As far as the Standardbreds are Concerned we Need to Rethink............

For the last three weeks I have been digging around trying to find out more on just how the standardbreds managed to get back 6 race dates in the fall when their handle fell dramatically January through April. For their 2012 meet they have been granted 82 days over 10 months, 6 more than 2011. Further the Standardbred sector is asking to run Fridays and Sundays during this period as their first choice completely overlapping with the thoroughbred meet. This overlapping thing bothers me greatly.

How did this come to be? Here is the chain of events as I see it…………

August 13, 2010 – Portion of letter posted on the GPEB section of the
BC Government website by Derek Sturko

“For the remainder of 2010, GCGC has requested that GPEB reduce the number of assigned race days for the standardbred sector from 37 to 23 days during the period between October 15 and December 31, 2010.  This reduction will not only avoid any overlap between British Columbia’s thoroughbred and standardbred racing seasons, but will also improve the value of purses available for distribution among the remaining standardbred race dates”

November 24, 2010 – Portion of letter posted on the GPEB section of the BC Government website by Derek Sturko

“Race seasons for both breeds will use performance measures to monitor the viability of race events. The 2011 standardbred race season, as agreed to and supported by both GCGC and HRBCS, is as follows: Three days of racing from January I , 2011 to April 15, 2011; Minimum two days of racing (Friday, Sunday) from October 7, 2011 to December 31,2011; and if performance measures for "demand" (i.e. improvement in betting) and "supply" (i.e.number of horses started and number of BC owned horses) are achieved during the spring period, Saturdays during October 7 to December 31 will be added for a three day race week.

April 20, 2011 - BC Horse Racing Industry Management Committee
Record of Decisions as posted on the GPEB Site
Agenda Number 6 – Lead Raj Mutti and Jim McGrogan

Topic
Standardbred performance measures
Decision
“Metrics for the January to April standardbred racing period were not met. Raj Mutti to draft a letter advising that the metrics were not met and that as a result, the race dates dependent on achieving these metrics will not be held”

May 6, 2011 – BC Horse Racing Industry Management Committee
Record of Decisions as posted on the GPEB Site
Agenda Number 1 - Lead  Derek Sturko

Topic
Harness Racing BC (HRBC) proposal to expand 2012 race schedule from 2011 parameters (6 1/2 months, 70 days with additional days conditional on metrics) to a 10 month, 82 race date format

Decision
“Committee authorizes Derek Sturko to enter discussions with HRBC to consider and potentially establish the parameters of an expanded 2012 standardbred season. Gar Campbell and/or Jim McGrogan may participate in the discussions. Derek advised any change in the proposed approach to the 2012 season will be presented to the Solicitor General before it is considered final. The Committee recognizes that, as a gesture of good faith, some of the optional race dates in the fall of 2011 that were to be eliminated may be added to that season (despite the standardbred sector not fully achieving all of the metrics on which those days were to be based).

Decision was by majority with minority dissent. Jim McGrogan abstained.
Glen Todd opposed.

June 07, 2011 Portion of letter posted on the GPEB section of the BC Government website by Derek Sturko

Re: 2012 Standardbred Race Season

I am writing concerning the 2012 standardbred race season. At the request of Harness Racing BC, the BC Horse Racing Industry Management Committee agreed to reconsider the circumstances of the 2012 standardbred season.

The standardbred season had been proposed to follow the format set in 2011, with a season of approximately six and a half months (including January to mid-April 2012 and October to December 2012). Given the difficulties being experienced in the standardbred sector, most notably the actual and anticipated departure of several breeders and others involved in harness racing, the Management Committee agreed other factors had to be considered. While it is actually the Great Canadian Gaming Corporation (GCGC) which proposes and manages race dates in BC, GCGC has agreed to abide by the recommendations of the Management Committee on this matter because it believes the Management Committee’s overall leadership is necessary for the industry’s survival. On May 10, representatives from the Management Committee met with representatives from Harness Racing BC to discuss this circumstance. As part of the discussions, Harness Racing BC agreed and acknowledged that: Government will provide no additional funds as a consequence of any change in the season;

Changes to the 2012 standardbred race season would be on a one year basis. There must be measures to determine the financial and other impacts of the extended season on the industry;

2012 Standardbred Season and Considerations

As a result of these discussions, on a one year basis, and subject to approval by the Gaming Policy and Enforcement Branch (GPEB), the 2012 standardbred race season will be 82 race dates, essentially over a ten month period. The Management Committee will determine the specific period of the season in order to minimize overlap with the 2012 thoroughbred season and will consult with both breeds in order to make that determination. The performance measures that will be used to assess the impact of the 2012 standardbred race season on BC’s horse racing industry include: There can be no apparent negative impact to thoroughbred wagering during the overlapping portion of the seasons. The specifics of this measure will be determined by the Management Committee. A 2% increase in 2012 standardbred wagering (avg. per race day) compared to 2011; and an average of 8 horses per race for all races run in 2012 (note: “uncontrollable” race day scratches will not be included in this calculation).

Finally, it was agreed that the Management Committee will consider any financial implications that GCGC can demonstrate as a result of an extended 2012 standardbred season (compared to the 2011 season) in its determination of 2012 financial allocations. The Management Committee will consult with both GCGC and HRBC in that regard concerning any real costs that GCGC can demonstrate it will bear as a consequence of the lengthened 2012 standardbred season prior to finalizing its decision.

June 08 2011 - Letter from Harness Racing BC posted on their website

TO: Kevin Falcon, Shirley Bond and Rich Coleman

RE-2012 Standardbred Race Season Management Letter

We would like to thank the Government notably Minister’s Bond, Falcon &

Coleman for listening and acting on our concerns in the Standardbred Industry. By

your actions, you have saved thousands of jobs and kept families together.

We have already seen a 10-15% increase in our breeding industry and we will

start shortly to encourage new drivers and trainers to come to B.C. with a new 10

month season. Our Backstretch has new energy with many people coming forward with new ideas and willing to work to improve our industry.

Thank you,

Doug McCallum

CEO, Harness Racing B.C

June 17, 2011 - Letter from Harness Racing BC posted on their website

Our 2012 race season will be 82 race dates over a ten month period. Our Board has recommended to the management committee our first choice is taking off June and July. Our second choice would be taking off January and August. The two days per week we are recommending are Friday night and Sunday afternoon. The Management Committee will determine the specific period of the season in order to minimize overlap with the 2012 Thoroughbred season and will consult with both breeds in order to make that determination. -Doug McCallum

So these are the questions I have to ask myself…………………

Why has the Committee agreed to a 10 month meet overlapping the Thoroughbred sector when they clearly had objections to this in the August 13, 2010 posted letter.

The Committee had set in place a set of performance measure standards as evidenced by the November 24, 2010 letter. Why were these standards not followed? Why when Raj Mutti gave his presentation on April 20, 2011 to the committee did they not listen?

How in good conscience could the Committee vote yes on May 06, 2011 except for Glen Todd who voted no, into granting more days to the the Standardbred sector in view of all of the above.

The shortfall of $840,000 that the Committee identified were losses coming primarily from the Standardbred sector. Why did the Committee wait so long to act while week after week went by with the Standardbred handle in January through April of this year falling so dramatically? As far as the above shortfall is concerned, because of the way we lump everything together is that the Thoroughbred sector paid $80,000 more than the Standardbreds did in making up for the existing and projected loss. When is the Committee going to adjust the sector allocations commensurate with actual handle numbers that the Thoroughbred and Standardbreds each produce? But don’t take my word on this one. Just contact CPMA Canada and ask for the last 4 months of handle reports. But sit down when you read them.    

It is clear to me that the above is a political decision by the BC Government. This is evidenced by the letter published by the Standardbred CEO Doug McCallum not thanking the Committee for their positive decision on the standardbred behalf but Minister Shirley Bond, Minister Rich Coleman and Minister Ian Falcon the British Columbia Finance Minister from Surrey-Cloverdale. Not political you say............and I have a full brother to Secretariat for sale!!!!!!! 

Now as far as keeping Fraser Downs open and running with live racing for 10 months as opposed to 61/2 months, who is going to pay for this? Great Canadian?  Why should they? They did not want any of this in the first place. No if anything, the extra money that Great Canadian will most likely request has to come from the Standardbred’s portion of the allocation but not from the total allocation.   

So what is the bottom line in all of this? Well for one thing I will be doing a lot more asking for additional information from the powers to be. I feel strongly that little regard was given to the Thoroughbred sector on how a 10 month overlapping meet would affect them, especially running head to head Friday nights and Sundays. If you do the math on this, the overlap can be as high as 40% depending on what our meet dates look like for next year. There are only so many gambling dollars out there and we have all learned a valuable lesson the last 20 years as we have watched the Lottery Corporation grow as we shrank.

Now do not misunderstand me. I hold no grudge whatsoever against the Standardbred organization. Whether they run 70 days or 100 days all the more power to them. But the two sectors must stand on their own merits. We need to rethink this whole thing through. Yes the Thoroughbred sector has its own problems but I feel that we are slowly digging ourselves out from under. I just do not want to be told 10 months from now……..oops looks like the Standardbred solution is not working and we get dragged down once again.

Michael R Bye
G&G Stable