Thoroughbred racing at Colonial Downs unlikely for 2014, focus turns to 2015

After more than six months of negotiations and several attempts to come to an agreement, there may be no thoroughbred racing at Colonial Downs in 2014.

In a June 23 meeting delegated by Virginia’s Racing Commission (VRC), Virginia Horsemen’s Benevolent and Protective Association (VHBPA), and Colonial Downs, efforts to save the season remained at an impasse. Now, VRC is mandating that both VHBPA and Colonial Downs come to an agreement for the 2015 season by July 1.

VRC chairman J. Sargeant Reynolds Jr. opened the meeting optimistically, speaking on three options. Option one consisted of continuing with a 5-week, 25-day meet, with option three relegating to executing just exclusive meets. However, it was option two, cancelation of the season, that ended up coming to the forefront.

“I think it’s awful we won’t run in 2014, but it is what it is,” said the disappointed chairman.

VHBPA executive director Frank Petramalo Jr. commented about the problem with a thoroughbred season starting this late.

“A lot of horsemen have shipped their horses elsewhere,” he said. “We would like to have raced because it’s desirable, but it’s more realistic that it won’t happen.”

Commissioners agreed that thoroughbred racing is needed, but said all parties involved will feel the financial impact. Currently, VHBPA has lost a total of $1.9 million, with $337,000 of that amount to support VRC, and $191,000 for localities. Colonial Downs president Ian Stewart said the track has loss nearly $2 million in revenue.

“From the county’s point of view, this is the signature industry,” said Stran Trout, a commissioner on the VRC board and a resident of New Kent. “I used to say that I lived in the county with the horse track; now I say that I live in the county with the closed horse track.

“What I’m hearing from both parties right now is that there is no solution, and that’s scary,” he concluded.

At center of the stalemate remains discussion on the number of weeks and racing days. And that stalemate continued over towards recommendations for the 2015 season. Horsemen are asking for an eight-week, 24 days of racing for next year. However, Stewart said he would not agree to it, obviously agitating Reynolds.

“I don’t see why you can’t have an eight-week season next year when you save money this year by not running,” commented Reynolds.

“The losses of the whole operation will exceed the positive revenue stream,” replied Stewart, who stood firm on his stance.

Commissioner Clinton Miller vocalized his thoughts on the subject, maintaining that owner Jeffrey Jacobs has a responsibility to maintain as the licensee.

“The reason for allowing betting in Virginia is to help the agribusiness industry and hopefully make a profit,” said Miller. “Jacobs has a responsibility and if he can’t do it, he needs to surrender the license.”

Commissioner D.G. Van Clief said no matter how much time was given for VHBPA and Colonial Downs to work out an agreement, it was time for VRC to take action.

“The same arguments we heard this morning were the same we heard last month and the month before,” he said. “I think we are absolutely out of time.”

Attending horsemen and owners spoke up during public comment period, adding that the fallout from action not taken is having a direct impact on them.

“The little guys are losing money,” said Kathryn Costley, a new owner. “What is my incentive to stay in the business if I come into this type of dynamic?”

VRC commissioners went into closed session, drawing up a resolution with mandates towards both parties involved. Specifics of the resolution include a 24-day meet over an eight-week period, with three days specifically set aside for Colonial Downs to have high quality racing for the 2015 season. The resolution also says Colonial Downs is to offer stables and training for the horsemen.

If terms are accepted by July 1, off-track betting facilities that were closed last December would reopen. But if you ask District 4 supervisor Ron Stiers, the outlook is very bleak, at best.

“It’s the same as it’s always been; there’s too much greed and not enough common sense,” said the frustrated Stiers. “This isn’t just affecting this district, it’s affecting the entire county.”

Stiers added that several residents have done business with both Colonial Downs and horsemen at the track through training services, and offering feed such as hay for the horses. Now, those businesses may have to look elsewhere for new income.

“It appears right now that the focus is on saving 2015,” said New Kent county administrator Rodney Hathaway. “We are disappointed that there won’t be any racing in 2014, but we’re hopeful for 2015.”

According to the 2014-15 New Kent fiscal budget, approximately $402,000 in local revenue will be lost due to Colonial Downs not operating. County departments have already felt the impact along with New Kent’s school system.

No additional meetings between all three parties have been scheduled, but VRC expects to receive a signed contract by July 1.