CHRB Discusses California Stabling Disputes

Stabling issues in California, which have been at or near the center of several disputes involving the state's tracks this year, finally came to a head at a California Horse Racing Board meeting Nov. 19 at Del Mar.



While under fire from multiple CHRB members for lacking the required documents to acquire a license to conduct meets at Golden Gate Fields and Santa Anita Park, Stronach Group representative Scott Daruty outlined a plan that would remove Los Alamitos Race Course as a stabling option for Santa Anita's upcoming meeting, which begins Dec. 26. Los Alamitos and members of the CHRB's Stabling and Vanning Committee have not been able to reach an agreement on a daily rate for using Los Alamitos as a stabling location.



"Our plan would be to have 1,900 stalls at Santa Anita, we'll have 500 stalls at San Luis Rey (Training Center)—and we are in the process of building an additional 500 at San Luis Rey ... and we will have 512 stalls at Del Mar, (that) our industry partner has graciously allowed us to use," Daruty said.



When asked by CHRB chairman Chuck Winner about where Los Alamitos fit in that plan, Daruty pointed to the ongoing dispute with Los Alamitos.



"I don't want to come off like we're driving this," Daruty said. "(At) a Stabling and Vanning Committee (meeting, the Thoroughbred Owners of California), Santa Anita, and Del Mar all voted to double the day rate that Los Alamitos received. Unless Brad (McKinzie) says something different, that was not acceptable to them. They were looking for a tripling of the rate, as well as a whole host of other additions and financial concessions from the industry."



"We were going into this trying to get a 10-year agreement, but that has proven too difficult to do," responded McKinzie, who is the general manager of Thoroughbred racing at Los Alamitos. "So, our proposal is that we come back now and see if we can come to an agreement on a shorter-term deal—one or two years—that would be much simpler to do and that's where we're at now."



Earlier in the discussion, Winner and Daruty had a heated exchange when Winner tried to pin down a timetable for resolution of the stabling matter, including the potential addition of stalls to the Stronach-owned San Luis Rey, which sits in Bonsall, Calif., about 35 miles north of Del Mar and about 95 miles south of Santa Anita.



"That's my problem here ... The problem is, everything is 'maybe,'" Winner said, questioning the time it would take to acquire permits to expand the barn area at San Luis Rey.



"Unless you're willing to come up with some magical stabling location that none of us know about, I'm not sure what you want us to say," Daruty responded.



Horse owner Mike Pegram, representing the TOC, explained that the negotiations with Los Alamitos fell through after the Stabling and Vanning Committee agreed on a price for the day rate.

"One of the reasons we left Fairplex was because of the $13,000 a day they charged," Pegram said. "The TOC voted to approve stabling and vanning at $9,400 or $9,500, because that was the fair amount and we supported that amount. At that point in time, we got a counter offer from Los Alamitos, and not only was it a higher number, but there were a whole lot of other conditions in that, that had never been talked about before ... The TOC would love to see a deal done with Los Alamitos to get us through this transition period.



"We're more than willing and able to sit down with Los Alamitos right now and try to work something out. When we sit down and talk about it, the other things have to be off the table. It's about stabling and vanning. It's not about land rent and a bunch of other stuff, Australian signals, and so on and so forth. That's where we got in trouble."



McKinzie said any potential agreement would have to be approved by Los Alamitos owner Ed Allred.



"We're prepared to sit down and see if we can reach a short-term agreement. If that's what this industry wants to do, let's find out," McKinzie said. "If that's what they want to do, we're prepared to do it. If they don't want to do that and just want to say, 'We're done with Los Alamitos' and move on with San Luis Rey and Del Mar, you know what, that's fine too."



California Thoroughbred Trainers executive director Alan Balch expressed a concern over potentially losing Los Alamitos as a stabling option, because many trainers have moved their barns to the Cypress, Calif. track.



"Obviously we don't like the lack of planning and lack of certainty," Balch said. "Nobody does. I don't think we're alone with that. It's true that those who are stabled at Los Alamitos have greater concerns than anyone else. There have been some conversations and ideas expressed that certain trainers would be permitted to stay at Los Alamitos. We don't think that would be appropriate and it's entirely possible under terms and conditions Santa Anita might establish that it wouldn't be permitted."



Ultimately the CHRB decided to grant Golden Gate and Santa Anita a seven-day "conditional license," allowing each track to submit the required documents within that time to obtain a full license for their upcoming meets, but that decision didn't come without comment from the board's members and staff. Stabling agreements would also have to be reached within those seven days.



"Mr. Daruty, this board does not request these documents," said Robert Miller, the CHRB's chief counsel. "These documents are to be submitted for the application because it's the law. It's not on a whim that we want these documents. It's not a request on our part. It's what the law demands."



"All of this stuff should be resolved at least 90 days in advance," CHRB member George Krikorian added. "It seems like every application that comes before this board is like a fire drill—last minute. As a board member, I don't appreciate it ... Maybe the people on the Stabling and Vanning Committee shouldn't' be the same people that represent the tracks. Maybe they should be third-party people who aren't involved with these other things ... It's just kind of pathetic, in my opinion, that we have to sit here and listen to all of this."