2001 Cal-bred News Archives

HIGHLIGHTS
OF THE CTBA BOARD OF DIRECTORS MEETING
HARRIS FARMS, SEPT. 21, 2001

1. We're working together for the benefit of all! Wes Fitzpatrick highlighted the board's accomplishments since 1996:
a. Legislation: First Ken Maddy developed an ongoing program to show to the state legislature the ongoing value of our industry to the state's economy, and then Bob Fox worked to bring legislators to the farms to see for themselves. As a result of these and other concerted efforts on the part of industry leaders, in 1997 we achieved a successful modification of the incentive awards program, especially as it affects owner awards, and 1998 saw the passage of legislation that required the racing associations to allocate at least 10% of their total stakes dollars to Cal-bred stakes. Both of these achievements have been beneficial in increasing the demand for quality Cal-breds. In addition, we were the recipients of almost $40 million in license fee relief, and this year we won sales tax relief on breeding stock, and the legalization of account wagering (after a gubernatorial veto last year).
b. Magazine: In 1996, the magazine was delivered late, sometimes after ads were no longer useful. It was heavily focused on racing and had limited coverage of breeding and husbandry. Now, publication and delivery are timely, articles are relevant to the readership, and the magazine receives awards and recognition for its quality.
c. Education: Today, our seminar program reaches across the state with meaningful, substantive topics.
d. Website: In 1996, we had no website. Now we have a topical, timely, navigable site, which because of the nature of the technology is a work in progress. It is our plan to continue to develop its excellence.
e. Del Mar Sale: In 1995, the average was just over $10,000. In 2001, the sale reached a record average of nearly $44,000. Last year, we began the practice of having a Del Mar Sale review and planning meeting, inviting consignors and agents to participate in giving direction to the sale. We plan to make this meeting an annual one, to continue to involve our members and consignors in helping us improve the sale.
f. Accounts Receivable: Several years ago we experienced serious collection problems from some sale buyers. The past two years we have collected 100% of the sales proceeds. This year, as the result of a businesslike credit checking procedure, we have already collected 85% of the proceeds, and anticipate 100% collection shortly.
g. Cal Cup and Gold Rush: These special days for Cal-Breds provide purses in excess of $1.2 million for each day, or a total of nearly $2.5 million, all for Cal-Breds.
h. Incentives: With the assistance of the TOC, we have implemented a 30% bonus for horses that win in open company, and have arranged for twice yearly payment of incentive awards to help breeders with cash flow.
i. Staff: We have improved our staff and our general and financial management with better job definitions and sound hiring.
j. The Future: A lot has been accomplished; a lot more remains to be done. We are raising the bar.

2. By-Law Change: Not Quite. At our last meeting it had been our understanding that we had unanimous agreement to amend the by-laws, adding a requirement that anyone running for the board have been a member in good standing of the association for the 12 prior consecutive months. It was our understanding that absent directors would sign the amendment as a formality. It later became clear that two directors did not agree to the change, and the by-laws have therefore not been amended. There was apparently concern that such an amendment could cause the board to become too insular.

3. Annual Meeting: Go North! There was unanimous agreement that the annual meeting should be held in Northern California this year. Doug Burge will explore venues.

4. Treasurer's Report: John Barr reported that the Del Mar Sale was profitable, that foal registrations were over budget, and that expense management was excellent.

5. Del Mar Sale Issues: Scoop Vessels expressed the need for a permanent home for the Del Mar Sale, and to accomplish this goal, we'll need political help. He also recognized the need to involve agents and others in planning, and to tackle the problems of the Tuesday attendance dropoff, and breeders who nominate large numbers of nice yearlings.

6. Racing: Trying to Get It Right. John Barr reported that, at the forthcoming third annual racing secretaries' meeting on Nov. 2, the participants will, once again, analyze the horses entered in all Cal-bred stakes races in 2001, with an eye towards refining, changing, adding, or deleting races in 2002 in an effort to better serve the participants as well as the racing associations. It was observed that the increase in the bottom level claiming price for Cal-bred maidens to $40,000, had no adverse impact and only served to further benefit those owner/breeders with prices that are commensurate with the times. With this experience, the racing secretaries will be asked once again to increase the existing claiming prices at all levels as they have remained constant for 25+ years in spite of increases in costs, purses, etc.
The NTRA's Great State Challenge Program, which kicks off in 2002, to be held annually on the day before the Breeders' Cup at the host track for that year, will consist of five races, each worth a gross purse of $250,000, with a maximum of 12 horses in each race. One horse from each participating state will compete, with eight states, including California, being assured of a spot in each race. The CTBA will develop a selection process to determine which horses will be nominated to each race for which they are eligible. Horses do not have to be nominated to the Breeders Cup to be eligible for the series but must be nominated in order to participate in that portion of the gross purse contributed by Breeders Cup. Breeders Cup and the state breeders' association will contribute $50,000 each, as part of the gross purse distribution to participants, but with only one horse per race, the state breeders' fund would only be required to post a sum commensurate with how that particu! lar horse finished in the race.

The California Sire Stakes has not accomplished what had been hoped for when it was inaugurated some years ago, and the Racing Committee recommended to the Board that it be cancelled. The Board approved the recommendation with the caveat that the races for 2-yr-olds in 2001 and 3-yr-olds in 2002 be conducted as scheduled and for which funds are available. Stallion owners are to be advised that the portion of stallion registration fees attributable to this series in the past will continue to be set aside for Cal-bred race purse supplements to be determined at a later date.

The Sunshine Cup, which features races in Florida and California, is still being discussed with Florida and Magna Entertainment connections, with the source of funding being the major issue.

7. Cal Cup: Our Day in the Sun: Infield sales are down compared to last year-so gather up your friends and neighbors and buy a table! This is a great way to introduce people to racing-there is no prettier or more exciting racing venue. TVG has been secured as a sponsor, and will be broadcasting daily for ten days leading up to the Breeders Cup. TVG will mention Cal Cup, which is free coverage for us. Doug Burge will be interviewed about Cal Cup on a pre-Breeders Cup show. TVG will do interviews at the Cal Cup, and will televise the races. The CTBA Foundation is hoping to display some of the Seabiscuit memorabilia, if they can address insurance concerns. There will be a draw breakfast at Clockers' Corner the preceding Wednesday. We're expecting full fields, there's a guaranteed pick six of $1 million-so come on out! See Southern California at its best!

8. Website: Information Alerts: The home page needs to highlight all new items, not just racing news, on the home page, so a reader can determine what is new without reviewing every page to look for updates. This will be fixed.

9. Magazine: The On-Time 'Zine: The October issue is expected out October 1.

10. Education: On the Roll Again: The N. California Stallion Tour, organized by Bill Nichols, will be held on October 13. The Riverside-San Diego Tour will occur November 17. The Central Coast Tour takes place on December 8. The Mating Theories Seminar at Harris Farms on September 21-22 is sold out.

11. Finding a Little Extra: Keith Card addressed the board about ways in which we can even better manage expenses and find other sources of income. Examples were saving postage by not delivering the directors' magazines by first class and increasing the difference in registration fees paid by nonmembers vs. members. Keith invited other members to contribute ideas. Another fund raising idea was the sale of items with the CTBA logo and/or racing- and horse-related concepts.

12. Membership: Making It More Attractive: It was suggested that the CTBA could do more to obtain group pricing for our members.