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Greg Ferraro Q&A: Northern California Racing ‘Necessary’ For Racing’s Viability

Sunday's news that The Stronach Group (TSG) will close its flagship Northern California racetrack, Golden Gate Fields, at the end of the year has ripped through the state racing industry like a cannon shot.

It has left owners, breeders, trainers, grooms and a whole multitude of individuals whose livelihoods hinge around the sport scrambling for answers as they attempt to plot their futures in a vacuum of hard facts.

Instrumental in this confusion is the glaring dearth of public information coming out of TSG. Every day this week, the TDN has submitted a series of basic questions about the company's decision to sell Golden Gate Fields and its short- and long-term plans in California.

TSG has responded only once, on Monday, pointing to its Sunday statement–a statement scant on detail.

Seeking clarification therefore on the reasons behind, and ramifications from, Sunday's news, TDN spoke with Greg Ferraro, the California Horse Racing Board (CHRB) chairman.

Ferraro didn't just speak about Golden Gate Fields, but also shared his thoughts and concerns surrounding the ongoing rollout of the Horseracing and Integrity Act's anti-doping and medication control program (ADMC).

The HISA-related portion of this interview will be published in part two in Saturday's TDN.

The following has been lightly edited for brevity and clarity.

TDN: When did you first know that TSG was selling Golden Gate?

GF: The staff at CHRB heard about it last Friday. Somebody from the agency called with some questions about Golden Gate. [CHRB] staff said, 'well, why are you asking these questions?' And they said, 'Well, the state was in negotiations to make a deal on Golden Gate.'

Then we called The Stronach Group executives and said, 'Do you know what's going on?' They said, 'Yes, Golden Gate is going to be sold,' and asked us to keep it confidential until Monday when they intended to make an announcement. But obviously, it leaked and came out on Sunday.

TDN: Which state agency contacted the CHRB?

The California Business, Consumer Services and Housing Agency. [It presides] over several boards including Parks and Recreation and Natural Resources. We're one of them as well.

TDN: Is the end date for Golden Gate of December 2023 set in stone?

From what my sources told me yesterday, yes, that's set in stone. Any idea of extending dates beyond [Dec.] 18th is a no go.

TDN: Do you know what the motivating factors were in the decision?

No, I don't. Probably the ability to make a deal with the state. Developers have never been interested in the Golden Gate property because of the height limit [on developments]. You can't develop it to make any money.

TDN: Is that what it's going to be used for, a park?

It's not final yet, but I know that's what the negotiations are about.

TDN: Do you think that proposed Berkeley City Council ordinance had any sway in the decision?

I don't think so. Golden Gate has fought those battles before, and I think they would have fought it again.

TDN: What do you make of TSG's argument that this consolidation will reinvigorate racing at Santa Anita?

They claim that they're going to make capital investments in San Luis Rey and Santa Anita to improve racing and make up for the difference of the loss of training facilities in Northern California. I don't know how that's going to work. We'll have to wait and see what they propose.

TDN: Do you know what those capital improvements are?

No, I don't. They haven't detailed anything yet. I assume by our board meeting in August [16th] they'll have some kind of a proposal.

TDN: You haven't seen any detailed TSG proposal yet?

No, I haven't.

TDN: Does it concern you that they'd make such a momentous decision without simultaneously sharing with the public their vision for the future?

It could have been presented a little better, let's just say.

TDN: Are you worried that they don't have a detailed plan?

I'm worried that the proposal is not going to satisfy the needs of the Northern California horseman.

TDN: What do you make of CARF's proposal for Cal Expo to become a hub of racing in the north?

It's an interesting proposal. They're talking about Pleasanton, Santa Rosa and Cal Expo, with the idea that they could race maybe up to 10 months and have their headquarters at Cal Expo.

The problem is the harness [racing industry] has a 10-year contract for training at Cal Expo. So, I don't know where harness racing would go or how you would get around that. But I think it's worth looking at. It's something California horsemen and the breeders are certainly interested in.

TDN: How important is maintaining a substantial racing presence in Northern California for the future of California racing, in your opinion?

It's vitally important. If you just take a look at the foals bred in California, 35% of them race at Golden Gate Fields. That's a substantial number of horses. The thought of moving all these horses to southern California, there's only 20% of them that are suitable for down here. So, what are you going to do with the rest of the horses?

I think some sort of Northern California [circuit], or if it's not Northern California alternate track somewhere, would be necessary for the viability of racing.

TDN: If TSG's vision goes ahead and you see those horses from up north come down south to consolidate racing down there, could that facilitate the collapse of the breeding industry in California, which already isn't terribly healthy?

That's what the breeders are worried about. Yes.

TDN: Are you worried about it as well?

Fifty percent of the horses that race at Santa Anita are California-breds, and that's only 20% of the foal crop.

TDN: It sounds as though then you're leaning towards the CARF proposal.

I think it's interesting. I wouldn't say I'm leaning towards anything at this point. Myself and the rest of the board, we feel it's up to the industry to really solve this problem. We can't do it. The board can't do it. We can assist. We can approve any proposals that look interesting.

But I think at this point, the board would sit back and wait and see what the industry comes up with, what alternate plans they have, and then we can help guide or participate with the industry to solve the problem.

CARF's proposal is interesting. We haven't seen yet what The Stronach Group's proposal is. And maybe there are alternate proposals. Everything's happened so fast that we really haven't had time to dig into what the proper solution would be.

TDN: TSG has been quiet since the announcement, at least publicly. Could the CHRB hold an emergency meeting before Aug. 16 to force the company to divulge information that stakeholders need?

It's something we would consider, but there's no sense holding the emergency meeting if there's no information to come forward at that meeting. So, right now we're looking at different groups to see if they have their proposals consolidated enough to give us a chance to look at it.

I have the feeling–I don't know–but I have the feeling since The Stronach Group hasn't put anything out there yet, that perhaps they don't have their plans fully developed.

TDN: If indeed TSG doesn't have a solid plan, given how integral they are to the future of California racing, do you have concerns about their approach to conducting their business?

Of course. Yes.

The other issue is the money. Betting in Northern California, the money stays in Northern California. In Southern California, the betting stays in Southern California. But The Stronach Group is looking at these capital expenditures. They're going to request part of the Northern California money, and I'm sure that the other groups like CARF and perhaps the breeders are going be opposed to that. So, the real fight may be over where the funds go.

TDN: Speaking of capital expenditures, I think a key thing for many trainers, and certainly the stable staff and the grooms, are the backstretch living conditions at Santa Anita. If indeed TSG succeeds in its plans, could a rehaul of the Santa Anita backstretch be a condition of their license?

Absolutely. It would be.

We're always concerned about the welfare of the backstretch workers given Santa Anita as it stands now. They couldn't absorb any more backstretch workers in those facilities. And so, something would have to be done.

The welfare of the backstretch workers is a primary concern for the board. As it is, where are those people going to go after Dec. 18th? I mean, the week before Christmas, they're out of work, you know? And, and so, that's quite a concern for us as to what's going to happen to those people.

TDN: What do you see when you plot California racing's future–especially a likely future without Los Alamitos. And what role could and should the CHRB play in shoring things up?

It's a concern to us. I mean, Los Alamitos is probably short-lived. If something happened to Doc. [Dr. Ed] Allred, I think that would be the end of Los Alamitos. That leads to Santa Anita and Del Mar. And given the value of Santa Anita's property and The Stronach Group's performance so far, you wonder how long Santa Anita could survive.

So yes, the CHRB is quite concerned about the continued viability of California racing. It's mostly in the hands of the industry. But we're certainly going to take any steps we can to help the industry survive and be healthy.

The post Greg Ferraro Q&A: Northern California Racing ‘Necessary’ For Racing’s Viability appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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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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Hollendorfer, Del Mar Reach Settlement in Lawsuit

Hall of Famer Jerry Hollendorfer and the Del Mar Thoroughbred Club (DMTC) have reached an agreement in a lawsuit stemming from events during the summer of 2019 when the track temporarily barred the trainer from its grounds, according to a notice of settlement recently filed in the San Diego Superior Court.

The notice included no specifics.

“The terms of the settlement are to remain confidential,” explained Hollendorfer's attorney, Drew Couto.

DMTC president, Josh Rubinstein, confirmed the settlement in an emailed statement.

“The resolution of this litigation does not reflect the merit of or any acceptance of liability by any party,” Rubinstein wrote.

The 22nd District Agricultural Association, which manages and operates the Del Mar Fairgrounds, is also a defendant in the suit. This resolution is the latest domino to fall in a sprawling series of cases filed by Hollendorfer after The Stronach Group (TSG) barred the trainer from its facilities in June of 2019. The company took the action after four of the trainer's horses were irreparably injured during Santa Anita's ill-fated 2018-2019 winter/spring meet.

This was a time when the track experienced a well-publicized spike in equine fatalities during an unusually wet spell. Hollendorfer has faced no formal regulatory sanctions for events that occurred during the meet.

Del Mar followed TSG's lead in barring Hollendorfer from its grounds, but the trainer successfully overturned the track's ban in court in July of that year.

Events from the summer of 2019 spawned a handful of different lawsuits, most of which are now resolved.

Last June, Hollendorfer and TSG-controlled subsidiary owners of Santa Anita Park and Golden Gate Fields reached a settlement, the details of which were similarly undisclosed. Hollendorfer has not started a runner at any TSG-owned facility since that original 2019 ban.

Last month, the Blood Horse reported that a San Diego Superior Court judge had dismissed Hollendorfer's case against the California Horse Racing Board (CHRB).

According to Couto, Hollendorfer intends to appeal that ruling.

“The court is aware that Mr. Hollendorfer will be appealing the decision in that case,” he said.

Hollendorfer has been an annual face at Del Mar since the summer of 2019, but at a significantly diminished presence compared to the halcyon years of his numerical dominance which led him to multiple leading trainer titles. Last summer at the track, he trained one winner from just 15 starts.

Filings with the San Diego Superior Court show that Hollendorfer has claimed several causes of action against the DMTC, mainly focused on the impacts from DMTC's actions on his business.

Among them, Hollendorfer argued that the DMTC's actions deliberately interfered with existing “contractual obligations” with several of his clients, and that it was done in part to protect the track's own bottom line.

Hollendorfer also claimed in court filings that the DMTC “conspired” with five other key California-focused industry organizations, including TSG and the Thoroughbred Owners of California (TOC), “to enact a group boycott that prevented Plaintiff from racing and stabling” horses in his care.

“The conspiring parties did so in order to prosper economically by avoiding responsibility and shift blame to Plaintiff for dangerous and inherent conditions at their racetracks. Primary objectives of the group boycott included the manipulation of public perception and deflection or misdirection public attention, scrutiny, and inquiries,” filings show.

Court documents show the DMTC pushing back against Hollendorfer's claims the track intentionally harmed his business, in part to protect its own economic interests. For example, the DMTC argues the trainer failed to prove the track had adequate prior knowledge of the trainer's “contractual relations” with his owners prior to banning him, including specific contractual details.

Court documents also show the DTSC countering Hollenderfer's claims the alleged group “boycott” was done to benefit the groups' members.

“There are no facts showing how DMTC or the District benefitted from the alleged group boycott,” filings state.

Hollendorfer sought to recover damages from DMTC for economic and reputational harm, filings show.

Hollendorfer's training operations have seen marked declines since TSG's ban was enacted in 2019. In 2018, he won 176 races and accrued over $7 million in earnings, according to Equibase. So far this year, he has won 14 races and won just under $670,000.

Over the weekend, a Monmouth Park press release detailed how the trainer had transferred 29 of his horses stabled at the track to long-time assistant Dan Ward, with a view to scaling back his operations to California only.

“I just want to concentrate on what I'm doing here in California,” Hollendorfer is quoted in the press release. “Dan and I have discussed for a while that he wanted a chance to go out on his own. Now seems like a pretty good time to do that.”

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Stronach Appoints Gilmore To Key Positions

Belinda Stronach, Chairwoman, Chief Executive Officer and President of The Stronach Group has appointed Kevin Gilmore as the group's Executive Vice President and Chief Operating Officer, the organization said in a release on Thursday.

Gilmore will work directly with her on corporate objectives and key strategic initiatives, including with matters relating to the group's 1/ST business.

“I am pleased to welcome Kevin Gilmore to The Stronach Group and look forward to working with him to further strengthen our company's innovative and forward-thinking businesses,” said Stronach.

With 30+ years of senior global executive leadership experience, Gilmore has worked for NHL's Montreal Canadiens and for the Anschutz Entertainment Group. He holds a Bachelor of Laws (LL.B.) and a License in Civil Laws (LL.L.) from the University of Ottawa and an executive certificate from the University of Chicago Graduate School of Business.

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