The Breeders' Cup Exec Committee and the NTRA Board of
Dirs unanimously approved a strategic alliance in principle,
including combining certain administrative and marketing
functions. Execs from both entities will define details of
the proposed partnership over the next six to eight weeks
and then report back to both boards. NTRA Commissioner Tim
Smith and Breeders' Cup President D.G. Van Clief said that
initially the two organizations would pursue the combination
of finance, administrative and some communication functions
in Lexington, KY, where both are based. But each entity
will retain its legal independence, separate boards and
individual rights and assets. The NTRA would retain a N.Y.
office for marketing and media, which would be used to
assist the Breeders' Cup in those areas. The Breeders' Cup
would assist the NTRA in finance, accounting and other
administrative areas in Lexington (NTRA). The DAILY RACING
FORM's Matt Hegarty reported that under the proposed
agreement, the Breeders' Cup and NTRA will "develop a joint
budget on their marketing projects, with costs and revenues
allocated separately at the end of the year." Van Clief, on
the alliance: "It's a no-brainer. ... In a couple of years,
we're going to want to look at our alliance ... and at that
point I think we'd be obligated to look at a merger. But
that is down the road" (DRF, 12/12). In Boston, Ed Gray
reported that the alliance "could reduce" the NTRA's
"overhead by more than" $1M a year (BOSTON HERALD, 12/12).
NEW ADS: The NTRA also presented three "video mock-ups"
of its new ad campaign to industry officials. The videos'
sound track "contained only popular music," such as the
songs, "I Only Have Eyes For You" and "Shout." Marty Orzio,
Exec Creative Dir for NY-based Merkley Newman Harty, the
NTRA's ad agency: "Instead of using the celebrity, we
decided to focus on the fan experience and make the music a
celebrity." The campaign will consist of five spots which
will be "ready for use in March" (DAILY RACING FORM, 12/12).
