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#1
04-02-2015, 02:58 AM
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Arlington Park saga
I received this email from the Illinois Thoroughbred Horseman's Association. One of the things I was most looking forward to this summer was running some of our horses at Arlington Park, which is 10 minutes from my house. But many stakes races have been eliminated and stall rents and conditions are looking onerous, so we will likely situate our strings elsewhere this year. The bold type is mine, meant to emphasize certain issues that look especially problematical. Such a gorgeous racetrack. Such a bloody shame.
AP/CDI's Contract Takeaways Message From ITHA Executive Committee Concerning ITHA/AP Contract Negotiations Dear Fellow Horsemen: By law, a race track in Illinois must have a contract with the horsemen's association representing the largest number of owners and trainers that race at that track prior to the beginning of the racing season (230 ILCS 5/29(d)). For decades, the Illinois Thoroughbred Horsemen's Association and its predecessor, the Chicago Division of the HBPA, has been the contracting agent representing the horsemen racing at Chicagoland thoroughbred tracks. Our current contract with Arlington runs through April 22, 2015. A contract committee of the ITHA has been tasked with negotiating a contract for the 2015 season. That committee, President Mike Campbell, Vice-President Chris Block, Director Marty Nixon, Director Steve Holland and Executive Director Glen Berman, has in whole or in part held several negotiation meetings since late last year with principals of Arlington Park/Churchill Downs Inc. including Arlington Chairman Dick Duchossois and CDI Senior Vice President and Arlington General Manager Tony Petrillo. AP/CDI insists the primary disagreement is about fees to the ITHA. Yet AP/CDI is in possession of a signed contract from the ITHA that would have $875,000 paid to ITHA based upon the association's statutory authority to receive such fees to provide programs and services to horsemen. At the same time, AP/CDI presented a document to the IRB at its March meeting wherein it projected two scenarios, one where ITHA receives $500,000 and one where ITHA receives $750,000 from a percentage of retained handle at Arlington. A copy of AP/CDI's submission is available for viewing by ITHA members on our association's website. The numbers we are discussing are not so far apart as to be the cause of such controversy. It's clear that other terms of the contract are driving AP/CDI to create this hostile environment. AP/CDI Targeting Horsemen's Purse Account During the 2012 contract negotiations, AP/CDI proposed billing the horsemen's purse account for significant operational costs of its own; for instance, it proposed charging stall rent and charging for manure removal (at a cost to the horsemen's purse account of $500,000 per season). ITHA negotiators, with the backing of membership, stopped that AP/CDI initiative. AP/CDI still has its eyes on the purse account and has even had its lawyers prepare so-called legal memos to the IRB attempting to make an argument that the horsemen's purse account actually belongs to the track. Purse accounts do not belong to the tracks; the tracks collect the monies and distribute the monies but the monies themselves are a liability, not an asset, of a track, as they are monies being held for others. One of the reasons ITHA has had smooth contract negotiations with Hawthorne for the past five years is because Hawthorne, like all other fair-minded tracks, acknowledges that purse account monies belong to the horsemen. Federal bankruptcy courts recognize the purse account as belonging to the horsemen. At the December 2015 IRB Meeting, Maywood/Balmoral's bankruptcy attorney Chad Gettleman testified that "the tracks regard the horsemen's purse account as belonging to the horsemen and not belonging to the track and it's in a segregated account and those funds ... don't belong to Balmoral and Maywood and they will be allowed to be used in the ordinary course to pay the horsemen." AP/CDI Seeking to Minimize Horsemen's Rights Under IHA AP/CDI also has its sights set on changing the federal Interstate Horseracing Act, which, as currently written, ensures that horsemen have an absolute right to control the simulcast signal. These larger issues are behind the contract stalemate. It's not about a couple hundred thousand dollars from a purse account, from which AP/CDI gladly chooses to take more than $4 million each year in recapture subsidies to put in its own coffers. On December 2, 2014, ITHA sent a signed contract proposal with minimal changes from our current contract, except instead of the flat payment to ITHA of $1,090,000 per year, we suggested returning to a 2% based fee utilizing statutory language - the same model as in our current Hawthorne contract and the same percentage as in our contract with Arlington, signed in 2012. A copy of the cover letter to the contract proposal to AP/CDI outlining the changes to the current contract is available to members on the ITHA's website. At the March 2015 IRB meeting, Tony Petrillo testified that, "We did receive a contract from ITHA with the same percentage as Hawthorne; we set that aside and decided to work on other issues...and much to our surprise we received another contract proposal with approximately $875,000 out of the purse account" AP/CDI's response to that contract offer was actually quite different. It responded to our reasonable and signed offer of December 2014 by advising us that the ITHA's offer was "demonstrative of gross negligence," that ITHA's approach was "beyond comprehension," and that ITHA's proposal was rejected in its entirety. Further negotiations resulted in a couple items we could agree on, a couple we could live with, and some we will never agree to. On March 3, 2015, ITHA sent another signed contract proposal based upon the current contract with certain changes, including a self-negotiated 20% decrease in fees payable to ITHA. A copy of the cover letter to that contract offer is available online for ITHA members. AP/CDI rejected that signed offer, too, and advised ITHA that it viewed our latest offer "as just another tactic for the ITHA to ruin Arlington's race meet," and that ITHA "may put Arlington out of business and damage Arlington as you have Hawthorne." AP/CDI went on to accuse ITHA of utilizing "tactics" that are "threatening the survival of racing in Illinois." AP/CDI finished its response by stating that it "will not let the ITHA or its national affiliates intimidate us, or weaken our desire or deter us from our commitment to rebuild racing in Illinois." Who's kidding who here? AP/CDI Contract Takeaways In its rejection of the ITHA's current, signed contract offer to Arlington, AP/CDI attached an unsigned, redlined version of our current contract that left the amount payable to the ITHA blank. AP/CDI also proposed the following items in its draft contract: Adding a forfeiture clause of all monies due the ITHA if we publish anything that AP/CDI deems would reflect negatively on its race meet or would reflect negatively on the relationship between the horsemen and AP/CDI. Amending the horsemen's absolute federal right to withhold our signal at any time for any reason in our sole discretion. (This is the one true power horsemen have over the product we provide. It has been attacked and upheld in federal courts; we will not sign it away by contract.) Reducing training hours of 4 hours each day at both the main track and training track to 2 hours each day at both the main track and training track. AP/CDI apparently does not want to pay for two ambulances on standby, so it is proposing that when the training track is open for 2 hours the main track will be closed, and vice versa, for a total of 4 hours combined per day. Reducing the minimum racing opportunities at AP/CDI this year to 8 races per day from the current 9.4 races per day (8 races per day is the minimum required by law, so essentially this eliminates ITHA authority here, which could have an impact on the pending gaming legislation which includes minimum racing opportunities and which AP/CDI recently proposed to renegotiate - putting in question our agreed rates and the end of recapture) Removing any minimum purse amount (it's $10,500 in our current contract), and removing the requirement to consult with ITHA prior to reducing purses, etc. Removing the traditional authority of ITHA to direct payments of purses in case of purse underpayment. (Although underpayment is unlikely now, it could happen in the future. These provisions confirm ITHA's authority with respect to the purse account, which AP/CDI would like to diminish.) Requiring ITHA to publish how much money it has "diverted from the purse account" pursuant to statute and publish any reduction in overnights as a result. (AP/CDI attempted to characterize payments to the ITHA in the first condition book it published, though it failed to mention its own voluntary taking of $7,000 per race in recapture subsidies this year.) Removing ITHA's right to retain the services of a third party to be the horsemen's bookkeeper. Requiring the ITHA to agree not to "retaliate" against AP/CDI/TwinSpires, etc., "in any manner whatsoever" and requiring the ITHA to indemnify AP/CDI for legal expenses for such claimed activity. (AP/CDI can use this for any reason it deems appropriate in an attempt to overwhelm us legally and financially and put us out of business.) Requiring trainers to pay $20 per stall if they are not clean when they leave, plus pay for all damages, not just that above normal wear and tear. Removing the current ITHA requested language that provides $1,000 higher purse for Illinois restricted races over comparable open races. (AP raised this amount to $2,000 last year but now wants to eliminate it). Amending the agreement for no stall rent to be no stall rent "for horses participating in the race meet" with no definition of what that means. In the stall application, AP/CDI states that trainers are expected to start one horse per stall per month - a threshold that more than 90% of trainers cannot meet. This change puts stall rent back on the table. Removing the right of the ITHA to have a Track Committee inspect the condition of the track 10 days before the start of the meet, one week after the opening and every two weeks thereafter. AP/CDI also would strike its current contractual obligation to meet with the track committee to discuss the condition and maintenance of the racing strip. Eliminating the requirement for the track to provide an on-track insurance policy for jockeys. Another track recently tried to eliminate this insurance and was faced with a jockey strike. Elimination of this policy would shift more liability exposure to owners and trainers. By order of the IRB, since no contract has been entered into 60 days before the start of the meet, the parties must participate in non-binding mediation. AP/CDI advised it was first available for mediation the week of April 13. Both sides have been contacted by the mediation service for selection of a date and mediator. AP/CDI's Desire to Blame Others Based on its actions and demands, AP/CDI appears to be deliberately trying to scuttle the start of its own meet - a calamity that it would then blame on others. Should such a plan come to fruition, ITHA anticipates there will be purse reductions and potentially vacated dates - with the blame, should AP/CDI have its way, being directed squarely at the ITHA. Last year, AP/CDI blamed the IRB for the demise of Illinois racing - now it is blaming the ITHA. Who will it blame next? ITHA has advised Arlington, despite its summary rejection of our signed offer, that our offer remains open until the date of mediation. If AP/CDI truly wants to get the 2015 meet started without a hitch it would have signed our offer or come back with a counter-offer specific to the dollars necessary to support ITHA programs and services for horsemen. It hasn't done that. Instead it has thrown a plateful of contract changes at us that it knows we won't agree to, while at the same time attempting to foment dissension among horsemen behind the ruse that our disagreement is only about money. Sincerely, The ITHA Executive Committee: President Mike Campbell Vice-President Chris Block Director Steve Holland Director Marty Nixon Executive Director Glen Berman
__________________
"Good luck had just stung me, so to the race track I did go" - Levon Helm 
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#2
04-02-2015, 07:33 AM
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I know you are local to here, but how well do you know Arlington Park and CDI?
I'm asking because this is much of the same stuff that has been happening for years, and its essentially soured me on local racing. This upcoming Arlington meet is going to be horrid, I'm guessing one step above the bottom. Specifically, MSW purses 2 years ago were 40k, I think I saw they are 26k this coming meet, good luck to horseman trying to survive on that unless day rates were cut in half also (and this isn't an horseman issue) Its sad because its the nicest track in the country and its gets the biggest draw of people considering the racing product they put there, and AP/CDI knows that people will still come out regardless of what racing product they try and recruit. And this whole thing that slots will save them is a bunch of BS. There are these local slot parlors that have circumvented the law around here now called Pennys, they put a deli in there selling $2 hot dogs and have 8 slot machines, well, those are not surviving or not meeting projections, yet they want to put more machines in the state. As another side note, word was from someone that is somewhat reliable that Mr D tried to buy back Arlington from CDI, offered them CDI stock plus some cash, total of 150 million. CDI said no, countered at 300 million, and said something to the effect of, 'that is what the land is worth'. The second that old man dies (he is mid 90s now), Arlington will become a resemblance of what it is.
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#3
04-02-2015, 11:15 AM
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Totally agree with your assessment, scav. This is the first year, I am looking at Arlington from an owner's perspective and it's worse than I thought.
I'll probably still hang out on a grassy hill and watch some races on a nice sunny summer day, but will likely not see many of my own horses run there. Tom Proctor's twitter reply to Arlington Race Course recently: Arlington Intl. @Arlington_Park Mar 20 A big #WelcomeSpring from Arlington! We may not have this much green yet, but at least we know it's coming soon! Tom Proctor @TProctorRacing @Arlington_Park @HRTVinsider maybe grass but not $$$$ Don't think we'll be seeing Tom bring many horses up to AP this year after that comment. O
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"Good luck had just stung me, so to the race track I did go" - Levon Helm
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#4
04-02-2015, 11:21 AM
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In fact, the best strategy might be to pick off a few talented horses whose owners are fed up with AP and race them on other poly tracks like PID or Woodbine.
__________________
"Good luck had just stung me, so to the race track I did go" - Levon Helm
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#5
04-04-2015, 07:45 AM
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Foolishness
Otis & Scav,
So assuming they negotiate something 11th hour and salvage a half ass meet, all the issues get kicked down the road to 2016? When you try to explain to someone that is is not an old decaying venue but a true gem of a property , you get that quizzical look from non Chicagoans. 
__________________
Do it big, do it right and do it with style!
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#6
04-04-2015, 07:53 AM
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#7
04-04-2015, 09:02 PM
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#8
04-04-2015, 11:43 PM
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Today's letter from the ITHA. AP/CDI strangely silent on advocating slots at AP. New governor in Springfield, so why not take another run at it?
It's Past Time for AP/CDI to Renew Its Support for Slots at Tracks Agreement Message from ITHA Legislative Committee Dear Fellow Horsemen: Five years ago, representatives of the Illinois Thoroughbred Horsemen's Association, Arlington Park/Churchill Downs Inc., and other industry leaders met and negotiated the terms of the agreement that would become of the basis of the slots-at-tracks bills that lawmakers have since approved. Though the state's previous governor, unfortunately, twice vetoed that legislation, the ITHA and other horse racing stakeholders are continuing to advocate for final passage of that plan. Once approved and implemented, slots at tracks will improve our purses and, in doing so, position Illinois racing to again compete with racing in other states already using slot revenue to enhance purses. But conspicuously absent from the voices publicly advocating for passage of that gaming bill during this spring session is AP/CDI. Though the ITHA, Hawthorne Racecourse, the Illinois Harness Horseman's Association, and other organizations with a direct interest in that legislation are unequivocal in our commitment to the terms we brokered in 2010, AP/CDI - the same entity fond of admonishing others across the industry to stay in unity - has declined to publicly renew its support. Indeed, in light of AP/CDI's incessant refusal to negotiate with the ITHA in good faith over a contract with owners and trainers for the 2015 season, we must wonder whether AP/CDI is deliberately scuttling contract negotiations to hamstring horsemen and distract attention from efforts to obstruct the slots-at-tracks agreement. (In a recent racing industry meeting on gaming, an AP/CDI official advised that the agreed gaming bill does not meet its desired "return on investment.") The agreed slots-at-tracks legislation includes three provisions, in particular, embodying the priorities of Illinois horsemen: 1) Agreed rates to support purses. 2) Guaranteed live racing opportunities. 3) Elimination of recapture. (In 2014, Illinois tracks took an estimated $13.19 million in recapture subsidies - dollars removed from horsemen purses to subsidize track operations.) It may be the case that AP/CDI continues to honor its agreement to these terms but that, for reasons that are not clear, it is refraining from stating that publicly. Or it may be the case that AP/CDI has abandoned its agreement - in which case all Illinois horsemen, as well as all of the other parties that negotiated those terms with AP/CDI, deserve to know exactly where AP/CDI now stands - and whether it is now advocating for terms against our interests. The stakes are far too high for the Illinois horse racing industry, and the tens of thousands of jobs that we support across Illinois, for us not to know who's on board and who is not. Sincerely, The ITHA Legislative Committee: President Mike Campbell Vice-President Chris Block
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"Good luck had just stung me, so to the race track I did go" - Levon Helm
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#9
04-26-2015, 06:26 PM
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Fan-friendly Arlington; Derby Day
$14.00 General Admission $2.50 Program $5.00 per cooler (no alcohol allowed whatsoever) $5.00 preferred parking  http://purchase.tickets.com/buy/Tick...value=05022015
__________________
“To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical.” Thomas Jefferson
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#10
04-26-2015, 06:49 PM
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 ) to get me there this year.
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#11
04-27-2015, 08:36 AM
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Just head to the back side OTB, or live life dangerously and hang out at Joe's on Weed Street, that only sets you back $2.....but the drifters there make $14 seem like a steal at AP. -bt-
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#13
04-27-2015, 04:14 PM
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Dellinger63 your post shows exactly why racing is dying in the area. It has little to do with slot machines. CDI apparently is planning a business model that does not include live fans. I have lived in the area my entire life and I have been going to AP since the early 1970s. It's criminal the way they squeeze the fans at every opportunity. Customer service means follow all of our directives or stay home. I now attend the live races only once or twice per year. I play at home or at the local OTB where there is no admission charge and frequent food and beverage specials. When I watch the feeds from other tracks at home or the OTB I get angry. Golden Gate regularly schedules dollar Sundays with $1 admission, program, hot dogs and beers. When I asked one of the Customer service reps when AP was going to try something similar I was told the chance was slim or none. If I go to the races with my wife and sister they will not even let me purchase 3 beers at once at the stands. Protecting me from overserving myself. If these customer service wizards had spent any time at the track they would realize that 98% of the customers that they have are trying to go home with more money that they came with. Guzzling multiple beers even at a low price doesn't help you make intelligent handicapping decisions. I'll stay far away from AP this year and I'm sure they will not miss me but when the doors close for good and they blame the politicians refusal to OK slots those of us who tried to be customers will know the real story.
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#14
04-27-2015, 06:03 PM
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Meanwhile this Saturday we'll see the park packed with miserable crying kids who are only charged $4 admission. We'll see their idiot parents lifting up said kids to self-service terminals to make picks on a machine the parent barely understands how to use. Each kid betting $2 and taking their sweet time completely ignorant that there are others in line seeking to bet far more. Throughout the day throngs will clog teller lines to place their $2 derby show bets first confirming show means 1rst, 2nd or 3rd on either American Pharaoh or Dortmund and then clog lines following the derby hoping to cash their $2.80 cent winners.  Wow I feel better getting that out.
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“To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical.” Thomas Jefferson
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#15
04-28-2015, 05:49 AM
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#16
04-28-2015, 08:48 AM
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Oh, I also forgot the idiots that will try to pay for their $2 show Dortmund bets at the window with a credit card and or insert their credit cards into the voucher slot on the self-service machines. And the idiot women that will attend simply because it's a reason to buy a big hat, no one can see over or around, waiting till they get their show bets down to dig around in their suitcase of a purse in search of $2 bucks to pay for it as if they didn't know the price of a $2 show bet.
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“To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical.” Thomas Jefferson
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#17
04-28-2015, 08:53 AM
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You figure you get a family of 4 coming through the turn styles, roughly $20-$24, those people are going to head to the picnic table, pay for overpriced food/beer, all while placing their $2 show bets, they're not breaking CDI, as CDI just nickles and dimes those people to death and essentially provides them little to nothing aside from suspect musical acts and balloon animals. Gamblers clearly are looking for some value on their money, and this track just isn't going to give it to them. None the less, the place is packed, even during the week, so usually when i go there i take my racing/gambling a little lighter, and enjoy the day for what it is, a stroll in the park, where i happen to be able to drink beer and gamble -bt-
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