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Moger, LaRoche, and Taboada Resign from TOC

Three directors of the Thoroughbred Owners of California (TOC) have resigned from their positions in protest of the board's co-signature on a proposal to the California Horse Racing Board (CHRB) that would concretize racing operations in South California at the expense, they say, of a potential viable racing circuit in the North.

The former directors also claim the proposal was submitted without their prior knowledge.

“On January 5th a letter from the TOC and the Southern California racetrack operators was sent to the CHRB requesting the allocation of race dates for late 2024 and 2025. Of course, these race date allocations would pre-empt the opportunity for a racing circuit in the North. The key point here is that this letter was written without our knowledge and despite the fact that the entire board met two days prior,” write Lindsay LaRoche, Johnny Taboada and Ed Moger in a letter to the TOC dated Jan. 12.

“By no means are these the only times the interests of Northern California members have been ignored or subjugated by TOC leadership,” the letter adds. “It is clear to us that the current leadership is not being transparent and not working to represent the entire state of California.”

The resignations come at a fraught time for the California racing industry as it attempts to piece together a revised racing framework in the wake of Golden Gate's impending closure in June and amid declining economic benchmarks.

With the clock ticking, complicating matters is how the California Association of Racing Fairs (CARF) has yet to publicly submit a proposal as to a potential Northern racing circuit beyond its annual fair dates. This year's fair schedule is currently set to close out with a fall fair meet at Fresno from Oct. 2 through the 13.

According to TOC president and CEO, Bill Nader, the board members were indeed informed during its meeting earlier this month that the organization would be submitting a letter to the CHRB ahead of its Thursday board meeting, outlining plans for consolidated racing operations in the South as a contingency “in the event the North does not put forward a viable plan that gains CHRB approval.”

“As far as the details in the packet, I wanted that included for transparency so that everyone had a chance to look at it before the meeting commenced–it's a lot to take in on the spot,” said Nader.

In a joint submission to the CHRB, the TOC, Los Alamitos chairman and CEO Ed Allred, I/ST Racing and Gaming CEO Aidan Butler, and Del Mar president and COO Josh Rubinstein ask the regulator to allocate race dates for the last 14 weeks of 2024 and for 2025 with operations concentrated in the South–beyond the Northern fair meets–citing the tough economics of currently maintaining twin North-South racing circuits.

The submission outlines a set of proposals, including a possible legislative change to permit Los Alamitos to card night Thoroughbred races beyond 4 1/2 furlongs for $5,000 claimers and below, and $8,000 maiden claimers.

Los Alamitos vice president Jack Liebau recently told the TDN that a legislative fix to go into immediate effect–as opposed to the start of January 2025, like most bills passed this year–needs an “urgency clause” requiring a two-thirds vote by the legislature.

Nader said that no decision will be made during this Thursday's CHRB meeting about race-date allocations.

“I personally do not see this discussion on the 18th being contentious,” said Nader, about the upcoming CHRB meeting. “I think it's just stating the facts and opening eyes to where we've been in the last 20 years, where we are now, and where we're going. No decisions will be made–it's only background.”

Nader also said that at the behest of the TOC, track management at Del Mar, Santa Anita and Los Alamitos had pushed back the deadline for the allocation of race-dates–from what would have required an “emergency” CHRB meeting in February to the regular CHRB meeting in March.

“At our board meeting [earlier in January], all three tracks had the opportunity to be present and speak at the beginning of the meeting. We did speak to them and we did get them to relax their position, to say that they were willing to wait until the 21st of March, at the March CHRB meeting,” said Nader, who added that CARF executive director, Larry Swartzlander, declined an offer to attend the TOC meeting.

“So, we were being responsive and respectful to the North,” Nader said. “It's been six months, we still haven't seen a plan [from CARF]. There are people all through the state getting very anxious.”

In their resignation letter, the three former TOC directors also claim TOC leadership “does not represent the interests of Northern California owners,” highlighting the recently announced 25% cut in purses at Golden Gate Fields–a result of a $3-million deficit in the track's purse account.

“Recently, the Northern California Racing Committee unanimously voted to oppose the purse agreement proposal from 1/ST Racing for the final Golden Gate Fields race meets,” the letter states.

“The result of this vote was not deemed important enough by TOC leadership to effect the TOC's approval of the cuts or even to be presented to the TOC Board as a whole for a vote,” the letter adds.

“There are emails and board minutes that would suggest otherwise,” said Nader, when asked about these claims. He added in a follow-up text that the TOC “did discuss the GGF purse cuts” at the January Board Meeting.

“It's a struggle, North and South. It's just a difficult time,” Nader added. “I'm not being critical of anyone. It's just the environment we're in right now. Everybody's just a little teed up–it's unfortunate.”

Efforts to consolidate racing operations in the South were given a major fillip in September of last year, when California lawmakers passed legislation that means if Golden Gate Fields is not licensed to operate beyond July 1 this year, proceeds from simulcast wagering in the north are funnelled south when there is no live racing in the northern half of the state after that date.

Moger did not respond to a request for comment prior to publication.

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Final Golden Gate Fields Meet Potentially Set For 25% Purse Cut

The overnight purses for Golden Gate Fields' final meet are potentially set for a 25% cut due to a longstanding overpayment of the purse account, according to Thoroughbred Owners of California (TOC) president and CEO, Bill Nader.

The Bay Area racetrack is scheduled to race from Dec. 26 through June 9, 2024, after which, the facility is set to close permanently.

The purse account, said Nader, is overpaid by some $3.1 million.

“There's a pretty big overpayment that's been building,” said Nader. “They're looking to claw some of it back, but not all of it.”

While the TOC is still in negotiations with 1/ST Racing and Gaming, which operates Golden Gate Fields, about the proposed cuts, such a decrease in overnight purses was a “distinct possibility,” said Nader. He added that further details should be available Tuesday or Wednesday, when the condition book would be issued.

“You can increase and decrease purses pending purse generation at any point in any year, so, they're within their rights,” said Nader, who added that, as an example, Maiden Special Weights would drop from $30,000 to $22,500 under the proposed structure.

“But this thing's blown out to a big number,” he said, of the purse overpayment. “Handle was down in 2023. They haven't really cut purses at all. Frankly, they wanted to cut purses last fall—we told them no, and they didn't.”

Dave Duggan, Golden Gate vice president and general manager, confirmed that the track had been in discussions with the TOC to cut purses there “for quite some time.”

Santa Anita's overnight purses are also scheduled to be cut around 5% for its upcoming Winter/Spring meet, underway Dec. 26, with $2 million cut from the track's stakes schedule, said Nader.

Ed Moger is currently leading trainer at Golden Gate, with around 40 horses stabled there. The anticipated cuts to Golden Gates' purses could lead to some Northern California trainers relocating elsewhere, he said.

Officials for Arizona's Turf Paradise recently announced they hoped to operate a meet there from Jan. 29 through May 4, pending approval from the Horseracing Integrity and Safety Authority.

If the 25% purse cut is enacted at Golden Gate, “there would probably be some barns that move there,” Moger said, about Turf Paradise, adding that while he would not relocate to Arizona, such a purse decrease could see him shift a significant portion of his horses south to Santa Anita.

“But it's tougher to win a race at Santa Anita,” said Moger. “I'll have to play it by ear.”

When asked about the allure from other tracks to Golden Gate's current trainer colony, Nader suggested that even with a 25% cut, Golden Gate's purses would still compare favorably with Turf Paradise.

The Stronach Group (TSG) announced in July that it was closing Golden Gate Fields at the end of December with the goal of increasing field size and adding another day of racing a week at Santa Anita.

After pushback from industry stakeholders who argued that such an abrupt closure would pose an existential threat to the future of racing in Northern California, TSG officials left the door open to delaying the track's closure another six months. But they appeared to make such a deal incumbent upon a reshaping of the way simulcasting proceeds are allocated in the state.

The rule of thumb is that proceeds from wagers made in the “northern zone” stay in Northern California to pay for purses and operational expenses, while the proceeds from wagers made in the “southern zone” stay in Southern California for the same purposes.

Initially, various stakeholders in Northern California—including representatives of the California Authority of Racing Fairs (CARF)—voiced resistance to TSG's idea of moving these proceeds south.

In September, however, California lawmakers sought enough buy-in to pass legislation that meant if Golden Gate Fields is not licensed to operate beyond July 1 next year, proceeds from simulcast wagering in the north are funneled south when there is no live racing in the northern half of the state after that date.

When asked about recent turn of events involving Golden Gate Fields, Moger appeared resigned to the situation.

“I've been here for almost 50 years,” said Moger. “I'm not too happy about it.”

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Stronach Group Outlines Plans for Southern California

Two weeks after an initial company announcement on the closure of Golden Gate Fields at the end of the year, The Stronach Group (TSG) issued details Friday on their plans for consolidating racing operations at its Southern California racing and training facilities, Santa Anita and San Luis Rey Downs.

The plan–shared via Zoom during a press briefing lasting about 30 minutes–appeared large on big-ticket promises though short on specifics in other key areas, including the broader industry impacts from the closure of Golden Gate Fields.

The following details were divulged in the form of a press release:

Over $1 million to support the relocation of horses, trainers, jockeys, backstretch employees and caregivers from Golden Gate Fields to Santa Anita Park as part of the consolidation of racing in Southern California, and to support the California breeding program.
A $4.5 million, brand-new all-weather synthetic track that will replace the existing training track at Santa Anita Park. This change will not only allow for the seamless transition of horses used to running on the synthetic track at Golden Gate Fields but will serve to improve the overall safety environment at Santa Anita Park.
A commitment to fund a portion of 2024 heath care premiums for Golden Gate Field employees.
The creation of a job board accessible to backside employees to support the transition to Santa Anita Park.
An investment of $500,000+ (over two years) toward building a state-of-the-art equine pool for hydrotherapy and horse exerciser, accessible to trainers at Santa Anita Park, that will help horses more easily recover from injury.
$23.2 million toward a backside barn improvement program.
In addition to returning a fourth day of weekly racing to Santa Anita Park resulting in 26 extra race days, 1/ST RACING will invest $2.5 million into building a turf chute at the track.

During the course of the press conference, CEO of 1/ST Racing and Gaming Aidan Butler and Craig Fravel, executive vice-chairman of 1/ST Racing and Gaming, expanded upon some of these details.

The biggest ticket item concerns the $23 million toward backstretch improvements. “The initial piece of work is to replace every single roof and outer extremity of the barns,” said Butler.

“This is a huge undertaking. We have 2,000 stalls on the backside of Santa Anita. To quickly carve into that answer, there's not a lot of room at Santa Anita to add extra stalls. But the job when completed should have a very modern-looking and -feeling backside.

“The larger plan which we'll touch upon at a different time is that we have future proofed what would happen if we needed more stalls. Some would argue that's a great problem to have. We do have quite a few answers for that, but nothing that would be wise to announce today,” said Butler.

When asked to expand upon what he meant by cutting edge, Butler described it as an overarching theme, meaning “we're going to try to be best in class and cutting edge in everything we do.”

TSG aims to begin work on the synthetic replacement to the training track at the end of the fall meet in November. “The hope…would be to get this ready and operational by opening day,” said Butler.

The new one-turn turf chute at Santa Anita would start in the north parking lot, said Butler, who explained that the idea sprung from the growing inventory of turf horses in Southern California.

“We appreciate and understand that the ecosystem currently in California is quite turf heavy from a racehorse perspective, so, adding new turf options and turf distances and starts is going to be hugely beneficial,” said Butler.

As to the economics behind these proposals, Fravel appeared to leave the door open to the possibility that proceeds from simulcasting handle in Northern California could be diverted south.

“We will be meeting with other stakeholders and looking at gaps in the calendar and looking at how we can reconfigure the economics of California racing,” said Fravel.

In its initial statement, TSG explained that a key “goal” of the consolidation was to increase field sizes at Santa Anita and add “another day of racing to the weekly racing calendar at Santa Anita Park, come January 2024.”

When asked how long Santa Anita could remain financially viable if that extra day of racing doesn't materialize, both Fravel and Butler described the proposed investments as spurs of economic activity.

“I think with an influx of horses from the north, along with the positive impact these changes would have, we have a very realistic chance of making that happen,” said Fravel, who said contingency plans were in place in case the four-day race week didn't materialize, but declined to say what they were.

In answer to concerns that the horses in Northern California will become swamped in the Southern California circuit at the entry box, Butler discussed bringing staff from Golden Gate Fields to help smooth the acclimatization process.

“I think the intent over time is that it will become one population,” said Butler. “We've had some experience in other parts of the country where we can, during bigger meets, run higher quality from a purse perspective, and then middle tier racing on the same card.”

The paddock at Santa Anita | Benoit

Butler added: “There is another Thursday. Really the intent is to not completely load that day up with horses from Golden Gate, but to mix them across the whole four days' racing.”

In tune with Butler's comments, Fravel discussed the possibility for the “creative” carding of races with an expanded horse population.

“We fully expect that we'll be able to write condition books, racing conditions, be creative in terms of making sure that, not only the current population at Golden Gate has a place to run, but also that we'll be able to support additional racing hopefully at Los Alamitos,” Fravel said.

In terms of a totally reconstituted Southern California racing product, Butler raised the possibility of additional 'Ship & Win' incentives.

“There are lots of plans in the works to not only attract international runners, but keep up the good work that's been done,” said Butler.

As for the Golden Gate diaspora, the number of trainers and horses that can be accommodated at Santa Anita and San Luis Rey Downs is limited, admitted Butler–a restriction dictated by limited stall space in Southern California, he added.

“We're going to give every trainer and every horse as much as we can to get down here,” said Butler, pointing to the proposed industry support fund.

“Not only a stipend per horse that comes down, but also stipends for jockeys to try to integrate down in the south. There is a separate piece that covers the trainers themselves, humans as they're moving around, and their employees,” Butler added.

After the meeting concluded, TDN asked if the relocation funds would also be used to help those trainers, backstretch staff and horses who are unable to relocate south to Santa Anita or San Luis Rey Downs.

“Yes, if there is any left,” wrote a TSG spokesperson.

One enormous question stemming from TSG's plans is how the closure of Golden Gate Fields will impact the state breeding industry, which has been contracting for years.

As a sign of just how integral Cal-breds remain to the state racing product, however, during Santa Anita's recently concluded six-month meet, Cal-breds made up about 37% of all individual starts, according to DRF chart data. Cal-bred races constituted more than 20% of the overall races.

At Golden Gate Fields, Cal-breds made up nearly 70% of all starts last year, according to DRF chart data–a number that had grown from 60% of all starts at the track in 2013.

TSG has proposed hosting the annual Cal-bred sale at Santa Anita. When asked if TSG has run the numbers on the impacts on the state breeding industry from the closure of Golden Gate fields, Fravel admitted the company had not made such calculations, but pointed toward the additional funds earmarked for the breeding industry.

“We have had breeders who have said to us they're very encouraged with the prospects for Santa Anita, and increased purse money that should be available to them,” said Fravel.

“We're going to sit down with the leadership of the CTBA [California Thoroughbred Breeders Association]. They have some ideas in terms of how they can promote additional breeding, and support the existing program,” Fravel added.

In Friday's press releases, TSG wove in remarks from the Thoroughbred Owners of California (TOC) and from prominent California breeder Terry Lovingier.

“While we continue to work diligently on what the north might look like in 2024, today's announcement answers important short-term questions about the future of California racing and Santa Anita Park,” said Bill Nader, TOC president and CEO. “This represents both an investment and a commitment by Belinda Stronach and her team to not only stabilize but likely improve California racing for stakeholders, horsemen/women, backstretch workers and the betting public. These initiatives will provide a much better environment for our horses and make our overall racing stronger for the immediate future.”

“With these renovations and the commitment to California-bred racing, I see the opportunities for Cal-breds greatly increasing and providing more value for those horses because of it. I'm going to breed more mares to take advantage of it. This is going to benefit the entire industry in the state,” said Lovingier.

“We're a racing company,” said Fravel during Friday's press conference. “We love racing, and we want it to succeed. Hopefully the breeders will share that optimism with us.”

“We are confident that this comprehensive package of important measures will not only bolster the racing, training, owner and fan experience at Santa Anita Park, 'The Great Race Place', but also support Northern California stakeholders through a challenging transition period, and lead the way with state and industrywide changes that will result in a healthier, competitive and sustainable future for Thoroughbred racing in Southern California,” said Belinda Stronach, TSG chairwoman, CEO and president.

On Thursday, news broke that Stronach has been in talks over the last year to become an investor in the Sacramento Republic Football Club.

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New Board Members for TOC

Gary Barber, Gary Fenton, Terry Lovingier, Tim Cohen, and Matt Dohman have been elected to three-year terms for the Thoroughbred Owners of California (TOC)'s Board of Directors and will take office July 1. They will join Nick Alexander, Joe Ciaglia, Rick Gold, Ryan Hanson, Stephanie Hronis, Lindsey LaRoche, Bob Liewald, Ed Moger, Samantha Siegel, and Johnny Taboada as TOC's 2023-24 Board. Richard Rosenberg, a former board member of the California Horse Racing Board (CHRB), has agreed to stay on with the organization as an appointed member of the Integrity & Safety and Wagering Committees for the 2023-24 fiscal year.

TOC bylaws require three Board members be from Northern California. Taboada, Moger, and LaRoche fill those seats. TOC bylaws also require at least two owner-trainers, who are Hanson and Moger on this Board.

For more information, including a complete vote tally, visit toconline.com.

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