Leap of Faith

• Email
• Print
• Tweet

By Robert Clay -- A "leap of faith" is a term that was used by many as we solicited early support for the concept of the National Thoroughbred Racing Association. Of all the parties at the table, the horsemen, owners, and breeders took perhaps the largest leap. After all, they would not reap the near-term benefits that racetracks would enjoy--such as advertising matching funds and more meaningful combined purchasing power. The return on investment for the owners and breeders would be long-term--the growth of the sport, increased popularity for horse racing, and an increased demand for their product.

From a financial point of view, the horsemen, owners, and breeders have carried the largest part of the load, keeping the faith that we are a stronger industry with one united voice than with many separate voices. Our commitment has been unfailing. Unfortunately, there are a few racetracks which have put self-interest above the good of the whole.

The NTRA has maintained a commitment to its original mission, and corresponding business plan, while always being open to suggestions, questions, and concerns.

To a remarkable degree, the original plan (developed in 1997 after months of discussion and debate, with input from dozens of persons with stakes in the future of this industry) has been followed, has been implemented, and has been proven to be fundamentally sound. The real problem is that a few racetracks never supported the basic concept of sharing control of a national association with others who have a vital interest in the Thoroughbred industry.

A primary focus of the original business plan was to raise the public profile of Thoroughbred racing on television through expanded coverage of live racing and through the creation of a cooperative advertising campaign. Both of these initiatives have been successfully implemented.

Since day one, the NTRA policies and programs have been (and still are) subject to oversight by the most broad-based and representative governing structure our industry has ever adopted. There are term limits for members of the board of directors, no executive committees, super-majority requirements for key votes, and regular financial disclosure of audited financial statements.

Also since the early days of the NTRA, many of our current critics insisted that NTRA dues be gradually reduced, after three to five years, through new revenue generated by NTRA programs and initiatives like interactive wagering, sponsorships, group purchasing, licensing, etc.

The original plan also read: "Beginning with ODS/TVG, there are significant opportunities for the NTRA and the industry to work closely--using third party expertise (and capital)--in the interactive area." The NTRA took this step with TVG, which has spent $100 million to promote racing, is in over five million homes thus far, and has paid over $2 million to the NTRA in sponsorship and marketing fees.

Last year, Magna Entertainment Corp. (which owns seven tracks) posed questions about NTRA governance, democracy, and regulation. The NTRA board responded to each request by 1) expanding its board; 2) changing its bylaws to allow members to be chosen by constituency groups; and 3) appointing and funding a Task Force on Economic Regulation, headed by Bob McNair. These actions were consistent with our business plan, which emphasized, "The structure, strategies, and plans of the NTRA are highly likely to continue to evolve over time and need to be sufficiently flexible to adapt to inevitable changes in the marketplace, including technology, government policies, international opportunities and the like."

Recently, a few people in our industry decided to no longer participate in the process. The timing of their decision is an indication they are more interested in destroying the unity than growing the pie.

As an owner and breeder who believes we are stronger as a united industry, I say to those defectors, if you disagree with specific NTRA policies, have the courage to participate in the process. But don't claim to be surprised that NTRA management is carrying out the plan that you had (and still have) every opportunity to influence and shape ... a plan that could just make a success of us all.

ROBERT CLAY is owner of Three Chimneys Farm near Midway, Ky., and a member of the NTRA board of directors.

• Email
• Print
• Tweet