Quick Update

- Here is a story about Anna "Rosie" Napravnik and her plan to get back to the top of her game.

- Today is the Grade I DeFrancis Dash at Laurel Park. Click here to read the story and see the lines.

- Three more stakes on the Laurel card for today.

- Dunkelberger one shy of 3000. (I love watching this guy ride! I wish he spent more time in Maryland)

MJC cuts stakes and more

Don't have time for a full post, but check out this story by John Scheinman.

Magna Selling Laurel Park ???

According to this article, Laurel Park could be sold as part of the debt reduction plan for Magna Entertainment. It is odd that this information would be released today, considering that yesterday they proposed slot machines at that facility (per the referendum on the 2008 ballot). Maybe they know something the rest of the public does not?????

Here we go!

I have not posted much about the Maryland Legislative Special Session in the last few days. Everything changed by the moment, and I was unsure how any of it was going to effect horse racing. Well, the session has come to an end, and the people will get a chance to vote if they want slot machines in Maryland. Unfortunately, that vote will not come until November of 2008. Even then, if it passes, how long will it take to get this undisclosed amount of money added to the purses at local tracks.

Today the Baltimore Sun had a good article with quotes from a number of people in the local horse racing industry.

Richard Hoffberger, president of the Maryland Thoroughbred Horsemen's Association, said not too many horsemen are thrilled with a referendum that puts the issue more years down the road. "Am I happy?" he said. "It's a mixed emotion. It's like me telling you I just bought you a new car. I know you're 100 miles from home and that you have to cross the Sahara Desert and your air conditioner isn't working. But if you get here, you can have the new, fast car with the fine air conditioning in two years. "The question is how do you get to where you want to get? It's a real mixed emotion. We don't know if the referendum will pass or if the car will break down on the way across the desert."

Horse breeder Mike Pons, who was at Philadelphia Park yesterday where he was running one of his horses "because the money is so much better," said he is relieved that the decision about slots "has finally gotten in front of the people." But he is concerned about the vote."We're all scared it won't pass," he said. "And if it doesn't, what then?

The real winners in this battle are the media and marketing firms . Over the next twelve months, the citizens of Maryland will be bombarded with mailings, TV commercials, and nonsense. Everyone trying to push the vote in their favor. Who will be spending the most money, I would say Delaware Park, Charles Town Races and Slots, and Philly Park. If they can convince the people of Maryland to vote down the slots, they would squash the competition. I think my next project will be to start collecting and posting propaganda from both sides!

Calling out the Judge

The Thursday edition of Newsday, the predominant Long Island newspaper, included the following letter to the editor:

Turn Belmont Park into new courthouse facilities

For years, we have been trying to fix Nassau County Family Court, which has been inadequate since the 1970s, and to refurbish Nassau County Court (a great example of WPA architecture). That courthouse needs to be gutted and completely redone from top to bottom if we want to preserve it, and we would have to find backup facilities for both while these projects took place.

There would be a strain on parking for the litigants, court personnel, jurors and the like. Garden City doesn't want a family court in the village. The county does not have the funds to undertake the projects. The county would like to restore the land on both sites to the tax rolls.

In the meantime, the community of Elmont is occupied by an outside force that is not part of the community, underused during the day and vacant at night. That force is delinquent, according to Newsday, on taxes and has been accused in the past of criminal activity. I speak, of course, of the New York Racing Association and its 400-acre site in Nassau called Belmont Park.

The NYRA franchise is up for renewal. It is in debt to Nassau County for back taxes, and racing as a sport is being overwhelmed by competitive gambling from OTB, casinos, lotteries and lack of interest.

My proposal is to take over the land at Belmont, deed the land to a private builder in exchange for the construction of a state-of-the-art court facility, leasing the facility back to the county for $100 per year for the next 60 years. In return, the developer would receive use of the remaining land for commercial and residential use with tax incentives.

The location has excellent public transportation; the county jail is close; there is ample room for parking for all who need it. Elmont would have many new corporate citizens.

Yes, the Belmont Stakes would be run at Aqueduct, but the Hambletonian Trotting Race is no longer run in New York. The Polo Grounds, along with Ebbets Field and Shea Stadium, have been demolished or removed, and the House that Ruth Built is becoming a playground.

Surely this idea is worth some public discussion.

John L. Kase

Editor's note: The writer is a Nassau County Court judge.

Mineola

Now that you have read the fiction, here are some facts:
- The point that Garden City doesn't want the Family Court and that Nassau County would like to add the old court facilities to the tax rolls has nothing to do with what is best for New York racing, or New York State in general.

- The ownership of the Belmont property is a major question between the State and NYRA. It has never come up that Nassau County has any claim to the land. How then, could the County confiscate the land for a court?

- Belmont is vacant at night? Well, mostly, except for the 1,000+ horses that are there generating revenue for Nassau County residents that make a living training, grooming and riding them.

- The Belmont Stakes should be run at Aqueduct? With all do respect your honor, your ignorance shows that you should keep your opinion on this subject to yourself. It's not the same thing as playing a baseball game at another stadium.

So, Judge Kase, I have a counter offer. Let's convert those horrible old court houses to OTB facilities (run by NYRA in my model). You may be unhappy with your digs and seek to take mine. I then, think it's fair to propose taking yours.

As you said, "Surely this idea is worth some public discussion."

Maryland slots - changing every day!

I have not written about the Maryland Special Session of the General Assembly for a while now, reason being........It changes by the moment. Every two hours we hear a different report about locations, operators, take out, and more. Here is the most current info. Read it quick, because it will change!

The Stallion Prospects were Bargains!

Much has been spoken about the Sheiks of Dubai and their major investments in horse flesh this year. Street Sense, Hard Spun, Any Given Saturday, Authorized, et al. Our exasperation is predicated on our own concepts of money as a limited resource. For these gentlemen, who don't exactly worry about how they are going to make next month's rent, the number of zeros in a price tag is less startling.

For instance, an Airbus A380 costs more than $300 million. Well, Emirates Airlines, owned by the Maktoum family, purchased 11 of them yesterday. They also ordered 70 Airbus A350s costing about $160 million each , and 12 Boeing 777s costing $250 million each. Total value of the orders - more than $38 BILLION DOLLARS!


I know that this is a corporation making long-term capital investment, but it is not hard to pierce the corporate veil when it comes to the Dubai ruling family. Their personal wealth is tied directly to the wealth of the nation and it often seems that the bank accounts are commingled.

In this persective, a few hundred million in breeding stock doesn't seem too bizarre to me. I guess we should expect all of the Emirates advertising to continue as the boys try to fill the seats on those sweet new jets.

Horsepower

Kia announced today that their new SUV will be named Borrego.

Perhaps "Street Sense" would have been a more appropriate name for a truck, but hey, Borrego was a pretty good colt too.

Likewise, Shelby announced the new Terlingua edition of the Ford Mustang.
Isn't that sweet that they want to acknowledge Storm Cat's mom?

6000 wins for Mario Pino

Congratulations to Maryland's own Mario Pino on his 6,000 victory yesterday at Laurel Park. Pino had been trying for a week to wrap up the final two victories necessary to become the 15th jockey in North American history to win 6,000 races. The moment was extra special because he was riding a horse trained by his brother Michael.

(photo by Baltimore Sun photographer Kenneth K. Lam)

No More Beer!

The latest hit to Maryland racing has nothing to do with purse money or slots. The fine folks at the Maryland Jockey Club have announced that they will no longer allow patrons to bring beer into the grandstands for the Preakness Stakes.

"Fans at next year's Preakness will not be allowed to bring alcohol bought outside the track into the grandstand and clubhouse areas of Pimlico Race Course, ending a long-standing tradition."

I think this may have a greater impact than one may think. If you have ever gone to the Preakness, you would know that about half of the grandstand patrons bring beer, lots of beer! If these people are forced to purchase alcohol inside a $5 a pop, they will be taking away from the one one thing that matters most, HANDLE. If all 10,000 grandstand patrons buy 1 beer at $5, for a total of $50,000, that is $50,000 less they have to bet. OK, this is peanuts in the whole scheme of the total handle, but I did not have much else to post about today. My idea.......Not less beer, MORE Beer, and give it to the right people!

Fasig-Tipton November Auction

The Fasig-Tipton 2007 Selected Fall Mixed Sale is happening today in Lexington. It looks like Sheik Mohammed is picking up a few quality mares for his new stallions. The following sales jumped out at me upon a quick review of the sales results:

- Round Pond sold for $5,750,000 to Sheik Mohammed

- Octave sold for $4,000,000 to Sheik Mohammed

- Asi Siempre sold for $3,000,000 to Sheik Mohammed

- Indy Five Hundred, in foal to Kingmambo sold for $3,000,000 to Sheik Mohammed.

- Dream Rush sold for $3,300,000.

- Magnolia Jackson ($325,000 and Leah's Secret ($525,000) sold to Winstar Farm

- Breeder's Cup winner Maryfield sold for $1,250,000.

- Pussycat Doll sold to Lael Stables for $2,300,000.

- Super Freaky sold for $950,000 to Castleton Lyons

- Valbenny sold for $1,200,000 to Lael Stables

- Appealing Zophie sold for $1,100,000

- Irish Smoke sold for $750,000 to IEAH Stable

- Cash Included sold for $650,000

- Cotton Blossom sold for $1,900,000

Rally in Annapolis

The sign on the left says it all! That is why the horse industry is shutting down today to rally outside the state house, here in Maryland. In 1984 the "Baltimore Colts" packed up the Mayflower moving vans by cover of dark and moved to Indianapolis. If things don't improve for the industry and the tracks, the second jewel of the triple crown, the Preakness Stakes will also be forced to move. So will the breeding and training operations.

According to todays Baltimore Sun article, you can forget everything I have posted about slots this week, as it has changed every day during this special session. The numbers keep changing, and the odds of us seeing slot machines soon would be 5-1 (my opinion). The one new twist I heard from yesterdays debating was that $40 million of the annual slot proceeds would need to go into track renovations. If this is worded properly (ie. grandstands, track, turf, stalls, etc.) this could be the life raft that Pimlico needs.

We should get some great quotes from todays rally in Annapolis. As always, stay tuned!

Todays Sound Bites (on slots in Maryland)

Todays Baltimore Sun reports that the States share of slot machine profits will be 70%. One analyst says the profit margin will be so tight that gambling interests will shy away. On the other hand, another says this is among the most public-friendly gambling proposals around. Here are a bunch of quotes from the article

Maryland slot machine operators will pay one of the nation's highest casino tax rates - effectively 70 percent - if voters approve Gov. Martin O'Malley's plan to legalize the devices, and some industry analysts say that would mean low-end facilities catering mostly to the local population.

"It's going to limit how much you can give away to customers because the margin is so thin, and it will limit how much you can invest in the enterprise," said Lawrence Klatzkin, a gambling industry analyst and managing director of Jefferies Equity Research.

The margin is so tight, Klatzkin said, that Maryland would end up with "a lower-cost product with much more limited offerings" than slots casinos in surrounding states provide to their patrons.

"It doesn't mean that they won't make money," Klatzkin said, "but some of the richer, higher-quality customers will likely go to Dover, Del., or to West Virginia for more comps and giveaways and much better amenities."

Other analysts said the high tax rate is appropriate given how lucrative a slots license can be.

"This is by far the most innovative and taxpayer-friendly proposal set forth in the 50 states," said Jeffery C. Hooke, a Chevy Chase investment banker who studies the gambling industry nationally.

Hooke, who has criticized previous slots proposals in Maryland as a giveaway to racetrack owners, said the O'Malley administration "did a good job of addressing the enrichment problems that have bedeviled other states."

More than half of that revenue, $767 million, would go into an education trust fund. Operators of the slots casinos would get $451 million, and the horseracing industry would get $128 million a year to increase purses ($128 million, WOW)

It looks like the DeFrancis' are the biggest winners.
DeFrancis and minority owners of the Maryland Jockey Club sold their stake in Laurel Park and Pimlico Race Course and other racing enterprises to Toronto-based Magna Entertainment Corp. in September. They stand to collect 65 percent of the net profits from slots, after expenses, during the first five years, however, then 50 percent for the next five years and 40 percent in the next decade, according to Securities and Exchange Commission filings.