New York Horse Lawyer

posted by Todd Engel on Aug 19

Today’s Saratogian highlights an important point that often goes disregarded in racing circles. What happens to a horse once it is done racing?

Todd Engel
tengel@engelatty.com

posted by Todd Engel on Jul 17

Today’s Saratogian has a wonderful article about the flaws in the process for awarding a video lottery terminal (VLT) p;rovider for Aqueduct Race Track.

It continues to look less likely that New York will have a VLT operator anytime soon. This is problematic because the New York Comptroller Thomas DiNapoli has done an audit this week indicating that the New York Racing Association will face financial ruin in the next 12 months if a VLT operator is not in place.

While I would like to believe horse racing can attract and generate a new fan base the industry has shown that does not seem possible. As a result the industry has looked towards VLTs as a way to generate revenue both for the track operator and the State. New York State and NYRA both stand to benefit from this process. The bid process calls for an immediate payment of at least $300 million dollars to New York State. Additionally NYRA is supposed to receive a $20 million payment at the inception which would help NYRA stave off financial insolvency.

There is no optimism at this point regarding a VLT contract. I believe that either Aqueduct Entertainment Group (AEG) who has already filed a suit after having the VLT award revoked or SL Green who recently was denied the VLT contract will tie this process up with litigation beyond the point when NYRA can financially survive. I only hope as an owner and fan that I am wrong.

posted by Todd Engel on Jul 2

According to www.bloodhorse.com, jockey Kent Desormeaux was taken off his mount Hold Me Back in yesterday’s Domnion Day Handicap at Woodbine because he failed a required breath test prior to riding the Bill Mott trained horse.

While this potentially cost Desormeaux purse money, as Hold Me Back won the race, that is truly immaterial. Racing officials have an obligation to protect the horses, jockeys and bettors from any potential dangers on the track. A jockey who has taken alcohol or drugs prior to riding in a race is an example of a clear danger that needs to be protected against. The stewards acted quickly and properly in keeping Kent from riding that race, however was the punishment sufficient?

Kent was suspended for that one day, fined $100 and sent back to ride some more. Should the stewards either in Should the stewards in Canada, where Desormeaux rides infrequently, or in New York where he is a regular rider require more extensive evaluation or treatment before he is allowed to ride again? Quite possibly they should.

The investment owners have in horses can range into the millions of dollars. The owner places trust into the hands of the jockeys to make sure that the horse is not injured and that the other jockeys and horses are safe in their race. When a jockey has a potential alcohol or drug problem, there should be steps taken to protect the investment in the animal as well as the health of the jockey.

Hopefully Kent Desormeaux will get help if it is needed. Hopefully the states will continue to make sure that the jockey colony and the horses they ride are safe.

Todd Engel
tengel@engelatty.com

posted by Todd Engel on Mar 12

Paragallo Conviction
On March 10, thoroughbred horse owner and breeder Ernie Paragallo was convicted of 33 out of 34 counts of animal cruelty in a non jury trial in Greene County, NY. Good for all concerned.

Mr. Paragallo owned a farm where over 160 horses were found to have been maltreated in April, 2009. As a result, his owners’ license was revoked by the New York State Racing and Wagering Board and he is scheduled to be sentenced in April on these convictions.

Paragallo’s conviction should send several important messages.

1. Owners and trainers have a high standard to live up to. They are charged with making sure horses in their ownership or care are treated properly and not abandoned. There are a number of terrific organizations – the Thoroughbred Retirement Fund, Equine Advocates, Exceller Fund, Re-Run and others – who care for horses and help adopt them out. If you find you can no longer care for your horse, contact these organizations. They will find a way to help avoid misfortune the likes of Mr. Paragallo.

2. The industry needs to make sure people involved in racing are not going to turn their backs on horses after their racing career is over. It may mean a financial commitment, and even a moral one, but horses cannot speak for themselves. Clearly the Racing and Wagering Board can only do so much.

3. Racing does not need any more negative stories. We need to take the initiative to accentuate the positive, so that we can attract a fan base. Presently the wagering and attendance are both dropping and we will continue to see that trend if the industry does not do something to correct it.

If anything positive can come from Paragallo’s conviction, it is that those in the racing industry need to come together to protect it.

Todd Engel
tengel@engelatty.com

posted by Todd Engel on May 14

Jess Jackson recently purchased Kentucky Oaks winner Rachel Alexander for the price of $10,000,000. Now, pardon me if I watch as my Kendall Jackson wine prices all of a sudden skyrocket!

To most of us, ten million dollars is an astronomical amount of money. The logical question then becomes how does one come up with such a figure as a sales price? The second question that comes to mind is why would someone pay it?

In analyzing a sales price for a horse of Rachel Alexander’s magnitude, remember she just won the Kentucky Oaks by over 20 lengths, one needs to evaluate several criteria. First, the horse’s earning potential on the track. Jackson owned Curlin, the horse who presently has the most earnings of any race horse from purses on the track with just over $10.2 million dollars. He knows that the likelihood that this filly will achieve that sum is remote. This is because should she continue to run against male competition as she is scheduled to do in the Preakness, she could be competitive but it is not guaranteed that she will be successful. Should she run against fillies she will find short fields and few competitors and more importantly, lower purses. As a result the valuation is minimally based upon potential race earnings.

Rachel Alexander presently is the broodmare prospect for 2009. It remains to be seen whether her racing will bear that out, but assuming that statement hold up, how will Jess Jackson recoup his investment? As the adage goes it will take money to make money because the expectation I am assuming will be that Rachel Alexander will make money through breeding.

The difficulty is that this is completely speculative. If Rachel Alexander is infertile, then the purchase will never recoup its value. Unlike a colt who can be booked for multiple mares in a season thereby earning stud fees on a recurrent basis, a filly or mare can only recoup monies after the foal is born and raised for a year and then sold at the yearling sales. Assuming a ten year breeding cycle, Mr. Jackson is betting that two things happen, first Rachel Alexander produces great runners with outstanding confirmation that would bring in excess of a million dollars at a yearling sale. Secondly, that the economy turns around so that there are interested buyers for the foal.

I wish him luck with this. As for me, I am skeptical that Mr. Jackson will ever recoup his investment.

Todd Engel
tengel@engelatty.com

posted by Todd Engel on Apr 30

For me, this weekend is the Superbowl, the Daytona 500 and the World Series all wrapped into one package. This weekend is the 135th Kentucky Derby. For as long as I can remember, my family gathered around and watched the Derby, we would analyze the race and determine which horse we liked. It is something we continued eve as we became more involved in the thoroughbred industry, sometimes foregoing our heads for our hearts given whether we knew anyone involved with one of the horses; trainer, owner, jockey or breeder. The Kentucky Derby has been and continues to be the pinnacle of horse racing. It is run early in the year, however which means that the horse who wins this one race may not be the best horse at the end of the year, but usually he has a pretty good shot. The road to the Derby is paved with many pretenders, but at the end of the day Saturday, we will know the champion.
I usually spend a lot of time watching the prep races to get a good handle on the different horses and where they are coming up to the Derby. I watch the trainers and the jockeys. I am a believer that Churchill Downs and the Derby in particular is a race for the closer. I therefore come into handicapping the Derby with an inherent bias towards a horse who can come from behind. I remained consistent this year with that theory. That does not mean that there hasn’t been winners on the lead, I just believe that the track favors a closer. In 1994, Go for Gin, a Nick Zito trained colt was 12 lengths off the lead at the top of the stretch and managed to win going away, and he was not the only closer.
My horse to beat, Quality Road, scratched last week due to the fact that a second crack was found in his hoof. Hopefully it will be patched and he will be around for the Preakness and or the Belmont. He looks to be an exciting horse and I look forward to watching him later in the year.
This year, I think that Friesan Fire, a horse trained by Larry Jones will be at or near the front of the pack. He will be the strongest contender of the front running style horse. If West Side Bernie is going to pull an upset of significant magnitude, he will have to do it on the lead; however I do not expect him to make the distance with this group. I also suspect Regal Ransom, the Godolphin representative to be near the front.
Those running at the middle of the pack will be led in stature by Pioneer of the Nile. I suspect Bob Baffert, who has won the Kentucky Derby three times will hold him a little off the pace meaning third through sixth for the first quarter mile to half mile when he will make his move. Many feel that this horse, who is the only one in the Derby from last year’s two year old campaign, is the one to beat. I think he will be live for exactas and trifectas but don’t think that he will give Baffert his fourth Derby trophy. Expect General Quarters to try to make a move from this group; however I think that the field outclasses this horse and he will find a place in different stakes company throughout the year.
Starting the Derby at the back of the thundering pack will be the morning line favorite, I Want Revenge. This horse, who exhibited a tremendous move in the Gotham, will come off the pace and close to be at or near the front at the wire. I think that this campaign may have taken a little out of him, crossing the country twice to run in New York from his California base. The positive is his move from Polytrack showed an affinity for the natural dirt surface which is similar to that found at Churchill Downs.
Bill Mott will have his Polytrack specialist Hold Me Back will be coming from off the pace as well. My concern about this colt centers around his success on Polytrack. I am not a believer that a horse who is successful on Polytrack automatically translates into a win on dirt. Clearly horses who do well on dirt do not automatically translate to wins on Polytrack. Should Hold Me Back handle the dirt, he might be in the mix for the trifecta.
Another vying for the lead from behind should be Dunkirk. Dunkirk is an interesting horse in that he has only had three starts before the Derby. Dunkirk is a fresh horse, not having a start since the Florida Derby, the same technique used by Big Brown’s trainer Rick Dutrow, last year. He does have three bullet workouts. Interestingly, he was a 3.7 million dollar purchase as a yearling. Now, I am one who believes that a horse does not know what he was sold for, so the purchase price of a yearling is of little value, except in certain circumstances. The Derby is one of those circumstances because breeding has so much to do with the stamina needed to win the Derby. I think Dunkirk, a horse by Unbridled Song, (a derby winner) out of a mare sired by AP Indy (a derby winner) has the breeding to handle this race.
My picks, for entertainment purposes only are:
1st: Dunkirk
2nd Friesan Fire
3rd Hold Me Back
4th Pioneer of the Nile

Sing My Old Kentucky Home, have a mint julep and enjoy the race, it should be a good one.

Todd Engel

tengel@engelatty.com
www.engelatty.com

posted by Todd Engel on Apr 10

Ernie Paragallo is accused of neglecting over 170 horses on a Greene County, NY farm. The ASPCA reported that one young stallion died as a result of the malnutrition and treatment (actually, lack of treatment) received by these horses while under Paragallo’s care. According to The New York Times, who broke the story on Saturday, Paragallo failed to treat the horses and left them malnourished and without hay for bedding, or feed. Horses were hundreds of pounds underweight and in deplorable condition.

The Albany Times Union reported today that the New York Racing Association revoked Paragallo’s privileges to run his family’s stable (Paraneck Stables), and scratched the horses entered through next Wednesday as a result. Good for NYRA. Good for the state for investigating Paragallo and doing what they can — to not only save the horses, but to get him out the sport of horse racing.

Owners of thoroughbred horses have an absolute obligation to care for our horses. We have taken on the responsibility of caring for these animals and should recognize that even off the track we need to care for our animals.

What Paragallo did is unconscionable, and shows that he is not involved in horse racing for the love of the sport. Rather, he is in it for simply for the glory. Clearly, it is not just his responsibility, because both of his daughters (aged 21 and 26) are listed as the owners of Paraneck Stables, while he is allegedly the agent. All responsible parties should not only be prosecuted for neglecting and mistreating these animals, but the State Racing and Wagering Board should pull Paragallo’s license for good.

Horse racing can be a beautiful sport. It can be exciting and exhilarating to watch your horse come down the lane and strive for victory. Trainers work hard to make sure the horses are ready to run. Vets work hard to make sure that the horses maintain soundness. Good owners work hard to allow these people to do their jobs.

What Paragallo did by turning his back on the horses that he and his family own is not only a crime, but something that will give creed to those people who say there is cruelty to animals involved in racing. Paragallo makes it hard to say there are good people in racing, but guess what? There most certainly are good people in racing.

While what he did puts a blight on our sport, we as owners and fans of horse racing need to fight back. We need to let people know of the beauty of the game. We need to make sure that Paragallo is used to show the good we can do in racing rather than the bad as he has shown all too well.

Todd Engel
tengel@engelatty.com
www.engelatty.com