Colonial Downs, horsemen remain at loggerheads over thoroughbred racing season

Colonial Downs and the Virginia Horseman’s Benevolent and Protective Association (VHBPA) remain at an impasse over thoroughbred racing dates for the 2014 season expected to begin in June. Today’s (Thursday) meeting of the Virginia Racing Commission (VRC) failed to shed new light on the controversy that is now approaching two months old.

Last year’s contract between the VHBPA, which represents trainers and owners that race at the New Kent County racetrack, expired on Jan. 29. With the parties unable to come to a renewal agreement, Colonial Downs was forced by state law to suspend wagering on thoroughbred races at its eight satellite off-track betting (OTB) locations. Racetrack officials responded by temporarily closing four of the facilities. The other four located in the Richmond and Hampton Roads areas remain open but for harness race betting only.

The deadlock, meanwhile, has not gone unnoticed by New Kent County officials. At issue for the county is revenue generated by the track that helps fill county coffers, and with the OTB partial shutdown in effect, less money is coming in.

County administrator Rodney Hathaway today estimated that close to $402,000 has been lost so far, and the longer the stalemate between the racetrack and horsemen drags on, that number is expected to grow.

Hathaway said the situation is having a negative effect on the county’s budget-building process for the next fiscal year.

At the center of the controversy is the number of racing days. The horsemen’s group wants a meet in the 30-45 day range spread over 8-9 weeks, similar to meets held in the past. Racetrack officials, however, are pushing for fewer days in the 6-12 range covering no more than four weeks.

The VRC, meanwhile, has offered compromises by first proposing 25 days over five weeks and later amending to 21 days over seven weeks.

In the meantime, accusations have been flying and finger-pointing has dominated debate. Each side blames the other for the impasse, and mediation has failed to bring the two sides closer together.

In a March 15 letter posted by Colonial Downs president Ian Stewart on the organization’s website, Stewart says negotiations broke down when the VHBPA did not get the eight weeks of racing that horsemen requested. Stewart says the VRC 25-day/5-week compromise is acceptable, but VHBPA opposes the measure.

Colonial Downs’ preference is for fewer racing days that would increase purses, attract better horses, and provide fans with higher quality races, Stewart said. If purses remain at $200,000 per day as requested by VHBPA, the quality of the meet would be lowered and purses would diminish, he added.

VHBPA executive director Frank Petramalo Jr. countered with a letter on the horsemen’s group website heaping blame on Colonial Downs officials. He says VRC’s second compromise offer of 21 days/7 weeks is acceptable to horsemen, but charges that racetrack officials are opposed.

Petramalo claims that Colonial Downs’ desire to reduce racing days is merely an excuse so that the racetrack can cut expenses. He also accuses track officials of trying to pass off to horsemen several expense categories that are usually absorbed by the track. He is also suggesting that a management change at Colonial Downs could help.

Last summer, thoroughbred racing was reduced from eight to five weeks at the racetrack’s request, Petramalo says. Results, he says, were “disastrous,” resulting in substantial drops in wagering, attendance, and purses. But he adds that the track’s expenses were cut significantly.

Both parties have met several times in front of a mediator, but to no avail. At today’s VRC regular meeting, it was indicated that some progress has been made. Both parties were scheduled to continue negotiations in a private meeting later today.