Want to “turn” Thoroughbred racing around…look to NASCAR

I walked into a store recently and saw hanging on a rack by the checkout counter a four inch by four inch piece of painted metal. The cardboard top which attached to the plastic wrapping that held the piece of metal read “Real NASCAR Sheet Metal, from a Real NASCAR.” The price for this small coke can flimsily piece of metal was $20.00, I asked the clerk when it became my time to pay if they sold very many of those and he replied “we can’t keep em in stock.”

That piece of metal, that little piece of painted aluminum, really struck a cord with me. My thoughts began to ponder why was it that while Thoroughbred racing is facing a crossroads of historic levels, NASCAR is selling pieces of metal as fast as they get to the store. The thought of how NASCAR got to where it’s at and could it translate to Thoroughbred racing began to consume me, as such I’ve spent many hours studying their market model and it’s potential translation.

Twenty years ago NASCAR racing was considered the poor cousin of Indy racing and essentially an outlet for “rednecks” (not my term, and no offense meant) to watch “souped” up cars go in circles around a track, now it’s the number two sport in America.

Here are some numbers which may catch your attention: according to “Kotler…Defining Marketing and the Marketing Process” NASCAR races are seen in 150 countries and in 23 languages by 75 million people, the average fan spends nearly $700 per year on NASCAR related items, about 240,000 people attend the Daytona 500, and over 250 big-name sponsors pay more then 1-billion per year for sponsorships and promotions, let me say that again – 1-Billion dollars a year - not bad for something once considered to be a sport for “rednecks” (again not my term).

Comparing TV ratings from the Breeders Cup and the Daytona 500 we find that according to BloodHorse magazine last years Breeders Cup event garnered a rating of .7 where ratings for this years Dayton 500 according to speed forum had a comparatively whopping ratings share of 10.2, and guess what folks TV ratings equate to corporate dollars.

So how did NASCAR do it how did they go from a preverbal bad joke to the number two sport, they did it through marketing (here’s where the TA DA sound should be) they reinvented themselves and sold that product to a now enamored public.

The first thing they did was sell the excitement, the speed, the sounds, the sights. Then they sold the drivers, they took their helmets off and had essentially glamour shots made of them, the effect was instead of looking like dirty astronauts they looked glamorous and cool (which also helps explain why almost half of NASCAR fans are female). They then sold the corporations and the media; well actually at this point the corporations and the media sold themselves, essentially getting into bidding wars to advertise and or broadcast their product.

Ok I know what you’re thinking, car racing and horse racing are completely different. Cars stick around, horses come and go, how can we ever sell this sport the way they sold that sport. Simple they didn’t sell Chevys, they didn’t sell Fords, they sold a sport. Sure there was some brand loyalty especially among the die hard fans, but that wasn’t what they sold, they sold excitement.

There is nothing more exciting then a stretch dual to the wire, anyone who says they would rather watch four hours of cars going in a circle compared to two minutes of intense fighting to the wire doesn’t understand Thoroughbred racing. The excitement of watching a horse purchased for $9,500 come out of no where to win the Kentucky Derby compared to watching cars drive in circles for four hours is like comparing a flash of lightening to watching paint dry.

The people of America want excitement, they crave it and in a downed economic time they need it. Ed Myers of River Downs once told me that the excitement of Thoroughbred racing was so addictive it was like “liquid heroin.” We have the product, we have the niche, if the people knew about what we have to offer they would crave it, we just have to tell them about it.

Interview with: Alex Waldrop President, CEO NTRA

In December 2006, the membership of the National Thoroughbred Racing Association appointed Alex Waldrop as president and CEO. A past president of Churchill Downs and a former partner in the Kentucky-based law firm of Wyatt, Tarrant & Combs, Waldrop brought a wealth of industry experience to the NTRA, a coalition of horseracing interests and associations that includes owners, breeders, trainers and racetracks.

OOF: I was encouraged by the creation and mission of the NTRA Safety and Integrity Alliance which genuinely takes the steps to show that you are working to change the conditions and the ultimately the public perception of Thoroughbred racing, as such what are your feelings as to what the Alliance has accomplished so far?

ALEX: I am extremely proud of what the Alliance has accomplished thus far. The industry has rallied behind the Alliance and its mission to implement meaningful, uniform safety and integrity reforms. To date, five racetracks have been accredited by our Alliance inspection teams, five more tracks are in various stages of review and some 45 tracks have expressed interest in being reviewed over the next two years. Most gratifying of all has been the level of commitment from all industry stakeholders – tracks, horsemen, breeders, owners, trainers, jockeys, regulators, veterinarians and even fans - to make the objectives of the Alliance a reality. While much work remains before we have full implementation on a national level, the results to date are very promising.


OOF: I have been touting heavily for the past year that if Thoroughbred racing doesn’t create a strong governing body then congress will. The current undertakings and government intervention within the auto companies, banks, insurance companies (the list goes on) I believe up holds my theory insofar that the government has demonstrated if they have the power to do so they will intervene and take control, and with the Interstate Horseracing Act they have the power. I have also been heavily touting that the NTRA should be the organization (reference my article “Big Brother is Coming”) to take the reigns of control, that said how is the NTRA addressing the possibility of government intervention and the wresting of absolute control?

ALEX: Due to the industry’s reliance on pari-mutuel wagering as our principal source of revenue, it is highly doubtful that the individual racing states will ever willingly cede control of horse racing within their own states. It’s also highly doubtful that the racing industry would be regulated expertly or efficiently by the federal government. I also don’t think that most elected officials in Washington believe that the federal government should be involved in governing our sport. Our sport operates best when regulated by those who have strong local connections to and expertise in, and an appreciation for, the complex agribusiness that is the racing industry. All of these factors point to state regulation.

OOF: I have extensively studied the NASCAR marketing model in order to determine how the sport changed its public perception from one of populated by rednecks (not my term) to the heavily corporate endorsed number two sport in America and then thereby how said model could translate to Thoroughbred racing. I have found the major underlying factor of the change in public perception can be traced to the creation of a strong governing body. Once this was accomplished said body set about as a unified organization to woo corporations, networks and would be advertisers to become a part of the NASCAR team. The result has become a complete transformation into as previously stated the number two sport in America. I believe if the NTRA were to become the governing body and followed a similar marketing model the sport of Thoroughbred racing could be brought to what it once was. What are your thoughts as to how this may translate to the future of Thoroughbred racing?

ALEX: I’m not sure that racing will ever see a single governing body a la NASCAR for reasons stated above. But that doesn’t mean we can’t be governed in a strong, uniform way. The work of the NTRA Safety and Integrity Alliance is already moving the needle in that direction, in part by working cooperatively with the states. If we can achieve this goal, I believe that marketing benefits will follow.

OOF: One last question, what do you believe will be the impact of the Triple Crown races from a marketing standpoint whereby a Colt that sold for $9,500 ran away with the Derby, followed by a Filly winning the Preakness?

ALEX: The biggest marketing impact comes from the terrific story lines we saw this year, which translate into increased, broader public interest. The long shot nature of Mine That Bird’s victory put our sport immediately on the cover of Sports Illustrated, and then Rachel Alexandra’s Preakness win took things to an even higher level by bringing in a great many more casual fans including, of course, many females. Suddenly the sport was making the rounds from The Tonight Show to Letterman, which was terrific for us. Our challenge as an industry going forward is to convert as many of these casual fans into committed, year-round fans as possible.

Williams says Senate may end session Friday without considering slots

So read the headline, but it should have read Senate President David Williams is an idiot. By making statements like “the slots bill, you know, you can stick a fork in it, it’s done” or “we need to get out of town before some people in the House get in trouble,” when asked to explain that one he said, “you know what I mean by that” (uh… no I don’t) he has proven himself to be the biggest dolt since Homer Simpson (by the way look at his picture remove the hair and glasses and you know what they look remarkably similar humm…).

This is nothing more then politics at its worse the guy is obviously more worried about keeping his rear-end in office then taking care of his state. Apparently he looks at the horse industry as the proverbial “red headed step child” that he can kick around how ever he wants and still get away with it. But here’s what the short-sighted idiot still doesn’t seem to realize the millions of dollars that the Thoroughbred industry pumps into the Kentucky economy today doesn’t mean it will be there tomorrow.

All he would have to do to see an example of that fact is to look north to Ohio. At one point it was a place where people in neighboring states flocked to in order to find jobs. But a funny thing happened along the way the politicians became fat and sassy, when other states began offering businesses tax breaks to move their companies Ohio politicians balked at matching the offers and guess what…they moved. Dayton a once thriving city is a veritable ghost town with probably a third of the city boarded up, and the largest building in the city in foreclosure.

So go ahead state Senator Williams and play political games and watch the fallout you cause, but hey you won’t be in office very much longer anyway.

I'll never own a major sports franchise, but I can own part of a horse and maybe, just maybe..

I’ve heard that in various forms a lot lately as I talk to people about Thoroughbred racing. Now don’t get me wrong I’m not talking about the average every day person you may meet on the street. No, I’m talking about a sports fan, someone who loves sports, someone who understands the “thrill of victory and the agony of defeat” and loves them both (ok…the victory part’s a lot more fun but you know what I mean).

It never ceases to amaze me how when I speak with people their facial expressions predictably and invariably change. As I begin talking about my love of Thoroughbred racing it’s the snarled nose and “oh, you like horse racing” response. But as I tell them about the thrill of racing, when I paint the picture of the excitement it generates, the intense highs, and yes lows their facial expression turns to interest and even a little excitement. When I talk with them about horses like John Henry, Funny Cide and now Mine That Bird noticeable excitement grows; but it’s when they learn how partnerships / syndicates are affordable and within their budget, the light bulb goes off (I can literally almost see the thing light up above their head) and their facial expression becomes one of passion it’s then when the inevitable response is blurted out “I'll never own a major sports franchise, but I can own part of a horse and maybe, just maybe”..

These individuals, these sports fans are what I believe is an untapped avenue of new blood, new owners and most importantly new money into the sport. At a time when the horse industry is suffering at historical levels can we afford to ignore this new market. Or, is it time to “think outside the box” to take that leap and go after this market. I’m out there every day working for Thoroughbred racing as the song says “sowing the seeds of love” because I believe the long term benefits are tremendous. I believe in Thoroughbred racing, I see it for what it is, what it was and I envision what it can be, it just takes difference makers and people who care about getting it there, I’m working on it every day, are you?

Thinking Outside the Box

Brains are pattern recognition systems which allow us to recognize objects and situations very quickly. However, pattern recognition can work against us and make us fixed in our thinking - making it difficult to be creative. The good news is that we can use lateral thinking techniques to break out of old ways of thinking and boost creativity…i.e. “Thinking Outside the Box.”

The customary model of attracting new buyers is through means such as “word of mouth”, being written about in thoroughbred publication, or even advertising in said publications. This has worked well and if continued will be an adequate method of attracting new business. But there’s and old saying “if you do the same thing, expect the same results”, if you’re happy with adequate results then - stop reading. However if you would like to learn how to, by using demographics and technology, discover the potential for dramatically increasing buyers – read on!

By using demographics to pin point the type of individual who may be attracted to becoming Thoroughbred owners and then technology to attract them I have found an untapped market which could be akin to a literal gold mine. But before you read any further you may want to reread the first paragraph because in order to fully grasp the following concepts you’re going to have use “lateral thinking.”

According to fantasyplayers.com (1) around 16 million Americans play fantasy sports across major online fantasy sports sites. From a financial stand point, “64% of fantasy football consumers make over $75,000 and 10% of fantasy football consumers make over $150,000 per year - demonstrating financial wherewithal to become syndicate partners. From an intellectual demographic stand point 73% of fantasy football consumers hold a college degree or better – demonstrating the intellect to understand the intricacies of horse racing and betting. From an age standpoint, 76% of fantasy football consumers are between 18 and 49 years old – demonstrating by their relative young age their income has the potential to show large increases. According to a study by the Fantasy Sports Trade Association, "the people who play fantasy are more into sports, more hard-core than the average fan” – demonstrating they would be more likely to be interested in Thoroughbred racing. These people fit the demographics to potentially become owners the trick is how to we turn them from fantasy owners into real ones.

Three words, “Behavior Targeting Marketing” which as the title suggests literally targets individuals based upon their behavior. In this case as the 16 million previously mentioned individuals search for fantasy information an ad pops up directing them to click on it. The ad campaign is only limited to the imagination to those who write it – but lets say it’s something like “turn fantasy into reality.” Current market trends show a three percent rate of return on this type of specialized advertising. Using these figures a full blown ad campaign designed to reach all 16 million individuals would generate a hit rate of 480,000. If then there by 1% of these individuals decide to become owners that would mean 4,800 (ok I know that math was easy) new Thoroughbred owners (what would that do for your bottom line), the potential result would be an unlimited and uncapped end number. The determining factor would undeniably be the marketing campaign and if the individuals by same were enticed to become owners.

This type of campaign would be expensive and in hard economic times you’re probably asking yourself can I afford to do this, the reality however is you should be telling yourself I can’t afford not to do this. Here are two examples of how marketing and more specifically a quality marketing campaign will generate sales.

One: General Mills vs. Post – during the years leading up to the “great “depression these companies were neck and neck in sales, both advertised heavily and were always looking for new ways to attract new customers. However when the depression began Post pulled back on their marketing reasoning money was tight and to survive they would need as much of it as possible. Inversely General Mills plowed ahead with their marketing campaigns and put as much money as they could into them, the result are obvious to this day!

Two: The infamous Pet-Rock, in 1975 millions of people, during tough economic times, spent money to buy a “rock.” Why, because of marketing, their commercials targeted a specific audience and were broadcast at times to maximize same such as the Saturday Night Live viewers. The campaign itself then caught people’s attention; it excited them and drove them to buy the product. The end result being that within six months the inventor, Gary Dahl, became a millionaire.

The moral of the story is this keep doing the same thing and receiving adequate results (and take the risk of becoming a Post, or worse), or “Think Outside the Box” and take the chance to reap the rewards.

If anyone would like help in any capacity to devise this type of campaign I would be glad to consult with you in any manner, simply email me at oddsonfavorite@live.com.

FREE RACEHORSES!!…certain conditions apply…

Sound crazy…it’s not, Under Section 179,of the Economic Stimulus Act of 2008 and extended into 2009, horse owners who purchase horses or other business property and put them into service in 2009 are allowed to expense up to $250,000.

How it works…Suppose a horse business, or individuals wishing to form a horse business, purchase $250,000 of depreciable property in 2009, including (for example) $200,000 for horses. That business could then write off the entire $250,000 on its 2009 tax return…hey…what was the title to this blog…oh yeah!

Certain Conditions Apply…For a horse to be eligible, (or property) it cannot have been used for any purpose before it is purchased. The IRS regulations give specific examples in the case of horses as follows:

On April 1, 2000, E acquires a horse to be used in E’s thoroughbred racing business. On October 1, 2003, F buys the horse from E and will use the horse in F’s horse breeding business. The use of the horse by E in its racing business prevents the original use of the horse commencing with F. Thus, F’s purchase price of the horse does not qualify for the additional first year depreciation deduction.

But wait, there’s still more…If the capital outlay exceeds $250,000 the business is allowed to depreciate the remaining balance as an example:

A horse business in 2009 pays $500,000 for a colt / filly to be used for racing and $50,000 for other depreciable property, bringing total purchases to $550,000. The young horse having never been raced or used for any other purpose before the purchase (as prior discussed). The business would be able to expense $250,000 (as explained above), deduct another $150,000 of bonus depreciation (50% of the $300,000 remaining balance), and take regular depreciation on the $150,000 balance. Now I’ve never been a wiz at math but if you subtract $550,000 from $550,000, lets see that comes to…hey…what was the title to this blog…oh yeah!

Ok, great but…why have these facts not become the focal point of a marketing campaign to potential new owners. A review of the TOBA web site reveled under “Business Issues – Tax Issues” that there is no mention of the above tax laws. In fact under “depreciation” TOBA sites the pre Section 179 laws “Horses may generally be depreciated over three to seven years. Longer periods of depreciation may be elected, and always apply in the case of foreign-based horses. Racehorses over two years old and breeding horses over 12 are depreciated over three years; all others are depreciated over seven years.”

Soapbox time…I have long held to the fact that if the general public knew the thrills and excitement Thoroughbred racing and more distinctly ownership brings they would flock to it. The truth is you don’t have to be a King to be a part of the “Sport of Kings”. Partnerships and syndicates offer an enormous opportunity for individuals to become owners in this great sport. The underlying and essential problem in this equation however is the general public has no idea as to how intensely exciting the sport is and therefore no interest in the possibility of becoming owners. Much less that ownership is affordable to a tremendous amount of the population think of all the fantasy sports players (a future blog) that if they were educated to the possibilities of ownership and indoctrinated to the sheer excitement of seeing their horse race (and especially win) would flock to it. I have done the demographics on fantasy players there are millions of them, a high majority being college educated with incomes which would support their being able to become initial partners and long term sole owners. But, unfortunately and sadly for the sport until “some” organization educates them (there are many venues besides massively expensive marketing campaigns to do so) then this lost segment will remain so, and Thoroughbred racing will be the worst off for it.

Mistakes of the Past?

While studying the history of Thoroughbred racing I came upon an interesting comparison of the market as it is now and how it was a hundred and seventy years ago.

In the late 1820 to early 1830’s speculative fever reached a high point across America the prices of everything soared and money poured into businesses across the nation from the coffers of banks and individual investors.

Horse breeders borrowed heavily from banks and investors to expand their acreage and stables. They brought in so much money from selling each crop of horses that every year they doubled and tripled the number of foals they produced.

However when the economy collapsed in 1837 breeders found themselves trapped with an oversupply of a product no longer in demand. The effect within the industry was predictable as across the board prices plummeted and the business of selling horses took a nose dive.

Although by no means is the Thoroughbred industry the only business which has replicated errors of the past, just look at the daily bail outs to prove that, but the comparison is eerily similar and illustrates well the old saying that “if you don’t heed the mistakes of the past you are bound to repeat them”.

Bob Feld - Bongo Stables

OOF: With 3 Breeders Cup winners, national prominence by The Blood-Horse Market Watch and two of the first 24 yearlings you bought or 12% winning Graded Stakes races – obviously you have a good eye for horse flesh, what are some of the things you look for?

BOB: There are two things that seem to jump out at me when a horse first comes out of the stall and walks towards me and they are balance and athleticism. After that I like a strong shoulder. I am very particular about conformation even though I know good horses have faults. I tend to lean towards perfect though and I am constantly learning what I can live with and what I can't

OOF: When we were looking at horses together at the Fasig-Tipton sale in July you depicted one horse as having a “racy” look to him, how would you describe a “racy” look?

BOB: Looking at horses is so esoteric. It is such a personal thing. People tend to land on the same horse at the sales but it really comes down to personal preference. Racy is definitely a "look" but it is hard to describe. Everything about the horse flows. It has "good lines." To break it down and make a simple analogy I think most people looking at a Chevy Corvette sitting next to a Ford Fiesta would say that the Corvette looks racier.

OOF: The story of the filly Debie Ginsburg is wonderful, I saw a promotion about her before a race on HRTV and it honestly touched me what influenced your decision to name the horse after Debie?

BOB: Debie and I had been friends for years. She worked for the California Breeders' magazine and did a lot of her work and research in their library that is open to the public. It is a very nice library that I have spent a lot of time in doing research20myself. Debie LOVED the game and it was her life. She asked me one day if she could interview me about how I name my horses. I told her absolutely. Years had gone by and she never interviewed me. There were always other stories taking precedence and I teased her relentlessly about it. When she unexpectedly passed away at such an early age I thought it would be neat to honor her with a horse in her name. I thought, let Debie Ginsburg the horse write the story, which she has. When she won her debut it was one of the great days of racing for me!

OOF: You have been involved with pretty much all aspects of the Thoroughbred business from hot walking to working with your brother who trained, to selling shares with Team Valor, to now owning and running your own stable of horses through Bongo Racing Stables, what has been the most difficult and the most rewarding?

BOB: The difficulty is always finding clients. It is a never ending search and you c an never have enough it seems like. The most rewarding part is easy. Watching a horse I bought at auction win. To me there is no feeling in the world like winning a race with a yearling purchase. When you are fortunate enough to have a yearling purchase like Balance, who won three grade 1's and went into the starting gate for the Kentucky Oaks as the favorite, it is a great feeling of achievement.

OOF: Which horse in your stable would you consider the best at this moment Rush Rush, Majormotionpicture or another?

BOB: There is no doubt in my mind it is Majormotionpicture. He is the most talented horse I have ever been around. He is amazing. He does everything so easily. His stride is incredibly long and smooth. I liken him to Tiger Woods when he joined the tour. I felt in my heart Tiger was the greatest player that ever lived. I remember arguing with my friends fathers who watched Arnold Palmer and Jack Nicklaus in their primes. They had a "show me" an attitude which is proper and natural. Until Tiger started breaking their records it was all conjecture. Talk is cheap in this game and I just hope Majormotionpicture gets a chance to show everyone what I know in my heart. I am looking forward to a fun ride with him in 2009.

OOF: One more question, how’s the weather in Southern California?

BOB: Believe it or not as I type this it is pouring down rain in sunny California! I am still wearing my shorts though :)

Profiles In Racing Presents: Barry Irwin of Team Valor International

Barry Irwin has lived a life most people could only dream of; a one time fiction author Barry followed his heart in 1969 to pursue a career in the Thoroughbred in the industry. His travels have taken him from America to England, Ireland, France, Italy, United Arab Emirates, Hong Kong, Canada, and South Africa; where he uses his innate gift to find and develop talented race horses from some of the world’s most unlikely places. Barry Irwin is truly an American success story.

OOF: Big news at Team Valor with Rhyad a 2-year old colt you purchased -from what you've written about him he seems to have a lot of heart and talent and you believe he can challenge for the Triple Crown races.

Barry: “I hope so he has a lot of speed that’s for sure, we don’t how far he can run“.

OOF: What do you think his chances are and how are sales going with him so far?

Barry: “Very good, very good, we’ve sold about 70% so far so that’s good. He kind of like a King of the Roxy, or a Visionaire type of horse that probably could be best at a mile. But any three year old they can do that a mile and an eighth, at least when their three after that I don’t know. I think he’s a pretty good horse, otherwise we wouldn’t have bought him“.

OOF: Your method of attracting owners is unique - you do little to no advertising - little to no marketing - and except for standing in the winners circle you have little public exposure - yet you’re one of the top companies in your field - what is the secret to your success?

Barry: “Well, I think it’s a factor that we’ve been out there long enough, people know who we are you know they know how to find me. I did advertise at one time and I had what I consider very poor results, the kind of people you get from advertising aren’t really the kind of people you want. I’m not really interested in impulse buyers, I’d rather stay at the size we are now and not have ten jillion horses and have the right kind of people as my partners than for example a West-Point or something like that. I want guys that have a certain amount of knowledge themselves. I want it to be a task for them to find me to search me out if anybody goes to those lengths that shows that their interested. You get a guy who calls off an ad you have a high pressure salesman call and put the squeeze on them generally those are not the guys you want as partners; they weren’t committed to the enterprise and the first sign that something’s going wrong they to want to jump ship and this day and age it’s a long term project and you got to be committed“.

OOF: I’ve followed Team Valor since some years back after reading the book “Race for the Triple Crown” where the author stated you’re philosophy for buying horses was to look at:

1) Ability / Heart - as you need both
2) Conformation / Soundness
3) Pedigree

To me this made a lot of sense - yet if flies in the face of what is generally considered conventional wisdom which is to study pedigree first then judge the other attributes - what influenced to think outside the box?

Barry: “ I don’t really know, I just know the way I like to do it, when I buy my own horses for my stalls the first thing they've got to have the right kind of look, they’ve got to look like athletes and if they do their going to do something. If they have the pedigree so much the better, but if you have an athlete it doesn’t make any difference what their pedigree is your going to get some performance out of them. Buying a horse like Cot Campbell does just because of pedigree and excepting faults because of the pedigree just seems to me the opposite way to do it. I just have my own way of doing it, when I go to South Africa the people there can’t figure out what I’m doing, basically they are living in the sixties. When I go down there I don’t have a catalog I have someone bring the horses out and walk them, if I like the way they walk I look at them from the side and go through the whole little routine. They can’t understand it, those guys can’t wait to get a catalog and they pour over it, and I never even look at a catalog, you know I might just to see how much the horse is going to cost me”.

OOF: That makes a lot of sense to me if you look at what a horse can do, how it can move, how it can walk and then look at the pedigree, like you said to see what you could buy it for and potentially what you could re-sell it later for.

Barry: “The way I look at things, if you took about 100 dice and put them in a beaker and rolled them out, each time you rolled them out you’re going to get a different number combination. Even though the pedigree says one thing all it is are names on a page, the real thing that counts is what is the results of that mating, what does it look like, how does it move, and does it look like it is an athlete that’s all it’s about to me. Look at Big Brown who cares about his pedigree but he’s a fantastic horse. Besides pedigree costs an lot of money and I don’t deal with people who want to spend a lot of money“.

OOF: An owner of one of the larger Thoroughbred farms once told me you were “a mover, a shaker and a deal maker” in your opinion how accurate is that assessment?

Barry: (chuckle) “Oh…I don’t know, I think I’m somewhat of an enigmatic type character not really too many people know me, because I kind of stay to myself. I mean I’ve lived in Kentucky for ten years now and most of the people that live here and are in the horse business they think I live in California. I mean I don’t really socialize that much, I don’t go to the races usually unless there is a big horse running or one of my own horses. I think there’s a lot of chat about me based on here say. I used to be more of a wheeler dealer when I was a bloodstock but what I do now I do a lot of writing to keep my clients informed and I think that takes most of my time, and I'm on the look out for a hot prospect and that’s it. Whether I’m a deal maker and all the other kind of stuff, yes I am, but do I go around looking to make deals like a bloodstock agent all the time, not really”

OOF: I personally believe despite the economy there is still an untapped market of potential new owners…

Barry: “I tell you right now people that are in the horse business are scared sh-----s”.

OOF: I understand, in fact I’ve done quite a lot of research and understand that the market is a cyclical thing it’s a pendulum it will swing back and forth. The same thing happened in the 1980’s and even in the 1830’s it’s just following the same patterns over and over again.

Barry: “Well I think this time it’s different and I think the reason is the types of concepts that led to this is of such great…it’s so big that I don’t think anybody really knows how it’s going to play out yet. I’ve been through the 73, the 87, 92 I’ve been through those things but they were just reverberations. I actually made the most money in 82, 83, 84 the country was in a recession interest was, I was borrowing money from Bank of America at 23%, yet I made money each of those three years. There was inflation and people wanted to buy intangibles and horses were tangent“.

OOF: Looking back with the benefit of 20 / 20 hindsight and having suffered the pains of the learning curve would you have done anything different and why?

Barry: “I don’t think so, I think I have chosen my lot, and there’s good and there’s bad about it, the reason I do what I do is I’m extremely independent I don’t like working for one person, I’ve had many opportunities to do that. I enjoy dealing with wealthy people but extremely wealthy controlling people I don’t deal well with that. I know what I like to do, I have a certain expertise, and if people appreciate it and want to participate in it with me God bless them, I’d love to have them. But what I don’t want is one heavy handed guy who doesn’t know anything about my business basically telling me what to do. What I do is I have a whole bunch of people who appreciate what I do, we’ve gotten along fine and I enjoy what I’m doing. I consider myself a very creative guy in terms of what I like to do in the horse business, I do think out of the box. There is a certain number of people who like that and some that don’t, the one thing about the horse business is if you have some talent no matter what type of horses you like to buy, or your personality there is a group of people that are going to be attracted to you so you’re going to do fine“.

OOF: At the July Fasig-Tipton sale I looked at over 100 horses, I’ll put myself on the line somewhat and say one of the horses I liked was a filly you bought and named Cup Racer - how is why doing and when will be see her on the track?

Barry: “I don’t know she had real big stifles when I bought her, and they only bother her a little bit. She was the only horse I bought in that sale that was a little bit of a gamble from a soundness point of view but so far so good. Her action has been a little bit high you don’t know how these horses are going to move until you put them into training. Of the horses we bought she’s little bit of a disappointment just from a movement standpoint because of her knee action. But she is very powerful and she acts like she can run”.

OOF: I liked her look, she had that look in her eye that she wouldn’t back down.

Barry: “I liked her too, that’s why I bought her even though she had two stifles that were hanging off her”.

Big Brother is Coming

The book 1984 (published in 1949) presents an imaginary future where a totalitarian state controls every aspect of people’s lives. The state called Oceania is ruled by a group known as the Party its leader and dictator is Big Brother.

While the premise is far fetched using the current and recent decision making processing of the Geo-Political landscape as a model I believe I can with much certainty predict the following:

1) On or about April (as Derby fervor rises and becomes topical) Congress will restart hearings into the workings and dealing of Thoroughbred racing
2) Unless a unilateral governing body has been created or one has stepped forward and began to develop deep inroads towards the process of creating said governing body then
3) Congress will using the Interstate Horseracing Act of 1978 take control and oversee Thoroughbred horseracing

Congress has not veiled this reality in any fashion in fact during the hearings of this past June various members essentially stated the above facts verbatim. However the ramifications of these threats do not seem to have made much of an impact upon the racing community, yes steroids are no longer to be allowed after the first of the year, yet little else has seemingly been presented in order to ward off an effectual hostile take over by Congress.

The ramifications of a potential take over would be magnanimous to and among the racing community as not only would bureaucratic hegemony reign over the industry but controlling individuals would be appointed by political means and whims potentially without consideration to experience knowledge and or love of Thoroughbred racing as a whole. Traditions generally speaking could be rendered outdated and useless under bureaucracy as administrators may determine despite long held history what was now to be important and useful based upon their own political agenda.

I however also foresee an alternative to this Orwellian future whereby I believe if an intensive marketing campaign is aggressively sold to the current power brokers within the horse racing industry we would wrest control away from the Government creating a scenario in which an internal organization such as the NTRA would become the governing body within Thoroughbred racing. Despite past prior and current failed attempts to undertake such an endeavor there is now a ticking clock resonating over the industry. The simple fact is changes are coming and I believe we need to passionately market a slogan such as “who do you want overseeing the future of Thoroughbred racing – a bureaucrat – or a horseman”.

The realization is simple and foreseeable if Thoroughbred racing does not unite and work together to create a unilateral governing body – Congress will!