Arizona Downs in Negotiations to Potentially Race

Following the Aug. 1 announcement that Turf Paradise would not open for its customary meet-start in November, negotiations are underway for Arizona Downs to potentially race in late 2023, track and state horsemen officials said Aug. 10.

Speaking on video conference during Thursday's monthly meeting of the Arizona Racing Commission, Arizona Downs co-owner Tom Auther said the Prescott Valley track had applied for dates in November and December, though he cautioned that a meet is "by no means guaranteed and we understand we'll be under real scrutiny financially." He said the track's goal would be to "pull together financing" and present possible race-meet plans during the commission's next scheduled Sept. 14 meeting.

Turf Paradise, in Phoenix, has typically raced from fall through spring but owner Jerry Simms opted not to open this fall, citing to commissioners a desire for "continuity" amid a potential sale of the property to CT Realty, headed by James "Watty" Watson.

In prior years, Arizona Downs has raced in the summer, though it is not operating this year due to financial difficulties.

Rillito Park also races in Tucson during the winter months.

Financial challenges also extend to Turf Paradise. Simms offered to share with commissioners what he said were five years of audited financial data showing track losses.

"I've had to loan the track over $12 million over the last few years to keep it open," Simms said.  "And I did that because I thought we were gonna get (historical horse) machines. I pretty much felt that we had a very, very good chance to get them from (former Gov.) Doug Ducey and that didn't happen."

Historical horse racing devices, which resemble slot machines, have become highly profitable for racetracks and have contributed to massive purse growth in the states in which they are in operation. Some state racing laws, such as those in Kentucky and Virginia, have been amended to ensure the legality of HHR machines.

Officials from CT Realty did not speak during Thursday's ARC meeting, but Simms said he met with Watson three weeks ago and according to Simms, Watson told him "he thought his chances were only 50/50 of making his deal." The sale is scheduled to close Dec. 17, though Simms said Watson has to give him notice by Sept. 15 "if he is going ahead or not."

Simms said other parties have reached out about purchasing Turf Paradise if the purchase agreement falls through, mentioning Louisana Downs owner Kevin Preston as one potential buyer.

Simms said Turf Paradise ceased watering its course this summer, but that a resumption of watering in November could allow the track to potentially run turf races in January, citing a recent inspection by a turf course expert, if racing is in the plans for the new track owner. 

CT Realty is attempting to rezone a portion of the Turf Paradise property, submitting a conceptual site plan to the city of Phoenix for an industrial and data center park totaling about 2.6 million square feet, ABC15 in Phoenix reported.

Without gaming, the off-track-betting network in Arizona is among the most rewarding components of owning Turf Paradise, and horsemen and Turf Paradise officials have been at odds over a split of revenue. Noting the costs of OTB operations for the racetrack, Simms said the split needs to be 60/40 between the track and horsemen after the latter received 50% the past two years. He said horsemen have offered for the track to receive 55% in earlier negotiations.

Simms said Turf Paradise currently operates 37 OTBs, down from its pre-COVID-19 tally of 60 OTBs. The state's OTBs typically operate in restaurants and bars.

"I don't want to get into this and that with Mr. Simms in the middle of a commission meeting," Arizona Horsemen's Benevolent and Protective executive director Leroy Gessmann said. "I will say the HBPA worked very hard to put a deal together, and in the end, we were just told, 'Jerry Simms is 77 years old. He's tired; he doesn't want a race meet anymore.' And we have to wait til there's a new buyer."

Two horsepeople on the video conference, representing the Thoroughbred and Quarter Horse breeds, encouraged a continuation of racing in the state and assistance from the commission in helping that to occur.

Breeder Marvin Fleming of Fleming Thoroughbred Farm in Willcox told commissioners: "It is very difficult to promote and encourage breeding in Arizona not knowing from year to year if we will have a track to race at."