Purse Overpayment, Financial “Backstop” Demands And Race-Days Hamstring Horsemen’s Agreement Negotiations

[Wandering Eyes]

Despite efforts dating back to May, negotiations around an annual purses and race dates agreement between the Florida Horsemen's Benevolent and Protective Association (FHBPA) and Gulfstream Park remain at an impasse. The current horsemen's agreement expires Dec. 31.

This agreement is a federal requirement for a racetrack to conduct live racing and simulcast its signal nationwide.

Gulfstream Park, owned by The Stronach Group (TSG), is statutorily required to conduct a minimum of 40-days live racing to operate its casino. Without a horsemen's agreement, Gulfstream Park would still be able to conduct live racing—and presumably by extension, its casino—but it wouldn't be able to export its signal out of state.

Efforts Tuesday to reach representatives from both the FHBPA and Gulfstream Park were unsuccessful.

The TDN, however, obtained a copy of a rough transcript from a November 19 FHBPA meeting at which the status of the horsemen's agreement negotiations was front and center.

Key sticking points in these negotiations include a multi-million dollar purse account overpayment, the length of the contract and number of race-days.

In the crosshairs of this purse overpayment appears to be Florida's current summer racing program, which according to this transcript the FHBPA is fighting to maintain against efforts to scale it back.

At the same time, Gulfstream Park's corporate leadership has also demanded that Florida horsemen provide a financial “backstop” to support the track's operational budget, according to the transcript.

This is something the FHBPA has so far reportedly rejected on the grounds that they believe the track's racing operations are already profitable, according to two sources.

Gulfstream Park receives considerable financial support from the state. Earlier this year, Florida Governor Ron DeSantis signed into law a budget package that included $15 million annually for purses and facility maintenance for Gulfstream Park alone.

On top of that, Gulfstream Park also gets $6 million from the state to be used as purses and purses supplements specifically for Florida-bred and sired horses. Gulfstream Park is also exempt from having to pay its $2 million annual slot machine licensing fee.

These negotiations are playing out against a contentious battle between Gulfstream Park's corporate owners and the state racing industry's stakeholders.

Efforts by Gulfstream Park and Tampa Bay Downs to decouple the live racing requirement to operate their respective casino and card rooms were ultimately thwarted in the state legislature.

In August, Gulfstream Park filed a lawsuit suing the Florida Gaming Control Commission over the decoupling requirement. The commission subsequently asked the Florida state court to dismiss the lawsuit.

A new decoupling bill was introduced Tuesday, meaning the fight will spill over into the latest legislative session in Tallahassee.

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