Confidence Causing Economic Hurdles

Published: October 22, 2015 09:45 am EDT

I read earlier this week that the OLG is looking for "input on a financial model" for our industry from OHRIA and participants.

Well I'm a participant so you can officially call this my "input".

Since 2012 we have seen quite a change.

First our government formed a three-man panel who were going to show a clear path for horse racing's independence and sustainability.

Now we have no panel and no concrete path to anything.

Next we were told that horse racing will be integrated into the OLG's plans moving forward.
Great news, but what is integration?
No one knows apparently.

We will have rebranding with the OLG to include horse racing in its overall banner.

Wait.....No, that's too expensive.

Most importantly we will have one horsemen's group.
Finally reuniting all horsemen with one voice.
I was very happy to put my name forward, even though the group was not promised or granted any apparent power, I felt it was a good way to advocate for change.

First we were supposed to know in August who was on this committee.
Then there was a delay until September, now it appears it's on the shelf indefinitely.

Before we get to financial hurdles or economic obstacles facing our industry, can we please have an explanation of why as horsemen we don't have one voice yet?
When can we expect integration?
And I suppose, WHAT IS INTEGRATION?

Assuming all these get answered we still have the whole issue of horse shortages, investor migration and money shortfalls.

Horse shortages is a tough problem.
At the heart of the problem is a number of things:

1) we don't race for near the same money as our southern counterparts right now and that's not changing any time soon.

2) our province has a serious issue filling high-end claiming races on a regular basis and in turn not just allowing -- but virtually pushing -- owners of these horses to sell or relocate their horses to the U.S.

Look no further than this past weekend's sale or any program from Yonkers, Pocono or virtually every American race track right now to see our horses and our investors racing.

Our inability to regularly fill these classes has ensured their extinction and the money invested in the horses to leave forever in some cases.

3) The exchange rate makes it far to easy and enticing to owners in Ontario to sell or move horses.

This is a very tough problem to solve.

We cannot compete with the purses in New York or other jurisdictions.
So rather than attempting to boost puse money across the board, why not offer incentives or bonuses to Ontario bred and owned horses.

We cannot allow any investors to be lured away any longer.
We need to fill all the claimers we can from $15,000 right up to $50,000 or higher.

We know who the owners and trainers who purchase these horses for the most part are. If you need to mix in condition horses for a while, then do so.
But not at a gross disadvantage to the claimer.
The fields have to be competitive for all.

I've proposed multiple times that we index all horses in Ontario making it as easy and streamlined as possible to figure out what horses we have in Ontario and what types of horses we need so people can acquire them.

People will invest here and continue to if they know their horses will get a chance to race every week in competitive fields.
The fact is they don't.
There is no confidence that you can get your horses raced every week and even less of a chance that there will be evenly matched fields.

Don't take my word for it, ask the owners.
They are around all week but likely in the States watching their horses on the weekend.
Give them a call on Tuesdays.

The problems we have are fixable.
The plans the original panel set forth are attainable, look at rise in wagering in WEG, Western Fair, Grand River.

A horsemen's group would make it easier for racetracks to fill competitive fields because there would be an open dialogue.
Horses could be acquired and a strong product assembled.

Could we actually build OHR (Ontario Horse Racing), I don't mean online or in programs or a dusty closet at Carleson Court, I mean an actual tangible building with people working in it.
We could set up advisory groups of gamblers, trainers, breeders, and drivers to ensure we have the best product in the world.

You could have groups set up to meet with investors or at the very least search them out and approach them.
Find out if and how we could make investment more palatable to the average person?

The fact is that we have been playing dead for three years and if this mentality continues in the future we won't be playing any longer.

I could stay quiet and hope and pray like and pretend that everything will be OK.
The fact is it won't.
If we can't slow, stop and reverse this trend of migration of our horses and investors' money across the border we will end up like the band playing on the Titanic, nowhere to go and nothing to do but play music until the end.

I really hope OHRIA can put fourth a helpful business model with the OLG.
The things mentioned in this blog, they're on us.
If we can't fix these issues, they needn't put fourth a plan at all. There will be nothing to save.


The views presented in Trot Blogs are those of the author and do not necessarily represent those of Standardbred Canada.

Comments

Anthony, while I read your blog with concern, some questions and observations come to mind. Firstly, we have been promised time and time again how horse racing will become an intricate part of the OLG gambling program, however as you pointed out, nothing has been done yet. Don't hold your breath.... it's not going to happen. The truth is that we are on "life support" and this $400M subsidy that we are currently receiving is only a Band-Aid solution and will at some point come to an abrupt end as did the SAR program. Governments will change and therefore attitudes toward racing and subsidies to racing will also change. Therefore, it is encumbant upon us to become a self sustaining industry. Recently, I read on the S/C website that ALL tracks will have to apply for a license to conduct racing in 2016. Reading between the lines, I interpret this to mean, that not all tracks currently operating will be granted licenses to race in the future which means fewer tracks and fewer race dates. It also means that the tracks who promoted racing and who had increased handles will indeed survive.( WFR, Grand River, WEG, etc.) This will also mean that fewer horses will be required to fill those race cards, eliminating the current acute shortage of horses. This is my prediction. Secondly, now the question is what do WE need to do to enhance racing because the gov't isn't going to do it for us. Firstly, we need ONE strong voice and that means ONE organization, with member participation, to represent all breeds. I understand that requests have been made for volunteers. This needs to be done NOW. Secondly, we need to create a fund by deducting 1% from the purse structure to promote the industry and lobby our current gov't and future gov'ts and impose on them how important the industry is to the agricultural economy and to the Province as a whole. I applaud the recent request for an updated survey to discern the economical impact of racing in the Province. Thirdly, we need to hire a professional ad agency and put racing to the forefront of the general public. Hopefully this will increase our customer base as well as the ownership and participation base. Without the increase in customers and wagering base, the industry will continue to shrink and eventually die out. While some would classify my views as being pessimistic, I prefer to be called a realist. Finally, we can no longer afford to be passive..... we desperately need to become PROACTIVE in our approach. To our current participants in racing, this means ultimate survival. To our children and grandchildren, it means possible future opportunities.

I also put my name forward to be considered for the horsemen's group, apparently they are taking their time forming one.

Anthony has made some very valid points. I would like to add that this industry cannot survive on the current purse structure once you leave the WEG circuit, unfortunately we all can't start there but we hope at sometime to make it there.

That being said, we are losing aged horses to other jurisdictions because there aren't enough condition and a broader range of claiming classes for our horses to compete in. Why are there not Fillies and Mare classes for trotters? What about the fillies who turn 4 that can't find a competitive class to race in. The OSS filly classes are great for 3 year olds why not continue to the 4 year olds?

I would like to think that SBOA would rather see those fillies keep racing in ONT and eventually join the ONT broodmare ranks instead of being sold to the States. We are all waiting for Integration, hope it gets here. SOON.

Hopefully before our Owner and Trainer base is further desecrated.

OK Mr. Macdonald. In fairness I am not a "participant" although at one time I was a owner, trainer, and driver. Presently I simply watch from the "hilltops" and take employees and families to the races as "entertainment". Let's look at it from the fans/bettors perspective, since after all I suspect as you have alluded to in the past the industry will not survive on "participants" alone. I have posted many times the obvious problems from the fans perspective one of which you even took the time to write and agree with me, that being the "insane" fair start rule and it's negative effect on fans/betters. That was several years ago and guess what nothing has changed. I could go on and on about the other "obvious" things which you have also agreed with from myself and many others. But here perhaps is a new one for you. You are familiar with back room politics/agendas by now as am I. If you take the time to go to our tracks, look at the facilities provided for the fans/bettors. Typically racing fans must pass through or sit near the ringing slot machines. The chairs for racing fans are mostly broken or damaged. Meal vouchers are given regularly to slot players and not even a hello to racing fans. If you are a betting man I will wager some friendly amount with you as to why. The various governments view the return on effort/cost/investment as being much better and easier from slots and shortly also table games and single sports wagering. So they are paying lip service to the racing participants while allowing "passive euthanasia" of certainly the Harness Racing Industry. I hope I am wrong but as stated I will wager I am right!

Couldn't agree more Anthony some great points. For the record I to put my name forward for the horsemens' group. I still love the industry and think I could contribute and although my contributions are pale by those I know in the sport my passion and wanting to do something is still strong. I tried to warn people for many years what might happen "when" SARP was cancelled not if and that we need to change the whole approach to presenting product and many of the other points you've previously stated. Best of luck and if you ever hear who exactly is involved in the formation of this group drop me a line. All the best and continue the good fight.

In reply to by dave gilders

You know my thoughts Mr MacDonald. I would be more than glad to be apart of your situation from a promotional standpoint. Proof of this, has been my involvement here in discussions and a phone call we had about 2 years ago, and I have nothing to gain. If your sport comes or goes here in Ontario, I will be fine, but I am here fighting with y'all, and for y'all.

If you feel I can be of some use, then you know just leaving the word here, will get me on board. Best of luck and I hope you all get this right.

Anthony
There have been numerous stories this year on SB Canada where the government states they have been meeting and working with OHRIA on an integration plan over the past 9 months. Perhaps you need Ms Leslie to clarify exactly what meeting have been taking place because her stand is always the same". I'm waiting on the government". Something doesn't ring true here.

Your comment on horses going to the U.S. We sent our horse to Northfield Park in June because they were not writing a good condition class for him. He would have been lucky to get 1 or 2 races a month here. Lots of low claiming classes were being written but not for the horses with higher earnings. We would have had to turn him out for the summer..

truthful comments from a concerned and respected racing participant who has experienced the highs and lows of the harness racing industry.

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