Oak Tree Group Protests Cost of Holding Breeders’ Cup Races

Being the host track for the Breeders’ Cup might be considered a prestigious plum by many race tracks around the country, but the Oak Tree Racing Assn. would not like to stage the day again at Santa Anita unless there is a change in the financial structuring of the event.

Herman Smith, executive vice president of Oak Tree, said that when Oak Tree ran the seven Breeders’ Cup races worth $10 million last November, the expenses didn’t justify the benefits derived.

Smith and delegates from 49 other tracks in the United States and Canada are attending the annual convention of the Thoroughbred Racing Assns. here, meetings that will end tonight with the presentations of the Eclipse Awards at a black-tie dinner.

“From what I hear, the tracks that hosted the Breeders’ Cup its first three years lost a bundle, and I’m sure Oak Tree and Santa Anita did,” Smith said. “Different arrangements would have to be made before Oak Tree could consider doing it again in the next several years.”

Smith said that Santa Anita and Oak Tree shared in the Breeders’ Cup expenses last year. Oak Tree is a not-for-profit group that supports horse-related organizations and runs a five- or six-week season each fall, leasing the plant from Santa Anita.

“The track that hosts the races signs a contract with the Breeders’ Cup, so you know what you’re getting into in that respect,” Smith said. “But there are so many hidden costs. Parties everywhere--I’ve never seen an outfit that throws so many parties.”

In particular, Smith referred to a party the Breeders’ Cup threw in Los Angeles the night before the races, a $400-a-person, black-tie affair that featured Liza Minnelli. According to Smith, Minnelli received a six-figure sum to perform.

“The reason they had to charge so much is because their entertainment costs were so high, and then she wasn’t even there on time,” Smith said.

Minnelli could not be reached for comment.

Smith added: “Santa Anita and Oak Tree felt obligated to support that party--buying many more tickets than we might have otherwise--because we were holding the races and felt that it was the thing to do.”

The Breeders’ Cup at Santa Anita drew 69,000 fans, and they bet a North American record of $15.4 million. The first Breeders’ Cup was held at Hollywood Park, which drew 64,000 who bet $11.4 million, and the second in New York at Aqueduct, which drew 42,000 who bet $8.1 million.

The Breeders’ Cup also supplied the impetus for a 27-day Oak Tree season that averaged 28,600 and $5.6 million, figures that ranked second nationally in 1986, behind Santa Anita’s own meeting.

D.G. Van Cleif, executive director of the Breeders’ Cup, said: “I’m surprised that Oak Tree was unhappy, because they haven’t said anything to me. We have a contract that’s as thick as a book that participating tracks sign, and we’d like to think that it covers almost everything, but we’re also working in the direction of trying to improve the specifics as far as the host race track is concerned.”

Although details of tracks’ contracts with the Breeders’ Cup have never been revealed, it is believed that the host tracks turn over most of their profits to the Breeders’ Cup, a Lexington, Ky., group that includes prominent breeders from all over the country.

Purses are put up by the Breeders’ Cup, but in reality that money comes from breeders and owners, who must pay nominating fees to make the progeny of stallions eligible. These fees have been tremendously oversubscribed, enabling the Breeders’ Cup to offer other races throughout the year for millions of dollars in addition to the $10 million offered on Breeders’ Cup day.

Television rights money--reportedly in the vicinity of $1 million a year--also goes to the Breeders’ Cup. TV ratings have been disappointing for the four-hour programs, but the Breeders’ Cup still has a multiyear contract with NBC.

“Santa Anita got more out of the Breeders’ Cup than Oak Tree,” Smith said.

“Oak Tree was the official host, but it was Santa Anita that got the recognition. Nationally, no one knows about Oak Tree; all they know is that the races were held at Santa Anita.”

This year, Hollywood Park will again be host track for the Breeders’ Cup, race day being Nov. 21. Future Breeders’ Cup sites will be determined later this year, and there is some sentiment for holding the 1988 races somewhere other than in New York or California.

Both Churchill Downs and Keeneland in Kentucky are interested. Bill Greely, president of Keeneland, said: “We’ve never had more than 28,000 people at our track for the races, but we’d still consider the Breeders’ Cup and it would be good for racing to move the races around.”