The NTRA "came apart at the seams" on Friday, as 22
racetracks "announced their intentions to quit the national
organization," according to Andrew Beyer of the WASHINGTON
POST, who wrote the "major source of contention between the
NTRA and the dissidents has been" the TVG. While the NTRA
was "supposed to promote" Thoroughbred racing and "thus
benefit every racetrack, from the largest to the humblest,"
it instead has "sought to build its own power and become a
player within the industry," and has "forged alliances and
launched its own bet-taking operation." The defecting tracks
said in a statement the NTRA "has pursued policies ...
directly inimical to the business interest of many of its
members." The NTRA responded, "We will explore all potential
avenues for reasonable compromise." Beyer wrote that the TVG
signed exclusive deals with many "major tracks, and mid-level
tracks felt shut out." Additionally, the NTRA-TVG alliance
"evidently peeved" Frank Stronach, whose Magna Entertainment
owns seven tracks, all of which pulled out of the NTRA.
Beyer: "The fact is that the NTRA has not been successful in
achieving its main goals. ... Public interest in thoroughbred
racing has not been noticeably boosted. Its venture with TVG
has barely gotten off the launching pad; its phone-betting
operation is generating minimal revenue while TVG loses
millions" (WASHINGTON POST, 10/28). The DAILY RACING FORM's
Matt Hegarty wrote that the "withdrawal poses the biggest
threat yet" to the NTRA, but added, "It is possible that the
dissatisfied tracks are taking a calculated risk to wrest
concessions from the NTRA in the next two weeks." By
dropping out of the organization, the tracks will "no longer
be able to use NTRA-generated" ad materials or participate in
the NTRA's group purchasing programs. Meanwhile, one exec at
a mid-Atlantic track said that "many tracks would rejoin
[today] if the NTRA-TVG partnership were dissolved" (DRF,
10/29). In Baltimore, Tom Keyser called the defections a
"staggering blow" to the NTRA. MD Jockey Club President &
CEO Joe DeFrancis, whose Pimlico and Laurel Park were among
the defectors: "It's pretty hard to hold yourself out as a
national organization when you lose tracks representing about
50 percent of the national handle" (Baltimore SUN, 10/28).
WHAT IT MEANS: In CA, Larry Bortstein noted that the
number of NTRA member tracks dropped from 78 to 56. Most of
the remaining tracks are "small to mid-sized facilities in
the mid-Atlantic region" (O.C. REGISTER, 10/28). In L.A.,
Bill Christine wrote that NTRA dues "were to have been paid
by" November 10. While Stronach's tracks "alone account for
more than" $1M in dues, the estimated "overall loss" to the
NTRA from the defections will "exceed" $2M. But "still
firmly supporting" the organization is the "powerful
Churchill Downs group" (L.A. TIMES, 10/28).
HOLDING THEM HOSTAGE? The DAILY RACING FORM's Steven
Crist wrote that "one of the last-ditch attempts by the
NTRA's proponents to keep" Stronach's tracks from defecting
was the "threat that non-NTRA tracks will not be permitted to
host" future Breeders' Cups. As Magna's Santa Anita was
slated to host the 2002 Breeders' Cup, "this reportedly gave
Stronach some last-minute pause." Crist noted that despite
the recent NTRA-Breeders' Cup merger, the Breeders' Cup was
"supposed to maintain its independence in conducting its
races" (DAILY RACING FORM, 10/29).
NEW TV PARTNER FOR NTRA? The SPORTSBUSINESS JOURNAL's
Liz Mullen cites an NTRA source as saying that the "chance of
continuing" the TV series for older horses on Fox are "slim."
Should the series move, it will "probably" go to CBS. Fox
said that it "didn't have as much time" for the series since
signing its new MLB TV deal (SPORTSBUSINESS JOURNAL, 10/30).
