On Wednesday, November 12, the Standardbred Breeders and Owners Association of New Jersey released an update on the purse subsidy situation between itself and the owners of Freehold Raceway.
The release appears below in its entirety.
There has been much conjecture about the dispute between the Standardbred Breeders & Owners Association of New Jersey and Freehold Raceway’s ownership over their unwillingness to accept funds from the purse supplement secured from New Jersey’s casinos this year.
The SBOANJ’s meeting with horsemen on Tuesday, November 11, 2008 at Freehold was the culmination of several weeks of phone calls and meetings with the parties involved in an effort to work out a means by which Freehold would receive the supplement, but, thus far, Pennwood (Penn National Gaming and Greenwood Racing) has been unwilling to accept the funds -- $1.6 million for the balance of this year and $2.6 million in 2009.
If Pennwood is uncomfortable accepting the provisions of the purse supplement agreement, the company is free to contribute the funds from their own sources. But to deprive Freehold’s horsemen of the purse money to which they are entitled is unacceptable. To threaten to reduce their purse allocation to $25,000 daily is to essentially put them out of business.
Various options have been offered in public forums that only replicate efforts already rejected by the parties involved.
The criticisms of the agreement seem to ignore the fact that this is $90 million -- $30 million a year split equally between thoroughbreds and standardbreds – that is essential to keeping the racing industry alive in New Jersey. It took the governor’s office making a trade off of tax benefits for the casinos to complete a lengthy negotiation and achieve an agreement. No one is ever entirely happy with an agreement but this was something that surely benefits the racing industry of New Jersey.
Neither the thoroughbred or standardbred horsemen, although they expressed their opinions, were included in the discussions. It is an agreement among the New Jersey Sports & Exposition Authority, the New Jersey Casino Authority and the office of Governor Jon S. Corzine.
No one is going to re-open those negotiations and jeopardize a $90 million “gift” to racing especially as the casinos themselves are currently suffering dramatic downturns in their business.
The agreement goes beyond the allocation of the funds. It also includes a requirement that a study be delivered to the governor by July 15, 2010 with a long range funding plan and other recommendations regarding the future of racing in New Jersey.
There are also provisions that address a refund to the casinos should other forms of gaming come into play before the December 31, 2011 conclusion of the agreement.
The SBOANJ has negotiated with Freehold/Pennwood in good faith, attempting in all ways to mediate a way in which the funds could benefit Freehold’s horsemen without imposing any restrictions on its parent companies. All of these have been rejected by the NJSEA and the casino representatives.
The SBOANJ has not called upon its members to take any actions. The meeting this week was to keep the membership informed. Authorization for simulcasting signals may be withdrawn by the group as a legitimate negotiating tool. This is well within the rights of the SBOANJ to do so and to ask for the support of horsemen.
At this point, the SBOANJ would argue that Freehold is in violation of its contract which calls for them to do everything in their power to promote racing and improve the quality of racing. The SBOANJ has no intent to harm Freehold but has every right to enforce its contract.
It is now time for Freehold/Pennwood to step up and accept the funding from the agreement or pay for the supplement out of their own accounts.
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