Racing To Comply: How The New GDPR Internet Privacy Rules Affect Trainers And Other Equine Professionals

By Peter Sacopulos

The Great Privacy Policy Alert

As the summer of 2018 began, every company doing business on the internet appeared to have developed a new user privacy policy overnight. Service providers, search engines, social media platforms, news sites, online retailers and others bombarded Americans with emails and pop-ups, urging users to review the new policies immediately and adjust their personal privacy settings accordingly. There is no official count of how many consumers dutifully clicked on links, doggedly read new rules, and deliberately updated their individual privacy preferences, or how many simply shrugged, ignored the alerts, and went on with their online lives.

Some who wondered what all the fuss was about may have thought the new privacy policies had something to do with recent headlines about corporate data breaches. Others may have associated them with the fallout of 2016’s US presidential election and UK Brexit referendum, after which reports emerged of foreign meddling online and a political consulting firm stealthily collecting data from tens of millions of Facebook users without their permission. (Criminal investigations are ongoing.) But many internet users knew the truth: the renewed focus on privacy was far from sudden and was the result of a European Union law known as the General Data Protection Regulation, that had been passed in 2016 and took effect on May 25, 2018.

The General Data Protection Regulation

Even though it is a European law, the General Data Protection Regulation (or GDPR) has implications for Americans who use the internet to conduct their business. Horse trainers and other equine professionals are no exception. This article will address the basics of GDPR, how it affects American businesses, and the primary steps your business should take to achieve and maintain GDPR compliance. Make no mistake, spending the time and effort to do so now will go a long way toward avoiding legal headaches and financial penalties in the future.

Privacy policies exist to protect personal data. Personal data is defined by the European Union as: “…any information that relates to an identified or identifiable individual….” It includes:  “…Different pieces of information, which collected together, can lead to the identification of a particular person….” In short, any form or combination of information that can tell others who you are is personal data. In the US, personal data is also referred to as personally identifiable information (PII) or sensitive personal information (SPI).

Personal data typically includes information that can allow others to locate, contact or monitor you. Examples of personal data include your first and last name, home address, email address, telephone number as well as an identification card number, such as your social security number, driver’s license number or passport number. In the digital age, it can also take far more subtle forms, including some you may not have even realized, such as your Internet Protocol (IP) address, your mobile phone location data or a “cookie” ID on your computer. Personal data does not include anonymous information, such as that found in statistics.

The Big Question

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The General Data Protection Regulation is based on the answer to this increasingly important question: Who owns an individual’s personal digital data?

In the United States, the answer to that question is still being debated and, some privacy advocates would go so far as to say, avoided. But the countries that make up the European Union (EU) and the European Economic Area (EEA) have determined that, when their citizens are concerned, every individual owns his or her personal data, wherever it may appear online and however it may be gathered and used by others. The GDPR enshrines this principle of personal data ownership in law. It grants specific data privacy rights to individuals and sets out rules that businesses must follow when dealing with a consumer’s data. It mandates harsh financial penalties for businesses that violate those rules, along with strict notification standards whenever a business suffers a data breach.

The American Question

The first question most Americans will ask about the GDPR is obvious. Why would an American citizen doing business in the United States need to worry about complying with a European law?

Like nearly all businesses in the digital age, the vast majority of the Thoroughbred racing community routinely conducts business on the internet. And therein lies the answer to the American GDPR compliance riddle. The web truly is worldwide and that means your website, and any and all social media platforms you use (such as Facebook, Instagram, YouTube, Snapchat, Twitter and any Thoroughbred-biz-specific websites and platforms), are as easily accessed in Europe as they are in America. In the course of conducting business online, you can come into contact with a European citizen as easily as you do an American citizen.

The General Data Protection Regulation clearly states that when any business entity, based in any location, deals with a European citizen’s data, GDPR rules apply. But there are some important exceptions. If a European citizen’s data is collected while the individual is not physically in Europe, that data is not governed by the GDPR. If, for example, a German visiting America takes an online marketing survey while in New York and offers up personal information in the process, only American regulations regarding the use of that data would apply.

The GDPR also takes intentionality into account. Basic, broad-based, generic marketing materials are exempt from the law. If an Italian citizen who has in interest in Thoroughbred training happens across the English-language website of an American horse trainer whose services are only offered in the US, the GDPR does not come into play. But if an American trainer’s site appears to target European citizens, gathers information on them, or seeks to do business with them, GDPR rules do apply.

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The important role played by the CBA

By Cynthia McFarland

Thrilling. Challenging. Rewarding. Overwhelming.

Ask anyone whose livelihood is tied to the world of thoroughbred sales, and all of those adjectives apply, depending on the day. Or the moment.

Because the whole sales process can also be intimidating at times, it's reassuring to find there's actually an organization that represents all players - large and small.

Located in Lexington, Kentucky, the Consignors and Commercial Breeders Association (CBA) is comprised of a far-reaching group of people who make their living in the thoroughbred breeding industry. The organisation was created to provide a unified voice of representation for the breeders and consignors who provide the horses that drive the industry.

The CBA was launched in 2005 by a group of prominent consignors and breeders who believed the thoroughbred industry could improve the way commerce was handled. They sought to do that by creating a non-profit, dues-based organisation that would educate and promote unity.

"If you look at the wine industry in California and Europe, the automotive industry and other trades, more often than not, unity brings about better trade. There is a cohesion of ideas and a progressive sharing of trade interests," observes Joe Seitz, current CBA president.

"There was a void where the people producing the product didn't really have a voice. We wanted to have a seat at the table when issues came up regarding ethics and integrity, veterinary topics, sales company practices, regulatory entities, legislation, and even how sales companies design and lay out their sales and facilities," explains Seitz. "This is a moving, fluid market, so we're always needing to make things better for breeders, sellers and buyers."

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“The CBA is a great organisation to provide support for both sides (buyers and sellers).” LIZ CROW, Elite Sales/BSW Bloodstock

The CBA has filled that void in a most productive manner. The organisation's mission statement says it all: "The CBA works democratically on behalf of every consignor and commercial breeder, large and small, to provide representation and a constructive, unified voice related to sales issues, policies, and procedures. The association’s initiatives are designed to encourage a fair and expanding market place for all who breed, buy, or sell thoroughbreds."

That might sound ambitious, but the CBA has stepped up to the proverbial plate and become an educator, advocate, and representative for pretty much everyone who makes a living connected with the thoroughbred breeding business.

Although the name does not refer to them, buyers are an integral part of the CBA's mission. After all, when buyers have the information they need to make knowledgeable, confident, buying decisions, everyone involved - breeder, consignor, sales company and buyer - benefits.

Several important initiatives lie at the core of the CBA. These include:

• education

• ethics and integrity

• veterinary science issues

• working directly with sales companies

Education…

One highly successful project of the CBA is the "Plain and Simple" series of educational books, which clearly explain various aspects of the sales process and are available for free download from the CBA's website.

The booklets educate both buyers and sellers about key aspects of the public auction.

"They've been requested all over the world and have been reprinted in multiple languages, even Japanese," says Seitz.

"We've also held three symposiums in Lexington that were well received and covered a myriad of topics important to anyone buying or selling thoroughbreds," he says, adding that broadcasts are posted on the website.

Additional educational efforts include the CBA's quarterly online newsletter, as well as a monthly sales calendar email filled with sales deadlines and requirements designed to help breeders who are selling, as well as consignors.

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Understanding Concussion and Protection

By Lissa Oliver

As helmet technology moves forward, concussion remains an issue. So the question we must ask is whether this is despite improvements to helmets, or because of them. Could the lifestyle of a work rider contribute to the risk of sustaining concussion in a fall, or could a change in lifestyle protect against the risk? Can a poor state of mental health increase the risk of concussion, or is mental health affected by repeated concussion? These are just some of the questions being asked by scientists, doctors and engineers in ongoing research to protect riders.

A concussion is a brain injury that occurs when a blow to the head causes the brain to spin rapidly in the opposite direction from where the head was struck and is the most common type of “closed brain injury,” where the skull is not split. Those suffering from concussion may have symptoms such as headache, sensitivity to light, tinnitus, dizziness, sleepiness, confusion and behavioural changes; although many of these symptoms can also be caused by other injuries sustained in a fall and unrelated to brain injury. A specific diagnosis is vital to securing the necessary treatment and correct aid to recovery.

Our natural protection comes from cerebrospinal fluid (CSF), which cushions the brain within the skull and serves as a shock absorber for the central nervous system. CSF is often thought of as existing only between the brain and the skull, but the brain has a much more complicated structure. CSF also fills a system of cavities at the center of the brain, known as ventricles, as well as the space surrounding the brain and spinal cord.

The transfer of energy when a rider’s head hits the ground causes rapid acceleration and deceleration, which briefly deform the brain. Because of this deformation, the volume of the brain decreases while the volume of the rigid skull remains unchanged. CSF flows into the skull from the spinal cord and fills the empty spaces created by the brain deformation, flowing back with acceleration and forward with deceleration, to prevent the brain impacting against the skull.

Research on turf impact has shown that concussion can occur without any associated helmet damage. The soft surface of the turf distorts and collapses, instead of the helmet, and the energy from the impact is transferred to the head. Currently, equestrian helmets are designed and tested to protect the head from impact with hard surfaces, but concussion most commonly occurs after being thrown from a horse onto a soft surface such as turf.

To improve performance for concussive injury, helmet technology needs to be rethought. Several research projects have risen to this challenge, with help from the sporting communities most at risk. A key player in this research is the NFL and in 2016 pledged $100 million, to become one of the largest funders of concussion research in the U.S. Its "Play Smart, Play Safe" initiative aimed to spend $60 million to create a safer helmet as a means of reducing concussion, joining with global sports organizations such as the NHL and World Rugby.

Another major research group is HEADS, an Innovation Training Network funded under the European Commission’s Marie Sklodowska-Curie Programme, structured around 13 individual research projects focusing on the three main topics of accident reconstruction and simulation, head model refinement and helmet certification improvements. This involves six partners, three industry and three academic across five countries who are already involved in working toward new helmet standards: Lead Partner, University College Dublin, Ireland; KU Leuven, Belgium; KTH-Stockholm, Sweden; AGV, Italy; Lazer Sport, Belgium; and Charles Owen, Britain.

Charles Owen is widely recognized as one of the leading manufacturers of riding helmets and the company was chosen in 2015 as one of five first-round winners of the $60 million Head Health Challenge presented by the NFL to develop new advanced materials for helmets.

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Roy Burek

Professor Roy Burek of Cardiff University is the managing director of Charles Owen, and one of the supervisors of the HEADS project. He explains, “The length of time the impact lasts in contact with the surface is becoming an important factor. For example, impact lasts five milliseconds on steel, but 25-30 milliseconds on softer surfaces. We are seeing concussions at much lower force levels which can only be explained by taking the time into account.

“There are a huge number of blood vessels in the brain, which are stronger and stiffer than neurons (brain cells), so when you are distorting the brain you are straining neurons through a matrix of blood vessels. In CTE (Chronic Traumatic Encephalopathy) studies, the damage is focused around the blood vessels due to the much, much higher local strains.

“The neurons have viscoelastic properties and if you stretch them over a short space of time they stiffen and resist stretching, but if you continue to pull, they start to stretch. It is the amount of stretch that causes the body to react. This is why we are particularly interested in the time interval of impact.”

Burek suggests that helmet development in the past, by not looking at the surface or impact time, may have failed in protecting the milder forms of brain injury that we are only starting to understand their importance. “Slowing the rate of energy transfer rate down is the normal thing we do, but at some point rather than protecting the brain we could actually be causing injury. Are we finding a ground and helmet combination that is making the impact last so long we’re causing injury?” he wonders.

“There is another area we need to consider in how the helmet works with the ground. Historically, helmet design has just focused on the exterior surface. However when the helmet hits the ground, it comes to an abrupt stop as there’s not much momentum due to its lightness. On the outside the helmet sticks to the ground, while the head slides within the helmet, which means we have two active surfaces. So now we have to design the inside of the helmet, which is very revolutionary.

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Spreading the joy of ownership

By Linda Dougherty

NEW Blood - examples of how farms, tracks and trainers are attracting new owners to the racing world

The lifeblood of Thoroughbred racing has always been its owners, and in recent years there have been many creative ways to attract newcomers to the sport, as well as retain those already in it.

Rather than sitting back and waiting for new clients to seek their services, trainers have taken a proactive role in bolstering their business, often in partnership with farms and racetracks, while industry organizations are increasingly focused on providing a plethora of information as well as assistance to prospective owners.

“From what I see, the number of owners in Thoroughbred racing is staying the same or decreasing,” said Duncan Taylor, president of Taylor Made Farm in Nicholasville, Ky. “And people that you want to stay in the business often don’t stay very long. They get frustrated with the status quo and there’s an ‘old guard’ in Kentucky that don’t want to change.”  

Taylor, who serves on Keeneland’s Board of Directors and the Keeneland Executive Board, is also a board member of Horse Country, Inc., an organization of horse farms, equine medical clinics and equine attractions, the aim of which is to develop fans and future owners of the sports through tourism. For a small fee, people can sign up for tours of Lexington-area farms on the web site visithorsecountry.com.

“Kentucky is in a prime spot,” said Taylor. “And where Lexington is situated is about a six-to-eight hour drive of three-quarters of the United States population. We have the Bourbon Trail here, and tours of distilleries are very popular. About 2-½ years ago myself, Headley Bell, Price Bell, Brutus Clay and others thought we should have a similar venture for the Thoroughbred industry. We started Horse Country, and we feel Kentucky can be a destination for travelers. Our first year we had about 1,800 people sign up for tours here at Taylor Made, while this year we’re looking at about 9,000, so it’s growing. We could have even bigger growth if marketed correctly.

“Of those 9,000 people, maybe 40 are interested in doing something, so we plant the seeds in people’s minds about ownership,” said Taylor.

Taylor Made has branched out into other areas to attract new owners, including a pinhooking venture with Bloodstock Investments, run by Katie Taylor-Marshall, and Medallion Racing, a racing partnership with the aim of offering an ideal experience for potential owners. Medallion, headed by racing manager Phillip Shelton, buys minority interest in graded stakes-caliber fillies, immediately bringing investors to the graded stakes level.

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Duncan Taylor, president Taylor Made Farm, with California Chrome

Taylor said there have been discussions about doing something, perhaps a syndicate, with progeny of Classic winner California Chrome, who stands at Taylor Made, but there isn’t anything on the table right now. The farm partnered with journalist Geoffrey Gray when he started the “People’s Horse” venture, which had 300 people sign up for $100 each and became “owners” of the Munnings mare Colorful Bride, in foal to the stallion.

The birth of the Chrome foal was broadcast live on a “horsecam” that streamed around-the-clock from Colorful Bride’s stall, with an estimated 1,000 people watching.

Taylor also feels that if the sport wants to get new fans and owners, it needs to treat horseplayers better.

“Years ago, there wasn’t as much competition for the betting dollar,” he said. “Now we’re competing against casinos, which really cater to customer service. Racing doesn’t focus on people who want to bet, and we haven’t been innovative on changing how you bet. Most people that bet the lottery want to put a little money down and have a life-changing experience. We ought to think like that. If we can get on the same web site or platform as sports betting, if someone sees they can bet baseball, football and horse racing, it could help us tremendously. We can’t keep doing business as usual.”

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New Jersey - Beginning sports betting revolution

By Linda Dougherty

Flash back seven decades, to Thoroughbred racing’s “golden age,” when pari-mutuel wagering alone was able to sustain American racetracks. Huge crowds jammed grandstands, horses were heroes, and the sport had incredible popularity.

But as that “golden age” began to tarnish beginning in the 1980s, it became apparent that pari-mutuel wagering could not keep most racetracks afloat. And so, by the mid-1990s, a new revenue stream had emerged, and that came from expanded gaming from slot machines.

Racetracks in West Virginia were the first to reap the benefit of expanded gaming, and slowly but surely neighboring states in the mid-Atlantic region, like Delaware, Pennsylvania, New York, and Maryland, legalized slot machines for their racetracks, too. All of them saw once-paltry purses inflate like balloons -- all except those in New Jersey.

Saddled with the burden of coexisting with the Atlantic City casinos, with its importance to the state’s economy through both gaming and tourism, the horseracing industry in the Garden State has been unable to persuade the electorate to allow the installation of slot machines at racetracks. A casino industry purse subsidy to horseracing, which helped keep Monmouth Park and Meadowlands open, was terminated by Governor Chris Christie in 2011, leaving racing to try and survive while horsemen shopped elsewhere for richer races. But Christie, ironically, played a big role in what was to come for horseracing in his quest to legalize sports betting.

On May 14th, after hearing an oral argument in Christie v. National Collegiate Athletic Association, the Supreme Court struck down the 1992 federal law called the Professional and Amateur Sports Protection Act (PASPA) that banned commercial sports betting in most states. It opened the door for not only the state of New Jersey to benefit handsomely, but the racing and breeding industries, too -- by tens of millions of dollars each year.

For Monmouth Park, the Supreme Court decision won’t bring back the sport’s wonderful “golden age,” but the revenue will help keep the elegant oval, just miles from the sea, alive for many years to come.

“The future is rosy for us because the sports betting revenue will certainly generate the money that we need to have higher purses, extend our season, have more opportunities for our horsemen, our breeders, and bring New Jersey back to its glory days,” said Dennis Drazin, a lawyer who is the chief executive officer of Darby Development, the company that runs Monmouth Park, and an avid Thoroughbred owner and breeder.

A long road to sports betting

Congress passed PASPA almost unanimously in 1992 to preserve what lawmakers at the time felt was the integrity of the games. PASPA was sponsored by then-senator Bill Bradley, a New Jersey Democrat who once played for the New York Knicks of the National Basketball Association (NBA). Four states were not included under PASPA: Nevada, Delaware, Montana, and Oregon.

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Over the years, New Jersey tried several times to implement sports betting at racetracks and casinos. In 2011, 63% of the state’s voters approved a ballot referendum that allowed the state constitution to be changed to permit sports betting at the sites of current and former horseracing tracks and casinos, with Christie signing enabling legislation the following January, which ultimately lost in court. But shortly thereafter, four professional sports leagues -- the National Football League, the National Hockey League, Major League Baseball, and the NBA, plus the National Collegiate Athletic Association -- sued Christie over the legislation, claiming that betting would “irreparably harm” sports in the United States, and successfully argued that the state was in violation of PASPA, igniting a fierce battle.

In 2014, the process repeated, with a new twist: Christie repealed an old state statute that banned sports betting at casinos and racetracks, leaving in place only some broad limits on the activity. After a federal appeals court ruled that the move failed to circumvent the law, it earned New Jersey the opportunity to argue before the Supreme Court, which led to the May 14th decision.

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Massachusetts Revival

By Bill Heller

Is it coincidence or destiny that Suffolk Downs’ chief operating officer Chip Tuttle became a marathon runner? Because he’s been in for the long haul, trying to keep Thoroughbred racing alive in his native state of Massachusetts for decades.

While nagging injuries have put his marathon running on hold, Tuttle has been moving full-throttle forward to on the horseracing end of things by reviving the Great Barrington Fair, which has been dormant for 20 years.

Live racing at Suffolk Downs, the last Thoroughbred track still operating in what was once a vibrant racing state, has been on life support since 2014 when it lost a bid as a casino site. Instead, a casino was granted to Wynn Resorts’ Encore Boston Harbor in Everett, 15 minutes from Suffolk Downs. It’s scheduled to open in 2019.

Full racing seasons at Suffolk have been pared to a handful of weekend festivals with food trucks, live music, family activities, a weekend jockey challenge, horsemen’s shipping charges covered, and exorbitant purses averaging more than $50,000 per race daily. This year, $10,000 claimers raced for a purse of $41,000 on June 9th and June 10th.

Two of this year’s three festivals remain, on July 7-8 and August 4-5, and another may be added in the fall. The weekends were spaced out so that owners with Massachusetts-breds could compete in three different stakes during the year.

But that’s it, especially if Amazon decides to locate its second headquarters at the 161-acre Suffolk Downs property which Boston-based HYM Investment Group purchased for $155 million in May, 2017. A decision is expected by Amazon, whose headquarters are in Seattle, Washington, by October. If Amazon chooses another site, Suffolk could squeeze in one more year of festivals.

How long can a patient last on life support? There are only two possible conclusions: the patient recovers or the patient dies.

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Social Media Horse Sense Part II: The industry in the digital age

By Peter J. Sacopulos

This is the second article in a two-part series on social media for Thoroughbred trainers. Part I appeared in the Winter 2017 issue. It examined social media usage and issues faced by trainers who wish to promote their business online. This installment focuses on broader issues facing the racing industry and how trainers can use social media to affect positive change and ensure the future of the sport.

In 1868, the publication of the The American Stud Book sparked the establishment and phenomenal growth of organized horseracing across the United States. America’s first racetrack had opened in colonial New York in 1665, and racing was popular in various areas of the country ever since, particularly the south. But the arrival of the first U.S. Thoroughbred registry was the game changer that transformed racing into a truly national sport.

This year marks the 150th anniversary of the American Stud Book’s debut, but do not expect much in the way of celebration. America’s Thoroughbred racing industry currently faces a slew of challenging issues, and the future of the sport is far from guaranteed. Another historic game changer would certainly be welcomed, but today’s problems will not likely be resolved with a single stroke. Odds are that positive, popularity-driving change will unfold via a variety of initiatives and approaches over time.

Since these efforts will take place in the digital age, the power of social media will play a vital role in their success or failure. Proponents of racing will seek to harness social media to succeed. Opponents of racing will do everything they can to use social media to foil such efforts. This dynamic has already been playing out online for years, and we may expect it to intensify in the years ahead.

As a trainer working to build a business and a reputation, you may feel that dealing with larger industry issues is someone else’s responsibility. After all, you have plenty on your plate, and the people addressing the industry’s problems are the experts on these matters, so they should be able to handle them.

Though this line of thinking is perfectly understandable, it is a mistake. Positive change and growth that assures a healthy future for the industry increases your opportunities and helps assure your future as a trainer. Your professional voice on social media matters, and adding it to the chorus promoting racing is a wise investment of your time and energy. However, before discussing ways social media may help combat industry issues, a review of the issues is in order.

Declining Popularity

For decades, the steady decline of Thoroughbred racing’s popularity has been a serious challenge facing the industry in the United States. It remains so today. Before you type a phrase such as “Popularity of horseracing in the U.S.” into your computer’s search engine, brace yourself for some very dispiriting results. You will be presented with a list of articles with titles including “Horse Racing Fading in Revenue, Popularity” (Newsweek, 2016), “American Horse Racing Isn’t Dead–But It’s Getting Awfully Close” (The Guardian, 2015), “Horse Racing Faces Decline in Popularity” (The Sport Digest, 2016) and “The Kentucky Derby and the Slow Death of Horse Racing” (The Atlantic, 2012).

American horseracing was tremendously popular in the years before World War II, when it was one of the country’s favorite sports, along with baseball and boxing. Its popularity declined after the war, but still remained high. A slowly stewing combination of factors began gnawing away at it in the 1950s and ‘60s. The appearance of three Triple Crown winners in the 1970s created a resurgence of public interest, but the renewed enthusiasm proved fleeting.

It would take a book to detail all the causes of racing’s fading popularity, but the rise of other sports and other forms of gambling and entertainment played crucial roles, as did suburbanization and repeated economic downturns. The fact that a surprisingly small number of “superstar” horses and riders have emerged over the last four decades further dampened public interest. A lack of cohesive marketing was also to blame. When racing failed to capture the imagination of the Baby Boom generation and those that followed, the industry appeared to do little to counter the loss of interest.

The Dark Side Of Racing.....

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Rejuvenation and uncertainty in Maryland

By Linda Dougherty

One may be in its death throes. The other is getting a new lease on life. Pimlico Race Course and Laurel Park, Maryland’s two major racetracks, are a study in contrasts.

Laurel Park, located near the affluent suburbs of northern Virginia and bustling Washington, D.C., has received a considerable facelift in the last two years by its owner, the Stronach Group. It’s come with an eye towards hosting future major events, including the Breeders’ Cup World Championships, and possibly the Preakness Stakes, second jewel of racing’s Triple Crown.

While Laurel, which opened in 1911, has a long history, it is Pimlico, which opened in 1870 and is the nation’s second-oldest racetrack behind only Saratoga, that holds a special place in the annals of the sport. Pimlico not only hosts the Preakness, set this year for May 19, but has been the scene of such memorable events as the celebrated match race between Seabiscuit and War Admiral in 1938. And despite Pimlico being surrounded by a distressed Baltimore neighborhood, the Preakness is an economic boon to both the city and state.

But for more than a few years, as attention shifts to Baltimore soon after the dust settles from the Kentucky Derby, questions have arisen as to the future of Pimlico, which has often been described as decrepit, run down, and completely devoid of the charm that is associated with Churchill Downs, or the enormous wonder of Belmont Park.

Those questions have become more pointed recently with the reduction of live racing dates at Pimlico, the shift of those dates to Laurel Park, and the absence of any serious renovations to Pimlico by the Stronach Group.  

The release last year of Phase 1 of a two-phase study of Pimlico by the Maryland Stadium Authority concluded that it will require an enormous amount of money for either extensive improvements or a complete rebuilding, and has many wondering how much longer the track will remain.  

The Stronach Group has indicated it is not prepared to make a major investment in Pimlico for what amounts to just a dozen racing dates per year without financial help from the city and state. The company’s focus on improvements to Laurel Park are part of a plan to land the Breeders’ Cup World Championships, which it hopes to be awarded in the next few years after submitting a formal bid earlier this winter. If Laurel is successful in handling a large crowd with the attendant festivities, the Breeders’ Cup could be a precursor towards it being the new home of the Preakness Stakes, though it’s not expected to happen without a fight.  

A Glorious Past, An Uncertain Future

The 90-page Phase 1 Stadium Authority study, published February 24, 2017, examined the current condition of Pimlico, its potential future use, and the estimated costs for renovation or rebuilding. 

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Horseracing in South Korea: A Global Vision

By Alex Cairns

On the evening of January 19, 2017, something special happened in Dubai. To the casual spectator it might have seemed like any other horse race, but to viewers in the Republic of Korea, the 1200m District One Handicap at Meydan was a watershed moment in their nation’s sporting history. The winner of this race was Main Stay, a four-year-old colt trained by Kim Young Kwan and the first Korean-trained horse to win at a significant international meeting since Thoroughbred horse racing was established in South Korea almost 100 years ago. What is more, the winner carried the (KOR) suffix in the racecard, underlining the fact that the country is now capable of producing internationally competitive Thoroughbreds.

Yet as Main Stay crossed the line on that fateful night, even switched-on racing enthusiasts and professionals with a broad international perspective may have asked, “So they race in Korea?”

Indeed, this otherwise significant nation’s racing industry remains relatively unknown across the globe. Recent developments have brought Korean racing into the spotlight however, and notable domestic and international expansion projects put in place by the Korea Racing Authority (KRA) could soon see it established as an influential player on the global racing scene.

CONTEXT

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In sporting terms, South Korea would most commonly be associated with taekwondo, baseball, soccer, or even figure skating. Yet horseracing is in fact the country’s second most popular spectator sport after baseball, with annual attendance of over 15 million. What is more, betting turnover stands at around $6.5 billion USD per annum, the seventh-highest in the world, meaning that horseracing in Korea already boasts figures that some of the most celebrated racing nations can only dream of.

Despite massive obstacles such as Japanese occupation (1910-1945), partition (1945), the Korean War (1950-53), and an ongoing state of tension with the North, horseracing in Korea has succeeded in following the same upward trajectory taken by Korean society as a whole through the second half of the 20th Century. Admittedly, it remains relatively underdeveloped compared to other jurisdictions in certain respects, such as horsemanship and welfare, but has come a long way in a short period and continues to develop at a rapid rate.

With formalized racing having first begun in Korea in 1922, it was only in the 1980s that races were limited to Thoroughbreds and subject to regulation of an international standard. Today, Korean racing runs like a well-oiled machine, with a highly developed administration harnessing advanced infrastructure so as to offer an attractive sporting product. There are serious challenges facing the sport in Korea, too, although difficulties overcome so far suggest that these in turn will be surmounted given time.

CURRENT STATE

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Only flat racing takes place in the country and there are three racecourses: one in the Seoul suburb of Gwacheon, another in the southern city of Busan, and a final track based on the volcanic island of Jeju, some 50 miles to the southwest of the Korean peninsula. Racing takes place year-round, with regular fixtures at Seoul on Saturdays and Sundays, Busan on Fridays and Sundays, and Jeju on Fridays and Saturdays.

Races in Jeju are limited to an indigenous breed of pony. These stocky beasts may cause some amusement when urged to a full gallop by their seemingly over-sized riders, but pony racing in Jeju is no joke, with serious betting turnover registered and an important specialized breeding sector supporting the on-track action.

The Thoroughbreds race at Seoul and Busan and are stabled and trained at the tracks, which are both sand-based ovals. Horses are limited to racing at their home track, except when it comes to some of the season’s most significant races, and there is a healthy rivalry between the two cities’ racing people.

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Workers' comp insurance

By Denise Steffanus

Workers' compensation, like death and taxes, is a fact of life horsemen must accept. Owners and trainers are required to have workers' comp insurance to care for their injured employees. Even freelancers, such as some exercise riders and hotwalkers, need the security of knowing they will be taken care of if they are hurt on the job.

With medical and drug costs skyrocketing, premiums have soared to a level that makes it difficult for some trainers to stay in business. Geography also comes into play. Areas of the country where medical costs are the highest, such as New York, have the highest workers' comp premiums, while Kentucky is among the lowest. New York has the second-highest cost of living in the nation, and Kentucky has the second lowest.

Everyone seems to have skin in the game: underwriters, insurance brokers, state insurance departments, racetrack management, claims managers, owners, trainers, and injured horsemen. The issue is so complex that whoever you call to discuss workers' comp is likely to refer you to someone else for answers. At the end of the day, after several phone calls, you probably will be more confused than when you started.

The nuts and bolts of workers' comp

The most simplistic explanation of insurance is that the total amount of premiums collected by a plan must be adequate to pay all the claims filed against it. All employers in a workers' comp plan share the risks. The goal is for the plan to have an overall safety record so the fewest possible claims are paid out.

For a workers' comp plan to be fair and effective, trainers must report their employee rosters accurately and honestly, and all stables in the plan must operate in the safest manner possible to reduce claims. Insurance is a form of socialism, where everyone contributes to the premium pool but only a few reap those benefits when an adverse event happens. The more individuals who do NOT file a claim, the greater the safety rating for the plan, which results in a reduced risk and eventually lower premiums.

Before a company can offer insurance, it must have enough start-up assets (in money or collateral) to support anticipated claims until enough premiums come in to create a pool to pay claims. The insurance company invests a portion of those premiums to increase the plan's assets, and it may purchase insurance from a third party to protect itself against large, catastrophic claims.

Every occupation falls into a workers' compensation class code. Codes are rated based on risk, the number and severity of on-the-job injuries the class experiences. That rate determines the premium needed to insure that employee, based on demonstrated risk. Among racetrack occupations, exercise rider is the most dangerous, even more dangerous than jockey.

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Rick Violette Jr. has been working on the workers' comp situation in New York since the 1990s

Trainer Rick Violette Jr., who served as the president of the New York Thoroughbred Horsemen's Association from 2008-2017, has been working on the workers' comp situation in New York since the 1990s. Violette explained that although jockeys take significant risks while performing a perilous job, statistics show that they are less likely than exercise riders to have accidents because they work in a more controlled environment—policed by outriders, followed by an ambulance, and all the horses travel in the same direction around the track. For an exercise rider, the environment can be chaotic.

"In the morning, there might be 100-150 horses on the racetrack," Violette said, "all with different experience, all going different speeds, going counterclockwise and clockwise on the racetrack, horses coming out of the gate. So when you look at that, it's pretty black-and-white how the morning exercise time is much more dangerous and fraught with injury than the afternoon."

Another problem for workers' comp coverage is that many exercise riders aren't employees of a particular stable, but rather get on horses for several trainers who pay them by the head, often in cash when they get off the horse. The extent of the trainer's knowledge about the rider might be only his (or her) first name and how well he handles a horse. If that exercise rider is injured, complications can arise when he seeks to file a claim and none of his trainers have him listed on their workers' comp policy.

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Career Makers - The Role of Jockeys’ Agent

By Ed Golden

Manager, mastermind, guru, agent, call him what you will, Colonel Tom Parker was the man who made Elvis Presley.

The King of Rock and Roll’s talent was only exceeded by his raw sex appeal, and Parker, self-proclaimed military officer or not, saw to it that the world would march en masse to a cadence called by Presley’s signature tones.

Elvis died more than four decades ago, but not before he and Parker reached the apex in gold and glory, still yielding riches of infinite proportions all these years later.

In racing, it’s not clothes that make the man; in part it is the agent directing the jockey. Agent and jockey provide a service to trainers, a salesman offering a product.

An agent in this instance is best described as a person empowered to transact business for a jockey. On any given morning at any given track, condition book in hand, there they are, Monty Hall wannabes, ready to make a deal.

A standard arrangement calls for an agent to be paid 25 percent of a jockey’s earnings, but that percentage could vary. If the rider’s services are in great demand, he could pay the agent a smaller percentage. Or, if the agent possesses the persuasive prowess of a Colonel Parker, he could warrant the higher percentage. It’s Economics 101.

Back in the day, agents were not prominent, if in evidence at all. Major stables employed contract riders and in order to ride for an outside trainer, the jockey had to receive permission from his contract stable to do so.

Now, the vast majority of riders have an agent, although jocks on a restricted budget with limited mounts have been known to represent themselves.

Agents wear many hats, including those falling under the Three P’s: politician, psychiatrist, and pacifist, and they can be a boon to racing departments.

“In my career around the country at tracks on both coasts, I’ve worked with agents who mostly helped the racing office,” said Rick Hammerle, Santa Anita’s vice president of racing as well as racing secretary. “We’re both trying to accomplish the same thing: get horses into races. Working with agents and sharing information about trainers’ intentions can help us achieve our goal.”

Even though it’s his first tour as an agent, Mike Lakow has racing’s paradigm of Tom Brady in jockey Javier Castellano, a 40-year-old Venezuelan at the zenith of his career. The reigning four-time Eclipse Award winner, a world class rider be it at Dubai or Churchill Downs, was inducted into racing’s Hall of Fame in 2017.

Still, for an agent, the pressure is always on.

Although he never trained, the 60-year-old Lakow (pronounced LAKE-ow) otherwise has an extensive background enabling him to understand ramifications that simmer just below racing’s surface.

“When I was working as general manager at Hill ‘n’ Dale (a major breeding farm in Kentucky),” he said, “I owned a quarter of one horse, and believe me, it’s a tough deal, so I respect all the owners, as well as trainers.”

Lakow, now based on the East Coast, was racing director at Santa Anita  before Castellano hired him in August of 2016. Lakow also was racing secretary for the New York Racing Association (NYRA) from 1993 to 2005, served as a racing official in Florida and Dubai, and was hands-on with horsemen regularly at Santa Anita’s Clockers’ Corner during his sojourn at the historic Southern California track.

“I’m incredibly fortunate to represent Javier,” Lakow said, “because he’s a professional who’s liked by everybody. We have no issues as far as not being able to ride for one trainer or one owner. He’s won four Eclipses, done it all, and now we’re trying to focus on riding the top horses.”

Stress and pressure are standard fare in the workforce, whether you’re Donald Trump unceasingly enduring “fake news” attacks 24/7 or a McDonald’s minimum wage burger slinger serving up $2.50 McPicks. It’s all relative.

That includes Lakow, although he is averse to pointing it out, lest he might be looked upon as a malcontent, what with two chickens in the pot.

“People who see all the money we’re making might wonder how being agent for a top jockey could be stressful, but it is,” Lakow said. “I’ve been in administrative positions in racing for many years, with NYRA and at Santa Anita, but if you happen to make a mistake here and there, you move on.

“It affects the company, but it doesn’t affect an individual. If I happen to make a mistake with Javier, it affects him.

“It’s impossible to keep everybody happy. Any agent will tell you that. Fortunately, Javier is level-headed, so I’m in a good position. That’s not the case with some other jockeys, from what I’ve heard. I respect Javier and Javier respects me, but like I’ve said, it’s impossible to keep everybody happy.

“You try to do the right thing. I respect all the horsemen who give us calls, because it’s a tough game for trainers. Horses will fool you, so I understand the stress trainers and owners face. I don’t look at this as a one-shot relationship.

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Tom Knust

“Luckily, I have the respect of horsemen because of my work in New York and California. When I started with Javier, horsemen gave me the benefit of the doubt. I was a bit green and I think other agents probably thought, ‘Look at this guy. He starts a job and has a top rider,’ but I’m lucky because I didn’t burn any bridges. I get along with most people and treat everybody with respect. That’s what’s made it so much easier for me.

“In the long run, honesty is the best policy, and I’m always honest. It hurts sometimes, but in the long run, I think it helps.”

Another agent who has been on both sides of the wall is Tom Knust, former racing secretary at Santa Anita and Del Mar, now booking mounts for two-time Kentucky Derby-winning jockey Mario Gutierrez.

“One thing I learned quickly as an agent is that if you have a good rider, it makes things pretty easy, and if you don’t, it’s very, very difficult,” Knust said. “That’s the key, whether you’ve had experience in the racing office or you’ve just come in off the street.

“If you give a call, you want to honor it, although situations develop where you’re in a bind and ask a trainer if he can help you out, but if he doesn’t, you’ve got to keep your word and ride his horse.”

An additional plus comes from riding regularly for a winning trainer, in the case of Gutierrez, that being Doug O’Neill, who saddled I’ll Have Another and Nyquist to capture the Kentucky Derby for principal owner J. Paul Reddam in 2012 and 2016.

“It’s absolutely an advantage, 100 percent, if you have a go-to stable that wins a lot of races, like O’Neill,” Knust said.

As a female, Patty Sterling is in the minority among agents, but with her extensive familial background in racing, she is looked upon as one of the boys.

Her late father, Larry, trained 1978 Santa Anita Handicap winner Vigors and is the father of jockey Larry Sterling Jr. Patty’s uncle, Terry Gilligan, rode and trained, and his brother, also Larry, made his bones as a rider, too. Now 80, he is the quick official at Santa Anita and Del Mar.

“It’s probably a lot easier for a woman in this business than it used to be,” said Patty, 54, a former clocker. “I don’t see that as a problem.

“Being an agent is almost parallel to training horses; it’s very similar. Right now, it seems owners pick the jockeys more so than they ever did before, when trainers were deciding who to ride.”

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Better Owner-Trainer Relations

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Published in North American Trainer, Winter 2017 issue.

The owner-trainer relationship is the core of racing. The owner supplies the horses, and the trainer supplies the know-how to manage them. It's a simple concept, but sometimes things go awry.

Some owners go through a succession of trainers with barely time for the horses to settle into a new routine before moving them again. If the owner has more than a couple of horses, the move is disruptive for the trainer, also. And the owner may develop a reputation as a difficult client who could pull the horses at any time.

Racing Hall of Fame trainer Jack Van Berg had 220 horses snatched from him one day because he was charging $25 a day and a young trainer, whom Van Berg had mentored, offered owner W. O. Bridge a $20 day rate.

"I won 368 races for them in 1974 and on January 1, 1975, they took 220 horses away from me. My friend took them over," Van Berg said.

The racing icon devotes an entire chapter to the incident in his book, Jack: From Grit to Glory.

Asked about owners who habitually change trainers, Van Berg said, "That's their prerogative to switch where they want to, and they'll see a trainer get hot and win a few races, and they'll want to put their horses over there."

Terry Finley, founder and president of the racing syndicate West Point Thoroughbreds, said owners have the right to manage their horses however they choose. Some changes are for the best, some are not.

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Social Media Horse Sense Part I: The Thoroughbred Trainer in the Digital Age

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Published in North American Trainer, Winter 2017.

This is the first article in a two-part series on social media for Thoroughbred trainers. It examines social media usage and issues faced by trainers who wish to promote their business online. Part II will focus on broader industry issues and how trainers may use social media to affect positive change and ensure the future of the sport.

In less than 15 years, social media has changed the way Americans meet, work, shop, communicate, consume news and entertainment, find romance, and more. Few aspects of our lives have been left untouched by this remarkable phenomenon. Social media has made a limited group of people incredibly wealthy, empowered others to create new businesses or expand existing ones, and made various individuals famous or infamous.

Simply defined, social media consists of online networks that allow users to connect, create, communicate, and share in virtual communities. And Americans cannot seem to get enough. The Pew Research Center’s annual Social Media Fact Sheet on 2016 includes the following sobering statistics.

• 69% of Americans use some type of social media.

• The number of Americans using social media increased 64% in the 11 years from 2005 to 2016.

• 68% of Americans use Facebook, the most popular social media platform.

• Many Americans, including three-quarters of Facebook users, log onto social media sites as part of their daily routine.

• Most American social media users utilize more than one social media platform.

• The growth of social media is likely to remain steady for years to come.

Meanwhile, Google reported that 58% of Americans had watched at least one video on YouTube in 2016. Though some refer to YouTube as a video delivery platform, it is also a social media entity that allows commentary and conversation.

As a trainer, you may be one of the hundreds of millions of Americans who is familiar with the ins and outs of social media. You may be an occasional, routine, or even heavy user. Alternatively, you may be a hold-out who is too busy or privacy-oriented. After all, the Handbook for Thoroughbred Owners of California has described many horse trainers as “secretive” individuals who “keep to themselves.” Regardless of your personal opinion of social media, it is worthwhile to step back and examine how social media may assist in expanding your training business or, alternatively, present potential risks including both civil liability and criminal violations.

As a trainer, unless you have a full roster of owners, it is wise to have a social media presence to promote your business. Consider the many positives:

Getting Found

Traditionally, personal recommendations and referrals have been the method that owners use to learn about and connect with trainers....

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Why the grass is getting greener in New York

FIRST PUBLISHED IN NORTH AMERICAN TRAINER AUGUST - OCTOBER 2017 ISSUE 45

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PHOTO GALLERY

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Thoroughbred racing on Long Island is changing so fast it’s hard to keep up. As the New York Racing Association (NYRA) made its annual seven-week summer pilgrimage to Saratoga, the future of racing at NYRA’s two Long Island racetracks, Belmont Park and Aqueduct, remains, in a single word, complex.

NYRA’s recent, stunning announcement that it was converting Aqueduct’s 40-year-old inner dirt track into a second turf course – the first major renovation of a NYRA track in decades – immediately prompted questions about Belmont Park and possible reconstruction that could close racing there for a year or longer.

It’s hard to believe that it’s being done solely to add a few grass races in April and November if the weather allows it. Regardless, having winter racing on Aqueduct’s main track will make it much more attractive to horsemen simply because it allows several different distances of races than the inner dirt track allowed.

The ongoing interest of the New York Islanders in building a new hockey arena on Belmont Park property may or may not have a lot do with Belmont Park’s future. Reportedly, a new arena would not affect Belmont’s existing grandstand and clubhouse. Reading that situation is a difficult task since New York State is involved and will have the ultimate say.

Then there was a bill that passed the New York State Senate in mid-June to allow evening racing at Belmont Park. The legislation didn’t make it out of the assembly but will be reintroduced next year. Meanwhile, in an interview with North American Trainer, NYRA CEO and President Chris Kay said that night racing is one of his priorities at Belmont.

Other things on Kay’s agenda, in conjunction with NYRA’s new Board of Directors named on June 7th, are incentive programs for two-year-olds and marathon turfers; making a concerted effort to attract European shippers and serve bettors in Japan; and a reshuffling of major stakes to be held on one day. Also, NYRA introduced a new multiple-race wager and a new partnership platform for messaging-enabled commerce.

What’s next?

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No Place for Negligence: Limiting Your Liability in Unique Situations

“If a horse gets out of control and causes injury on the backside, in the paddock, or winner’s circle, who is liable? You, as the trainer? The owner? The track? All of the above?”

FIRST PUBLISHED IN NORTH AMERICAN TRAINER AUGUST - OCTOBER 2017 ISSUE 45

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PHOTO GALLERY

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Tom was brimming with confidence as he and the groom led his hottest prospect into the winner’s circle following a win in an allowance race on the turf.

An experienced trainer, Tom was sure that everyone’s hard work would pay off, and it had. But in a matter of moments, his excitement and exuberance turned into concern. In addition to horses, grooms, and trainers, the winner’s circle was crowded with excited and exuberant spectators, many of whom appeared to have spent little or no time around horses. Tom knew that group ticket packages often included photos in the winner’s circle. He appreciated the importance of promoting the sport and creating new fans. But this seemed like too much.

Tom, the groom, and their horse were soon surrounded by excited guests. The trainer and the groom warned people not to get too close. They tried to be polite and answer questions as the visitors snapped pictures with smartphones. Unfortunately, one would-be fan didn’t realize his flash was on, and three bright bursts of light erupted just a few feet from the horse’s face. The Thoroughbred spun and kicked the man in the chest, sending him crashing to the ground. Tom and the groom managed to get the horse under control quickly to prevent additional injuries. The EMTs arrived and rushed the man to the hospital.

Tom’s big day literally ended in a flash. A few weeks later, he was served legal papers. The injured man was suing him for negligence.

The situation I have just described is hypothetical. However, the legal implications are very real. As a trainer, you are responsible for large, powerful, and often high-strung animals in a variety of situations; situations that are far more fluid and complex than a casual observer could possibly realize. If a horse gets out of control and causes injury on the backside, in the paddock, or winner’s circle, who is liable? You, as the trainer? The owner? The track? All of the above?

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Anatomy of a Training agreement - Why owners and trainers need to put it in writing

First published in North American Trainer issue 44 - May - July 2017

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How the NSA's handicap system has bolstered the sport

First published in North American Trainer issue 44 - May - July 2017

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Continuing education for New York's racehorse trainers

First published in North American Trainer issue 43 - February to April '17

Trackside - news from across North America and beyond

First published in North American Trainer issue 43 - February to April '17

The art of yearling sales preparation

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This article appeared in - North American Trainer Issue 41