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HORSEMEN/BREEDERS REJECT RECOMMENDATION TO REDUCE DATES

Press release from the NJ TB Horsemen's Association..

West Long Branch, NJ – A November 15, 2010 memorandum to Governor Christie from Jon Hanson calling for the reduction of thoroughbred racing days from the statutory minimum of a 141 day meet to a 59 day meet at Monmouth Park was resoundingly rejected by the New Jersey Thoroughbred Horsemen’s Association and the Thoroughbred Breeders Association.
Calling the Memorandum unacceptable, NJTHA President John Forbes said the recommendation was unworkable.

“The most recent recommendations from Chairman Hanson would destroy thoroughbred racing and breeding in New Jersey. A solid live-racing calendar with ample racing opportunities is the foundation this industry is built on, said John Forbes, President of the NJTHA. “Live racing is the life blood of our industry. To reduce our calendar from the statutory requirement of 141 days to 59 would take away too many jobs from New Jersey citizens working in the horseracing industry. For this reason, these workers would have no choice but to leave New Jersey and live/work/race in surrounding states that schedule year around thoroughbred racing with solid purses supported by numerous revenue streams including casino wagering and slot machine wagering at racetracks.”

Any incentive to own and/or breed thoroughbred horses in New Jersey would disappear because live racing enables a thoroughbred owner to see a return on his/her investment. The same goes for breeding. Incentives to breed racehorses are tied to racing purses. The less racing the less opportunity to run a Jersey bred horse.

“Why would a New Jersey based breeder keep their horses or farms in New Jersey if there aren’t enough opportunities to receive a return on their investment?” said Tom Swales, President of the TBANJ. “The answer is they won’t. New Jersey is surrounded by racing states including New York, Pennsylvania and Delaware where there is a proven commitment to their horse racing and breeding industry by state government. These are states that enable live racing to succeed, which in turn allows breeding to thrive, and breeders to earn a return on their investment,” he added. “Without adequate live racing opportunities, existing, productive farmland will lose value and New Jersey will be left with nothing but land ripe for commercial development by individuals such as Jon Hanson who have made their living for decades off the build out of open space and farmland.”

New Jersey has lost 50% of its farmland over the past 50 years according to the New Jersey Farm Bureau. Horsemen and breeders believe this trend will only accelerate with a reduction of racing days resulting in more farmland and open space being swallowed by both commercial and residential development.
Thoroughbred horsemen and breeders are confident that if the Hanson recommendations to reduce live racing are accepted by the Governor, the industry would have a solid legal basis to challenge the change because the recommendations unlawfully deprive the industry of its existing statutory and contractual rights.

Currently, the law requires 141 days of live thoroughbred racing until 2016 with no less than 120 days of live thoroughbred racing after that year. This is further memorialized in a contract between the NJTHA and the New Jersey Sports and Exposition Authority (NJSEA), the owners of Monmouth Park and the Meadowlands, ensuring that the 141 days of thoroughbred racing would be run at either or both of these racetracks and a court approved settlement agreement dated June 30, 2004, which resolved litigation over the minimum level of live racing days which is enforceable in court.

The horseracing industry is acutely aware that the Hanson recommendations were a direct result of the NJSEA’s breach of the court settlement agreement and contract between the two parties. The court order sets forth the following stipulations:

1. The NJSEA or its successor shall be obligated to run 141 Thoroughbred racing dates in the years 2008 through 2016 inclusive. Beginning 2017 the NJSEA or its successor, may seek a reduction in dates, but never for less than 120 days;

2. The NJSEA agrees it will not seek, recommend or support any legislative changes in the number of Thoroughbred racing dates for any year which is non-consistent with this Agreement;

3. The NJSEA agrees that it will only apply for racing days consistent with this Agreement and that it will not accept any allocation which does not comply with the dates and schedule set forth herein;

4. It is specifically intended and agreed by the Parties that in the view of the possible sale/lease of Monmouth Park and the Meadowlands racetracks to another entity, that this 2004 Modified Agreement shall be binding and enforceable upon all parties, successors, ownership entities, purchaser, lessee/lessor, assignee/assignor, or any form of successor to the current racetrack owners;

5. This 2004 Modified Stipulation of Settlement shall be enforceable through an action in the Superior Court of New Jersey, Chancery Division, Monmouth County;

6. It is expressly represented and certified that the individuals executing this 2004 Modified Agreement on behalf of their respective parties have the authority to execute and bind the parties into this 2004 Modified Agreement; and

7. It is further represented that, as of the date of filing hereof with the Court, this 2004 Modified Agreement has been ratified and an appropriate Resolution issued by the Board of each party hereto.

Horsemen and breeders believe the NJSEA has consistently violated the terms of this agreement which ultimately will be litigated.

With respect to the dual racing meet with both breeds racing at Monmouth Park, the thoroughbred horsemen and breeders have considered the overall concept and in fact, have supported the concept – not as their first choice, but as a way to try to reduce the overall cost of racing for New Jersey.
“We were willing to embrace the idea if it was done correctly and providing that it did not negatively impact either breed,” said John Forbes. “In no way did it mean we would accept a reduction of the statutory 141 days of live thoroughbred racing. We are willing to work with Governor Christie and Mr. Hanson to further study this concept as long as the overall result is in no way detrimental to New Jersey’s racing and breeding industry.”

Off-track wagering and account deposit wagering also is tied to the live thoroughbred racing requirement of 141 days. OTW’s and the account and phone wagering system would be required to shut down if live thoroughbred racing is reduced. Additionally, a reduction in live thoroughbred racing days, as contemplated by the Hanson recommendation, may cause New Jersey horsemen to exercise their rights under federal law to withhold their racing signal from being shown outside the borders of New Jersey. If New Jersey’s thoroughbred horsemen make such as a drastic move as halting their signal from going to other racing states, horsemen from other racing states in the nation may decide to use their federal rights and not send their signal into New Jersey. Such a move by out of state thoroughbred horsemen could potentially shut out New Jersey residents from wagering on signature thoroughbred races including the Kentucky Derby, the Preakness and the Belmont among others. This dynamic is permitted under federal law so that horsemen have a means of protecting the live racing product in their home states.

“No one in thoroughbred industry wants any of this to happen,” said John Forbes. “In fact, we are saddened by the lack of commitment to our long term viability shown by the appointees of the Executive Branch. Hopefully, the Governor will not accept this recommendation by the Hanson Commission as it would be the last nail in a coffin labeled New Jersey thoroughbred racing and breeding.”