A truly bad day for N.J.
 

This is really one of the saddest days for me and many others. The thought that there may never be horse racing again in New Jersey was something I never thought could happen.

I will never understand how an industry could run for over 30 years and then be given up on so quickly and callously with disregard for people’s jobs and families.

I’ve seen them so many times at the track and they are always courteous and friendly to me. Now they too will join the 10% unemployed people of this state.

The horse farms spread out through central jersey will also take a hit from this incredibly bad decision.

What really gets me is that there doesn’t seem to be anyone fighting to save the industry in N.J. Not even to save themselves or their own jobs. Where is the response from the horse racing industry?

The only one who seems to know what the right thing to do was former Gov. R. Codey. He knows that the slots put in the tracks is the right idea and you will find that most people in northern New Jersey would support the it.

Instead our new Gov. created some puppet panel to research the casino and racing industries knowing full well what the outcome would be. He chose to sink more money into a corrupt, run down city and gambling industry that has 6 out of 11 casinos in bankruptcy. He told us about 38,000 people who would lose their jobs from A.C. but never once mentioned the thousands who work in the racing game that would lose their jobs. Now he wants to invest more into a multi billion dollar disaster named Xanadu that nobody in Bergen County even cares about. (More money down the toilet)

This is the same guy who shook one hand with the people in Monmouth Park and is now stabbing them in the back with the other

Knowing the history of A.C. it isn’t hard to see what happened here again. (Not that I would ever suggest that some criminal element would ever be involved with the N.J. gambling industry)

So here is the question:

What can we do to not let this happen? Is there anything we can do at all?

Rich - I agree with you. Very sad day.

I used to go to Garden State Park a lot when I was a teenager and through college. Racing has been getting squeezed for a long time. Atlantic City wants to kill it and now they might have the perfect excuse: the screwed up budget -- which must be fixed. But there must be a way to make racing work and the slots sound like a good idea, given how far from A.C. the two operating tracks are.

http://www.derbytrail.com/forums/showthread.php?t=37270 for complete story and other comments on this.

From the biased articles I have been reading it seems that the Meadowlands is in the most danger of closing. There have been few details on MP other then the state would like to lease it or sell it. I'm not an accountant, but I am smart enough to suppose that there is some creative bookeeping going on here. I'd be willing to bet the state makes plenty of money from MP. It's beyond me how that operation could be losing $10 mil. I just do not buy it.

And all this bad press is not going to help. I'm so sick of hearing about how horse racing in NJ is dying. It's utter BS. Tell that to the thousands of people who have been enjoying weekends at MP this year. I'll be there Saturday for Rachel along with 15,000 others (guessing). This is typical of how this half-assed state does things. They kill everything I love(d) about it. My grandparents are rolling in their graves 5 miles from MP.

I encourage you to read the hoseracing section of the actual report here:

http://www.nj.gov/governor/news/repo...ent_final2.pdf

It's actually kind of positive regarding the thoroughbreds; not so much for the trotters. Not surprisingly the press has latched onto one segment of the report as if it's a done deal.

I was a resident of South Jersey, and I haven't had the pleasure of going to Monmouth yet. I plan to sometime in the next few weeks.

But I remember Atlantic City Race Course, which is now open turf only for 6 days as a last ditch effort to keep it from closing permanently and becoming yet another shopping mall.

And Garden State Park, which used to have both trotters and thoroughbreds depending on what time of year it was. That's a shopping mall now too.

So from the south Jersey resident's point of view, racing has been dying in NJ. Of course we are closer to Atlantic City and our residents have fed that monster, so that's where the problem stems from.

It's hard to see anyone buying either one of these tracks and making a profit if they are not allowed to install vlt's.

But I think they are selling them for 1$ each. If you want, I'll go in half with you!

I agree, and since AC controls all the politicos in NJ it ain't happening. I used to be a frequent visitor to AC, but no more. As much as I love gambling, I'll never spend another cent in AC if they end up running the tracks out of business by keeping away slots at the Meadowlands.

The $1 plan only applies to the Meadowlands. See option 3 from the report. I vote for option 1. 4 seems totally unrealistic.

2. Potential Options for the Future

a. OPTION 1: Thoroughbred racing at Monmouth and Atlantic City

This option would eliminate harness racing and thereby remove the largest
portion of NJSEA’s financial losses. Other elements of this option might include the following:
• Conduct a 50‐71‐day meet at Monmouth Park and potentially 10 days of
turf racing at Atlantic City.
• Allow Freehold to retain its OTW license and its right to build additional
OTW parlors. If Freehold declines its option to build additional OTW
parlors, the license would revert back to the NJSEA (time frames must be
established).
• Have the NJTHA agree to drop the contractual requirement for the NJSEA
to pay $4.7 million toward purses.
• Create a special fund for standardbred awards for owners and breeders
that win races out of state.
• Convert the front paddock area at the Meadowlands into a 50,000 square
foot OTW parlor and utilize the remaining paddock space for NJSEA office
space.
• Assume the Bayonne OTW parlor to be operational in 2012; assume one
additional OTW parlor to be operation in 2013 and one in 2014 with rents
above Woodbridge and below Bayonne, square footage the same as
Woodbridge and handle projected at $71 million.
• Treat all future OTW parlors as renovations.
• Develop a reuse for the Meadowlands racetrack consistent with sports,
entertainment or other public events or facilities.
• Grow account wagering by 3% ‐ 4% a year for the next five years.
• Remove Freehold from a share of account wagering profits based upon
an agreement that Freehold will retain and build out their OTW licenses.
There is currently a 70% ‐ 30% split between Freehold and NJSEA with
NJSEA being responsible for operating the entire business.

b. Option 2: Thoroughbred Racing at Monmouth and potentially 10 days at Atlantic City and 70 standardbred dates at Monmouth.

This option would relocate a shorter standardbred meet from the Meadowlands
to Monmouth Park:
• Legislation would be needed to change race dates as well as rules
governing OTW parlors and account wagering.
• Thoroughbred horsemen would have concerns about this option due to a
real or perceived change in the racing surface.
• Negotiations to rearrange live racing from Freehold would be challenging.
• There would be additional costs to add lights (track, building and parking
lots) to Monmouth Park to allow for night racing.
• A front paddock would have to be added at Monmouth to allow for
standardbred racing. The estimated cost of this addition is $8 million ‐
$12 million.
• Additional winterization of Monmouth may be necessary.
• Two harness tracks would be competing in the same market.

c. OPTION 3: Lease the Meadowlands Racetrack to the standardbred horsemen for $1 dollar a year for three years with early termination rights and an equity‐based share of the Bayonne OTW parlor.

This option provides the Standardbred Industry the opportunity to continue
racing at the Meadowlands:
• Standardbred horsemen would be responsible for all operating expenses.
• Standardbred horsemen would be responsible for the racetrack share of
the payments in lieu of taxes currently at a total level of $2.5 million per
year.
• Standardbred horsemen would be responsible for capital improvements
estimated to be in the range of $2 million.
• There would likely not be sufficient purse money in the State to support
quality racing.
• The NJSEA would lose the right to build a Meadowlands OTW parlor
resulting in an $8 million reduction in NJSEA income.
• The Commission proposes that the lease be for a three year term at
$1.00/year net (tenant pays all expenses).
• Standardbred horsemen could become equity investors in OTW facilities.
• Potential to convert the front paddock to an OTW parlor and run a 50‐day
championship meet at the Meadowlands Racetrack.

d. OPTION 4: Private entities could be encouraged to buy and convert to a
commercial use one of the standardbred farms in New Jersey that has a mile track, and build a 5,000 seat grandstand complete with all necessary amenities. Included in this option would be the construction of an OTW parlor at the Meadowlands so as not to lose the northern New Jersey standardbred market. The major difficulty with this option is the competition from Freehold and the challenge to work out agreeable racing dates. Freehold, unfortunately, has a ½ mile track with little room for expansion.

I didn't believe this article for one second so I ran the numbers myself for this year's meet thus far.
http://spreadsheets1.google.com/ccc?...cD&hl=en#gid=0

As you can see, at a blended takeout of 18% and a signal cost of 6% (and an assumption that 20% of off-track wagering made in-state; these numbers are not published for NJ but NY averages 25-30%) and $200k a day in purse supplements from the casinos, MP has made over $4 million this meet before expenses and inclusion of revenues from attendance and concessions, plus all of the profits from simulcast at MP both off-season and in-season.

Now, I realize that running a racetrack is a very expensive proposition, but you cannot tell me it's $50k/day when live racing is not being conducted and $100k/day when it is (which would add up to about $4MM since mid-May.) If the entity runs at a net zero it is a huge financial gain for the state in taxes on wagering, claims, and purse earnings- not to mention taxes on payroll, etc.

They are getting less than 4% for their signal.

Depends on where it's coming from. 3-4% from other tracks, 7-8% from ADW's. NYRA gets the most preferred rate, obviously. I actually talked to Kulina about it.

So, you talked to Kulina about this, and then represented it falsely at 6%. The blended number is below 4%.

How am I representing it falsely? Like I said, their signal cost is based on what type of provider you are. NYRA gets the best rate, a track like Arlington would be next, a Sam Houston next; then the price jumps for ADW's because (in Kulina's words) "they don't provide a product to wager on in return."

If 50% of OTW is at 3-4%, and 50% is at 7-8%, that's about 5.5-6%. But we're all painfully aware that most wagering is off track these days.

do any tracks get 6%?

I remember this from the RTIP... I just cant come to grips on how ripped off tracks are from off track, out of state handle.

you do have to divide that final number you got in half though... horsemen get half the $ usually.

also taxes.. lots of taxes out of those #'s.

Yes. It's obviously a little more complicated, but you are essentially correct.

I'm not sure if " ripped off " is the right way to say it, as tracks negotiate their simulcast deals. It's obviously a major racing issue.

If you want to quote Bob Kulina a link would be the best way to do him justice.

As for splitting it down the middle....that's an inaccurate representation.

I think it's a great way to say it. The off-track/on-track split is so far from equitable it's a joke, and a major drain on the industry. ADW's are nothing more than used-car dealers yet get paid as producers.

None of it really makes sense to me. Its like Frank Stronach made the manual for ADW operations.

It's, at best, a poor oversimplification....and at worst a gross misrepresentation.

The tracks set these rates.

What's funny is that when there are impasses when tracks fight for higher fees, message boards get filled with people screaming about the piggish nature of racetracks, yet here they are apparently being " ripped off. " Both arguments can't be true.

It's a complicated discussion.

Give me a reasonable split if you think that's inaccurate and a rationale for your percentages. The delta of 1% in off track wagering fees is approx. $1.5MM to date so getting this figure right obviously is of utmost importance.

Does he know you are quoting your conversation on a public message board?

NO, and I didn't want to reveal my information source because it's sensitive information, but you CALLED ME A LIAR.

Of course, whatever I say these days is an "oversimplification" and a "misrepresentation".

MY OPINION IS the tracks are getting ripped off. ADW's and OTB's provide very little and get paid too much for it.

I'm done with this thread.

I have never once screamed about the piggish nature of the tracks. I'm always on the side of the horsemen / organization that puts on the racing product.

I've always thought the tracks get the raw end of the deal. Obviously, they negotiate the deals, but what are they going to do? Not sell the signal & go out of business?

sorry for the poor oversimplification, or gross misrepresentation :rolleyes:

The irony is that everytime an entity like NYRA or Tracknet tries to get more money for its signal, among the first people to balk and pull the signal are the members of the Mid-Atlantic Cooperative, which includes the NJSEA tracks.

Geez....stop.

Whatever I say gets taken as some personal insult. Guess what.....it isn't. It's an attempt at a discussion.

hey it didnt bother me. The internet is the internet, I take it for what it is and thank DT for making my work hours go by faster.

I just know that those two phrases were the farthest from my mind when I used the term "ripped off".

Do you believe tracks get fairly compensated for their signal?

On another note we will be looking for your 2010 version of Meese Rocks in the coming weeks... Good Luck this meet.

I never even imagined you were trying to say something either unfair or incorrect ( just as, even though he felt a need to make it up, I never called Phil anything close to a " liar " ). I was actually responding more to Phil's response to me ( he likes to take the opposing side to my posts....it's an endearing quality of his :) ).

The signal fee discussion is a very long, interesting, and complicated one...that frankly I don't have nearly the time for ( at least right now ). Perhaps we can have it over a drink or ten some time this summer. Obviously racetracks started off selling their signals at seemingly very low rates. However, there are a lot of factors to take into consideration in the discussions. Track to track rates face different variables than Track to ADW relationships.

I just hate simple terms like " ripped off " for these very complex discussions. It's probably just another of my annoying qualities.

Race track operators seem to have a unique habit of putting themselves in situations to get bent over in the future. One of the best parts of the RTIP is the Joe Hirsch Speaker Series, where you get to hear from & talk to guys like Charles Champion, to Race Track simulcast directors & hear different sides of the situations. I found myself many times thinking, "no, really?" when it comes to this issue, & others similar. Especially when you are looking at it from a 2001-2005 perspective & not a 1970's perspective. But one of racings best qualities is its ability to evolve ;) (though I do understand the difficulties in evolving)

You're going to have to have 10 extra for me, since I will be enjoying Saratoga from the confines of my cubby in Slowcala, FL. I know I will be breaking many of hearts, not being able to run wild for at least a long weekend in the greatest summer vacation spot on earth. 13 straight years..

A Question Please?
 

Does what the fatso Governor said yesterday automatically become law or do they have to vote on it? Can the democrats stop this?

Is there a chance this may not go through until some other alternative ideas are presented?

If this does pass, does racing stop after the current meets end?




Where are you R. Codey? Now is your chance to be a hero!

It was merely a report, submitted at the behest of the governor, which contains recommendations on a number of topics, horse racing being one. Many recommendations in the report would require legislation and much political crapola. One fact is this is the last year of the casino subsidy, so something will have to happen for the purse structure next year. I don't think the state can just shut the doors, since the number of racing dates per year in NJ is mandated by law. Special legislation had to be passed for this meet to cut the dates.

so there could be a ray of hope. at least for a delay.

i just fired off a letter to my legislators because i'm not going down without a fight!

for anyone in n. j. who cares, find your legislator and let them know how you feel.

they can be found at:

http://www.njleg.state.nj.us/distric...cipalities.asp

from the star ledger
 

N.J. horse industry feels betrayed by Gov. Christie's support of Atlantic City, but not Meadowlands

"The whole industry in New Jersey will be gone, including Perretti Farms," said Anthony Perretti, general manager of Perretti Farms in Cream Ridge, the state’s largest breeding farm. "The governor and his team are willing to support Atlantic City, but not the Meadowlands? Give us support, so we can reinvent as well."

Horses are big business in New Jersey. According to a Rutgers University report from 2007, horse racing and racing-related operations generate more than $780 million in economic activity each year. Some 3,800 of the industry’s 13,000 jobs are tied to racetracks. Horse farms represent one-fifth of the state’s 790,000 agricultural acres, and house upwards of 12,500 standardbreds and thoroughbreds.New Jersey is a national leader, too. In 2007, the state was second only to Kentucky for horse sales as a percentage of agricultural sales, said Paul Gottlieb, associate professor at Rutgers University. And it ranked second, after Rhode Island, for total breeding per acre of land, he said.

"We are one of the top equine states in the country," said Gottlieb, who noted potential race track closings will have far-reaching implications. "The impact is likely to be felt by agricultural suppliers, including hay growers who do not keep horses themselves, veterinarians, trainers, farriers, and so on."

http://www.nj.com/news/index.ssf/201...s_gov_chr.html

a response from the government...
 

Mr. Burch,

Many thanks for your email.

As you may be aware, all Assembly Members and Senators representing
Bergen County in the Legislature met the afternoon of the release of the
Commission's report earlier this week. We agreed unanimously that
support of the report's conclusions, especially as they addressed the
issue of the Meadowlands, would severely undermine efforts to revitalize
northern New Jersey, increase employment and negatively affect our
common efforts to make the Meadowlands a true economic engine for the
state, and particularly North Jersey.

I greatly appreciate your support and kind words. Please know that I
join you in your concern and will speak vociferously on the subject in
support of the 36th District and the entire state of New Jersey.

I look forward to speaking with you in the future, and appreciate your
time in writing.

Gary Schaer, Assemblyman
36th Legislative District

Good job man- my hats off to you for fighting the fight, even if it's just a small voice in the big picture, it matters.

Couldn't say it any better.
 

Commission to N.J. racing: Drop Dead

When New Jersey Governor Chris Christie put together something called the New Jersey Gaming, Sports and Entertainment Advisory Commission and asked it to come up with solutions for the many thorny issues facing the state's gambling interests, the horse racing industry knew it might be in for a hard time. Not only were the Meadowlands and Monmouth, both state-owned tracks, losing money the state couldn't afford to lose, but also the deck figured to be stacked in favor of the powerful Atlantic City casino interests. In New Jersey, it always is.

But no one could have expected what was to come out of the commission, a report that figures to have devastating consequences for New Jersey racing, particularly the harness industry. The commission didn't come up with one thing to help horse racing or even a hint of a solution. Rather, it says the way to fix things is to kill the game.

And Christie is on board: "This report is a blueprint that will guide our efforts in managing and protecting our gaming, sports and entertainment resources more responsibly and reforming issues critical to New Jersey's economic future," he said in a statement.

The easiest way to fix racing in New Jersey would be to jump on the slots machine bandwagon and bring them to the Meadowlands, where a casino in one of the most densely populated areas in the country would no doubt be wildly successful. The Atlantic City lobby has always been against that, so few racing people expected the commission or Christie to deliver slots. But most thought they would come up with something to help racing, which not only has a long history in New Jersey but is vital to the state's economy because it provides thousands of jobs and preserves green space, something there isn't nearly enough of in the "Garden State."

But there wasn't even a crumb. The commission basically told the harness industry it is on its own. It can either lease the Meadowlands for $1 or let the place close. It also came up with other proposals, like holding a harness meet at Monmouth or creating a small track at one of the state's training centers. Whatever direction the harness industry goes, the end result will either be no racing or minor league racing that bears no resemblance to the quality product that has made the Meadowlands the center of the harness racing universe.

Apparently, Christie hates Monmouth Park less than he hates harness racing. His minions on the commissions weren't quite so harsh on Monmouth and didn't call for it to shut down. Then again, thoroughbred racing in New Jersey also has plenty of problems. The commission said the days of the casinos helping fund the purses through a subsidy are over. Once that subsidy is gone, Monmouth can't possibly maintain the purse structure that has made the 2010 meet a smashing success. Its future? Who knows?

Perhaps horse racing has no right to expect a handout from the state or anyone else, especially in these difficult economic times. The game indeed needs to find ways to get back on its feet and be self-sufficient.

But the industry does have a right to be treated fairly. What is so galling about the report is that it plays up to the casino guys and makes it clear that the state will roll over and do everything it can to make Atlantic City thrive again. The state is willing to go so far to help Atlantic City that it is exploring taking over the area where the casinos are located. If all this means killing horse racing in the process, too bad.

Like New Jersey racing, the Atlantic City casinos are in trouble and need help. Casinos and racinos in Pennsylvania, Delaware and New York that have come on the scene in recent years surround Atlantic City. People choose convenience when deciding where to gamble, and that's what's killing A.C. The most obvious solution is to join forces with racing and open a casino at the Meadowlands. There'd be more than enough money to go around to satisfy everyone and to revive both the racing and casino industries in the state. Even the state, which is supposedly so desperate for money, can benefit by taking its slice of what would be a big, fat slots pie out at the Meadowlands.

But Atlantic City doesn't want that. Their game plan is obvious: they want to kill horse racing in New Jersey and when that is accomplished they can move into the North Jersey market and not have to share their profits with racing. It's called greed.

It's Christie's job to stop that from happening, to look out for Atlantic City and horse racing. One shouldn't matter more than the other. But he's obviously not going to do that, and neither are the vast majority of politicians in the southern half of the state who have spent their careers doing whatever Atlantic City tells them to do.

This is politics at its worst and when politics stinks this badly money is involved. One can only imagine how much cash the Atlantic City casino lobby has thrown around to make so many politicians their lap dogs.

There's a lot of garbage coming out of Christie's office. A portion of his press release on the commission's report carries the headline "Creation of a Sustainable Industry Structure to Preserve Live Horse Racing." Don't believe a word of it. This is all about taking care of Atlantic City, and nothing else.

Shame on you, Chris Christie.

http://sports.espn.go.com/sports/hor...ill&id=5402529