THE CASE FOR A CALI CUP
By Ray Paulick
The Breeders’ Cup, like many mature businesses in faltering industries, has hit a flat spot, and the people who run it are faced with a difficult question: whether to continue on the same course and expect little to no growth, or to make bold, transformative decisions designed to enhance its standing as a major sporting event, improve market share in the pari-mutuel world, and increase its all-important revenue stream.
Whether to play offense or defense is usually a pretty easy question to answer. From playgrounds to boardrooms, everyone wants the ball. So, offense it is…until you show your team the playbook. That’s when people start hedging, saying a defensive strategy isn’t such a bad idea after all.
And so it was at the Breeders’ Cup, which embarked on a strategic planning process some 18 months ago, hired an international consultant experienced in sports marketing, and presented recommendations to the board of directors in December 2009. Foremost among those recommendations, though only one part of a multi-dimensional strategic plan, was to settle on a permanent location for the Breeders’ Cup—permanent meaning the next five to 10 years.
The board approved the core components of the strategic plan in December, discussed it at length in March with the larger board of members and trustees, and is expected to take a final vote at an April board meeting.
It’s not as if the Breeders’ Cup has been a failure since its inaugural running in 1984. In fact, it’s been one of the few shining lights in American racing over the last half century. But looking ahead, as the American Thoroughbred industry continues to retract in betting turnover, racing dates and foal crops, the Breeders’ Cup, if it continues on a similar path, faces declines in nominations and little to no growth in revenue on the championship event itself.
That’s why William Field, the consultant who has worked closely with Strategic Planning Committee chairman Satish Sanan and Breeders’ Cup president Greg Avioli, believes a permanent site will help transform the event and lead to a spike in annual revenue. Further, Field is convinced Santa Anita Park in Southern California is the best candidate to be that site, with the non-profit Oak Tree Racing Association acting as host.
The recommendation, not surprisingly, has been met with criticism, from several fronts. Easterners feel they are at a distinct disadvantage when shipping horses to California. Horseplayers are focused on their dislike of the Pro-Ride synthetic track at Santa Anita (which has produced two consecutive injury-free renewals in 2008-09). Many Kentucky breeders want to be able to drive to Churchill Downs to attend the event, especially when it is scheduled right on top of the breeding stock sales at Fasig-Tipton and Keeneland.
I asked Field, who consulted with English soccer’s Premier League during a phenomenal growth period, how a group of Kentucky breeders could realistically be convinced that it is in their best interest to approve a plan to relocate the Breeders’ Cup 2,000 miles away. They might agree in principle that a dramatic and bold step is needed to infuse the Breeders’ Cup with additional revenue, but what would convince them to put the interests of the organization ahead of their own self-interest?
“Make no mistake,” Field replied by email, “if all the right elements of a deal can be put in place, Santa Anita will be the best place for Breeders’ Cup to maximize its impact. With the sport facing such difficult times, the success that Breeders’ Cup can have there will make a real difference–not least to the benefit of those Kentucky-based breeders you refer to. So, I’m not sure I agree with the implication in your question that having Santa Anita as the long-term location won’t actually be in the interests of those breeders.”