Indiana Standardbred Breed Development Advisory Committee Meeting Notes

Date: June 22, 2007

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

The Indiana Standardbred Breed Development Advisory Committee met on Friday, June 22, 2007, in the conference room at the offices of the Indiana Horse Racing Commission (IHRC).  Jessica Barnes, Director of Standardbred Racing - IHRC, called the meeting to order at 1:00 p.m.

The IHRC Chairman, Sarah McNaught, welcomed those in attendance, noting the turnout for the meeting was larger than expected.  She took the opportunity to welcome the three new members of the committee (Michael Christner, Don Eash, and Gordon Tabor), stating harness racing has been given a great opportunity with the approval of slots.  Lots of positive things can happen in the very near future.  She said, “We have an opportunity to make this the best for the State of Indiana and Harness Racing.

McNaught then distributed an article written by Dean Hoffman in August 2005.  The article contained a listing of things horse racing in general could do to “spice up the sport”.  She extrapolated this information to include the industry as a whole, since we will soon have funding for more projects.  She believes a big goal should be to bring fans back to the sport.  Noting the exact items listed in Hoffman’s article may not be what an individual wants to do, she hopes they will spark some interest to do other things.  McNaught’s optimistic attitude was conveyed in stating, “The cup is half full….”  She told those present that there are big, tough decisions to be made, but we can rejoice in what the legislature has done and move forward in a manor of cooperation.

Joe Gorajec, IHRC Executive Director, then addressed the group.  He stated the future of racing for all breeds is very bright.  The arrival of slots should give the industry a lucrative program with which to work, meaning there is a big job ahead for this group.  Based on the numbers he has considered, Gorajec said we could be looking at a $15 million program annually.  He urged the committee members to look at other states to see what they do, both good and bad.  Gorajec stated, “At the end of the day, Breed Development is responsible for forming the advice to the commission of the way the program should go.”  Further, he told them they do not have to do things just because they have been done before or just because someone else is doing it.  If the group decides they want to try something, he suggested they go ahead and try to make it work.

Gorajec then shared the deadlines decided at the morning IHRC Meeting.  He said Breed Development’s recommendation on the 2008 program must be submitted by October 1, 2007.  With the coming of slots, there is a potential for changes to come.  This is important to keep in mind.
 

By January 1, 2008, Breed Development must submit any structural changes for the program.  These are changes applying to the eligibility in the program.  Gorajec then used the same example he had presented in the previous meeting, a mare-based requirement.  He explained that, with the amount of money possible, Indiana should attract interest from not only in-state people, but also those out-of-state.  Gorajec stated, “Our program has served us very well at the $3.5 million range, but at the $15 million level we want more commitment to our state in the form of economic activity.”  He went on to remind those present that we have sold the General Assembly on the economic impact of racing.  Thus, we need to put together a program enhancing the economic impact on the state.  As a result, he suggests looking into a residency requirement for offspring.  Such recommendations are due at the end of the year.  The IHRC will take up the issues in 2008 and they would be effective for the 2009 Breeding Season.

Gorajec then briefly mentioned the slots revenue.  He had hoped to have the projections for revenue available at this meeting.  However, those are from the tracks.  One of the tracks has yet to decide if a temporary facility will be used or their efforts will be focused on the permanent structure to be built.  The opening time of the slots facility will make a big impact on the amount of money available.  Gorajec hopes to have those figures within a couple of weeks.  Once available, those numbers will be available to share with the industry.

Offering suggestions to the new committee, Gorajec noted there is no one better than Jessica Barnes for advice and counsel on the Indiana racing program.  He told them to use her expertise.  In addition, he said the outgoing members of Breed Development are an excellent resource.  They will be able to share the pros and cons of many of the issues the new committee may be considering.  Gorajec said, “They won’t tell you how to do your job, but will be there for advice and guidance.”  Outgoing member Ernie Gaskin confirmed Gorajec’s suggestion of their willingness to be available for consultation.

Chairman McNaught and Gorajec excused themselves from the meeting, stating the group had a lot of work to do in the afternoon.  The meeting then progressed to the other items on the agenda.

Approval of the last meeting’s minutes was the next item on the agenda.  Gaskin, who was at the meeting, attested that the minutes were correct.  Newly appointed member Don Eash was also at the meeting.  He concurred with Gaskin’s comments.  Based on this input, a motion was made to approve the minutes, which passed unanimously.

The committee was then scheduled to decide who would serve as their Chairman.  This position is decided among the group.  The decision was made to talk among each other and make a final decision about the Chairman at the next meeting.

The next item on the agenda was expenditures to date.  This included several separate documents for review.

First, Barnes presented a summary sheet derived from the budget submitted to the IHRC.  A lot of activity listed has not taken place yet, as it hinges on the Indiana Sires Stakes (ISS) finals.  The finals will take place at Hoosier Park on June 30.  In addition, there are still late closers and finals left at Indiana Downs.  Barnes explained the breakdown of the report, indicating the source of any figures included.  She emphasized the fact the numbers were all listed as to date.  Offering a status to the committee, she stated, “We are doing well with respect to not having too many non-betting races.”  Those are paid 100% from Breed Development funds.  ISS supplements were also listed on the report.  Barnes explained these supplements were used for situations like when a purse is increased due to a large field.  The promotions listed include those where Breed Development partners with the racetracks.  Hoosier Park will be doing their promotion on June 30, while Indiana Downs will break it up for a couple big nights of racing.  The promotions number also includes the cost of the nomination book, calendar, and fair book, as well as advertising the Indiana program.

While on the subject of promotions, Barnes told those present at the meeting about a great opportunity presented to our industry.  A new Circle K gas station is being built at I-74 and Post Road (between Indianapolis and Shelbyville).  Although not common, a few gas stations have been decorated with memorabilia for specific events.  For example, one near Speedway, Indiana, bears items tied to the Indy 500.  The new facility will utilize a horse racing theme.  Barnes was contacted to get items and pictures to promote the industry to the public.  Some items included will be a tack trunk, harness, and race bike, all to be displayed.

A spreadsheet explaining the projected purses for the ISS finals was also distributed.  It shows the breakdown of the monies going into the purses.  Barnes explained the formula incorporates the number of nominations and one half of the entry fees (the other half was used in the legs).  She also highlighted an increase in the purse for the Aged Sires Stakes finals.  With the new format of no legs, but instead only an elimination (if necessary) and a final, there has been an increase of around $30,000.  Last year, these events raced for $63,000.  On the other hand, they will go for $94,500 in 2007.  It was also noted that Breed Development has agreed to pay all starters in the finals, including those finishing 6th through 10th.  These funds will be in addition to the actual race purse.  The first finals will be held at Hoosier Park on June 30.

An interesting analysis was presented in a summary of the Breed Development programs for 2006.  This was a breakdown of the 2006 purses at the tracks.  The listing showed the total amount, as well as the monies paid from Breed Development.  Moreover, the ISS program accounted for 21.8% of the purse money paid in 2006.  Indiana Sired Overnights (4.3%), Mini Series (3.1%), Genesis Series (2.3%), and Indiana Sired Late Closers (2.6%) were also included on the listing, for a total of 34.1% of the total monies won at the tracks.  Noting very few overnight races end up being IS only, committee member Don Eash pointed out these numbers would be even higher if the money won by IS horses in IS preferred races was included.

Barnes then presented an update on the ISFC Program.  Her documentation included three spreadsheets to review.  The first was a summary of the 2007 Indiana Fairs.  The other two spreadsheets contained a breakdown of the events at the concluded Shelbyville and Converse races.  Since not all fairs will have the same number of divisions, Barnes explained the fairs are issued funds for their races based on the prior year’s expenses. 

Returning to the agenda, Barnes informed the committee she had received a request for assistance from the Indiana Standardbred Association (ISA).  Last year, the ISA had paid for a luncheon for the participants in the ISS finals.  However, this year, the group does not have the funds available for the projects.  Facing this financial dilemma, they have approached Breed Development for assistance.  The track kitchen will be contacted for an estimate, but last year the cost was about $1,000.  The committee voted unanimously to contribute the funds to make this possible.

The next item to consider was Breed Development Timelines.  Given the IHRC had decided the deadlines mentioned earlier, Barnes recommended the committee set deadlines for getting industry input for the existing programs, as well those for the future.  Gaskin suggested using surveys to poll the breeders, etc. to get their input on things like the mare issue presented, etc.

Jack Holton also asked if it is possible to adjust purses throughout the year.  Barnes stated the best way to prepare for that is to list purses as “Estimated”, giving them the potential to go up.  She noted it is hard to go down, but an increase is certainly not out of the question.  Committee member Gordon Tabor said the committee will be working from the numbers provided by the tracks to develop the budget.  As long as their figures are relatively accurate, it should be possible to come up with a viable program.  The money Breed Development has in reserve can be used as padding in case the projections are not exactly what becomes a reality.

Tabor also added he would like to consult those involved in other programs facing a similar situation to that of Indiana today.  He recommended using a timeline consistent with the structural side, as to what is possible.  His idea includes contacting the consultants, arriving at an organized plan, and getting them to address the committee at a future meeting.  Tabor noted, “Just because we are getting a lot of money does not mean we will have a successful program.  It is what we do with it.”  Several possible contacts were mentioned, including some from the highly successful program in Ontario.  “We also want to see what has failed and not make the same mistakes,” added Tabor.

After some more discussion, a deadline of September 15 was set for gathering industry input and thoughts for the future.  Barnes will be in charge of drafting a press release to announce this to the industry.  The group stressed the main input should come from Indiana people.  Out-of-state opinions are welcome; however, they are really seeking input from those in the state.

Mike Bowen asked if it would be possible to have members of Breed Development go out in the state and get input from Breeders.  Committee member Michael Christner stated he was not opposed to utilizing the strategy to get input.  Eash suggested setting up a few meetings throughout the state to be used as hubs to gather information.

Under the topic of New Business, Barnes referenced documents from both Nat Hill IV and Dr. James Bennett.  These individuals had already taken the time to put some thoughts into writing and submit them to the committee.  Their input will be considered in future committee decisions.

With nothing further on the agenda, the meeting was adjourned.  The next meeting will be held on Friday, July 20 at Indiana Downs.