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Thoroughbred Times

Posted: Saturday, February 03, 2001

A Frank appraisal

The NTRA's protracted battle with Frank Stronach has made him an even more powerful force

When he was in his early 20s and struggling to make a living while washing dishes in an Ontario hospital kitchen, Frank Stronach enjoyed going dancing on weekends.

If asked about his occupation, he would tell his dancing partners that he worked at the hospital. Feeling his smooth hands in theirs, the ladies assumed he was a surgeon. Chuckling at the memory, Stronach recalled recently that he did nothing to dissuade their impressions of his magnitude.

More than four decades later, Stronach has utilized all his charm and shrewdness-which have expanded exponentially with his exploits in the business and racing worlds-to twirl the National Thoroughbred Racing Association (NTRA) in a tango over the sport's future.

Although the music has not yet ended, Stronach has emerged, for better or worse, as the ubermensch of the North American Thoroughbred world. His standing was never clearer than at the January 14 forum he hosted at Gulfstream Park, owned by the Magna Entertainment Corp. he chairs.

Despite some efforts by NTRA supporters to depict the Austrian-born billionaire as a radical eccentric bent on destroying racing, he was able to assemble about 200 diverse figures for a uniquely candid discussion. From Demi O'Byrne of Coolmore Stud to Mike Weiss of Beulah Park, from Chris Scherf of the Thoroughbred Racing Associations to trainer Happy Alter, they came to hear what Stronach had to say.

Many who spoke spent part of their time at the podium thanking owner, breeder, and racetrack mogul Stronach for giving them the opportunity to talk about the issues facing racing today.

Three days later, Stronach jointly announced with the NTRA that he had succeeded in obtaining a commitment to his demand, first made in 1999, that the NTRA instill more democracy in selection of its board of directors. In return, the NTRA will receive more than $1-million in membership dues from the seven Magna tracks.

Flush with his performance, Stronach said he intends to hold more forums. "Yes," he said matter-of-factly when asked if his stature and power as an industry leader had leaped after the political pas de deux.

"I have a huge investment," he explained of his motives, noting the $550-million he has spent on horses, farms, and racetracks, before issuing what sounded like a campaign speech. "I believe I really understand the industry because I've done every aspect-I've mucked stalls, I've foaled mares, built fences, done haying. And I have the business background."

Newspaper reports elevated Stronach even higher.

"Stronach wins stare down," the Miami Herald proclaimed. The NTRA "blinked first," the Toronto Star reported. A Dallas Morning News columnist declared that "this could have been one of the most significant developments the sport has seen in years." Stronach "forced the country club doors open. No matter what Stronach accomplishes or fails to accomplish with his racetracks, he has done the sport a great service if he has made its leadership more democratic."

The questions Stronach raised encouraged others to ask more questions. In the ensuing debate, the NTRA for the first time revealed the salaries it pays its top executives, telling the Kentucky Horsemen's Benevolent and Protective Association-before that group opted to renew membership-that five NTRA executives earned a total of $1,147,000 last year, not including bonuses. NTRA Commissioner Tim Smith was paid a base salary of $650,000, the New York Times reported.

While Stronach did not criticize Smith, he pointedly noted that the NTRA board of directors-which he has agreed to serve on personally-has the power to hire and direct management.

Some in the NTRA who have spent time bashing Stronach instead of wooing him must wonder what the future will hold. Indeed, it will be intriguing to see if the former dishwasher settles into life on the club board or continues to push for change.

Anyone care to dance?


Michele MacDonald is news editor of Thoroughbred Times.
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