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Crisis, Danger, and Opportunity - By Stacy V. Bearse

The climate is as bad as I’ve seen in my 19 years with this publication. Racing and breeding, already facing serious challenges going into the recession, now face an even larger and more daunting list of crises. The time to act is now, before Thoroughbred racing retreats to county fair status or goes away altogether.

The majority of our readers have an economic stake in the business, so I don’t need to detail the predicaments we face. Suffice it to say that Thoroughbred racing is on life support. Investment and operating capital have evaporated and the four major sources of replenishment—handle, new-owner investment, racetrack entrepreneurship, and credit—are bone dry.

What can be done? Simple. Make racing fashionable once again, rebuild the fan base, and return racehorse ownership to a proud and profitable venture.

Well, perhaps it’s not so simple. The various associations that shape this industry have chipped away at these objectives for two decades with little success. However, Americans are notoriously fickle and impressionable. There’s no reason why a professionally managed, well-funded, long-term national marketing and public-relations effort couldn’t rekindle America’s love affair with Thoroughbred racing. When I was a kid, we avoided eating pork due to the fear of trichinosis. Today, thanks to a terrific, long-term marketing campaign, pork is the “other white meat,” a healthy alternative to beef.

Of course, properly prepared, pork is a tasty experience. A newcomer’s visit to the typical racetrack is not. But cleaning up the racetrack experience shouldn’t be too difficult. Just look at the vibrant environment already pulsing on the casino side of today’s racino facility.

Can we set a goal of doubling the popularity of the sport? Why not? Alex Waldrop, president and CEO of the National Thoroughbred Racing Association, recently told me there are some 7.4-million core racing fans in the United States. Doubling this number is within the realm of reason and would lead to a surge in handle and a much-needed bump in purses.

And speaking of handle and purses, it’s time for owners to stand up and demand their fair share of the take-out. In the days before simulcasting, tracks and horsemen shared take-out equally. But racing was late to the Internet revolution and allowed crafty offshore hubs to highjack a substantial portion of the wagering pie. Today, third-party bet-takers siphon off unconscionable fees, leaving a pittance for horsemen. The time has come to change the pricing model and more fairly compensate Thoroughbred owners for their financial risks.

Increasing the popularity of the sport and improving financial opportunity would help lure new owners to the game. But we must go further. Although progress has been made since the star-crossed 2008 Kentucky Derby Presented by Yum! Brands (gr. I), many issues of integrity are yet to be resolved. Some problems are chronic; the specter of illicit drugs continues to haunt the backside. Other challenges are looming; past posting is growing more common thanks to our 30-year-old tote-system infrastructure.

The capital provided by Thoroughbred owners is a crucial factor in the survival and growth of our sport. Improving the economic opportunity and taking racing to a new level of popularity and integrity—making it “cool” to own a racehorse—would attract a wave of new owners and interesting personalities to the sport.

Of course, none of this will happen without strong leadership. Decisive, empowered leadership is the key to making any sport prosper and grow. The new sport of “Ultimate Fighting” comes to mind. It has experienced incredible growth because it has a single point of management control. In contrast, racing is out of control. Like a driverless car racing down a mountain road, it careens uncontrollably toward some ugly fate. In the past, we’ve made two half-hearted stabs at supporting a national racing commissioner. Unfortunately, in both cases their organizations spent more time putting out intra-industry fires than exercising the bold leadership so desperately needed.

Shall we give this approach one more try? I confess that I don’t have the answer. But I do know that unless we come together as an industry, our future is bleak. In a 1959 speech, Sen. John F. Kennedy opined that, “When written in Chinese the word ‘crisis’ is composed of two characters. One represents danger, and the other represents opportunity.” The crisis is upon us. We are in danger. Let us seize the opportunity.

Stacy Bearse is president and CEO of Blood-Horse Publications.

58 Comments:

I am surprised that this made print. It is all fact. When was owning a racehorse  ever profitable ??!!

larry 06 Oct 2009 1:40 PM

If the extraordinary campaigns of Rachel Alexandra, Summer Bird, and Sea The Stars failed to rejuvenate the sport, nothing will. Don't count on that movie with the Quarter Horse playing Secretariat.

You have said, "I confess that I don't have the answer." Many fans are saying, "I confess that I don't have the will." I am fed up with the lack of national television coverage of major races.

Soldier Course 06 Oct 2009 3:24 PM

Much of this column could have been written five years ago, what else is new?  And who even cares anymore?  (Apparently not many.)

Alan 06 Oct 2009 4:08 PM

Part of the problem is lack of racing programming on TV. Not all areas get the TVG or HRTV stations. We sure don't in Lancaster, Ohio. I loved those old "Race of the Week" shows with Win Elliott and Tommy Trotter back in the late 50's, early 60's. I learned so much about Thoroughbreds that it became a life-long love of mine. SO IMFORMATIVE !

Now, community/cable network agreements can opt out on showing gambling possibilities based on demographics, etc. We need better programming for racing, use the EXPERTS for commentary instead of talking heads. EDUCATE the public on the beauty of the sport, the intricasies of it, the incentives for ownership - our breeders are offering lots of creative methods across the country. Go back to basics. As you say, go after OPPORTUNITIES!

It amazes me that people who go to the "racinos" available near us in Ohio don't even bother watching the horse races. Slots R Them, I guess. And, as W. T. Young suggested, every part of racing is a gamble. But, I think he'd say it's worth it. No more beautiful sport exists on the face of this earth.

Mary 06 Oct 2009 4:11 PM

I believe that many people do care about the future of horse racing. The first step should be a national commissioner, although horse racing survived in the past without one, albeit a different era.

I wish I had a majic wand, but we better start doing something now before we have no sport.

Nick 06 Oct 2009 7:17 PM

Unfortunately, 38 entities known as "States" currently control racing in America, then come all the alphabet orgs. For the life of me, I can't understand why the racing establishment (powerful owner/breeders, the alphabet soup orgs) disdain Federal help, through beneficial legislation, that could save themselves.

That American racing embraced medication 40 years ago doesn't help in our changing times. It has got to go, if we are to save us from ourselves. Nobody is going to popularize a sport by telecast where beautiful animals die before horrified crowds on national TV today, and especially, in the future.

Dave 06 Oct 2009 8:16 PM

It never has been profitable even for the biggest owners.

Racinos have worked in states like New Mexico and at Oaklawn and LD.

It just depends on how it's managed and truly to me if it's choose between two neighboring states Ohio/Kentucky racing? I'd say Kentucky every time.

The states where it succeeds have a limited number of VLT's and not EVERY person who goes to the track can play them so they do other things, like the simulcast, live racing etc.

WT was a gentleman never to be seen in this game again. We see how quickly Bill Jr bailed out.

Mary, the worst talking heads on TVG ARE the experts. Most of those guys have worked in marketing, track announcing and the one that drives me CRAZY? A former trainer hoorah.

Racing has a problem in that it doesn't appeal to the action craving younger generation. They on the whole don't appreciate the pagentry, history and elegance involved. They don't want to use the brain power to handicap when they can go to Vegas, for the clubs, booze and constant action. That's what happens when you raise a generation on instant gratification and video games.

That is part of the appeal of the VLT's to at least get them to the track and at least pump up the purses for those of us who ARE hanging in there.

Tim G 06 Oct 2009 8:28 PM

WIDE RIGHT! Like Scott Norwood, this article is wide, well wide of the mark. The focus of the industry should be on growing handle. But instead, the owners, track opoeratoirs, and ADW's just fight over who gets more of an ever decreasing pie. The bettor is ignored and taken for granted by all parties. Reducing the takeout is the only way to grow handle but everyone is just too stupid to understand that one fact!

pjleft 06 Oct 2009 8:53 PM

I agree with pjleft the bettor is ignored and taken for granted while each group--tracks, horsemen, etc; care only for their own self-interests. NTRA is supposed to be our "league office" but it has no real authority like MLB, NFL, NBA or NHL. I wish that Alex Waldrop had the authority to knock some heads together and tell the various factions that they had better start looking out for the fans. Without the people who push their money thru the windows, this game will vanish from the national scene.

Bob C 06 Oct 2009 10:53 PM

There is a simple fix for owners and breeders like myself.

It's a three pronged attack at raising revenues for the people that put on the show.

1.  Open up all off track distribution (ADW's, internet, simulcast facilities, etc.) to anyone that wants it and pay them 5% for taking the bet.

2.  Raise all takeout to a flat 30% on all bets.

3.  Split the offtrack takeout 5% for bet taker, 10% for host track, 15% for horsemen.....on track takeout split 12.5% for track and 17.5% for horsemen.

If we can keep betting around the $12 billion mark, that means there will be close to $2 billion available for purses instead of the $600 million we currently have.

I know some people will say handle will decline but I beg to differ.  We are already recovering from the horrendous economic downturn which will increase the already deflated handle.  So basically, new money will easily replace any lost money if there is any.

Barry Irwin said "While the takeout is onerous, it has never stopped a real gambler".  This reaffirms my thoughts that people will still bet on racing because that's just the way the game works.  Even if we are wrong, and handle dips down to 9 million in a worst possible case scenario, under this plan, that still gives us between $1.4 and $1.5 million for purses which is about 2.5 times more than we get now.

Imagine a worst case scenario where our purses are doubled or tripled without slots.  If we can get a slot subsidy on top of this, we can have purses in the same range of Hong Kong which will obviously increase betting astronomically and that will raise purses to levels of which we can only dream of.

CG Dean 07 Oct 2009 3:13 AM

Close some tracks. That would take care of too many races, too many horses, and a watered-down product. Ban medication, then you can expose how breeding for the sales ring has weakened the breed. Limit book sizes. We've created a giant band of marginal broodmares -- what is going to happen to these girls during this recession? PETA loves a good Mexican slaughterhouse video. Stop this piecemeal regulation of the breed. Step up, concede some control to a national czar. Or hey, Jockey Club, you can be a back of rich old guys sitting around talking about the good old days when we had horse racing.

Tiznowbaby 07 Oct 2009 7:51 AM

Stacey, at least you had the moxy to admit that you don't have the answer.  The problem is that there isn't one answer.  Our main problems are self inflicted and don't need money.  Slots mask the issues without leadership.  The simplicity of the answers are astonishingly simple but remain unrecognized by overly commercial mindsets which have no idea 1.why we race and 2. what attracts interest and attendance.  A succession of collectively, serious policy decisions in the 80's and 90's that began the downward spiral.  They gambled with the class, presentation, rules and lost fashion, women, newspapers, TV and self respect.

Horseracing in this country, in some cases, has become a seedy, unnecessary, classless exhibition of meaningless events organized to thwart even the basic elements of handicapping.  Thanks for your comments Stacey

Bob Hope 07 Oct 2009 10:02 AM

The North American Thoroughbred associations might want to study the operations of Phumelela in South Africa.

They own the tracks, the tote, the simulcast, the racing TV, and the training facilities.

Their take out is 24% of total handle, BUT 6% of total handle goes to stakes purses, leaving 18%.

Of this 4.8% is paid in tax, and the remaining 13.2% is for tote expenses and track and training facility maintenance, including an operating profit of one half of one percent.

The result is owners, breeders, tracks, and even the government are all behind the program which has produced a product that is self sustaining, and horses that regularly travel to Europe and Dubai (and come home with the money.)

I do not believe our take out, also 22 to 24%, deterrs the average bettor, and certainly not a newcomer to racing. Not many at the track, or down at the local OTB complain about it.

The problem lies in the distribution of the take out, and only the ADW network can correct it. If they refuse to aid the industry, open up others that will.

VECTISVAN 07 Oct 2009 10:05 AM

You’re right.  We’re no longer an agrarian society.  Horses occupy a special place in the public imagination and it’s not the same place occupied by pigs and cattle.  Racing will NEVER be "fashionable" again, will never appeal to younger fans, until/unless it begins treating horses in accordance with 21st century ideas of how companion animals should be treated.    

Did you read Joe Drape's NY times article about the I Want Revenge lawsuit yesterday?

What a horrifying list of legal medications were given to that horse.  Yet the suit isn't about the medications – its only concern is whether IWR’s lengthy medical history was properly disclosed at the time of his sale to IEAH.

The treatment designed to keep him racing on a bad leg was all perfectly legal, perfectly acceptable.  Is that crazy or what?

Americans are NOT so fickle or impressionable – or STUPID - as you imagine.  Rather, we are all able to read the news and wonder what the hell is wrong with the people inside the sport who allow this stuff to go on.  

Install a Commissioner with STRONG powers.  Clean house.   GET RID OF THE DRUGS - do whatever else is necessary to lower US breakdowns rates.  Stop slaughtering castoffs.  Get rid of rotten trainers who currently violate the rules with virtual impugnity, etc., etc.

Noelle Driscoll 07 Oct 2009 10:26 AM

Well, there is only one way to go but up.  There are cycles in everything.  Horse racing has stood the test of time but the downward graph is cause for concern.  Just about everything may have been tried but I'd keep pushing new buttons with technology which ironically has been a part of the decline from on-track attendance.  The Sport of Kings can come back with passionate leadership in management.

Luckylad 07 Oct 2009 10:27 AM

If you want to totally destroy the sport/industry, follow CG Dean's second suggestion of raising takeout to 30%. Raise prices, people will buy it anyway...time to take Economics 101.

Purses are already at $1.1 billion in the United States (2008 figures), which you'd know if you had bothered to consult the Jockey Club Fact Book.

Patrick 07 Oct 2009 10:43 AM

A perfect example of the industry  not seizing the moment is the show "Jockeys".  A show that has received rave reviews, by the likes of People Magazine and others, "the best reality show ever made".  A show who's following I am sure is not made up of hard core racing fans. A show that offers the perfect opportunity for the industry to promote itself and attract a whole new fan base.  A show that was popular enough to be given a second season and is well on its way to a third.  You would think that the industry would have picked up on this fact in the first season and put together an advertising champagne to capitalize on this for the second season.  You would think the Breeders' Cup would have at least  signed up for a few spots! Yes, I could do without the dramatic falls shown week after week, and the monologue that says every year 2 jockeys die. But if the industry underwrote the program it would be in a position to soften some of this.  If I were king I would devote the majority of funds available towards hiring producers to create programs that could be sold and or given to the likes of Animal Planet, Discovery, etc.  There is a great channel called RFDTV we get on Dish that has great horse related programming. None on Thoroughbreds.  There is a new show being produce that hopefully will be picked up called Vets.  At least that was the working title when they were filming at our farm last winter.  The production crew I spoke with at length were very enthusiastic and open to suggestions. If the industry reviewed and liked what has been produced it should get behind it, underwrite it until it gets a footing and other advertisers sign on. Where would the money come from?  Well, we have been throwing what, $10-$20,000,000 a year at the Breeders' Cup day and have little to show for our investment.  How much are we throwing at the NTRA? At the Jockey Club, and other industry organizations?  The salaries for the top 5 people at the Jockey Club total a reported, $1,637,814, the total compensation package for the president of the Breeders' Cup in 2007 was, $1,082,777, for the NTRA, $426,400, the two top dogs at the CTBA and CTT were paid a combined $463,000. This is public information supplied by the IRS for public review of all non- profit organizations. 9 people were paid with our money over $3,500,000 in 2007 alone!  What does the president of the Jockey Club do for us that justifies being paid over $750,000? Do any of these guys even bother to read these blogs to get a feel for what the people in the street are thinking?  Just about every state has a film commission as a way to generate revenue, jobs and promote itself. As do major corporations. Individual owners of McDonalds don't do their own advertising but pay a promotional fee that is used for national advertising for the good of all.  This is not rocket science, but tried and true.  Perhaps this has been looked at by industry leaders, who ever they are, and found not to lend itself to our industry.  I find that hard to believe but they could at least explain their reasoning. In the mean time Rome will continue to burn.

Horseguy 07 Oct 2009 10:47 AM

I'd like to see the Blood Horse assume some leadership.  For 20 years this magazine has ignored the major problems in the sport.  It shows.

--as others have noted--cease the fighting over the existing pie and create new revenue. be rid of the "get more butts in the seats crowd" and bring in those understanding the internet marketing of gambling.

--the answer on the horse side, instead of increasing purses, which are plenty high at the major tracks, is to impose changes on the trainer system.  Quit licensing those such as Mr. X who injures everything he touches.  Impose minimum training/racing standards that will reduce the injury problem in the sport.  Eliminate the "numbers" trainers that are driving out every owner eventually.

Ratherrapid 07 Oct 2009 11:17 AM

I can not believe that anyone in racing in 2009 would suggest more money come from betting providers and go to owners.

The sport is dying because owners are taking too much from the sport, not too little.  Cater the game to customers not suppliers!!!

Edward C 07 Oct 2009 1:01 PM

If you look at ALL of the failed businesses throughout history, every single one of those failed businesses failed for exactly the same reason:

They failed to address the needs and wants of the customer.

Every successful Fortune 500 company is successful for exactly one reason only:

They are very good at indentifying who their target customer is - and then they make it their mission statement to satisfy the needs and wants of their target customer.

Racing is in trouble because the people making key decisions for racing somehow think that horsemen are racing's target customer.

Nothing could be further from the truth.

THE BETTOR is racing's target customer.

What are the bettor's needs and wants?

Handle keeps shrinking because bettors (collectively) see racing as an unattractive gambling game... compared to poker, blackjack, slots, and sports betting.

Handle will grow if and only if bettors see racing as an attractive gambling game.

How do we make that happen?

1. Lower takeout.

2. No more blackouts of Track Signals on ADW lineups.

3. Get (at least) the appearance of pool integrity by investing in a tote system fast enough to render odds and payoffs in real time.

4. Establish national standards for drugs and ENFORCE those standards. Look to the standards adopted in other parts of the world... Europe, Hong Kong, Australia if you need help...

Fact: Fatalaties per start are substantially lower there than in the US!

Make racing an attractive gambling proposition and you can turn things around.

Keep making it unattractive as a gambling proposition and keep losing players to other forms of gambling that racing hasn't been able to compete with for decades.

Simple as that.

Jeff 07 Oct 2009 1:39 PM

Sorry CG Dean, you can't raise take by 50% without national handle dropping like a rock. If this logic would work why not raise the take to 50% so horsemen could get even more!

In addition you can't capitalize and operate an OTB or racetrack simulcast facility with 5% of handle.

Nice try for an owner/breeder, it's been fun watching your show.

burst-your-bubble 07 Oct 2009 1:51 PM

Patrick,

Maybe if you would of checked, you would realize that only 600 million as I stated comes from wagering.  The rest comes from subsidies.  That will not disappear if we raise takeout to 30%.  Just add the 500 million subsidy money to the 1.5 billion we will now have from wagering and that's 2 billion in purses which is better than 1.1 billion.

Even if we lose customers, those are the numbers.  If we hold even, the numbers are much higher.

So by raising takeout and charging more for our signal, we will be in much better shape than now.

CG Dean 07 Oct 2009 2:02 PM

Racing is not wildly popular in Australia and Japan because they've increased the number of owners - it's because people like the product and it's well-marketed.  Even in the case of supposed 'little guy' owners, horse ownership has always been a hobby for the very wealthy - even your average six-figure income does not make it economically possible, nor would increasing the percentage winning owners get.

Racing is 'fashionable' abroad because it's safer for the horses and because a day out at the track is an event; most US tracks are not fun places to be between races.

Superfecta 07 Oct 2009 2:15 PM

Joe Drape's article in the NY Times on I Want Revenge shows why horse racing has lost favor with the public.  Why, after reading this, would anyone who loves animals want to go to the racetrack?  Why is Jeff Mullins still licensed?  Why are the veterinarians who injected this horse with those "medications" still licensed?  Horse racing is in a death spiral and there is nothing that can be done to save it, sadly.

Jennie 07 Oct 2009 3:30 PM

The owners are bleeding.  Perhaps it is time to reduce what the jockeys are making.  10% seems too much for the time and effort they put in.  5% seems more realistic.  There are plenty of riders who would do it at that level.  Lets face it, what are their alternatives?  Besides, I don't see many of them giving anything back.

Fritz 07 Oct 2009 4:24 PM

No Owners no product. No owners no trainers, no jockeys. Nothing for the people who really DO gamble to gamble ON in racing.

We get a % of the purse and then the jockeys and trainers get a % of that. Purse cuts are happening at EVERY major race track (excluding Saratoga and THAT was based on a formula of ENTRIES and starters of HORSES in races). Stakes are being cut all over and fields are short everywhere.

Tell me do you guys go to your local Walmart and tell them how to run their business? YOU are THEIR customer probably.

We aren't all Sheikh Mohammed, Coolmore, Jess Jackson etc.

WE are NOT the only ones who profit from the takeout with purses. If any of you THINK purses are too high? You obviously have never tried to buy, raise, support or race even ONE of these animals.

Tim G 07 Oct 2009 4:46 PM

CG,

You never wrote $600 million comes from wagering alone (which I would dispute). Your whole logic is completely flawed anyway if you think handle will not decline dramatically with a flat 30% takeout rate, which is 50% higher than the current blended rate. And contrary to your original opinion, this economy is not even close to recovery and perhaps has not even bottomed out yet. As others here have written, people with your mindset need to start thinking about the people who consume your product. Your solution is to charge them more for a product fewer every year seem to want to buy. That isn't smart business.

Patrick 07 Oct 2009 5:09 PM

Raising taking even 1%, let alone raising it to 30% overall, is a sure trip to financial ruin.

As an owner and breeder, you should realize now that product stinks worse than it ever has.  Fields are shrinking, pools are shrinking, and favorites are winning at a higher rate than ever.

For this, you want to raise the price to bet?  Good luck with that inane idea.

Craig 07 Oct 2009 5:39 PM

Great comments. Thanks. I appreicate the feedback. Somehow we have to find a way to restructure the mananagement of the sport to align the interests of all participants: Fans, handicappers, owners, breeders, track investors, etc. Increasing the number of fans, improving the fan experience and attracting new owers are the keys to growth. Without growth, we wither.

Stacy 07 Oct 2009 6:47 PM

Let's face it.  Racing can't compete with casino gaming/internet gaming.  We have too many costs associated with putting on the show.  Our only option is to brand our product to people that love the sport and love betting on the sport.

We need to make racing like Louis Vuitton or Tiffany.  Offer a quality product while charging more for it by raising takeout and giving the ADW's less for their services.  We will still keep our core customers and will be much better off financially as an industry by rasing prices.  

I don't see how anybody can argue if we raise prices and lose some handle but double purses by doing so.

Louis Vuitton and Tiffany can't compete with Wal-Mart pricewise, but they both do a great business and develop customer loyalty by raising prices and offering a better product.  People WANT those products and are driven towards them. Very few WANT racing and are driven to it in it's present form.

Racing should never lower prices.  If LV or Tiffany lowered prices and started selling their products at Wal-Mart, while they might show a spike in sales, they will make less money and will lose their lustre which will in turn make customers not WANT their products any longer.

Raise prices, improve product and they might WANT racing.  Everybody might be shocked.

CG Dean 07 Oct 2009 7:05 PM

VEC said: "I do not believe our take out, also 22 to 24%, deterrs the average bettor, and certainly not a newcomer to racing. Not many at the track, or down at the local OTB complain about it."

**********************************

Again, this misconception keeps on showing up all over the place.

True,most horseplayers don't care about takeout.  Just like slot players don't care about the house edge.  They never complain about it.

However, Vegas started out with a very high edge on slots, but through trial and error they realized that the optimum edge is 8-10%.

This means that if they doubled the edge, they wouldn't get even half the total money bet.

So why is it?  Because customers get blown out to quickly.  They may not even realize why they don't feel like going so much, but they don't.

And when they don't go so much, they are less likely to bring friends, family, neighbors and coworkers with them the odd time to expose them to the slots.

Same is true in horse racing.

Cangamble 07 Oct 2009 7:28 PM

I have a suggestion for the Blood-Horse (and other racing magazines).  Donate a subscription of your magazine to public libraries around the country.  While this would be an expense for your magazine, it would put horse racing more in front of the public, and you just may get subscriptions from people who see the magazine and become interested.  The major racing magazines are leaders of the horse racing industry and should do their part to promote the sport (not just call on others in the industry to do so).

Right now, the only horse racing content in my local library consists of various books on how to beat the races as a gambler.

FourCats 07 Oct 2009 9:08 PM

Start by banning all race day medication.  Make medical records for all horses running available to the media the day after the race.  Hold the vet and the trainer accountable for violations. Make admission free to all race tracks with downsized form also free.

Mr Come on Now 07 Oct 2009 9:29 PM

FourCats:

I like your suggestion about subscriptions. It's worth a try, at least on a limited basis at first. I take my copies of Thoroughbred Times to the doctor's office after I read them, but nobody's getting my copies of The Blood-Horse!

Soldier Course 07 Oct 2009 9:58 PM

Admittedly I really don't know anything about the ownership of the Tracks and their Investors, but...

Maybe the Tracks and the Track Investors should start buying up some of the OTB's and ADW Companies ???

Sort of buying back our own business, thereby keeping the ownership of our business all Internal ???

CRob87 07 Oct 2009 10:02 PM

Bob C: Raise takeout to 30%? Why stop there? Why not 50%? Maybe 60% will cure all the ills of the industry.

How about the industry asks the HORSEPLAYER for answers. After all, we are the ones fueling the entire industry, and the reason the industry is in such a clusterfk is because horseplayers are tired of getting screwed by high takeout, breakage, fake tracks, and cheating trainers and are leaving the game in droves. Those of us that remain are wagering far less than we used to. (Some of that forced by these idiotic ADW signal wars.

I don't feel sorry for anyone in the industry. You brought this one on yourselves by burying you head in the sand the past two decades.

The only solution the industry seems to have is tax the horseplayer more and give out bobbleheads. Pathetic.

And Cangamble, who the heck still goes to the library!...LOL..

MikeD 07 Oct 2009 10:59 PM

The NFL, NBA, MLB, etc has no betting.  So why can't horse racing get sponsorship?  Sell the signals to TV and advertisers.  Not just one track but three or four at a time.  So every three or five minutes there is a race.  Tell a story about a horse, an owner, trainer, groom, hotwalker, vet, blacksmith, dentist, etc.  Ever been to a backstretch, we are colorful people.  People talk about the risk horses take, look at the peoples' risk.  I saw a groom get kicked in the head, sent in midair to the wall, and slide down.  Knocked out.  By the way, he was back to work in two weeks.  Most of you would be out for three months.  You wake up in the morning, you take risks.  Stop thinking horseracing has no risk.  

Scott 08 Oct 2009 12:09 AM

Racing flourished when the flat takeout rate was 10-15% and the product was seasonal. It's no coincidence that it has declined as the price of wagering and the amount of product increased to levels the market refused to bear. The industry drove people to purchase substitute goods (e.g. casino gaming) with their pricing plan and I can't believe anyone can think that people who wager are not price sensitive over the long term. The industry's own history proves it.

The problem with the LV and Tiffany analogy is that part of the reason they can charge more for their products is because they are scarce goods. Racing isn't, last I checked. The contraction of or reduction in supply of the product is anathema to every owner or breeder who favors more subsidies (i.e. slots), or at least the ones who tend to make comments on message boards such as these.

Patrick 08 Oct 2009 12:43 AM

Raising takeout to a 30% avg is a joke.Just look at the pick-4's and other multi race bets that guarantee a small takeout and a minimum $25k pool.Those who have small takeout outhandle the minimum pool guarantees.Pocono harness with a $25K guarantee p7 cannot get over $2k bet into it on a nightly basis.Why ? Cuz they turned off all the bettors with their over 30% takeout on exotics.

MichaelM. 08 Oct 2009 1:03 AM

Stacy,

Race tracks are also struggling  as witnessed by the closures. If tracks offer more of their takeout to purses how do they survive?

I believe less racing, three or four days a week could offer larger purses and bigger fields.

Less is more, look at Keeneland. Two 20 days meets a year and it becomes an event or happening.

Now Saratoga adds four days, go fugure.

Racing 08 Oct 2009 8:28 AM

"Racing" ... you are right on the mark. I visited Penn National this summer and learned that it races 210 days. I believe that Philly Park runs 300 days or so. There are simply not enough good horses - or dedicated fans - to support this schedule. Several years ago I visited Japan, where JRA races are held on Saturdays and Sundays. I was at the track on a Saturday, along with 40,000 other fans (!).

Stacy 08 Oct 2009 9:49 AM

face it, all of you that are damning CG are HANA boys.  Your push to get take out lowered have just as good a chance as CG's increase.  CG makes a good point, albeit the raising would send you boys to Bingo.  The better the purses the better the horses.  The better the purses the bigger the fields.  I for one have been on the recieving side of the HANA raiders more than once in different blogs.  They continually banter Economics 101.  Well, if not mistaken in that same text they discuss risk reward ratio's and ROI.  The latter will skew in favor much higher with full fields than lower take out.  The answer is cut back on the fees, NTRA, TRPB.  They have proven lame.  A money suck.  Eliminate the middle men (ADWs).  Let the public bet on line direct with the host track.  Simple right?  Not when the tracks hoard the players to their own ADWs.  HANA I applaud your efforts, unfortunately you are not a strong enough lobby.  Horsemen you are.  By the way where is THG these days?  Made a big splash, screwed the handle for a few months and then poof, gone like a genie.  Time for a new THG headed by some one that can get something done for everyone.

Jeff 08 Oct 2009 10:01 AM

Stacy

You surely pushed all the right buttons, as the range of your comments suggest. There are so many good ideas presented. However, the sad thing is how "fractured" our sport/industry is. We have to break away from a segment-by-segment win/lose thinking. We have to come together with one voice if we have any chance to solve the problem. Can you imagine if the 28 million fans (projected by some) to the 7 million core fans projected by NTRA came together, regardless of stake in the industry, what a collective thinking capacity and voice we would have. Its worth a try. Check out www.thorofan.com

Michael 08 Oct 2009 12:32 PM

Jeff, Philly Park and Woodbine have real nice purses.  They also attract pretty good field size.

How is handle working out for them?

High takeout kills the player whether they know what takeout is or not.

Cangamble 08 Oct 2009 2:49 PM

I was directed here through a link at a racing forum.  I had not read the Bloodhorse in quite some time prior to this blog and the accompanying comments.  After reading some of the comments from an owner/breeder and Stacy, I now know why I stopped reading this publication many years ago.  

Sadly, you both have a severe lack of understanding of the horseplayer - the person that FUNDS the game.

It'd be great if Owners, Racetracks, Horsemen, and Bettors could all work together rather than be so fragmented.  Problem is, the 1st 3 groups have a complete disregard for the last group.  Without that last group, there's no game.  Wake up before it's too late which is coming sooner rather than later.

Mike 08 Oct 2009 4:37 PM

Stacy, I think if you will check again, the day you were at the track in Japan, there was 100,000 not 40,000.

the most important guy there is the guy who opens the gates in the morning.  Japan is the premier operation in the world and with NO slots and NO claiming races.  it is a class act that offers pure entertainment!

Bob Hope 09 Oct 2009 6:49 AM

The person that suggested 30% takeout, must be the dumbest person to ever follow horse racing. Why do you think Hialeah went under? Takeout over 15%, you better be a very good handicapper and make only 2 or 3 bets per day. Lower the takeout to 10% and close several dozen tracks. Maryland raised the takeout and they have no clue why people stopped betting their races. The tracks need to compete against each other. Let Walmart buy a few tracks and see what happens. We all have hundreds of valid suggestions. Do you think any of these racetrack execs ever went to a similcast to bet their races. These people should not have their positions. At least show me the betting pools a few times and give me a good look at the horse. How many times have you seen the 12 horse's ass for 2 seconds. I'm talking NY racing, fire the camera man. STOP betting the tracks that need to go under.

Eric in St Pete 09 Oct 2009 9:24 PM

Horse racing is dying; what a downward spiral from the most popular spectator sport in the country to this.  Wake up people!  Look at NASCAR the NBA and the NFL: marketing, marketing and more marketing.  There are towns that have racetracks in them that people don't even know that they exist.  Newspapers have abandoned horseracing and the sickness of medications is out of control. Horsemen from all areas need to come together; yes this means talking to and working with those that race Quarter Horses, Standardbreds,Paints and  Arabs because thay are all linked together.  Create within people the desire to want to come to the track.  How? Make the track inviting and family friendly; don't have racetracks have horseparks with a racetrack. Focus and make stars out of the Jockeys people can root not only for the horse but also the person that risks their life to ride them.  Perhaps these suggestions will be looked with derision and the mentality of "that's not the way it's done" but when the sport goes the way of the dodo and is relegated to just a few states and a handful of fans perhaps the powers that be will rethink the game, but by then it will be too late.  

doc 10 Oct 2009 12:37 AM

Hours of operation need to be considered.At most tracks post is at one in the afternoon.A near impossible task to anyone with a regular job.No matter how good your product if they cant get there it is pointless.Retired people have afternoons to themselves and are on a fixed income.Not your ideal customer.

Big Al 10 Oct 2009 6:55 AM

It comes down CONFIDENCE and CREDIBILITY. They are both fading away from racing. Just take a look at the last two Kentucky Derbies. In 2008 we had Big Brown whose trainer has an outrageous record of drug infractions. And in 2009 the pre-race favorite was I Want Revenge trained by Jeff Mullins!

The Derby is the race millions want to watch. It is the "face" of racing. The last two races have harmed the credibility of racing. How can the average fan have any confidence in a sport that allows the "cheats" to go unpunished? Why are trainers allowed to continue despite numerous drug violations?

Clean up the mess! If something isn't done, this sport will be reduced t a very minor player in the world of sports.

wista 10 Oct 2009 11:03 AM

Lets Face Facts , this is 2009 there is some kind of gambling in almost every state , Games were You can  put up $2 or $3 or $5 and instantly Win Hunderds or maybe Thousands , Look I remember when the ONLY legalized gambling was HORSE RACING or VEGAS Most people didnt have the money or inclination to go to Vegas I was 37 Before I ever went there been there over a 100 times now in the last 42 years. Years ago Id go out to The Track on any weekend and there were maybe 40K to 50K people , you'd stand in line for 15-20 minutes to bet at the $2 window . But people did it BECAUSE mainly it was the Only game in town ! Now people have dozens of options they dont even have to leave home To Gamble on the Internet . I know I do it almost every day ! On Horse Racing  lol  Most of my friends who were Big horse racing fans are dead or in nursing Homes.  My Younger family and friends have NO interest in the game , I v taken many over the years to the track , tried to get them interested , Showed them some basic handicapping , Ive even picked them winners , Take them to the Paddock  ,The reponse is pretty much the same the Horses are Pretty , then after a hour or two its "well how long does this last" :( I love the game , I love the WHOLE DARN THING , I Used to spend my spring vacations in Kentucky now Im too dam old to do that , You can talk about Commissioners and all that Crap , NTRA  and such it wont help  I do believe the  Breeder's Cup bought racing another 20 years , when it started in 1984 , then the Shieks got Us through the late 90s and early 2000s.  Racing's Time has past  Im sorry to say , Look at NASCAR to me its just noise but Millions Love it why ?? Because its exciting , noisy , a Party , theres NOT even any gambling involved for the average fan its a NO Brainer kind of activity , and maybe some cars will smash up :(

Im so lucky I lived through Horse Racing Glory Days 30s through 80s

And it was GLORIOUS TOO ! So Lets not kids our selves the sport we all love will just be a quaint memory in 15 or 20 years at most Id say , and I take NO Pleasure in saying that ! So enjoy it NOW theres soo much You can do today you couldnt years ago with the internet and things  CRAM a Life time of Great racing Memories in the next 15 years,,  better to have those then to Never have known the Love of the Greatest Sport there ever was  !

Racer 10 Oct 2009 11:52 PM

Quarter Horse people have it figured out...youth, "America's Family Horse", futurities, reining, racing...

Involve more people with the breed by expanding its base...bring it back as "America's Hunter Jumper"...not America's number one throwaway.

da3hoss 11 Oct 2009 9:15 AM

One question regarding some of the infamous trainers: why do owners keep sending horses to these people? Ignorance? Apathy? A desire to get the horse to big races and a 'damn the torpedoes, full speed ahead!' mentality?

Dawn 11 Oct 2009 11:11 PM

THE current TAKEOUT IS 50%

www.clockerbob.com/chapter8.html

Horse racing has a return of around 50% after a patron is roughed up for parking, admission, racing program, clockers, chartman, writers, handicappers, NTRA, stewards, individual tracks' hand-picked testing labs, racing mafia shake, federal take, the state's cut and mis-information. More of the days net winnings leaves through the informationally privileged owner-trainer-jockey parking lot (e.g.Valhol's Arkansas Derby, Cielo Canosa maiden win 8/13 at Del Mar) than the general parking lots in horse racing. In comparison, 100% of the days net winnings leaves through the slot patron's free parking lots.

clockerbob 12 Oct 2009 12:36 PM

Soldier Course nailed it; my interest in racing drops in proportion to televised coverage.  I thought claims that the Breeders' Cup-ESPN partnership would build ratings ( as the full force of ESPN was put behind the cup buildup) dubious at best.  That insertion of Zenyatta during Saturday's boring football wrap-up was pathetic.  In the days of Chris Lincoln, even the Maryland Million was on ESPN.  These "marketers" employed by the B Cup, who come and go, have decimated the sport.  As they leave to assume other corporate positions, I can almost hear their relief that they will never have to attend another race again.  YET I must admit that during the few televised races this summer into fall, I look away during the stretch run, expecting disaster.  Hear that trainer, owners, vets and track officials?  For the first time in years I did not attend that Belmont Stakes, and all respect to the Birds, to my surprise really didn't miss it.

joe 12 Oct 2009 6:53 PM

I have been at this game for over 30yrs. Going to the races and gambling on them was the mainstay of the business and most of the racing was seasonal.  Then came simulcasting.  Racing overload,how often do you seen 6-8 races go off at the same time?  How do we expect the "customer" to focus on anyone one experience?  It's time to control the number of races per day and the amount of races per hour.  If we raced every 10 min we could maximize the amount of wagering dollar.

Also, it time to look at the breeders awards. We need to get more money into racing not breeding. How many horses that sell for over 100K even make back there initial investement?  You want to bring new money in to the sport- stop taking the old money out of the sport.

nosedout 13 Oct 2009 5:58 PM

In my opinion, when we bring friends to the racetrack, we should focus on Win betting only.  Exotics do nothing but skim money from beginners, and they quickly get discouraged when they lose $5 four races in a row.  Teach your friends how to spot a winner before you throw them into the lake of the Superfecta.  Teach them money management so they leave the track a winner the first day -- and they will always remember that wonderful first time.  Tracks have been disrespecting the $2 bettor for 20 years now, but that $2 bettor today may turn into an every-day visitor when he retires.  It's all about making the track a fun place to go.  That also means that the horses have to survive the race.  The coming steroid-free era should help with that.  It doesn't matter how much fun a person has if they watch a snapped-off leg flop around in front of the grandstand.  Every fatal injury chips off another small amount of fans.  Don't let it be your horse that causes another fan to turn away, if for no other reason than it causes a dip in the handle.

Sandra Warren 20 Oct 2009 5:26 PM

Sandra - good advice. I like to show people how to read the program, etc, but I don't tell them who to bet. People are much more likely to get hooked if they win with their pick rather than yours. And, if they picked it because of the name or the silks, so what.

Vespone 20 Oct 2009 8:05 PM

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