Insurance Policy Covers Bill for the Triple Crown Bonus

Still without a sponsor, Churchill Downs, Pimlico and the New York Racing Assn. will dig into their own coffers to pay the inaugural $1 million Triple Crown points-bonus.

The bonus goes to the thoroughbred who finishes best overall in the Kentucky Derby, the Preakness and Belmont Stakes. It was instituted to encourage owners and trainers to race their top 3-year-olds in all three legs of the Crown.

They had hoped to sign a corporate sponsor to foot the bill, but they were unable to find one in time for this year’s marketing campaign.

“The reason we weren’t successful this year wasn’t because there was no interest,” NYRA president Gerald McKeon said. “It was probably because our criteria for a sponsor is stiff and because the financial commitment we’re asking for ($4 to $5 million) also is stiff.”

McKeon said the group was forced to turn down an offer from a tobacco company because it wants a sponsor which does television advertising.

Kodak then turned down an offer from the sponsors because previous commitments to the Pan American and Olympic Games had stretched its marketing staff too thin, McKeon said.

NYRA will pay half of the $1 million bonus, McKeon said, while Churchill Downs will contribute $200,000 and Pimlico $300,000.

“The reason for that kind of split is that we benefit most from the bonus since it focuses interest on the last race (the Belmont),” McKeon said. “Churchill Downs benefits the least because it is the first race and attracts natural interest. Pimlico benefits the second most because it creates more interest in the second race, which some attacked as meaningless a couple years ago.”

The lack of a corporate sponsor will not send the tracks into bankruptcy should a horse win the Triple Crown and the new $5 million earnings guarantee that accompanies such a coup.

About six months ago, the three tracks bought an insurance policy that would cover the amount of money needed to increase the total won by the champion in first-prize purses and the $1 million points-bonus to $5 million.