Sunday, July 18, 2010

“Horse track owner suing over simulcast 'boycott'” plus 1 more

“Horse track owner suing over simulcast 'boycott'” plus 1 more

Horse track owner suing over simulcast 'boycott'

Posted: 18 Jul 2010 07:07 PM PDT

Md. raceway company accuses thoroughbred industry of conspiracy

The company that owns bankrupt horse-racing track Rosecroft Raceway is suing Maryland's thoroughbred industry on charges of conspiracy and monopolization -- plus eight other counts of antitrust violations -- for an alleged "boycott" against Rosecroft.

Rosecroft's parent company, Cloverleaf Enterprises, says the Maryland Jockey Club, Maryland Thoroughbred Horsemen's Association and several other defendants drove Rosecroft out of business by encouraging thoroughbred tracks to turn off the signals that allowed Rosecroft, a standardbred track, to air off-site horse races.

Cloverleaf says the thoroughbred industry wanted to make the state's only thoroughbred tracks -- Pimlico Race Course and Laurel Park -- the sole moneymakers from simulcast racing.

The defendants are denying the claims and have filed a motion to dismiss the lawsuit. A bankruptcy judge is set to hear the motion in Maryland District Court on Tuesday.

Simulcasting thoroughbred horse races once accounted for about 95 percent of Rosecroft's revenue, according to the lawsuit. Cloverleaf President Kelley Rogers stopped paying an annual $5.9 million signal fee to the thoroughbred industry in fall 2008 because of falling revenues. He requested a negotiation of the 15-year contract that began in March 2006.

Both sides said no compromise surfaced in the months that followed, and on April 30, 2009 -- days before the Kentucky Derby -- the Maryland Jockey Club cut Rosecroft's signal without warning.

Cloverleaf says the Maryland Jockey Club carefully calculated the timing of the signal cutoff to cripple Rosecroft right before one of the most profitable races of the year.

Alan Foreman, a lawyer representing the horse industry, said the timing was coincidental.

"They created the very situation they are in, so there couldn't be a conspiracy on our side," he said.

Rosecroft was still receiving signals from other out-of-state tracks, but in the days following the dispute, those signals began shutting off as well.

Rosecroft's revenues plummeted and the track closed in July, laying off about 200 employees.

Cloverleaf said the Maryland Jockey Club encouraged other tracks to shut off Rosecroft's signals, pointing to an e-mail the club sent to track owners announcing the signal cutoff. The e-mail ended, "Our horsemen support this initiative."

Former Maryland Racing Commission Chairman John Franzone said thoroughbred horsemen tend to band together during a contract dispute between the two racing industries.

Cloverleaf classifies the mass signal cutoff as a boycott.

"This case presents a classic antitrust claim: A group boycott orchestration to destroy competition in off-track betting and to monopolize a product market," the lawsuit reads.

The Maryland secretary of state is working on a deal to reopen Rosecroft.

hpeterson@washingtonexaminer.com

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Horse Racing Capsules: Hangingonaprayer wins Belmont feature

Posted: 18 Jul 2010 06:26 PM PDT

NEW YORK (AP) — Hangingonaprayer beat Gitchee Goomie by a neck in the $38,000 closing feature at Belmont Park.

New York racing shifts to Saratoga on Friday.

A 5-year-old trained by Carlos Martin, Hangingonaprayer got her fifth win in 21 starts. Edgar Prado was aboard as she ran the six furlongs in 1:08.94 on the firm turf in the allowance for New York-bred fillies and mares on Sunday.

Hangingonaprayer paid $12, $3.90 and $2.70. Gitchee Goomie returned $2.50 and $2.10 as the 4-5 favorite. Pretty Cozzy paid $3 to show.

Out Post narrowly wins Monmouth feature

OCEANPORT, N.J. (AP) — Out Post took the early lead and held off Darjeeling in the stretch to win by a nose in the $82,000 allowance feature at Monmouth Park on Sunday.

Trained by Alan Goldberg and ridden by Elvis Trujillo, the 4-year-old filly covered the roughly 5½ furlongs over a firm turf course in 1:02 3/5 and returned $5.20, $3 and $2.40. It was her third victory in 11 career starts.

Darjeeling paid $4.20 and $3.20, while Forever Grateful was another 1½ lengths back in third and returned $4.80.

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