Horseracing industry associations in Quebec have served the provincial government agency that oversees the sport with a legal warning to take action and enforce the contract it signed two years ago when it turned over Quebec's four racetracks to private operator Attractions Hippiques, now in creditor protection.

"Our clients are not demanding any additional money from SONACC (the racing agency) or any other government entity, only that the contract signed by SONACC be respected," said lawyer Daniel Des Aulniers, representing the provincial horsemen's association (ATAQ), the owners and breeders association (SPECSQ) and the regional racing circuit.

When SONACC passed the operation of Hippodrome de Montreal and the three smaller tracks to Attractions Hippiques, the contract stipulated purse payouts of $25 million the first year and $28 million the second year.

The associations estimate the purse shortfall this year at about $10 million so far. And with no clear commitment yet to purses for 2009, Quebec breeders now find themselves with large stocks of young horses with no real market value. The annual CESQ yearling auction, normally held in October, was cancelled this year for lack of buyer interest.

Cancellation of the auction creates additional costs for breeders, and non-respect of the contract puts their assets at risk, the legal warning states.

It concludes by urging SONACC not to agree to any change in the original agreement if that were to be proposed by the trustee now managing Attractions Hippiques, or risk further legal action.

(Trot Insider exclusive by Paul Delean)