
Howard Hamilton, ContributorWe continue this week looking at the challenges that have faced Thorougbred racing over the years. Last week we discussed the effect of the increasing levels of the illegal off-course betting activity on the viability of racing especially now with the state of the art racing, plant which had recently opened at Caymanas Park.
The only source of income available to thoroughbred racing is that derived from wagering. When the greater portion of this goes elsewhere then there can be no progress.
The four annual Sweepstakes which subsidised the promotions of both the Jamaica Turf Club and Knutsford Park Ltd. lost their appeal especially after the introduction of a National Lottery by the Government arrests of patrons and operators were frequently made there was no serious attempt to stamp out the practice and ensure that the betting dollar was channelled back to the promoting company. This became an increasing problem when racing was centralised at Caymanas Park in 1959 and the promoters were faced with additional costs for managing and maintaining a modern plant. Additional horses were needed,new owners had to be attracted, all of this called for additional money. This problem was exacerbated by the inability to increase the turnover to keep pace with increasing costs; a problem made even more critical by the expanding illegal off-course operators.
Cash flow problems
The increasing cash flow problems of the promoters led to the legalising of these off-course operators- 'bookmakers' in 1966 and the establishment of the Betting Gaming and Lotteries Act. Expectations that contributions would compensate for the loss in turnover were high. In fact, racing enjoyed a surge in activity up until 1969/1970 when problems of inadequate purses again became an issue. There were numerous meetings in an effort to get the contribution from the levy scheme increased from its original level of $100,000.00.
The Minister "expressed sympathy and stated that the order would have to be changed" Unfortunately no additional funds were forthcoming and in 1971 the Financial Secretary, Mr. P.W. Beckwith informed the promoters: "that the additional sum for augmentation of purses for 1970 for which they had applied would not be forthcoming as the minister could not approve the application".
The developments during that period make interesting reading. There were numerous submissions pleading the case for increased contributions from the Levy scheme. The Govern-ment held firm and placed a new twist on the negotiations stating there would be major amendments to the substantive law to permit the establishment of a Racing Commission and simultaneously the amendment to the regulation would be dealt with as he did not propose to make piece-meal amendments
Faced with this dilemma the promoters were unable to satisfy the needs of the stakeholders and owners refused to nominate their horses. Racing closed down for three weeks and in the following year we had a change of government.
The period following the 1960s marked a whole new era in thoroughbred racing. Knutsford Park Ld-the owners of Caymanas Park, sold out to theLai Corporation. A number of loans were taken out with First National City Bank who eventually changed their name to Citibank N.A. These loans were denominated in US$s and cash flow problems mounted.
New investment
Sir John Mordecai, the first chairman of the Jamaica Racing Commission formed in 1971, writing in the 1974 Racing Year had this to say: "Racing is a sport which nourishes best on a pervading expectation of surplus supporting new investment by breeders and owners, by inventive Promoters constantly pushing racing attractions which pull in the crowds, in turn producing a swelling on and off-course betting, the yield from which makes the whole spin accelerando." The promoters Knutsford Park Ltd were now bankrupt.
"The pressure found them empty of either resources or at the end, it seemed, even of the will to cope. An enormous outlay to improve the track surface produced only marginal results so that injuries to horses increased as did complaints to the Racing Commission. Heavy track maintenance units kept breaking down.
The condition of public facilities and of standards lapsed. The scores of gaunt black wallabo posts which had shored up the Grandstand cantilever roof since mid 1973 continued to haunt the turfites and block their vision. The Racing Commission investigation disclosed that the promoters involvement with their private non-racing activities precluded any real prospect of anything like the cash investment input so vital to sustaining much less developing racing to a healthy future". Those were the words of Sir John Mordecai back in 1974. Has anything changed?
Next week, we will continue the unhappy saga of the demise of the Sport of Kings.
Howard L. Hamilton, C.D, J.P is a former chairman of Caymanas Track Limited. He is the current president of Thoroughbred Owners and Breeder's Association. He can be contacted at howham@cwjamaica.com.