“purse-to-claim price ratio”

All posts tagged “purse-to-claim price ratio”

Will New York be next in the spotlight?

Posted by noonante on October 3, 2019
Posted in: Horse Racing, Political/Social commentary, Politics. Tagged: , , , , , , , , , , , , , , , , . Leave a comment

“As the racing world holds its collective breath, Santa Anita opened its fall meet  –  leading to the Breeders’ Cup  –  on Friday.  The one certainty is that any equine fatality will become a national media story.  If there is a second, the calls for outlawing the sport will increase.”  I wrote that Saturday morning.  Saturday afternoon, Santa Anita experienced its first racing fatality and the second since training resumed.

Santa Anita is in the national spotlight because there have now been 32 fatalities on its tracks this year, both in racing and training.  While there are several tracks in the state, Del Mar, the only other one that gets national attention, just concluded its recent meet with no deaths.

New York has four thoroughbred tracks, with Saratoga and Belmont being the most prominent.  New York has so far escaped the level of scrutiny that makes for the daily drama at Santa Anita. It is not, however, because the level of fatalities at New York’s tracks is not in the same ballpark.

If we only look at Saratoga and Belmont, there have been 36 total fatalities this year, including both racing and training.  Aqueduct, which races for the six months not covered by that pair, has had four.  Finger Lakes, a track not run by the New York Racing Association, has had 10.

I am not using these numbers to suggest that there is some sort of meaningful comparison that can be made between safety in California and New York.  There are numerous variables that must be considered in making any conclusions based strictly on numbers.  And California still has not stated publicly if it has determined the reason for the spike in fatalities earlier this year.

My point is that there is another high-profile racing jurisdiction that may have dodged the bullet of national scrutiny, but that it is living on borrowed time.   And that borrowed time may also be true for the racing industry as well.

The Stronach Group that runs California has undertaken a number of reforms to address the crisis.  Among the more controversial steps have been restrictions on the use of the whip and a gradual phase-out of the race-day medication Lasix.  It has also increased significantly pre-race veterinary examination protocols and is now requiring advance notice of morning works and pre-work veterinary reviews.  California’s regulatory body, the Horse Racing Board (CHRB), has been extensively involved in discussing and approving safety iniitatives.

While The Stronach Group and the CHRB are addressing both safety concerns and the increasingly negative perception of racing with imaginative and forward looking steps, the same cannot be said of its counterparts in New York.  NYRA is the parallel of The Stronach Group and the New York State Gaming Commission is the regulatory body akin to the CHRB overseeing horse racing.

New York experienced its own high-profile crisis with equine fatalities in the early part of 2012 at Aqueduct Racetrack.  Governor Andrew Cuomo directed an investigation by a panel of experts who came up with a 100-page Report looking at possible causes and recommendations for improvement.

One of the recommendations was that the regulatory agency “should expand its recently enacted out-of-competition testing rule” to include additional medications.  It is a recommendation Governor Cuomo specifically cited when he directed the regulatory agency to adopt it.  (Out-of-competition testing is not to be confused with the standard post-race drug testing that is commonplace.)

Out-of-Competition Testing (OCT) is universally accepted as a necessary component of any program to detect cheating in sports.  It is a tool used by the United States Anti-Doping Agency to catch cheats in cycling and track and field, and by the major team sport leagues in America.  Even the Ultimate Fighting Championship has an effective program.  Dr. Rick Arthur, the Equine Medical Director for the state of California, has said that without an out-of-competition testing program with teeth, you won’t have a real anti-doping program.

So how is New York doing?  I have been submitting public records requests for New York data going back to January 1, 2014.  More than five and one-half years later, New York has never identified a thoroughbred horse that tested positive in an out-of-competition test.  Never.

That may be because they do not conduct the unannounced surprise testing that is an essential component of an effective program.  New York’s Gaming Commission instead announces they will be conducting OCT on horses in the days before a Grade I stake worth a million dollars.  The lone exception to this was a low-profile trainer who had some negative media attention before the horses in his barn were tested.  (The treatment of low-profile trainers in contrast to the “super trainers” is a subject for another article.)

There is another matter that Governor Cuomo directed his regulatory agency to implement from the 2012 Task Force Report.  That would be a regulation governing the purse value in claiming races, or the “purse-to-price ratio” that I have written about several times.  Dr. Scott Palmer, DVM, who chaired the Task Force and is now New York’s Equine Medical Director, said:

 … there’s some very good research that’s shown that there is an increased amount of risk of catastrophic injury for horses in claiming races where the purse to price ratio is greater than 1.8 to one.  This is a very sound piece of scientific information …”

(The ratio compares the purse value to the claiming price.  A 1.8 ratio means that the purse cannot exceed $36,000 in a $20,000 claiming race,).

Palmer’s comment was made in a meeting of the Gaming Commission that caused me to wonder if I was hearing things correctly.  Because he was advocating for increasing the ratio over its then-level of 2.0.  So at a time when the nation’s public attention to racing was largely concerned with fatalities at Santa Anita, we had New York’s Equine Medical Director proposing a rule change contrary to that of his own Task Force (and the Governor’s explicit directive) that would lessen safety protections for horses and jockeys.

Over a five-week period beginning in August, three of the fatalities from racing at Saratoga and Belmont came where the purse-to-claim ratio exceeded Palmer’s standard of 1.8.

One can certainly argue that increasing the purse in a claiming race is not going to cause a catastrophic injury.  One can similarly argue that Lasix was not the cause of the fatalities at Santa Anita.  What would seem to be inarguable, however, is that horse racing has a serious public perception problem, and that the use of race-day medication and the Palmer-backed change is not going to convince a skeptical public that racing is doing everything it can to protect horses and jockeys.

While California has The Stronach Group and the CHRB acutely aware of the need for public support, it also has a Governor and a United States Senator who have already made public comments raising a possibility that horse racing could be abolished.  If New York’s racing leaders think Governor Cuomo will stand with them if the state begins to experience a similar level of controversy, it time for them to stop deluding themselves.

The Thoroughbred Daily News had a recent feature in which it asked prominent racing insiders to comment on a controversial proposal by The Jockey Club to regulate breeding.  A common thread of many responses was that the industry had more important issues, implicitly saying that the sport could only focus on one matter at a time.  Much to my delight, TDN is now asking “what would you do to improve the sport?”

The first respondent identified free past performance data as his top priority.  That’s right.  An industry is confronting a legitimate existential crisis and the most important matter is getting free PP’s into the hands of those who don’t want to spend $4 to get a racing card from The Daily Racing Form.

This is a level of obtuseness that may be the second biggest threat to racing’s survival.  The national racing organizations  –  with the notable exception of The Jockey Club  –  are bereft of ideas and are instead clinging desperately to maintain the status quo, even though that status quo has seen constantly declining metrics on the sport’s perception.

One such group, the National Horsemen’s Benevolent and Protective Association, recently put out a statement advocating the retention of Lasix on race day.  Then there is the Association of Racing Commissioners International  –  possibly in an effort to emphasize their cluelessness  – said that if the horse people who cared so much about their horses could not use Lasix, they would start injecting formaldehyde.  Seriously.

New York could join with California and start implementing safety-oriented steps  –  I would start with a vigorous program of Out-of-Competition Testing.  I candidly doubt that New York will take any meaningful actions.  It is yet another reason that those concerned about the future of the sport should push for adoption of the Horse Racing Integrity Act in the United States Congress.

 

 

 

 

New York weakens rule that protected horses – echoes from the 2012 crisis

Posted by noonante on January 2, 2019
Posted in: Horse Racing, Political/Social commentary, Politics. Tagged: , , , . Leave a comment

As a result of comments I received on my last post, I took another look at the 2012 report of the New York Task Force on Racehorse Health and Safety.  The Task Force was comprised of widely-respected racing professionals and chaired by New York’s current Equine Medical Director Dr. Scott Palmer.

The Task Force looked at the many factors that may have contributed to the 21 fatalities that occurred during racing at the Aqueduct meet of late 2011 and early 2012, with a view to identifying common elements that could be addressed by changing policies.

The Task Force looked at the “purse-to-claiming price ratio” that is the subject of a recent regulatory change approved by New York’s Gaming Commission and the topic for a hearing tomorrow.  As was stated in the earlier post, the Task Force determined that an existing ratio of 2.0 was too high to advance safety, and recommended adoption of a 1.6 standard approved by the American Association of Equine Practitioners.  Despite that recommendation, the 2.0 rule remained in effect.  The purpose of the new regulation is to allow ratios that exceed 2.0.

The Report identified the ratios that were in effect for 17 of the races in which there were fatalities.  (Nineteen of twenty-one fatalities were in claiming races.)  In only two of those 17 races did the “purse-to-claiming price ratio” fall at or below the 1.6 standard.  In ten races, the ratio exceeded the 2.0 requirement of the regulation that is being revised.  The Task Force concluded:

“All of the horses raced during a period of extraordinary claiming activity with elevated purses disproportionate to the value of the horses.”

Among the concerns raised in my prior post about the revised regulation is that the proponents of it  –  “various interested parties” according to the Commission’s General Counsel  –  have not been identified.  One suspects that NYRA’s Racing Office might be one.

During the 2012 crisis over fatalities, the Racing Office was identified as a possible culprit because, at that time, it could ignore a decision by a veterinarian that a horse should be scratched.  The Task Force concluded that the Racing Office’s goal of increasing field size “establishes a potentially critical conflict of interest.”  It went on to add that “field size, or the economic impact of a scratch, must never be a consideration when … [assessing] a horse’s suitability to race.”  (Emphasis in Report.)

The Gaming Commission is operating secretively, so we do not even know the proponents of this change or what their motivation is.  There is nothing in the public record to suggest that New York is not returning to the mistakes identified in 2012.  If economic considerations are paramount  –  as suggested by Dr. Palmer  –  and driven by field size, as we can only speculate, the outlook is not good for equine safety.

But the public has an opportunity to see the government agency charged with equine safety and integrity in operation tomorrow at the public meeting of the Gaming Commission.  There will supposedly be a discussion of comments I submitted on the proposed regulation change.  It can be viewed on their website on Thursday at 11:00.

 

New York weakens rule that protected horses

Posted by noonante on January 1, 2019
Posted in: Horse Racing, Political/Social commentary, Politics. Tagged: , , , , . 3 Comments

Update:  After completing this post, the Gaming Commission announced it would hold a meeting to discuss policy issues I had raised in comments to the regulation.  Their meeting is scheduled for Thursday, January 3 at 11:00 a.m. and can be seen on the Commission’s website.

The New York State Gaming Commission has weakened a rule they enacted to protect horses from fatal racing injuries.  The policy was adopted in April, 2012, in response to a rise in the number of catastrophic breakdowns that occurred in late 2011 and early 2012 at Aqueduct Racetrack.

The regulation established the minimum claiming price for which a horse could be entered in a race.  “Claiming races” are one of the most inscrutable parts of racing for the uninitiated.  A claiming race is one in which a horse can be bought for a specified amount before the race is run.  It is the lifeblood of racing, and the purpose of setting a claiming price is to attract horses of comparable ability.

Aqueduct experienced a sudden influx of cash for purses when the revenues from Video Lottery Terminals started coming in.  This resulted in significant increases in purses, including for claiming races.  As an example, a horse valued at $7,500 that had been running in a race with a total purse of $15,000 might now be entered in one where the total purse was $30,000.  (The winner generally gets 60 percent of the purse, second gets 20 percent and so on.)

The Gaming Commission’s predecessor adopted an emergency regulation in April, 2012, requiring that the claiming price be at least 50 percent of the race’s purse for a “purse-to-claim price ratio of 2.0.”  In the example from above, a horse could not be entered in a race with a $30,000 purse unless its claiming price was at least $15,000.

The crisis in fatalities resulted in the appointment of the New York Task Force on Racehorse Health and Safety.  It was a panel of widely-respected racing figures chaired by Dr. Scott Palmer, now the Equine Medical Director for the Gaming Commission.

The Task Force investigated the possible causes of the fatalities and made a number of recommendations. Their Report was universally praised, and has been considered a model of steps to improve the safety of the equine and human athletes participating in the sport.  New York implemented a number of the recommendations and has now seen a reduction in racing fatalities at its tracks.

The “purse-to-claim price ratio” was one of the factors examined. The Task Force concluded that the policy of entering a horse for a claiming price significantly below the purse value was an “imbalance contribut[ing] to perceptions that horses were being entered in claiming races beyond their level of competition and forced to perform to the point of serious injury or death.”

The Task Force did not consider the April, 2012 regulation of a “2.0” ratio adequate protection for the horse, and instead recommended the more stringent standard advocated by the American Association of Equine Practitioners:

“Accordingly, the Task Force believes that the purse to claim price ratio should be no greater than 1.6, in which the value of the horse is approximately equal to the winner’s share of the purse, and that the Rule should be amended accordingly.”

Governor Cuomo agreed with the Task Force’s determination on the 1.6 ratio, explicitly citing it when he issued a statement ordering implementation of the Report’s recommendations in September that year.  Despite the Governor’s order, Dr. Palmer seemed to have a change of heart and wrote a memo three days later in which he decided that the 2.0 ratio was sufficient, citing economic considerations that might put New York at a disadvantage with competing racing jurisdictions. The 2.0 ratio was not changed.

Dr. Palmer is now of the view that even a 2.0 ratio could be higher.  He wrote a memo outlining steps New York has taken to enhance equine (and human) safety.  He convinced the Gaming Commissioners that the 2.0 rule could be relaxed if a track has implemented increased safety measures.  Even though the weakened rule was put out for public comment and has now been approved as a permanent regulation, the Gaming Commission has refused to release the Palmer memo that was a key factor in the Commissioners’ deliberation.

Dr. Palmer acknowledges that there are no magic solutions that will eliminate all risk for thoroughbreds in training or racing. His 2012 memo references “degrees of risk aversion.” This appears to be a central theme in his approach to the regulatory change proposed in 2018.

In his remarks at the Gaming Commission meeting in September at which the proposed rule was approved for public comment, he recognizes that changing the rule will increase the risk for horses. At one point he stated:

“I always thought that if we were going to take away one protective factor, what do we have to take the place? What are we going to put back in that is going to protect these horses?”  (Transcript by Commission.)

What Dr. Palmer stated at this meeting is that a program of “Out of Competition Scrutiny” – not to be confused with Out of Competition Testing – would identify certain horses whose record might indicate an increased risk of injury. It is a worthwhile effort, relying on factors that have been identified as increasing the risk of racing.  The notion of a “profile” to identify at-risk horses has become widely accepted  –  it was one of the topics in the 2012 Report of the Task Force.

The new Regulation requires that a relaxation of the “2.0 ratio” can only happen if a race track requests an exception:

“The commission shall not approve such a request unless [the track] has implemented increased measures to ensure close examination of the competitiveness, soundness and safety of each horse entered in such a race.”  (Emphasis is mine.)

The regulation is clear.  “Each horse” in a race must under scrutiny if an exception to the 2.0 rule is to be made.  But that is not how Dr. Palmer described the change to the Commissioners at their September, 2018 meeting.

This is the colloquy between a Commissioner and Palmer from the Commission’s Transcript:

Commissioner:  “[s]omeone will be taking clinical history of each horse for each claiming horse?’

Dr. Palmer:  “No.…”

Commissioner:  “Is it before each claiming race?”

Dr. Palmer:  “No, it is one time….”

Dr. Palmer is the expert upon whom the Commissioners rely.  He has said he is responsible for monitoring the effect of the revised regulation.  But he has also said that he will not be adhering to the explicit language of the regulation.

This approach by Dr. Palmer appears to be “trading” one program to reduce risk for another that increases risk.  This implies that there is a certain level of risk that is acceptable. While I think most people realize that risk is an element of horse racing that cannot be eliminated completely, I question whether there would be widespread approval of a transactional approach that balances a track’s economic considerations with equine and human safety.

At their September 24 meeting, the Commissioners focused exclusively on the increase in risk and the ability to bring a halt to the new regulation if equine fatalities approached an “unacceptable” level.  While Dr. Palmer said there would be requirements on the tracks seeking an exception to the 2.0 ratio, he did not provide any examples of what those standards might be.

Just as troubling, however, is that this is a change, according to the Commission, being advocated by persons who were not identified, and neither testified before the Commission nor submitted public comments in support of the rule.  In his September 13, 2018 memo to the Commissioners, the Commission’s General Counsel stated that “[v]arious interested parties have requested the Commission to consider adding flexibility to the existing rule….”  Similarly, the Commission’s Executive Director referred to “[v]arious interested parties” having requested a rule change at the September 24 meeting.

There was a time when the “purse-to-claim” ratio was viewed as an important safeguard for protecting horses. The Task Force rejected the notion that a 2.0 ratio was adequate, instead insisting on a 1.6.  Governor Cuomo considered this to be such a significant step that he explicitly ordered adoption of a 1.6 ratio when he released the Task Force’s findings in 2012.

Now, however, “various interested parties” who are not identified have recommended a weakening of that safeguard.  The Commission has refused to release the memo that supposedly supports the change.  The apparent rationale are tradeoffs intended to mitigate the increased risk even though the standards that will be utilized have not been specified.  And it appears the Commission will not even be complying with the revised regulation.

This is a secretive process and not the way an accountable and transparent government operates.  More significantly, however, it is certainly not a way to bring about changes that will affect the safety of racing’s equine and human athletes.