Tuesday, June 1, 2010

“Horse racing chief denies fixing rumors” plus 2 more

“Horse racing chief denies fixing rumors” plus 2 more

Horse racing chief denies fixing rumors

Posted: 01 Jun 2010 02:55 PM PDT

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ANDERSON, Ind. (WISH) - More than $100,000,000 is wagered every year on horse racing in Indiana, an industry that provides thousands of Hoosier jobs.

That's why when I-Team 8 caught wind of rumors of illegal activities, we went digging for answers.

I-Team 8 discovered a letter Senator Luke Kenley wrote to high ranking members of Indiana's Horse Racing Community, saying he's asking for a state police investigation after persistent rumors of illegal activity.

"Some element of racing, particularly standardbred racing, there was a question as to whether there was a fix involved in some racing that was going on," reports Senator Kenley.

But state police say there is no current probe.

Some in the racing community had complained to Kenley that there may be a conspiracy among trainers, judges or riders to predetermine the outcomes of some races. Because the allegations mainly focus on harness racing, we came to Hoosier Park where harness racing is currently underway.

The man who represents all the horsemen in harness racing says there are plenty of safeguards in place to keep race fixing from happening. Plenty of ways, he says, that the sport is keeping itself honest. He says he simply hasn't seen any cheating.

"No, no. To my knowledge, there's absolutely nothing like that going on," says Dave Redlin. "You know they way the commission is here with the judges, the security and the horsemen in general it's pretty hard to believe."

We met with Joe Gorajek, the Executive Director of the Indiana Horse Racing commission on Tuesday. He didn't want to talk on camera, but did provide some insight saying as far as he's concerned, there is no legitimate claim or formal complaint of any wrongdoing among the racing commission; if there was he would pursue and prosecute.

He also pointed out that this owner/trainer/and driver who was recently suspended in Michigan during a race fixing investigation has now had his Indiana license suspended too.

Each time we do one of these investigations we hear from more and more people connected to the horse racing industry across the state. As we learn more, we'll bring it to you.
 

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Steering a calm course through choppy seas

Posted: 01 Jun 2010 04:27 PM PDT

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The Irish Times - Wednesday, June 2, 2010

The chairman of Horse Racing Ireland feels it's vital that racing gets a cut of the off-shore profits from gambling, writes BRIAN O'CONNOR 

ANY FRANCOPHONES in the Department of Foreign Affairs might soon find themselves seconded to the Departments of Finance and Justice to inadvertently play a crucial role in the salvation of Ireland's racing industry.

Ever since Taoiseach Brian Cowen announced that the Government will this year start to tax off-shore bookmakers and give the money to a cash-starved Horse Racing Ireland (HRI), there has been speculation about how such a system will work.

In reality a model is already in place, put through the French parliament in April and waiting, it seems, for some civil servant linguist here to translate it into the sort of judicial jargon that approximates English. The other bits that will have to be changed are the figures. When the French authorities legislated for online betting, they put in the sort of licensing system that guaranteed a massive eight per cent of tax raised on turnover goes to French racing, with a smaller percentage reserved for other sports that might have generated income on gambling as well. The figures added up to a good deal for racing while being so unattractive to foreign bookmakers that the betting exchange Betfair decided not to bother with the French market.

The challenge for the Irish authorities is likely to be creating a fundamentally similar system but with tax rates that encourage the likes of Betfair, Ladbrokes and all the other bookmaking giants into wanting to operate here while generating enough levy to revitalise a racing industry severely weakened by budget cuts in the last year and a half.

"Without trying to be alarmist, the industry, and racing itself, can't take much more of what has happened in the last 18 months," says HRI chairman Denis Brosnan.

"Everyone knows the position the country is in and that pain has to be taken. But there comes a time when you can't take any more pain, and racing, and the thoroughbred industry, is certainly there now."

That year-and-a-half of cuts, which has seen funding cut from €76 million to €59 million, with an estimated 2,000 jobs lost, has racing grabbing at the Taoiseach's announcement of a guaranteed funding structure the way a drowning man grasps at a lifebuoy.

Legislation has to be in place before the Budget towards the end of this year, and Brosnan is happy the process can be completed with a minimum of fuss. He insists the details of such legislation are a matter for Government, but Brosnan's happiness will be proof enough for many that the broad thrust of HRI's funding ideas has been accepted. And for HRI ideas, read the chairman's.

The man who built Kerry Group from virtually nothing will finish as HRI chairman next year, a full 20 years after first taking on the onerous job of leading Irish racing.

In that time, the ruling body's titles have changed, from the Racing Board to the Irish Horseracing Authority and now HRI. And yet Brosnan has been the constant figure at the front, fighting the unpaid fight for an industry that can polarise popular opinion like few others.

Whatever the merits of racing's close funding arrangements with various governments, and the envy and bitterness that generates elsewhere, no one doubts the effectiveness and the influence Brosnan brings to the task.

The man whose business acumen remains as renowned as the intensity with which he pursued success has lobbied for racing so successfully that any bookmakers hoping to hang on to tax-free, off-shore profits must have known the game was up earlier this year when Labour, of all parties, advocated taxing off-shore companies and giving the income generated to racing.

"It was certainly a boost for morale," is all Brosnan will say about that particular coup.

The statement is delivered with the crispness of language that is as much a Brosnan trademark as the pursed-lipped devotion to business logic that saw him retire from the Kerry Group in 2001 after fulfilling the task of turning "milk into money" – an estimated €2 billion worth of money.

The previously jet-black hair is more peppery now at 65, but there remains, if not quite "something of the night" about Brosnan, then a mildly Gothic vibe that must occasionally play to his advantage around the boardroom table. Arguing for racing, he says, is different.

"I have always said if racing's case doesn't stand up, then we simply can't go round with a begging bowl. We have always presented the case in a simple, rational and professional manner. The case must always stand up. And it does," Brosnan declares.

The case against that case has in the past centred on how much of the Government funding has gone to prize-money, which in turn goes to owners who by definition are not short of a bob.

Brosnan summarily dismisses the criticism, and, with the sort of cross-party support HRI now has, it appears he is not alone. In fact, the one sector not now fully on board is the bookmakers.

HRI's chairman argues that the line articulated by Paddy Power about an equitable taxation system for all is one he agrees with.

"There's little point losing two or three hundred jobs in Tallaght and saving two or three hundred in Co Cork. We must try and save jobs everywhere."

And the foundation of that is to get racing's funding set up properly, with a percentage of online and telephone betting turnover – currently estimated by HRI at €1.5 billion – plus the granting of licences to trade in Ireland that will be calculated in terms of millions of euro rather than thousands.

"In simple terms, if a company is taking bets from an Irish citizen, they must be licenced to do so. And if they aren't, they won't be allowed to advertise in this country, to use credit cards or to seek clients.

"That's the basic legislative concept embraced by countries who have decided to act. The country that has most recently protected its industry is France. And the French model is one we like," Brosnan says.

"Obviously it has to be a balancing act for the Departments of Finance and Justice in terms of the cost of licences, penalties associated with it and what is needed to support the industry.

"There will always be loopholes. People can always act outside of the law. The majority of people, though, are happy to live within the law. Major multi-national companies, in order to trade and protect their good name, have to trade within the laws of the country they are trading in," he adds.

Bookmakers reckon the figures going off-shore are half of HRI's €1.5 billion estimate, although Brosnan counters that the bookies' figures don't include half-a-dozen of the main players. But a one per cent turnover tax on that figure, plus existing receipts from within Ireland, along with a licence fee on the top 10 betting companies, could take HRI's funding back to pre-recession funding levels.

In the political and economic conditions of Ireland right now, that would be some result.

But in terms of jobs, and the worldwide influence that the Irish horse industry exerts, Brosnan's arguments have clearly converted all the main political parties.

With his term of office due to end next year, a guaranteed funding system would be some legacy to leave behind, but the Kerryman living in Limerick takes nothing for granted. A similar euphoria existed after the establishment of the Horse and Greyhound Fund in 2001, only for the foundations to creak. And rare is the figure within racing who can rely on general approval.

Brosnan's ability and energy in fighting racing's corner is widely acknowledged, but he is also regarded as being close to Coolmore Stud's John Magnier and JP McManus, something that doesn't endear him to everyone. The three men have been involved in business together.

Brosnan's Croom House Stud has also had yearlings bought by Magnier, including Zoffany, one of the best two-year-olds seen out in 2010 and a prime prospect for Royal Ascot later this month.

Paddy Power have pointed out how only 11 per cent of their turnover is on Irish racing and object to the sector being pledged all future revenue from gambling of any sort.

If Zoffany runs at Ascot, however, his breeder suggests that any betting on him will reflect the international nature of gambling in 2010.

"Every country, including France, recognises how the horse industry is an international industry. If an Irish horse runs in Dubai, Irish people will bet on it. If an Irish horse runs in the Breeders' Cup, people will bet on it. So why not pay a levy?" Brosnan argues.

As for betting revenue generated on other sports being eventually used to finance those same sports, he believes that is something HRI can hardly oppose if the situation ever develops. But racing is the immediate priority.

"I came up through the agricultural scene and the dairy industry is now worth only half what it was in the 1990s. Pig meat products are now imported here from Denmark, Holland and other countries. Maybe I could persuade better than anyone, with my life in rural Ireland, that please, don't let another industry go," he says.

Against the odds the Horse Racing Ireland chairman looks to have persuaded the political powers to take drastic action to prevent that happening. And the mechanism for doing so might even have a French accent.

De nis Brosnan on:
 

Racing's difficulties: 

'There has been massive decline in the last two years. Another year or two of that and we will find ourselves way down the ladder in the thoroughbred sector."

Closing racecourses: 

'I am strongly of the view there are too many tracks in this country, but if you ever decide to close any of them, the whole political system will come on top of you. You will be told you can close a track, but not on my back door. It would probably be more difficult than it would be to close the local Post Office."

Falling attendances: 

'1.5 million went racing in 2001-02. Now it is 1.1 million. There is nothing we can do about that. All sporting and leisure organisations are suffering. The reality is that people don't have the same money as three or four years ago. But those people will come back."

Racecourse admission prices: 

'I don't have a figure of what is acceptable but I do know that what is being charged today is not acceptable. We (HRI) have sat on top of every racecourse for the last 12 months, saying there must be better value, and we are beginning to see a trickle-through. We have used a lot of carrot – and a lot of stick."

On-course bookmakers: 

'I hope and think there is a future for them. Their competition is the bookmaking chains and the exchanges. Punters can now sit at home, get live television pictures and place bets over the phone or on computer. We've seen the ring decline.

"But it is not the public, the racegoer or HRI that is putting on-course bookmakers out of business. It is the system that has been allowed to develop whereby huge amounts of money are going off-shore."

Brosnan Factfile 

Born: 1944, near Tralee, Co Kerry.

Educated: St Brendan's College, Killarney. Bachelor and Masters Degrees in Food Science, University College Cork.

First job: Detergent salesman.

Lives: Croom House Stud, Co Limerick.

Racing politics: Chairman Racing Board – 1991. Chairman Irish Horseracing Authority – 1994.

Chairman Horse Racing Ireland – 2001.

Breeder: Damson (Group One Phoenix Stakes), Lavinia Fontana (Haydock Sprint Cup), Candy Glen (Italian 2,000 Guineas), Subtle Power (King Edward VII Stakes).

Prize-money: 'The perception on prize-money is so wrong. Of the 10 major races run here in 2009, worth €300,000 or more, HRI's contribution was just a few hundred thousand. At the recent Irish Guineas meeting, both classics were worth €325,000. HRI put no money into them. It was all entry and owners fees."

Racing's future: 'Over 10 glorious years the Irish horse became a truly international business. It would be nice to think we can get back to that. I hope we can restore it with Government legislation to a state of health where it has the ability to grow again when this recession ends."

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Horse Racing Capsules: New York racing woes overshadowing Belmont Stakes

Posted: 01 Jun 2010 02:34 AM PDT

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While there's not much buzz surrounding the lackluster field lining up for the 1½-mile trip around Belmont Park this year — no Triple Crown on the line and neither Kentucky Derby winner Super Saver nor Preakness winner Lookin At Lucky are running — there's plenty humming when it comes to the frazzled financial state of racing in New York.

Sure, the entire industry is far from flourishing, but in New York some would argue it's simply floundering.

Consider a one-week span late last month:

—On a Monday, the association that operates New York's three major tracks — Aqueduct, Belmont and Saratoga — said it was running out of money and hinted of an unprecedented shutdown unless the state came through with a loan.

—By Friday, the 1,400 employees of the New York Racing Association had been warned that racing could cease June 9, four days after the Belmont, and the lucrative Saratoga summer meet could be in jeopardy.

—After a weekend of negotiations, state lawmakers approved a $25 million loan on May 24 that should keep NYRA in business into next year.

The Belmont Stakes is a go, so is the rest of the meet, and Saratoga — the jewel of New York racing — is set for its run beginning July 23.

"I think that's a step in the right direction," says top trainer Todd Pletcher, who won his first Derby with Super Saver and runs one of the nation's largest stables. "Everyone takes a sigh of relief and we continue with business as usual."

All is not well, though. This kind of stuff has been going in New York racing for decades. A loan here, a deal there. A temporary fix, followed by another plea for state money.

The current problems are not a secret, starting with the failure of New York Gov. David Paterson and the legislature to approve a group to operate video lottery games at Aqueduct. The 4,500 machines, which were approved by the state in 2001, could generate hundreds of millions in revenue for the state and the racing industry.

The New York City Off-Track Betting Corporation owes NYRA $17 million, was recently taken over by the state and is currently in bankruptcy. It has been losing money for decades.

The state, meanwhile, is working on solving its own $9.2 billion budget deficit.

There are six regional off-track betting outfits in New York that take in about $2 billion annually, and they all act independently, not only competing against each other for customers, but with NYRA as well.

"There's nothing wrong with New York that (a repair to) a broken OTB model and a partisan political arena couldn't fix," David Willmott, the CEO of Woodbine Entertainment Group, which operates Woodbine Racetrack, told The Toronto Globe and Mail recently. "The biggest thing is that Albany has been fooling around for so many years on the naming of a slot operator, which in that market, would be highly profitable."

Charles Hayward, NYRA's president and CEO since 2005, says he's hopeful the recent series of events may jump-start long overdo changes.

"I don't know why I should be, but I think some things will fall into place by the end of the year," Hayward said. "If tracks and OTBs were working together, we would have the best racing in the country."

One reason Hayward is optimistic: After two previous deals fell through with a casino operator due to either political squabbles or financial issues, the New York Lottery now is handling a new bidding process and plans to announce its recommendation by Aug. 3. Paterson says he will he accept the choice, leaving final approval to the legislature. Previously, political leaders were in charge from the start.

"The Lottery making the selection for an operator and then making the recommendation to the political leaders is huge," Hayward said. "I think it was critical to get this money, it's critical to get the (casino) operator's name, and I think we're so much farther along then we were only a month ago."

The relationship with NYCOTB is a more complex problem.

NYCOTB was taken over by the state in 2008, and filed for Chapter 9 bankruptcy protection last year to reorganize an operation that takes in about $1 billion in revenue annually, but was reportedly losing between $600,000 and $800,000 per month.

"You can't pay what you don't have," NYCOTB chairman Meyer "Sandy" Frucher said, adding he was handed a flawed operation when he was appointed by Paterson in June 2009. "The NYCOTB business model is horribly out of date so that when you put it together it forces the dysfunctionality of the industry, particularly given that it is a major revenue raiser."

While NYRA turns its attention to staging the $1 million Belmont, it also is keeping tabs on Monmouth Park's new initiative of cutting racing dates to three days a week — with $1 million in purses daily for a 50-day meet from April to September. The purse structure is the highest in the nation.

Pletcher is among many horsemen watching what unfolds at Monmouth.

"It's premature to say now, but it looks like it could be a success," Pletcher said. "If so, then I think a lot of other tracks will take that into consideration and maybe change what they are doing."

For now, NYRA is mandated to run year-round racing, which totals about 250 racing days.

At the Preakness in Baltimore, Hall of Fame trainer D. Wayne Lukas made his annual call for a racing commissioner, and used New York racing as an example of what one strong voice might accomplish.

"Look at the New York Racing Association. I bet you can't name three executives and if one of them called a congressman he wouldn't get a call back because the guy wouldn't even know who he was," Lukas said.

Quality Road stars in winning Met Mile at Belmont

NEW YORK (AP) — Todd Pletcher's had quite a month of May. It began with his first Kentucky Derby win with Super Saver, and ended with his first Metropolitan Handicap win with Quality Road on Sunday.

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