The Jockeys’ Guild has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Louisville, according to an Oct. 12 release.
The release, distributed by a Louisville law firm, came 35 days after the Guild replaced resigning national manager Dwight Manley, a former sports agent, with industry insider Terry Meyocks.
“Like many other entities in the U.S., the Guild has struggled with the high cost of member health claims," said Meyocks, who took over when Manley resigned for personal reasons after 13 months in the position. As part of his contract, Manley loaned the Jockeys' Guild $500,000 to help it avoid bankruptcy.
"In looking at all of our options, we have decided that this is the best way to deal with this and other issues facing the Guild,” Meyocks said. “We hope that declaring Chapter 11 will give the Guild some breathing room to explore solutions for its insurance and other difficulties."
The Jockeys' Guild has a history of financial troubles, but its difficulties began in earnest when it ousted former national manager Dr. Wayne Gertmenian in November 2005 due to alleged mismanagement. In a lawsuit filed against Gertmenian, the Guild also claims he took more than $1 million from the organization.