Breeders’ Cup: HBPA Obstructing Progress, Making False Claims About HISA

The following open letter to the racing community was signed by Breeders' Cup chair Barbara Banke and president/CEO Drew Fleming

To the Racing Community:

After a series of high-profile issues jeopardized the very existence of our sport, a wide cross-section of leaders representing all aspects of the industry came together to support legislation to address longstanding safety issues in racing. Our legislators agreed change was needed and passed the bipartisan Horseracing Integrity and Safety Act (HISA), which included provisions for a governing body to oversee its implementation.

The purpose was simple: to address a system that lacked integrity. Before HISA, horsemen endured a dysfunctional state-to-state patchwork of rules which were inconsistently enforced. Thanks to the input of horsemen, owners, breeders, jockeys, racetrack operators, veterinary experts, regulators, and other industry participants across the country, HISA has established a fair, transparent, efficient, and economically sound approach to improving the integrity and safety of the sport. This includes uniform rules and regulations across all states that are in line with international standards, swift adjudication protocols, and a robust anti-doping program and medication controls.

Unfortunately, when presented with this opportunity to finally achieve meaningful reform, certain groups have responded by obstructing the path forward. Rather than offer constructive input, these groups have chosen instead to spread misinformation and drain precious industry resources with costly litigation. Some of those funding the opposition do not even care about racing and are using the debate over HISA as an opportunity to further their own political interests. Enough is enough.

Chief among the offenders is the National Horsemen's Benevolent and Protective Association. For example, the HBPA falsely claims HISA will put small entities out of business due to the costs associated with implementation. In fact, HISA specifically requires that regional differences are considered; accordingly, its governing body is addressing disparities between large and small operations and helping to identify operational efficiencies that will mitigate any increased costs.

The truth is, the HBPA has offered no solution that adequately addresses the full scope of the industry's issues, nor does it have any desire to represent its members who support meaningful reform. This has made us wonder who the HBPA really is, and why they don't want more effective controls on safety and drug use. Many in our industry don't know that the HBPA and its affiliate groups consider anyone who obtains an ownership license to automatically be a “member” of their organization. Instead of offering members the ability to provide input on its decisions, the HBPA's insular leadership has weaponized its industry position to oppose vital reform aimed at protecting the very people it claims it represents.

We urge any HBPA members who have horse racing's best interests at heart to come to the table and engage with HISA's leaders in pursuit of sustainable change. Follow the example of leaders from a variety of organizations, including the Thoroughbred Owners of California, Kentucky Thoroughbred Association, Thoroughbred Horsemen's Association, and the Thoroughbred Owners and Breeders Association. These groups have stepped forward with constructive input and have provided their members with information and support to make the transition to new regulations as seamless as possible.

At the Breeders' Cup, we have seen firsthand the success that comes with investing in safety and integrity measures. Because of the trust we have built, we have attracted top-tier national and international media rights partners, developed relationships with major new corporate partners, achieved record wagering numbers, and experienced a significant increase in international participation. A sport rich in integrity is going to thrive.

Breeders need owners who want to invest in horses. Owners need trainers to turn raw athleticism into speed and endurance. Trainers need jockeys, exercise riders, grooms, farriers, and dedicated veterinarians to help execute their programs and keep their horses safe and healthy. Everyone needs racetracks to provide the stages on which our athletes compete and where fans who love racing can gather to cheer on their favorites. And we all know bettors are the backbone of the business, as their wagering supports racetrack operations and purses. They deserve to bet on races that are fair.

Under HISA, uniform safety and integrity measures will ensure all participants can be part of racing's growth and success. Adjusting to the oversight of a national, independent authority may take time, but traditions must evolve if they want to endure. Although Thoroughbred racing has a long and storied past, it will only have a bright future if we make safety and integrity our top priorities through united reform.

HISA has been put in place to provide an opportunity for the sport not only to survive, but to thrive. If you want to see horse racing carry on for generations to come, please join us as we work together to ensure HISA's successful implementation.

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Irwin: WHOA! Water Hay Oats Alliance Reaches A Stop Sign

WHOA, the Water Hay Oats Alliance, is no longer.

Its planned obsolescence coincides with the March 27 start-up of the Horseracing Integrity and Safety Authority's Anti-Doping and Medication Control (ADMC) operation, which is being overseen in great part by the newly formed and independent Horseracing Integrity and Welfare Unit (HIWU).

When a small group of high-powered and well-connected horsemen and women in racing got together more than a decade ago to form WHOA, it was with the idea of promoting federal legislation to install the United States Anti-Doping Agency to control drugs (both legal and illegal) in horseracing.

Since the mandate is no longer applicable, WHOA leaders felt they had no raison d'etre, so the grass roots operation was put out of existence.

While on a micro level WHOA failed in delivering its mandate, WHOA on a macro level has to be viewed as an unqualified success, as it led to the passage of the legislation that enabled HISA into existence. 

The struggle to achieve success has gone down many lonely roads with many twists and turns. I must say that the positive feelings our members still experience outweigh the bitter losses. Career-long friendships were formed, as well as life-long friendships lost over the battles to get the legislation passed.

I am loath to bring up once again the fact that it was I, Barry Irwin, who in an Op-Ed in The Blood-Horse in 2004, floated the idea of engaging USADA to help rid the sport of drug cheats and level the playing field in our game.

I say “loath” because that was an idea. It is the original group that formed WHOA that deserves most of the credit for getting the ball rolling towards fruition. As was alluded to earlier, that very ball ran right over some personal and business relationships that had proved to be valuable for years.

Two of the most influential families that were seminal to the movement no longer communicate with those of us who remained to the end and it is nothing if not regrettable and aching. Fights over the direction of the legislative initiative hurt feelings and led to irreparable estrangement.

Being a journalist by nature and trade, I have learned to develop a thick skin. Not so for most of my peers in WHOA, many of whom have deep emotional scars from being either blackballed or slagged. It was quite common in the initial years of WHOA's existence to be harshly called out in public or print, or privately behind their backs, as those clinging to the status quo referred to our members as “crazies.”

I was used to being ridiculed for my stances on many issues which prompted me over the years to write Op-Eds in any number publications around the globe. But not so for others. For a long, long time it was a very lonely effort cranking out stories to increase public awareness or push for change. There was a time when it seemed like it was just me, Stanley Bergstein, Arthur Hancock, and Andy Beyer who wrote on a regular basis that drug cheats had altered the playing field to a dramatic degree.

If nothing else, the efforts of WHOA — boosted by a growing list of converts to our cause — convinced the majority of those in racing that cheating was prevalent. Before WHOA, few believed this to be the case.

In the beginning it was just WHOA and nobody else. The “establishment,” propped up by the usual alphabet-soup of organizations invariably ram-rodded by paid executives, considered us to be a fringe group with no viable reason for being. 

Then, through perseverance, one by one we picked off organization after organization. The Jockey Club came around, Keeneland saw the light, TOBA reluctantly came on board, etc.

A popular cliché of our times references the day the music died. Well, I will never forget the day the music played. It was at The Jockey Club Round Table when the late Dinny Phipps acknowledged the effort and signaled that his organization had decided to put its enormous treasure and clout behind the effort to change the course of events in the fight to rid the game of cheaters.

We all know that, with Stuart Janney at the helm, this led to the funding and direction of hiring the 5 Stones investigative force that was successful in coordinating with federal and state law enforcement to nail Jorge Navarro, Jason Servis, Dr. Seth Fishman and any number of other lawbreakers.

The Horsemen's Benevolent and Protective Association (HBPA), although invited to join our cause or at the very least provide some direct input to make their desires fully known, refused to see the light.

The Association of Racing Commissioners International (ARCI), likely fearful of giving up its power, fought us every step of the way, relying on meaningless testing stats that still to this day do not address the impact of real performance enhancing drugs that have changed the dynamics of the racing game.

The anti-HISA, anti-WHOA, status quo-clinging minority is still complaining and on the outside looking in as HISA swings into full gear.

And they and their associates, which now include attorneys general from a few states, like to characterize HISA's enabling legislation as coming into being in the dead of night by some legislative trick.

In reality, the legislation to put HISA on the map was a truly bipartisan effort during the administration of President Donald J. Trump that — in an era of Congressional gridlock and unprecedented political division, stands as nothing short of an incredible achievement.

Anybody or group that tries to minimize this accomplishment will sound like just what they are — sore losers.

To many in WHOA, the inability of USADA to gain the nod of operating the drug controls did not and still does not sit well. Some will never get over it.

Truth be told, I am still not thrilled about not seeing USADA head Travis Tygart in charge of the anti-doping program if for no other reason than the legislation never would have been passed without his generous and expert contributions.

Some think the fix was in from the very beginning, others choose to believe that the decision not to use USADA was based on financial considerations. We may never know the real story.

But now it is time to move forward.

In closing, I would like to single out Staci Hancock for her dedication and unselfishness in being the on-going “mother” of WHOA. Her husband Arthur Hancock, a fearless individual, a great fighter and gifted writer, willed the organization forward in its darkest hours. Bill Casner is a true intellectual, a great resource on many subjects and an unerring compass in gently herding the troops in the correct direction. Thanks to those troops that gave of their time to walk the halls of Congress in an effort to educate and encourage senators and representatives to help our legislative initiative. And, finally, a big thanks must go to those well-heeled and well-connected owners and breeders of both political persuasions that used their might, money and influence to move the legislation through the corridors of power.

Barry Irwin is founder and CEO of Team Valor International

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Kentucky HBPA’s Hiles: ‘We Don’t Apologize For Speaking Out About HISA’s Flaws’

Rick Hiles, the longtime president of the Kentucky HBPA and the First Vice President of the National HBPA, issued the following statement after a commentary 'The National HBPA's Shameful Hypocrisy,' penned by Anthony Manganaro, CEO of Siena Farm LLC in Paris, Ky., was published Tuesday. Manganaro's commentary is available here.

Anthony Manganaro should get his facts straight before running his mouth.

His attack on the National HBPA and its affiliates is as inaccurate as it is unfair and shows a lack of understanding of the industry.

Let's get something straight about the National HBPA's cost of litigating the Horseracing Integrity & Safety Act: The Liberty Justice Center so believes that HISA is unconstitutional that the non-profit is handling the case pro bono, and if Mr. Manganaro ever read on the subject, he would have known that fact.

The HBPA is fighting the right fight and we have every expectation of winning. But even should we lose in the courts, the efforts of the National HBPA, many individual affiliates including Kentucky, four state racing commissions, the United States Trotting Association, several states' attorneys general and others who have joined in the suits already have forced the HISA Authority corporation to make substantial improvements. In getting a so-called legislative “fix,” HISA and the Federal Trade Commission tacitly acknowledged the original enabling legislation was legally-challenged.

This all could have been avoided had the largest thoroughbred horsemen's association and the Association of Racing Commissioners International been invited to the table to create a true path forward to improving horse racing. Instead, the powerful and well-financed minority backing HISA opted for class warfare.

Unlike the HISA corporation, the National HBPA and its affiliates have boards elected by their members. The HBPA is proud that our members participate in all levels of racing, not just the 1 percent at the top end. Any action taken by the HBPA is at the directive of the duly elected HBPA board.

Every day we hear from horsemen, too afraid to speak out themselves, thanking us for putting the spotlight on flawed legislation that led to a flawed organization. We believe a sign of our widespread support is the 1,500 participants from every racing jurisdiction who signed an open letter by trainers Wesley Ward and Larry Rivelli advocating for meaningful change and that HISA was fatally flawed.

We believe HISA's Horsemen's Advisory Group, which includes National HBPA President Doug Daniels DVM, was only formed in response to the HBPA pointing out the lack of knowledgeable people in creating rules and policy.

The National HBPA was calling for uniformity of regulations and drug and medication policy long before The Jockey Club began its push for federal legislation. We also were calling for uniform testing and more resources for racing surface safety years before Santa Anita's rash of breakdowns. We have always called for cheaters to be handed stiff penalties. However, this being America, we also believe everyone is entitled to due process.

No one benefits from change just for change's sake while ignoring science.

We don't apologize for insisting any federal legislation governing horse racing be lawful. We don't apologize for doing our due diligence so that rules-offenders are properly punished and don't get off because they were sanctioned under an unconstitutional law.

We don't apologize for demanding HISA actually be transparent, instead of simply tossing around the word. For instance, the people paying the freight – which most likely will fall on horse owners — have every right to know the salaries of HISA staff and consultants. But HISA refuses to make them public, hiding behind being a private organization.

We don't apologize for pointing out when new rules rubber-stamped by the FTC are not in horses' best interest.

We don't apologize for questioning a largely duplicative bureaucracy whose burdensome price tag will threaten the financial viability of some small and medium-sized tracks and force trainers and owners out of business.

We don't apologize for wanting to know who tabbed the nominating committee that in turn tabbed the HISA board, whose terms match that of Supreme Court Justices – meaning for life.

And we sure don't apologize for speaking out and standing up to bullies such as Manganaro.

Manganaro is the same guy who tried to restructure the Thoroughbred Owners and Breeders Association. He's the same guy who tried to destroy the Kentucky HBPA and the Kentucky Thoroughbred Association, calling for a new organization that would have only billionaires on the board.

Manganaro is correct about one thing: the Interstate Horse Racing Act of 1978 indeed requires the consent of horsemen before tracks can export the betting signal on the horsemen's property – their horses – to other states. That's how it should be, and Congress agreed.

Manganaro seems to think we should stay quiet like good little boys and girls at the kiddie table instead of standing up for what's right. By speaking out, we have forced HISA to get better, though fatal flaws remain. We will continue to do so, and HISA will pay attention because they know the National HBPA, its affiliates and a few dozen Senators and Congressmen are watching them like hawks.

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Commentary: The National HBPA’s Shameful Hypocrisy

All I hear these days from the National Horsemen's Benevolent and Protective Association (HBPA) is how bad the federal Horseracing Integrity and Safety Act (HISA) is for Thoroughbred horse racing. The National HBPA says there is no need for uniform track safety and no need for nationwide medication rules.

Is the National HBPA living on Mars?

The National HBPA sanctimoniously proclaims it doesn't want Washington meddling in our business. It claims that HISA is unconstitutional and that the government cannot give a private organization control over the affairs of other private entities. And the National HBPA is spending no-telling how much money in court seeking to prove its point and destroy nationwide anti-doping and safety standards.

So, what is going on here? Why is this group, which falsely presents itself as somehow representing all horsemen, outrageously asserting that track safety and doping don't need a national solution?

This raises troubling questions. What really is the National HBPA? Who runs it? Why in the world would it go to such extremes to sabotage better controls on safety and drugs?

Have the leaders of the National HBPA suddenly (and conveniently) developed memory loss? Don't they remember the media firestorm over horse fatalities at Santa Anita that threatened to shut down California racing?

Have they forgotten the federal indictments and convictions of Jason Servis, Jorge Navarro, and 25 others for years of illicit drug doping right under the noses of state regulators?

All this made me wonder where the National HBPA gets its money and power. So, I did a little research. Here is what I learned.

The National HBPA is an umbrella organization that is funded by state HBPAs. Now here's the interesting part: State HBPAs get their money, and their clout as a result of federal legislation passed 45 years ago – the Interstate Horseracing Act of 1978. This law allowed horse racing to engage in nationwide betting via telephonic and electronic means, something that was not allowed for any other sport.

However, interstate wagering can't happen unless a racetrack gets the approval of the horsemen's group representing the majority of horsemen there. It is known as the “horsemen's veto” and must be incorporated into a catch-all agreement “regarding the conduct of horse racing” at the track. If you think that takes in a lot of territory, you're right. It gives the state HBPAs enormous leverage.

We all know that approximately 90% of Thoroughbred racing's handle comes from off-track wagering. Holding the key that unlocks this giant revenue stream is a big deal. The key holders, HBPAs, wield their veto right to control all aspects of racing.

The local HBPAs heavily influence how much of all track revenue streams (on-track, off-track, sponsorships – not just what the veto applies to) go into purses; how all this money is handled; details regarding stalls and other track facilities; vendor relationships; backside expenditures, even details concerning non-racing events at the track.

Moreover, these agreements require the track to pay money directly to the HBPAs for unspecified “services to horsemen.” And, as we know, these amounts are not small.

Some of the concessions horsemen's groups get from tracks under the threat of exercising the veto are beneficial. But what gets under my skin is the two-faced nature of the National HBPA and some state HBPAs – all private organizations given power by federal law to control a wide range of important issues in horse racing, including the allocation of racing's entire revenue stream – and then gets paid handsomely for doing it!

Even worse, the National HBPA and the state HBPAs answer to no one.

All the while, this unregulated, private group, authorized by federal law, beats its chest and protests that the federal government has no business empowering another private group – HISA, which does answer to a higher authority, the Federal Trade Commission – to oversee just two aspects of racing: clean competition and safety.

Apparently, the “H” in HBPA really stands for “hypocrite.”

Anthony Manganaro is CEO of Siena Farm LLC in Paris, Ky.

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