Butch Lehr - the Churchill Downs racetrack superintendent in profile

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(European Trainer - issue 31 - Autumn 2010)

The English Voice of the Kentucky Derby - Mark Johnson

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(European Trainer - issue 30 - Summer 2010)

Mark Johnson - The English Voice of the Kentucky Derby

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Geir Stabell (14 April 2010 - Issue Number: 16)

Butch Lehr - Churchill Downs's track superintendent

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(08 April 2009 - Issue Number: 12)

Backstretch Welfare Programs

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Ken Snyder (08 April 2009 - Issue Number: 12)

Kentucky Downs - America's only European-style turf course

By Ken Snyder

Working as a groom between his junior and senior years in college, Corey Johnsen wagered his entire week's salary on a horse in his care in hopes of earning his second-semester tuition. Decades later, Johnsen, now president and part owner of Kentucky Downs in Franklin, Kentucky, gambles on the success of a turf-only course accommodating shippers-only with just a six-day annual race meet. Will it be a winner? If uniqueness were a guarantee of success, Kentucky Downs, hard by the Tennessee border, would be a huge overlay. It is billed as the nation's only European-style turf course but General Manager John Goodman modifies this slightly and perhaps best expresses its essence: "It's English racing meets the county fair."

Only the whine from tractor trailer tires on nearby Interstate 65 disturb a pastoral setting that might surpass the most scenic track in Ireland. There is no tote board in the infield, and the "grandstands" are the balcony on the two-story clubhouse and two well-weathered bleacher sections at the finish line that look as if they have been imported from the nearest football field. The large clubhouse, with tall palladium windows and white columns at entrances fore and aft, is Southern Colonial meets Belmont Park minus the ivy.

There is also a touch you won't find at a county fair: The jockeys' quarters are in a doublewide trailer, the kind likely to be found throughout a rural Kentucky far removed from the plank-fenced splendor of Bluegrass horse farms to the north. Taken together, Kentucky Downs is a delight, a jewel in comparison to big-city "race factories," and a total surprise among the chain restaurants and motels that are the obligatory fixtures at the Franklin interstate exit and seemingly all others in America.
Johnsen and ownership partner Ray Reid, a Texas investment banker, bought the track in August of 2007, gaining an 85% controlling interest from former owners Churchill Downs, Turfway Park and Kelley Farms. (Each of these entities retained a 5% ownership in the track.) They are proceeding with renovations and other changes as if the odds are far better than the 8-1 that Johnsen got on Hi Ho Dash many summers ago at Centennial Park in Denver.

The path to Franklin and ownership of Kentucky Downs is a long one for both Johnsen and Reid. For Reid it began in his college days, also. While at the University of Pennsylvania, he roomed with a member of the Hanover family of harness racing fame and became interested in racing. Perhaps not surprisingly, given that he was a student in Penn's Wharton School of Business, his interest specifically was in racetrack ownership.
Ownership of horses in partnership with Johnsen preceded Reid asking his partner to create a list of five tracks that might be in play for possible purchase. Kentucky Downs was on the list.

For Johnsen, his position is the latest in what has been a career lifetime at racetracks. From groom, he progressed to the grandstand side, working seasonal jobs first at Turf Paradise in Phoenix then at Arlington Park in the marketing and publicity department. "I was director of media relations for the inaugural Arlington Million," he said.
His first year-round job was at Louisiana Downs before becoming part of the management team that developed Remington Park. He moved from there in 1994 to help develop Lone Star Park in Arlington, Texas before leaving for the presidency and part ownership of Kentucky Downs. Additionally, he helped with the reopening in 1999 of Hipódromo de las Americas in Mexico City and Hipódromo Nacional de Maroñas in Uruguay a few years after that.

Perhaps reflecting his experience in developing tracks from the ground up like Remington and Lone Star, Johnsen's first priority at Kentucky Downs was, quite literally, the ground; and renovation of the turf course.

"I feel that a racetrack surface is the foundation to the success of any track," he said. In November, after Kentucky Downs' six-day September meet, Game Day, a company that maintains several different kinds of athletic fields throughout Kentucky, renovated the turf course. Game Day mowed the mile-and-five-sixteenths course down to the base, aerated it, seeded it with a specialty seed, and then top-dressed the turf with fine sand. Improvements followed in the clubhouse. A new sports bar opened and a chef was brought in from the Hyatt Regency hotel organization to add appeal to non-racing fans in the area looking for a night out. Significant, too, the track gained a liquor license last year.
With things seemingly in place for the new owners, the question is how can the track build on last year's second-highest on-track handle in history, $444,601, and a $9,618,208 all-sources handle that was 21% over 2006 numbers?

With only a six-day September meet that, while obviously brief, culminates in a $500,000 Kentucky Cup Turf Festival, the possibilities might seem limited. It is, however, the inactivity of Kentucky Downs, aside from six-day-a-week simulcast racing, that creates potential, according to Johnsen.
Future plans call for a regional horse center on the grounds--a "Kentucky Horse Park South," as Johnsen refers to it, or a counterpart to the real Kentucky Horse Park in Lexington that is a center for equine events for all breeds. "We have 250 stalls that sit empty 50 weeks every year. Why not utilize that infrastructure for horse shows, events, auctions, and those types of things?" Johnsen said

Steeplechasing is also a natural for Kentucky Downs and not just because of the gently undulating turf course. Nashville, barely 45 miles away, annually hosts the biggest steeplechase race in the country every year, attracting between thirty and fifty thousand people every May. "The event is a fund-raiser for a local hospital down there," Johnsen said. "What we want to do is tie in to that same hospital with a fall event."

Johnsen also foresees a time when his track would be in line to host the Breeders' Cup Steeplechase as well as turf races that would serve as strong prep races for the main Breeders' Cup event.

The foundation for the plans would seem to be solid. In addition to good numbers from last year, Kentucky Downs attracts top horsemen. Todd Pletcher sent out Kentucky Cup Ladies Turf winner Quiet Royal and won three other races during the meet. Calvin Borel, rider of ‘07 Kentucky Derby Winner Street Sense, also came down to ride the final three days of the meet. In addition, Jeremy Rose, regular rider of 2005 Preakness and Belmont winner Afleet Alex, piloted the Grade III, $200,000 Kentucky Cup Turf winner, General Jumbo, to victory last year. Indicative, too, of the niche carved by the racetrack with Kentucky horsemen is field size: Over nine starters on average went to the post per race last year.
David Carroll, Churchill Downs-based trainer and conditioner of Derby third and Belmont second show-finisher Denis of Cork, is an unabashed fan of Kentucky Downs. "We've never had a problem with a horse there coming back," he said. "It's a fun place to go and I love going down there."

He does acknowledge that some trainers are concerned for the safety of their horses because of the gently rolling surface but believes concerns are misplaced. "What I find is that it is not so much the horses that don't handle it, but the riders," he said.

Jockey James Graham, also an Irishman who has ridden at Kentucky Downs, seconds Carroll. "You're best off walking the course before you ride it.
"Believe me, it's not a course you can ride like you ride every day," Graham added
.
A false straight on the kidney-shaped course's far turn has caused riding mistakes, according to Carroll. "You turn and you've got another turn too, and that's where a lot of jockeys get caught out and move too soon," he said.

With improvements, success, and acceptance by horsemen, a move to more race dates would seem obvious, but there are obstacles. First and foremost, a commission structure unique to Kentucky hampers purses at Kentucky Downs. "It calls for 50% of the commission earned on simulcast wagering at Kentucky Downs to go to the host track in Kentucky that is running at the time," explained Johnsen. Basically, half of what could go into purses or association expenses at Kentucky Downs goes to Ellis Park, Churchill Downs, Keeneland or Turfway Park.

Kentucky Downs must also weather something already experienced by Turfway Park and Ellis Park especially in Kentucky: trainers leaving the state for bigger purses at casino-supplemented tracks or racinos. Presque Isle in Pennsylvania, specifically, has already caused problems for Kentucky Downs.
"We had trainers who had run many horses with us in the past who have actually moved their Kentucky division to Presque Isle," acknowledged Johnsen.
"I can't blame them. They're running for $500,000 a day and we run for about $200,000."

Any purse total below that, according to Johnsen, would take away from Kentucky Downs. "You drop below that and I think the quality of our race meet decreases dramatically and thus the handle decreases and you head into a negative spiral.

"What we've found out is our year-round simulcast efforts and our on-track live handle for our race meet supports about six days of racing. If we wanted to do 10 days, then all of a sudden your purses drop significantly and then you don't get the horses.

"I think we've found a nice niche that has a limited effect on other tracks in the state, if there's any effect at all. At the same time we're an additive to the racing industry here by helping Kentucky benefit from the Nashville market." Penetration of that market, a tantalizingly short drive away, is a key objective but one contingent on increased purses and the bigger handle that would come with them. Casino gaming at Kentucky tracks, according to Johnsen, could increase purses and fund the kind of marketing efforts that Johnsen oversaw at Lone Star Park in the Dallas-Fort Worth area.

This year the Kentucky legislature thwarted new governor Steve Beshear's push for casino gambling that would have brought slot machines to Kentucky Downs. Despite the defeat, Johnsen believes casino gambling at Kentucky racetracks in one form or another is inevitable. "We going to have fun without gaming and then, when we can supplement our purses, it'll be tremendous," he said.

Others without a stake in the success of Kentucky Downs echo a sunny outlook for the racecourse. Sports writer Michael Compton, who has covered Kentucky Downs racing for several years for Bowling Green's Park City News, believes the racetrack is "the little engine that could." Of the new owners he said, "You get the sense that they definitely are thinking about the future and have some nice ideas." Already, according to Compton, they've piqued interest in the area beyond racing fans with restaurant improvements and the liquor license.

The location, too, despite the small size of Franklin (population 8,000, approximately) is a plus. "Franklin, Kentucky used to be a sleepy little town, but now every month it seems there's an announcement about a new distribution center or a new manufacturing plant," Johnsen said. In short, the Nashville-Bowling Green, Kentucky corridor is growing, Johnsen observed, and he even sees some parallels between it and growth of San Antonio and Austin in Texas.

Johnsen would hope that there are similarities between his bet on Hi Ho Dash while a college student and his investment with Reid in Kentucky Downs.
With a knowing smile he recounted how he came to bet his week's wages- "$82 take home"-which he put on the horse. "Hi Ho came to us from California and the owner insisted he be run right away and ran horribly because of the climate and altitude," Johnsen said. "Three weeks later, he was acclimated and I knew he was ready." He won going away. "My tuition was $620, so I basically won it in my bet."

Inside knowledge might not be at work with Kentucky Downs but the improvements, strategy, and ownership seem to be in place. Johnsen is, after all, the same man who while president at Lone Star, snared the ‘04 Breeders' Cup from more established tracks. Continued and long-term success might not be nearly the surprise for industry observers as it would be for those venturing off Exit #2 - Franklin to discover Kentucky Downs. 

From Synthetic prep race to the Kentucky Derby dirt

By Bill Heller

Street Sense’s dramatic, decisive victory in last year’s Kentucky Derby restructured a lot of perceptions about winning the Run for the Roses. Not only could a Breeders'Cup Juvenile winner return the following spring to capture the first leg of the Triple Crown, but he could make his final prep for Churchill Downs' dirt track on a synthetic one.

Street Sense wasn’t alone in switching from synthetic to dirt. Six Derby starters last year had their final preps on synthetic surfaces: the top five finishers in the Blue Grass Stakes on Keeneland’s Polytrack - Dominican, Street Sense, Zanjero, Teuflesberg and Great Hunter - as well as Hard Spun, who won the Lane’s End Stakes on Turfway Park’s Polytrack.

Trainer Carl Nafzger had no reservations about using Polytrack as Street Sense’s springboard to the Derby because he’d done exactly that the year before when Street Sense followed a third in the Lane’s End Breeders'Futurity at Keeneland with a resounding 10-length victory in the Breeders'Cup Juvenile at Churchill Downs.

Nafzger, however, said he would not have used the Blue Grass as Street Sense’s final Derby prep if Street Sense hadn’t already raced on dirt. "Even if he had worked on dirt, there’s a lot of difference between working and running,"Nafzger said. "I would definitely want to see my horse in a dirt race first. I don’t care if it was an allowance race; I’d want to see him in a race.”

Sedgefield did not have that luxury, finishing fifth last year as the first North American-based starter since at least 1955 to run in the Kentucky Derby without a previous dirt race.
He won’t be the last.

In mid-March, it appeared that at least three of California’s top Kentucky Derby prospects – Colonel John and El Gato Malo, the 1-2 finishers in the Sham Stakes, and San Vicente and San Felipe victor Georgie Boy – will also be making their first dirt start at Churchill Downs on the first Saturday of May.
"I don’t think it’s going to be a problem for the California horses,"said Darrin Miller, who trains both Sedgefield and Dominican. "I don’t think it’s a disadvantage at all.”

Obviously, the California trainers of those three Derby hopefuls – whose final race before the Derby figures to be the Santa Anita Derby – agree, as will other trainers who use the Blue Grass or the Lane’s End for their horses' final Derby prep.

"My concern is just getting to the race,"El Gato Malo’s trainer Craig Dollase said laughing. "That’s the objective of the synthetic track. The whole point is to keep your horse sound. We just want a healthy, sound horse going into the first Saturday of May. So be it if it’s on dirt.”

That’s the approach Miller took with Sedgefield. The 36-year-old native of Verona, Missouri, began training at Canterbury Park in Minnesota in 1995, and splits his year between Florida and Kentucky. He did an admirable job of getting both Sedgefield and Dominican to the Derby for Tommy and Bonnie Hamilton’s Silverton Hill Farm in Springfield, Kentucky.

Silverton Hill purchased Sedgefield, who is a full brother to 2007 Turf Champion English Channel, for $300,000 at Keeneland’s Two-Year-Olds-In-Training Sale in April, 2006. A month earlier, the Hamiltons purchased Dominican at the Ocala Two-Year-Olds-In-Training Sale for $150,000.

Sedgefield began his career late in his two-year-old season, finishing seventh on Polytrack at Keeneland on October 27, 2006. After running fifth on grass at Churchill Downs, he won a maiden race easily on Turfway Park’s Polytrack.

Miller asked a lot of Sedgefield in his next start, the Grade 3 Tropical Park Derby at Calder on grass, and Sedgefield fought it out on the lead the whole way, finishing second by three-quarters of a length to Soldier Dancer. "After the Tropical Park Derby, we decided that the Kentucky Derby was an option for him," Miller said. "The plan was this: we run in the Hallandale Beach (on grass) and the Lane’s End.”

First, though, Miller gave Sedgefield a confidence builder. Dropped to allowance company on grass at Gulfstream Park, Sedgefield won handily. Then, in the Hallandale Beach, Sedgefield again displayed his grittiness, finishing second by half a length to Twilight Meteor despite breaking from the 10 post. Sedgefield drew even worse in the Lane’s End: the outside post in a field of 12. Regardless, he finished second by 3 ½ lengths to Hard Spun.

Trainer Larry Jones chose not to give Hard Spun another race before the Kentucky Derby because Hard Spun’s graded stakes earnings were already enough to ensure he’d start in the Derby. Sedgefield’s weren’t.
So Miller, after considering the Blue Grass Stakes, sent Sedgefield back to turf instead in the Grade 3 Transylvania at Keeneland just 13 days after the Lane’s End. Sedgefield again battled on the lead, but this time he tired late to fourth as the 7-5 favorite. 

"I messed up,"Miller said. "I raced him back too quick. It seemed like the right thing to do at the time. We thought it was an easy spot and it would give him the earnings he needed. We were right on the cusp there.”
With the fourth-place finish, though, Sedgefield did have enough earnings to break into the Derby field of 20. And Miller wasn’t worried about the switch to dirt. "He’d been on dirt as a two-year-old,"Miller said. "We didn’t see dirt as a problem for him at all.”

To prepare him for his first dirt race, Miller, who was stabled at Keeneland, worked Sedgefield four furlongs twice at Churchill Downs. Sedgefield breezed in: 49 (15th fastest of 35) 13 days before the Derby and in :48 2/5 (11th of 52) four days before. "After the first week, we moved the two horses to Churchill Downs,"Miller said. "He trained really well when he went there. He really stepped up to the plate. He was doing everything right. Then we had a lot of rain that week. He relished it. He trained very well on it.”

Dominican, who had two thirds from four previous races on dirt, including a fourth in an allowance race and a third in a Grade 2 stakes at Churchill Downs, worked just once after his gutsy victory in the Blue Grass. Five days before the Derby, Dominican breezed a bullet five furlongs in :59 2/5, fastest of 26 that morning.
Miller had both Sedgefield and Dominican primed for top efforts, but their preparation was seriously compromised the morning the selection order for post positions was drawn for the 20 Derby starters. "Our picks were 17th and 19th,"Miller said. "It was a pretty bad go. It left us in a pretty tough spot."Miller chose the rail for Sedgefield and the 19 post for Dominican, who finished 11th after a rough trip. The lack of a previous dirt start didn’t impact Sedgefield, who was dispatched at 58-1 from the highly disadvantageous rail.

Forwardly placed from the outset under Julien Leparoux, Sedgefield worked his way up to second midway through the mile-and-a-quarter classic. "I was just hoping he’d keep coming,"said Miller, who had never started a horse in the Derby before. Sedgefield tired late to fifth, nine lengths behind Street Sense, but just a length off third-place finisher Curlin, who subsequently was Horse of the Year and Three-Year-Old Champion.
Miller was proud of Sedgefield’s effort: "He gave us everything that day. He put it all out there.”

Some 10 months later, Miller said of his first experience in the Kentucky Derby: "It’s life-changing, for sure. It’s certainly a special opportunity and I’m grateful for it. It makes you want to do it again, searching for the next one."

Colonel John’s trainer, Eoin Harty, knows the feeling – kind of. The 45-year-old native of Dublin, who began his career as an assistant trainer for John Russell, was an assistant to trainer Bob Baffert when he nearly won three consecutive Kentucky Derbies. Cavonnier lost the ’96 Derby by a nose to Grindstone, then Silver Charm and Real Quiet took back-to-back Derbies. "It’s going to be my name on the program this time,"Harty said. "I’m going to bear full responsibility for the action of myself and my horse.”

He is perfectly comfortable with his decision to not give Colonel John a dirt start prior to the Derby. "I won’t because I’m a firm believer in training on synthetic courses,"Harty said. "I just think they’re so much kinder to the horse. You avoid the constant pounding, the bone on bone. The carnage rate of horses [on dirt] is unacceptable.”

Harty has had success training his horses on synthetic surfaces and then racing them on dirt. "From my own experience, I had a very good year at Churchill Downs last year, and my horses had worked on synthetic,"he said. "I did it with quite a few. I brought horses over [from Keeneland] the morning of the race at Churchill Downs, and that was it. It’s better for your horse. They stay sounder. If they’re sounder, they’re around to race longer and it’s good for the sport.”

Harty says he’s frequently asked about the difference between training horses on dirt vs. synthetic surfaces. "These are my opinions; they’re not facts,"he said. "From my own experience and from watching other trainers training on synthetic tracks, I wouldn’t say that training on synthetic is an advantage, but it gives a horse a different level of fitness. Every horse I’ve worked on a synthetic track who had been training on a dirt track, the first work is terrible. The second and the third are better. When I was at Santa Anita before they put in the synthetic track, and took them to Hollywood on synthetic for the first time, the horses seemed to be at a major disadvantage. When you look at synthetic tracks, they don’t have to work as hard to cover ground.”
Colonel John has been covering ground just fine on synthetic tracks. His victory in the Sham Stakes was his third in five starts. He was second in the other two races, one of them a Grade 1 stakes.

If he goes into the starting gate at Churchill Downs on the first Saturday of May, it will be his first dirt race, but not be his first time on dirt. "I’ll probably work him and gallop him at Churchill Downs,"Harty said. "It probably won’t hurt.”

Like Harty, Dollase, whose El Gato Malo had won his first three starts, including the Grade 3 San Rafael Stakes, before finishing second in the Sham, will also work his horse on Churchill Downs'dirt track before he starts in the Derby. Dollase’s only previous Derby starter, Wilko, finished sixth in 2005.

"My routine is usually to get a work over the track,"said the 37-year-old Dollase. Unlike Harty, Dollase has a different opinion regarding training on synthetic vs. dirt tracks. "I think you get a lot more fitness out of the synthetic,"he said. "You have to work harder. I used to train at Hollywood Park when it was the only cushion track, then run on Santa Anita when it was dirt, and what an advantage I had. I had a good meet a year and a half ago. So did a lot of the guys who trained at Hollywood Park. We were the guinea pigs starting out. Our horses trained on it, and I trained them hard at Hollywood Park and they ran well on Santa Anita’s dirt track. It might be harder the other way. A lot of guys who trained at Santa Anita didn’t do that well at Hollywood Park.”
Will a horse who has never raced on dirt win this year’s Kentucky Derby? "I think ultimately it comes down to the best horse wins the Kentucky Derby,"Harty said. "Look over the past 133 Derbies; usually the best horse wins. I think if the horse is good enough, he’ll overcome not racing on dirt.”

And if Harty’s horse doesn’t overcome that? "It would be a convenient excuse,"he said. "Based on my own experiences and the feelings of my owners, this is the route I take.”

Undoubtedly, as synthetic tracks grow in popularity, more trainers will take that route. Ultimately, the question won’t be can horses who have raced exclusively on synthetic surfaces win the Derby, rather which synthetic surface - Polytrack, Cushion or Tapeta - is more conducive to making that transition. 

Who is Controlling Racing's TV Signals?

By Howard Wright

For all the differences between the horseracing and betting landscapes in Britain and North America - size, history, administration and race and bet types, - one similarity of principle has emerged over the last five years. The live televised racing scene has crystallised into two entities, and the impact on both the foundation and prosperity of the sport and the availability of its betting facilities has been thrown into the blender.

 In Britain, the 60 racecourses have lined up equally between the two cable and satellite broadcasters - Racing UK (RUK), with 30 tracks on board, and At The Races (ATR), with 29, but soon to become 30 when the new venue of Great Leighs attains its long-awaited completion.

In North America, the dominance and extensive exclusivity of TVG has been challenged by the major corporate racetrack owners Magna Entertainment Corp. (MEC) and Churchill Downs Inc., which have jointly formed the cable and satellite broadcaster Horseracing TV (HRTV), shutting out TVG from coverage of their many high-quality courses.

Into the mix have been catapulted bookmaking, advance deposit wagering and online betting facilities, the biggest attraction for the public and the most significant cash provider for racing outside the deep pockets of racehorse owners.

What will come out at the other end, and when, is impossible to say with any certainty. Interested parties have their own views, based on which side of the divide they sit, but it would take someone akin to a soothsayer, let alone an experienced industry observer, to imagine where the path will lead.

The road-makers are still at work, using different maps to plot their separate ways, and sometimes giving the impression they are making up the journey as they go along.

Two examples of intricacies that can only ripen confusion and spread uncertainty are worth recording, before attempting to untangle the web spun by rights-holders seeking to manage content to best advantage.

Ascot, Britain’s best-known international venue, lined up with At The Races when the second coming of that daily satellite broadcaster emerged from the ashes of a failed venture known as Attheraces in June 2004. At the time, as Ascot negotiated with its bankers over loans to service a £200 million redevelopment scheme, huge uncertainty surrounded previous rights, which may have meant Ascot having to repay a significant sum. Partly to allay the fears of financial institutions, Ascot fell in with ATR, and was given a five per cent stake in the company for its allegiance.

However, the contract, which runs until 2012, did not include pictures supplied to betting shops, and when these came up for renegotiation earlier this year, Ascot decided to jump on to the back of another media rights horse. It sided with Amalgamated Racing - Amrac for short - which had set up a joint venture with the stock market-quoted betting-shop services provider Alphameric to introduce a new channel, Turf TV, offering pictures from aligned courses to off-track bookmakers.

Until then, for 20 years the betting industry had had only one company to deal with, Satellite Information Services (SIS), which took pictures from Racing UK courses under contract, and by sub-contract from At The Races’ courses through an organisation called Bookmaker Afternoon Greyhound Service (Bags).

Bags has outgrown its title by owning horseracing rights and covering evening racing, while ATR controls no betting-shop picture rights in Britain, but it does use SIS to produce its programmes on a daily basis, and has a contract with it to distribute pictures into betting shops in overseas territories such as Sri Lanka.

Confused? You soon will be…

Explaining the decision to go with Amrac, Ascot’s finance director Janet Walker says: “We believe Amrac is the best vehicle for racing’s commercial relationship with the betting industry. And the decision has no impact on our separate satellite media rights arrangement with ATR, and should in no way be interpreted as a negative reflection on our relationship with that company.”
In North America, the picture began to get decidedly murkier in March this year, when Churchill Downs bought a 50 per cent stake in HorseRacing TV, which had previously been owned wholly by Magna.

It was the biggest in a series of deals that the two sides concluded at the time, and out of the arrangement came the formation of another joint venture called TrackNet Media Group, through which one partner’s horseracing content would become available to the other’s various distribution platforms - Magna’s advance deposit wagering (ADW) site XpressBet, Churchill’s similar newcomer TwinSpires.com.

TrackNet would also deal with providing content, from pictures to betting availability, for third parties, it emerged. These were to include racetracks, OTBs, casinos and other ADW operators - but not TVG, it seemed; well, not without a groundbreaking change of heart.

HRTV immediately took over coverage of Churchill Downs, and as contracts run their course, it picked up exclusive rights to Arlington Park on August 6, Fair Grounds in November and Calder on January 3, 2008.

It was not long before the consequences became clear. The 2007 Kentucky Derby was shown exclusively on HRTV and bet on through TwinSpires and winticket.com (whom Churchill Downs subsequently purchased). TVG and its wagering partner Youbet did not get a look-in. The same applied to the second races in the US Triple Crown, the Preakness, run at Magna-owned Pimlico, but come the last leg, the Belmont, exclusivity returned to TVG, under its contract with the New York courses.

Just before the Kentucky Derby, a contributor to the Turf’n’Sport website was moved to remark: “At the best possible time of the year for generating positive horseracing buzz, the industry has succeeded in turning on itself and creating negative headlines. At a time when online racebooks that offer betting on all major Thoroughbred tracks continue to make inroads, and at a time when the World Trade Organisation has ruled America must open up horse betting to offshore racebooks, the existing companies are bitching at each other.”

The punchline summed up: “How long will it take horseplayers to catch on and simply move their accounts offshore?”
He clearly is not the soothsayer identified earlier, who might supply the answer to what will come out of the mix. But he does have a point.

A similar observation holds good in Britain, though with a different emphasis. At times the two sets of particular circumstances in Britain and North America do run along parallel lines, but at others they are subtly interlinked and completely separate. The differences, and some of the connections, can be seen in the betting arena, where HRTV and TVG have their own direct outlets, but Racing UK has a joint venture and At The Races remains corporately aloof while relying on bookmaker partners to provide one of 30 income streams.

The key in Britain is Turf TV, the betting-shop channel set up in part by the Racing UK courses, which flickered into life with six exclusive members (including Ascot) and a small percentage of betting-shop supporters, mainly small independents until the Tote joined up, but none of the four majors, which account for 80 per cent of the UK estate.

On January 1, Turf TV will be bolstered by 25 other RUK courses. The split will be equal - just as it is in the choice facing satellite viewers, who need two TV accounts to cover the field - and the dominant bookmakers, who have lined up solidly behind SIS and the status quo, will have to decide whether they can survive on half rations for their horseracing coverage.

On that decision could depend a large slice of British racing’s future prosperity. The situation in North America depends on whether racecourse and betting operators choose TrackNet or TVG. It seems they cannot have both.

In each case, the participants have made their positions clear.

Robert Evans, president and CEO of Churchill Downs, told a shareholders’ meeting: “I understand our objectives on occasion may ruffle a few feathers. That is one of the things about competition. It is not really our intent just to go out and be disruptive. Our intent is to compete aggressively and to attract more customers to our business. There are always a few potential consequences when you challenge the status quo.”

In response to the Kentucky Derby impasse, TVG general manager David Nathanson said: “We attempted to negotiate with TrackNet Media and its owners in good faith, but thus far have not seen any terms from them indicating a strong desire to reach a mutually beneficial long-term agreement. We remain open to negotiating an agreement that is in the best interest of the racing industry, the respective parties and, ultimately, the racing fan.”

In Britain, Turf TV has become the dividing line between broadcasters and rights-holders Racing UK and At The Races.
RUK executive chairman Simon Bazalgette reflects: “Historically British racing has not been good at being commercial about negotiating its media rights, and has allowed third parties, such as BSkyB (the satellite provider) and the bookmakers, to get a lot of the economic benefit. Now racecourses can manage the business themselves, keeping more of the commercial benefit in racing and having greater control over the presentation of the sport. Turf TV is a great deal for the racecourses.”

ATR chief executive Matthew Imi takes a dispassionate view of Turf TV, since betting-shop rights do not figure in his company’s portfolio. “It will be interesting to see how it works out, but we’re not threatened by Turf TV,” he says. “The most fascinating aspect is not whether Turf TV gains any material traction among the big bookmakers, but what the net effect will be on British racing. For us, though, it’s a valuable opportunity to concentrate on our core business, which is to exploit our partners’ rights. Getting together in the UK with Racing UK is not on our radar.”

It might not be war, but for the moment, and maybe for the foreseeable future, it clearly is every man for himself.

HOW THE TELEVISION BROADCASTERS LINE UP

NORTH AMERICA
HORSERACING TV (HRTV) 
Owned by: Joint venture of Nasdaq-listed Magna Entertainment Corp. (MEC) and Churchill Downs Inc.
Operates: Subscription national cable and satellite TV horseracing network. Live racing content is acquired by sister company TrackNet Media Group. Estimated coverage 11 million homes.
Racetracks covered: 70-plus Thoroughbred, harness and Quarter Horse tracks, including Santa Anita Park (California); Churchill Downs (Kentucky); Gulfstream Park, *Calder (Florida); Lone Star Park (Texas); Arlington Park (Illinois); Pimlico (Maryland). International: UK tracks on Racing UK.
MEC operates off-track betting network, and national account wagering business XpressBet. Churchill Downs recently opened online national account wagering service, TwinSpires, and more recently acquired account wagering operator AmericaTAB and affiliates.
Overseas coverage: Racing World channel in Britain, joint venture with Racing UK.
*effective January 3, 2008

TVG
Owned by: Gemstar-TV Guide International Inc., global multi-media and technology company, including loss-making TV Guide magazine, in which Rupert Murdoch’s News Corporation has 41 per cent stake.
Operates: Subscription national cable and satellite TV horseracing channel, and online betting network. Estimated coverage 50 million homes.
Racetracks covered: Turf Paradise (Arizona); Del Mar, Fairplex Park, Hollywood Park, Los Alamitos, Oak Tree (California); **Calder (Florida); Prairie Meadows (Iowa); Ellis Park, Keeneland, Kentucky Downs, Turfway Park (Kentucky); Meadowlands, Monmouth Park (New Jersey); Ruidoso Downs, Zia Park (New Mexico); Aqueduct, Belmont Park, Saratoga, Yonkers Raceway (New York); Emerald Downs (Washington). International: Japan, UK tracks on At The Races. Some contracts with tracks owned by HRTV partners due to expire over next year. Has arrangement with online account wagering operators Youbet and The Racing Channel.
Overseas coverage: At The Races in Britain, through arrangement with TRNi and the Dubai Sports Channel in the UAE.
**through January 2, 2008

BRITAIN
RACING UK (RUK)
Owned by: 30 British racecourses, split Jockey Club Racecourses (50%), Chester, Goodwood, Newbury, York (sharing 25%), 11 smaller courses (sharing 25%). Owns all rights, including terrestrial TV, except for licensed betting offices (belong to Amrac, see below and facing).
Operates: Subscription national cable and satellite (via BSkyB service, part of Setanta Sports package) TV horseracing channel, with links to small number of bookmaker partners; international channel, Racing World, in partnership with MEC and Churchill Downs; licensed betting-office channel, Turf TV, set up by Amalgamated Racing (Amrac), joint venture between Racecourse Media Services (separate company owned by RUK courses and Ascot) and betting-office provider Alphameric; overseas delivery of pictures and data from RUK courses in association with South Africa-based racetrack and betting operator Phumelela. About 200,000 subscribers (including Setanta, forecast to grow to 1 million when Premiership football comes on stream in Autumn 2007).
Racetracks covered: Aintree, Ayr, Bangor, Beverley, Carlisle, Cartmel, Catterick, Cheltenham, Chester, Epsom, Goodwood, Hamilton, Haydock, Huntingdon, Kempton, Ludlow, Market Rasen, Musselburgh, Newbury, Newmarket, Nottingham, Pontefract, Redcar, Salisbury, Sandown, Thirsk, Warwick, Wetherby, Wincanton, York. International: France, Dubai, occasional other major races;  HRTV (see above) coverage of North America on separate channel, Racing World.
Overseas coverage: North America, joint venture with HRTV; Australia, jointly with At The Races; other territories, partnership with Phumelela (South Africa).

AT THE RACES (ATR)
Owned by: broadcaster British Sky Broadcasting (46%), racetrack owners Arena Leisure (46%) and Northern Racing (2%), and racecourses Ascot (5%), Newton Abbot, Plumpton and Ripon. Owns all media rights of participating courses except licensed betting office and terrestrial TV rights.
Operates:  National cable and satellite (part of Sky Sports package) TV horseracing channel, with links to bookmaker partners. ATR courses shown in betting shops through agreement with Satellite Information Services (SIS), which sub-contracts rights from Bookmaker Afternoon Greyhound Service (Bags). BSkyB subscription platform covers 8.5 million homes in UK.
Racetracks covered: Ascot, Bath, Brighton, Chepstow, Doncaster, Exeter, Fakenham, Folkestone, Fontwell, Hereford, Hexham, Kelso, Leicester, Lingfield, Newcastle, Newton Abbot, Perth, Plumpton, Ripon, Sedgefield, Southwell, Stratford, Taunton, Towcester, Uttoxeter, Windsor, Wolverhampton, Worcester, Yarmouth. (Great Leighs will become 30th on opening). Plus all 27 Irish courses. International: France, Dubai, Germany, occasional other major races; TVG (see facing) coverage of North America.
Overseas coverage: North America, arrangement with TRNi, through to TVG; Australia, jointly with RUK; other territories, distribution by SIS.