NYC OTB reaches deal on bankruptcy

NYC OTB reached a deal with its creditors to emerge from bankruptcy. This is good thing for horse racing and needed to happen. It also is a good thing for New York City.

The agreement provides that NYRA, owed $24 million dollars by NYC OTB and the largest creditor will run the internet and phone wagering systems in lieu of a total of $65 million in debt.  While the agreement provides for a smaller share for NYRA and other tracks on wagering made at the OTB parlors, they will manage the internet and phone wagering which is a larger percentage of the total betting dollars.

Being that NYC OTB is the largest wagering institution in the country, it was important to racing as an industry that this be saved. Racing cannot survive without NYC OTB, it is racing’s version of “too big to fail.”

Should the Legislature and Bankruptcy court approve the plan, it is another sign that racing is on a direction towards recovery in New York. The $2.4 billion dollar a year industry is vital to the New York economy despite being virtually ignored by government on a state level. This will allow NYRA to recoup dollars that NYC OTB had been witholding which will help, along with VLTs, to secure the future of racing in New York.

Todd Engel

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Secretariat The Movie: Truth is better than Fiction

hoping to be entertained and to some degree have the ability to teach my kids about the greatest race horse I saw in my lifetime.
I was disappointed. Disney took a great story as evidenced by Bill Nack’s wonderful book, and made it schmaltzy.
Let’s start at the begining. In reality, Penny Chenery Tweedy was the daughter of Christopher Chenery, a very wealthy man in his own right. Disney has you believe that the family was just about out of money and forgets that Meadow Stable owned Riva Ridge, the 1972 Kentucky Derby and Belmont winner.
I never met Lucien Laurin, however I had met his son Roger. John Malkovich’s version was a caricature of a trainer; flamboyant, stubborn and domineering. I am not saying he wasn’t those things, but it clearly appears that the movie played it over the top.
Then there is the training of the horse. Disney would have you believe that all race training was done at Meadow Farm in Virginia, and that the horse was sent off to the track before each race. While this is the English way of training and works well there; in the States the horses are trained at the track as Secretariat was including his time in Florida between his two year old and three year old campaigns.
I wanted to like Secretariat. I wanted the movie to be representative of the horse and the people surrounding it. It ended up being a feel good movie about a great horse with factual flaws. I guess I wanted it to be Seabiscuit, and instead it was second rate.
I was hoping to be entertained and to some degree have the ability to teach my kids about the greatest race horse I saw in my lifetime.
I was disappointed. Disney took a great story as evidenced by Bill Nack’s wonderful book, and made it schmaltzy.
Let’s start at the beginning. In reality, Penny Chenery Tweedy was the daughter of Christopher Chenery, a very wealthy man in his own right. Disney has you believe that the family was just about out of money and forgets that Meadow Stable owned Riva Ridge, the 1972 Kentucky Derby and Belmont winner.
I never met Lucien Laurin, however I had met his son Roger. John Malkovich’s version was a caricature of a trainer; flamboyant, stubborn and domineering. I am not saying he wasn’t those things, but it clearly appears that the movie played it over the top.
Then there is the training of the horse. Disney would have you believe that all race training was done at Meadow Farm in Virginia, and that the horse was sent off to the track before each race. While this is the English way of training and works well there; in the States the horses are trained at the track as Secretariat was including his time in Florida between his two year old and three year old campaigns.
I wanted to like Secretariat. I wanted the movie to be representative of the horse and the people surrounding it. It ended up being a feel good movie about a great horse with factual flaws. I guess I wanted it to be Seabiscuit, and instead it was second rate.
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Rachel Alexandra’s Retirement

Yesterday, owner Jess Jackson announced that he was retiring 2009 horse of the year Rachel Alexandra. While this was not unexpected based on her performance this year, it is still bittersweet due to the promise that she showed last year.

The fact is, during 2010 the horse was never able to regain the magical form she showed during 2009 when she won the Preakness by over 20 lengths. She struggled in March during her comeback and I watched with sadness as she was not able to win the Personal Ensign in Saratoga.

After watching that race, it was clear she was not the same horse she once was. So now, we see if as a broodmare she can produce horses worthy of her lineage. We will see now if Jess Jackson was right in making that purchase after the Preakness for this is the time when Rachel can prove that she was worth all those millions Jackson paid a year and half ago.

Jess Jackson said he will breed Rachel to his other champion, Curlin. On paper that sounds like it will be a superstar horse. Time will tell. For now, we should remember Rachel as the champion she was on the track and anticipate her offspring as they come to the track.

Todd Engel
tengel@engelatty.com
Twitter: @toddengel

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New York Bred Sales Company Cancels October Sale

According to a press release sent out by the New York Bred Sales Company, the NY Bred sale scheduled for Saratoga on October 10, 2010 is cancelled for this year. NYBSC President Joe McMahon said that due to scheduling difficulties this one year absence is necessary.

I cannot comment on the why of cancelling the sale. Knowing the leadership of this group, there had to be sufficient cause for them to cancel a sale of NY Bred yearlings, weanlings, and mares especially now that VLT legislation is finalized.

The difficulty is that this sale was one of the few places where entry to mid level NY Bred horses could be purchased by owners looking for value. It is also one of the few sales, other than the Fasig Tipton Preferred sale that is geared to NY Breds only. This is a time when we as an industry needs to bolster the NY Bred program and home bred yearlings.

The number of mares being covered in NY continues to drop. This will make NY Bred racing more difficult short term. Fewer horses will cause fewer fields and less competition. This will mean that a once strong program will continue to weaken. This is evidenced by the inability to conduct this sale in October.

It is my hope that next year we will see a sale in October. It is also my hope that we will see new sires and mares coming to NY creating a program of strength as the purse structure will hopefully increase with the onset of VLTs.

Todd Engel
tengel@engelatty.com

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What will you do with your horse when it’s done racing?

A recent article in the Saratogian highlights an important point that often goes disregarded in racing circles:

What happens to a horse once it is done racing?

An owner of a race horse has an obligation to make sure that the animal does not end up in the kill pen once its racing days are done. Those horses that earn enough money or have the breeding can either go to stud or become broodmares. This does not take into account the overwhelming number of horses that either are gelded or cannot breed by virtue of their production on the track.

Fortunately there are some wonderful retirement agencies that will take care of the horses. Thoroughbred Retirement Fund (TRF) is a national organization that adopts out horses and runs programs nationwide. Old Friends is in Kentucky and Saratoga taking care of those pensioned stakes winning horses that otherwise have no home. Purple Haze at Finger Lakes has an adoption program where it will find the horse a suitable home.

The problem is most of these places are over booked. That said, the owner who retires the horse is still responsible if not legally but morally to find the horse a suitable post racing home. The time to consider that is while the horse is racing so that the owner knows where the horse could go at the end of its career.

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Will NY ever get a VLT provider?

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.

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Desormeaux Fails Breath Test

According to 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 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.

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.

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NYRA is in Trouble

As both a horse owner and a fan, I am saddened to read the news in the Thoroughbred Times that NYRA has let its 1,400 employees know that layoffs could begin as early as June 9th.

New York’s thoroughbred business generates 2.4 billion dollars of economic growth to the State of New York. This is clearly not just NYRA alone, but as one of the leading racing providers nationally, NYRA has a large hand in the industry and its possible closure will create a trickledown effect. Not only will the loss of NY thoroughbred racing on the top level impact NYRA, their employees, owners, trainers and jockeys but the breeders and communities where the tracks are will be economically devastated.

NY breeding has declined precipitously since the announcement and ultimate stagnation of VLT’s in 2001. Fewer NY mares are foaling and as a result there are fewer NY Bred horses to run at our tracks. The breeding program could be decimated by this potential shutdown because if the horses aren’t racing at the top level, then there is not going to be any interest in breeding in NY. This will harm both large farms, but more importantly the small breeder who make up a significant portion of the NY breeding program.

The communities where the tracks are located are going to be economically harmed. Garden City/Hempstead, where Belmont Park is located and Saratoga rely heavily as a community on the economic impact of racing and the overflow that racing fans bring. Saratoga Springs as a community relies upon the economic boost that racing brings. Should NYRA close, I wonder what will happen to this beautiful bucolic community.

NYRA needs to be saved. Not only for the owners, like me who are vested in the product, but for the communities that benefit from its presence. If you live in NY, contact your state representative and make sure you educate them about the need to keep NYRA going.

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My Thoughts on the Paragallo Conviction

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

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Moving my practice

Dear Friends,

I am pleased to announce that effective December 22, 2009, I will be relocating my practice to 214 N. State Street, Syracuse, NY 13203. My new telephone number will be 315-295-1450. My new fax number will be 315-478-1687. My email will remain tengel@engelatty.com.

My Saratoga office remains at 1104 Middleline Road, Ballston Spa, NY 12020.

I will continue to represent individuals and small businesses in the following practice areas:

• Estate Planning and Administration
• Trust Drafting and Implementation
• Business Development and formation
• Personal Injury Litigation
• Commercial Litigation
• Equine Matters, including partnership formation, syndication, licensing issues, or any other associated matter.

I look forward to this new opportunity and am excited to continue to provide the quality personal based representation you have come to expect from Engel Law Offices. Please contact me with any questions regarding this move.

Wishing you and your family the best during this holiday season.

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