NEWS
Smith highlights racing's growth potential at NTRA annual meeting
Posted: Tuesday, October 01, 2002
Optimism toward future growth was the theme of the day as the three-day National Thoroughbred Racing Association Annual Meeting and Marketing Summit kicked off on Monday at The Mirage in Las Vegas. Speaking to more than 200 industry representatives, NTRA Commissioner Tim Smith focussed his opening and closing statements during Monday's NTRA session around the use of "positive energy, also known as optimism."
"Horse racing's TV ratings, handle, and national sponsorship sales all are up for the first six months of 2002," Smith said. "Purses and public interest are also on the rise. Why? To be honest, we're not really sure in all cases. But at one level, it has to have something to do with fundamentals—great sport, great wager—and also with what we're doing together to increase racing's profile, popularity and, yes, positive energy."
Smith pointed out that an ESPN sports poll shows that the horse racing fan base has grown 5.4% in recent years, this in the face of problems facing other major sports.
"My former sport, PGA Tour golf, is currently looking for 20 new sponsors to replace the companies that left or as one article put it 'simple imploded,'" Smith said. "Baseball has lost 50% of its male teenage audience in the last four years."
"Summer TV ratings for the 'Road to the World Thoroughbred Championships' are significantly up this year [66.5% increase] and, second, there is growing evidence that nationally promoted and televised races result in increased handle," Smith said. "The levels of national television exposure for, and public interest in, horse racing are both up. We believe these two results relate and connect to each other, and the consumer research experts concur."
Other key points during the session focussed on legislative efforts, drug testing and medication practices, television, sponsorship, and other promotions.
Greg Avioli, NTRA deputy commissioner, said the organization's main two legislative goals for 2003 are to "eliminate the 30% withholding tax on international wagers" and "maintain the current legislation on simulcasting."
Avioli said that $85-billion is wagered on horse racing outside the United States, but that less than 1% of the handle is on American races. He pointed out that France has a special treaty with the U.S. that eliminates the 30% tax, thus 2% of handle on the Breeders' Cup World Thoroughbred Championships comes from France.
Scot Waterman, executive director of the NTRA Racing Integrity and Drug Testing Task Force, reported on the "Supertest" where 1,596 random equine urine samples from 28 states were tested for all known drugs. Only 1.3% tested for RCI class 1, 2, or 3 drugs, while 98.7% of samples were negative.
Chip Campbell, NTRA senior vice president of television and sponsorships, said that the NTRA has re-signed with ESPN through 2008 and highlighted new sponsorship deals with NetJets, NAPA, Long John Silver's, Guinness, Sega, and Toshiba. Campbell said goals for 2003 are to bring automotive and telecom companies into the fold.
Keith Chamblin, NTRA vice president of marketing, introduced three new television ads for 2003 that target 30-million casual fans, some considered either light and/or lapsed.
The first featured a montage of happy race fans set to the Isley Brothers song "It's Your Thing." The second ad focused on jockeys set to the Toby Keith hit "Should've Been A Cowboy." The third spot focused on the graphics which state, "unlike football...unlike basketball...unlike baseball...the players here...are in the stands" set to contemporary rock music.—Richard Eng
