TSG Pledges $31.7 Million to California Consolidation

Following 1/ST Racing's July 16 announcement to close Golden Gate Fields in Northern California at the end of the year and consolidate its state's operations to Santa Anita Park in Southern California, the track operator announced July 28 a $31.7 million investment at Santa Anita.

Speaking with reporters in a video conference call July 28 as the company issued a press release outlining the investment and capital improvements at Santa Anita, 1/ST Racing executives Craig Fravel and Aidan Butler sought to emphasize their company's commitment to California racing. Their statements were some of the first public comments from 1/ST Racing officials since the announced Golden Gate closure.

Fravel, executive vice chairman of 1/ST Racing, declined to discuss future plans for the property at Golden Gate, citing ongoing negotiations. California Racing Board chair Greg Ferraro previously confirmed to Thoroughbred Daily News that negotiations concern the potential for the property becoming a park.

Fravel expressed hope that some Northern California horses displaced by the company's shutdown of Golden Gate at the end of the year could join the circuit at Santa Anita and allow the track to extend from racing three days a week to four.

"We're obviously reaching out to (Northern California horsemen) through our racing departments to address their concerns, to reassure them that they're welcome down south," Fravel said in response to the company's surprising Golden Gate shutdown announcement.

Critics of Santa Anita's consolidation question if Santa Anita can pick up more than a small fraction of the Golden Gate horse population, with the horses there generally being of lesser quality than those in Southern California. Fravel and Butler hinted that the conditions of the types of races carded by Santa Anita could be modified.

The California Association of Racing Fairs is also exploring continued racing in Northern California at fair racetracks such as at Pleasanton, Santa Rosa, and Cal Expo—which could further limit the horses from which Santa Anita could draw.

1/ST Racing plans to spend funds to potentially lure Golden Gate horsemen and their horses, announcing the following improvements at Santa Anita: 

• Over $1 million to support the relocation of horses, trainers, jockeys, backstretch employees and caregivers from Golden Gate Fields to Santa Anita Park to consolidate racing, and to support the California breeding program;
• A $4.5 million, Tapeta all-weather synthetic track that will replace the existing training track at Santa Anita Park. Golden Gate horses raced on a Tapeta surface at the Northern California track;
• A commitment to fund a portion of 2024 health care premiums for Golden Gate Field employees;
• And the creation of a job board accessible to backstretch employees to support the transition to Santa Anita Park.

In other investment, Santa Anita officials further announced an investment of more than $500,000 (spread over two years) towards building a state-of-the-art equine pool for hydrotherapy and horse exerciser, accessible to trainers at Santa Anita Park; the creation of a turf chute that would allow one-turn mile races; and $23.2 million toward a backstretch barn improvement program.

Backstretch improvements to aging barns and backstretch worker housing have long been pressing needs at Santa Anita.

Santa Anita and Golden Gate are two of the tracks operated by 1/ST Racing, a division of The Stronach Group. Belinda Stronach is chair, CEO and president of TSG. 

Both tracks sit on valuable California property, particularly Santa Anita, which occupies approximately 320 areas of prime Arcadia, Calif., real estate in the shadow of the San Gabriel Mountains.

In discussing backstretch capital improvements 1/ST Racing CEO Butler said, "I've been with the company now five years—it's a project we've been looking at a long time and so delighted that Belinda and the team at The Stronach Group have agreed to move forward with this."

Stronach said in a release that the company's intention is to bolster racing at Santa Anita and also "support Northern California stakeholders through a challenging transition period, and lead the way with state and industrywide changes that will result in a healthier, competitive and sustainable future for Thoroughbred racing in Southern California."

Bill Nader, president and CEO of the Thoroughbred Owners of California, said in the 1/ST Racing release that "While we continue to work diligently on what the north might look like in 2024, today's announcement answers important short-term questions about the future of California racing and Santa Anita Park."

Owner/breeder Terry Lovinger and Southern California trainer Mark Glatt also praised the investment in the 1/ST Racing release.

Industry insiders have expressed concerns that Golden Gate Fields' closure could impact the already fragile Thoroughbred breeding and sales industries in California. California is one of the few major racing states whose racing industry is not bolstered by supplemental gaming.

Butler pledged Santa Anita would hold an annual Thoroughbred auction at the track and would build a museum to support California racing and celebrate its history.