NEWS
Magna continues talks with Horsemen
Posted: Friday, August 29, 2008 10:16 AM
FRANK STRONACH
NTRA photo
by Frank Angst
Magna Entertainment Corp. Chairman Frank Stronach sees benefits in working with a national horsemen’s group on simulcast pricing issues.
On Thursday night, Magna Entertainment released a statement that it is continuing talks with the Thoroughbred Horsemen’s Group, which seeks to increase the horsemen’s share of revenue from advance deposit wagering. The THG works with 18 horsemen’s groups that race at 55 different racetracks.
While talks between the two sides have been ongoing since May 2, Thursday’s statement suggested progress toward an agreement.
“We welcome the opportunity to work with the THG as a national agency assisting local horsemen’s groups,” Stronach says in the release. “We are having very constructive conversations with Bob Reeves and Wilson Shirley of the THG.”
Reeves serves as THG president and Shirley serves as a manager.
“We all understand horse racing faces major challenges, and I personally believe that a national horsemen group could be very beneficial in addressing major national issues like advanced deposit wagering pricing and distribution strategy,” Stronach said.
Reeves said some of the talks have involved Stronach’s idea of a “Horse Racing Charter,” which would put in place guidelines for racetracks and horsemen to deal with each other when future issues arise.
“I am hopeful that in the near future we will develop a new framework which will improve the economics of the horseracing industry for both race tracks and horse owners,” Stronach said.
The THG wants one-third of ADW revenue committed to purses. Currently, the THG estimates sites like Churchill Downs’s Twinspires.com commit about 4.72% of handle to purses. The THG would like to see that percentage increased to 7%, which would be one-third of the typical 21% blended takeout.
While Magna has worked with Churchill to market its racing signals through TrackNet Media, the two sides have split ways on negotiations with the THG. Churchill is pursuing a lawsuit against the THG, contending that the group is breaking antitrust laws.
Frank Angst is senior staff writer of Thoroughbred Times
