 2,000 stalls on the backside of Santa Anita. To quickly carve into that answer, there's not a lot of room at Santa Anita to add extra stalls. But the job when completed should have a very modern-looking and -feeling backside.

“The larger plan which we'll touch upon at a different time is that we have future proofed what would happen if we needed more stalls. Some would argue that's a great problem to have. We do have quite a few answers for that, but nothing that would be wise to announce today,” said Butler.

When asked to expand upon what he meant by cutting edge, Butler described it as an overarching theme, meaning “we're going to try to be best in class and cutting edge in everything we do.”

TSG aims to begin work on the synthetic replacement to the training track at the end of the fall meet in November. “The hope…would be to get this ready and operational by opening day,” said Butler.

The new one-turn turf chute at Santa Anita would start in the north parking lot, said Butler, who explained that the idea sprung from the growing inventory of turf horses in Southern California.

“We appreciate and understand that the ecosystem currently in California is quite turf heavy from a racehorse perspective, so, adding new turf options and turf distances and starts is going to be hugely beneficial,” said Butler.

As to the economics behind these proposals, Fravel appeared to leave the door open to the possibility that proceeds from simulcasting handle in Northern California could be diverted south.

“We will be meeting with other stakeholders and looking at gaps in the calendar and looking at how we can reconfigure the economics of California racing,” said Fravel.

In its initial statement, TSG explained that a key “goal” of the consolidation was to increase field sizes at Santa Anita and add “another day of racing to the weekly racing calendar at Santa Anita Park, come January 2024.”

When asked how long Santa Anita could remain financially viable if that extra day of racing doesn't materialize, both Fravel and Butler described the proposed investments as spurs of economic activity.

“I think with an influx of horses from the north, along with the positive impact these changes would have, we have a very realistic chance of making that happen,” said Fravel, who said contingency plans were in place in case the four-day race week didn't materialize, but declined to say what they were.

In answer to concerns that the horses in Northern California will become swamped in the Southern California circuit at the entry box, Butler discussed bringing staff from Golden Gate Fields to help smooth the acclimatization process.

“I think the intent over time is that it will become one population,” said Butler. “We've had some experience in other parts of the country where we can, during bigger meets, run higher quality from a purse perspective, and then middle tier racing on the same card.”

The paddock at Santa Anita | Benoit

Butler added: “There is another Thursday. Really the intent is to not completely load that day up with horses from Golden Gate, but to mix them across the whole four days' racing.”

In tune with Butler's comments, Fravel discussed the possibility for the “creative” carding of races with an expanded horse population.

“We fully expect that we'll be able to write condition books, racing conditions, be creative in terms of making sure that, not only the current population at Golden Gate has a place to run, but also that we'll be able to support additional racing hopefully at Los Alamitos,” Fravel said.

In terms of a totally reconstituted Southern California racing product, Butler raised the possibility of additional 'Ship & Win' incentives.

“There are lots of plans in the works to not only attract international runners, but keep up the good work that's been done,” said Butler.

As for the Golden Gate diaspora, the number of trainers and horses that can be accommodated at Santa Anita and San Luis Rey Downs is limited, admitted Butler–a restriction dictated by limited stall space in Southern California, he added.

“We're going to give every trainer and every horse as much as we can to get down here,” said Butler, pointing to the proposed industry support fund.

“Not only a stipend per horse that comes down, but also stipends for jockeys to try to integrate down in the south. There is a separate piece that covers the trainers themselves, humans as they're moving around, and their employees,” Butler added.

After the meeting concluded, TDN asked if the relocation funds would also be used to help those trainers, backstretch staff and horses who are unable to relocate south to Santa Anita or San Luis Rey Downs.

“Yes, if there is any left,” wrote a TSG spokesperson.

One enormous question stemming from TSG's plans is how the closure of Golden Gate Fields will impact the state breeding industry, which has been contracting for years.

As a sign of just how integral Cal-breds remain to the state racing product, however, during Santa Anita's recently concluded six-month meet, Cal-breds made up about 37% of all individual starts, according to DRF chart data. Cal-bred races constituted more than 20% of the overall races.

At Golden Gate Fields, Cal-breds made up nearly 70% of all starts last year, according to DRF chart data–a number that had grown from 60% of all starts at the track in 2013.

TSG has proposed hosting the annual Cal-bred sale at Santa Anita. When asked if TSG has run the numbers on the impacts on the state breeding industry from the closure of Golden Gate fields, Fravel admitted the company had not made such calculations, but pointed toward the additional funds earmarked for the breeding industry.

“We have had breeders who have said to us they're very encouraged with the prospects for Santa Anita, and increased purse money that should be available to them,” said Fravel.

“We're going to sit down with the leadership of the CTBA [California Thoroughbred Breeders Association]. They have some ideas in terms of how they can promote additional breeding, and support the existing program,” Fravel added.

In Friday's press releases, TSG wove in remarks from the Thoroughbred Owners of California (TOC) and from prominent California breeder Terry Lovingier.

“While we continue to work diligently on what the north might look like in 2024, today's announcement answers important short-term questions about the future of California racing and Santa Anita Park,” said Bill Nader, TOC president and CEO. “This represents both an investment and a commitment by Belinda Stronach and her team to not only stabilize but likely improve California racing for stakeholders, horsemen/women, backstretch workers and the betting public. These initiatives will provide a much better environment for our horses and make our overall racing stronger for the immediate future.”

“With these renovations and the commitment to California-bred racing, I see the opportunities for Cal-breds greatly increasing and providing more value for those horses because of it. I'm going to breed more mares to take advantage of it. This is going to benefit the entire industry in the state,” said Lovingier.

“We're a racing company,” said Fravel during Friday's press conference. “We love racing, and we want it to succeed. Hopefully the breeders will share that optimism with us.”

“We are confident that this comprehensive package of important measures will not only bolster the racing, training, owner and fan experience at Santa Anita Park, 'The Great Race Place', but also support Northern California stakeholders through a challenging transition period, and lead the way with state and industrywide changes that will result in a healthier, competitive and sustainable future for Thoroughbred racing in Southern California,” said Belinda Stronach, TSG chairwoman, CEO and president.

On Thursday, news broke that Stronach has been in talks over the last year to become an investor in the Sacramento Republic Football Club.

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With Golden Gate Closing, Can Nor-Cal Fashion Alternative Circuit?

One day on, the fallout from The Stronach Group's (TSG) announcement that it is closing Golden Gate Fields at the end of the year continues to reverberate around the state's beleaguered platoon of trainers, owners, breeders and other stakeholders.

“It's like you're Jimmy Stewart in It's a Wonderful Life, and you're losing your job right before Christmas,” said trainer Tim McCanna Monday, while on the road to Del Mar for the track's summer meet. “It just really leaves things up in the air.”

The reason for the closure of Golden Gate, according to TSG's Sunday announcement, was to focus its racing and training venues at Santa Anita Park and San Luis Rey Downs, consolidating the horse population in Southern California with the goal of increasing field sizes and adding another day of racing to the weekly racing calendar at Santa Anita.

McCanna, who maintains a stable of roughly 36 horses at Golden Gate, said that about half of his string are classy enough to fit the Southern California circuit. But at the moment, McCanna is unsure where the rest of his string might head, he said.

As such, McCanna said that he might end up leaving California entirely to race elsewhere. “It's possible,” he replied.

“I don't want to,” he added. “My home's up in Washington. It's a great commute for me back to my ranch up there, and to my owners up there. I still run at Emerald Downs. It was just a good fit, Northern California.”

Given the political winds that have pummeled California racing, and the spotlight Golden Gate has been under by animal rights groups in recent years, there's a palpable sense of inevitability about the closure among many industry stakeholders.

More shocking has been the abrupt nature of the announcement, poorly timed to coincide with the Northern California yearling and horses of racing age sale Aug.15 at Alameda County Fairgrounds.

“If I were those guys, I wouldn't even call the van to pick the horses up,” said Tom Bachman, a long-time owner-breeder in the state.

The decision to close Golden Gate, Bachman added, will likely hit the state's biggest breeders the hardest–a grim prognosis with profound implications for Santa Anita.

During Santa Anita's recently concluded six-month meet, Cal-breds made up about 37% of all individual starts, according to DRF chart data, and Cal-bred races constituted more than 20% of the overall races.

While Cal-breds make up a significant portion of Santa Anita's inventory, however, their influence is waning, according to DRF chart data. The average Cal-bred race field size at Santa Anita's recently concluded meet was 7.36. In 2018, it was 9.01. Ten years ago, it was 9.70.

“I don't know what's going to happen to Barton Thoroughbreds, and the Terry Lovingiers and Tommy Town–those people who breed a large number of horses–I just don't know where those horses are going to find a home,” Bachman said, before estimating that only between 10-15% of the horses at Golden Gate would suit the SoCal circuit.

“The Stronach Group have made a really poor decision trying to prop up Santa Anita with the horses from Golden Gate,” Bachman added. “There's just not enough horses at Golden Gate to make the difference down there.”

Bill Nader, president and CEO of the Thoroughbred Owners of California (TOC), voiced frustration at the dearth of specific details currently on offer.

“It's all happened so fast,” said Nader. “Whether anybody thought this day would come or not, to that end we're surprised by the news, but we're not shocked by the news.

“By the same token, we do not have the complete story yet to really have any kind of meaningful discussion that can result in a recommendation as to what the best avenue is to take California racing forward,” he said. “There's so much missing detail at the moment, it's hard to give you a complete answer.”

The TDN requested an interview Monday with a TSG representative and submitted a series of questions.

Among the questions raised were those about future land use at the facility, and about specific reasons for the planned closure. Earlier this month, for example, the TDN reported that Berkeley City Council had issued a proposed ordinance that, if passed into law, would make it illegal to keep a horse stabled for more than 10 hours a day at Golden Gate, and requires that every horse has access to a minimum of one-half acre pasture turnout.

The TDN also asked about the organization's short and long-term future for Santa Anita. This included whether it planned to invest in renovating the track's long rundown living quarters for the backstretch staff–what many would see as a gesture of the organization's firm commitment to horse racing in the state.

Golden Gate Fields | Shane Micheli/Vassar Photography

TSG declined to answer the questions. “For now, the [Sunday] statement is going to be our comment around the story. We look forward to being in touch in the future about our plans,” wrote Stefan Friedman, a TSG spokesperson.

But amid the rubble of Sunday's announcement, the California Authority of Racing Fairs (CARF) has emerged swiftly with a possible alternative vision of racing in Northern California.

CARF executive director, Larry Swartzlander, shared with the TDN Monday a one-page document outlining in bullet-point CARF's position on the 2024 racing program.

Among the points raised, CARF proposes:

-That TSG reassess Golden Gate's closure date to run through the end of next June. This would give stakeholders more time to realign the racing calendar.

-That Cal Expo in Sacramento becomes the “base of operations” for year-round racing in Northern California.

-That CARF forms a new racing association called “Capitol Racing.”

-Finding revenue sources to support “capitol improvements” at Capitol Racing tracks, including a new turf track at Cal Expo.

-A new racing calendar with reduced dates with the intent to improve field size, return racing to four days a week, and give the Cal Expo turf course time to recover, among other reasons.

-Moving summer racing at Cal Expo to the evening.

According to Swartzlander, a new turf course at Cal Expo would take approximately six months to build and cost roughly $6 million.

There's currently no funding for the proposed track, though Swartzlander said there are a “variety of different funding sources” he was looking at.

“This was a unilateral decision,” said Swartzlander, about Sunday's announcement by TSG. “And now, this all needs to be reassessed with all the stakeholders of California.”

The next California Horse Racing Board (CHRB) race-dates committee meeting is on Aug. 16.

When approached about CARF's proposals Monday morning, Alan Balch, executive director of the California Thoroughbred Trainers (CTT), declined to comment, other than to say that “we don't know what the CARF plan is, and we will evaluate what we see when we see it.”

Nader was similarly equivocal. “We can look at that as an option, and we'll have a conversation with them later this week,” said Nader.

“But again, we've got to put that down alongside whatever it is this plan is going to look like–we'll call it the 1/ST Racing, Santa Anita and San Luis Rey plan. Until we have those side-by-side, I think it's impossible to really come to any meaningful decision,” he said, adding that the TOC board was planning to meet via telephone late Monday afternoon.

“I expect emotions are going to run high,” he said. “It'll probably be a spirited conversation. But we won't have a unified position because there are a lot of pieces to this puzzle that are still unclear.”

Given the general quality of racehorse participating at Golden Gate, a potential obstacle to broad participation among that group at Santa Anita would be the minimum $10,000 claiming threshold at the track–a condition of licensure imposed by the CHRB in 2019.

According to agency spokesperson Mike Marten, however, the CHRB looked at Santa Anita's most recent license application–spanning their recently concluded winter-spring 2022-2023 meet–and that condition “was not discussed or included.”

Another wrinkle in this whole fragmented saga is TSG's potential purchase of the Arizona Downs racetrack, as reported by the TDN in August of last year.

Reached Monday morning, Tom Auther, an Arizona Downs owner and partner, said he and his partners have continued to speak with TSG representatives “every once in a while,” but that other potential buyers were circling the facility.

“I don't know if Golden Gate going away helps, hurts, or makes any difference at all,” he said, when asked if the announcement changes the color of these ongoing negotiations. “We've walked a couple other entities through it. But I don't want to make things sound imminent because it isn't.”

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Stronach Group To Close Golden Gate Fields, Focus On Santa Anita

In order to focus on its racing and training venues at Santa Anita Park and San Luis Rey Downs, The Stronach Group will close Golden Gate Fields at the end of its 2023 racing meet, the organization said in a release late on Sunday.

With the goal of increasing field sizes and adding another day of racing to the weekly racing calendar at Santa Anita Park, come Jan. 2024, officials hope this consolidation will serve to further elevate the overall customer experience at Santa Anita Park.

“The Stronach Group remains steadfastly committed to racing in California,” said Belinda Stronach, Chairwoman, Chief Executive Officer and President, The Stronach Group. “We believe that the future success of racing depends on a business model that encourages investment in Southern California, one of North America's premier racing circuits. Focusing on Santa Anita Park and San Luis Rey Downs as state-of-the-art racing and training facilities that offer enhanced program quality, increased race days, expanded wagering opportunities, and premier hospitality and entertainment experiences is vital to ensuring that California racing can continue to compete and thrive on a national level.”

Stronach added, “We recognize that the decision will have profound effects on our valued employees as well as the owners, trainers, jockeys and stable personnel at Golden Gate Fields. The Stronach Group is committed to honoring labor obligations and developing a meaningful transition plan.”

Moving forward, the company will work in cooperation with industry participants including the California Horse Racing Board, Thoroughbred Owners of California, California Thoroughbred Trainers, and Del Mar and Los Alamitos racetracks, to develop a plan to relocate horses and employees to Southern California while supporting all affected by this closure.

The California Horse Racing Board confirmed its commitment to work towards finding the best path forward for California horse racing in a release sent out soon after The Stronach Group's statement.

“Golden Gate Fields has been racing nine months out of the year in Northern California,” said CHRB Executive Director Scott Chaney. “I think it is fair to say that race-date allocations will take on a new meaning when the Board opens discussions in August for 2024 race dates. I am acutely aware of the human impact of the closure–be they CHRB employees, CHRB contractors, licensees, and, of course, Golden Gate employees–and I will be working hard to ameliorate any negative consequences and to create job and role opportunities.”

CHRB Vice Chair Oscar Gonzales, who chairs the CHRB Race Dates Committee, expressed assurance that the GGF workforce and horsemen will be treated with dignity and respect and that there will be an open and transparent process.

“While we await more details and information, Golden Gate stakeholders and Northern California horsemen should know that horse racing will continue,” said Gonzales. “We look forward to receiving and implementing the industry's transition plan. We hope the upcoming CHRB meeting [Aug. 17] and Race Dates Committee meeting [Aug. 16, both in Del Mar] will be an opportunity to share more information with the public.”

Chaney said the possibility of new off-track wagering locations in the East Bay should be part of the ongoing discussions.

Not long after The Stronach Group released its statement, Alan Balch, executive director of the California Thoroughbred Trainers, released his own statement.

“Today, we learned with great dismay, fear, and anxiety, on behalf of all California trainers and their thousands of employees, of the Stronach racing company's decision to discontinue racing at Golden Gate Fields later this year,” Balch's statement read. “Were it not for our contractual obligations with Golden Gate Fields and Santa Anita management, we would publicly disclose the reasons for our serious trepidation–all of which our CTT leadership has taken the initiative to discuss privately with Stronach management on several occasions, during last year and earlier this year. We can only say that we would have hoped those responsible for such a decision had taken their own contractual obligation for fairness, inclusion, communication, and honesty, as seriously as we have.

“The ramifications of this Stronach decision will be far-reaching and long-lasting. They will include, we believe, a great many unintended and mainly detrimental consequences for all of racing and Thoroughbred breeding throughout California and the West, including in Southern California. We can only hope that we are entirely wrong.”

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1/ST Issues Statement on Baffert Suspension

Officials at 1/ST, the consumer-facing brand of The Stronach Group–parent company of a portfolio of several California racetracks and/or training facilities–have issued a statement in the aftermath of the 90-day suspension handed down to trainer Bob Baffert.

The statement, in its entirety, reads: “The California Horse Racing Board announced on Saturday, Apr. 2 that “[trainer Bob Baffert is now suspended pursuant to CHRB Rule 1484].”  California has thus reciprocated the suspension against Bob Baffert imposed by the Kentucky Racing Commission, which will begin on Apr. 4, 2022. Because of the CHRB's ruling, any trainer on the grounds at Santa Anita Park, Golden Gate Fields, San Luis Rey Downs or Los Alamitos Race Course who may be the transferee of horses from the Baffert barn will be required to apply for stalls for those horses from the Santa Anita or Golden Gate Fields racing offices, as applicable, for review and approval.  A Change of Trainer form will also be required to be submitted in order to enter races following such transfer. Horses that are not transferred to a trainer in California will be required to leave the grounds prior to Apr. 4.

“Because the suspension is over 60 days, under the CHRB rules, during the term of the suspension, Mr. Baffert will be banned from all enclosures under the jurisdiction of the CHRB and Mr. Baffert shall not be permitted to be involved in the training of horses who have previously been under his care. Any trainer who may apply for stalls in anticipation of a transfer will be required to comply fully with any applicable restrictions.

“The CHRB rules require Baffert to vacate his barn at Santa Anita Park prior to the start of the suspension on Apr. 4, along with removing all signage, colors and training equipment belonging to the trainer. The closing day of Santa Anita's winter-spring season is June 19, 2022. The 90-day suspension from the KHRC concludes the following week.”

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