Odds On Racing - Harness Racing

Relief Sought by Cal-Expo

January 13, 2008

As Cal Expo looks for ways to raise more revenue from its fairgrounds, the Sacramento Harness Association seeks more rent relief. Without a rent break, the association might not be allowed to continue operating Cal Expo's 10-month harness meet by the California Horse Racing Board.

Monday, the Cal Expo board of directors will consider giving the not-for-profit harness operator a $30,000 monthly rent reduction, from $210,000 to $180,000.

"I expect we'll be able to do it," SHA general manager Dick Feinberg said. "Cal Expo (officials) realize they can take a little less rent or get nothing."

Without rent relief, the SHA will be hard-pressed to have its license renewed by the CHRB at the board's Wednesday meeting in Arcadia. The association's temporary license expires Jan. 20, and CHRB chairman Richard Shapiro made rent relief a condition for a longer license, good through Aug. 2.

"It's a mandate of the California Horse Racing Board," said David Elliott, Cal Expo's director of racing. "Remember, (SHA) is a not-for-profit association, and we have no state subsidy; we're a business, too. But the (CHRB) still wants to see more black on the bottom line."

The SHA replaced Capitol Racing as Cal Expo's harness operator in September 2005 and is now in the final phase of a three-year lease. That contract originally called for a 76 percent rent increase – from $2.1 million to $3.7 million – for the third year, which started Sept. 1.

At the request of the cash-strapped SHA, the fair board in May voted to keep the rent at $2.1 million, or $210,000 a month, for one more year in hopes the SHA would find firmer financial footing.

Meanwhile, the harness horsemen themselves started considering other options, including moving to the Solano County fairgrounds in Vallejo.

"We obviously want to support the harness industry," Elliott said. "Our board absolutely wants to support (SHA), but we want the harness industry to support it as well. They're working very hard to get it done. I'm optimistic."

When reviewing the association's assets, CHRB commissioners were alarmed by the group's lack of funds. The SHA could come up with only $100,000 of the required $500,000 in financial guarantees to cover any obligations.

To that end, the SHA found an unexpected ally. Dr. Ed Allred, the owner of Los Alamitos Race Course, pledged to put up the remaining $400,000 – if the SHA could get rent relief.

That surprised some observers; Los Alamitos is Cal Expo's major nighttime rival, and Allred regularly battled with former operator Capitol Racing.

"We were able to get financial sureties from what some people may feel is an unlikely source in Doc Allred," Feinberg said. "But I worked for him for many years. He realizes the benefit to the night industry to have us racing."

While the SHA works out its rent and license dilemmas, the association stepped up its push for new customers.

Friday, the operator launched a weekly TV show, "Down the Stretch with Gary Gelfand," broadcast live from Cal Expo on Comcast SportsNet West. Hosted by longtime local sportscaster Gelfand, the one-hour show usually will appear at 8 p.m. Thursdays, beginning Jan. 24.

"This is a big step for us," Feinberg said. "We hope to reach new fans from Redding to Fresno."