TWO EXAMPLES OF HOW TO BOOST HORSE RACING’S POPULARITY

Two recent epic events from the sports world provide instructive examples for enhancing the appeal of horse racing.

The United States’ 2014 World Cup soccer matches against Portugal and Belgium drew U. S. television audiences of 24.7 and 21.5 million, respectively, and Nielsen figures do not include viewers in public places.

A major reason why soccer is gaining strength in the United States as a spectator sport is the changing demographics of the country; many of the 40 million foreign-born residents hail from nations in which soccer is the dominant spectator sport.  Racetracks and auction companies have the same kind of ever-expanding opportunity to craft marketing initiatives specifically for immigrants who come from nations in which horse racing is popular, primarily in parts of Asia and Latin America.

Another example pertains to the value of a megastar. When the National Basketball Association’s LeBron James announced that he would leave the Miami Heat to return to the Cleveland Cavaliers, the electronic media and social media exploded with activity; James’ essay on SI.com was the most viewed post in the website’s history and the Miami Heat lost 300,000 Twitter followers.

Similarly, due to California Chrome and his colorful connections, and intense promotion by NBC-TV, horse racing in 2014 received a lot more attention than is normal. The Belmont telecast averaged 20.6 million viewers, which handily topped the number of people who watched the primetime final games of the 2013 World Series (19.2 million) and the 2014 NBA championship (17.9 million).

While horse racing cannot manufacture a charismatic animal, it can make the most of the fortuitous break when it gets one.  Monmouth Park and NBC, for example, skillfully leveraged the buzz surrounding the filly Untappable’s entry in the July 27 William Hill Haskell Invitational.  A race with an equine star can be capitalized on and turned into an event.

Copyright © 2014 Blood-Horse Publications.  Used with permission.

WAS THE 1921 TRAVERS FIXED?

Arnold Rothstein–a New York gambler, bookmaker, and racehorse owner–who carried the nicknames “The Brain” and “The Big Bankroll,” was never convicted of a single crime, yet his name lives in sports infamy.  He was reputed to be the mastermind behind the Black-Sox scandal in the 1919 World Series and also may have orchestrated a conspiracy that successfully predetermined the outcome of the 1921 Travers Stakes.

Eight players from the Chicago White Sox were alleged to have thrown the 1919 World Series against the Cincinnati Reds.  Though the eight players were banned for life from Major League Baseball, they were acquitted of criminal charges.

In 1921, Harry Payne Whitney’s filly Prudery was such an overwhelming favorite for the Travers at Saratoga Race Course that it looked as if no other owner would take her on, and that the race would be declared a walkover.  Rothstein, seizing an opportunity, ostensibly to get second-place money, entered his colt Sporting Blood.

On the morning of the Travers, trainer Sam Hildreth entered Harry Sinclair’s formidable colt Grey Lag, as race-day entries were permitted in those days.  (Sinclair was later involved in the Teapot Dome scandal and served a brief prison sentence for jury tampering.)

Bookmakers made Grey Lag the heavy favorite, with Prudery the next choice, and Sporting Blood last at odds of about 3-1.  Rothstein reportedly bet $150,000 on his colt.

Shortly before the Travers was run, Hildreth inexplicably scratched Grey Lag, leaving just two entries.  Sporting Blood won the race by collaring the heavily favored filly Prudery in the stretch, and Rothstein pocketed his considerable wagering earnings plus the winning purse.  The putative cause for Prudery’s loss was that she was off her feed.

Questions still linger and will never be answered:  What did Rothstein know about Prudery’s not eating well prior to the race?  Was Hildreth part of a fix or an innocent party?  Why did Hildreth enter Grey Lag and then abruptly scratch him the same day, with no explanation?

Rothstein, of course, claimed no involvement in both the Black Sox-scandal and the suspicious Travers outcome.

On November 6, 1928, Rothstein was assassinated in New York City at age 46, and no one was ever convicted of his murder.  Hildreth and Grey Lag are enshrined in the National Museum of Racing & Hall of Fame.

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Adding intrigue to the 1921 Travers mystery is that Sam Hildreth is likely to have harbored a grudge against the Whitneys, as he was once fired by William Collins Whitney, whose son Harry Payne Whitney owned Prudery.  Could a vengeful Hildreth have entered Grey Lag in the Travers to keep the younger Whitney from winning the race, and then withdrawn the colt after having second thoughts or being overruled by Harry Sinclair?

Following is an excerpt from Hildreth’s biography by the National Museum of Racing & Hall of Fame:

“Samuel Clay Hildreth, the youngest of Vincent and Mary Hildreth’s 10 children, enjoyed success as a trainer in the Midwest for owners Elias J. ‘Lucky’ Baldwin and Ed Corrigan before moving to New York in 1898 to work for William Collins Whitney.  Hildreth’s path to the top of the sport became an interesting journey.

Hildreth was an immediate sensation training for Whitney and others in New York.  His first major victory was in the 1899 Belmont Stakes with Jean Bereaud, who was owned by Sydney Paget.  Hildreth’s association with Whitney, however, was brief, as was his initial stay in New York.  In the spring of 1900, Hildreth got into a wild brawl with fellow trainer John E. Madden in the paddock at Morris Park, which led to an embarrassed Whitney dismissing Hildreth as his trainer and basically blackballing him in New York.

Fearing risk of Whitney’s disfavor, most prominent owners stayed away from hiring Hildreth for several years.  Instead of success on the big stage in New York, Hildreth was forced to train in places such as Chicago and New Orleans and slowly build his business.  When Whitney died in 1904, Hildreth returned to the New York stage and established himself as one of the sport’s top trainers.”

A coincidence pertaining to the 1921 Travers episode is that Grey Lag was bred by John E. Madden.

Copyright © 2014 Horse Racing Business

A COUNTERINTUITIVE APPROACH TO EMPLOYEE HIRING AND RETENTION

Businesses in the various segments of the horse-racing industry often struggle with employee turnover, and it can be expensive and time consuming.  Research by the U. S. Department of Labor found that the costs to an employer of a wrong hiring decision can reach up to 30% of an employee’s annual earnings.  Companies routinely screen prospective employees by reading resumes, conducting interviews, and checking backgrounds and references, but these procedures have their limitations and a certain number of bad hiring choices are inevitably made.

Online retailers Zappos and Amazon have implemented an unusual incentive-laden technique for identifying and amicably parting ways with employees who should not have been hired or who no longer like their jobs.

Zappos pioneered a program known as “The Offer” in which new employees are tendered a monetary inducement to quit.  After an individual has been on the job for about a week, he or she can choose to be paid for time worked plus $4,000.  About 97% of new hires refuse the offer.

When Amazon acquired Zappos in 2009, it followed suit and installed “Pay to Quit” for employees in its fulfillment centers in an effort to reduce turnover.  Amazon’s proposal to employees to resign is made once a year.  During the first year of a person’s employment, the incentive is $2,000 and then it escalates by $1,000 for every subsequent year worked until it is capped at $5,000.  Amazon tells its employees, “Please don’t accept this offer.”

The unorthodox methodology used by Zappos and Amazon is a rare new approach to the age-old employer problem of sorting out unqualified, insufficiently motivated, or disgruntled employees, who contribute to an unproductive or even poisonous work environment.   The pay-to-quit technique is worth experimenting with in those job categories in horse-racing in which turnover and employee satisfaction have been perennial problems.

Copyright © 2014 Blood-Horse Publications.  Used with permission.