Trouble In (Turf) Paradise: Sale Again Called Off, ’24 Meet Still Planned

For the second time in four months, a reported sale of Turf Paradise has been called off.

The track's current owner, Jerry Simms, broke the news at Friday's Arizona Racing Commission (AZRC) meeting without disclosing details or being pressed by regulators to provide any additional information.

Preparations for a planned Jan. 29-May 4 race meet are still underway, though, according to testimony from track officials, commission employees, and representatives of the Arizona Horsemen's Benevolent and Protective Association (AZHBPA).

The revelation that the deal was a no-go didn't seem to come as a shock to commissioners or stakeholders.

Specifics of the transaction had been shrouded in mystery and tinged with dysfunction since the outset.

At AZRC meetings in recent months, horsemen had expressed skepticism, frustration and even derision over whether Simms was working in good faith to make the sale. They had also alleged they were being kept out of the loop on key details about the future of the state's lone remaining commercial Thoroughbred track.

Simms had repeatedly denied those accusations. But it's no secret that Simms and Arizona horsemen have had an acrimonious business relationship for the better part of two decades.

Perhaps what was most bizarre about the Jan. 12 no-sale disclosure was the non-reaction from almost everyone else.

No commissioners asked Simms to elaborate on the failed deal, and when AZHBPA representatives were given their turn at the microphone to comment, they chose not to utter anything about the called-off sale. Instead they waxed glowingly about how well work for the coming race meet was progressing under Simms's stewardship.

The dialogue unfolded like this:

Friday's meeting had progressed about 35 minutes without any mention of the proposed sale, which was unusual considering the deal had previously been a focal point of discussion.

Back on Dec. 5, the AZRC had conditionally approved the '24 meet for Turf Paradise, which was to be conducted by Simms as he attempted to close on a sale of the 213-acre property to an entity known as Turf Paradise Land Trust.

On Friday, Turf Paradise general manager Vincent Francia was winding up comments about the work being completed in preparation for the meet when commissioner Linda York interjected to ask about an update on the sale, which Francia had not mentioned.

“Mr. Simms would be the one to provide an update to the commission,” Francia deferred, claiming that he didn't know if Simms was remotely listening in to the meeting to be able to comment. He offered to pass along a message to Simms, though.

A few moments later, Simms chimed in, claiming phone difficulties had at first prevented him from speaking.

Simms then took a few minutes to rail about an old feud over off-track-betting (OTB) with the now-defunct Arizona Downs, during which AZRC chairman Chuck Coolidge stepped in, asking him to stick to the current topic.

Simms continued his rant for a bit longer, then switched subjects.

“Commissioner York, right now, regarding your question about a sale? Right now there is no sale under contract. There is no deal. The deal was there before. The people never put up their money, and it just didn't happen.”

No commissioners asked why, what transpired, or what the falling-through of the deal meant for the future of Turf Paradise.

Instead, after a pause of several seconds chairman Coolidge just moved on to the next agenda item like nothing significant had just occurred.

Soon after, J. Lloyd Yother, the president of the AZHBPA, declined an opportunity to offer any sort of report when called upon to speak.

Yother deferred his time at the microphone to Leroy Gessmann, the AZHBPA's executive director, who said the Turf Paradise projects “are going slow, but they are moving forward….The racetrack, in the nine years that I've been here, is the best condition it's ever been in. For the first time in nine years, it was done properly [and] I want to thank Turf Paradise for getting a safe racetrack.”

Only later, during the public commentary portion of the meeting, did anyone briefly address the fall-through of the sale.

“That track is really not for sale,” said Stephen Nolan, a frequent critic of both Simms and the AZRC. “It's an illusion. A delusion that [Simms] is trying to portray. He won. He got his OTBs. He collects that money. He puts nothing back into the industry. That's obvious [by the condition of the property]. We need [the commission] to be proactive.”

In recent years, disagreements between the Arizona racing community and Simms have roiled in the courts and at AZRC meetings. Prolonged fights over OTB privileges, simulcast signals, and how the horsemen's purse money can be used have all been topics of heated debate.

Turf Paradise ended its most recent season in May 2023 with a different buyer doing due diligence to purchase the property. At the time, Simms said he wanted to retire to spend more time with his grandchildren.

On Aug. 1, Simms announced Turf Paradise wouldn't be opening in November as scheduled for its traditional six-month meet.

On Sept. 18, the months-long purported sale with the first buyer was publicly declared dead.

Ten days later, Simms announced a new buyer had suddenly emerged.

The AZRC met on Sept. 28 and Oct. 12 without anyone from the new prospective buying group coming forward to speak.

But during the Nov. 9 meeting, Simms introduced a representative from Turf Paradise Land Trust while claiming the two parties were at the escrow stage of a deal. AZRC staffers indicated that a vetting process to license the new ownership group was underway, but noted that process could take months to complete.

Despite their stated misgivings about Simms and the sale, on Nov. 10 the AZHBPA board of directors voted to extend required interstate simulcasting permissions so Turf Paradise's 37 off-track betting parlors wouldn't go dark and could instead keep generating revenue for purses at the upcoming meet.

During the Dec. 5 AZRC meeting at which Turf Paradise was green-lighted for racing in '24, Simms said the sale had hit snags, but he did not elaborate on them or indicate the deal was in jeopardy.

Now fast-forward to the Jan. 12 meeting. During the tail end of the public commentary session, Simms asked for and was granted a second turn to speak.

But instead of clarifying aspects about the future of Turf Paradise, Simms only made the overall situation more cryptic by underscoring that he wanted to move on from running the racetrack.

“You know, when I get a permit to run a track for three years, it doesn't mean I have to run three years if I want to retire,” Simms said. “If a doctor gets a license to practice medicine for five years, and after three years he wants to retire, he doesn't have to practice the entire five years…

“I want this industry to flourish. But I want to retire. And I'm allowed to retire. I feel badly for trainers that need a place to run. But at a certain age, I want to retire,” Simms said.

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California’s Purse-Cut Woes Driving Horses To Turf Paradise

Turf Paradise, which only weeks ago seemed either destined to remain dormant and in disrepair or perhaps even ready to face the wrecking ball, appears to be in the midst of orchestrating a remarkable comeback.

Track management, horsemen, and regulators all expressed confidence and a renewed sense of optimism during Thursday's Arizona Racing Commission (AZRC) meeting that the Phoenix track was on target to hit a Jan. 29 start date for the first commercial-track meet in the state since May.

Several stakeholders underscored during the Dec. 14 meeting that a better-than-expected demand for stall space at Turf Paradise is being driven by recently reported purse cuts in neighboring California, where both the soon-to-close Golden Gate Fields (-25%) and Santa Anita Park (-5%) are projected to offer less money this winter.

“We are getting, at this time, more horses wanting to come in to Turf than we had previously anticipated,” Turf Paradise's general manager, Vincent Francia, told commissioners.

“I think we are benefitting–and I don't like to benefit from someone else's misfortune–but what's going on in California is producing an influx of horses to come over for the race meet,” Francia continued.

“I'm sure everybody has seen that Santa Anita is going to have to reduce their purses. No track wants to do that. But business is what guides that decision, and the primary reason is they're running six- and seven-horse fields, and our sport cannot survive on six-and seven-horse fields,” Francia said.

“The reason why I'm saying that [is] the anticipation of horses has exceeded our expectation for the upcoming meet. That is healthy for the Arizona racing industry to get back on its feet,” Francia said.

The projected slashing of purses in California and the resulting out-of-state migration was also discussed later on Thursday at the California Horse Racing Board's monthly meeting, where that commission's vice-chair, Oscar Gonzales, castigated Santa Anita and Golden Gate for contributing to the horse outflux.

“We have Arizona that's getting ready to reopen with higher purses,” Gonzales said. “Meanwhile, [California tracks are] cutting them. I just don't think that there's anybody paying very close attention about how we make sure we're retaining quality horses and quality horsemen.”

J. Lloyd Yother | Coady Photography

J. Lloyd Yother, the president of the Arizona Horsemen's Benevolent and Protective Association, said during the AZRC meeting that Turf Paradise has gone from a situation of concern over possibly not being able to fill entries to potentially not having enough stabling to house all the horses that reportedly are on their way to Phoenix.

“The fear in the beginning was that we wouldn't have enough horses,” Yother said. “But according to the racing secretary [Robbie Junk], we're getting more than we anticipated, which is a good thing. So we may have ample number of horses. The only thing I'm concerned with is that we have enough barn area in the event that we do have those horses.”

Neither Francia nor Yother mentioned a specific number of horses that are expected to be on the grounds.

But Francia did confirm that only barns A through D and barn K would be used for stabling.

Yother said barns H through L “possibly need to be condemned.”

Trainers and their crews will be allowed on the backside starting Friday to set up stalls. Horses can begin arriving Monday, Dec. 18.

Francia said the previously problematic main track and rail, which had come under scrutiny from the Horseracing Integrity and Safety Act (HISA) Authority earlier this year, has now been brought up to spec.

“It took two weeks [of] 12-hour days, and the track is unlike anything that I have ever seen,” Francia said.

Yother offered this assessment: “The track was in horrible condition. It was unsafe. The rail wasn't right. But the management did step up [and] did a marvelous, marvelous job….

“The rail is excellent,” Yother continued. “The [dirt] track is good. The turf [seems] great. I'm just worried maybe [there's] overseeding with the rye grass and how much [use it will be able] to handle and [whether] the root system will be able to hold up. That's to be seen.”

Yother did articulate concerns about the half-mile training track at Turf Paradise.

“The training track is in bad, bad condition, and it needs to be [made safe],” Yother said. “I encourage management to do something to get the training track in as good shape as the main track.”

Back on Dec. 5, the AZRC gave unanimous but conditional approval for Turf Paradise's current owner, Jerry Simms, to conduct a Jan. 29-May 4 race meet.

Simms and Arizona horsemen have had an acrimonious business relationship for the better part of two decades, and permission for the upcoming meet was granted after one proposed sale of the track property fell through in September and another quickly-put-together sale is currently stalled but reportedly ongoing.

The conditions attached to the licensure have to do with Turf Paradise either complying with or getting the HISA Authority to waive its requirement that stipulates a 90-day advance notice from any track before the start of racing. In addition, the Authority still has to accredit Turf Paradise in terms of overall safety standards.

Rudy Casillas, the deputy director of the AZRC's racing division, told commissioners on Thursday that “From a regulatory standpoint, the [AZRC] and HISA are doing everything reasonably possible to expedite the process while maintaining integrity and safety.”

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New Buyer for Turf Paradise Emerges

The current Turf Paradise owner is courting a new buyer who just emerged last week as a potential savior for keeping racing alive at the state's otherwise-closing cornerstone track.

On Thursday, the Arizona Racing Commission (AZRC) voted to extend Turf Paradise's simulcasting privileges through Nov. 12 while regulators commenced a due diligence vetting process that could greenlight the sale.

The stated goal among stakeholders is to start a race meet in January under new ownership at the Phoenix oval.

The current management announced back on Aug. 1 that the 67-year-old track wouldn't be opening for live racing as scheduled in November.

The principal buyer in the deal was named as Frank Nickens by Arizona Horsemen's Benevolent and Protective Association (AZHBPA) president Lloyd Yother.

At a different point in the meeting, Turf Paradise general manager Vincent Francia said Nickens hadn't been able to attend the online-only Sept. 28 meeting, so he instead read a prepared statement on Nickens's behalf that Francia said was signed by Richard Moore, the chief executive officer for an entity called Turf Paradise Trust, LLC.

But other than disclosing the names of the principals and their potential buying group, virtually nothing was discussed at the meeting regarding their business or racing backgrounds.

The name of that limited liability company is not currently listed with the Arizona Corporations Commission, although it is possible the deal is coming together so quickly that the registration does not yet appear in the government's database.

“A lot of people have to understand that this guy [just] came forth [Sept. 20],” Yother said. “I do not know Mr. Nickens. I have no connections to Mr. Nickens. And all I can go on is what he discussed with the contract group with the HBPA.”

Yother said Nickens met Tuesday with AZHBPA representatives for several hours, then spoke again at an AZHBPA board meeting on Wednesday, at which the horsemen gave the prospective buyer their support to approve temporary simulcast permissions commencing Oct. 1.

That permission from the horsemen is necessary so that Turf Paradise's advance-deposit wagering agreements and 37 off-track betting parlors under won't go dark after Sept. 30 and can still generate purse account money.

“This all had happened in the last three or four days,” Yother said. “But it's the only 'olive branch,' if you will, that we could grab ahold of at this time to keep the OTBs open and running. All we're looking for is someone to run live racing in the state of Arizona and to save the industry.”

A planned sale of Turf Paradise to a different buyer, CT Realty, was first made public Apr. 12. At that time, TDN reported that racing was expected to continue there only as a placeholder for several more seasons while new uses for the 67-year-old venue went through the planning, approval, and construction stages.

About a month later, CT Realty announced that it would consider keeping racing going on a longer-term basis if it could successfully lobby the state legislature to approve historical horse racing machines or some other form of gaming at the track.

But on Sept. 18, Jerry Simms, who has owned Turf Paradise for 23 years, made it public that the deal to CT Realty had fallen through, and that the track and its simulcasting outlets would close Sept. 30.

The Nickens-led LLC buying group emerged immediately thereafter, Simms said.

“We've entered into a letter of intent. A purchase contract is being sent [Thursday] morning,” Simms said. “I believe the [AZRC on Wednesday] sent him his papers for his licensing and permit,” Simms said.

As Francia explained, “The plan is to open a live race meet in early January, and that is what we are all aiming for.”

Simms has been on the record since 2020 as saying that Turf Paradise operates at a “huge negative” financially.

Simms said several other potential buyers wanted the 213-acre property after the CT Realty deal blew up, but he underscored that he wants to sell to the Nickens group because that entity wants to keep the sport going instead of redeveloping the track for some other purpose.

“I had several buyers for the track. And I chose the buyer that I signed an agreement and [am] moving ahead with because he plans to run racing,” Simms said.

“He's very much an enthusiast; wants to have racing, is not interested in [redevelopment],” Simms said. “I want to save the industry, the jobs. I could have gotten even perhaps more money with one of the other buyers, [but I wanted} to save racing.”

In recent years, the relationship between the Arizona racing community and Simms has been acrimonious. An extraordinarily long pandemic closure, multiple racetrack safety issues, and prolonged fights over off-track betting privileges, simulcast signals, and how the horsemen's purse money can be used have roiled in the courts and at racing commission meetings.

“The purchase and sale, he's ready to move ahead,” Simms said. “He said he could close in 60 days.”

Simms added that if the deal doesn't get done by January, or if the AZRC hasn't completed its vetting process, he would be open to some sort of leasing arrangement that would enable a race meet to begin in 2024 even if the sale isn't official.

“Hopefully the [AZRC] will have enough time to do their due diligence. But the purchase and sale, he's ready to move ahead.”

The prepared statement from the Nickens entity that Francia read into the record stated that the new LLC is “working towards the purchase of Turf Paradise racecourse. We plan to keep live racing and to bring this facility into a new era [and continue] horse racing for the benefit of everyone involved. We feel the preservation of such a wonderfully historical facility and the preservation of thousands of jobs horse racing offers can carry the legacy of Turf Paradise on for another 50 years. We plan to completely redevelop the surrounding land, all for the benefit of horse racing. We look forward to a new, bright future for everyone at Turf Paradise.”

Beyond the horsemen-vs.-Simms feuding that has hovered over Arizona racing like a dark cloud for years, Turf Paradise and Arizona Downs, 82 miles north in Prescott Valley, have continually been at odds over race dates and the control of simulcasting signals.

Arizona Downs didn't apply for a June-through-September race meet this year because of financial difficulties. It has been mentioned as being up for sale or lease for well over a year, with 1/ST Racing and Gaming often rumored (but never confirmed) to be a potential buyer.

Arizona Downs formerly operated as Yavapai Downs between 2000 and 2010, when the ownership at that time filed for bankruptcy.

David Auther, a co-owner of Arizona Downs, questioned at Thursday's meeting why Turf Paradise would be getting simulcasting privileges even though its current ownership has stated it wants out of the live racing business.

“We need to consider enforcing the statute that is on the books that says each track gets its signal during its meet, and only during its meet,” Auther said.

“Having said that, we congratulate Turf Paradise on finding this buyer,” Auther continued, expressing slightly sarcastic incredulity about the prospect of  “a guy that nobody knew of a week ago who's going to come in the door and pay hundreds of millions and have a contract in four days.”

Added Auther: “I'm sure that somebody's going to vet this. And I have a hunch the vetting won't take very long [and] we'll all know how to proceed here.”

TDN phoned Auther after the meeting and left a voicemail asking if he'd elaborate on why he didn't think the Nickens group's vetting process would take long. No callback was received in time for this story.

Nor did Francia, of Turf Paradise, return a message left by TDN asking for details about the deal and the background on who, exactly, the buying group is.

As AZRC chair Chuck Coolidge quipped at one point during Thursday's meeting, “It's not a traditional Arizona Racing Commission meeting without the two tracks going against each other, as always.”

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Arizona Commission Meeting: ‘The Eyes Are On Us’

If there's a main takeaway from Tuesday's Arizona Racing Commission Meeting, it's an acknowledgement from officials and track management that the racing industry is monitoring Turf Paradise closely.

“We've got to do a better job at coming up with answers and coming up with solutions,” said commissioner Rory Goree, arguably the most outspoken member of the commission about Turf Paradise's poor equine safety record.

“I'm hopeful that here, in the near future, we as a commission will be able to talk about some of the solutions and ideas and make Arizona the light it needs to be, that we're making the change, doing the right thing instead of being the laughingstock that we are right now,” Goree added. “The eyes are on us.”

Repeated mention was given to racehorse Creative Plan (Creative Cause), who last raced at Turf Paradise Jan. 7, when a tailed off last of nine.

Creative Plan was recently euthanized due to irreversible damage to his suspensory ligaments and fetlock joints that had deteriorated over the course of weeks, according to an article in the Paulick Report Tuesday morning.

Between the time he last ran and his euthanasia, however, Creative Plan was sent to an Arizona horse auction, but went through unsold before being abandoned, the article found.

“With Creative Plan, there was a lot of finger-pointing going on, trying to cover our own butts,” admitted Goree.

In her latest track safety report, Sue Gale, the Arizona Department of Gaming's chief veterinarian, explained that Turf Paradise's race-day equine fatality rate was “creeping up.”

In a special commission meeting earlier this month, Gale said that the racing-related catastrophic injury rate was 2.8 fatalities per 1000 starts this season at Turf Paradise.

In her report Tuesday, Gale said that the fatality rate was now around 2.98 per 1000 starts at Turf Paradise.

According to the Jockey Club, the national fatality rate for 2020 was 1.41 per 1000 starts.

Gale said that she has included Creative Plan's death in the track's race-day fatality rate because he was injured during a race, “and then was put to sleep, or euthanized, this past week.”

However, another horse that fractured its fetlock earlier on in the meet, and who, despite efforts at rehabilitation was euthanized three months later, was not included within the track's race-day fatality numbers, Gale explained.

More broadly, official veterinarians, said Gale, have lately been scratching more horses on pre-race exams.

“It does seem that now we're about half-way through the meet, some of the horses are showing some wear and tear,” said Gale.

Nevertheless, one ongoing problem has been the lack of veterinarians “or administrative assistance” to help identify and red-flag horses at greater risk of catastrophic injury at Turf Paradise prior to pre-race exams, admitted Gale.

Gale said that, while she has been doing this task on a limited basis, “having someone on the staff that can do this on a more regular basis” would likely make a difference.

Rudy Casillas, the Department of Gaming's deputy director and racing division director, reported that he has asked Gale to start requiring the horsemen to submit updated veterinary medical records of every horse that is entered to race.

“That way, the veterinarians can review those medical reports of each horse that is entered to race and get a better sound picture of that horse's capability and physical status and medical status,” said Casillas. “That will be implemented coming forth, and, hopefully, that makes a difference.”

Another potential nexus of change is the state's claiming rules, said Goree.

“Seems like every morning I read the board and find out that there's a horse that's moved on, just wandering around on the backside, and I think it's because these horses are getting claimed so much they don't know where they live,” said Goree.

According to Goree, he has spoken with Rudy Casillas, the Department of Gaming's deputy director and racing division director, about the claiming rules.

“I know he's going to talk to the AG [attorney general] and see what we might be able to do,” said Goree.

Turf Paradise general manager, Vincent Francia, added more texture to the issue, reporting that there have been 441 claims thus far this season.

“That is a record here at Turf Paradise,” said Francia, pointing as a reason to the track's purses–now supplemented with both state and federal funds–with the average purse working out at about $19,000 per race.

“When you have a purse structure like we have, a lot of claiming is going to go on,” Francia said.

Another ongoing question mark at Turf Paradise has been the condition of the racing surface.

This week, Turf Paradise drafted in veteran track surface consultant Steve Wood to monitor the adding of organic materials and sand to the main track, Francia said.

The organic materials are put in to give the track “bounce” and to help maintain moisture levels, said Francia. The sand is to help prevent clumping of the clay-like materials, he added.

A problem seemingly as intractable as track conditions at Turf Paradise has been a shortage of official veterinarians. Indeed, at the commission meeting last October, Gale suggested putting a call out to practicing veterinarians in the area as an opportunity for them to “pick up some work.”

In an attempt to alleviate the burden, the gaming department has asked for funding for an additional veterinarian in the latest executive budget, said Arizona Department of Gaming director, Ted Vogt.

“It's been our number one funding issue for the past two fiscal years, so we're hopeful it'll get across the line this year,” said Vogt.

Earlier on in the meeting, the commissioners voted to approve Rillito Race Track's three-year racing permit application and the race-dates within that window, despite ongoing questions as to the facility's economic viability.

Casillas said that a prior financial review of the track found that it was “insolvent” with less than $1,000 in its bank account at the time.

Because of the importance of Rillito in the Southern Arizona racing calendar, however, “the department has worked tirelessly with Rillito staff to project Rillito's revenue streams, donations, purse monies, state and federal grant funds that are being provided to Rillito,” said Casillas.

That projected amount comes to roughly $900,000 plus. The department's original estimate of Rillito's costs to operate the race-meet was $1.2 million.

“Therefore, the division strongly recommends that Rillito tighten their belts, and be extremely vigilant and responsible and not expend needlessly,” said Casillas, who added that the gaming division would be monitoring their financial predicament closely.

“We want to openly inform Rillito that on an ongoing basis, the division will scrutinize their financial status, and expect that Rillito meet all their obligations, and more so, adopt generally accepted accounting principles to correct the past few years of disarray,” said Casillas.

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