BackTrack: A Look at Racing Symposium From 20 Years Ago

The University of Arizona Symposium on Racing is rooted in the exchange of ideas and opinions in a public setting. Isn't it funny, then, that the talk in the halls of Loews Ventana Canyon Resort in Tucson was about the candidness of Philadelphia Park president Bob Green, who spoke during a panel discussion on mergers and acquisitions in the pari-mutuel industry?



Green, with his wry British humor, was a hit, and the irony of it all is his Pennsylvania racetrack is home to the PhoneBet account wagering service and The Racing Network, both of which draw raised eyebrows from the powers that be in the Thoroughbred industry. So what does it mean when a renegade, as Green has been called, steals the show? Perhaps the answer is the industry of whispers has a long way to go in terms of open and frank dialogue. 



Not that the 26th meeting of pari-mutuel industry leaders was otherwise quiet or uneventful. On Dec. 10, the final day of the symposium, the National Thoroughbred Racing Association offered a sneak peek at its third television advertising campaign, and outlined a rather impressive agenda for the first several years of the 21st century. Among the other panel discussions, Dr. Greg Ferraro, of the University of California Davis, led a lively exchange on implementation of health and safety measures on the backstretch and the racetrack. 



But it was Green who set the tone during the opening session of the symposium Dec. 8. He said he made his first acquisition—a newspaper route in London—at the age of 14, and continued to expand it and improve customer service. "I didn't have anybody looking over my shoulder telling me how to run my business," he said pointedly as if in reference to the present, not the past. 



Green went on to orchestrate a $700-million deal in British bookmaking circles, and then came to the United States, where his Greenwood Racing purchased Philadelphia Park in 1990.



"Everybody in the industry thought we were mad, and they were probably right," Green said. "We paid $75 million for a track that was losing money."

The value in the purchase was a small telephone account betting service, and a market ripe for off-track betting. "My simple rule is an acquisition has to give you added value," he said. "At the end of the day, there has to be a clear, identifiable economic benefit."



Bob Decker, executive vice president and chief financial officer for Churchill Downs Inc., and Lonny Powell, president of Santa Anita Park and vice president of racing for Magna Entertainment, also stressed the need to find value in acquisitions, and both said more may be forthcoming. But their companies' strategies are somewhat different than those of Greenwood. 



Decker said Churchill Downs seeks to enhance and promote live racing, and to build a cohesive simulcasting network. Powell said Magna Entertainment, which could launch publicly in the first quarter of 2000, also looks to "package a simulcasting product under a brand name," and create entertainment centers at some of its racetrack holdings. 



Though the NTRA isn't necessarily the match that lit the purchase fires of several of the industry's racing and gaming companies, it has created some sense of optimism within and outside of the Thoroughbred industry. There may be no better example than IBM Global Services, whose general manager Mark Elliot provided more details about the partnership between his company and the NTRA. His comments need to be put in the proper context—Elliot manages 65,000 employees, and is responsible for the company's "e-business" services. 



Elliot said the Thoroughbred industry must operate as a virtual enterprise, and that IBM, having done some research, says it can become a top-five sport, create new fans, offer more purse money, and have a centralized office that would provide vision, not restraint. He said implementation of broadband technology will link the industry and at the same time reduce costs. 



IBM and the NTRA are expected to sign a contract extension by the end of December. Elliot said he hopes to offer a business proposal that would ensure a long-term relationship. 



"This is a great business opportunity," Elliot said. "It's going to work. The industry needs a technology foundation to ensure success."

To that end, he suggested the industry create a "technology organization" that would streamline operations and perhaps oversee a "properly capitalized" state-of-the-art totalizator system. Elliot said he expects to report progress in about a year. 



In near term, the NTRA will launch five new commercials that received an 84% "good" or "excellent" rating by 338 people surveyed in four major racing markets. Marty Orzio, a partner in and creative director for Merkley, Newman, Harty, said music will be the focal point of the advertising campaign. One of the songs used in test commercials was "Shout," while catch phrases that appeared in the ads were "There's a fine line between pain and pleasure. We call it a nose," and "How often do you get to kiss strangers?"



The previews of the ad proposals drew applause from symposium attendees, though that didn't prove to be an accurate indicator of their success the first two years. 



Orzio said the ad agency hopes to strike a balance between the first two ad campaigns. He said the first, which featured actress Lori Petty, had "an edgy sense of fun and excitement, but perhaps fell short on the wagering side." The second round, with actor Rip Torn at the helm, was "esoteric, and perhaps made the sport a bit too complicated," he said. 



In a related television announcement, Mark Wilson, chief executive officer of the TV Games Network, said trainer Bob Baffert has agreed to be a part-time announcer for the network. "I'm really stoked," Baffert said in a video clip shown during NTRA's presentation. 

Just before the NTRA took the stage, veterinarians, a regulator, a trainer, and a racing official hashed out the pros and cons of equine research at the racetrack. Among the topics were a study on toe grabs and the procedure known as "scoping."



"The key word is invasive," trainer Eddie Gregson said. "How many times will horses have to be examined and prodded? These are animals we're managing for owners, and the very notion horses are just guinea pig test animals will create problems for owners. If (the testing) is reasonable, OK. But invasive is the key word."



Dr. Kenneth McKeever, associate professor at Rutgers University, said testing horses at training centers has worked well in New Jersey, though the results could be different from tests done on race day at the track. Such procedures on the backstretch can prove counterproductive, said Norman Barron, a member of the Ohio State Racing Commission. 



"In this industry, every situation is a balance of interests," Barron said. "We need safeguards. It's a real fire drill on the backstretch in the morning. There are too many people stepping on each other. One of the biggest problems regulators have is security on the backstretch."

Ferraro, the moderator from University of California Davis, said dialogue among all concerned parties is necessary before any research or testing program is implemented. "Without fine-tuning between investigators and the participants, we would end up in front of (racing commissions)," he said. In addition, he said: "If you can't justify knowledge gained versus invasive procedures, you can't go forward (with a study). Getting approval from a university can be quite complex." 



Other panels at the three-day symposium discussed international racing and wagering, account betting and simulcasting, retirement programs for horses and Greyhounds, development of fan programs for youths, racing surfaces, technology, and sports marketing.