The Canadian Sportsman
March 17, 2010
The idea of purse pooling appears to be gaining some traction in Ontario as the industry looks to restructure for its survival.
While the slots-at-racetracks program has been wildly successful for all partners — particularly the provincial government — one minor criticism is that it created disproportionately high purses at the lower end of the racing spectrum.
So, why not take the 10 per cent cut allocated to purses from all slot machine revenue at racetracks in the province, pool it and then redistribute it, giving more to bigger outfits such as the Woodbine Entertainment Group (WEG) and less to the smallest tracks whose purse structure is too high relative to the quality of racing?
The theory goes that such distribution would create a tiered system modeled on hockey’s junior program. Woodstock Raceway, for example, would be the equivalent of a Junior C hockey franchise, while the two WEG tracks in the Toronto area would be harness racing’s NHL.
“I’m a big supporter of purse pooling,” said Hugh Mitchell, the chief executive officer of the Western Fair Association in London which operates a medium-sized, likely, Junior A level, racetrack. “I think this business requires a premium racing product that can be sold worldwide, that everybody aspires to work at... From that, I think you need some element of the minor leagues and the grassroots product to develop people and horses to be able to go and work and perform at that higher level. So, an incubator system. There’s a place for two or three tiers of racing in the province to the industry’s advantage.”
By increasing purses at WEG, Mitchell believes it would further stoke the dreams that fuel the entire industry — from the breeder to the person buying and training horses. “I truly do, because people buy that yearling aspiring to win the North America Cup. You can never lose sight of that dream,” he said. “It works with racetrack executives. If we lose the opportunity for a race secretary starting in rural Ontario at a track and he loses that dream to go to work at Woodbine, then I think we’ll be less of an industry, because that motivating factor to develop a career and aspire to be part of the best should be there for us to sustain ourselves.”
Prior to the dawn of the slots-at-racetracks era, there was a natural tiered system because purses were directly tied to betting on horse racing at each track. The bigger tracks in bigger cities took in more betting handle and, thus, their purses for races were higher.
When slot machines arrived a decade ago, each track kept what it took in at the horse racing windows and the 10 per cent cut of revenue from the onsite slot hall. Since slot machines are a more popular gambling product, where betting continually flows, purses shot up at all Ontario tracks.
Woodstock, for example, only races 27 times a year, but its small, 100-machine slot parlour is open year-round. The 10 per cent cut of revenue that goes to purses grows all winter and then is spread out over a relatively-small number of summer race dates.
Woodstock’s total 2009 purse structure of just over $3 million produced a per-card average of $114,000 and yet the average handle, per card, was just 10 per cent of that — $10,469.
That imbalance is glaring, which has led to the growing popularity of purse pooling.
Though as Grand River Raceway’s general manager Dr. Ted Clarke points out, sending some of Woodstock’s tiny purse structure to Toronto would be insignificant. “In reality, when you think about the Woodstock example, it’s about two nights’ purses at Woodbine,” he said. “Using Woodstock as the lightning rod is a ridiculous model to talk about.”
Yet, healthy purses at all tracks has, effectively, cut out the smaller guy.
For example, while Woodbine is the gold standard, the competition is tough. Some horsepeople prefer to race at Georgian Downs where the purses are strong, but the competition for those dollars is much less.
That’s why Ian Fleming, the director of racing at tiny Clinton Raceway said he supports purse pooling even though Clinton would see some of its purses sent to Toronto.
“If they raced for less purses in Clinton, the people stabled in Clinton would make more money,” Fleming said.
Clarke said he’s more than willing to discuss any idea that might improve an industry in decline, but sending purses to Toronto should not be a one-way street.
Clarke said perhaps any purse pooling agreement could include greater access to the lucrative Toronto market for simulcast signals from smaller Ontario tracks or perhaps see money come to smaller tracks to make capital improvements.
It would be up to the Ontario Racing Commission to implement any purse pooling plan.
“I think the discussion is certainly on the table but is a long way from having a form that is the final model,” Clarke said. “My position is that if there is a decision that moves purse money from the area where it’s earned and created to a marketplace that is distant from the originating spot, there needs to be consideration given that provides benefit at both ends of that exchange.
“I’m sure that with some thought there could be something other than just a one way movement of money to satisfy a need at one end of that spectrum. It doesn’t work to rob Peter to pay Paul. Considering the number of parties who stand to be part of that circumstance, then surely consideration must need to be given to all parties and a satisfactory solution arrived at that benefits all... I think anything that people put on the table is probably worth at least taking a good look at. But, we need to understand what the long-term goal of our actions would be. My view is that our long-term goal needs to be that of penetrating into the market in a more effective way than we have.”
Mitchell, meanwhile, is convinced purse pooling should be part of the solution to an industry on the wane.
“When I step out of Western Fair and look at this business from 60,000 feet, I am convinced beyond a shadow of the doubt that the approach to different tiers of racing and having an elite, premier racing product that’s the best in North America with the highest purses and quality racing, that’s compelling to me and a very important part of our future,” Mitchell said.
“It will be problematic for Woodbine to get ahead of the curve on this, because they’ll be seen to be self-interested. Even I have been criticized for that view because of my affiliation and time spent (working) at Woodbine, but, to me, I just ask anybody to tell me why it’s illogical. Just argue the heck out of it. I can understand why you want to protect your own interests, but look at it from the racing industry’s total perspective.”
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March 11, 2010
The latest installment from my weekly Guelph Mercury column…
It was a journey 18 years and just 12 races in the making.
As long as Scott Young can remember, he has wanted to be a harness racing driver. Saturday, the 18-year-old Guelph teenager recorded his first driving win just 12 starts into his career when he steered Wincredulous to a 21-1 upset victory at Georgian Downs near Barrie.
Young, the son of veteran trainer Bob Young, drove Wincredulous to victory for Phillippe Leclerc.
Scott made his pari-mutuel debut in the sulky on Feb. 12 at Flamboro Downs near Hamilton. But he’s been preparing for this moment all his life.
Click on the words “Guelph Mercury” to read the article in its entirety.
March 04, 2010
Just a few hours after Canada defeated the United States in the gold medal hockey game at the Olympics, Canadians scored a couple of major victories in harness racing in the United States.
At a banquet Sunday at Yonkers Raceway in New York City honouring the best in U.S. harness racing for 2009, Canadians had a share in the three biggest awards.
All-world colt Muscle Hill, trained by Sydney Mines, NS. native Greg Peck, was the no-surprise winner of both the trotter of the year and the overall horse of the year awards after a perfect season.
Meanwhile, the pacer of the year award went to Well Said, a colt owned, in part by Sue Grange of Cheltenham, ON.
Well Said won Canada’s richest race, the $1.5 million Pepsi North America Cup, in June of 2009. It was the third time Grange’s family had won the NA Cup in partnership with Jeffrey Snyder of New York City.
Snyder, who rates his yearling prospects on conformation on a scale from one to 10, said Well Said scored a nine, the highest of any yearling he ever graded.
“He’s about as good-looking a yearling as I’ve seen, and I think many people will agree that he was about the best-looking yearling they’ve seen in many years,” Snyder said. “None of them have gotten a 10. I think the highest rating that we’ve given is a nine for anything. No 10s, because nothing is absolutely perfect. But, if they get a nine, that’s great.”
Click on the words “Guelph Mercury” to read the article in its entirety.
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