NEWS
Churchill Downs drops out of NTRA
Posted: Friday, May 07, 2010 2:04 PM
CHURCHILL DOWNS
PhotosByZ.com/Thoroughbred Times
by Ed DeRosa
In a cost-cutting measure, Churchill Downs Inc. has not renewed its membership in the National Thoroughbred Racing Association.
Churchill officials sent a letter to the NTRA the week following the Kentucky Derby Presented by Yum! Brands (G1) indicating its intent not to renew its membership for 2010, citing financial concerns. Churchill’s dues for 2010 totaled $375,000, or about 3.8% of the NTRA’s budgeted revenue of $9.7-million for the year.
“Economically, it’s something we thought about doing last year but waited,” Churchill Downs Inc. Vice President of Communications Liz Harris said. “We have the greatest admiration for [NTRA President] Alex Waldrop and the NTRA’s entire team.”
Waldrop is a former president of Churchill’s flagship facility in Louisville; he joined the NTRA as president in December 2006.
In addition to its Louisville track, Churchill also operates Arlington Park near Chicago, Calder Race Course near Miami, and Fair Grounds Race Course in New Orleans, which also will not be NTRA members. NTRA Senior Vice President Keith Chamblin said that Churchill’s dues for 2010 would have been about half what they were in ’07.
“While it’s a hit to our budget [to have Churchill drop out], it’s not quite the same hit it would have been a few years ago,” Chamblin said. “We were seeking a renewal for 2010, and they’ve been hesitant to indicate one way or another whether they were in or out and only this week indicated that they would not be renewing.”
Harris said that Churchill hopes to remain a part of the NTRA’s Safety and Integrity Alliance.
“We think it’s a worthy effort and have strongly supported it since its inception,” Harris said. “Churchill Downs was the first racetrack accredited by the Alliance, and all four [Churchill Downs Inc.] tracks have received their two-year accreditation. In the event the NTRA would not be interested in Churchill’s tracks continuing in this program, we would pursue our own efforts. At this point, the safety standards we impose on our own tracks exceed those of the Alliance anyway.”
“Accreditation is for two years,” Chamblin said. “We did not anticipate an accredited track withdrawing from the NTRA. I would imagine CDI’s accreditation status will be a topic addressed at our June board meeting.”
Another topic at that board meeting will be the status of Churchill’s seat on the NTRA’s board of directors.
Going into May, the NTRA also was seeking a renewal from MI Developments Inc., which acquired certain Magna Entertainment Corp. assets during the latter company’s recent bankruptcy proceedings.
“We’re hoping to meet with MI Developments in Baltimore [during Preakness Stakes (G1) week],” Chamblin said. “They’ve given us every indication that they plan to renew and have participated in our programs, but the situation was they could not renew until working through the bankruptcy.”
Penn National Gaming Inc., which operates its flagship racino in Central Pennsylvania and a racino in the eastern part of West Virginia, entered a joint venture with MI Developments to operate the Maryland Jockey Club. Penn National is not a member of the NTRA.
“Currently, all of our programs are limited to membership or to those who are part of the membership, although non-members do derive benefits from some of our programs and initiatives, such as our legislative activities in Washington,” Chamblin said.
Ed DeRosa is news editor of Thoroughbred Times
Southern California correspondent Larry Stewart contributed to this report
READER COMMENTS
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Posted by: Phillip, Oxford, MI on May 09, 2010 at 06:23 PM
This is a comment both on the gaming-centric focus of CDI, and the irrelevance of the NTRA.I doubt it will have any real world significance, except to fuel the impetus toward federal regulation. NTRA, the entity which, with great fanfare, took the lead on the industry's lame effort to address equine injuries can't even keep the most profitable track conglomerate in its fold. There are two lessons. Don't count on CDI to offer any real leadership in horse racing, as they have already gone over to casino side of things, and, the NTRA, with no real authority, is in no position to offer leadership. The feds will take notice. This is a big story, and the racing media seems to be dodging it.
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Posted by: Tiznow90, Lexington, KY on May 07, 2010 at 06:03 PM
This is the furthest thing from a decision based on financial necessity. Churchill has wanted out of the NTRA for years because it doesn't derive any direct benefit. Their management staffs hate each other. Churchill has simply been waiting for the time when the NTRA was weak enough that they could get away with withdrawing politically, and that time is apparently now. Other tracks will now follow suit; you can officially begin the countdown on the NTRA now.
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