NEHBPA
Unaminously Accepted
Could the dispute be nearing an end? Late Thursday, the NEHBPA board voted to reject a proposal for the 2011 meet made by Suffolk Downs. “As it was written,” said Frank Frisoli, clarifying that the group could not accept the offer with its request that the horsemen not oppose state legislation reducing race dates. “We can’t abrogate our members’ right of free speech,” said the lawyer, explaining the horsemen’s opposition to the provision. “And we are not going to take any position supporting [Suffolk’s] legislative agenda.”
Modifying the offer to exclude that request, the NEHBPA board unanimously accepted the track’s proposal, agreeing to total purses offered of $8.25 million and an equal simulcasting revenue split. The horsemen have even agreed to race 80 days if the legislature approves a bill allowing Suffolk to run fewer than 100 days. If days are not reduced, then the horsemen will race for 100 days for the same purses.* “We’ve essentially accepted their position,” said Frisoli. The modified proposal has been submitted to Suffolk, and will be published on the New England horsemen’s website at some time. Until it is, I’ve posted a copy of the press release (PDF) here.
More on today’s developments from Steve Myrick in the Thoroughbred Times.
4:45 PM Addendum: What horseplayers want to know: When do the signals return? And, because I’ve commented a few times before that the horsemen have not acknowledged the effect of the dispute on racing fans, I have to point out that the NEHBPA proposal does just that on page two: “There is no doubt that this impasse has also inconvenienced the patrons who wager and support horseracing.” Appreciate the mention, even belated.
6:15 PM Update: Don’t head to Suffolk on Saturday expecting Aqueduct. Responding to the offer from the horsemen, Suffolk Downs vice president of marketing and communications Christian Teja said, “We’ve made several concessions in the interest of having a quality meet this year, including keeping the barn area open for 30 weeks and paying over $100,000 in daily purses at the request of the NEHBPA. The increase in purses was contingent upon one condition, neutrality on legislation to reduce the number of days required to simulcast, that the NEHBPA is unwilling to meet. We will assess all our options, including legislative relief independent of the HBPA.”
2/26/11 Addendum: Suffolk Downs, NEHBPA “far apart on a key issue,” reports Lynne Snierson. “In my mind, we’re very close,” Frisoli said yesterday.
*If the horsemen were to race 100 days for $8.25 million, however, that would bring the average daily purses down to the level both sides agreed was too low to support racing. I assume they’re gambling on the race day reduction.
What’s Next?
That’s the question for the Massachusetts racing community now. After days of intense discussions, and with time running out, a source reports that the NEHBPA board rejected the latest proposal from Suffolk Downs for the 2011 meet by a vote of 5-4, with one abstention, in a meeting on Thursday night.
Before the meeting, NEHBPA counsel Frank Frisoli told the Blood-Horse, “[Feb. 25] is the day for us to get back to them, and they said after that their position is likely to change. Ours would then change as well.”
What change there will be to their positions is uncertain. The horsemen have been seeking 100 days of racing, purses totaling up to $10.6 million, and an equal split of net simulcasting revenue. In its proposal of February 18, a copy of which was provided by a source, the track offered 75-80 days of racing, plus five additional days if a target for handle was hit by June 30, and total purses of $8.25 million. In later negotiations, Suffolk also reportedly agreed to the 50-50 simulcasting revenue split — a significant concession.
However, the track’s offer was made with the caveat that if blocked simulcasting signals were not restored by this weekend, days and purses could be cut — and the issue of days appears to be the cause of the scuppered deal. For the track to race fewer than 100 days, the state-mandated minimum for simulcasting, the legislature would have to pass a bill allowing a shorter meet. Suffolk’s offer was premised on the horsemen not opposing such a bill.
With the dispute now in its fifth week, and simulcasting handle at Suffolk down almost 45% this month due to the blocked signals, the situation — which seemed to be approaching a resolution — has taken a worrisome turn.
7:45 AM Update: Lynne Snierson has more on the days:
“We will let Suffolk petition the legislature to reduce the number of days of racing,” Frisoli said. “The one thing we won’t do is support their petition to race fewer than 100 days. If the legislature agrees to reduce the number of days, then we’ll race whatever days the state requires.”
Negotiations will continue today in an effort to reach an agreement.
10:45 AM Addendum: Coming back to a couple of points — the average daily purses Suffolk is offering range from $103,000 for 80 days to $110,000 for 75 days. The horsemen were given the option of choosing which structure they preferred. Either way, the average meets or exceeds the daily purses proposed by the horsemen to the track on February 10, in which purses were estimated at $95,000 to $100,000, based on an equal split of available revenue, assuming revenue remained level with 2010. That seemed a risky assumption, considering the downward trend in Suffolk’s handle, and it was on that basis that track management turned down the offer after calculating that purses would probably run $82,500 per day — not much more than the $79,000 daily that was being paid at the end of last year’s meet and an average for which the horsemen said they could not run this year. On that matter, all agreed.
Days are a trickier issue. In the offer made by Suffolk, management wrote, “our proposal requires that the NEHBPA not oppose the legislation and not oppose a request to the [Massachusetts Racing Commission] that the requirement be reduced to match the number of days set forth in our agreement.” In the quote Frisoli gave Snierson after Thursday’s meeting, he said, “The one thing we won’t do is support their petition to race fewer than 100 days. If the legislature agrees to reduce the number of days, then we’ll race whatever days the state requires.” This reads like very small matter of semantics — Suffolk does not ask the horsemen to support, it asks that they not oppose. It would seem that the horsemen’s counsel is saying that the NEHBPA won’t oppose a bill reducing days, which is the concession Suffolk seeks, but his statement does not indicate agreement. I’ve attempted to contact Frisoli for clarification and hope to have more on this point this afternoon.
2:45 PM Update: Clarified! In a conversation this afternoon, Frisoli said that the NEHBPA board has unanimously agreed to accept Suffolk’s proposal, with one change. Steve Myrick of the Thoroughbred Times has the story.
Proposal Revised, Talks Continue
In a lengthy meeting on Wednesday night, the NEHBPA board discussed a revised proposal for the 2011 meet submitted by Suffolk Downs yesterday, said horsemen’s counsel Frank Frisoli in an email this morning. Another board meeting is scheduled tonight to continue deliberations. “The NEHBPA remains committed to reaching an equitable and immediate resolution of the impasse,” wrote Frisoli. Updates, as available.
1:25 PM Addendum: More from the NEHBPA (PDF). According to the posted statement, the revised proposal “reflect concessions … that Suffolk Downs was previously unwilling to make.” That doesn’t include the 100 days the horsemen have sought. Suffolk’s previous proposal was for 75-85 days.
4:15 PM Update: Time is running out for a deal, reports Lynne Snierson. Dates and money remain at issue. Frisoli told the Blood-Horse, “I see a framework for agreement here [in the latest counterproposal put on the table by Suffolk], but I do not know if our board will approve it.” The group has until the end of the week. Asked earlier today if the board is feeling pressure, Frisoli said, “I believe both sides realize the urgency of reaching a resolution.”
It’s Not Critical
But there is some urgency to ending the Suffolk Downs dispute:
“We hope to get this resolved soon because the options moving forward become less and less attractive,” said Tuttle. “The loss of these simulcast signals is devastating to business. The longer it goes, the less likely we are to be able to conduct a live meet of any quality or duration.”
The NEHBPA board meets tonight to continue its discussions.
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