CHRB Denies Ferndale Dates; CA Racing Solely in South

In a 4-3 vote during a contentious May 15 meeting in Sacramento, Calif., the California Horse Racing Board denied awarding race dates for the Humboldt County Fair at Ferndale in Northern California, further consolidating Thoroughbred racing in California in the southern part of the state.

Last month, the CHRB rejected a request from the Alameda County Fair to conduct racing at Pleasanton, and the Humboldt County Fair's dates application stalled without a sufficient vote-tally requirement from the CHRB during a board meeting having only five commissioners. This resulted in the application being back on the Thursday agenda before a full seven-person board.

The CHRB's decision benefits Del Mar and its racing participants, allowing the Southern California track to receive a redirect of between $1 million and $2 million in coveted simulcast revenue. Anticipated redirected money was factored into Del Mar raising purses by 8% this summer, Del Mar officials said earlier in the CHRB meeting. They plan to offer selective races for horses formerly based in Northern California, as Santa Anita Park has done this year.

Commissioners Oscar Gonzales, Brenda Washington Davis, and the newest appointee to the CHRB—Peter Stern—voted in favor of awarding dates for what was to be Ferndale's 129th racing season, while commissioners Thomas Hudnut, Damascus Castellanos, Dennis Alfieri, and Dr. Greg Ferraro opposed.

"Big mistake," said vice chair Gonzales, the board's leading supporter for Northern California interests.

He followed up with CHRB executive director Scott Chaney about the possibility of re-examining race dates for the Humboldt County Fair at an emergency or follow-up CHRB meeting. Such meetings appear unlikely.

"How many votes (do) you want to have on this? You've lost twice," countered Ferraro, the CHRB's chair, referencing the race dates application also not advancing last month.

Ferraro supports the current single circuit for Thoroughbred racing in California, which has been in place since a failed meet from Golden State Racing at Pleasanton that concluded in December. Golden State Racing conducted racing last fall under the direction of the California Authority of Racing Fairs after summer fair racing. The summer fairs followed 1/ST Racing's closure of Golden Gate Fields in Northern California.

Bernal Park Racing, a group headed by owner/breeders George Schmitt and John Harris and backed by their personal financial support, was to operate the fair meeting at Ferndale with support from former CARF personnel. Their organization was formed recently after CARF announced in January that it would discontinue managing racing operations. 

Jim Morgan, special counsel for the Humboldt County Fair, noted that some Northern California horsemen and breeders feel disenfranchised by the lack of ongoing racing in Northern California and the consolidation of racing to the southern part of the state, where approximately 400 horses have relocated.

Morgan pointed to an influx of lower-level horses to Emerald Downs in Washington. Twenty-four of the 62 entries for the May 17 race card at Emerald Downs are California-breds. By comparison, 18 are Washington-breds.

Horse owners and breeders Renee Greiner and Francis O'Leary echoed the current need to run out of state, making their case that not all Northern California horses are suited to a higher caliber of racing in Southern California.

"You can't have minor leaguers playing against major leaguers," O'Leary said.

The Thoroughbred Owners of California, which numerous Northern California horsemen have criticized for favoring Southern California interests, also supports a single circuit. Its president and CEO, Bill Nader, pointed to increased handle, purses, and other economic indicators at Santa Anita since racing ceased in the north. Los Alamitos Race Course is also expanding its early summer race meet by one day as a result of the increased horse population.

"We have something here that we haven't seen in a long time. We have momentum, optimism, a glimmer of hope for a lot of people, owners, trainers, breeders, jockeys, employees, hoping for job security, people who have stayed loyal to California during challenging times," he said.

The Humboldt County Fair was supported in letters from horsemen, fair operators, and influential state legislators, including California Senate President pro tempore Mike McGuire. McGuire apparently tried to call in with public comments, but was denied a speaking opportunity. Chaney told the board that such calls are prohibited for live meetings.

Gonzales cautioned Nader that a short-term gain from a racing consolidation could prove costly if California stakeholders pursue political assistance. Laws might need to be passed to legalize historical horse racing gaming, for example.

"Not only are you putting all of your financial chips on one square, you're putting all your political chips, Bill, on one single square," Gonzales told Nader.

According to Ferraro, garnering support for HHR gaming has been difficult in California because of a gaming compact the state has with Native American tribes.

Humboldt County Fair officials said 45,000 to 60,000 people typically visit their fair, with attendance highest on race days and during other agricultural competitions. The fair draws attendees from California and Oregon, and their spending reportedly pours millions of dollars into the small town of Ferndale.

However, racing from Ferndale has generated little betting. Counting all sources, last year's daily handle there averaged $440,000, making it perhaps the least popular wagering signal in the country at that time of year, Nader said. Del Mar handled more than $16.2 million daily last summer.

Later during an exchange with a Northern California owner and breeder Rob Smolich, who questioned what could be done to assist Northern California horsemen, Ferraro said, "It doesn't matter how much support we have from horsemen or people involved in the horse industry to try to get something going in Northern California if the general public is not interested or supports it. I think the smart thing to do at this point in time is to engage with the board and with the legislature and with the industry to try and do a feasibility study amongst the public in Northern California to find out if there's enough public interest in horse racing to make it go, because if there isn't enough public interest, we're all wasting our time."