[Kasept]

Among other positive items this fall in racing, Charlie Hayward explains why the negotiations to raise the signal fees are important.. and fair: https://www.thoroughbredracing.com/c...an-racing-fall

Good news item #3: Simulcast impasse between Stronach Group and Mid-Atlantic Cooperative

At first glance, one might not consider the trouble between Stronach’s Monarch Content Management and the collection of small Thoroughbred and Standardbred tracks that make up the Mid-Atlantic Cooperative to be good news. But it is good news, and it is important for the future of quality Thoroughbred racing in the U.S. As I wrote in an earlier commentary, higher-quality, net-exporting racetracks have long been shortchanged in commission when they sell their signal to simulcast locations.

Monarch represents Stronach tracks Gulfstream Park, Santa Anita, Pimlico, Golden Gate, Laurel, Pimlico and some other major tracks such as Tampa Bay Downs. The Mid-Atlanic Cooperative generally represents smaller tracks and negotiates a set fee for all of their member tracks. However, at least two Mid-Atlantic member tracks, Colonial Downs and Suffolk Downs no longer conduct Thoroughbred racing and at least five of their member tracks operate slot machine gaming businesses at their racetracks. The fact that these smaller tracks make more money on a Gulfstream Park simulcast race than Gulfstream Park and its horse owners is not in the best interest of the future of Thoroughbred racing. I congratulate Scott Daruty, the president of Monarch, for forcing this issue and not caving to the short term cash flow benefit.

An anonymous commenter posted the following beneath a Dec. 1 Daily Racing Form article addressing the situation written by Matt Hegarty:

“30 years ago the pittance that the simulcast sites paid to the tracks (content) was considered found money.

Now the content provider gets 3-5% depending on the track while the simulcast site gets 15-17%, the blended takeout being 20%. Why shouldn’t it be 10-10%. In fact if a site doesn’t provide live racing why not 15-5% to the content side. The fact is the larger tracks have been subsidizing the smaller tracks by this split of the simulcast money.

Bottom line is Stronach is right….”

Anonymous, whoever you are, you have it absolutely correct.