by Frank Petramalo
By now just about everyone in the mid-Atlantic knows there is a dispute between the Virginia Horsemen’s Benevolent and Protective Association (HBPA) and Colonial Downs over the length of the 2014 race meet. For the past ten years we raced in the summer, usually for eight or nine weeks with from thirty to forty-five days of racing. The length of the race meet was determined by a simple formula negotiated by the VHBPA and the track. The total sum in the horsemen’s purse account was divided by $200,000, which we agreed was a reasonable average daily purse amount to attract good horses and keep us competitive with our neighbors. The resultant number became the number of race days.
This year Colonial Downs reneged on our formula. Instead of agreeing to race thirty days/eight weeks, as determined by available purse funds, the track first proposed running twelve days/four weeks and later dropped the number to six days. Not surprisingly there was no agreement on a new horsemen’s contract when the old one between the VHBPA and Colonial expired at the end of 2013.
[pullquote]Colonial’s desire to radically reduce Virginia racing has nothing to do with quality and everything to do with cutting the track’s expenses.[/pullquote]Under state law, without a new horsemen’s contract Colonial cannot offer wagering on thoroughbred simulcast signals at its eight off track betting shops. That unfortunately alienates customers and creates revenue loss for Colonial and the horsemen’s purse account.
At its March 17th meeting the Virginia Racing Commission proposed a compromise to break the impasse over race days. The VRC suggested a twenty-one day (Friday, Saturday, and Sunday)/seven week period. That’s acceptable to the VHBPA even though it is nine days shorter than we originally wanted. Colonial, however, is balking. Its purported reason for doing so is not credible.
Colonial claims it wants to improve “quality” by reducing racing to six days, and thereby increase purses to attract “better” horses. But its own experience refutes that notion.
Last summer, when the VHBPA reluctantly agreed to reduce to twenty-five days/five weeks from thirty-two days/eight weeks, as an experiment to test Colonial’s hypothesis, the results were disastrous. Even though the average overnight purse increased by 28% all source wagering handle dropped 23% and attendance decreased 25% compared to 2012’s thirty-two day/eight week meet. The shortened meet attracted the fewest number of horses in memory. Total starts per horse dropped 26%; average starts per horse dropped 20%; and, average starts per Virginia-bred horse decreased 25%.
In a bit of irony Colonial President Ian Stewart last week noted on Colonial Downs’ Facebook page that in 2004 the track “put on a quality thoroughbred meet,” which that year was managed by the Maryland Jockey Club. The 2004 meet was thirty-five days/seven weeks with average daily purses slightly above two hundred thousand dollars. The race conditions and the level of horses competing were no different from those in recent years. Makes it tough to figure out why a 2014 twenty-one day/seven week meet, with average daily purses of over two hundred sixty thousand dollars, would not be a “quality” one in Stewart’s terms.
Colonial’s desire to radically reduce Virginia racing has nothing to do with quality and everything to do with cutting the track’s expenses. Last year the track saved nearly five hundred thousand dollars, mostly in payroll and marketing expenses, by reducing from thirty-two to twenty-five days.
Colonial would undoubtedly save even more by racing only six days. It leads one to think the current management’s business plan is to cut expenses, run a few live days to retain its VRC license, and operate Colonial’s eight profitable off track betting shops and its on-line wagering company, EZ Horseplay, twelve months a year.
While no one begrudges Colonial a profit perhaps we should bring back MJC to manage the track. Maybe it can better balance the profit motive with the Virginia Racing Act’s mandate to “promote, sustain, and grow” horse racing in the Commonwealth.
Frank Petramalo is the Executive Director of the Virginia Horsemen’s Benevolent and Protective Association.
NOTE: The Racing Biz offered both the HBPA and Colonial Downs the opportunity to submit an op-ed to run today. Colonial Downs did not do so.
The answer to the question is “yes.” I would be willing to give up racing completely in 2014 if we could get rid of Jacobs Entertainment from the Commonwealth. New track ownership and management could operate with a clean slate going forward.
The proposal suggested by the Virginia Racing Commission calling for 21 days of racing over a 7 week period is the right, reasonable solution. It is a solution that should appease both sides if they care at all about maintaining a viable horse racing product in Virginia. When the Racing Commission meets on Thursday, please get that to a vote and end this mindless bickering once and for all. If Colonial Downs does not agree or has some more hideous suggestions such as a 6 day meet, then all horse racing enthusiasts throughout the Commonwealth need to rise up and take action to throw the scoundrels out! As I have stated before, reducing race days has nothing to do with improving the quality of racing. If you believe that, I’ve got some nice horse manure I’d like to sell you. It is all about cutting expenses. Colonial Downs is selling a lie, but nobody is buying into it. Horse racing fans, employees, bettors, customers all say enough is enough!
What needs to happen at thursday’s meeting is the VRC needs to name a new horsemans group to negociate with colonial. Then the US Congress needs to reopen the interstate horseracing act and amend it so that jackass’s like Virginia”s horsemen can’t prevent every handicapper in the state from playing horses. Have you losers thought about what you will do if colonial tells you to get lost and redevelops the property? Good luck finding someone else to drop 40-50 million dollars to build another track. Especially when they know they will have to put up with you! If you had one ounce of common sense you would immediately ask the general assembly to waive this stupid law and allow the otb’s to open. This would be an act of good faith as well as allow the fans to start funding the industry again. You should already know this is how your purse account is funded. Have you ever heard the term cutting your nose off to spite your face! Look into it!!
Hey, let’s face it, both sides in this dispute are at fault. Colonial’s stance has nothing to do with improving the quality of racing and everyone knows it. It’s all about cutting expenses. Cripes, you can’t even purchase a Daily Racing Form at their live track or any of their OTBs. They do no promotion and have already cutback every aspect of their operations to the bone, replacing it with no overhead gimmicks like EZ Horseplay.
While this dispute was at its peak, the head of the Horseman’s group takes off for a 3 week vacation overseas. How do you think that in-you-face snub was viewed by horse racing enthusiasts throughout the Commonwealth? Then, the horsemen go and pull the plug on thoroughbred racing at all the OTBs. It is unfortunate, but its the only leverage they have in the current dispute. I’m sure Colonial has lost a ton of money already, but the way they operate, do you really think they care?
D-Day is here! It is time to resolve differences and for the stalemate to end. Come up with some racing dates you can both live with and be done with it!
A couple thoughts…. 1) Very much doubt that Congress is opening up the IHA in order to prevent horsemen’s groups from having control over the signals, nor should they. It’s the only real leverage horsemen have, and it is used sparingly for the very reason HB Compton points out – it harms the horsemen, too. 2) I think Fan is right in that there is blame to go around – you hate to see a situation devolve as far as this one has; and 3) I don’t think “racing enthusiasts” should view the head of the horsemen’s group’s vacation as a snub – he had a long-planned vacation, and it’s not as if he just up and left. And finally… yes, it’s crunch time now, and we understand that the sides have been in discussions — we hope, productive discussions.
easy man, don’t blow a gasket. get used to the 4 hour ride to west virginia.
It’s the same old thing, the 1% screwing the 99%. Somebody must be taken some kind of kickback.