Stronach Group | Horse Racing Free Tips

Open Letter To The Stronach Group: Where Are The Answers?

Over a week has passed since The Stronach Group (TSG) announced with a short statement light on detail the closure of Golden Gate Fields at the end of the year–a momentous decision that figures to upend a way of life for so many in California.

Since then, the company has remained publicly mum on the reasons behind the closure, and its vision for the future.

Every day since the announcement, the TDN has submitted a series of questions, to which TSG has responded only once. “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, last Monday.

The silence is troubling for the thousands of breeders, trainers, owners, grooms, hotwalkers and phalanx of individuals attempting to make a living from horse racing in the state.

With the clock racing towards the end of the year–when many will pack up bag and box, van and car, to start life anew on Christmas Eve–they face stark decisions about their professional futures and personal lives.

Do they try to make a go of it in Southern California, or do they ply their trade in another state? What's best for their families? What kind of investments should they be making at this year's sales? How do they shape their breeding plans for next year? And what kind of industry will exist to justify such investments?

These are tough questions to grapple with at the best of times–much harder still beneath a veil of uncertainty and not a little fear. The edifice of any successful racing operation is built upon foundation stones laid years, decades sometimes, in advance.

With this in mind, the TDN is publishing the questions submitted each day to TSG, and again asking when can stakeholders expect the answers they need to make those long-term business decisions that ensure this industry's future.

1 – It appears that TSG didn't give all the relevant stakeholders much (if any) of a prior warning before making the announcement. If that is indeed the case, why did TSG decide to make the announcement in this abrupt fashion?

2 – How many horses does TSG expect to be relocated to Santa Anita from GGF? And has TSG spoken with the connections of those horses about possibly making the move?

3 – Many of the horses at Golden Gate don't seem an obvious fit for the Santa Anita/SoCal circuit. Is TSG concerned that fewer horses than expected will make the move? Is TSG prepared to offer cheaper claiming races at SA (cheaper than $10,000) to accommodate the lower-level horses currently stabled at GGF?

4 – What was the reason for closing GGF? Are they economic reasons? If not, are the reasons to do with the recently proposed Berkeley City Council ordinance? Or are they a combination of factors?

5 – Did the economics from Computer Assisted Wagering (CAW) play any part in the decision to close GGF?

6 – Furthermore, TDN understands that the GGF purse account was in deficit to the tune of around $1.9 million. Did this play a part in the decision to close GGF? If so, is Santa Anita's purse account in the red or black?

7 – Is it true the state is stepping in to turn GGF into a park?

8 – What are TSG's thoughts about CARF's proposal to make Cal Expo a year-round hub of racing in the north?

9 – What specific long-term plans does TSG have for Santa Anita? Will TSG be making any substantial financial investments into the property, to show stakeholders that the company is sincere about the long-term viability of the facility?

10 – On top of that, will TSG be making any investments in the Santa Anita backstretch–in particular, to vastly improve living conditions for the backstretch workers living there?

11 – Does TSG intend to purchase the Arizona Downs facility?

12 – Will TSG extend GGF's closure date to accommodate the needs of California industry stakeholders in making the necessary adjustments to their businesses?

The post Open Letter To The Stronach Group: Where Are The Answers? appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

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.”

The post Stronach Group To Close Golden Gate Fields, Focus On Santa Anita appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Proposed Berkeley City Council Ordinance Threat To Golden Gate Fields

A proposed Berkeley City Council ordinance has been introduced that, if passed into law, would put Golden Gate Fields' future in serious jeopardy.

The proposed ordinance makes it illegal to keep a horse stabled for more than 10 hours a day and requires that every horse has access to a minimum of one-half acre pasture turnout.

While reaffirming state and federal laws surrounding animal abuse and cruelty, the proposed ordinance also makes it a crime to conduct training and racing under a “reasonable expectation” that it could substantially injure or harm the animal.

“Such reasonable belief would be based upon substantial evidence, which may include, without limitation, the animal's physical condition, indicia of pain or suffering, musculoskeletal limitations, age or other relevant factors,” the ordinance states.

“Obviously we're concerned,” said Craig Fravel, chief executive officer at 1/ST Racing and Gaming, a company under The Stronach Group (TSG) umbrella, which owns Golden Gate Fields.

Fravel said that he was alerted to the ordinance on Friday. As such, TSG has not yet had a chance to conduct a legal analysis of the ordinance, or to plot a clear response, he said.

“I'm not going to over-react at this point, and just try to be constructive in our approach,” said Fravel. “There will be some time to engage and I think educate people on our safety record and our protocols and efforts that we go through.”

The proposed ordinance, introduced by Berkeley City councilmember Kate Harrison, has been referred to the Council Health and Life Enrichment Committee for hearings. The ordinance would need a recommendation from the committee before being taken up by the Berkeley City Council.

Harrison declined an interview, saying that she was on vacation. Harrison added, however, that she would discuss the proposed ordinance when committee discussions begin.

The nine-page proposed ordinance is specifically focused on horseracing and excludes other facilities within city limits where animals are housed, including animal rescue and adoption agencies.

It makes, however, several glaring misrepresentations and distortions of the Thoroughbred racing industry. This includes an erroneous suggestion that Thoroughbred racehorses, on average, live to only three to five years of age.

“Many fatalities in horseracing are euthanizations after horses suffer catastrophic injuries, cutting their lives unnaturally short,” the ordinance states. “When CBS Bay Area reported on the most recent horse death at GGF in May of this year it cited the fact that 'live into their 30s, but the average age of is [only] three to five years old.'”

The ordinance also states that “horse deaths continue to rise at the horse racing tracks within City limits.”

According to the Jockey Club Equine Injury Database, race-day equine fatalities are declining nationwide. Last year saw the lowest statistical equine fatality rate since 2009, when record keeping began–1.29 fatalities per 1000 starts.

When it comes to Golden Gate Fields, the track's equine fatality rate has been consistently below the national average since 2017. Last year, the rate was 0.56 fatalities per 1000 starts–a number less than half the national average.

“I'd like to push back pretty solidly against some of the suppositions,” said Scott Chaney, executive director of the California Horse Racing Board (CHRB), who added that the CHRB is “aware and certainly concerned” about the ordinance.

Golden Gate Fields | Vassar Photography

“Fatalities are not on the rise at Golden Gate Fields. The opposite is true,” said Chaney. “And while it is true that racehorses generally race from three to five, that is not their average life expectancy.”

The ordinance argues that the City of Berkeley, a charter city, has the legal authority to “establish regulations” and the jurisdiction to “protect and promote the public health, safety and welfare by establishing safeguards for animals” as long as those regulations don't conflict with state and federal law.

“It is in the public interest to adopt an ordinance prohibiting inhumane or abusive treatment of animals held, owned, used, exhibited or otherwise kept for sport, entertainment or profit within the City limits,” the ordinance states.

Chaney is less sure of the city's ability to establish such a law. “I believe that there would be some major legal hurdles in attempting to pass such a thing,” said Chaney.

He added, however, that the CHRB hasn't yet conducted a thorough legal analysis of the proposed ordinance to identify what those legal obstacles might be.

One possible hurdle would presumably concern how Golden Gate Fields straddles two adjacent cities, Berkeley and Albany.

The ordinance outlines a set of tough penalties, beginning with minimum fines of $5,000 per animal, per violation, per day, or imprisonment for periods between 30 days and one year.

In explanation of the proposed requirement to provide racehorses access to open pastures for a good portion of the day, the ordinance argues that how colic, laminitis, and pleuropneumonia are issues worsened by excessive confinement.

“Confining a 1200-pound animal to a 12×12 stall is akin to confining an elephant to a box car or a killer whale to a swimming pool. Equine veterinarian, Dr. Kraig Kulikowski, compared this to locking a child in a 4×4 closet for 23 hours a day, abuse punishable by law,” the ordinance states.

In recent years, Golden Gate Fields has found itself the target of animal rights activists.

In March of 2021, protestors disrupted racing by running onto the track before lying in a circle with interlocking pipes.

The protestors belonged to animal rights organization, Direct Action Everywhere, which seeks to see Golden Gate Fields shut down.

The post Proposed Berkeley City Council Ordinance Threat To Golden Gate Fields appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

After Preakness, Maryland Racing Will Return To Laurel, But For How Long?

Pimlico, the home of a Triple Crown race, is rundown and needs to be torn down and rebuilt. Its sister track, Laurel isn't in much better shape. To have two tracks in such condition does not make for a sustainable model for the future of Maryland racing, a problem that track owners and politicians have been trying solve for more than a decade.

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.

The post After Preakness, Maryland Racing Will Return To Laurel, But For How Long? appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post