Tag: The Paddock

Random thoughts while scrolling through the 2022 Fact Book from The Jockey Club.

The average field size in 2021 stood at an all-time low of 7.09 starters per race and the 2021 North American foal crop dropped 6.3% compared to the previous year. You don't need a mathematician to see that tracks and horsemen in many racing jurisdictions are going to have to come to terms with a significant reduction in the number of races scheduled going forward or face further deterioration of the racing product through even smaller field sizes than we've been seeing.

While pari-mutuel handle may be an afterthought at tracks where slots and casinos fund a substantial portion of purses, this gravy train is not going to last forever. At some point, tracks in slots-funded states that have ignored the quality of their product are going to realize the importance of wagering. Field size is a critical factor.

The 2021 North American foal crop of 19,200 is the smallest since the mid-1960s. In 1965, when there were 18,846 foals, North American tracks ran 47,335 races. In 2021, there were 37,647 races, 20% fewer than in 1965. So with everything else being equal, you'd expect a higher average field size in 2021 than in 1965, right?

Wrong. Everything else is not equal.

Average field size in 1965 was 8.59 starters per race, compared to the 7.09 in 2021, a 17% decline despite there being 20% fewer races.

The difference is that horses averaged 5.71 starts a year in 2021 compared to 10.88 average starts per year in 1965. We can attribute the drop to various factors, not the least of which was the addition of win percentages for trainers added to past performance information in the late 1980s or early 1990s. Racing horses into condition lowered a trainer's win percentage. Training them into condition raised a trainer's win percentage but lowered a horse's average number of starts per year.

Another factor that may have led to fewer average starts per horse include advanced diagnostics that help a trainer know when to stop on a horse. Unsoundness, whether it's due to breeding for speed, breeding for the commercial market, permissive medication rules or something else, has contributed to a nearly 50% reduction in average starts per horse over the last 50 years.

The Fact Book indicates that, in the late 1980s and early '90s, less than 20% of the annual North American foal crop sold at a yearling sale. The 2020 foal crop hit an all-time high, when 35% of North American foals sold at a yearling sale. Fewer breed-to-race stables exist today and, for better or worse, a greater percentage of breeders are engaged in the commercial market. For good reason: 2021 average yearling price of $80,145 was an all-time high.

What's driving those yearling prices?

There is considerable wealth in the United States, with much of it accumulated during the last two years of the pandemic. On top of that, gross purses and average purse per race in North America reached record levels in 2021, thanks to a bounce in wagering but also with casinos, slots and historical horse racing machines contributing significantly.

Purses would grow even higher if horsemen's groups better understood the impact from the shift of wagering activity from on-track to advance deposit wagering. In 2021, according to the Fact Book, of the $12.96 billion wagered in North American, only $693 million – 5.34% of the total – was wagered on-track. On-track wagering was severely impacted in 2020 by the coronavirus pandemic, when many horseplayers began using ADW accounts out of necessity. Many of those players have continued to bet through their phones, even after they have returned to the races

All wagering dollars are not equal when it comes to generating purse money. A dollar wagered on-track contributes significantly more than a dollar bet on that same race by someone sitting at an off-track betting facility or using a cell phone to make an ADW bet. One thing all tracks and horsemen's groups should do is insist that wagers made through an ADW while the customer is physically inside the confines of a racetrack be treated as an on-track bet. The technology is there to geolocate ADW customers.

An even smaller percentage for purses comes from offshore rebate outfits who negotiate low signal fees with tracks and horsemen's groups in exchange for the supply of high-volume players, some of them employing robotic or computer assisted wagering.

One thing the Fact Book doesn't say is how much of the $1.27 billion in North American purse money was generated by pari-mutuel wagering and how much came from slots, casinos or historical horse racing machines. It also doesn't tell us how much of the betting volume is coming from  robotic/computer assisted wagering and what overall percentage of pari-mutuel handle contributes to purses. Until those statistics are available, some of the fundamental economics of the the industry will remain a mystery.

The post Paulick: What The 2022 Jockey Club Fact Book Tells Us, And What It Doesn’t appeared first on Horse Racing News | Paulick Report.

Source of original post

The future of Arizona racing continues to be a hot topic among our readership. Today, we're printing two letters with different viewpoints on where change needs to come from.

My dad took me to the horse races in 1968 when we won a race at Agua Caliente. Despite the doors of the cab opening on the bumpy trip from the border to the tack, I have been hooked on horse racing ever since. I have seen so many things, including the $250,000 yearling Majestic Prince in his air-conditioned stall at Johnny Longden's barn by the stable gate at Santa Anita in the late 1960s. I was lucky enough to be on hand the day he won the Santa Anita Derby. “What an athlete” was all I could think.

We moved from California in the summer of 1971. We won our first race at Turf Paradise in 1972 and my dad (who passed away in 2017) and I have been running horses in Arizona ever since. I have corrupted two daughters and two grandchildren to love the sport of horse racing and appreciate the beautiful athletes Thoroughbreds are.

Despite the purses at Turf Paradise being at levels I never imagined, I am disgusted by the state of racing in Arizona. There is a book I read that says greed is a sin. AMEN. With the claims at record levels at Turf Paradise (and all over the country) people can enter a horse that is not 100% sound and good chance it will get claimed and off their payroll. Really good chance of a horse getting claimed if it is in one of the many $3,000 claiming races run at Turf Paradise every day where 2-4 are taken every race.

We can fix the problem. The wheel has already been invented. I have claimed and run horses in Kentucky at Turfway and Churchill. I have seen it with my own eyes that every horse that runs at those tracks goes thru an extensive exam in the morning. If the horse is not 100% it is scratched. I have dropped claims on horses that have been scratched at the gate and had claims voided when the horse did not pass the post race exam.

TUP is supposedly doing morning pre-race exams. With the Creative Plan sad story and our breakdown rate per 1,000 starts double the rest of the country, the current plan is obviously not working. With two horses with broken leges opening day at Rillito in Tucson, I am sure their pre-race plan is non-existent or even worse that TUP.

Turf Paradise used to have a check box on the claim slip saying if you wanted the horse no matter what condition it was in after that race. Who was the brain surgeon that stopped that? There were no exams after the race anyway and now you just go to the claiming pen and pray your horse can walk out. With mutuel handles in the millions of dollars daily, why not take $1,000 a day and pay a high quality experienced vet or two to check the horses in the morning and after the race?

I am an accountant for many businesses and hear all the time that there are quality people that want to work but you have to pay them. The vet shortage at Turf Paradise is well-documented. Put good cash in their pockets and a good vet will show up. Maybe every horse that runs gets $5 to $10 taken from the owner's account for a vet checking their horse. I would think every owner/trainer and the Turf Paradise management team would think it is priceless  to know their equine athlete was sound before running. Yes, athletes get hurt in all sports when competing, but knowing the athlete is sound before their event is a no-brainer.

At what time are we going to put the wellbeing of the horse first? These beautiful equine athletes are filling a lot of pockets at TUP. It's time the owners, trainers, and Jerry Simms (the owner of Turf Paradise) dig in to their pockets to ensure the safety of our beautiful Thoroughbred animals and enhance the Sport of Kings.

–Bill Smith, owner
Diamondback Thoroughbreds

On the morning of Tuesday, March 1, 2022, my phone started ringing off the hook and I immediately knew something was askew — and it probably wasn't good.

As a horse racing professional who just completing opening weekend of racing at Rillito Downs in Tucson, Arizona, I had a sense trouble was brewing on the horizon. Why? The more success Rillito Downs reports, the bigger target they become for people who have axes to grind against the sport of horse racing, the racetrack owners and operators, and horse racing professionals. On opening weekend, Rillito reported record attendance on both days and nearly tripled the live handle for both Saturday and Sunday. Don't get me wrong, I've had my share of issues with racetracks in Arizona and elsewhere, but I also realize it is one of the toughest industries to operate. It's like being a fish in a barrel … and the shots are coming faster than you can swim.

So why the open letter to Commissioner Goreé? To ask him to think before he acts. Think before he writes articles replete with intentionally inflammatory and inciting language in letters to the editor such as the one he wrote and the Paulick Report published on March 1, 2022 (Goreé: Arizona Horse Tracks Are 'A Killing Field' And It Has To Stop). As I read Commissioner Goreé's letter and his attempt to annihilate certain government and elected officials, and individuals in Arizona's horse racing industry, I wondered what would cause an individual to spew forth such destructive rhetoric when just days before he stood on the grounds of Rillito Park and praised track management for such a fine job in getting the track ready for opening weekend. Reading through Goreé's letter, I saw the reason: this guy's got an axe to grind and he's not a happy camper.

Goreé doesn't like that the Regulatory Wage Assessment (RWA) was lowered, cutting nearly $1 million in funding to the Arizona Department of Racing's annual budget. A tough call to swallow, considering the department's annual budget in past years hovered around $2 million annually. Goreé's disruptive comments didn't stop there. He went full force in his letter's opening statement, providing readers a devastating visual image of a horse who broke down at the Rillito track on opening weekend. No one likes to see a horse break down, just like we don't like seeing soccer kids get trampled on the playing field or Olympic athletes meet suffering last-minute injuries preventing them from getting to the podium. But, to add insult to injury, Goreé's call for an immediate moratorium on horse racing until “proper funding is enacted” was akin to Biden's shutting down the Keystone XL pipeline without any forethought of the impact of this decision on the everyday worker, the family, and the economy. Imagine what would happen to the thousands of horse racing industry workers, families, and businesses who suddenly find themselves on the bread lines — if you can even find bread at the local stores on some days. And, don't even get me started on what would happen to the inventory of horses coming off the racetrack. I don't think there are any federal eviction prevention programs in the “Build Back Better” agenda that horses can apply for should they find themselves homeless.

Don't get me wrong, we should all work to improve any industry in which we operate, but we need to do it wisely and not in a manner that incites outrage, confusion, hostility, and bias. We must be the problem-solvers and work in good faith to find solutions to our issues.

What I find puzzling is Commissioner Goreé's method of expressing his opinions. Goreé knew full well, or should have known, the widespread dissemination of the Paulick Report and the outrage his comments would elicit. Perhaps that was his intent, perhaps not. Is Goreé trying to shut down the horse racing industry singlehandedly or is he so blindsided he's not able to fully realize the impact of his negatively-charged comments? I have personally observed Commissioner Goreé for several years at racing commission meetings and, while I may not agree with some of his operatives, I believe he views his role to be that of an agent of change, leading the charge to horse racing accountability standards.

With that in mind, I'm countering Commissioner Goreé's agenda and asking him to lead the charge to hold the Arizona Racing Commissioners responsible for enacting the powers and authority delegated to them in Arizona Administrative Code Title 19, Chpt. 2. Arizona Racing Commission (19-02.fm (az.gov). Namely, when the commission holds their monthly meetings require each organization detailed on the commission's standing agenda to present monthly reports. For years, I have observed these commission meetings and month after month, year after year, I see the same organizations not providing monthly reports to the commission about their operations and activities. That is, except for one group: Turf Paradise, who always reports whether we like to subject matter or not.

So, Commissioner Goreé, before you start throwing the gauntlet at the horse racing industry, I think you need to do a little bit of housecleaning with the Arizona Racing commissioners. If you as a commissioner set the standard of accepting “no reports” or “no presence” at commission meetings, what right do you have to criticize others when you do not hold these same organizations responsible for reporting to you, the commissioners? It is not acceptable for these organizations to state repeatedly “no news” to report to the commission or not show up to the commission meeting. There obviously is quite a bit of news as you have pointed out in your various articles submitted to the media for publication. And you don't hold back submitting your articles with sensationalized headlines accusing racetracks of being “killing fields.” Are you guilty of creating your own killing field by not upholding your oath to the racing commission?

Hold these organizations responsible for monthly reports—that's part of your job!

In closing, Commissioner Goreé, and with all due respect, I support your efforts to create a more responsible and safer environment for the horse racing industry. What I do not support is the throwing of stones at the industry … especially when one resides in a glass house. Let's work together to solve the problems, not be the problem throwers.

—Tim Kelly

Tim Kelly is the former President – Pima County Horsemen's Association and has served as a former Commissioner for the Pima County Horse Racing Commission. Kelly also served as the Parimutuel Manager for Rillito racetrack for 28 years.

---

If you would like to submit a letter to the editor, please write to info at paulickreport.com and include contact information where you may be reached if editorial staff have any questions.

The post Letters To The Editor: Two Views On Arizona Racing About Where To Start The Clean-Up Process appeared first on Horse Racing News | Paulick Report.

Source of original post

I almost guarantee that you wouldn't know me even if I included my name; however, a few times weekly I am asked what horse racing is planning on doing about Bob Baffert, about doping, about horses breaking down and much more. I get to work with the amazing community in the City of Arcadia, and that gives me a somewhat unique perspective on horse racing.

Though I am no expert, I will sit and talk horses with anyone who wants to chat. I love and adore horse racing while hating all its faults. I understand horse racing is valuable for Arcadia, and I also know Arcadia takes great pride in this part of its history and loves having horse racing within its city limits. For Arcadia, it's not all about the money. Many community members see it differently, however, especially as Santa Anita continues to host the Bob Baffert barn, which many community-folk see as support of something they disapprove of: i.e., drugging horses.

Maybe I know more on horse racing than the average community member, maybe I don't, but I see both sides of this problem, and I am of the opinion that horse racing lives in a bubble. Horse racing, as a community in and of itself, sticks squarely to its bubble, and rarely leaves it. It's not easy to find folks who work in racing, from the backside employees to the owners, the trainers and beyond, who openly interact with the community at large, and that has a huge effect on how the community views horse racing overall. This leads to the citizens of Arcadia turning to people like me for answers. Except … I can only give opinions, because even though I flutter back and forth between both worlds, I can't get the answers the community deserves.

Arcadia folk perceive racing as an economic value for their city but deadly for the horses, and the question I think I get asked most is, “When do you think Santa Anita will ban Bob Baffert?” It doesn't matter how much they know about Lasix or betamethasone, because they've definitely heard about Medina Spirit. As long as the perception is that Medina Spirit was doped, Baffert will remain a black mark on the local public's view of horse racing, yet no one in racing steps into the limelight to speak with the Arcadia public who lives with a racetrack (some literally) in their backyard.

The long and short of this vein of public perception concerning Bob Baffert, as it has been communicated to me, is this: He broke the rules, he should be banned, and this goes for any trainer who does the same. It doesn't matter how or why or even if Medina Spirit tested positive for a banned substance on Kentucky Derby day. It doesn't matter how or why Medina Spirit died. What matters to those on the outside, those who might not even spend a minute at the racetrack, is the way they perceive horse racing overall, based on what they perceive as the actions of a single trainer, and based ever still on what they see on their social media or hear around town.

Never mind that some of these people have never heard of Jason Servis, Jorge Navarro  or Seth Fishman, because none of those names have been in the forefront of their racing image.

That image in their head belongs to Bob Baffert.

I have no answers on how to change this perception; I'm nobody in the racing world. I just listen to their comments and complaints, but it isn't as if there is an 800 number they can call in order to direct their comments to the right person who will listen. There's no email address, no public relations person. So, I listen, folks know that, and their general perception is that trainers caught drugging horses, in any way, should go, for the safety of the horses. Rules are rules. You shouldn't get a free pass because you are a big money-making trainer.

There are terrible things going on in the world right now that deserve our attention, but the public still cares about the welfare of our horses.

Tomorrow will come, and I know my personal feelings toward racing won't change. Still, I know that, out there in my community, people will continue to alter their perception of racing from good to bad, as long as the image in their mind is of a white haired trained who may (or may not) have caused the death of a little black horse with a small white mark on his forehead, and there is no one in horse racing who is out there trying to ease their thoughts.

For horse racing in general, it might be time to listen to the community.

Name Withheld
Arcadia, Calif.

---

If you would like to submit a letter to the editor, please write to info at paulickreport.com and include contact information where you may be reached if editorial staff have any questions.

The post Letter To The Editor: An Outsider’s Perspective On The Baffert Conundrum appeared first on Horse Racing News | Paulick Report.

Source of original post

Remember the time Travis Tygart, as head of the U.S. Anti-Doping Agency, came up to Lance Armstrong and gave him a big hug after one of Armstrong's seven Tour de France victories?

Yeah, me neither.

I've been told horse racing is different, that it's unique. We are expected to accept things that probably wouldn't fly in other sports or industries.

So I guess it's perfectly OK for Jonathan Rabinowitz, an attorney who chairs the Kentucky Horse Racing Commission, to hug Bob Baffert near the Churchill Downs infield winner's circle after Baffert-trained Medina Spirit finished first in the 2021 Kentucky Derby.

It's also fine that another KHRC member, Charlie O'Connor, director of sales for Coolmore America, gave Baffert a congratulatory hug. After all, Coolmore and Baffert have done a lot of business together, whether it's at Thoroughbred auctions or on the racetrack, where Baffert has trained a number of horses for the Ireland-based global Thoroughbred powerhouse.

Happier times. Kentucky Horse Racing Commission chairman Jonathan Rabinowitz and KHRC member Charlie O'Connor of Coolmore hug Bob Baffert after 2021 Ky Derby victory by Medina Spirit. They'll help decide Friday whether to stay Baffert's suspension. pic.twitter.com/LrnBYPs8Ag

— Ray Paulick (@raypaulick) March 3, 2022

The Baffert stable also has served as a pipeline for stallion prospects, with no fewer than five current residents at Coolmore's Ashford Stud having been trained by Baffert. I would be shocked if some of the top prospects currently in Baffert's barn, starting with 2021 2-year-old male champion Corniche, weren't being recruited for eventual stud duty at Ashford. Participation in Triple Crown races this spring, when Baffert is scheduled to be on suspension, could further enhance the resumes of some of those prospects. But he'll need a stay of his suspension.

Rabinowitz and O'Connor have done business together, too. They partnered to open the Amsden Bourbon Bar in Midway, Ky., and Rabinowitz or his For the People Racing LLC have been partners in horses with Coolmore principals or their family members.

Now that those post-Derby congratulations and celebrations have ended following a stewards' disqualification of Medina Spirit and a 90-day suspension of Baffert over a failed post-race drug test, Rabinowitz, O'Connor and other KHRC board members are faced with some challenging questions.

Will the KHRC overturn its own executive director's decision to reject a request by Baffert for a stay of the suspension, which was to go into effect on March 8? A special commission meeting will be conducted on Friday to address that question.

If an appeal of the disqualification and suspension is eventually heard by an administrative law judge, will Rabinowitz, O'Connor and other KHRC members accept, reject or modify whatever that independent arbiter recommends?

And will Rabinowitz, O'Connor and other KHRC members who have done business with Baffert be able to put aside any relationships or potential conflicts of interest while they cast votes on these matters?

Seriously, can you imagine if Travis Tygart had been an investor in Lance Armstrong's cycling team and then was charged with investigating whether they won by cheating?

But that's the way it is – for now at least – in horse racing. Regulators are often investors in the game they are regulating. They might be pure as the driven snow when making decisions, but even the appearance of conflicts of interest can turn that snow into slush in the eyes of the public.

The Horseracing Integrity and Safety Authority is designed to eliminate conflicts of interest by installing five independent, non-horse racing board members to go along with four industry representatives who do not currently have any stake in the business. As far as I'm concerned, the launch of HISA oversight of our sport cannot come soon enough.

That's my view from the eighth pole.

The post View From The Eighth Pole: Real Or Perceived, Conflicts Of Interest A Problem For KHRC appeared first on Horse Racing News | Paulick Report.

Source of original post