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.

The post Stronach Group Outlines Plans for Southern California 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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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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TOC to Honor Mike Pegram

Long-time owner and breeder Mike Pegram will receive the Chairman's Award Aug. 12 from the Thoroughbred Owners of California (TOC) at the TOC's Southern California Annual Meeting at Del Mar. Alternately named the Ed Friendly Industry Service Award, the Chairman's Award is presented annually to recognize outstanding contributions and service in racing.

“Mike is an exceptional leader who continues to make a lasting impact on both this organization and California racing,” said TOC Chairman Gary Fenton. “His dedication, hard work, and commitment are an inspiration to all of us, and we are proud to honor him with this well-deserved award.”

Pegram is probably best known throughout the industry for his many top runners, both individually and in partnership, including champions Real Quiet, Silverbulletday, Midnight Lute, and Lookin At Lucky. He served on the TOC board from 2010 to 2019 and was Chairman from 2012 to 2016. During his tenure, he was instrumental in protecting SB 1072 purse contributions, which provided for a takeout increase with all of the additional revenue going to California purses.

Among the former Chairman's Award recipients Pegram joins are Mace Siegel, John Harris, Bob and Beverly Lewis, Jerry and Ann Moss, and Clement Hirsch.

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