Calbred News

HIGHLIGHTS OF THE
CTBA BOARD OF DIRECTORS' MEETING
AUGUST 15, 2001
DEL MAR, CALIFORNIA

This list of highlights from the CTBA board meeting is published to give members a brief look at the topics and issues discussed. These are not the official minutes of the Board meeting. Information here has not necessarily been voted upon, and does not constitute a formal statement of direction or opinion.

1. Great Del Mar Sale! The CTBA refined its focus on high quality pedigrees and conformation for its 2001 edition of the famous Del Mar Select Sale, and consignors were rewarded with a $52,918 average on Monday night, August 13, and a $35,418 average on Tuesday (still higher than the year 2000 average), with an overall average of $43,663-the highest ever in the 50-year-plus history of the sale. The median price of $31,500 was also a record, as was the gross sales number for the 104 head sold--$4,541,000. Only 33 of 137 head failed to reach their reserve. Apparently a number of those individuals selling less well had problems on their x-rays, and the board stressed the need to improve education on this topic among consignors.

The Board wants to thank the CTBA staff and all the consignors and agents for making this sale a success. Our Cal-Bred product was very well received-clearly buyers were looking for Cal-Breds, and the sale should improve as our breeding programs continue to accelerate. The Sales Committee will review all aspects of the sale, including the inspection process, sale format, and yearling parade, etc., and plans on meeting with consignors to discuss future ways of fine tuning the vendue. Overall we are very pleased with the results of the sale.

2. By-Laws Amended. The Board signed a resolution to amend the by-laws, requiring that anyone running for office be a CTBA member in good standing for the previous 12 consecutive months.

3. Legislation to Help Our Industry! The governor very recently signed two pieces of legislation that should impact favorably on horsemen in the state. The first does away with the state portion of the sales and use tax on farm equipment (e.g., tractors, irrigation pipe, and diesel for farm use and transportation to market of farm commodities) and, most usefully, on breeding stock. Now, instead of paying state sales/use tax on broodmares and stallions brought into the state or purchased here at auction, buyers will only be required any local taxes that may apply. (As an example, savings would be approximately $500 on a $10,000 purchase.) The CTBA is hopeful that this new bill may be in effect in time for the fall mixed sales at Barretts and Keeneland. The CTBA worked with legislators on the terms of this bill and actually drafted the language defining breeding stock. To read the text of the press release: http://www.ctba.net/legislation/aug701.htm

The second piece of legislation should have an even greater impact. This is the account wagering bill, legalizing the establishment of betting accounts which can be accessed from home or work. This provision is part of a controversial backside labor bill that was likely assured passage by Democratic support in both houses of the state legislature. The account wagering provisions resulted from lengthy negotiations in which CTBA members and horsemen from other racing organizations participated. Our Sacramento lobbyist, Bob Fox, is to be especially commended for his tireless work on behalf of all horsemen. It is hoped that account wagering will increase handle and, as a result, purses, and at the same time balance any negative results from the labor bill. To read the text of the press release: http://www.ctba.net/01news/calbreds502.htm To read Governor Davis's remarks about the bill: http://www.ctba.net/01news/calbreds505l.htm

4. Budget on Track. The 2001 finances are within budget. Foal registrations and ad revenues are up, and through the first six months of the year, the association's financial statements, compared to budget, show an increase in revenue over expenses. The organization is working to reduce outside service expenses.

5. Racing-Is there sunshine in the cup? The California racing industry has been exploring concepts with Frank Stronach's Magna Entertainment organization on the topic of the Sunshine Cup. It is thought that such a set of valuable races, run both in Florida and California, will increase media attention to the sport and increase regional yearling values. There are many issues to work through before this concept can become reality, including the source of funding for large purses and the impact on existing races. We are working with the Florida Thoroughbred Breeders and Owners Association in hopes of establishing similar sources of funding, an equitable nomination process, and eligibility requirements.

6. Cal Cup. This event is being coordinated with Santa Anita. The giveaway this year will be a sweatshirt with a Cal Cup embroidered logo.

7. Magazine. The California Thoroughbred this year published a special Del Mar handout booklet that proved popular at the sale-all of the copies but one were taken from the displays. The magazine is attempting to make greater use of existing on-line information resources to enhance available data. The always popular personal profiles will be in the future printed in color, and moved further forward in the magazine. The September issue will reprise the Del Mar Sale; the October issue will focus on farm stories and the legislative successes; the November issue will review the Harris Farms Seminar.

8. Education. A seminar is being planned for the night before the AES yearling sale at Pleasanton. The topic is Sales Prep. Duane Griffith from Applebite Farms will speak on the care, feeding, and exercise of sales yearlings. Board Member Leigh Ann Howard will supervise a hands-on demonstration of techniques of showing a yearling.

The Harris Farms Seminar (September 21 and 22), "What you really need to know about pedigrees and other mating theories," is proving very popular, and anyone interested in attending should book a space as soon as possible.

9. Membership. The best approach to attracting new members appears to be a highly personal one. There likely should be a clear cost distinction between Associate and Regular memberships, as Regular members must own breeding stock and have voting privileges, whereas Associates do not have to own breeding stock and cannot vote.

10. Foundation. The CTBA Foundation has changed its name to "California Thoroughbred Foundation" to enhance its posture for fundraising. The first student has been selected to receive the Louis R. Rowan Fellowship in October.

11. Do we want a credit reporting system? Many members have felt the need for a source of information on new customers. Several board members are concerned about the chronically bad credit risks who move horses from farm to farm, never paying and repeatedly taking advantage of trusting farm owners. While many on the board share concerns about liability and complications should the CTBA develop a credit bureau, the board has asked Doug Burge to look into providing members with special rates with an existing credit checking service. The Board suggests that farm owners being approached by a new owner at the very least place a call to a few other farm owners and ask about the new customer's bill paying history. It was also suggested that we look at the California lien laws to see if they can be improved.

12. Race to Sport Awards for Youth. It was thought that the CTBA should sponsor a cup and a small monetary prize for youth who show ex-race horses. This idea will be looked into.

13. CTBA Website: Newer, Faster, Better. A new format has been implemented. It provides easy access to a much wider range of information, and new information is made available faster. All should take a look at: www.ctba.net We are interested in your reactions and feedback.