Posted: 7/8/2008

As you are probably aware, the Florida HBPA has settled a protracted 78 day dispute with Churchill Downs, Inc. (CDI). On Monday, July 7, 2008, the FHBPA signed a purse contract and a slots contract with CDI. At the same time, Churchill dismissed, without prejudice, the claims it brought against the FHBPA and its Directors in an antirust lawsuit that was filed in April. While settlement was reached on the purse and slot contracts and on the dismissal of Churchill’s lawsuit against the horsemen, no resolution was reached on the issue of Advance Deposit Wagering (ADW) on Calder’s simulcast signal. The Thoroughbred Horsemen’s Group (THG), which was heavily involved in the Ellis Park ADW settlement, will negotiate ADW rates for the FHBPA.

The FHBPA would like to thank all those horsemen from around the country and their associations, whether HBPA or THA, for all their support during this very trying two and a half month period for Florida horsemen.

But mostly the FHBPA would like to thank those Calder owners and trainers who stood behind and strongly supported the FHBPA in their negotiations with Churchill Downs. These individuals took the full brunt of the 30% cut in overnight purses and stakes purse cuts that were as drastic as from $100,000 to $36,000. They were the unsung heroes in this whole unfortunate situation. Without their complete support while being battered financially, this whole matter would never have been resolved in the positive way that it was.

Now that the appropriate contracts are in place the FHBPA will work with Calder to make the Calder/Tropical meets as successful as possible.

Date Posted: 7/3/2008 3:00:50 PM Last Updated: 7/4/2008 10:26:56 AM

The minority ownership entity of 2007 Horse of the Year Curlin has taken issue with a recent judge’s order transferring its management to a court-appointed receiver, saying it would ask for the action to be reconsidered and set aside.

An attorney representing Tandy LLC, a Kentucky company affiliated with jailed attorneys Shirley Cunningham Jr. and William Gallion and their Midnight Cry Stable, said July 3 Kentucky state judge Roger Crittenden didn’t have all of facts presented to him before signing the order.

Attorney Andre Regard told The Blood-Horse Crittenden signed the order July 1 in response to a motion filed June 27, and claimed the judge didn’t allow for a response from Tandy. Regard is representing Tandy in a Boone County civil case against Cunningham, Gallion, and others, where a $42-million judgment has already been entered on behalf of the attorneys’ former clients. The plaintiffs claim they were scammed out of at least $65 million in the prominent Fen-Phen class-action lawsuit.

“I didn’t get a copy of the motion until (July 1),” said Regard. “The judge never contacted us. He never asked us for a response.”

Speaking through a court official, Crittenden declined comment, saying he had made his feelings known in the order.

In the order, Crittenden turned over the management of assets in Tandy to an already-established interim receiver, saying the company had defied “the spirit” of previous orders. Midnight Cry Stable, which is the “doing business as” operation of Tandy, includes in its assets the 20% ownership of Curlin, multiple grade I winner Einstein, and other horses.

“In regards to mismanagement of the company, my clients have no idea what he is talking about,” said Regard. “There have been no misappropriation of funds.”

Regard said moneys from purse winnings have always been deposited into an account for Tandy, and bills have been paid from that entity. He claims the judge’s order suggests that Cunningham’s wife, Patricia, and Gallion’s girlfriend, Melissa Green, who recently have been designated as lessees of Tandy horses, have held funds inappropriately for their own use.

“There is an implication from the judge’s order that (purse winnings) have been stolen,” he said. “We need to get the message out from Tandy that all moneys earned by Tandy horses pursuant to any lease has been deposited into Tandy accounts.”

The Blood-Horse could not physically verify the deposits, but Regard claims nearly $300,000 in winnings alone were deposited into Tandy accounts in May, and he would present statements in future filings. He added that in lieu of reported licensing issues in New York and other states, changes have been made to the deposit procedure: Winnings are now being deposited directly with the receiver, including Tandy/Midnight Cry’s portion of the combined $779,000 earned by Curlin and Einstein when they ran 1-2 in the June 14 Stephen Foster Handicap (gr. I) at Churchill Downs.

Regard said he intends to file a motion July 8 asking the judge to reconsider the order and set it aside.

“To say (Tandy) has been mismanaged is off-base – they have interests in the number- one and -four horses in the country,” he said, mentioning rankings of Curlin and Einstein in National Thoroughbred Racing Association polls (Einstein is sixth in the most recent poll).

The majority owner of Curlin is Jess Jackson’s Stonestreet Stables.

Date Posted: 7/5/2008 5:51:31 PM Last Updated: 7/5/2008 5:51:31 PM

The Florida Horsemen’s Benevolent and Protective Association announced on July 5 that it and Churchill Downs Inc. have reached an agreement on purse and slots machine contracts for Calder Race Course.

As of 2 p.m. (EDT) on July 5, Churchill Downs Inc., which owns Calder in Miami Gardens, Fla., had not commented on the Florida HBPA’s announcement.

In a statement, the Florida HBPA said “the contracts should be signed in the next day or two.” The Florida HBPA said its board voted unanimously to approve the agreements.

Signing of the contracts would apparently clear the way for the Florida HPBA to permit Calder to send its signal to race tracks outside Florida. But the two contracts apparently would not result in Calder being able to send its signal to and take bets from advance deposit wagering (ADW) companies.

The national Thoroughbred Horsemen’s Group is negotiating Calder’s contracts with ADWs. Since Calder opened its meet April 21, six New York State OTB franchises are the only ADWs the Florida HBPA has permitted to take Calder’s signal.

The signal blackouts, which include horsemen in eight states not sending signals to Calder, have led to a decline of more than 70% year-to-date in Calder’s all-sources handle. Amid that drop-off, Calder has reduced average overnight purses 30% and cut purses for most of its stakes.

CDI is considering the building of a casino with slot machines at Calder, but has not announced details or a possible date start construction.

Throughout negotiations, the Florida HBPA had said it would not sign a 2008 purse contract without a contract for slot machines, which Calder could have as early as 2009.

Posted: Saturday, July 05, 2008 3:01 PM

Ellis Park owner Ron Geary and Kentucky horsemen reached an agreement on Saturday that will allow the Henderson, Kentucky, track to open on Friday.

The Kentucky racing circuit faced a vast summer gap after Geary decided to close Ellis Park, citing a disagreement with horsemen regarding the distribution of account wagering revenue, prior to its scheduled opening on July 4.

Among the items agreed upon by track management and the Kentucky Horsemen's Benevolent and Protective Association were that the track would match the demands of the Kentucky HBPA and contribute to the Ellis purse fund an amount equal to 6% of advance-deposit-wagering handle or one-third of the takeout from wagers placed through ADW companies on Ellis races, whichever is greater. That rate is nearly three times the previous contribution, which track officials said could possibly result in a purse increase for races in the latter part of the meet.

The horsemen also agreed to disseminate Ellis's signal to all ADW outlets, including Television Games Network and Horse Racing Television, for all live racing at Ellis.

Under the agreement, Ellis will be able to maintain live racing five days a week with the possibility of making up the five days of canceled racing which resulted from Geary's closure announcement.

"The longterm viability of Ellis Park hinged upon our ability to be carried on all the ADW signals—including TVG and HRTV—Ellis Park had already negotiated," Geary said.

The Kentucky HBPA sent a letter to Geary on June 26 informing him of their intention to block Ellis Park’s racing signal to all advance-deposit wagering outlets.

Geary on Tuesday filed for a restraining order with the federal court in Owensboro, Kentucky, to prevent the horsemen from blocking the racing signal. The judge ruled on Wednesday against issuing a restraining order, clearing the way for the horsemen to block Ellis from participating with ADWs, which led to the closing of Ellis Park.

Posted 7/3/2008, 6:42 pm

The criminal trial of the two Lexington, Ky., lawyers who own a minority share in 2007 Horse of the Year Curlin ended in a mistrial on Thursday when a jury told the judge in the case that they were deadlocked for a second day.

Judge William Bertelsman of the U.S. District Court for the Eastern District of Kentucky in Covington ordered the mistrial after the jury could not decide whether to declare Shirley Cunningham Jr. or William Gallion guilty on one charge each of criminal conspiracy. As a result, Cunningham and Gallion will be tried again on the charge, though no date for a second trial has been set.

The mistrial result fails to clear up lingering confusion over whether Cunningham and Gallion will be eligible to be licensed in the states where Curlin plans to race. The two lawyers own 20 percent of Curlin through Midnight Cry Stable, but that stake has been placed in receivership by a judge who presided over a separate but related civil-court judgment against Cunningham, Gallion, and a third lawyer, Melbourne Mills Jr.

Mills was declared not guilty by the jury in the criminal trial earlier in the week. He was released from jail on Tuesday. Gallion and Cunningham remain in jail without bail on the orders of Bertelsman, who has said the two lawyers are a flight risk.

Prosecutors in the case had alleged that the three lawyers intended to defraud their clients out of tens of millions of dollars from a $200 million settlement reached in 2002 with the manufacturer of the diet-drug combination fen-phen. Last year, the civil court concluded that the lawyers had defrauded the clients.

Angela Ford, the attorney representing the clients in the civil case, said that she believed the civil-court judge, Roger Crittenden, would issue a ruling next week to formally transfer the lawyers' assets to her clients as part of the settlement of the case. The assets will include Midnight Cry's 20 percent share in Curlin.

For his next start, Curlin is being pointed to either the Arlington Handicap at Arlington Park in Illinois or the Man o' War Stakes at Belmont Park in New York, both on July 12. Ford predicted that all licensing issues regarding Curlin would be cleared up once Crittenden issued the order to transfer the assets.

"As of next week, that should clear things up for regulators in New York and Illinois," Ford said. "I can understand their confusion right now, but the order should clearly define the authority and management issues."

On Monday, Crittenden reiterated in an order that all of Midnight Cry's earnings were to be managed by the court-appointed receiver. The order was issued after Ford filed a motion on Friday questioning whether a leaseholder arrangement reached by Midnight Cry was in violation of the initial order to put the stable's earnings under the control of the court. Earlier this year, Midnight Cry's stake in Curlin was leased to Cunningham's wife, Patricia, to enable the company to receive a license in Kentucky.

The other 80 percent of Curlin is owned by Stonestreet Stables, a racing company owned by Jess Jackson and his wife, Barbara Banke.

Marc Laino, the executive director of the Illinois Racing Board, said that the board had not yet received a license application from any of the principals that own Curlin. He reiterated that the board could not issue an opinion on whether Midnight Cry, the receiver, or the former plaintiffs in the civil case would be eligible for a license until an application was filed.

"Obviously the clock is ticking," Laino said. "No matter what the case, we'd need to review quite a bit of paperwork before we issue a license. This isn't an easy process."

New York regulatory officials did not return phone calls on Thursday. Richard Getty, a lawyer for Stonestreet, was said to be out of the country on Thursday and didn't respond to a phone message.

Posted: July 2, 2008

CHARLES TOWN - An ongoing legal battle involving a horse banned from Charles Town Races & Slots took another turn recently when a circuit court judge weighed in on the matter.

The case involves an appeal filed in Jefferson County Circuit Court before Judge Gina Groh, in which horse owner Kevin Patterson claims that the West Virginia Racing Commission and the Board of Stewards at Charles Town Races have illegally banned his horse from racing.

Charles Town's stewards prohibited Patterson's horse, Brooklyn Bridge, from thoroughbred racing when they placed it on the track's veterinarian's list indefinitely on June 8, 2007. They said the horse's standard blood test showed "high EPO antibodies," and decided that the horse was to remain on the list, unable to race, until "an EPO antibody reading is below the cut-off standard." The Racing Commission upheld that decision in February.

The problem is, there is no West Virginia racing law that prohibits EPO antibodies or provides an acceptable "cut-off standard," according to Patterson's attorney, Paul Weiss, who filed an appeal of the Racing Commission's decision on March 5.

Weiss said the Racing Commission's attorneys, who work in the state Attorney General's Office, have not been able to show that a statute against EPO antibodies exists, and it appears that the stewards and the commissioners have acted well beyond their lawful powers and authority.

"It's absolutely shocking," Weiss said in a recent interview, adding that his client has suffered financial harm and lost more than $19,700 because his horse has not been able to race.

Weiss said Patterson does not deny that the EPO antibody was present in the horse, but says the antibody itself is not a drug. The presence of the EPO antibody simply suggests that the horse was exposed to erythropoietin, or EPO, at some point in the past.

His appeal stressed that Brooklyn Bridge's blood test showed no impermissible drugs in its system.

Patterson said he's extremely frustrated with the situation because Brooklyn Bridge is a good horse, but it's 11 years old and nearing the end of its career. He has owned the horse about eight years, and said neither he nor his trainer have exposed the horse to any illegal substances.

"I keep feeding him and keeping him happy, hoping for the day he can race again," Patterson said in a phone interview last week from his farm in Chambersburg, Pa. "This is the first time we've ever had a situation like this happen."

He said he is seeking support from the Charles Town Horsemen's Benevolent and Protective Association and the National HBPA.

"It is real important that all horsemen pay close attention and support this case, because the outcome of this lawsuit could have an effect on them for years to come," he said last week. "We as horsemen cannot continue to let the commission and the stewards make the rules up as they go."

In the appeal, Weiss also claims that the Racing Commission violated Patterson's due process rights, denied him fair consideration and failed to follow standard hearing procedures in regard to transcripts and official records.

Senior Deputy Attorney General Tom Smith, who is representing the Racing Commission in this case, could not be reached for comment.

After reviewing the petition for appeal and considering motions in the case, Judge Groh issued an order on June 19 that calls for the Racing Commission to set a new hearing date, and grants Patterson's request for the court to stay enforcement of the administrative order. That means his horse can be removed from the veterinarian's list and allowed to race while the legal proceedings continue.

Weiss said he is happy with Groh's order because it granted some relief to his client and should allow the horse to race for the time being. Weiss also said the judge got right to the main point of the case.

"She said the same thing we've said from day one - 'show me the statute or regulation that prohibits EPO antibody,'" Weiss said Tuesday afternoon in a phone interview.

Weiss also said if Brooklyn Bridge is not allowed to race, the track would not be following the judge's order.

"If we have any further difficulty with them, I do believe that would be contempt of court," he said, adding that Patterson intends to enter his horse in a race this weekend.

Patterson said he tried to enter Brooklyn Bridge in a race this past Saturday, but the stewards did not allow the horse to be entered because the Racing Commission's attorney had not informed them about Groh's decision. However, he faxed a copy of the order to the stewards and was told there shouldn't be any more problems complying with the court order.

Weiss said it's not over yet, and he is waiting for the Racing Commission to set a new hearing.

"We're pleased with it for now," Weiss said.

Posted: Wednesday, July 02, 2008 5:09 PM

At its next meeting, the Association of Racing Commissioners International’s Model Rules Committee will consider several recent recommendations from the Thoroughbred Safety Committee, formed by the Jockey Club and the Welfare and Safety of the Racehorse Summit.

When it meets on August 1 in Saratoga Springs, the committee will consider further limitations on toe grabs in Thoroughbred racing, proposed whip rules, changes to claiming rules, and requiring trainers to receive continuing education. Larry Eliason, of South Dakota, chairs the committee.

The safety committee has called for an immediate ban on toe grabs other than two-millimeter wear plates and the elimination of turn downs, jar caulks, stickers, and any other traction devices worn on the front shoes for racing and training on all surfaces. The RCI passed a model rule on toe grabs in 2007.

While the RCI passes model rules, it is up to each state to adopt the rules. The goal is for consistent racing rules from state to state.

The safety committee also recommended a model rule that establishes maximum weight and length for whips. It also asked for a prohibition on striking a horse with the arm raised above the shoulder and called for an inspection of horses after races.

The model rules committee also will consider proposed changes in model claiming rules to require that claims be voided under certain conditions and circumstances. For instance, the Welfare and Safety of the Racehorse Summit recommends voiding claims could if a horse fails to finish a race. Also, the summit has asked that trainers be required to receive continuing education.

Comments on proposed model rules can be emailed to rules@arci.com.

Posted: Wednesday, July 02, 2008 2:44 PM

The Congressman who spurred a hearing on equine safety and drug issues believes further action will be required.

Representative Ed Whitfield (R-Kentucky), the ranking member on the Commerce, Trade, and Consumer Protection subcommittee that conducted the June 19 hearing, said federal legislation is a strong possibility at this point.

“It is clear that the 38 different state racing commissions, as well as the numerous other interest groups, are not in a position to protect this industry,” Whitfield said through his press secretary. “Following last month’s hearing, it has become apparent that Congress will no longer allow the status quo.”

Whitfield found some of the testimony to be “riveting,” and noted that it will take some time for Congress to determine its next move. He said in the coming weeks and months, he looks forward to meeting with more industry leaders.

Ed Martin, President of the Association of Racing Commissioners International, a trade association that includes representatives from each racing state’s regulatory body, is concerned that federal oversight could lead to more bureaucracy. Also, he is not sure how such federal regulation would be funded.

Posted: 6/13/2008

Lexington, KY., Friday, June 13, 2008 – The National HBPA will hold its Summer Convention and 2008 elections July 17 – 20 at the Hershey Lodge in Hershey, PA, hosted by the Pennsylvania HBPA and National HBPA President and Chairman Joe Santanna.

Highlighting the agenda, will be a speaker forum on Friday, July 18th entitled “Welfare and Safety of the Horse – Where We Are and Where We Are Going” that will tackle the hot button issues surrounding the racing and breeding industry’s movement toward improved safety of horse and rider.

A key talking point for the forum speakers will undoubtedly be the June 19th House Subcommittee on Commerce, Trade, and Consumer Protection hearing on “Breeding, Drugs, and Breakdowns: The State of Thoroughbred Horseracing and the Welfare of the Thoroughbred Racehorse”. Of serious concern to horsemen will be any proposed amendment to the Interstate Horseracing Act and how that might open the door for any other amendments which could affect future negotiations with track operating companies.

Nearly 200 horsemen representing National HBPA affiliates from across North America will convene during the four day meeting during which they will discuss and analyze various welfare and safety recommendations. In particular, the March 17-18 Welfare and Safety of the Horse Summit (WSS) and Jockey Club Thoroughbred Safety Committee (JCTSC) findings will be put into greater focus.

The endorsement of any recommendations will be left to the National HBPA Board of Directors meeting on Sunday, July 20th.

Other highlights include:
• Fri. Jul. 18th - An update from Thoroughbred Horsemen’s Group President Bob Reeves.
• Fri. Jul. 18th – Evening at the Races sponsored by the National HBPA and the Hollywood Casino at Penn National Race Course.
• Sat. Jul. 19th – Medication Committee forum and update on medication and testing issues.
• Sat. Jul. 19th – Update on current efforts addressing the growing labor shortage in racing and how several affiliates are finding new alternatives.
• Sun. Jul. 20th – National HBPA Board meeting and elections.

National HBPA President and Chairman Joe Santanna:

“The National HBPA applauds the hard work our industry has been undertaking to address the issue of improved welfare and safety for horse and rider. We have dedicated substantial time during our upcoming convention on this issue and we look forward to reviewing and acting on any and all recommendations, especially those from the Welfare and Safety of the Horse Summit and The Jockey Club Thoroughbred Safety Committee.”

National HBPA 2008 Summer Speaker Forums

Forum 1 / Friday, July 18 / 9 – 11am

“Welfare and Safety of the Horse – Where We Are and Where We Are Going” Moderator:
Remi Bellocq, CEO, National HBPA
Speakers:
Ed Bowen, President, Grayson-Jockey Club Foundation; Welfare and Safety of the Horse Summit.
Michael Dickinson, Top International Trainer of 2-Time Breeders’ Cup winner DaHoss; Founder Tapeta Footings
Jay Hickey, President, American Horse Council
Ed Martin, President, Association of Racing Commissioners International
Ken McPeek (Tentative), Top North American Trainer; Trainer of 2002 Belmont Stakes Winner Sarava
Nick Nicholson, President and CEO, Keeneland
Dr. Scott Palmer, Past President, AAEP; On-Air Representative AAEP “On-Call” Program
Alex Waldrop, President & CEO, NTRA

Forum 2 / Friday, July 18 / 1 – 2 pm

“Thoroughbred Horsemen’s Group – Why Owners Have the Right to Fix the Simulcast Model!”
Speaker: Bob Reeves; President, Thoroughbred Horsemen’s Group; Chair, Wagering & Alternative Gaming Information Committee;

Forum 3 / Saturday, July 19 / 10 – 12 Noon

“Equine Medication and Testing Update”
Moderator: Kent Stirling, Executive Director, Florida HBPA & Chairman, NHBPA Medication Committee
Speakers:
Dr. George Maylin, “Equine Drug Testing: New Horizons”, Director, New York State Racing and Wagering Board Drug Testing and Research Program, Cornell University, Ithaca NY
Dr. Thomas Tobin, Gluck Equine Research Center, University of Kentucky