Judging by the way some events unfolded during the National Thoroughbred Racing Association's second full year of operation, it should come as little surprise that those involved in the organization are eager to put the "terrible twos" in the past and forge ahead into year three.

Much like a toddler at a mere 24 months old, the NTRA struggled through some difficult changes during its second year.

Some of the changes-including major depletions in its executive staff and an announced alliance with Breeders' Cup Ltd. after financial deficits emerged as a problem-were major and well-publicized. Others were more subtle in nature, such as increased racing coverage on national television and added exposure through the cooperative advertising program, and reflected some progress in the stated goals of the NTRA's original business plan.

But the NTRA also dealt with failures during its second full year, including the experiment with a 1% buyers' premium program that proved about as popular with buyers as sushi would be to youngsters perched in highchairs. Membership renewal also became a primary concern for the NTRA during the final few months of 1999. Some major players in the industry balked at renewal, including Frank Stronach, who threatened to take the tracks owned by his Magna Entertainment Corp. (MEC) out of the loop. A group of Mid-Atlantic racetracks also threatened to withdraw from the NTRA, but in the end, nearly all renewed for one more year.

"There's no doubt that 1999 was a year of growing pains and adjustments for the NTRA," said Lonny Powell, MEC executive vice president for racetrack operations. "And like every other new organization, the honeymoon stops. There was some unrest amongst the membership and often valid concerns that their input hasn't been heard.

"To their credit, the NTRA has received that message and is now making an attempt to gather input and feedback before charging ahead with some issues," Powell continued. "The onus is on the NTRA. I'd like to remain cautiously optimistic that the NTRA will get through this period of debate and become a stronger organization. Only time will tell."

Despite the "growing pains," officials with close ties to the organization feel the NTRA has made some strides in making Thoroughbred racing more prominent while conceding the mission is far from complete.

"The NTRA has made substantial progress in a number of areas, but there's a lot of sniping going on right now, which seems to be the norm in the racing industry," said Alan Foreman, chairman and chief executive officer of the Thoroughbred Horsemen's Association and an NTRA board member. "Those who expected the NTRA to turn the industry around in two years aren't satisfied. But if you look at where we were two years ago compared to where we are now, we'd be doing better if the critics would get behind the program."

"We neglected our customer base for 75 years," said John Gaines, founder of the Breeders' Cup and founding president of the National Thoroughbred Association, predecessor of the NTRA. "To expect to turn it around in a matter of months is not realistic. There's a lot of trial and error involved. We need to look at this whole thing historically. So many good things have happened that wouldn't have happened without this organization."

Power of television

One specific program where the NTRA has shown significant growth during its two years is television, which had been targeted as a top priority. The NTRA's push to get more races on national and cable television has gained widespread praise from the industry.

In 1997, a mere 12 hours were dedicated to Thoroughbred racing by national television networks ABC and NBC. The number of hours increased to 12.5 in 1998, with Fox coming on board to televise the Santa Anita Derby (G1). By 1999, a total of 24 hours was dedicated to racing by the aforementioned three networks.

When ESPN is factored in the mix, the total number of hours dedicated to Thoroughbred racing has skyrocketed. From 1997-'98, racing's total television coverage increased from a total of 941Ú2 hours to 1121Ú2. The bar was raised again in 1999 as 137 total hours of racing appeared on ABC, NBC, Fox, ESPN, espn2, and Fox Sports Net.

The NTRA has 115 hours planned on the cable networks for 2000, not including the possibility of additional television coverage should a horse be poised to win the Triple Crown, along with 17 more hours on the networks. The network total also does not include any pre-Breeders' Cup coverage on NBC.

"I have a strong belief that both the increased amount of live racing on television and the increased amount of advertising, both through the co-op and national programs, has raised racing's profile," said Tim Smith, NTRA commissioner and chief executive officer. "We've taken a big step, one we had to take, to get to where we are."

It is difficult to determine if the increased amount of racing on television has succeeded in attracting more fans to sit down in front of their television sets on a Saturday or Sunday afternoon. Results of an ESPN Chilton poll, however, show that consumer interest in Thoroughbred racing has risen 3.2% in the last two years (from 31% of viewers saying they are interested in racing to 32%).

Ratings for racing's premier events-the Triple Crown and Breeders' Cup-either have tailed off slightly or have remained relatively stagnant over the last four years. Of those events, the Belmont Stakes (G1) has enjoyed the best growth, but that is at least partly due to the fact that for three consecutive years a horse has attempted to sweep the Triple Crown. Ratings for the Belmont have risen from a 2.9 in 1996, to 5.3 in '97, to 5.9 in '98, to a 6.0 last year.

Funding the project

The launch of Television Games Network (TVG) in 1999 also helped increase the amount of racing on American televisions, but the network has not yet reached widespread distribution. Although broadcast to cable subscribers in Louisville, TVG is only available via satellite in other markets, and officials from the company estimated earlier that there were approximately 3,000 account wagering subscribers.

"We may lose a terrific opportunity if we don't encourage TVG," Foreman said. "It has always been a priority. The concept of TVG and using the wagers to help make the NTRA self-sustaining hasn't panned out, not even close. But it is extraordinarily important. If we lose this opportunity, it won't come back to us again. Outside investors will not look at this industry as a cohesive unit."

Interactive wagering, such as that conducted by TVG, also is considered a top priority for the NTRA, and many industry observers and officials have noted that the future success of TVG will aid the NTRA. In its original business plan, the NTRA counted on TVG wagers for funding estimated at approximately $6-million during 2000, but that number was trimmed to $750,000 earlier this year.

The estimates were slashed because TVG handle figures were lower than anticipated, partly due to the fact that telephone account wagers are accepted in only three states-Kentucky, Maryland, and Oregon.

Through NTRA Services, which operates the wagering hub in Oregon, the NTRA earns 0.75% of the handle generated by TVG. Operation of the wagering hub caused concern among several of the tracks that threatened to drop out of the NTRA, particularly tracks in the Mid-Atlantic region that operate their own version of telephone account wagering.

"What's happened with the wagering hub in Oregon is a concern to the tracks," said Bryan Krantz, president and general manager of Fair Grounds, who will become a member of the NTRA board of directors in May. "There is competition there that hadn't existed previously. And the NTRA has not generated income from the hub that was projected for this year."

The NTRA also mishandled its chance to bring additional fi