Letter to the Editor: In Appreciation of Mattress Mack

by Nick Tammaro

Marketing. Promotion. Advertising. Those are words that are often kicked around boardrooms and offices throughout the world. For “Mattress Mack” they are the fundamental elements of a business that has been successful for four decades. For the people whose lives he's touched, and they are innumerable, he means everything.

My personal involvement in racing is vast, but I've long considered myself a student of the game. I handicap, play the races, make speed figures, participate in contests, appear on radio and occasionally on TV.

A few weeks ago as I sat at my desk, which incidentally was delivered the same day I bought it at Gallery Furniture, I received a phone call. The man on the other end was none other than Mattress Mack. As much as my heart still flutters when Andy Beyer calls me, I was equally stunned to hear the thundering tones of a voice I'd heard for years telling me and my fellow Houstonians that he would save us money. In short order, he explained to me that he had an idea for a furniture promotion and needed some assistance.

Armed with a new task, I feverishly prepared a spreadsheet with the desired info. I honestly had no idea what a $2-3 million bet would do to the Kentucky Derby win pool. With the assistance of a far sharper compatriot, I had the information. I returned the phone call and delivered it to Mack. Days later, promos appeared on TV and radio around the nation's fourth largest city. If you spent more than $3,000 at Gallery on a mattress, you were getting a full refund if the favorite won the Derby. The promotion was ingenious. In a day and age where inventory is limited, he would not only move a desired product, but a host of new viewers were set to lock in for the greatest two minutes in sports.

As the Derby neared, we continued to talk strategy. There were moving parts that included how much liability Mack would try to cover with his wager. How and where he'd bet were discussed, and at what price might the favorite go off was a concern. Things went perfectly pre-race. Mack's four separate wagers went into the pool without having a dramatic effect on the odds. In fact, Essential Quality's odds drifted up shortly before post time.

Regardless of the outcome, the attention that the largest wager in Kentucky Derby history brought the game is significant. That attention stretches beyond the wagerer's individual interests. Since Mack's bet was made on track, Kentucky horsemen will benefit with the maximum yield possible to the purse account. The bet was discussed on social media, television, and beyond.

Mack has poured millions into advertising in racing. We have all chuckled at the frequency with which we see the name “Runhappy.” But think for a second about what that has facilitated. Race sponsorships and television broadcasts such as the fabulous “America's Day at the Races” exist, at least in part, for that reason. Mack regaled me with tales of Runhappy's career like a proud father.

Make no mistake, Mack has always “walked the walk.” His desire is for the game that he loves to flourish. He has always put his money where his mouth is and will continue to be a leading voice on wagering advancements, medication policy changes, integrity measures and more.

Houstonians will tell you that Mack is the man we rely on when we are in need. He has provided shelter and comfort from wind, rain, cold, and fire. We know that Mack loves us, as he does everyone that has crossed his path. Let us celebrate him and continue to let his voice resonate in our game. They'll never make another one like him.

Nick Tammaro is a horseplayer from Houston who became acquainted with Mattress Mack as a Gallery Furniture customer.  Upon saying the word “Runhappy” their mutual passion for racing formed an immediate bond.

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“Wagering Insecurity” – Part 7 – Z

   This is Part 7 of the Thoroughbred Idea Foundation's (TIF) series “Wagering Insecurity.”

   Faced with remarkable competitive pressure from the rise of legal sports betting, horse racing is at a crossroads.

   Confidence amongst horseplayers and horse owners is essential to the future sustainability of the sport. Efforts to improve the greater North American Thoroughbred industry will fall flat if its stakeholders fail to secure a foundation of integrity, along with increased transparency of the wagering business and its participants over time. Achieving this is growing increasingly difficult after the sport has neglected its core base–horseplayers–for decades.

   “Wagering Insecurity” details some of that neglect, and the need to embrace serious reform. Fortunately, there are examples across the racing world to follow.

Transparent oversight of racing has been defunded over decades and customer protection remains weak. North American Thoroughbred racing in the 2020s is saddled with a regulatory infrastructure designed for a sport in the 1970s.

Racing has to change.

Ten years ago, Jockey Club research conducted by McKinsey showed that a minority of racing fans, just 46% of those surveyed, said that they would recommend the sport to others.

“Thoroughbred fans are almost twice as likely to recommend baseball (81%), football (73%), or basketball (77%) to others as they are to recommend Thoroughbred racing.”

There are many reasons for racing's waning appeal among its own fans but the gambling experience is certainly a key one.

Simply getting more eyes on racing is not going to be enough to sustain interest amongst future generations.

While many of racing's existing American customers have long been accustomed to a sport with substandard, haphazard and insufficient oversight, the next generation might not be as forgiving. A 2019 piece by Julie Arbit, Global Senior Vice President, Insights at VICE Media Group, highlighted this burgeoning need among Generation Z, whose oldest members are now in their mid-20s.

“Gen Z is coming of age in a world of infinite choice, and this affects everything from how they define themselves to how they love and how they buy..”

For the complete article, click here.

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Nothing Plain About Bob Baffert

When Bob Baffert won a record seventh GI Kentucky Derby May 1 with Medina Spirit (Protonico), I couldn't help but think back to the first time I met the conditioner.

Walking through the Keeneland barn area one mid-April morning in 1990, Baffert asked if I knew where the clockers were located at the track. We introduced ourselves to each other and I offered to show him the route to the press box, where the clockers were situated during training hours.

Baffert was in the process of switching from Quarter Horses to Thoroughbreds and had travelled to Keeneland with the first horse he hoped to run in the Derby–Thirty Slews.

Impressive winner of his first two starts in California the previous month, Baffert already had his sights set on racing's biggest prize. He shipped the son of Slewpy east to run in the Lexington S.

Thirty Slews ran third that day, behind Home At Last and Pleasant Tap, and shipped back to California while Unbridled won the Derby.

Though over the next three decades Baffert would strive–quite successfully–to find horses that could stay the Classic distance, it was apparent Thirty Slews could not.

He made 18 starts subsequent to the Lexington and only left California one other time. But the one time he did was monumental for Baffert.

Following a win in the 1992 Bing Crosby H., Thirty Slews was shipped to Florida, where he won the GI Breeders' Cup Sprint at Gulfstream Park for owners Mike Pegram, Mitch Degroot and Dutch Masters III.

Sent off at 19-1, Thirty Slews just got up by a neck over Meafara, who led every step of the way–except the last step.

Thirty Slews, the first Thoroughbred Baffert purchased at public auction ($30,000 at Keeneland September), had provided him with his first Grade I win.

It is interesting to think about this: Had Thirty Slews won the Lexington, Baffert may have run him in the Derby. A colt who was unraced at 2 and would have entered the starting gate on the first Saturday of May making just his fourth start.

Of course, no horse had won the Derby without racing as a juvenile since 1892 until Baffert did it with Justify in 2018, who would go on to become a Triple Crown winner.

And, it is Baffert who has redesigned the path to the Derby, proving you can run for–and win–the roses with fewer starts before the race than trainers thought horses needed not that many years ago.

Baffert took Thirty Slews, a $30,000 yearling, and turned him into a Grade I winner.

He took Medina Spirit–a $1,000 yearling turned $35,000 2-year-old–into a Derby winner.

A few races before Medina Spirit led every step of the way to win the Derby, Baffert trained Gamine won the GI Derby City Distaff, giving the trainer a record 220 Grade I wins.

Medina Spirit would give Baffert Grade I victory number 221.

But as he crossed the finish line, I was thinking about Baffert's first Grade I winner and the day I met the trainer at Keeneland.

With seven Derby scores, Baffert passed trainer “Plain Ben” Jones.

Since that spring day I first met Baffert 31 years ago, he has proven there is nothing plain about him.

He proved it once again May 1.

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Despite Losing Bet, McInvgale, Racing Come Out Winners

Jim “Mattress Mack” McIngvale made what is believed to be the largest losing wager in horse racing history Saturday, as a $2.4-million win bet on Essential Quality (Tapit) went down in flames as the favorite in the GI Kentucky Derby finished fourth. But, for McIngvale, there were no wounds to be licked.

The bet was tied into a promotion at his Gallery Furniture Stores in Houston. Anyone buying a mattress worth $3,000 or more prior to the Derby would get the mattress for free if the betting favorite won the Derby. The promotion was so successful that McIngvale sold about 2,000 mattresses, making their combined value $6 million. McIngvale said the markup on the mattresses was 100%, meaning he would have been out of pocket about $3 million on the mattresses if the horse had won.

Once McIngvale started to do the math, he realized he could create what amounted to a no-lose situation.

With Essential Quality going off at 2.90-1, McIngvale's $2.4-million bet would have turned into a profit of $6,960,000 had he won. That would have been enough to cover the costs associated with giving away so many mattresses for free. The defeat meant that McIngvale was out $2.4 million, but that is less than the near $3 million he made by selling so many mattresses.

“I'm very glad I did it,” McIngvale said Monday. “It made the store really busy for two weeks. Not only did they buy mattresses, they bought a lot of other things. In this crazy age of Amazon retailing, if we don't do something that sets us apart we're going to be put out of business by the Amazon people or by people that sell these inexpensive mattresses in a box. The promotion was great for bringing people out. It was fun. It's too bad Essential Quality didn't win but it was an exciting race and I hear the ratings were good. It was something that gave horse racing a shot in the arm.”

McIngvale has run similar promotions that tied into bets he made on the World Series, the Super Bowl and the NCAA tournament. He made a successful $3.46-million bet on the Tampa By Buccaneers to cover the spread in this year's Super Bowl.

“I was really amazed to find that out that we sold as many mattresses for this as we did for the Super Bowl,” he said.

McIngvale made all $2.4 million of his bets on track at Churchill Downs rather than through an ADW or in Las Vegas. The cut for purses for on-track bets is 10%, which adds up to $240,000 infusion into the purse account. The cut from an ADW bet is just 5%, and had someone in Las Vegas booked his bet, the horsemen would have gotten no money.

“The people in Kentucky were very happy that I bet all this money on track,” he said. “I could have gone to Las Vegas and bet the money with someone out there or bet it offshore. If I did that, the track would have gotten nothing. I wanted to support the ecosystem of horse racing so I made the bet at Churchill Downs. That way we maximized the amount of money that horsemen got, that the ecosystem got. It's crazy that some people in the horse racing business bet with a bookie or go offshore to a place like Costa Rica. They're not supporting racing.”

Prepared to bet more than the $2.4 million, McIngvale had $4 million wired to Churchill Downs before his arrival. He made his bets over time and in increments, starting with a $500,000 wager on Friday.

“We wanted to seed the money into the pool where it wasn't such a shock to the system,” he said. “I didn't want to bet it all early and I didn't want to bet it all late. I wanted to give the betting public a chance to react to my bet.”

With the money having been wired to Churchill before the race, McIngvale wasn't required to make his wagers through a mutuel clerk. He did, however, make a $100,000 win bet at the windows that was staged for the benefit of the NBC cameras.

McIngvale said he will consider bringing the promotion back for future runnings of the Derby.

“The difference between this bet and the sports bets is the best you're going to do on a sports or football bet is +140 or +150,” he said. “With this, I got +280 on the favorite. That's a pretty good deal. The problem is that not too many horse races can handle a bet that big.”

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