Colonial Downs v Horsemen; Jacobs takes players hostage

[luvalab]

This doesn't look good. With only 3-1/2 weeks until their usual opening date, a meet this summer seems doubtful at this point.

http://www.bloodhorse.com/horse-raci...ial-downs-meet

[Cannon Shell]

Colonial doesnt want to run which is why they keep coming up with ridiculous schedules that they know won't be accepted. The attempted bribe is a new touch though.

http://www.theracingbiz.com/2014/05/...inia-horsemen/

Look at the bizarre days they propose

[booner]

With a schedule like that, it would be real easy for the bettors to miss several of those days.

Bizarre indeed....

[tector]

Bummer--really enjoyed those turf cards.

[Kasept]

http://www.bloodhorse.com/horse-raci...-talking-dates

Some positive movement and a new meeting Thursday. The revenue Jacobs lost from the TB signal restriction appears to be issue needing resolution. After looking bleak last week, think this is going to get done.

[Dawgswin]

Originally Posted by Cannon Shell

Colonial doesnt want to run which is why they keep coming up with ridiculous schedules that they know won't be accepted. The attempted bribe is a new touch though.

http://www.theracingbiz.com/2014/05/...inia-horsemen/

Look at the bizarre days they propose

As a complete newbie I have to ask, what does Jacobs and his company gain from not running? Does he want to re-develop the site or something? That tends to be his with his other ventures....not the least of which was generous tax breaks in Cleveland that more or less went in his pocket for re-developing waterfront property.

But I'm sure that redevelopment benefitted the public far beyond what Jacobs received.

[luvalab]

Steve,

I certainly hope so. I thought that was a good segment last Wednesday with Frank Petramalo. Thanks for having him on the show and it was good for people to hear that side. He made a lot of good points and your comments were spot on as well.

On your show Frank referenced Colonial wanting to start a new horsemen group, then he said "Who would want to do that?" Read the very last paragraph in this article, I think is says a lot.

http://www.vagazette.com/news/va-tr-colonial-downs-horsemen-react-0515-20140515,0,2604128.story

Hoping they get it done this time and Colonial doesn't runaway from the table crying we are breaking off discussions with the VHBPA. I'm tired of that song and dance!

[Cannon Shell]

Originally Posted by Dawgswin

As a complete newbie I have to ask, what does Jacobs and his company gain from not running? Does he want to re-develop the site or something? That tends to be his with his other ventures....not the least of which was generous tax breaks in Cleveland that more or less went in his pocket for re-developing waterfront property.

But I'm sure that redevelopment benefitted the public far beyond what Jacobs received.

They have to run in order to simulcast which is where they make easy money. Supposedly they "lose money" during live racing. The trick is that tracks are now separating live racing from simulcast racing rather than including them as part of the same model. In effect they are saying that they want to run the shortest possible meet in order to maximize profits. Which is fine except they are partners with the horsemen in the state according to the state bylaws and commission and the horsemen want/need a far longer meet to make it economically feasible to run there. I guess what Jacobs is doing is playing chicken with the horsemen, assuming they'd eventually break and give him a far shorter meet than usual and perhaps he'd do the same again next year and perhaps make a plea to the commission to change the laws or develop this rival, lackey horsemans group.

It has always been considered a longshot for expanded gaming in VA though you'd have to think that has been in the back of Jacobs mind as well.

You see this more and more where tracks are trying to kill their own live racing so that they can close up shop, redevelop the property and still profit from simulcasting other jurisdictions races.

[Kasept]

VA breeding proxy/bloodstock agent Debbie Easter, who went to the meeting yesterday and missed the first half of the Timonium sale, was on ATR today. She said that even with the deadline extension, the meeting was actually more of a setback than an advance of the issues. This meet really is up in the air.

[luvalab]

Originally Posted by Kasept

VA breeding proxy/bloodstock agent Debbie Easter, who went to the meeting yesterday and missed the first half of the Timonium sale, was on ATR today. She said that even with the deadline extension, the meeting was actually more of a setback than an advance of the issues. This meet really is up in the air.

Thanks for the update, I caught the ATR replay while I was working late. She didn't sound hopeful at all. I've read this in several articles and Frank said on ATR last Wednesday that the horsemen were not interested in reimbursing the track for losses incurred during this negotiation time period. It seems like it will be tough to pull a meet together at this point with trainers and jockeys having to make other plans. It's frustrating as it is one of my best meets of the year from a betting standpoint.

One of the things that has been offered by Colonial is to run, but not open the backstretch. Which would mean horses would have to ship in to run. Let's assume Colonial runs Friday, Saturday and Sunday. A trainer has a horse running in a race on each of those days. Does that mean he would have to ship each horse in on each day? If so, that seems like a headache for the trainers.

[Sightseek]

Originally Posted by luvalab

One of the things that has been offered by Colonial is to run, but not open the backstretch. Which would mean horses would have to ship in to run. Let's assume Colonial runs Friday, Saturday and Sunday. A trainer has a horse running in a race on each of those days. Does that mean he would have to ship each horse in on each day? If so, that seems like a headache for the trainers.

That would be a nightmare. It is a 2 lane highway after the 95 merge that is backed up for beach traffic.

I remember overhearing a very small time trainer making a call to someone saying how they got stuck in traffic for 90 minutes and made it 5 minutes prior to the deadline for the horses lasix. It was 90 degrees that day and high humidity. That, to me, is animal cruelty.

[GPK]

Originally Posted by Cannon Shell

They have to run in order to simulcast which is where they make easy money. Supposedly they "lose money" during live racing. The trick is that tracks are now separating live racing from simulcast racing rather than including them as part of the same model. In effect they are saying that they want to run the shortest possible meet in order to maximize profits. Which is fine except they are partners with the horsemen in the state according to the state bylaws and commission and the horsemen want/need a far longer meet to make it economically feasible to run there. I guess what Jacobs is doing is playing chicken with the horsemen, assuming they'd eventually break and give him a far shorter meet than usual and perhaps he'd do the same again next year and perhaps make a plea to the commission to change the laws or develop this rival, lackey horsemans group.

It has always been considered a longshot for expanded gaming in VA though you'd have to think that has been in the back of Jacobs mind as well.

You see this more and more where tracks are trying to kill their own live racing so that they can close up shop, redevelop the property and still profit from simulcasting other jurisdictions races.

You're being very generous.

[Needing the Wire]

I apologize in advance for the length of the following post, but I need to "vent" a little. I am disgusted with this dispute and its implications for Horse Racing and Horseplayers in Virginia. Living and playing the horses in the state that bred the winner of the 1973 Triple Crown, we should demand better from the "Corporate Face" of Virginia Racing, Colonial Downs.

The next 16 days is the most exciting time in the Horse Racing industry. Unfortunately, many Horseplayers here in the Commonwealth will be unable to wager and, subsequently, enjoy one of the best moments in sports.

I was a loyal and regular patron the past 8 years at one of the Colonial Downs' OTBs in Vinton, Va. This location has been shuttered since February due to the dispute, and I am actually shocked that Colonial Downs had kept operations running for that long in Vinton and the other affected OTB's. Any patron of a now closed CNL OTB or the actual facility in New Kent should not be surprised by the developments of the past four years, let alone the past four months.

I watched the Vinton OTB open to great reviews and great enthusiasm. The newly constructed building with ample parking and a large C.O. number quickly became a destination for horseplayers of all levels in Southwest Virginia. More importantly, the mix of gambling, a full bar, a good restaurant, and a friendly and attractive staff helped lure the "white collar" crowd and their wallets. I knew several of these "Newbies" and they were successful in all manners of business. The percentage of people (male AND female) in business attire on a Thursday or Friday afternoon at 5PM was 40%. There was solid, customer friendly management and the hours of operation were consistent with all forms of racing. Friday night cards at Hollywood became a "Social Event" and the local Cab company did a great business when those races ended at 1AM. In short, Business was Booming in our little OTB!

Obviously, Colonial Downs could not stand the prosperity. In 2010 there was, in my opinion, a noticeable shift in Colonial's Corporate Philosophy. I believe this shift occurred around the launch/re-launch of CNL's internet wagering platform, EZ Horseplay. I started an EZ Horseplay account in 2011 and enjoyed the convenience of putting some money in the account at the OTB after a good day, and then coming home to play Charlestown or EVD. I stopped depositing in this account 2 weeks after the shutdown due to the loss of Florida tracks. I'm a fan of Tampa and Gulf so.... Thank God for XpressBet!

Over the past 2 or 3 years, I have been asked by many former patrons, "When are they going to just go ahead and shut the doors at that place?" There was no doubt in my mind that CNL wanted most of the OTBs to just go away and let the internet platform generate the revenue. Basically, "To Hell with the Horseplayers and our Employees!" This dispute gave them that opportunity. Since the dispute, the local media has run a few short stories about the "temporary" closure, but those were basically PSA's to keep people from driving to the Vinton location on the first weekend in May or last weekend for the Preakness.

Here are a few things that signaled the beginning of the end.

After the Corporate Philosophy shift in 2010, the position of Manager at the OTB suddenly became a transient position with considerable turnover. Concurrently and expectedly, the excellent Customer Service and Staff Morale went due South. The Security company that would escort you to your vehicle upon request after a "good day/IRS signer" was not retained. Staff hours were cut dramatically, Bartenders were fired for a myriad of reasons, the Kitchen Manager since Opening Day was fired, and the teller pool was cut from 14 to 3. The Hours of Operation dwindled to Thursday through Sunday from 12-7PM. Enjoy that West Coast Racing Somewhere else, I guess. The Housekeeping services were dropped and the bathrooms went from immaculate to embarrassing in less than a month.

The once vibrant Bar, that regularly had customers 4,5, or 6 deep, lost its license to sell liquor after the restaurant was farmed out to several 3rd Party groups in an effort to save on food costs. These groups rarely lasted more than a month. No food sales=No Liquor license here in Virginia. Due to the loss of liquor and quality food, the White Collar Crowd took their appetites, their secretaries, and their $50 Exacta Boxes back to the Downtown Bars. The Bar lost all alcohol in 2012 and the kitchen closed completely soon after. Empty Fast Food bags on the tables were almost as common as losing tickets in the past 18 months. To the final Manager's credit, he did set up a small fridge with sodas and a table of nabs you could purchase for a dollar. Certain Horseplayers sat in their vehicles nursing a "bottle" as they handicapped and would only come back in to use the SAMS and watch the race.

The last year and a half was so depressing at the OTB that I began to understand the Handicapper "stigma" many people on this board reference from time to time. 1 guy yelling for a $0.10 Super during every race at Freehold, and never winning, gets a little sad at a certain point. If a "Newbie" actually visited the location over the past 18 months, I seriously doubt they returned.

The Friday and Saturday crowds since 2012 rarely topped 40 total patron and a random Thursday in the last year may produce a field of 15-20 patrons for the entire day. On the final day of operations, there was a Manager, one teller, and the elderly lady at the front desk who has been selling programs and taking the $1 entry money since Day 1. She smiled and told me as I left that day, "This closing is just temporary. We will be open again in a week!" I didn't have the heart to tell her "No, you won't." I just smiled, agreed, and offered her my help if she went looking for work elsewhere. I think 8 people were there when I left at 5PM.

The manner in which the CNL Corporate Management neglected their OTB facility, its employees, and the Horseplayers that spent their time and money in the Vinton establishment was systematic and absolute. I feel great sympathy for the hourly employees and the Horseplayers who do not have the ability to access an XB or other account.

Colonial Downs is hurting this industry in so many ways. You had AT LEAST 100 "Newbies" to the sport in that one location just 6 years ago, and they spent their money with you, Colonial Downs. I was, or became, friends with many of those people, and at least 95% of those "Newbies" moved on from Horse Racing to something else in the past 4 years due to your Corporate decisions. They were exactly the type of people this Industry so desperately needs as Players and possibly Owners, and you ran them off, Colonial Downs. My only remaining question to Colonial Downs, why did it take you 4 years to execute the "Corporate Plan"? Colonial Downs Management ruined a "great thing" in my little corner of the world, and I doubt if I am alone in those beliefs. My condolences to the Horsemen of Virginia and the Horseplayers of the Commonwealth.


Sorry for the novella and Best of Luck to everyone in the coming weeks!

Sincerely,
Wes

[GPK]

^^^ what Wes said. I moved to Roanoke almost 8 years ago and the Vinton OTB used to be hopping. To witness its demise has indeed been sad.

[Alabama Stakes]

whatever happened to the nice full fields and early meet closers bias', and late meet speed bias'. that place used to be awesome...

[Sightseek]

Originally Posted by GPK

^^^ what Wes said. I moved to Roanoke almost 8 years ago and the Vinton OTB used to be hopping. To witness its demise has indeed been sad.

You also watched this same decline at the track over the past 5 years.

[luvalab]

I live in NC which does not allow pari-mutuel wagering. Colonial is the closest track to me when I want to enjoy live racing. When their first post time was at 5pm I used to be able to get to the track around 12pm, play Belmont all afternoon. Then I would play the Colonial card in the evening and enjoy being at the track. However, in recent years they closed the track to simulcasting until 1 hr before the first post at Colonial. I guess they were trying to force people to go to an OTB (which is cheaper to run), then come to the track. I didn't feel like driving to the OTB and then to the track, so I just stopped playing those earlier Belmont races.

There are definitely some nuances to the Colonial course that can help you cash a ticket, esp. if it gets really hot during the day. And, I've never had an issue with field size at Colonial. Below are field size stats for the last 3 years at Colonial. These are just for the turf races, none of the very few dirt races they run are included:

2011 - Avg Field Size: 9.3 - Total Horses: 2177 - Total Races: 235
2012 - Avg Field Size: 8.5 - Total Horses: 2311 - Total Races: 272
2013 - Avg Field Size: 8.9 - Total Horses: 1670 - Total Races: 187

Total Races Run in all 3 years: 694
Total Fields in all 3 years with 7 or less horses: 199 (29%)
Total Fields in all 3 years with 8 or 9 Horses: 243 (35%)
Total Fields in all 3 years with 10 or more horses: 252 (36%)

[luvalab]

It doesn't sound like they have made any progress.

"I'd say we're a two on a scale of one to 100 on reaching an agreement," Petramalo said.

http://www.bloodhorse.com/horse-raci...ng-in-jeopardy

[GPK]

The 3 OTBs that have kept open (Richmond, Hampton and Chesapeake) will remain open. Of the ones that were temporarily closed, the only one with a small chance to reopen is Martinsville. All others to close permanently.

[luvalab]

I'm not sure they can come together. Colonial has dug its heels in pretty hard on being reimbursed for the money lost. It really doesn't sound like Colonial wants to run at all.

http://www.drf.com/news/deal-colonia...ming-down-wire