Hollendorfer, Stronach Group Reach Legal Settlement

Trainer Jerry Hollendorfer and The Stronach Group (TSG)-controlled subsidiary owners of Santa Anita Park and Golden Gate Fields have reached a settlement in the legal disputes that have been ongoing since 2019, according to notice of settlement court filings dated Wednesday.

The details of the settlement were not disclosed in the notices, however. It's currently unknown, therefore, if the terms include any remuneration, for example.

It's similarly unknown if the settlement terms open the door to the possibility of Hollendorfer once again training and racing at TSG-owned facilities.

TDN reached out to Hollendorfer's attorney, Drew Couto. There is “nothing I can share,” Couto said. “Everything is confidential.”

Attorney Richard Specter, representing TSG, did not respond before publication to an emailed request for comment.

This settlement doesn't draw to an end Hollendorfer's legal wranglings.

The trainer is also engaged in ongoing litigation against the California Horse Racing Board (CHRB) and the Del Mar Thoroughbred Club (DMTC). These cases are being heard in the Superior Court of San Diego County.

TSG banished Hollendorfer from its facilities after four of the trainer's horses were catastrophically injured during Santa Anita's ill-fated 2018-2019 winter/spring meet, when the track experienced a well-publicized spike in equine fatalities during an unusually wet spell.

The trainer subsequently launched legal actions in Alameda County Superior Court against the Pacific Racing Association, the corporate operators of Golden Gate Fields, in August of 2019.

Hollendorfer sued the Los Angeles Turf Club, TSG's subsidiary owners of Santa Anita, in September of 2019. This lawsuit concerned seven causes of action.

A bifurcated non-jury trial was conducted in the LA County Superior Court between April 4 and April 6 of this year, focused on a single declaratory relief cause of action, encompassing the proper legal interpretation of the race-meet contract between the California Thoroughbred Trainers (CTT) and Santa Anita.

In his ruling, judge Maurice Leiter found that Hollendorfer had no standing as a third-party beneficiary to seek a legal declaration of his rights under the race-meet contract in effect when he was barred from all TSG-owned facilities in June of 2019. Only the CTT could pursue these rights under that race-meet agreement on the trainer's behalf, the judge decided.

TSG's actions in 2019 appear to have led to a marked reversal of fortunes for the former numerical powerhouse trainer.

According to Equibase, Hollendorfer trained 35 winners and earned $1,619,956 in prize money last year. In 2018, he trained 176 winners and accrued $7,191,756 in prize money.

A court filing from late last year states that Hollendorfer's stable has shrunk from more than 120 horses in California to an average of just 10, with another 25 to 30 horses traveling between three to four other states.

 

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CHRB Meeting Highlights NorCal Race Dates

The June California Horse Racing Board (CHRB) meeting put to bed a problem that has been brewing for a few months in the North of California.

Due to the fallout from COVID-19, and the ongoing issues surrounding stabling and staff accommodation in the north of California, commissioners voted to switch the three-week State Fair–scheduled to run July 14 to Aug. 3 at Cal Expo–to Pleasanton to be run over a shortened window: July 14 through July 20.

Golden Gate Fields has also been allocated an additional two weeks of racing, to be run from July 21 to Aug. 3, with no residual compensation to the State Fair. Golden Gate will now remain open for training and stabling throughout the summer.

Fire plans at San Luis Rey Downs

Back in December of 2017, 46 horses died in the wildfire that engulfed the San Luis Rey Downs training facility.

In the aftermath of the fire, the Stronach Group (TSG), which owns the training center, built new barns kitted out with automatic sprinkler systems and a fire bell.

In order to issue a fire clearance, CHRB mandated TSG to retrofit the existing historic barns with similar sprinkler systems and fire alarms by July 31 of this year.

According to TSG, the COVID-19 pandemic threw a spanner in these works, the contractors responsible for the work either shut down or else short staffed, along with a shortage in necessary supplies.

According to Santa Anita Park general manager, Nate Newby, there are nine or 10 historic barns left to finish, plus additional buildings.

As such, TSG asked for an extension to the deadline, giving them until Jan. 31, 2022, to finish fitting out the historic barns, and until April 30, 2022, to complete the entire project.

Some of the commissioners voiced reservations about granting the extension without conditions attached.

“I'm a little concerned by this, as it's gone on so long,” said CHRB chair Dr. Greg Ferraro.

In the end, the board denied the extension on recommendation of revisiting the issue next month.

In the meantime, TSG must submit to the CHRB a detailed weekly work plan by the end of the month. Ferraro also mentioned that any extension would be incumbent upon TSG providing a progress report, possibly in September.

Fantasy Sports Wagering

One of the items opened a window into the future of wagering in the state. It concerns an intent by the California Association of Racing Fairs (CARF) to start offering fantasy sports wagering at licensed betting locations. At least 19 such facilities are slated to start offering the product, Golden State Fantasy Sports, this summer, barring any legal challenge in the interim.

Golden State Fantasy Sports is described as a “compliment” to the pari-mutuel industry, “and can be integrated into operators' existing infrastructure and tote system.”

Board members and CHRB staff expressed a variety of concerns surrounding these plans, however, many of which revolved around the issue of legality and regulatory oversight.

“It's unclear who would regulate this particular activity, if anyone,” said CHRB executive director, Scott Chaney.

As such, one of the issues raised revolved around the fact that CHRB-licensed pari-mutuel clerks would be the ones processing the bets. Another is that fantasy sports betting might “cannibalize” some of the wagering revenue intended for racing.

Ferraro also questioned how this development might potentially impact any pending legislation concerning legalized sports betting at licensed racetracks.

Chaney said that it's “unclear” how this might affect any such future legislation, and added that the next likely state-wide movement on sports betting would be through referendum.

All this aside, commissioners were largely in favor of the plans, adopting what is best described as a wait-and-see stance.

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Massive Laurel Horse Move-Out Preakness Week

Difficulties with the dirt track base repair and cushion resurfacing project at Laurel Park continue to mount, with the loose-ended timetable for the work now expected to extend at least until the start of July.

Executives with The Stronach Group (TSG), which owns both Laurel and Pimlico Race Course, said during a Friday tele-meeting that they now need to pause work on the problematic and expensive project at Laurel until management can relocate of all horses stabled at Laurel to other facilities in Maryland.

This news was delivered two weeks after TSG came under fire at a Maryland Racing Commission (MRC) meeting for an alleged “accumulation of bad decisions over time” that led to Laurel's main track safety concerns not being addressed sooner by track management.

At that Apr. 22 meeting, TSG's senior vice president of racing, Steve Koch, told commissioners that Laurel would tentatively be back up and running by the start of June, with limited training allowed at the facility and horses vanned to Pimlico for timed workouts. That plan changed last week when TSG announced all horses would instead have to vacate the property.

The cumbersome logistics of orchestrating such a large horse and worker migration on short notice couldn't come at a worse time for TSG and Maryland horse outfits, with the GI Preakness S. week on the cusp of getting underway at Pimlico.

During the May 7 meeting, Koch projected a new, albeit hazy, timeline for the completion of repairs.

“At the moment, we've requested of the racing commission that the race meet remain at Pimlico through the end of June, so returning early July to be back at Laurel,” Koch said. “There's a lot of unknowns as we get into this racetrack [project and] we'll know more as this thing unfolds.”

Aidan Butler, TSG's chief operating officer, likened the moving-target time frame as a “cat and mouse” game.

Although Butler's words were meant to be figurative, as Friday's meeting evolved, it became clear that felines and rodents were literally involved in the ever-widening scope of the project.

That's because TSG will use the opportunity of having a vacant barn area to launch its most thorough rat extermination attempt to date.

Back in January, TSG executives confirmed to the racing commission that spending $20,000 monthly to try and eradicate rodents while horses remained stabled on the grounds wasn't working, largely because of the abundance of unsecured or spilled horse feed kept the rats well satiated.

Dionne Benson, TSG's chief veterinary officer, said during Friday's meeting that in addition to everything else, that means backstretch outfits will have to attempt herd their barn cats and bring them along once they get stall reassignments at either Pimlico or the Timonium fairgrounds. This is because of concerns that the cats could be poisoned by eating either the rodenticide or a rat that has consumed it.

Then MRC commissioner David Hayden suggested that all hay and straw should also be removed from the backstretch to eliminate another readily available food source for the rats.

David Richardson, the executive director of the Maryland Thoroughbred Horsemen's Association, said that hay and straw removal would be done if the exterminators recommended it.

Richardson asked trainers to expediate getting their requests in to the Laurel racing office about their preference–either Pimlico or Timonium–for being relocated, and to note if their stable help will need living accommodations at either venue.

TSG will provide a shuttle service to those tracks for employees who wish to remain in their Laurel living quarters, and trainers can still keep tack and other personal property secured at Laurel, so long as nothing gets stored in stalls.

To date there have been 789 stall requests: 502 for Pimlico and 287 for Timonium, meaning the majority of outfits will not make the cut for the preferred stabling at Pimlico.

Richardson said that the day after the Preakness, construction will begin on three new 40-stall barns at Pimlico, and that temporary stabling there will also be made available.

As for the housing of backstretch workers, those who opt to live on the grounds at Timonium could end up relegated to either the jockeys' quarters or some other areas that have access to bathrooms and showers, because there are currently no dorm facilities there that meet fire code requirements.

“There are still a lot of items that are outstanding,” Richardson said, underscoring the difficult nature of the transition.

TSG executives also addressed the implications of turf racing in Maryland because of the  extended meet at Pimlico.

Koch said the grass course at Pimlico–which is only half as wide as the one at Laurel–will, per usual, get used “very, very heavily” on the Friday and Saturday of Preakness week.

“So yeah, there are [future] constraints on that course in the sense that, you know, how much [use] can 70 feet sustain compared to the 140 feet that we have at Laurel?” Koch asked rhetorically.

Butler then picked up the topic: “If it's usable we will use it. Once it's through the big weekend…we're going to use it as often as we can.”

Even before Laurel's main track woes arose this winter and spring, TSG executives were on record as contemplating the addition of a synthetic racing surface there.

Butler said on Friday that with the base now exposed, TSG has the opportunity to assess what the scope of that project might look like. But he added that the synthetic option won't be contemplated until a later date–which will eventually mean more logistical headaches.

“Because there is a very high likelihood of us putting in a tunnel at Laurel, there is no way to drill under the track,” Butler said. “That will have to be a section…cut completely down through the substructure. That means later, when we come to replacing and putting in tunnels and replacing surfaces, or having new surfaces, I should say, there is unfortunately going to be some more disruption.”

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