PART 1 – LETTER FROM STEVE LYM (WEG) TO HORSEPEOPLE
Starting in 2014, WEG has made substantial changes to its racing program.
An Ontario Sire (OS) purse bonus of 40% in all open races was introduced (except for horses that have been claimed and racing below $20,000). The bonus projection was expected to be approximately $2 million annually based on 2013 results. The purse bonus paid was $3.6 million in 2014 and $4.4 million in 2015.
As the purse expense relating to the bonus has far exceeded expectations and affordability, the bonus will need to be reduced approximately $1.4 million for the 2016 race season.
After reviewing various options, the reduction to the OS bonus will be reduced to 30% in Allowance races and Maiden Special Weight (MSW) races and to 20% for all other eligible races. Based on projections, the forecast for the OS bonus in 2016 is $3,094,110. The OS purse bonus will be monitored closely during the season, with the potential for adjustment if required.
WEG is NOT planning any changes to the base purses of our overnight races in 2016.
As declining horse supply becomes a growing factor, WEG can no longer support a parallel program of open races and restricted OS races.
Therefore maiden allowance OS races for three-year-olds and older will be eliminated. MSW OS races for three-year-olds will be offered until midsummer, and continue all season for the two-year-olds.
In 2015 Woodbine dropped the NW3 OS category, but added an optional to the NW3 $20,000 and $40,000 Claiming. For 2016 the optional portion will be dropped leaving the races as nw3 for both the $20,000 level and the $40,000 level.
The overall projection is for 1,148 overnight races, similar to the 2015 total, with approximately the same base purse expense. As external factors continue to impact the makeup of the horse supply at Woodbine, further adjustments may be necessary during the 2016 season and in future years to meet the needs of all involved in racing at Woodbine.
WHAT DOES THIS MEAN?
ADJUSTMENT OF ONTARIO SIRED/BRED PROGRAM ANNOUNCED BY WOODBINE
Woodbine Entertainment Group (WEG) needs to trim the books and has made some adjustments to the Ontario-sired program to recoup the cash
The Ontario HBPA and CTHS met with Woodbine and were informed of the changes to come, apparently the lesser of any other tough options.
Certainly this news is not great for breeders in the province or owners and trainers with a lot of Ontario sired horses but there were not a lot of other ways to go. Thoroughblog does encourage horsepeople to write a letter to the Blog with any other ideas: Purse cuts across the board for all races instead?
With the current changes laid out by Woodbine, owners, breeders, trainers of Ontario-sired horses are worried that these changes will make it tougher (impossible?) to do well in the business.
A closer look, however, and you can see that the series has been very strong and very, very good for a lot of people.
In fact, because Ontario sired WON a lot more races in open company in the last couple of years than was projected, the program is over-budgeted.
Yes, Ontario sired horses can, and do win races over open company all the time. Even in the U.S.
Where can you go with a state-bred horse and race for a $45,000 purse against maidens?
Where can you race a horse for that purse and it wins with a 40 Beyer Speed Figure?
Unfortunately, this is not promoting good racing and bettors do not embrace it as much as they may a mixed field of maidens. (see more on this fact below).
If you look at what has happened in Louisiana for example, you surely do not want that to happen to Ontario. The racing is mostly for La-breds, the racing is weak and uninteresting for bettors and look at how many Canadian outfits no longer go there because of the poor racing?
If you make Woodbine all about the Ontario-sired racing program, the repercussions will be drastic.
Let’s strip it right down to the basic fact: if there is no wagering on races, there are no races. There is no horse racing anywhere if people are not betting on it.
Bettors, in particular the big players, are in front of rows of TVs and watching and wagering on races from all over the world. Woodbine has been a very good product in recent years but the continued use of too many Ontario-sired races will not attract bettors’ dollars.
Bettors DO NOT simply bet large fields – they have to be interesting races, not 9 of 10 horses that were beaten 25 lengths in their last race.
Yes, this is not great news for the breeders who have not had much in the way of good news in recent years. It is worrisome for the yearling sale in the fall as all the horses are Canadian bred and mostly Ontario-sired.
But will the big buyers of Ontario-sired horses really stop buying? Will they go to the US and buy instead?
Will breeders really send their mares to the US to be bred? Or will they sell their mares and get out?
The industry needs to be run like a business and that means doing business decisions that will not be popular.
Breeders and owners feel blindsided to be sure and fear the future plans of WEG include eliminating the OS races all together.
If members of the industry can come up with a different idea to trim the money, please write to Thoroughblog and I will share with Woodbine and HBPA.
TOP 100 BREEDERS AWARDS RECIPIENTS
AS AT NOVEMBER 30, 2015
BREEDER AMOUNT
Buttigieg, Paul 100,000
Chiefswood Stables Limited 100,000
Colebrook Farms 100,000
Everatt, James & Janeane & Everatt-Meeuse, J. Arika 100,000
Fipke, Charles 100,000
Paradox Farm, Inc 100,000
Sam-Son Farm 100,000
Spring Farm 100,000
Tall Oaks Farm 100,000
Schickedanz, Gustav 89,100
Minshall Farms 88,550
Adena Springs 86,200
Di Giulio, Frank Jr. 83,275
Bear Stables Ltd. 82,675
Andrews, Denny 81,850
Graham, William D 77,775
Kingview Farms 71,425
Hill ‘N’ Dale Farms 63,025
Hayden, Christine 50,350
Lister, Richard L. 49,575
2015 changes in OSS program:
The Ontario-Sired 40% in Open Races Purse Bonus introduced in 2014 was an enormously successful racing incentive program. HBPA and WEG have agreed that this lucrative purse bonus program should remain in force for year 2015.
However, last year’s Ontario-Sired runners in open races earned almost double the program’s budgeted totals. Therefore, HBPA and WEG have agreed to remove the Ontario-Sired bonus from open stakes race conditions in 2015. This minor program adjustment ensures the long-term financial stability of Ontario-Sired incentives without altering the positive effects on the overnights racing program.
HBPA and WEG are pleased with the enormous success of the Ontario-Sired incentives and we look forward to another successful year.
Woodbine Entertainment Group (WEG) and the Horsemen’s Benevolent and Protective Association (HBPA) today jointly announced changes to Woodbine’s Ontario-sired Thoroughbred racing program.
The restructuring offers substantial incentives and bonuses to horsepeople with Ontario-bred and -sired horses competing at all levels of the Woodbine “overnight” program. Specifically, a 40% purse bonus is now available to eligible Ontario-sired runners competing in “open,” unrestricted races.
“The new 40% Ontario-sired bonus stacked on top of the pre-existing 20% Ontario-bred bonus for eligible horses in open races has stunning implications for the province’s racing program,” said HBPA President, Sue Leslie. “Breeders with Ontario sires and horsepeople that are considering foaling Thoroughbreds in Ontario have tremendous financial incentive to do so with this reorganization of the Ontario Sires incentive program.”
An eligible Ontario-Sired/Ontario-bred runner in an open Maiden Special Weight event now runs for a total purse of $89,460 ($55,900 base + $11,200 Ontario-bred bonus + $22,360 Ontario Sired bonus).
The bonus program will be funded by adjustments in Ontario-Sired restricted allowance race conditions offered to horsemen daily on the 133-date Woodbine calendar. The Ontario Sired Maiden Claiming $25,000 class has been discontinued. The Ontario-Sired Non-Winners of 3 condition combines with the $40,000 Claiming NW3. And the Ontario Sired Maiden Special Weight and OS-NW2 purses have been moved to $45,000 and $47,500, respectively.
