Odds On Racing - Harness Racing

Horsemen & Tracks in talks for 2006 Contract

December 5, 2005

December means one thing to most Illinois harness horsemen—what is in store for 2006?

With a contract for 2006 yet to be signed between racetrack management and horsemen, negotiating meetings between the two groups have just begun.

Horsemen and management typically spend the month of December bantering back and forth over issues such as recapture, nine-horse fields at Maywood, and detention times. This year is no exception.

While the racetracks were allotted a specific number of racing program at each venue, the horsemen—represented by the IHHA (Illinois Harness Horsemen’s Association)—will cannot race on January 1 of each year unless there is a signed contract between the two entities.

At a general horsemen’s meeting on Sunday, December 4 in Tinley Park, a group of about 100 horsemen gathered to listen to IHHA Board members discuss current racetrack proposals for 2006. The major issue continues to be recapture.

"Obviously, we have to show unity and have to have a signed contract by January 1," IHHA President Marty Engel said. "It doesn’t appear that we are going to get any help by the IRB (Illinois Racing Board) or by the folks in Springfield (Illinois legislators)."

Recapture is a legislative provision that was introduced along with full-card simulcasting in 1995. It allows Illinois racetracks to recoup their losses on live handle in accordance with the authorization of full card simulcasting from other states.

The recapture amount is 2% of the decrease of Illinois handle on Illinois races from 1994, and the recapture monies allocated to the racetracks are deducted directly from the horsemen’s purse accounts.

"Right now we have an 80 to 20 split on recapture," Engel said. "The tracks have deferred 80% of the recapture money through the end of this year, and we’ve been responsible for paying them 20% of it. For 2006, we’re asking for a 90/10 split, with the current ‘sunset’ clause for three years that we currently have in place."

The IHHA also would extend half of the un-reimbursed recapture amount from the 2003 contract that was deferred, and would make payable that amount only if there was revenue from electronic gaming (such as slots at the racetracks) or if the tenth riverboat license came to fruition before December 31, 2008.

Purse recapture for 2006 will total $5 million, Engel said.

"The tracks don’t want a sunset clause in there," Engel said. "But we feel it’s very necessary. Just like this year. If the tracks would get slots between now and December 31 (2005), the horsemen would owe them $11 million. As it stands with the ‘sunset’ clause, that money is negated as of January 1, 2006. The tracks want us to owe the recapture money ad infinitum."

"The racetracks are also wanting to charge the horsemen stall rent," IHHA Vice President Dave McCaffrey said. "There’s also been talk of them wanting to close the backstretch at Maywood Park, which concerns me, because if we let that happen, then Balmoral’s backstretch is next on the chopping block. Where are all of those horses supposed to go?"

Besides these points, the horsemen and the racetrack owners have a number of more trivial issues to deal with as well. Another meeting between the tracks and the IHHA is set for Wednesday, December 7.

"We hope to get this settled as quickly as possible," Engel said. "However, it’s paramount to us that we keep to our guns and not settle for less than what we currently have in this year’s contract."

For more information, check out the IHHA website at http://www.harnessillinois.com/