Indiana Standardbred Breed Development Advisory Committee Meeting Notes

Date: December 17, 2007

Please note: These are NOT official minutes of the Breed Development meeting.  They are notes developed by our representative attending the meeting.

The Indiana Standardbred Breed Development Advisory Committee met on Monday, December 17, 2007, at the offices of the Indiana Horse Racing Commission (IHRC).  Committee Chairman Michael Christner called the meeting to order a little after 1:00 p.m.

The first item on the agenda was approval of the minutes from the joint meeting of the Indiana Standardbred Advisory Board (ISAB) and Standardbred Breed Development Advisory Committee (BD) held on November 9, 2007.  Dwayne Rhule, ISAB member, noted the minutes needed to be amended to include the election officers for the ISAB in 2008.  The meeting minutes were approved unanimously by the committee, with the information noted to be added.

The next item on the agenda was the 2008 Breed Development Proposal.  Christner explained the main modification from the previous version before the committee related to the Indiana Sires Stakes (ISS) events.  In 2008, the two-year-olds will race 3 Legs for $15,000 each.  The Finals will be $75,000 for two-year-olds and $100,000 for three-year-olds.  These purses will be advertised in the 2008 Indiana Nomination Booklet.  “Other than that, the events would remain pretty much the same,” stated Christner.

Christner then explained that Jessica Barnes, Director of Standardbred Racing – IHRC, had included the budget updates in the proposal currently before the committee.  It contained updated numbers paid for Indiana Sired (IS) and Indiana Bred (IB) Bonuses.  Committee member Don Eash asked if the numbers listed were the final numbers for 2007.  Barnes affirmed they were likely the final numbers, but they were in the process of double-checking the judges’ sheets to make sure no bonuses were missed.

Christner then asked if there were any questions or comments about anything included in the proposal.  He noted this is what will be presented to the IHRC at their next meeting (January 23, 2008).

Jeff Edwards took the opportunity to offer some food for thought to the committee.  He expressed concern over the 2006 decision to eliminate the IS bonus paid to owners for the lower level events at the racetracks.  With the bonus, there was an incentive to have IS horses in a stable.  Without the bonus available, there is no longer this benefit to having IS horses.  In the future, this niche in a stable could be filled with non-IS horses.  Edwards concluded his comments by stating he merely wanted to mention this to the committee to keep in mind for the future.

Christner then asked to have the committee approve the proposal to be submitted to the IHRC.  Noting they had gone through it thoroughly at the last meeting, Eash made a motion to approve the proposal.  It was seconded by Gordon Tabor and passed unanimously.

The committee then moved on to the next item on the agenda, the 2009 Breed Development Proposal.  As a resource in forming this proposal, the committee had asked the tracks for their future thoughts with the coming of slots at the racetracks.

The tracks noted one change for the future would be the concept of eliminating the IS Preferred clause on overnight races as we approach 2009.  Jack Holton asked if there had been any further discussion from the tracks about this change.  With the fact the legislature approved slots for, among other things, the purpose of benefiting Indiana products, Holton said it seems odd this modification would be started when slot money actually begins coming into the state.  Tabor clarified this was what the committee was told by the tracks.  It was not a decision made by the committee.  Christner added this is where BD will have to work to help the IS horses.

Another issue brought up by the tracks was having all Legs of the Indiana Sires Stakes (ISS) and/or Late Closers funded by BD, with nothing from the purse account of the tracks.  Christner explained this means they would become a bigger portion of the BD budget.  Christner then shared a spreadsheet extrapolating a potential budget for 2009 with a few scenarios of potential slots revenue.  He added the figures were based on the information currently available.

Edwards asked if the tracks had given a reason for their decision to move toward not funding the Legs of the events.  Kevin Mack, Director of Racing at Hoosier Park, said the change would allow the track to promote their overnight program and not have to spend as much on the other events.

Edwards then noted the slots bill approved by the Indiana legislature splits slot revenue allocated for purses 50/50 with the tracks and the BD fund.  Moreover, there are no funds specifically earmarked for promotions.  This must come from the monies received in the split.  With this in mind, Edwards said he feels the tracks should ask for input, instead of simply stating they will not fund the Legs.  Essentially, the change moves from paying 50% to 0% of the purses.

Mack then added the decision by Hoosier Park was not final.  However, he said they wanted to move to that scenario.  The track would like to see this in the future, but nothing was certain.

While on the subject of uncertainty, Tabor noted the uncertainty of funds for the future was his reason for being the lone vote against adopting the budget and program being submitted to the IHRC by BD.

Rhule added the legislature is counting on seeing an economic benefit to the state.  He said this is something those making decisions for the future should keep in mind.

Holton then warned the committee of the political danger of doing anything to make it look like there is too much money available in the industry.  Such an appearance could put those funds in jeopardy down the road, as the legislature makes future decisions.

Christner stated the information included in the 2009 budget was merely percentages to be allocated to the various programs in the state.  No true numbers are a part of the budget yet.  The committee is currently only looking at how they want to divvy out the funds that may (or may not) be available.

Christner then said he wanted to mention the two changes included in the 2009 proposal.  First, the Indiana Sired Fair Circuit (ISFC) would become Indiana Sired and Bred (ISB), instead of IS (as it is now).  Second, there would be a requirement for IB similar to the mare residency decided for IS.

Tabor stated he has no problem with the IB mare residency concept.  He and Eash agreed it was likely an oversight in the first place and should have been included earlier.  Tabor did not favor the ISFC idea.

After noticing Christner’s proposed budget indicated changing the portion allocated to promotions from 5% to 3%, Tabor asserted he would not like to see the funds allocated for promotions cut.  He said he feels BD has a duty to promote the industry.  With more funds available, more can be done on this front.

Holton noted the 2009 budget would be finalized a year from now.  As a result, many, many changes could be made throughout the year.  Christner replied by saying not too many changes would be made.  Holton said he disagreed with this statement.

Mack then spoke up to say there could indeed be a big difference in the money available as slots are up and running.  The funds could be more, less, or right in line with the numbers projected.  The total amount of money from slots could change the percentages of the budget dramatically.

While he had the floor, Mack clarified the dropped funding envisioned by the tracks would be only for the Legs of the ISS and Late Closers.  He said he sees no change in the Overnights and/or Mini Series.  In fact, he said he would like to see the purses for the Mini Series Finals bumped up even higher.  He would like them to be more than the current level of 50% more than the Legs.

When considering the 2009 budget, Eash said he believes the ISB bonus money will roll into the ISB races.  This is because there will be more straight ISB races, instead of ISB horses racing in open company.

Attempting to move on with the meeting, Tabor said he had no comments as all, absolutely none, about the 2009 proposal.  With this in mind, he asked to have one of the other committee members make a motion to approve the budget submitted so far and move on with the meeting.  If the motion was made and seconded, it could move on to the IHRC for approval on a 2-1 vote by the committee.

Eash said the proposal serves as a rough draft to use down the road.  Christner added it includes the two changes he mentioned earlier, as well as reverting the promotions funding to 5%.  Finally, a motion to approve the proposal was made by Eash and seconded by Christner.  The motion passed on a 2-1 vote, with Tabor against it.

Moving on with the agenda, the next item was Old Business.  Christner noted no Old Business was pending.

The meeting then moved on to New Business, where Barnes took the floor.  She shared the latest news on a Dan Patch book coming out soon.  Barnes indicated she has talked with Ellen Harvey (Harness Racing Communications) at length about the book.  Harvey envisions this as being the Standardbred equivalent of Sea Biscuit.  As part of promoting the book, Harvey asked Barnes to see about getting the book out to various libraries in the state.  Barnes said she consulted Sarah McNaught and Joe Gorajec (IHRC) to make sure it was allowable under the Indiana law to use BD funds to distribute the book in public libraries.  She said she was told this is allowable in the state.  While the author is promoting the book, one of the stops will be Indianapolis.  This stop should allow a number of opportunities for promoting the book in the state.  Barnes shared a few of the places the book will be getting national coverage.  For example, information about the book will be featured on morning news shows, etc.

To prepare the committee for the future, Barnes said she would eventually be approaching BD with a proposal for promoting the book.  Total cost could be around $10,000 to put the book in all the public libraries in the state.  Barnes stated she will be coming to them with a written proposal as this moves forward.  At this time, everything is very initial.  The book will be coming out in July 2008.

In response to the book information, Tabor stated he thought it was wonderful.  As a part of promoting the book, Tabor suggested using a resource of someone who has been through these types of promotions.  This idea should allow the industry to get the maximum benefit from the book.

As another item of New Business, Barnes noted the 2008 Indiana Standardbred Stallion Directory was finished.  The directories are currently at the mailing house and should be distributed very soon.  A few copies of the publication were available for those attending the meeting to inspect and keep.

With nothing further on the agenda, the meeting was adjourned.