JC / Railbird

NEHBPA

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.

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

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.”

Posted in Industry on February 24, 2011 / Tagged #suffolkdispute2011, Massachusetts, Negotiations, NEHBPA, New England, Suffolk Downs

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.

Posted in Industry on February 23, 2011 / Tagged #suffolkdispute2011, Massachusetts, Negotiations, NEHBPA, New England, Simulcasting, Suffolk Downs