Please Close Delaware Park

[Cannon Shell]

Thoroughbred Horsemen’s Group, LLC

1. Purpose of the Company
Several Thoroughbred horsemen’s organizations, working together since early 2005 to address common and industry-wide simulcasting issues (the “Horsemen’s Study Group”), elected to form the Thoroughbred Horsemen’s Group, LLC (“THG”), on November 2, 2007, in accord with the recommendation of legal counsel, for the following purpose:

The purpose of the Company shall be to improve and promote the competitive position of thoroughbred horse racing in the sports industry by collaborative development and administration of new, more efficient and centralized mechanisms through which thoroughbred horsemen’s organizations may facilitate agreements with TrackNet Media Group, LLC, and other entities operating multiple thoroughbred venues with respect to horsemen’s rights approvals under federal law, wagering security, accounting and settlement services and other simulcasting matters.
[Operating Agreement of the Thoroughbred Horsemen’s Group, LLC; Article II.2.01]

On December 6, 2007, enrolling horsemen’s organizations ratified their Membership at the Company’s first formal meeting; elected officers (President, Bob Reeves, Ohio HBPA; Secretary/General Counsel, Frank Petramalo, Virginia HBPA; Treasurer, Joe Santanna, Pennsylvania HBPA) and a Company manager (Wilson Shirley); and initiated a program to implement a new advance deposit wagering (ADW) model incorporating enhanced purse retention and non-exclusive wagering. These initial Member horsemen’s organizations are:

Delaware THA, Florida HBPA, Kentucky HBPA, Louisiana HBPA, Ohio HBPA, Pennsylvania HBPA, Texas Horsemen’s Partnership, and Virginia HBPA.

Since that time, ten more horsemen’s organizations have become THG members (see attached list), and TOC president Drew Couto was elected a vice-president of the Company.

2. Benefits of the Company

(a) The Company proposes to implement a simulcast revenue distribution model ensuring that a fair share of revenue from all simulcast wagering on Thoroughbred races is allocated to Thoroughbred purse accounts. Under this model, a portion of the revenue from wagers placed at non-Thoroughbred betting agencies (harness tracks, dog tracks, casinos, etc.) will be distributed to Thoroughbred purse accounts in the jurisdiction of the betting agency: the Company will negotiate and collect from the betting agencies an additional amount (over and above the Host Fee they pay to the track), and will distribute that amount at the direction of the Member horsemen’s organizations to purses at the Host Track and at the Thoroughbred track(s) in the jurisdiction where the bet was placed, as in the case of a wager accepted by an ADW company.


(b) The Company will aggregate “content” for simulcast authorization purposes, enabling all Member horsemen’s organizations – including those not covered by the Interstate Horseracing Act – to be party to the simulcast distribution model implemented by the Company.

(c) The Company will collect and disseminate simulcast wagering information, including handle, revenue, fees, etc., for all Members, and will facilitate simulcast wagering proposals for Members.

(d) The Company will be the location of resources to be shared by its Members for the benefit of its Members. The Company will undertake research on issues pertaining to the industry and make recommendations to its Members as to the best course of action for its Members.

(e) The Company will be self supporting. In its role as broker for its Members, a percentage of revenue collected will be directed to the Company to cover its operating expenses.

[blackthroatedwind]

Chuck, if you could add some color coding I think it might help.

[Cannon Shell]

Originally Posted by blackthroatedwind

Chuck, if you could add some color coding I think it might help.

What about some color commentary?

[blackthroatedwind]

Originally Posted by Cannon Shell

What about some color commentary?

That would require reading it......which would result in my head exploding.....and there's nobody here to clean up the mess.