JC / Railbird

NEHBPA

“Sink or Swim”

Lynne Snierson on the latest in the Suffolk Downs-NEHBPA dispute:

The general counsel for the New England Horsemen’s Benevolent and Protective Association said on the afternoon of Feb. 28 that negotiations have reached the “sink or swim” point on a contract resolution for 2011. The dispute is now in its sixth week.

“We have been in discussions today and they will continue on into the night,” said Frank Frisoli. “Suffolk talked to us and addressed the board (of directors). We are at the sink or swim point right now. I expect to be able to comment more on where we are tomorrow (March 1).”

Also noted: Massachusetts bettors crowded Rockingham this past weekend.

Posted in Industry on February 28, 2011 / Tagged #suffolkdispute2011, Massachusetts, Negotiations, NEHBPA, New England, Suffolk Downs

The Offer That Isn’t

While waiting on the next twist in the ongoing dispute over the 2011 meet between Suffolk Downs and the NEHBPA, I’d like to return to a point in the modified offer approved by the horsemen on Friday that didn’t make much sense. The group agreed to race 80 days, as the track proposed, if legislation to approve a race date reduction passed — if it didn’t, the horsemen agreed to race 100 days for the same total purses offered of $8.25 million.

The problem is that such a structure would bring average daily purses down to $82,500, the same level at which Suffolk calculated the horsemen’s February 10 proposal, based on revenue projections, and the reason the track rejected that offer — the figure was too close to the daily average of $79,000 being paid during the latter portion of the 2010 meet. Both sides agree an average in that range is too low to support racing, suggesting that the horsemen are now trying to have it both ways — the group concedes the 80 days, and the likelihood of the legislation it cannot agree to not oppose succeeding, even as it attempts to compel the track to run 100 days.

“The NEHBPA voted to accept a proposal that was never offered,” said a source close to the discussions. Suffolk specifically told the NEHBPA, said the source, that the $8.25 million was not in play for 100 days.

Which raises questions of what the horsemen’s gambit — characterized by the source as “cynical” — is meant to accomplish, and where discussions go from here. “The framework of this deal is essentially solving problems for the future,” NEHBPA lawyer Frank Frisoli said on Friday. That’s a hopeful assessment, one track management clearly doesn’t share. “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,” said Suffolk’s vice president of marketing and communications, Christian Teja, responding to the offer. “We will assess all our options, including legislative relief independent of the HBPA.”

Suffolk doesn’t need the horsemen’s approval to pursue its legislative agenda; the track doesn’t even need the horsemen’s agreement to run fewer dates. The state-mandated minimum is what’s required for the track to simulcast — Suffolk could announce a 30-day meet on Monday, so long as it was willing to cease simulcasting. As might be expected, the horsemen disagree. Because the MRC awarded Suffolk 100 days this year and it has been simulcasting, “The NEHBPA firmly believes SSR is now obligated under state law to conduct a live meet of at least 100 days of live racing,” the group notes in its February 25 proposal before agreeing to reduced days.

The situation is now quite uncertain. Suffolk offered $8.25 million for 75-80 days, plus five more days if handle was near what was it was last year by June 30, and a 50-50 simulcasting revenue split. It all hinged on neutrality — on the NEHBPA agreeing not to oppose the legislation that would make 80 days possible. The horsemen agreed on the 50-50 split, which they had sought from the start, and because they could not accept the no-opposition provision, to $8.25 million for 80 days, if a bill passes, or 100 days, which many still hope to run. It’s an impossible position, nodding to the economic and political realities of Massachusetts racing, but asserting a demand that nothing change.

Posted in Industry on February 27, 2011 / Tagged #suffolkdispute2011, Massachusetts, Negotiations, NEHBPA, New England, Suffolk Downs

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.

Posted in Industry on February 25, 2011 / Tagged #suffolkdispute2011, Horsemen, Massachusetts, Negotiations, NEHBPA, New England, Suffolk Downs